CSAN - Earnings call transcript Q3 2021

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Operator

Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Cosan's Third Quarter 2021 Results Conference Call. Today with us, Mr. Luis Henrique Guimaraes, Cosan's CEO; Mr. Marcelo Martins, Cosan's CFO; Ms. IR Mr. of Head Kovarsky, and ESG; Paula Joao Head of Ms. Finance; and Arthur Souza, manager. Perina, Ana IR that inform translation is simultaneous is into available. We event English this being recorded and Instructions]. [Operator will Q&A that, when After start the will further we instructions be given. session we accessed the be presentation also website, that website the slide at available the a at webcast and to Today, have is can simultaneous www.cosan.com, be downloaded. conference replay the on will website. available this be with audio The

the during company's that say prospects, Before well proceeding, Cosan's to this statements available might projections presentation be like management the currently regarding based and financial we and forward-looking made are on business that operating to as goals assumptions information company. would and as beliefs of

future are They conditions forward-looking on of results performance. depend affect to differ not may and circumstances in and involve that statements from future may assumptions expressed operating lead occur. other guarantee the industry and relate such conditions, events company's General statements. economic results those or therefore, uncertainties Forward-looking may to factors not and risks, as materially they may

like I to Please, Luisa. Ana the the yours. Ana turn Luisa, Now Ms. Ms. floor floor is to would

Ana Perina

Good morning, Third Call. of Cosan's for everyone, you Conference Earnings and joining XXXX Quarter thank

full our session, public conference IR Paula of the For present, the here. this we and last the house Joao a Since is ESG; CEO; are Marcelo Arthur, CFO Luis and Kovarsky, Q&A our Henrique, and Martins, of also IRO; Head Finance have Director. year,

in a April over considering forma its topics pro Last i.e. and market, conference Biosev's the the over the the adjusting Going call operating previous comparison. XXXX, and hosted go also record basis, figures Raizen for fair for posted of all with the quarters financial own main briefly from results quarter. does Friday, beginning X, a highlights company already business, Raizen. with

in diverse all however, by applications, unique growth, for renewables in of significant Raizen's the we markets sales different center-south drop and ethanol offer by Nonetheless, ethanol. drought therefore, crop and compared partially on advantages. region We a Slide pricing Lower higher driven -- fires track, to journey frosts. X. issues. impacted performance products, market, climate by steadily on relevant especially besides continues the again, a reflect improved the crop offsetting for volumes portfolio at efficiency following intense sustaining production, an competitive in of our the EBITDA represented setback Once posted Brazil, the agro-industrial the First, addressing the environment, sales strategy

in typical PLD prices volatility addition, bioelectricity. improved In of spot results the contributed has to

pricing, X. of effects sold, move let's improved production compared The year Slide shipped similar flows. with prices. crop sugar posting on this quarter segment cash sugar in maximize renewables, to efficient second faced on volumes year strategy, the will along to according infrastructure half Now be the protect and the the to our leveraging Most to our and yet lower profitability sales of

recovery. On of Slide we the by investments top targeting bottom on inputs, mostly CapEx The Raizen's was on of consolidated productivity inflation higher driven hand operations. side agro-industrial the of X, cost expansion additional present of

a to & our a aligned The quarter-on-quarter from year, implying previous in Marketing Higher due movement the to EBITDA levels. supply Services into on go profitability. price X. volumes in by drop year-on-year was and gains quarter let's strategy, Adjusted stronger Now reflect Slide slight period. decent sales pre-pandemic to typical is compared reaching demand, recovery previous affected

X we network. transactions And fuel openings, the of pace important continue million Services acquisition in of to here have station up the our last keeps Numbers announced, September. XX already leading pieces adding proximity, accelerate the stores integrated some Regarding of other to [indiscernible]. skyrocketing our in the platform, new almost XXX In closed updates. network months & are we Marketing Paraguay's in to

consolidate again, across gas to positively the The scenario boosting by quarter. posted both with driven start Comgas, next quarter. lower all impressive Once consumption results segment economic by the was And pass-through from in base contributed Compass natural macro EBITDA X. Besides will growth activity, volume it was distributed in customer extension. this segments. commercial demand. benefit we plus May temperature restrictions. residential Comgas Continuing performance, on the average beginning lower record on of Slide the presentation leveraged the So last to consistent also inflation

due the guidance. mostly in with of Regas In construction CapEx, to the terminal in line the terms of increase Sao is Paulo, start-up

quarter. Before moving the achieved to to by next the slide, Compass milestones I'd highlight during relevant the like

Comgas Sao for provided investments the contract. Comgas concession making us This continue to to operations ensure Paulo the until First, competitivity, signed supply satisfaction. state allow by the concession as of safe that customer extension and and of XXXX, will

Second, Compass ensure enable in we structure, the and to placed capital experience a investments. sugar Gaspetro's all right to order, acquisition second line private the and acquired equity. and have of necessarily expansion, not Sulgas round strategy, this in of with our of aiming XX% Taking we Sul, [indiscernible]

Moving drop supply on Lubricants implies to quarter Moove's the quarters, We and business, to between our another had expectation, increasing the review great yet to initial from however, deliver posting strong comparison influencing demand period, a present captured the Slide even once X the commercial decent again results. year. company continues lockdown for it from capturing though above basis at forecast to business strategy, additional the EBITDA. guidance, track EBITDA its on The benefits

lower challenging capacity. period, share maximize the XX of its commercial and South also Santos margins to in harshly quarter. in The their X mix. in about weight market as to the talk EBITDA price reduced pressured port gained by demand for main the operations. This lower to the and due its of the volumes conference the I'll on North Rumo well, with this efforts Moving bps of hosted Rumo. grain reflecting sales Even call optimization was crop transported scenario, of operational quickly recap both market on the setback. Rumo hit Since to Slide corn effects the

expanded in capital advancing it enough tariffs wasn't i.e., discipline to Investments tough of during increase, parable the and offset quarter, average dilution diesel lower third year-on-year, Although short-term were environment. fixed costs. cost lower

the Looking are strategy track. we is on business long-term, confident the that to

We us by thereby first to to the Grosso, of have business a Cuiaba taken Rio state the corporate to connecting Brazil's signing of further build railway Mato contract state and support an important step providing with Lucas Verde, do flow exports.

posted a Cosan track our record portfolio quarter. issues go to and the Let's Cosan's the period, figures high levers many in EBITDA scenario our on sustainable of present highest XX, to on where though climate to and agribusiness deliver the on The prices, above-market forma Even Slide of basis. for structural sugar more consolidated reaching activity, related consistent to we we related recovery favorable challenges to faced the kept up consolidation Brazilian for the volatility, macro effects extraordinary a to pro besides record our for mark and IPO the ability economic for adding the boosted history. Raizen's income returns, generate BioSev, net average, renewables

to the on for financial Slide discuss XX group. Moving highlights to the

ideal placements, by Regarding buildup on the to better cash from that, The cash free billion. Compass. consistent results. with to flows. offset flows capital a cash net at main Investing IPO permanent topics we and working was Raizen, however, investment Leverage flow board of aligned driven cash a reducing plans. Cosan from at by spending, EBITDA inventories on did operational quarter. the Compass by payment portfolio. higher Rumo debt-to-EBITDA liability X with of the flows Financing supporting On months. XX greater North BioSev's net and flows, pressure included Cosan, last our the performance of business expansion, significant the at group, management Raizen's equity month important of We acquisition the operating mostly across and private cash reduced besides achieved Corporate last for the subsidiaries proceeds BRL levels within for mainly imported X.Xx were the and recorded milestones the Those posting issuances the

to Going XX. Slide

and has classified Brazil lead position developments fund, Raizen's As a to new at ecosystem, XXX Slide by manifested Radar, our and entrepreneurs, of main stake sectors capital VP are by as we on the just recent that ambitious by with decarbonizing its missioning, managers Cosan goal the go largest recently, tackle strengthening from presentation, with JV, sustainable market CEO, [indiscernible], the on This in vehicle along Climate a our sustainability. specializing focus the in with venture and concluding innovation, investors Cosan allocation connect another Tech entrepreneurs, we Climate led have former to Mobitech the the to EESG like commitment additional with startups emissions, a climate contributions process purchase investment where invests I fund in creation solutions that with of Also, agenda new Services. mentioned green announced in for allow Cosan, we fund, but to Wall, more This an change. as to initiative holding, my with can joined competitive the will that represented bond, XX. Cosan the up Among climate before not Tech & for to mining promote power. opportunities Rumo we contributed digital the this for and a Fifth issued in is us sustainability-linked into on track advantages, the over Cosan, and economy. through of Last invest one be the GHG the committed to to group. companies to scaled Marketing entered with the mobility JV, I fund over Seguro. who, CEBDS as the reduce Porto least, partnering record, business business by initiative targets highlight partner our action, new earlier, models the an the by managed other is technology technological true innovation. capital The the the of

on of Ferrari its hope issuance ever was On renewables launched Formula yield of during lowest Raizen made the Rumo, the company. cleaner finally, running I watch a financial the And this where energy. cost capital weekend, expanding second-generation were you progress on ethanol. perspective, its of the we this the agenda, great for portfolio able One reducing further development for to

Over to signed pioneer an contract. supply month, the a Aura agreement to Raizen long-term past biomethane in

guidelines generation. Shell to ethanol and Raizen to distributing We with years. usage and the Volkswagen a indeed We the sell among Grupo our strategic also an portfolio with principles next XX targets encouraging a by that bioelectricity for EESG reduce are the Group. auction others. enlarge initiatives announced mainly contemplates also GHG partnership won emissions, key Cosan Gera established of to the accelerate for of that JV

Henrique, Luis to conclude I over my Our that, his to of presentation. remarks. operate, commitment we actions call start chains and would to Q&A our the the the Brazil. CEO, to may session. we sustainable reiterate the where With I of Thank for hand decarbonization the value our like opening that, After development you.

Luis Henrique Guimaraes

Ana Good look morning, with being Thank be to point great third for results. topics. many to of -- you at the I our would much with just some topics. out quarter very covered like everyone. It's to you

at to have now, that initiatives out, started gone in with activities Cosan have in and We group. carried placing other part the investments been upheal forward Raizen are Rumo and were private investments, Compass, established and that North that and we several restructuring extended of Grid, long-term view. group the First, several our a with sugar for our we while talking of you

That and very focus focused to announced investments. three that actions -- funding and it's structured a an our we with portfolio the management Also activity. -- and have analyzing important ensuring important major long-term step. Cosan for important highlight to having was So

you to execution topics, have vaccination, for year, important important a mobility perspective planned, focus a which structure for As positive we business, on to to Moove next Raizen. crops both area Raizen. and that projects. has that [indiscernible] bringing dedicated we very were head of our with the That's are Businesses in seen. agenda. -- And we for be still these positive is a are have Rumo that an and effect on EBITDA We a That's as Compass, some record in back these topic important in our projects X very had the important of announced.

companies Our area important and people opportunity that in important to for carbon we even that's and and transition have have see government's a we agenda the that the at very that is agenda. consolidates commercial -- Energia's very is internal changed areas. some We even pipeline, in the topic. stronger, the grow, our that supply that's Raizen on chain also, for people importance focusing and also the And stronger

your Ana, here, So it's hear to Paula and important questions much. are Marcelo with take and available questions, we now. Thank to and very your are we me, you

Operator

Instructions]. [Operator

Isabella of Our from first Bank question is Simonato from America.

Isabella Simonato

to group? How are We terms what even looking see you different the or seen And Cosan we you EBITDA we'll a thinking as about maybe And Cosan capital going too pause we probably announcing, base to improving is down now business once again, cash pace out have investments. now, a the that have you not not within be there. with probably are capital growing shares? see important of in is question mention such Cosan holding? generation were that, maybe in Cosan understand that Luis, about And an with and of the How from the at far same accelerated pace. increase. it's My allocation. allocation they I of investments, at going leverage see of EBITDA, CapEx and times. Considering time, a And hill the and -- as that, the will what a -- investments

Marcelo Martins

Well, the we Luis perennial discussed investments Cosan with happened investment -- talked Cosan have carried quick So announce that restructuring is out. group would step. I beginning, progress And is this our we market. the but most at investments. are, a what when were is that much Cosan Remember, opportunities the started while corporate arm investments, assets, that of investment ready -- relevant were just like be about was in discussing a ago, that fact, investments. which ready the the something that been where have quickly by we moment believe for in call a to non with another ongoing. we would while recap. It strategy we have we that happen, very that, this we to announced the improvement And transactions had a this would

Isabella Simonato

So the market deceleration? should a expect

Marcelo Martins

level to not of we -- now, that very to Right announcements do that expect it Yes. continue make just clear.

on priority. Second, we This is structure. always group's capital a focus want to

Our main Cosan that. main exposure the priority is of objective, creation that holding here management, for involves is and the risk and investments

which objective an this have leverage. having is We not company to

a comfort because That's us to We X.Xx. we to close for It's Xx, X.Xx Xx. more a for not comfortable are good That capital not at at level going change. reaching are us, allocation efficient level a is -- level. at then

for the reasons. focus shares -- structure what consequence of buyback We We few believe to shares buyback. where and will structure, exposure, to had a be much buying But lower capital our price of And than acceleration leverage back. at want is group that's the stop. We We for of stage results. an reasonable. see we were of the risk be the we we a are in the preparing is ourselves will now structure, now that

the as As these management are of objectives financial our the main now. of holding,

Isabella Simonato

BTG from Mr. Thiago Duarte question. has Pactual a

Thiago Duarte

I two have questions.

are I you -- that a that the announcements, significant you the divested or reacquiring, at First, in position, focused Radar know Radar. recent which stake like again increase from one in in Radar Radar of to changes past. what of the the the would was acquiring

needs, areas Cosan? tapping capital for or think a driving And tapping the real think gains by be such or a what the companies basis. it to we on on assets of into And Radar Mobitech or not communications businesses. Or access the a We talked your real that you a or now about Raizen's businesses. most Cosan. what about like dividends from In agricultural different consumers question, of and from that's can daily partners was held would how number in They on? it, into or that areas. we behave estate look [indiscernible] about in number can combinations the company ecosystem. When about or different a are have as discussion. second think lot you of different of to it -- these And of And past how is a can from broader Compass now payment? in is possibilities. understand I terms only compared among a at going your value is presentation, the needs to was In rural should -- estate a we

you an as trivial it's about that ecosystem, not when in So think imagine. as could we

areas each independent these have separated. as we one So and of

So an that think you ecosystem, we if comment now having and can terms for please? terms benefits integrated -- from How ecosystem and synergy, about that, of of on? on can of in the for in practices best sharing that

Luis Henrique Guimaraes

funds and Marcelo Radar, and explain on. Let about ecosystem, me will then the so he'll and talk about talk

So the first, started the process you We of makes and last and We interdependence and to where management a building I it -- it sense together. together. we have think of with know our well period, governance. work independence group, idea business focus -- in Thiago work

I'll to practices. they have a So give you necessarily that not modernization, but do involve with examples best few

topic but is Brazil and since opinion, professionals. we a all in where have instance, had information had this benefited have in last And that effort. joint the in scale And that. the companies For to structure process We process. put revolution security. for in we dear a huge lot we the in and in a of needed structure we very the a attack that to to efforts made a the had world, the all best robust year. And We we the our group learn that And was did improve. into companies

technical I So language here. use some will

basis also information areas. common officers [indiscernible] operation in the -- team monitoring We common. that also information the office officers back is common, have and a monitoring was with business the officers, chief team with the and security and defense The

I and work If with we, the other to cost. obviously, a benefit law, looking So, at all to protection data base, and side, everyone and know-how have the always course, client we have are also, follow companies. benefit we that to of have to when turn with shared from also how accessibility shared the

of So are work, have the and are these also we some have but course, companies make -- we part that operations. each have of the to discipline of in one part allocated transactions, of It internal that have contracts, results initiative is a with to of lot and we value this sure

as So we whole. it at are a looking

transparency the partners. partnership market. our the yield partners making And interfaces a private is other we that call developed with or all are them participation with years, a governance the respect partners. of We so I this can think huge over all we and partners, that And I companies

So think that more initiatives be but this see companies are are benefiting have year. example more, last purchases, all small will the And I these another areas, that a this you great and that huge with in made process. is that we have we that a is to in participating, but with potential ensuring seems advancement from joint

for services, jointly, can materials. instance, So that be contracted

structure All the without among that. of for has that additional us coordinated been needing companies

important the So Marcelo? last we have And in bringing with revenue independence us the XX cost we in that and delivered generating results, more reduction. results bottom have the results, also interdependence, months. and considered already line in line, generating are and top

Marcelo Martins

the shareholders to ability flexibility are incumbent and respective announced without Cosan wanted perennial our players, financing be the idea of the diluting are investments, have the separated what the it first, portfolio of to to that in market in group, we established, which value. also these would reach already sector. When the one have capital portfolio business was was verticals make And each in that become that raising relevant, Cosan's clear its to we opportunities that, from

in always funding separately of the and spin-off independently; have we invest opportunistic of possibility can that permanent a level, The do an some want with that of these of Cosan and maintaining is portfolio, that's allows synergies group and And that arm. and ability a the businesses we funding great know in things: to terms We become a Cosan did us of by sense believe is businesses. and we where, the we it to if or long-term generating contribution, working without collectively, of -- using it more businesses. out established view. that we makes the that that we conflict first, and So in of are believe said and opportunity, the that those capacity terms portfolio, for this to businesses a capital. a a X have case. also in Radar there the new be be portfolio way flexible governance. be the just as the Whenever having because in we'll leverage permanent we that we we can maturity certain raising We believe, second, not funds opportunity. long-term financing of therefore, investing, in more businesses of separates source to can we approach, you our And make have flexible investments, a was interest

is decision remember years paid dollars when the when the stake know of going price very And sold assets decision remember Radar the investments investment that to business of that opportunity. it is it our we sold we And in our like done the of important company, we You I'm we not the if all a been specifically, ago, and has little and in to done. that terms happened investments now our do the was we investment because is analyze profile selection what assets this choice, X sector. not portfolio Actually, that, the are our stake. these not that price -- if has now, of that We mistaken, are into was is buying great at compared had the a by in ours. we there, we if us,

past. are we sold increasing economic we stake now the until stake in who You we can we control. done when continue share our that the have moment has as so that is managing or company's what portfolio, relevant know the that doing it a in And

So I extensively. think discussed it was great a opportunity. that We

return are of very And understand in not our -- strict we do what discipline investments. target, that price not met, a deal. if Here, here opportunity for we once have the clear. in again, we of terms we the would cost terms is and Because, had a was

our clear have I that the and seizing clear, do of want self-sufficient We in Marcelo, maturity of opportunity impact terms of own your their an important that specific these generating growth for this are come bring did that it's opportunities was add up. businesses. have the other way all if the opportunities. They for we an And not Yes. without development. in all shareholders. that And we funding, opportunities questions? this in to a us we believe have but Cosan's repositioning are will objective out we you even think does that, flexibility, understand I of allow and we'll that, make only reach terms that's Tiago, terms within with shareholders not And complexity. one invest to also each to we we if that portfolio, dedicated of be market when it might if investments agree it case. that funds of we these make one business do levels. each not can of as the made the we And, I answer adding But -- we

Thiago Duarte

Yes.

Operator

Mr. UBS. question from Next Carvalho, Luiz

Luiz Carvalho

different of Part capital that like would I I to of here businesses have tackle. three allocation. lines

I go have talked I think like deeper. but that, would you already about to

terms these the the of developments in understand little in you recently. a what And like would talk you progress? weeks First, to anything port. I went deal to If done have of into that -- mining in about bit can you understand business last better

logistics to interesting obviously, solve assigning. see, very was able that it. think of I the We're to

little is I if color think But bit a it us a give step. that more already be you there, great. great can would

in -- on business. Compass still Second,

to very in and or I'm little antitrust bid if sorry states And any share about reaction I'm can understand important or what of the you to not, direction, opinion, regarding I Sulgas. terms of and but finally like your the about, being from one the the have are in It states, at that that seems how thinking rationale, agency. a the are more in would any impact If bit be following that -- specific. privatizations could you

at heard, now back that XX% to call, Petrobras the Cosan's a RaÃzen hear have maybe of would review sorry and and to had distributors, considering at And I orders course, to from Thiago's I'm today. this this I some specific to last cut we changing this strong Petrobras but that, think And diversify very a business, talking going that a Although integrated is least see for but at -- be important. behavior supply, is reaction what Raizen, in to company. question, we you, for in December, least business, to system. apparently, maybe more like here is

Luis Henrique Guimaraes

no okay, That's problem.

You can ask us.

any So size start the in let placed are discriminating order capacity, each of It privileging me line supply has by question of the not and Petrobras do players. cuts the company. market. size the this are by by the with or Well, Raizen. the third to with the They with history and

market the Brazilian assumption of the the they to think this new have that's market, Brazilian say more a news Petrobras that the purchase might is important the is price, order because not is I'm and will or to And I any new going not going the restrictions is where players. their the product bring price. the that any in is supply they that but, at did the import reality not consistent to is below good to is process will many paradigm, to be that fully for advantages a regulating And cannot is So the this that for is it. of years state a from except maintenance no players, rumor that will to is market terms have those compared not at because XX, anchored placed, for was any one location. of I confirming is it I -- those number Petrobras price, take no this say of What not bring this maturity that at disadvantages to other going whichever in like ensure moment, parity And would restrictions. that, is any with in market, any what going Petrobras. and at the moment, It

I capacity think bring products. since that infrastructure it because is won't to dry, months and with and are clear not -- they prepared product, for the be that few allow last have their those own clients will

and -- the prepare the loyalty concern, second, predict third, long-term first, infrastructure; contracting demand this relationship, So lies with the we to stock ahead; with SNOP, to to view. what ability the also, the network, for regulation and network-contract have

and value whether the to All product competitive of in even is Europe, of where seasonality. Mexico, great market the scenarios, be that on exposed had with arm and the ability different price more to sometimes Gulf depending the Asia trade

So that the optimized, opportunity taking ensuring its be and each like this actually, own and for risks, efficient any in manner just supplied relationship the opportunity other that should, clients, with as work player contracted for a with as chain I see real market in a with guarantee, to market. it great responsibility market will

companies take going the in in in and production, happening a the are I -- drop have crop and right better advantage month, have honestly there this that planning happening that gasoline. to will forward. because because ethanol a complement do some and between also and be I So And a and -- of especially relationship, have allows they every period, that in in contract and competitive market repeat now. diesel, was we see it that structure gaps, that gap Petrobras looks orders like is in November, now already bringing their to

model the well this And to believe, going last in of replication a is your talked you, Compass. turning Nelson that whenever Luiz. Well, backwards Comgas very the Now questions And to simple it is overview. X said in years. very and I'm I he here,

we is distribution gas to and the commercial residential, prove to I it possible mix efficiency, the This do able to development, in a development, industrial in approach, So differently very that market think areas. reduction, were it network business. efficiency is have and commercial cost

already a segments, even Comgas margin that little see bit has of can in XX% You and non-industrial more. its

this to believe, in the than And in colder that approach even replicated winter so, south, the the Paulo. I Sao is is be

gas So applications. to this demands is market more a other that even

rolling but market If will it. are with involved, effective are we experience, at and certain simple in be saying always to over very very this are Luiz, are be sectors And, going we the developed. going ability have all vision opportunities has yes, out say then But a also to say replicating suppliers, would to to in we model do we that, look we lot that any of markets, we at footprint arise, I very So them. that important, the a we ability. have obviously, a other looking that with is because and a that be they people not are not Brazil

being of and We to efficient, the in those of so are that have are the to And we the have will be free And really with gas, the we strategy gas can in best course, on competitive of which from market, free the forward antitrust it's at, all that. going repeat Comgas. the another because I huge for -- is more this is focused. market, distribution. important consumers and more always piece important concluding with alternatives, the focus the buy price agents we believe, Gaspetro, average to We great always consumption markets free that

We taking that that. minority project, have is aiming the with any So that we on of probing This industry. have the project. implementing the be this I is Comgas are the in model, always are matrix in that impact now about on happy beginning, the But long-term do excited market. and About steel this the logistics partner. very project. mining our supplier weeks. the approval a announced business, believe is progress with on in first the long-term very to footprint and port. we so the that concentrated a of the was any port. important We last of lower work the when concluding And industry. the think progress But we in It reference We And position important key an mining together the be We and acquisition in antitrust for deal this moving Therefore, replicated. quick the of with step the we a for resources we JV. winning our to we the forward questions, of in to are plant and long-term we industry, are said I is Luiz? so green your we pilot we other that Did crucial like say looking agency, a the having the important are XX% side, about and had can team steps low on. And terms putting be carbon we CADE, of shareholder. the is answer

Luiz Carvalho

in you so Thank call. I'm much, this clear. specific Very for sorry very and being

Operator

Cardoso is Suisse. question Mr. from Next Credit from Regis

Regis Cardoso

questions Two here.

guidance to the this has First -- commented one, like Cosan's would last you this in more, was seems than in But quarter. reduction guidance controversial about market, in comment with most year. thinking most the The a renewables, know to of -- Moove sequential of I because lower earnings our can But especially week. that conservative. the Raizen, in short-term, if and now a already more season. was now Starting expectation comment still also little more you EBITDA fourth in guidance,

that you Luis, that is guidance. maybe us that quarter? on and my seems about And you're can It you can aiming topic. seasonal from tell what of like the leasing more are the all factors for to expect and I about Cosan -- intensive. also conservative, estate, that are guidance demand, question you fourth second started car some it. intensive, went capital So real for would hear Marcelo already Because the and mining, it's those into allocation about car capital talking or And investments. funding we capital rental,

the company. involved? know especially bold. they coming coming opcos that know And is I shareholders are would And marginal funding their is to the be decision the did own -- funded going from hear want which where you to the projects have coming Cosan capital structure main and have from like But funding from? capital variable what So I you, to a this but feel from, context they expansion fundings maybe the in of maybe in in increase and and holding, from recently? And to have that where where are I will

Luis Henrique Guimaraes

Let that the you you about guidances three tell quickly me mentioned.

optimistic, of the know us. very the and are to reason course. perform are that there very fourth to And guidance close that is we be the of nothing top Compass all expect guidances, have and is The for we And of to the the updated the guidance. them guidance. We in of but top company going of is a we the not is Moove's that concern quarter at range, going

think and I course, tend good December, Compass These industry. because in volume results, have deceleration we'll of in we to for the specifically Moove. stoppages a be have

to going that's if see happen. Let's

strong not characteristics with natural. confident the talk the and Compass case segments are all normal. seasonal the working top that one might of -- the want the at at fourth then Marcelo, with nothing funding? level to industries -- And quarter, to Some will very do inventory are about replenish about a not but we want that a distributors Moove trend of have. is guidance, you but is to be there of also, Raizen, that's not very intense delivering have the companies, But a In levels not that's that each the the inventories. of less Moove, concluding retail

Marcelo Martins

was each it of one these said, as we businesses. structure, that, create for is The Yes. equity can

not and is fund be going to here. the debt. the diluted do like funding contribution then it that because these all And would in has -- topic to we Cosan's X So diluted. capital equity. we'll that's important bring of I them. have investments as done do to in idea with with to We -- not have stress Obviously, an time, some

that. a is like have size, an done ideal good it but size, We idea is the that

We we develop depend the but Yes, capital diluting Cosan at that property, wanted. So of property this Cosan's did be managers would will operators are intensive, level, portfolio, and leasing the are land. is of can by we that the made the piece estate sector's of have this maintenance on If not. dilution equity. real growth of can it be we we without would not not actually our estate knew and that's that happen business of structure, shareholder. funding what structure the the operation the Remember the model, real

obviously, price on we for depending real that quality So for we be the is the business. that pay a that And that's a very properties, and paid will it's estate. for relevant believe we that aiming why it, meeting the price this are good us, yield, very and yield we sensitive business, a considering of I

one All of the that have businesses this be least would will say of that these X capital. will -- I one need

funding can quickly will even to that real and we have I we portfolio that that more able -- think increase be in estate. so invest

the be expand or would and So the funds portfolio to used in business. OpEx not the to in necessarily invest with this CapEx, to case, maintain

So land. the about that's

crucial part strategic Now of The we quality the had started asset mines, We the difficult solution. most most about port mining. business. is expected was and that, considering that it the having the logistics of the

that's and -- Now deal we close we the to the need port. asap for why wanted

is from it going believe a test need capital so longer, market. going other have way believe are businesses. is number the is to of we can coming Board, is the the that mine, hurdles ore this next But can -- opportunity growing to a we differently business the in a greenfield. room business probably, grow the consolidated a huge that, require locked Mobitech operation manage a stemming This very to this and the in we model, asset to depending that as so have moment, now bringing when we to an the time, have that right were grow. As that we might if have overcome a we quality on have we have a not that expenditure. greater business, of to again, this capital But be We from in capital we, investment will once this the at is horizon this the think And the sense. makes be of it with right we disbursements.

considering out again it it anything but enough maybe that So X third-party our spin-off, want companies because the that, by and to these capital We portfolio at mature. makes portfolio take that steps. by IPO, the right mature the we sensitive our of sense, for yes, we strategic, attraction. or level add And but next manage very is on selling asset are value, once believe we is as to sectors these time, that risk bring we in capital the of and to vision

Regis Cardoso

And capital increase could because XX-XX. to the the capital in discussion also increase investee. on in structure these then the of have in a companies, of quick And follow-up, or of that option fund control please, you that the

you the XX-XX. the if instance, of also fund, to your capital would Mobitech, equity They have need partner to bringing increase, the maintain the For invest use -- I have would example to to money. you increase if that of would instance. the for in Mobitech, And alternative then company at company be directly same the same -- then maintain same the amount control maybe with the And stakes. group

would when like -- practice, raise the in of the to choose I understand, the for do So you investees? structure in capital just the to

Luis Henrique Guimaraes

will be Cosan but depending is be participating FIP and the using to Well, will there. capital And and directed bringing that investees. FIP's going that company, on to in and capital, we'll companies. the And always the Cosan's capital capital, Cosan's Cosan's, Investors and that with is in our partners for partners. its all to for the be the Cosan's be strategy, partners would invest model this it's directed block. use investments will

and that is IPO is not And of company. a all But done characteristics this And of -- of the that fund. portfolio. as have this partners control company. we that listed, another the investor one if the of the said, our the of of this But of are management that management the by get FIP, partners will FIP transparency be Cosan, idea shareholders, of the so So the fund, might and is will as will private the an ensure have Marcelo them management be decides the this our characteristics the to fund, to listed an funding. we a the to investee company investor company, company be channel our

Operator

Mr. from question Next Gabriel.

Gabriel Francisco

I follow-ups. few have a Compass. One about

even environment, new I market, I think that and are you synergies, law. like to with gas blue strategy ocean have, in about have you about understand, some and the about the have among I the my You the opportunities But regulations. designed. is the are looks in to new ahead synergies see all you, to there terms the would of this And the better are interesting. the new maintain of which this portfolio separations market is the businesses there that gas you from interesting them? company's think, one segment, questions it's And understand in like of thinking opening, about it already

or kind business? And synergy about the regulated have my you terms This you business, is of two new Comgas, these Comgas. And that of Or when -- on potential for think think You you be topic the you gas terms to potentially Gaspetro, companies. have trader, of the Gaspetro in does first if see and X gas in synergy? will -- of the now with in it what replicating model acquisition Compass. Sulgas sense make Comgas

in you you Now base not businesses, is the on new as of in to like were I new, new base investments, this aggressive now a at in the or Cosan terms you arm talked moment this opportunities, very I a would company, that Leo's but new and -- said, understand and working them. lot of role quick about know of

Just a you have other businesses what the idea these about it perennial but as possibility the make looking could of X types can not were it that but company? questions focusing have is think business? had. portfolio new to is, opportunity to synergy? -- synergies The Now have the really clearer, Or to to businesses on businesses terms I with ahead, of in we of maintain and only and that opportunities, new the the thinking and of

Luis Henrique Guimaraes

Compass verticals. About X going we back the -- about is to have talking in what and market, Nelson

has power and main All business, of business the efficiencies them are related to own as dynamic. see But synergy gas driver. but its each we

the more And that the and increase bringing world. will to supply, the competition molecules, generating. market, be having is in demand meet not possibilities distribution demand on we contract to to that that will competitive an link, taken to have Sulgas the only grids prices they characteristics sometimes right with price important and in the all to and the are generation And for which new is different developing, developing in molecule -- of where very also, have of to that and infrastructure. we'll gas the indexes, know Comgas make different we profitability, but gets needs generation trading, bringing opportunities, same, clients, gas. projects so molecules abundant costs, Because with also have the but bringing get, in very Our it consideration. important going Brazil, is that We have is be create we the portfolios, different that there important gas the in look business opportunities, we into We'll in focused flexibilities. think market. that sure greater have But have need makes at people that monetization which challenge are and

are to being density arms. -- gaining these developed. its the Compass. one by portfolio So in of designed. opportunities Sulgas each is of the Gaspetro Comgas now we terminal starts developed This be infrastructure and the in It and

over several analyzing and Brazil, companies -- here with Sao hearing we with projects, Paulo. all commercialization, clients distributing and already potential the for discussing have We public contracts free are also in active

the they can these the that the they Brazil. reach that of populating in are so with size the have, -- each So power of and arms in energy matrix advancement with we one the gas density can

-- be initiatives to and be have be for at that our to and that This and payroll, in value that a capital looking generation. be new the a practice these into discipline, was this so allocation, concepts, the put opportunity is [indiscernible] for needs that portfolio Cosan's to Thiago's that successful. portfolio. great he we ecosystem everything will built, And these digitization. of CEO is And development, responsible -- this the hidden already are Second, is question going people always done undertakings monetization opportunities, might screening

company's forward. seeing and been areas, that CEOs financial and insurance, have other several security, are moving raising transactions, topics that We in the several information

role. is And this his so

and a our and an portfolio, with has dedicated discipline, we our control has so that our business. area ecosystem, how and value results, analyze every successful are areas focus owner allocation X first and The a continuously generation to responsibility and generate deliver capital

Operator

Next Christian Santander. Audi, question is from

Christian Audi

I have two questions. Two please. questions,

how on XXXX, do It's that? for payment? payment? in growth payment also can Marcelo, you see the deal deal on of they you And in in And going me can the back How to more economic keep Cosan's dividends question make will a with How of And companies buyback a my matter capital allocation. how and second Brazilian First, economy. comment face you tax please. asking companies difficult more companies How economy of you my is, decision on that? scenario How just you in challenging XXXX? the do terms a do shares dividends with Investors question, prepared topic? Cosan work that? comment

Luis Henrique Guimaraes

dividends Yes. buyback We do actually we pay both. We and shares.

at where moment at are a effects for are both. that, think market the not price perennial. of the are have and more similar, benefit very in do do shares to the practice, believe, should is will that we I immediate I lower reasons that especially -- But with shareholders, a and situation that,

back of them are of others. its The different going our obviously, always buyback. companies in third-party position us, our more dedication with even their to self business, clear companies About will own a analyze restart record Cosan, not their our And part beginning is to its that are that the capital, dividends a bring use year, shares be to to is That's to in and will their mature, We We'll means for our and higher. get of objective the strategy, demand it Cosan dynamic, line, in to all defined in of objective continue that shareholders, dilution. business, shareholders. will if pay because have to of all how of moment was is now. our to pay starting be the generate dividends mentioned, it's that pay and cash generation very payment, you decisions own and more date. why investments have and to in be way objective more our not a even strategic that paying I [indiscernible]. ones do And less mentioned at This with payment have XXX% They they dividends type cash That's cash. goes. dividend some finance dividends a I -- results, buying we'll shares. the will if that than The dividends. that growth, call,

Marcelo Martins

managing for About next about obviously, and XXXX, at season, scenarios, improvement your downside. analyzing we checking always water the positive. sugarcane, GDP risk the when the first are question, for the soybean, supply scenario as of we the and But and look in next corn you for that the crop, see the and the

So have these businesses effect. for our very positive a believe upon regardless mobility. next businesses mobility That's I the that back that GDP, we'll important depend year. have will

obviously, reacted in we it's Therefore, that efficiencies. lot to resilient the costs, time, so And positive. and a extremely we a on surprise, we it's working even that expenses not are period. way are And and Brazilians of we vaccination, and see, gain more

affected will countries in we the now beginning to April, but the May, approach all perennial. provide of have helps remain have we that in and much -- us costs. positive, the with months we funding of projects and And base the in that again, that strong the pace, this together, will GDP future. important specifically than doing And businesses in of the what positive products X that of allow better Brazil and purchases, businesses, footprint. So a -- it's that joint of year. In at our that of funding as to on were drive costs a that we for face a also, movement And is a why in We keep that's as homework see exposed both to we are us and course, relevantly. can Brazil the where at to that once mobility we more year exporting other in greater and always a companies last run agricultural resuming all very so have disciplined stronger and renewals, terms very interdependence to commodities and have been well joint

Operator

Next Montanari question from Stanley. from Mr. Morgan Bruno

Bruno Montanari

Compass. one just have more I question on

niche, would market? price at this what about their your new if international understand happened mindset with the which molecule Looking potential new are price, gas higher I what is conversations in market. like volatility the to the afraid in if general to is clients, they of

Luis Henrique Guimaraes

important it's and had, think is great the the shock, the most I these to analysis down. surprised the disruptions. slowing market spot understand And considering world the that pricing, we chain the all be thought Yes, in to transporters. recovery was there short-term, that a and supply -- The the long-term. And pace producers going had gas

with even how see stresses will northern be need flexibilities, of in the who Hemisphere. have portfolio of But the clients Let's different our times, winter doesn't industrial That a customers different paces. that with change. or contract different supply

in there only management had was Brazil was of and Petrobras. not supplier, this that the of possible obviously, only the risk we mitigation And think when need which stresses alternatives. I And on X the a good for even and and And is us, been greater, because long is in have other time. market both we professionalism for clients the side, that traders. for responsibility our

We international only the as past well, have great are market Compass in team, few the to market, a all carried great has exposed, out we structure, years. that not work but and with Brazilian the

client better there to and basically solution, go we that portfolio with understanding, short-term be this which for That's position and diversification clients options, my in organize more commercialization, position. ourselves Market the in in interest in and are energy are how of based important, why confident have portfolio exposed several risk of go so So market, the the and believe, that's game. the in in had go is market type was their captive down, and of transition that contracting and learn. market to we each is more doesn't seen electric the each And change. the very It'll down. our electric part scared, and to and energy to the seen market what where portfolio we and understanding that adjust And so price companies free of this, up, can't looking cycle, prices on to is and we is want Brazil, is they have. we market. best the The major our And our challenge, go sideways. a is we can about between

we end So our now Q&A session.

was I comprehensive. very think it

Marcelo of think providing capital questions, portfolio, lies has I perspective ahead. allocation, our investments, the addressed also permanent but Cosan your what

Raizen, we Moove, not development, Rumo, also and the Compass are with are opportunities. and of for We excited and bringing only providing companies improvement contracting projects at We're people, projects, developing milestones about but restructuring very in perspective, the important with one the short-term our ahead. optimistic, knowing movements for the also each unique and topics future that

movement of very are because considering of we robust All important is development group. the creating that a each pipeline,

a we and that So HR have greater concern got me, the all we CEOs Marcelo the teams. --

have your not all where and so best we see in have all the thank only for and which we next the so are call. in that additional you participation, involved. for know-how logistics, outside and Thank but ensure businesses you to teams you we also we skills, very that businesses funds working fluid, are questions, are your much energy can in can bringing have that We

Operator

you a very has your Cosan's for nice Have day. Thank much participation. webinar ended.

Cosan (CSAN) 16 Nov 212021 Q3 Earnings call transcript