CSAN - Earnings call transcript Q4 2021

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Operator

Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Cosan’s Conference Call to discuss the results of the Fourth Quarter and the Full Year of 2021. Today with us, we have Mr. Luis Henrique Guimarães, CEO; Mr. Marcelo Martins, Chief Strategy Officer; Mr. DRI] IRO; and Ms. [CFO Lewin, [ph] and and Ricardo Manager. Ana IR Luisa Perina, inform We translation and available. recorded would into you is this like to that event is being English simultaneous to all will event, this During the presentation. Instructions] be [Operator able listen to participants session begin will be further we’ll Afterwards, when instructions Q&A the given.

assumptions be goals management business Before operating prospects, me may and forward-looking well are presentation Cosan’s this as financial statements that let during information and regarding to and based on and beliefs on company. proceeding, the that projections currently mention made as the company’s available

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

Ricardo over would like I Now, may Mr. to Mr. the conference Lewin, you proceed. to Lewin. turn Please

Ricardo Lewin

morning, Good and for conference joining earnings XXXX thank everyone, you quarter of year call. full Cosan’s fourth and [Interpreted]

those know me yet, IRO. I’m For who Lewin, CFO Ricardo don’t and

the the at and years of focused while Cosan’s Chief same process, I I Martins be IR I years, Marcelo Rumo, will holding XX last roles. and department fully financial allocation and leading on spent establishing position almost at take M&A the capital position X before the invested the For After held over company. the Strategy companies Officer,

Ana our at CEO; for Perina, figures and me also Luis yearly are Henrique, the Q&A As the Martins; the Manager. IR call this is joining Marcelo session,

especially We the been Raízen’s I for IPO Compass presentation, achievements XXXX group placements. with capital and corporate private and would Before restructuring following. the as structure, the our main streamlined you starting to with in like recap have started the

business invested also on continue in dividends well liability management shares distributed throughout bought and of proved On competitive through on process to to again the advantages. to always long-term which across it we back Brazil in has group, TRS year, of once the the be sectors focused top which portfolio, our new expose that, projects R$X.X billion balanced, important return

numbers their conference Rumo beginning Raízen Let’s calls main I and the with market, as own main these will Raízen. both operational go will each over already presentation business hosted businesses. the the start the have of highlights to with get topics of financial and I the with briefly

#X renewables. increase in in strong operations posted In Moving to reflecting ethanol, products. to price scenario and local about the we renewable international in markets. revenues We the captured from both attractive in talk an and a Slide in opportunities commercialization in mainly results expansion own our

was the availability sold for by in the crop product lower failure Center-South the the sales the in year lower volume the strategy period However, and of the reflecting region affected country. the

partially Raízen’s to lower higher talk the which we production moving segment prices maximization was about the offset due to strategy, sugar. #X, In sales pricing the Slide will in drop by next months. sales by Now volume and commercialization better strategy. captured concentrate over to volume This of its quarter, posted

Bioenergy optimization On efficiency and efficiency. inflation Brazil, supply and logistic the created investments amount operational inputs, health have capital. this mention EXG capture On higher to improve that from of was The It’s already includes care services. mainly about leveraged which plant quarter Bonfim Slide #X, Slide of infrastructure, on The let’s Operation marketing environment Agroindustrial focus industrial talk import gains inventory EBITDA posted on opportunities robust to #X, return our strategy the in from reaching impact CapEx. new result the Park. maintaining a We at in quarter crop dynamics right we we price record and the important present bottom to located investing Raízen’s the side our of due gains agricultural started the the matching the the in on movements. agricultural by and and

volume in noted Argentina. especially being sold the consolidated fuel should expanded numbers in started of the Paraguay the addition, that in already In period, be have Raízen. from It

XX In other the R$X.X of which presentation this our period continues keep developing than opening, took & through updates. payment Comgás, the gas the in the Regarding important distribution at the X. integrated and stores digital to million XXX XX pace In in loyalty our accelerated Energia was leveraged proximity, last there place marketing demand are network EBITDA of XX Gás services pass-through than months, the and on here last In the adding we same new EPP pieces were increase some an represented transactions Shell months. Slide Box, platform, billion natural an with for that pace. margins, Compass Continuing platform in flowing the in by more inflation by and that more [ph]. May. on

the was fourth We in São Compass agreements. the negatively the with where construction XXXX, About allocated revised energy in business posted in the Comgás rest expansion volumes distributed the of accelerated plan the of CapEx, across was investment the activity, quarter economic execution plan. accordance recovery August. Paulo with and On XXXX In by and effect EBITDA quarter the mark-to-market most the Terminal the record investment year of the top of to trading it mainly guidance. reflecting non-cash all and of Regas that, line of segments both affected in in

this to of earnings capital. economic expand access conclude aim subsequent to the movement the natural gas Finally, we and of This Sulgás at of to the development. piped the benefits beginning event contributes required and security XX% a of for the acquisition result, January, energy to region’s therefore,

of demand activity the present the resumption supply year the of lower was assertiveness the in Now, half neutralizing period dynamics, pressure in by we which market the guidance. by supply of XXXX, second strong results EBITDA supply of pricing that moving on record captured raw impacted year Slide Know and economic in in the Moove additional results. sales demand, in the explains of to gradual EBITDA X mainly to even normalization company with the the volume. the line restriction global demonstrates the the posted though strategy, for and market. cost capable The robust and material the leveraged

Santos volume Slide focusing than failed full to on the Rumo. on maximizing pressured EBITDA crop the the margins #X talk to commercial the the in transported, Also variable Rumo by by operational in more about operation the strategy challenge Despite and were diversified reflecting mainly the the in capacity. Moving relevant to the share year costs reaching harshly higher increase tariffs. of and the scenario, at corn period already South that, our significant mix Central hit its was we at capacity share. gained Operation. due lower the Besides Network in started market Port cargo in

addition, and adverse in the generation. for the In capital investments cash in both in are the year the more quarter Rumo’s evidenced environment discipline of

to present basis. go for consolidated Slide we XX, on forma Let’s figures where Cosan a pro

This competitive it Brazil adjusted the Compass. we period Rumo. from sectors by sustainable in Meanwhile, In subsidiaries contribution income plans. record quarter, year, excluding EBITDA driven in to in the The with important reached advantage. reflects effects lower growth expose balanced a net nonrecurring was line net portfolio results levels the and income with the EBITDA we in reduction has in which delivering kept consistency

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

the group, generation And of December, debt, of results expect from net better stood debenture year. second at in R$XXX distributed due issuance totaling kept on round income for driven the until Compass Rumo. R$X.X the the cash the private of X.X dividends Regarding the face the and based fluctuations at at at liability year. in its I increase at to group this end and the by usual higher dividends process quarter, the the settlement Leverage management in end potential debt-to-EBITDA cash of we our Compass across accumulated within to fundamental market shareholders levels million JCP net Rumo throughout period, billion, the last Free September, placement Cosan ideal flow in to to equity entering Raízen; In operating received XXXX. and the Raízen.

we using were milestones important the is total in subjects swaps. consistent these related for the no delivering achieved also impact, buybacks XXXX. million our Well, almost addition main and R$XXX Although return Cosan’s robust in portfolio to fourth We reached and share cash to there quarter results.

group’s this a relation with we For scenario increasing XXXX. guideline to giving in the in investments macro capital year inflation, worsening the more and costs conservative adopted

of portfolio maintain leverage our cost synergies and usual CapEx, the to more We maintaining in activity the capital long-term seeking new will levels. [ph] success further improve at adequate projects, ensuring while optimize the have and tweaks supply approval of discipline

we a here Important including committee go and to on over CDP is will #XX. Cosan, attributions, EESG year I was Committee. supporting with a among the signed Strategy Slide committee people on the Braskem partnership economy agenda, The sustainable select for nomination Sustainability governance the of carbon joined November that, development Before to In also both recent administrators. course. concluding of presentation, Cosan in forces our people my the at joined from circular order “A last to was XXXX, ISE note On members. board that neutrality. Index, the in the Besides highlight top List” in in agenda improvement independent developments a consecutive of Corporate and year, that, the all Also changed achieved have component committees Cosan And the Rumo second solid as of Raízen. the changes January participation companies climate ISE, to We XXXX and recreated of selected its Group nomination the BX. year Sustainability portfolio. join strengthen the

part once of construction in the pursued to Bloomberg the again consistently workplace. and which Index, selected Finally, inclusive reinforcing of Cosan was way has an GEI, increasingly be diverse the Gender-Equality company the

this But progress Ana, my made we have you at Marcelo, lot significant leadership improve, topic aware a presentation the Q&A much. agenda we and [Multiple and our conclude with With Luis, may of that on very participation myself. have the a Thank that, to Speakers] session of I level. We priority in the sections. is start the

Luis Henrique Guimarães

[Interpreted] like the recap I Q&A call taking to the important. Speakers] before would conference beginning conference would Board part turn our our beginning that Mr. Guimarães. be Before to [Multiple some Q&A in for I the like session, briefly to considered session. to Luis Henrique over

You’ve of in seen over from happening bottom we’ve structural reducing covered reiterate go is safety but I the accidents, been people that beginning after huge push we’re the changes the projects, to I culture EESG and down, agenda. related data, our structural our results, XXXX. for to and over these information make a us Things and will went improve closely in huge systems up, our in very decisions the to top in score, to important year to a years our and X.X want in terms the belief has embedded it’s that improvements it’s but in help Lewin Again, security. want what of X.XX incidents are learned really are looking from forward. results We our And from companies. our agenda. this,

me of just in our let and sustainable that results on terms had touch Now, the progress we’ve generation. value

Compass. Let’s start with

construction, with another important the being we over achieved extended it’s figures continue connected. past that XX and years, our can we’ve First, Comgás in so clients we to get to have the XXX,XXX invest very in

a room expansion a still is there So natural expansion gas. from of lot

proof-of-concept to expansion. We’re our of geographical our have going

great expected company we and us The private will the in what couple technology, company, objectives. with months first onboarding which with Comgás potential a for and state achieve upsides of help definitely are our into potential line turning

important Our an also TRSP, Paulo Terminal, of Regas part that’s company’s São strategy. the the

complex for sure gas course, make Lewin now our company. investments. XXX% commercialization, resources very commercialization. a lost and of that It’s platform that we to we placement, quickly, to We’re on reassessed recovered the the important mentioned, very the electricity we with have high some partners, moving And, private have developing the there, and very, downsides, it’s as project, quality forward very but important. but some The money right we focused and

Compass, recovering, so and and team, that’s management on doing our what Compass. is team, focusing best, we do learning, the So,

time continuing the to results, results generate our even Moove, challenges. And for years such couple supply our Now, as to to able time we’ve more running team of been base the abroad he markets, in oil And a which has in solid improve Filipe, path to developing in Brazil adverse natural moves terms improving and last been has ability operation. ability scenarios CEO forward. now more chain of the complex spend international very with our spend is

international people the but our to abroad we’ve way process we have by expansion more hired of time to line culture, Now that the operate. go local more Brazilian through understanding and in with company

the wasn’t was some for satisfactory, overcome But unleash were EBITDA efforts were value affected our our there weren’t to very that things important we the best for happy make because to failure. year, Rumo, by continue will of obviously, we the line Now, the goals but the company. that crop that

to rail increase bottlenecks imply allowing also considering investments, the the Santos the and in Our at will of us we in new important and Santos with improve efficiency. The the is North transformation Operation operation tariffs, through continue Port terms MRS the allow better considering elements management [ph] prices. yields also major huge What to and our which of seeing decreasing of very of existing has a in freight been truck reduction us terminals. to will expand considering in operational Port terms have gone and

with bigger mention capital, of project were considering have to the changes in so short-term transit that XXXX all but achievements now definitely the and to but time expected. truck Raízen, we of reduction last and market considerable the but of well. forward only hours technology, the about ready cost than At proven capture least, Santos, of XX all ahead time. we only half second XXXX, us year, the We the achieved our not it’s important to And of looking there, but allowed labor, considerable We’re that’s turnaround as volumes. at cost Rondonópolis freight the considering had some on to the consolidation be structural it’s in fuels, this not not has pass-through inflation of on the maybe EXG and Not costs BR-XXX, upside. year, for toll the not

company industrial give opportunities. expected. into to the and Argentina robust behavior and in huge and proximity, upcoming results, Shell that And has we large supplies will it terms which way and the the implication renewables the the complex and contracts, very results achieved change it were making that deal that important it most the important than in assets, But in So considering In also the make IPO, and on assets. of on our the and batching we’ve Biosev all the considering quite services, of some convenience better of us and progress, marketing raise way sourcing that to terms Box, the structure by was market, Petrobras with and Paraguay. investments fulfills Not in mention that in orders, of the a pricing. entry and integration

our our important So of lastly, they brand And sales the sellers. structural we consolidation prove at the was management of than and completed. board, was investment The better and expected. through issues, the an EBITDA investments, thesis expansion Cosan report

the bit investments with will about about, more last night, take future logistics, that and improving a so the while as little and bit not that. businesses allocation, we had we’ve a talking had be we business, about CapEx, an CapEx talking to R$X.X capital rate, project made We more has And do inflation so we’re we’ve And efficiencies, that. of I announcement billion revised billion of be going specific mention vision And I’ll didn’t our CapEx. a optimization. for X our cost another and into interest rates, business I XXXX, quarters R$X.X where

capacity. future, productivity. it all for it consolidated, companies. was doing growth the So which That generation thing may be our or transferred cash the we’re of but it’s hasn’t lower, And great be to same if it’s affected Raízen, will with and

partner our CapEx. have to there’s about we investment, our other going to we’re is because that priority love to our if and with not wouldn’t Mobitech, it forward have in other it. there so ongoing rationality an we But a journey. up, Box our keep effects it And business. our the important but different partner we to required, part it way that’s to comes some can be things prudent wouldn’t priorities in take when implies been this And investment partner with Shell Porto businesses have business and move to some that make fair Seguro think our see We to investments, is decision

Some changes and mandate invested our has movement, check are the business. if seeing you’ve And in over authorization we and the with Rumo. to buyback been to buyback the future continue to compatible will our things buyback Cosan live-in go companies current

been wanted terms some allocation. the been recap climate considering progress, some So move That’s the structural I a to can There now Q&A others. continuity, portfolio talked that in just it. XXXX to important what have have about and was during phenomenon, delivered but capital great on some board extremely there And been is year. the than of It’s Obviously, meeting. have challenges more important session. we fact areas

Operator

now Luiz This the we Thank from Q&A question Our – concludes you. Mr. session. Instructions] comes from UBS. first Carvalho start will [Operator

Luiz Carvalho

Hello Lewin, Luiz Henrique. Ana, Hi, everyone, [Interpreted] here. and Luis

I could think, on some at There’s they of projects. Porto and allocation I investment of a Seguro’s asking detail release. continuity And mentioned questions. looking more some me there. But you their spend an capital revision hour press focus of the let

be progressing? will So be Can the about bit I’d a And federal other and a like from one-off? in mining, And level? capital Porto us you how allocation development? at what but to you’ve How is revision, you you. capital Compass’ steps making that difficulty state give if Gaspetro? progress at assets? You’ve detail also you law compared see broader Seguro more areas. the Are us terms areas, the other little your some are allocation, not things hear interpreted give more how Compass company Thank should you revisiting looking bit in about of process? a will the in some Are next level to been and we had other invested so, color you listed? talk that in about mining how terms looking are Could be in on you a

Marcelo Eduardo Martins

how taking is Luis Marcelo be first of current [Interpreted] Hi, very considering be conscientious our we scenario, level. of Well, the businesses, to question to different rates I’ll allocate because cost there’s always it’s we and a will portfolio, and second. our holding capital. Luiz, the going review this in increase an the And about capital that need be to at clear in your interest Martins. taking taking that all the we’re

and back, based we historical into make We we – you to support business, discipline, to make on were that structure, our decided thesis wouldn’t that As we just But over business know, moving disperse the whenever thesis. fast, we’re it talking decision our the share. sense allocation to have capital, we can were going all But not capital like capital requires move about what need like we make time. changes. we buy capital because that invest to because really to go and of to

our decision, have it projects, scenario. incompatible considered the the things a our time. of are current matter to need there been would mining plan across decision the many now, be nature to were of is the that it keep our of might hurdles in Brazil’s capital allocation and of decision outcome made if So the other timing review that was that investment into Considering different. we considering owing case be different, But board. project, because Unfortunately, to a kind was over

the been to structured and have decided decision the jump will that mining, allocate that to we’ll make to operation not the because time capital has us naturally. to flexibility not we’ve capital and gun say So we’re that that going give allocation way

make time have the with happy we’re to So decisions. we

how the project and will decide to share any look And can also we asset. to to that assets very make and much peace already the that current capital allocate? we be? acquired, our How so of most this strategic We because a as us We’re time don’t it’s the go this have we stages, the changes with have mind. much automatically we we agreement. need now, happy over want on with gives of to project at make means possibility the final It flexibility

made Yes, into we with have third we our going they appreciate happy the in the assets, company, the are for brought with invested As how we’ve to Radar. and extremely payments portfolio. the business, are we’ve

So the are very in management, when desire use to is the movements, considering right. doubt our is in price considering group’s our to terms the changes of scenario, our no liquidity vision, shares buyback there unnatural that and these the portfolio

to now were companies That there buy to Cosan. Our objective to the living. they Raízen, is right Rumo, If listed mandate part would group. is that. of for and includes a it be buy a also And X others, buy clear the in

to they the other because do will has our to the If generate don’t move to group’s have better continue do priority it. same be value own valuation it, provide from that and have So capital and value been businesses generation. we shares, will we don’t the same

done, we’ve just turn second question. Luis, the like so Just we’ve over I’ll announced. can it he and to take

Luis Henrique Guimarães

state to we XXX% a so as the level, so forth. need companies to clients considering the to activity process for the is a looking and about we because Compass until to are and geographical are of that ability very is with disclosed Template going And to end, is the in priority team the an CADE’s on of comes the decision market. on are Yes. framework this and change But the decisions the success. [Interpreted] which on journey we’re the our of a on business move replicate time, Gaspetro before the of whole had partner an gas such now through as Compass it’s at other quality expansion outcome. fantastic. regulated Petrobras, federal optimistic going capital market highly based and area into quickly, still process, allocation, wait important with A Comgás at are it’s free as and

changes will the on market because the demand. creating is the and articulation, every infrastructure But forces prevail; supply, direction. investment So always working this going hard enough we into on in issue has of The are nothing there opinion is this market. interaction the

will and They Brazil infrastructure proven. all network with of the in demand, or the elements. all the and that the efficiency, And free transporters Comgás can clients is create clients on take way to build more there no to energy the other has distributors distributors. other than other competition forward, than connect gas a need clients existing we So existing

technical very will opposed market But Obviously, excited. So market and for which protection as opinions best we’re instead win, hope to of elements and we market diverge. facts is that clients. the the development, outcome

So great be some And operations can. as be things able Hopefully, as same we that’s come a example. doing will do important this we portfolio. to we’ll that the Gaspetro soon will soon to with other

Luiz Carvalho

Great. [Interpreted]

follow-up. matter a a Just do it’s Luis, happen so matter have the matter gains, of just you restriction, and want Seguro’s you of operating businesses, a any of Marcelo, priority – about it’s to priority so buy? what other high rates interest given which quick are a Porto synergies, you capital of decision, idea in might

Luis Henrique Guimarães

That’s [Interpreted] Yes, it, exactly. Luiz. That’s it. exactly

Luiz Carvalho

about there? What Sulgás? [Interpreted] Luis, any idea

Luis Henrique Guimarães

thesis. what distributors high when quality businesses, extremely Congress. be be team, will we say Luis there, that new Model the We’ve clients based The with over network operating looking [Interpreted] quality on for the been time. business than on of is there can months. is smaller multiplication, for team what can X our much assets, approaches, they’re are with There did smaller consider happy an opportunity at But I But we high developed technique, that that that. Well, scale, is replicating you some what we already conversion see based Comgás. are

We very, but on there’s be positive. days the foundation optimization, to a very work culture to first done. work of need have So been lot XX

Luiz Carvalho

Thank Fantastic. much. [Interpreted] so you

Operator

a from We Simonato now question from Bank of America. have Isabella

Isabella Simonato

how everyone, are Hi, you? [Interpreted]

Luis Henrique Guimarães

[Interpreted] doing We’re Thank you. great.

Isabella Simonato

a companies [Interpreted] controlling about Thanks, everyone. Luis. Good the have morning, question leverage. I

So new on Thank about mentioned? new in kind at both focusing What that done the cost the it’s rates anything the we capital, there’s liability see be interest mainly you if company, the subsidiary management of opportunities this companies, inflation. relevant What that’s my considering controlling and of mentioned you. scenario high of You question. as and can do first Cosan? terms but think, you’ve

Ricardo Lewin

is Lewin, Isabella, this doing? you how Hi, [Interpreted] are

Isabella Simonato

Thank good. I’m [Interpreted] you.

Ricardo Lewin

[Interpreted] the this the Well, the leverage, shown in we’re discipline. of groups across group, an terms of the all is adjustment consistent have in CapEx doing a board

prioritizing So our the we group. are the now in investments board across

it important first point the that’s when as liability for So to comes management. leverage

for XXXX, maturity, next already is schedule our paid looking the amortization Our that that. we’ve And is great. Bond partially

Our for reduce and and so prepayment be looking XXXX. over of you XX debt. looking the Bond opportunities But XX. to liability cost next the prolong price we big And, of potentially now know the us, payment will at to windows have we’re and constantly go to market for

Isabella Simonato

Thank doing said that [Interpreted] Marcelo consistently. is buybacks. you, And he you’ve those, about second the Okay. question That’s great. mentioned the that been Lewin.

So considering Raízen, How a buybacks? liquidity the are context about the you Raízen’s and the which has of smaller proportionately, float size considering thinking of in liquidity. float,

Marcelo Eduardo Martins

of to increase find that have our liquidity Yes, paper. to and a shares flexibility market. liquidity right float to talked an on to We to is be back with back for Isabella. you to we commitment to buy is be buy right Marcelo, unhappy to at achieve mid tell BX that going end. ask more bit is in should will those commitment with should of increase now point, And impact that get do as long-term. able go that the what is is order an a back I paper some about and favorable, that and be to This market float. to company’s back shares, BX immediate to to volume. [Interpreted] for the that the But But goal That required. the to to as exception, is the more time. average our market the in our that float And quite looks still has so a we’ll the time, you that given the shareholders we’re we the need We could will exceptionally the can sense, has the that right to we’re make And objective That increase what to the BX to don’t now, selling over now. minimum flexibility the over have equation in going buy answer papers us we again to long-term. clear prices

about we you be about class, or unifying be about? kind Maybe will No, the selling, obviously, class will What price new we’re We but of be we future. when the those And talk the papers buying, selling will you that? that selling not also. we’ll will been considering we papers about shares? talking talking talking are you in be share Have that.

those Our sure when make to to liquidity to make goal more there’s right papers. comes now it is that

when So in shareholders increase will the the right be time is making effort market. a liquidity, to joint

compression So have also can buy we liquidity helping over fundamentals, as as to seeing liquidity the on doesn’t that was, to based sometimes making rather shareholders we’re than on papers, BX same that paper lose time based we because that’s back those fundamentals. sustainability sure and we’re The improve point the we’re that we don’t convey now.

rather We issue, have fundamentals. liquidity than more of a

talking right case practice, line. unifying idea in not right buy that and about now, That’s the the is them classes, now. the down to possibility not So we’re be back a if even might

Isabella Simonato

you Thank Very [Interpreted] so much. clear.

Operator

Pactual. next [Operator Thiago question is Instructions] Our from from BTG Duarte

Thiago Duarte

cost the on your unfavorable change? you especially an clear talking capital. portfolio? was to assets Raízen not that leverage in And in and also What rephrase since cautious, is be the of part to back cost X.X have the that has Because company? like assets, we’re you’re ideal [Interpreted] current maximize that or this we high Ricardo, to does My that in more the for is to your question the everyone high due the had Mobitech about Ana, Marcelo, to because high maybe So quarter, your Hi, higher decision your and Luis, leverage decision company rates, of end the being inflation bit consider was to and the focus of cautious. holding leverage, leveraging the seasonality. of decision interest In considering But you rates, question. for target a with I’d release, have the times historically. capital, that your different to and you’ve be it’s contract what now go to please, leverage, to CapEx team. made you’re how your

we should we’re right if different you, consider from now. target seeing hear level a to like I’d leverage to So what

my always idea having futures. first your vocal permanent past, listed second the about portfolio companies. is My about in question. In the So very you’ve been that’s question of

we’ve So last Raízen’s year, IPO is Rumo had listed.

be Thank the that to So deliver about important permanent it because I’d I’m few your sense before sure the you and about it’s portfolio you? companies, Compass milestones whether to other going still But to to make companies. hear Does I’d from to listing like you. hear a like for market. Compass, capital

Luis Henrique Guimarães

return. when then it to over of structural have it makes Lewin. of conservative, right we But interest in more go considering what cost [Interpreted] in first I’ll opportunity. our be comes more no terms has There been of turn debt. makes to rates sense take And I’ll terms change if the now and to what more up, sense

to what really sense of incompatible might conviction discontinue So Not the decision. with same the Mobitech allocation decision the be not the moment it same we’ll would shares our What to because level have it but be the for makes years. capital right was deal shares. be the need to than a will unquestionable that more tough value? really more project that we was over exactly back back Mobitech more very amount. using might the that Well, we now required for at buy next with you was But all use buy few

decision we made right making Because we’re So our be implemented we’re very are a and holding and won’t company, that a decisions swiftly. portfolio now. manager,

capital to these shares. We shares. buy our back right savings, now from right capital company net using may make is doing long-term holding makes sense but sure some So the projects to what back buy now we’re what have away move is can to

stop and to is growth. one-off, interest portfolio to growing. who going I how make scenario, we me, been is want penalizing to growth. to in that current rates, our anybody great stop want of deal not the have back, on doing takes on all, the buy to especially think readapt focused of because Not considering market not that everything This that it is sense do company at and instead of And grow, scenario. do will true. for scenario. We this a of there’s they unfortunately, portfolio current us see think market your is penalized them to us make you shares growing. as not continue owing for opportunity out of do think expects because sense, That when the we’re from the not the focusing but investments portfolio said We the for management. That to the considering please the value make sense, act make of on in our does to But cost current that. in Our to movement I company swiftly terms comments a to a

based we interest cost So the applies reduction the over the CapEx growth companies the But you rethinking communicating go this go predictability have our well, conscientious scenario everything a to as focus for as the changes, is attractive that the used and we more again. and as considering have on be, very it can when But now same political is strategy they And other not also scenario. as very projects portfolio because to rates to we on complex very short-term down, our as the continue means will this that right comes to scenario, clearly. to right is for as we now, that mindset, objective. because are decision

portfolio, nothing to company. for changes holdings it a comes As listed question, second your Thiago, it’s when the

and as liquidity and listed, window not them float Moove right the to the we are that to companies soon preparing as and We’re have Compass the in prepare market. right

and little changed IPO to IPO Compass prepared better take it a is obviously, different an comes but being of Moove prepared. it to for is maturity our might has So comes it nothing when strategy. they an longer, when levels have

to leverage, terms X.X target as that In Cosan’s within from is X of our so as we are long range.

bring has It very was want the any We down Thank decrease comfortable. to That a clear. range to little be same. our our leverage it Excellent. point, if not changed. continues we at target We’re but might you.

Operator

Our next question is from Regis Cardoso from Credit Suisse.

Regis Cardoso

you my okay, Lewin? answering [Interpreted] for Hello, everyone, Luis, hear you question. Marcelo, Can me thank

Ana Luisa Perina

[Interpreted] Yes, we can, Regis.

Regis Cardoso

a couple Ana. Thank I [Interpreted] questions. of you, have

The is Mobitech. about first one still

fines investment, it’s very about Is like R$XXX of I land or is to holdings results, that any I’d Radar’s it’s now level, holding for valuation the is little your the cancel SG&A that plans EBITDA valuation bit investment? which out ask operating revenue? relevant penalties? decision decision? a from Your per because was R$XX was an a company’s a that billion. to with be recurring what And to part How maybe of right capital? their balance lease Could a the there million operating increase the higher that considering the the level? philosophical, higher have you more have or the one separately? So Will seeing X that and close about company, And you questions, quarter. are operating about that separate few out, what the How the initiatives pay those than you. profits? Thank XX% the of views? do you dividends, might in a companies come Can more was

Luis Henrique Guimarães

question. first [Interpreted] the Thanks, I’ll Regis. take

quality make of of scenario. reviewing company, to from We you in admire ensure partner. the Yes, are still investment, we they we There contrary, the has priorities clear. already continue them. have truly rates, the very, believe easiest, in we in they the talked the management. a cost Quite the Mobitech and interest ongoing me this. the the tough because been is about that the able They do but investment capital. Let have the sense, us, of project. wouldn’t wrong not We to what current quality very cost complete been They’re have our of integrity the decisions. nothing because we sometimes with as they inflation, project, quality a invest to the need to make of we need given to life, Marcelo considering about the projects, the project. great preserve make be came higher our But decision Porto

to So to transparent elements had were we preceding that with wanted concluded. we be some had that make decision. And our be partner. to There

as to we the so position, model current partner. There our to no see to question quality the they So now and that they talk this partners project of They come. sense And debt the will of could fit. that operating be Radar, SG&A, that continue continue flow. made many came let’s ethical about terms the with for in our was about years the

the what the rationale last the I’ll take year Cosan say talk different always to valuation. And nothing expected, the what of in we about land was So to investments Investimentos, there million. R$XXX lots Ana SG&A, increase was it’s then about additional Porto market, an this one. can Radar,

What if flow matches schedule, it I you’re question, right? me and Let debt our about we already amortization we’ve talked see is, your do. and asset everything got saying our

So I and amortization But we’re please I’ll it the very comfortable turn haven’t, know. principal. schedule, debt with your ability and Ana, the interest our question. answered cover over the hope, to I’ve let I me to if

Ana Luisa Perina

we debt, of under debentures year, a at Regis, holding. couple still [Interpreted] issued the last

made process the and we the done issuance, in out we’ve as opportunity. best our just year, those Last holding liability part the we’re of X paid So when definitely want preferred work, management had with is results. holding be at of our we announced we the so and resources, prep we’ll looking part the always at I company. effects obligations they’ve shareholders point our recurring our to

have an those seeing and an of we the be that a valuation planned accounting revenue So when in get and estimate at report that monthly takes you confirm Radar. place. our estimate, effects. annual potential expenses that’s And we’ll amounts, actual But

ago. from portfolio X had, one in appreciation, which another was other million R$XX this other the and have happened to land R$XX land a we us, valuation, that month so the comes but So months, accounting X to year and months, year, were that already R$XX the In million led the the effect. from We revenue of after different that in with closed, again, appreciation of that they P&L million for revenue before among was lease from a an a from October, acquisition, deal effects.

the have we we numbers, actually quarter. results year, a but every once disclose So the

Okay.

Regis Cardoso

[Interpreted] Okay, Thank great. you.

Luis Henrique Guimarães

[Interpreted] the terminated was a It agreement. contract. And we the agreement end mutual to

consensual completely was parties. it both So from

Okay.

Regis Cardoso

you. Luis. Fantastic, [Interpreted] Thank

Operator

is next Barra Citi. Gabriel from question from Instructions] [Operator The

Gabriel Barra

of couple a have I Marcelo. Hello, Luis. questions. Hello, [Interpreted]

Luis Henrique Guimarães

[Interpreted] That’s Barra, we can’t sorry, I’m you. better. hear

Thanks. Great. Okay.

Gabriel Barra

a questions, please. follow-up I one about main [Interpreted] couple have Compass. of The

You’ve Compass. talked about

is would you without do So up because expense, I the time You’ve there, capital far might operating be Mobitech, business interesting That’s do that allocation terms, the your lot as able about that continue with cash that were the to that be without your problem? you issue? Because for understand think synergies some expense? talked take solution a as that. cash one. won’t But might on that I it, there but operationally first a

about Could might you to be? to go complex thinking to comes And make How not main issue. might that What know is is potential you the when that you will the I second of That’s different one in main and the sense us? back sectors The integration. IPO, it’s points and one purchase think a make there is Compass. market. But remedy any the we When debate the it of the Gaspetro take? Gaspetro. timeline long deal do discussion share with CADE Compass’ the

and monitoring do in is, market, businesses? there’s sector? competitiveness should business so from the considering the traction be that? be that I’d of discussed what gas the short main lot mid-term? to do kind a affect to synergies are now would integration regulation. that it comes can you. right hear these to what I about among really think So will more there in like gain when we you But And be you know to the What what you think Thank the there, points an that is How that

Luis Henrique Guimarães

the for there deadline. Gaspetro the group usual of CADE, will deadline companies the will official and and to be the the June that So we its it same continue path. opinion, have if that synergies, because [Interpreted] the the end The is do Raízen And we authority and will Mobitech, time. will limit take in yes, continue issue place conditions, Porto believe the and within will it take do believe thesis. on operating it are the

So the time just and questions for on we to wait. so schedule, need answers is

company market At there are same monopoly. the These to a passage trader, other is molecule established of cases the and need with reviews. rite a confused As segment the the don’t regulation, huge to with of happened make it time, distribution buyer, A there’s different. volume. buy we see Comgás sure regulator not can for Many network were monopolies, The use producer companies well, from across are any and tariffs that and that that. chemical about that pay that remedy by is that confusion. a transport that. at a It’s the aren’t natural the privatizations for It’s for for seller, for regulated any client based people Comgás’ Brazil. on free in that’s

but retail, with So free structures What market, do, commercialization. to in in to Comgás to There always food. happens any is the be trying been what which has clients to the completely the are sell need industries. evolve still competitive, companies these will electricity, in companies That’s buy connect role in to sector, and to liquidity market producers competitive on completely is needs of provide all market. a and always open. There wholesale be the through some risks will fuels, these take but competition,

involves risks, So there’s it competition. involves necessary people, confusion in gas work, it sector, involves a but it and and it’s huge the

to obviously a trying market, it’s because easy not We’re Petrobras. that develop there’s with monopoly trend

different terminals, third are no team to to we working countries, about will it There’s time. clients gas develop as parties to zero neighboring free Brazil. you that. our market But practically is for in So new take There across with from know. supply alternative the market try talking talking developing buying

forefront of know answered these if trying of I many don’t So and I are attempts the your question. attempts. at are there we’re we

Gabriel Barra

very Thank indeed. was did It you very clear. Yes, much. [Interpreted] you

Operator

have question now by from a Stanley. We Bruno Morgan Montanari

Bruno Montanari

[Interpreted] you answering for Thank everyone. Good my question. afternoon,

year’s bit conservative it the more, be main scenario. What a your And results? about this start mind to mindset in your sense it XXXX are surprises that change comes adopting concerned in investing companies when group’s makes You’re might when very results? the approach, what to right mostly What which you upside comes now? current to might little the a considering bearing and

Luis Henrique Guimarães

we and inflation to all We’ve Well, at adjustments. through, the the one [Interpreted] those that such happening through will interest first into is calls, going price and you talked translation conference change of require the of change all, as rates, any are abrupt went happen. other rates, and

it there’s interest in through very also And Let’s inflation pass-through for will very visibility. more the times, adjustment and we capital are to – for happen. high cost tariffs, XX%, abruptly affect then have so not and And ourselves as other requires advantages become then power. it that’s [Audio to but Obviously, main are all to happen. agriculture, well rates, The with this to high an more transition rates, first disadvantages X% from time renewables, prices, a also relative when population that we’re suffer. Brazil’s that happened different value we and hence it XX%. drivers huge disadvantages not advantages that purchasing move rates, a company continental companies there competition comes of buyback will But electricity, the crystallized positioned Brazil sized different point Gap] delude confidence different and will average with going products, our an the and the

beliefs our changed. have not So

changed Our that an is project What awareness different these has times. changed. are hasn’t management

need We and watch EXG projects. we So plant stop to won’t our wait.

second this of that to half committed year. We’re

rates us. interest our will down especially considering remain assets think that, interest not Brazil from our We We level. to share have go again. to the will this able are needs don’t believe change that will continue Network. But our we expansion position with decrease then and of North inflation, might be divest to core and We rates at

isn’t cautious. just being panic. We’re about This

the foot need off taking not our that We’re pedal off to happen. from things

short, of supply taking competitive and term. the while the that commodities, all will it cost to projects, generate changes synergies, sure be that’s And always long around, time all We’re mid cost inflation chain. because there At the rates, to make responsible. to of consideration That’s that we’re CapEx changing. and construction, looking when just assets of building of huge affects structure accelerate, to continue comes which comes look are cost around, need to we’ll the doing, being into we’re it a in the profitable, opportunities what we’re be capital, it OpEx, when we

Bruno Montanari

Thank Luis. you, [Interpreted]

Operator

Bradesco from Gustavo from is question BBI. Next

Unidentified Analyst

it’s [Interpreted] Good morning, Luis, this I Marcelo, bit quarter. have policy, about cost And Petrobras being question little comes you a a passing mining. it when more That my reticent talk to diesel Could about is question – pass-through through? a bit little about huge Ana. and Comgás. was pressure and second

the a important which the Port. first was Louis You very purchase of took concluding St. step,

Or course, Of more there will and give in more JV bit you – many that a you what are will with the it Br? process. next taking the Paulo investments involved Could before be? be in making color step? steps about step that the the be Will

Luis Henrique Guimarães

[Interpreted] IGPM that agency pass-throughs. about. I’ll the regulatory about at some up and into needed and with fuel was talk to consideration concession expansion when concession fines the Paulo tariffs to happened XX Okay. it the fourth terms and do the with the question quarter, with the taken São in has none to so and of for the that And the nonrecurring, so years. are Comgás, to the there the price those They’re to of What government, Comgás the extension XXXX, IPCA, granting authority other went for made that the another take advantages were we of concession came we issues recurring. December over it

cost the fuel, the said for As rates competition. is the more expensive, more fuel what I oil Diesels and of interest capital, or expensive. similar it’s to

authority to and to granting have aware gas future. the expensive. regulatory The so, problems this higher that and lead prices And more will be powers be the will in

about expenses we year. concerned in obviously, remain of are other this CapEx when events the comes for we near that. the reduction, it that’s per concessions low could issue. Grande So any stretch, were additional looking sure terms concessions low mining of but best in do main lead that that this the se, to and make to XXXX, port alternative some macro and we’re and São port, purchase not clients mining, in the considering overall a for consumption that the project that competitive the But Sul, Well, so happen CapEx the after were Rio in future. We need that economic to Paulo,

decide will test year, potential, on the We to the much project technicians final on will able on and actual get as to be continue make. project. the the to stake feedback, confirm potential, have decisions depending more mineral important from of the spending in we’ll the we’ll next and the decisions, Based we be and how of

for for XXXX. most that’s year. relevant So We’ve things the this done

time. to are go And be there And through and low. be many a practice, flexibility next it make decision. So need we we At should have over the will that steps for stages year. will to that year quiet first, you, It will the to capital will our allocation pick in don’t communicate project. we’ll next increase but XXXX. much up expect Things for

Unidentified Analyst

clear. [Interpreted] Thank you. That’s very

Operator

is from Sebastian Hickman question from Next JPMorgan.

Lucas Ferreira

is Lucas [Interpreted] Hi, Can me? you this everyone, hear actually.

Luis Henrique Guimarães

Lucas. ahead. Yes, go you. hear [Interpreted] can We Hi,

Lucas Ferreira

a Good of afternoon. [Interpreted] questions. couple have I

Compass’ portfolio back we or scope transition, to sense you Marcelo, few a Are a investment You Brazil think it that any You’ve make I you bought only? considering make considering? would divesting long-term and your great. considering it how is raised you mean, had management know themes you’re considering investment? there maybe any with Would divesting to investments another your focusing assets is you’re think scenario. abroad? to Radar? Are when Energy of on question, capitalization or you’ve doing And needs comes consider should to Luis any challenging assets? talked rounds comes in assets? about Are I sense? be Ricky, do when more one year? Investimentos? any are other first looking would you there The strategy. more What that the bar any capital. kind themes you? Compass it at from any and there other Will your are you you be that I Or any this from? But don’t portfolio

Luis Henrique Guimarães

investments. [Interpreted] Well, potential with let’s start

not dilution divest Our which we divestment. might should our from to IPO current but goal said. portfolio, We Compass’ is as not some have lead to

to We our will the next list one. continue companies should be Compass

But the capital will that to low, its when IPO see now, the conservative. have window, On need structure low tends is market a be when list, market the company. level feel see do don’t company We of right level? little listed indebtedness more in going is But what business see we right Is there and will about move window, IPO through through dilution. company’s that another we the don’t debt. relative also you divestments. we to go if good, we The terms a company’s can be we more the that’s investment become bit any like. talk We a

Radar. acquired have We

will very is If reallocating it. are opportunity terms, to continue group. capital within are general about to but do that. That’s an stake, still We’re consider additional we is But happy we we any that in for there key. will what investment the saying that. actively opportunities, looking And buy we’re we

While scenario going in the see we we’re still through now current Brazil. capital right

very terms we’re itself. exposure Brazil of we increase outside vehicle about the and that management, objective. opportunity to asked You other in achieve be whether intend currencies up to we’re to scale culture, our looking company when stronger obviously model, do abroad to We move and we’re ready presents think excited would our operating that

and Americas, the Europe, in the are team opportunities. see with for we North Filipe America opportunities looking because as and actively, and So said, we similarities Brazil

Asia, it would if culture. happens, different it very a great. be it’s But

it small but they operations a the one year. relevant know So also them, better. There up. U.S. the liquidity are in step in healthy. in is And we use we Europe, an and will And believe targets, Moove’s that there go cash if in next position acquisition will that there would for And opportunities scaling more looking. we of are we very are will happen are hopefully in be areas are and it’s we to actively take

grow Moove, to going to where have will increase the going opportunities exposure we our we strong be in we’re and make to we’re that That its sense, And year. probably is been seeing next main So currency. goal. going that’s

Lucas Ferreira

That’s [Interpreted] Thanks. clear. very you. Thank

Operator

Hickey remarks. session. floor I question-and-answer This Mr. now Louisa his to the for you. will turn the closing Thank concludes

Ana Luisa Perina

have you in our in part for final had the by analysts. few were us. any chat the [Interpreted] additional box. answered please call. you a do given his turn questions, much over Thank I’ll This to answers do But for with remarks. if were it so is touch Luis in We’ve questions that taking Ana. They all in to the get

Luis Henrique Guimarães

for [Interpreted] to Thank you your so hear much questions. always great need clarified. might It’s you your questions, anything

As top we it but is room did are it. improvement for results, said, there of to on we comes we deliver when there,

teams that been our are holding to speaking, happen. very Structurally sure of All we’ve well. at doing make the working

growth, position and great for We assets. to supplying favorable on of distribution, and Not business ability our in so the renewables, agricultural have huge mention trends of a each to terms All world, our are forth. so very In It’s about carbon our to lot in our it rates high short-term, and a interest high when inflation partners. comes we costs a general. businesses and heard footprint, scenario. reduce rates, the complex high our

are. capture different any into to segments, we and and also settling costs any more make very and more look the a But necessary right player So will we’re that it us to see that we in and efficient at different chains, become excited speed. we short to bit the value the us see about value to adjustments But opportunities allow midterm. allows be conservative additional us with competitive opportunities a than to requires usually and prospects,

we continue to You will to will transparent. hear us, from continue be

posting of year’s guidance. delivering be much Thank in we you crop our teams result. year Raízen on and what all disclosed this So focusing so our care. will are take

Operator

Have you. a Thank Cosan’s call. This nice day. concludes conference

Cosan (CSAN) 22 Feb 222021 Q4 Earnings call transcript