Strategic sales and operational challenges

Appearance date: May 16, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Cosan SA (NYSE: CSAN) recorded a significant reduction in net debt and closed the quarter with 17.5 billion IHS, mainly due to the sale of the Valley share.

• The company received considerable compass dividends and strengthened its position as a strong money generator.

• Cosan SA (NYSE: CSAN) improved his interest insurance rates to 1.2 -fold and positive through distributions from compass.

• Operating efficiency and increased average tariffs in the railway logistics segment underline the competitiveness of the logistics solutions of Cosan SA (NYSE: CSAN).

• The company successfully carried out liability management, lowered the costs and improved the due due priority of its debts.

• Cosan SA (NYSE: CSAN) recorded a net loss of 1.8 billion him for the quarter.

• The quarter was negatively influenced by a fire in the industrial complex in aur, which influenced the operational results.

• Lower volumes in sugar and trade negatively influenced the quarterly results.

• The interest cover rate is expected to decrease in the upcoming quarters, which indicates that further debt reduction is required.

• The company faces challenges in maintaining a balanced capital structure in the persistent sale and restructuring efforts.

Q: Can you present an update about the capital structure and short -term sales, especially with regard to the migration of debts in equity and the effects of lower interest rates? What is the strategy for the move after the fire incident? A: (Rodrigo Araujo, CEO) After the fire, Move has focused on finding alternatives quickly to maintain the volumes over the edges. The company carries out risk management strategies, including the move of some operations. The focus is on restoring capacity and treating care issues. With regard to the capital structure, we examine various alternatives to reduce the leverage without affecting our portfolio quality. We strive to improve our capital structure and at the same time maintain a balanced portfolio. (Marcello Martins, CFO) We are actively looking for solutions that go beyond sales and have made considerable progress in improving our capital structure. We do not consider selling significant operations on important assets such as compass or rubo.

Q: How do you see the recent performance of Raizen and its operational prospects for the 2026 financial year in view of the difficult circumstances of the sector? What are the plans for liability management and preferred stocks? A: (Marcello Martins, CFO) Raizen implemented necessary changes with speed and realism. The focus is on the core speed and returns, whereby significant sale is planned, including energy assets. We are optimistic about the effects of these sale on the dismantling. (Rodrigo Araujo, CEO) We were active in liability management, the guilty period and the reduction of the costs. We continuously monitor the structure of the preferred stocks for budget efficiency and are prepared to remedy them if necessary.