CSAN - Earnings call transcript Q1 2022

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Operator

Good afternoon, ladies and gentlemen, and thank you for waiting. Welcome to Cosan’s Conference Call to discuss the results of the First Quarter of 2022. Today with us, we have Mr. Luis Henrique Guimarães, CEO; Mr. Ricardo Lewin, CFO and IRO; and Ms. Manager. IR Perina, Luisa Ana We would being English. this is you to and it inform recorded into that has event like simultaneous translation [Operator company. on this well currently me may Instructions] and management financial business let as forward-looking goals operating beliefs Before that are available and and statements of based prospects, mention and information be on regarding to as presentation that during on projections the the Cosan’s company’s made proceeding, assumptions

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

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

Ricardo Lewin

conference [Interpreted] our Good the CEO thank joining of you Ana first Henrique, for afternoon Cosan’s and manager. With Perina today Luisa Luis we call and quarter our have for IR XXXX. me earnings us

today's financial presentation with highlights operating each start and business. Let's of the

their is year listed reported our Our results concise, the with subsidiaries already and have very presentation since held calls market. the

a renewable we supply to in year. by And you the EBITA Raízen. the of plan performance of Raízen set slide sales, maximization on adjusted renewables, year gains the the result. in within number the In expand a this start clean our crop better as Let's the improvement new for supported X market. Since We boosted to and on with the aware, of closes for our are highlights and XX share with are record range XX prices energy. from quality all advancing I the significant focus operational will guidance strong

offset in closed as our one had in sugar, addition also pipeline another in three the announcements sales a commercial on Brazil by the crop share segments, services In XX% plants EBITDA carryover sales to XXXX affected XXXX and a the in of which the destination. were and for our Latin already ready EXG month, over well to and biogas the by increase and good XXXX. already maximize in direct marketing scale, across plant to network operating This be opportunities rise the operations. volumes, and price the scheduled all better of setback lowered profitability. to which continue with from With higher of to volumes important expand the partially coming America returns, seeking to and construction recent should second we In grew benefiting inventories the the

EBITDA number reduction sales to growth of incorporation & of in the Sulgás volumes a caused Meanwhile, as driven which quarter Compass was Sulgás. better by as Comgás from the red by expected X, by reflects demand weaker Compass slide the Let's The in shows maintenance results go of clients. This Gás slight offset shutdowns the at Energia. impact the from volume segment scheduled and was residential in inflation and well and the segments by growth the January efficiency automotive adjusted distributed gains ongoing by by the margins by consolidated operating addition at on. commercial industrial

XXXX. the basis. in challenge lubricant base Brazil. volume year-over-year was profitability the a sourcing recovery and Moove. since volume, you for pandemic, period despite cost by The decline now more of sharp in a on despite Remember in and Going economic that first the comparison continuous of after last see effective the results recovery sales number the months Moove's marked in strategy, captured strong pricing early to sales Meanwhile, X, improvement lubricant the slide it’s the year the evidencing pharmacy the control, leveraged was critical of quarter most can EBITDA demand especially represents scenario by

to talk reflects North of number the the efficiency the Transported soybean and the anticipation central slide of volumes the registered result quantity to go about season, operation. Let's strong Rumo. X operating the The growth ramp gains Corporation. in up network mainly

from As mainly offset so, expenses legged gains average higher year, Even Rumo of their fixed quarter EBITDA in in the enough costs reinforcing captured which quarter higher pressured to inflation a strategy. the aligned the capital centers the variable discipline. from wasn't margins tariffs last cost by the were market with and green result, diesel. in increase the share export part Meanwhile, marketing our first fell the company's

Moving X is Cosan. slide number of on, shows results the

discussed each expenses the of despite represented by solid [Indiscernible]. portfolio expectations with corporate the challenges. revenues our EBITDA in business, delivered were from [Indiscernible]. In was quarter mainly results leasing Cosan As by agricultural in line the at the land in the

startups which offset are companies basis on [Indiscernible]. and projects stage negative represent EBITDA other of The part pre-operational and combined a in the therefore,

due all businesses, EBITDA and net As affected of better grew component operating the the Cosan the forma in Cosan in CapEx a rates. expenses are was to mainly year-over-year highest Meanwhile, of by offset by due financial result, now Rumo. performance quarter Compass. rise higher income which interest by partially the and And Cosan's at Compass the consolidating paid lower -- at Biosev investments increased including pro

offset conducted growth came at the high the Port of of acquisition within gross the with installment entire ideal the slide which sales quarter and times were operating [Indiscernible]. These the registered easing. buy burn significantly operations group debt from of by to follow representing for funding XXXX half the highlights. with financial last acquisition shows year, supported XX The explained sequential improvements higher reflecting actions Raízen amortizations EBITDA nearly The by is the flow their expenditures at range group's important Rumo for the net in prepayment of debt cash and the to Compass, Meanwhile, two inventory. in We EBITDA bonds in group. the measured the at and by to reductions nine, months. partially Sulgás number liability effects second the last of first Let's our go in cash Santos

quarter. to like the subsequent to related the for reinforce events I'd not quality, Although

the shareholders of XX XXXX. dividends May distribution First, dividends That December. the million on in R$XXX in paid will April in for R$XXX in interim approve complementing be million the paid meeting

out debenture cash be Also replace billion maximum this [Indiscernible]. concluded such that one, for reported the through returns issue, R$X.X the Cosan's for XX total two the recent which XX also in and reinforce stock previous as the years. provides to and months. over We our was to position Remember, the to billion transactions in of for fourth acquisitions program other will replace years moves, approved raising series The one proceeds following of of carried was in six shares next May, monthly. of the XXX quantity part a new as shares buyback contracted operations repurchase used

our number up-to-date want some Before on during recent events I we in website. In to ESG our on XXXX. report, made read ESG slide agenda in the to sustainability invite go over published on our April, keep which is XX. report, available annual will progress readers journey our closing, I which the you

Compass businesses and will to also other addition soon made of reports Cosan, available. be report, the its publishes In

Raízen initiative encourage issue our in UN responsible and portfolio out We all social adopt the our to celebrated In carried companies global companies becoming its sustainability corporate to to first also to and X.X April made compact, the of by linked performance, signatories targets, sustainability linked the advance medium. risk R$ important improve Rumo assign sustainalytics, ESG ESG from high in debentures, which it to which billion of rating raised policies. it

translation. in our to want participate available are to again, be you questions. that And will presentation. which all XX, Cosan with my your all simultaneous invite And to I streaming clarify concludes you. Lastly, May on Day Thank we live

Operator

question from you will Ms. may [Operator Isabella Instructions] Q&A First now Thank is proceed. Simonato Simonato. you, our we session. start Ms.

Isabella Simonato

morning, question the holding at of potential is Good give compared when obviously, terms in Good Good what enough one reading the Ricardo. Good It's investments, a have, for not interesting dividend look about good debt the quarter because Corporate, you have Thank the payout, morning, whole call. company. and everyone. you to Luis. Cosan a to we year. I service of morning, afternoon, you actually.

So of more at you that you dividends receive that's in of can terms ask wanted see let us interest service with why level it expensive company equation could debt a versus holding to you that I the rates. the flow know how higher

investments other making mentioned year. do. there's from and more investments you'll there that things are this as be also But can well You CapEx buybacks as you also

a a as give us that So also, how float there's liquidity at update size question you're thinking Could Thank you about could issue that follow and you you overview how structure? on us up give an an Raízen. of you. seeing and

Ana Luisa Perina

call. this you anything necessary. help joining out is Please on for me add Lewin Thanks, you. Thank might everyone, think and

you was As know, presentation the short.

as we're the always. the and here room as and Lewin. your to well. to debt for answer address there's We're discipline can We've everything myself done sure buybacks make keeping So service questions that we same

As the you have We holding unblocked. continue can with approved soon subsidiaries our of as buyback noted, buybacks at will the company. level program it's we have and the the as

investments investment at of exception are holding terms the of there In no installments. level major payment radar the with the

we capitalization when and issues the and mining the and further the else is event ports down mining, next have concluded sorted. if In the everything terms line of quality is

at all companies has have been with generation the of other we ahead and CapEx us and level. growth in cash The very with compacts move Raízen Rumo good what that's XXXX. fundraising, So rest with of resolved the liquidity

with the right, want a And keeping always the we're of and very working look bio also is on commitments. at some something, they're We also serve, bought float that and we VX. shareholders liquidity, partners a something That to sales terms In eye careful. Raízen's on, that. shell goes the we're When time company. have we have by via at And XX% an company. that's may get

right make that you the So minus service we'll our opportunities and with it are CapEx we companies flow at addressed and would holding the all time. it's will an to the like receivables And company. portfolio radars Lewin our in debt done add opportunity, see the be sure anything?

Ricardo Lewin

Yes.

investments, point that do program. have the about pillars, Just first dividends company. holding we three new as said, was, and the have And we buyback at obviously, buyback share you the new

We in are open. have XX which million shares,

And back fact what at themselves. obviously, are at the opportunities, have these any We looking open, good company's TRS the opportunities also we have is if commitment and leveraging. buy that when we're the the we missing we're present do when programs

is at EBITDA. leveraging. it And two have low forget the we're times which that three concluded quarter and set at X.X, keep not we we as the those of but always We leveraging our let's fronts, what limit we always looking with very our

Isabella Simonato

That's very clear.

think net be please, in would drop a that follow be will corporate marginal? up, Just as that a Cosan considering Or there can equation, we debt?

Luis Henrique Guimarães

a additional disclosing level in not Now think we well, we're in it keep of about to and was was but is at let's what do the I the to our depth recently have. events terms issue we considering objective some guidance, the mentioned, I with obviously this of we but that, should management some leveraging, that do did debts other liability talked

be level will keeping we similar So a indebtedness. of

Isabella Simonato

great. Thank That's you.

Operator

Thank you.

is from Mr. you from proceed. Santander. question Banco Audi Christian, Mr. Next Christian may

Christian Audi

Thank as you, dynamics market I We you, Ricardo. Luis high the see a you, Ana. Thank Luis. have on. rate now a pressure Thank going whole. inflation question about

rest what pressure, been So can dynamics, and of like strategy you to which doing it to looks year. have will you your from this the this comes your I'd like sure inflation the when concerns to make face continue hear are for what

Luis Henrique Guimarães

also almost to It's is Christian. but we're doesn't discussing manager question, about that and make what -- the a a XX we that we're team companies, know with all a do we've what been in management about our our because world talked number any than ) topic And case that our decisions, meeting had and that concerns leaving who's costs. were competitiveness intending over. this best in also, at do, turnover and we've great this going to for around some some time. trained a inflation not for to the about talking capital and younger Rumo ability inflation do to you've really the our at freight Brazil, Obviously, allocation which Marcelo Raízen. liked, looking capital the long of key This the for passing only management increase case looking like sure of key is in been we attending been we're costs. That's of of we're

while a end as happening take to up sometimes the So but they market whole. they a happen, in

a our projects lot quality the shared of been on given investments, the procurements, over three competent items. So been last improving on developing increasing we've years our always synergy focusing and we've our that effort systems, putting among our how buy companies into

as we've relevant been security been So costs from been the savings. reducing And last there's We've IT ranging since avoidance capturing significant pricing. services, services, well.

not but the cost that just resources. operate consider opportunities allocation the competition on a sure the that's the So of the industry one we our make terms in CEO, return is for in priority, we in. number re-pricing thing for of for And with company, is of right everyone the investment compatible have we something that to

So priority. here one in to that's We're while. around to stay, this number a not our the Brazil, It's just world. stay is it's for here

competitive the allows can on to doing effects homework in as our long environment to we will whenever cost both margins mitigate to the activities, well cost business. and as I tell and these be the you pass projects, So us that accelerate recurring wherever term possible, our to

Christian Audi

Luis. you, Right. Thank

The a administration second is risk there be is that the question changing. might

you to government, like changes, any a make any is that more from some whether I'd harder. regulatory about industries concerned ensuing there if and are change hear So that businesses there you're in might

risk So do see in you sense? that any

Luis Henrique Guimarães

again, an this two looks once election Well, former presidents. between like

we seen be competitive we've whole. on thinking. that of in society impact through that been business a with direction We're And have something different that an more operate familiar terms the reality before it before. the We've industry It's to it. in industries a as it's in structural allows Brazil areas. with So is

at full. look a half we So glass

very any Brazil that planet's considering will happening. Russia So take it between despite There's also necessary. is the doubt position the is has a competitive and Nobody already challenges, de-carbonization. war the while. It's Ukraine, in global which relevant, a

additional a very because strategic Rumo And food is is supplier. Brazil so very it well-positioned, oil. main the good in has renewables, and position protein in

there's of great we're So, war risk a no polarization. in position,

most commodity outside go equation. value our the the are that to situation, up, from prices are but in A cases, and B when affected, companies obviously, obviously, add industry they these Moving internal that since to

logistics, directly credit, have the control I'm don't we impacted. land. own We not, We So assets, direct, lease. own don't specific over the land

terms relevant export any policies regulatory make which doesn't So as both interventions, us taxes, or be are and we in happen, issues, a there are in the of very pricing that a railway, sometimes authorizations, terms we of mechanisms, think and that's position because taxes, temptation. a If will can major that local artificial but import that's position. don't other no federal, in gas We're well-positioned well. exposed

We or [Indiscernible] also have our concessions in the network with Comgás.

the our risks. So reduced lots two of three last have things or that have these to happened exposure over years

really So that a problem. have or I don't will whether A wins think B wins,

a new But a commodities for I geopolitical, the around supplier all major and world. its opportunity position the see we that. to happening design as Brazil paying this think of to of great there's configuration obviously, attention great we're future in consolidate

It at the We legislative branches. levels come have the business where of heterodox usual the it's moment. as they're orthodox dialogue doesn't matter or a different ideas, they and it say matter doesn't I'd from. and And executive close with the whether

forward, be what's Along to a at a makes that on way, sides. move I towards different There operate in will happened believe world but so. two some that years, these on last with only the debate makes things instability. continue strike areas where are way, will forward, Brazil, diesel. very not do different opinions But are but the But federal sometimes solution sense. fact towards converge that It's sure, like they I back, tend the a state moving at and the look the There something positive. the we to over be It's cycle will to and direct it's evolving. governments one you most many If the will sense. and balance, step tax believe the least things steps things I'm correction

Christian Audi

Thank great. you. That's

as follow Just Ricardo. a to up

see buying Raízen you of do How some said give between Raízen us on terms that do Could by back how dynamics Cosan versus In shares? shares? You calls some buyback you mind you shares see on color please? buybacks? your that

Ricardo Lewin

Rumo This buyback this obviously a We by publicly Cosan Raízen. do did decision. worth buybacks we held the of is is Rumo, buybacks, decision million R$XXX share share and could Well information. financial

as models, see buy our returns to we have obviously. get and We opportunities we'll attractive

see we company, based attractive specific a buy returns models. on in whenever back So we our

Operator

you. Thank

Next from Mr. question from Suisse. proceed. Credit Marcelo Mr. is you Marcelo may

Unidentified Analyst

everyone. Hello, is up One good Ana. couple afternoon, for And on thank I have of about question questions. follow a a terminal. answering Christian's to Hi, the Luis. Congratulations Ricardo. my Hi, the questions. Regas petrol Hi, and results. gas you

adds You've value. already Compass mentioned that

volatility, given necessarily installed to you question had not successful, that see and But about it's and for the to molecule. or terminal thought the up prices, of be you price difficulties challenges of level running my what be linked And Compass. the to international do other originally? according any to So to be is

In have terms forward timing some authority Now subsidiary. deal? selling obviously, of terms you of it's moving Do competition the petrol. and gas and of the DOD you're in any of the gas update petrol

to strategy is make Or questions. potential in therefore, expansion question, some keep will you the network, of would you So model? it Do and network my my an that are have installed the Comgás already easier So those see implement the successful it places? distributing behind that? companies

Ana Luisa Perina

underdeveloped to always said I The an by operations. to healthy our XXX% an special it's acquiring Comgás that. weren't It's the divestment with in Janeiro. have it other in develop consistence. think of we said start second very do company keep We've because the And a that the players always other has to de I'll faster. of with assets in it's We've underdeveloped key because market market. Rio Brazil, It's operation and exception market, to the power. it's the distribution

cannot single make lots happen. of opportunities. there So But it are player one

consistence. about it's So

the make to deal regions have areas that the And have So model. other negotiation CADIS for negotiation, we is acquire also, to And the to we synergy the approval. that the deal and selected absorb most we'll obviously, and players makes our that pending sense ability and concluded. already sense

this to happen unrestricted of the should with That's deadline by left superintendence assess acquisition. end the approval. this CADIS recommendation So a not July. with It's

But the in optimistic the been is of CADIS terms by deal, it's decision but very approved of we're the sovereign, about So superintendents. it. approval obviously,

market to So the with rising agency might to need we'll them to anything any clarify Brazilian with demand. continue work questions and they and the meet to help provide the develop

Verde, your as the our obviously, we've component. have plays thing structural to first Comgás segue for all extension, network unique have the generation a the and key great portfolio. time. long So are Sao doing natural a a the These in assets question, few our at key been gas of generation the terminal extension look to and in Rio It's very extension, the same years, results last Paulo. They cash

years, us agreements of position, unit allow the a deal, So we it of local the six we're results all conditions about supply the price because have time. that trade. generation terminal The strategic grow few positions happy very a long which companies. that got talking month, consolidated let's all last have are we're deals, so flexibility, about important in IFRS done term these the and with Regas gas in the and and year commercial It's vitae to forget the good a will negotiation not that of these with of and the

it's competitive the years. more long costs assets now a because they term the But instance. if over the to a during we we positive But returns than cycle whole much be now want maximize that would were as it's starting are right these So for of we asset. have

and contrary see before position built position. the a So the any that I crisis, don't winning it's was Quite ahead. difficulties

year. of working in we need So first half deliver a terminal to the just next

help will energy matrix, results supply we're we the So will Paulo that position have Brazilian will key. of and confident on improve will the do we have will good suppliers, continue another help agreed to have Brazil within the to with our unique that we develop, which some clients, it and terms we in of gas to deadline strategy the natural market, is develop,

Operator

Thank you.

Ferreira Lucas Our from JPMorgan. next question is from Mr.

may go Lucas. ahead, You Mr.

Lucas Ferreira

afternoon. Hi, everyone. Good

far guidance. terms another Compass standalone So all decided acceleration expect can that, and businesses I'd we and in for terms for that well? both I Can it, Moove general XXXX understand as have of CapEx? to in a could be expect you. on businesses? terms As as both you've official in In as qualitative Thank acceleration other terms, see in you we general If what grateful. to comment CapEx the businesses

Luis Henrique Guimarães

over continue. are we and Moove down. will have few growth slowing that and see last Compass compound It don't Well, quite that years relevant, had the

the together whenever but in is opportunity over the to want been America business, a it's continue looking to North increase business required, we business consistent year, been fantastic secret years performing. for our step. Moove's company that how to for no LATM there's We've we've small are U.S. in grow. That's doing. international Americas, the brought in and So share soon we've grow hope We've to working that for assets. everyone. been will in deliveries both in The forward, what and to Europe, resources our it's growth, These we And few and news That's ready we have businesses for in with Europe. last had great that

match need of rights market have we just more. with We to even opportunity. growth won that the So a

growth you the gas our at divestments Moove; expansion assets to expect same end so, with and international presence. we of what an two divesting from continued the conclude acquisition, from that's can time. July, metros together and and At Compass, want acquisition So making continued by the hopefully

of and Sao as projects more terms And our replicating Paulo already we with will do model, start relevant Sulgás what expanding third already in which to forth. XXXX our seeing We're well have which in And connections as have benefits thermal do parties. to on results we'll terminal the future started Comgás so. so provide in so by with regard will network, is and residential successful so clients in

projects in the have will competitive us Third opportunity southeast. to give party projects thermal an

at be no potential the for growth is compass So will there we CapEx. regulatory CapEx and acquisition. then deliver change Congress And additional to Moove in continue

under continue And businesses. companies management the have CapEx So when part they we'll the for CapEx. regulatory are the partnership our the with are we'll also states that both with in coupled the new of

a substantial well. capacity And it growth don't payer. delivering, as if There's delivers a answered that's been growth your summary. huge question. So I Compass dividend and know they've is I good

Ana Luisa Perina

Hi, even thanks, Louise. This like are we listed add shares is on to results. something just stock Ana. though do our Compass' I disclose the not exchange,

disclose So the in EBITDA was X.X X X.X. It we this we billion. February and EBITDA X.X year, our did and CapEx expect EBITDA projections and CapEx for Compass XXXX is to for

these As the they for potential results operations. the Luis numbers are ongoing acquisitions. said, the But of exclude

Unidentified Analyst

point, That's Okay. great Ana. a

that Let it's important, things because me are the and of a consideration, each position of reiterate to of we the take allocation markets assets, capital unique on. especially into just these we with very consider regards competition and couple supply we so

clear it's re-pricing to and the and last with expansion XG moving cost Petrobras a about And the the I Rumo towards growth. in said Moove. for and at holding And company, that, was same terms to the everyone have applies market. I capital, now, at to applies years, a traditional itself same the as what position freight. the built in the crop, businesses model cost regulatory of few when same, stronger myself, So supply at of Compass right the avenue They look and of the and of Raízen

our this, around positioning, but strong. rate we going inflation growth, considering all strategic country's is very the at So and concerns the about obviously, on are when everything world there the look that's

are We a in strong position. very

Operator

ahead. question is Bruno Thank Mr. Mr. from you. Montanari The can next Montanari. go you

Bruno Montanari

another questions. questions, you a my answering I follow about about couple up allocation. capital one Compass and of Good afternoon. have Thank for one

down rates very you interest the you When expected allocation. to You timing better long natural would the you in in the in the of that midterm be improvements this you the start see going that are be be of fortunate volatility terminal reinvesting? when think because macro that rates high inflation had and Compass. do or a think terms capital when it might And gas might company to than were or Because economy? in you Again, at process. see commercial short might

I'd the think when again? So of what like hear you you'll you. Do start improves. the investing cycle? to At point Thank about situation timing,

Luis Henrique Guimarães

other main available I'll market risk The accelerator which because And start market. because regulation is in volatility the benefits. Traders price companies that to molecules to take the by than other much is side, risks had volatility. the side that are develop that Allows worried we attribute the the enough despite I having and on question. different means It's generation. world but thought our market price main Sao molecules market. have Brazil and and the price commercial about for short faster. love But levels. not to about your wouldn't the opportunity there the first there accelerator price Paulo, and supply is commercial the there or clients potential volatility in the on or no for on ability aren't it to in as better term are well the as so, have are happening it for market's clients the the companies. three What's demand

be our takes company for where We're It's issues suppliers, possible ministry, free focus have distribution make would me. as last on. the be time at small Comgás's lots a we molecule and the curve and via it because clients we doesn't factor productive. industry terms can expansion focus companies the is And very in the sense, but below molecule not that the of towards market so a cost as end limiting been we that the of share, the because as to That's can is highly an the blocking competitive agencies the curve access that. Second business of sense. the the are Not is as to share to market price happening of year, capital, price core have it's makes pricing the have is highly About the soon see instance, supply does develop. we'll where it an origin very volatility, goes there should many on sense different since of had efficiency, crisis, moment, And volatility opinion, before addressed. the of market this of and to issue as seeing Compass develop. having be can our acceleration market free favorable makes it second commercial competitive. cost because the of we question, by that's but of with your interests that the others And and do investment and unblocked, which our in talking in regulatory the we've that terminal, different been

return there's allocated see, a that do capital So strategic as that in investment But to to position. and there's key we projects places required. enough investing

Rio the with and companies Raízen Lucas Verde at the replication Moove's other extension acceleration So Europe biogas, the into gas at the of of Sulgás. Comgás's Rumo, model entry petrol

generate remain all businesses. level. have returns It's relevant will And advantage and can where about these responsibly, we So we see obviously that taking and worthwhile grow but conservative get will grow. allocated generate and to an not continue to are results see continue risks we to certain CapEx we they double at digit in to CapEx and ability it's will being assets competitive that where out of

Bruno Montanari

That's very clear. Thank you.

Operator

[Indiscernible] question from Mr. UBS. from Next is

You may proceed.

Unidentified Analyst

up rephrase the taking I good Luis, questions. question. Ricardo, I afternoon for of might couple Ana. a have my questions. Hi, Thanks follow

for you companies price in talked gas. was to had natural what I'd volatility, First, falling natural Petrobras gas, of presence as platform about like We strong with commercial natural gas market Compass short a see understand expected. how

of a the a So energy portfolio considering presented first contrast, years businesses? that's the opportunities in mid ago, was So question. what's my that new to long gas term, other for in or couple changed considering

see follow come The good that? has second Thank does we're at question there a to what is know it. You've expectation the company considering that it How group. to also Does said, the a discount And already ways the the question you is of to up the been whole do company considering a clear discount? company made an subsidiaries. this see few you. the buy levels I holding seeing? as at or moment different there's looking leverage buyback back How the to

Ana Luisa Perina

There the discount close They are we Brazil's the competitive -- by risk to this independent positioned the considering second dispute part holding to world, our very considerations. the that wrong. the should of quite the administration. market. around that's around going which portfolio lots and de-carbonisation well the to I'll are not advantage, from The all profitable are it's whether our because agenda world. our zero, We're are count of right of linked But uncertainties determined start it's simple. be by question, portfolio is assets or all see quality

current market So if market we market wrong is we'll pricing, sense, if make the check make sovereign. And they think or terms of at sense, levels, the but and prices. do they in is

what do we we will we So to do, deem we'll what to do important do. have

last we been most few all have We silent authorization be three in issues, to of continue years active buy the as we the papers; to the blocking the have opportunities. to make will but periods,

that discount or wrong. that's the And argue again? the whether was your it's is view the about the We're companies question second is from whether company. to market the Our or not What right the holding arbitration, thinks discount right. see we'll going that is current papers

Unidentified Analyst

the in long mid Compass the term. to

Ana Luisa Perina

where have to pipeline commercial first on in taken business model, replicate we've we conclusion project market always important other gas require with we because gas we regions Unfortunately, generation opportunities for and have petrol. projects. generate Comgás address we successful raised, not the the not investment hope thought we I was extension, divestment, to it's new in Obviously, Yes, and Compass's done. end core projects. and Thank will years, issues of address company. renewal our our comes in it's have you. when we the the ready clear. a projects. the of the gas ability at be and matches natural it to energy We'll continue San and also with short but Paolo few promises we geographical the be it It's and expansion that market which will ongoing, to Well, with steps deadline within if extension, arise. about of main The to our opportunities main was look gas to whenever last the the That positions operate. We've be investor evolving, lookout

And component, The distribution and see companies. the as robust. be high for we so gas efficiency. users opportunity distribution our balanced and which in focusing gas gas natural on of consumption with portfolio competitive, makes be important Our Brazil, Paulo is efficiency ethanol on offers, for of kilometers. industrial so great business there an a types a is efficiency more considering can Comgás current number portfolio that Sao opportunity focusing it's for but in will current With that of very whenever clients natural see is core It portfolio. terms than prices an balanced in we other the with heavy

focusing the we So been have on deliverables. main

relevant And coming the happy. them. the able the which with at We've levers us three very will few years. bring sheet. the these very that have balance next quality most. to with project We partners healthy we been divestment capitalize gives and in these deliver well, now over investments, They're We're to make us high components a want happy to company as

Unidentified Analyst

you. thank great, That's

Operator

Thank you.

Next from Citigroup. Barra question is Mr. from Gabriel

You may Gabriel. Mr. proceed

Gabriel Barra

for the Ana, taking Thank Hi, been my of have question. Lewin. Hi, questions hi you Luis, asked. Most

to portfolio the and of Compass. to one simplify to the steps You've been able will main simpler forward be your list make looking portfolio

partners to Compass. some you've said Luis As in price placement via brought

me to think correct the but to wrong, company. hard will to that say, I'm if resume continue. that that it's is, you question I be my plan? are So will what I but missing advantageous believe Please

volatile at very is moment. economy the the obviously, So

of on mentioned you delivered have the plans had that in some IPO. the You

would spot plan? with How So you. the be What from future? your sweet seeing I'd like hear to to you. Thank you're continue the

Ana Luisa Perina

fantastic below that such question. concession capacity, as what Paolo Raízen. investments listed Paolo as had terminal Cosan we XXXX extension see the privatizations Thanks energy to And fantastic, the market to that it of it needs that's a value the public. and companies the why September and with for position Having it in San positions open be and continue we the has the being That's listed continues been Compass renewables so Yes. went a and from in mix. part able is San of can be successful delivering so to to plan why our

sense that these So market to we mature. be to want have projects and makes a need

delivering time market at or Moove. that plan assets, projects But results good the have be will we're The for we allow can for reporting a be the results haven't understanding. the have better Compass our We concretely. have happening be when will this to It will have things reported right and been growing line. changed down us that delivered, project. And about

improve pricing listed. internationally with Moove find all partner plan need we'll be results. report more for become be we'll CVC together time. that able to and And is the expanding we And But to we're mature. then to right companies the needs four to our So

We haven't changed that plan.

Operator

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

Luis Henrique Guimarães

about future call, a line Thanks for the Compass, about Thanks We questions. of about your talk it we talked everyone. for a lot to Bottom Thanks, questions. Rumo's Thanks Moove. for us you've company. Raízen's Excellent the call. us. lot talked joining heard allowing

our be continue very position. strategic to with happy We

segment to or and competitive unique being have in with our which own when advantage We to are developed a main developed. opportunities their each players, be compared projects

plants have Moove its licenses. two it's expansion. doing final will The being built. biogas be have We EXG our plant We'll ready soon. international

are we can agenda, the to generate cost conservative of initiatives it projects that to do shareholders. our growth despite and attractive capital when being but return strong comes that allocate So to fact capital we

all We are our because completely focused growth is people. on people about

different geographies We with have Sulgás. people nine now in

but We it be to used strong business. our present in Raízen so are gas downstream, through presence

continue and and develop projects. our on our executing attract want pipeline grow to people, to people, people talent focused can we completely So so that we

how deliver think these very and can and energy commodities good strategic with to out support, journey. deal and so We're results companies benefit we in you I lead with come inflation, very as next your for year, in in position to Brazil the risk. to your kind that we our market. know with ability deal continue to terms with these how excited time that, you and or to results projects many and and able with to but the deal you and mix, excited global and trust. to will positions you to see volatility, in our growth very at but we're clean complex, country such non right It's a a from know of owing unique be of continue the replicable others that market to can We the our and I'll de-carbonization, so in know stronger in terms Thank scenario, quarter. actually can how that to very deliver complex on of ours, for a Thank have

Operator

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

Cosan (CSAN) 16 May 222022 Q1 Earnings call transcript