Cosan SA Q1 FY2025 earnings call

• Had around R$5 billion of EBITDA under management, net loss of R$1.8 billion, and net debt reduced to R$17.5 billion.
• Received relevant dividends from Compass. Interest coverage ratio was 1.2 times.
• Rumo had lower volumes due to crop season delay but increased average tariff.
• Compass had increase in natural gas volumes, better margin from residential segment, and deployed Edge strategy.
• Moove impacted by February fire, focusing on volume recovery.
• Radar had increased EBITDA from lease agreements and land sales above appraisal.
• Raízen had tough quarter with lower volumes in sugar and trading.
• Active liability management with R$11.5 billion raised, using proceeds to manage debt profile.

For the quarter, Rumo had lower volumes due to crop season delay but saw an increase in average tariff. Compass had an increase in natural gas volumes, better margin from residential segment, and deployed the Edge strategy. Moove was significantly impacted by a February fire, focusing on volume recovery. Radar saw an increase in EBITDA from lease agreements and land sales above appraisal. Raízen had a tough quarter with lower volumes in sugar and trading. EBITDA under management was around R$5 billion, net loss was R$1.8 billion, net debt closed at R$17.5 billion.

• Focus on reducing net debt, with plans for a healthier capital structure.
• Expect Moove to be in a better position by end of 2025 in terms of production capacity and strategy execution.
• Aim to have Cosan's HoldCo debt level closer to zero in the midterm.

• Potential impact on interest coverage ratio leading to covenants.
• Moove's fire recovery timeline and associated CapEx risks.
• Variable rates and tax efficiency considerations with preferred shares.

Q: About capital structure divestment process and Moove's strategy?

A: Rodrigo discussed Moove focusing on volumes, finding alternatives after fire, and capital structure divestment with ongoing alternatives. Marcelo added focus on adjusting Cosan's capital structure and monitoring Raízen's divestments.

Q: About Raízen's progress and liability management?

A: Marcelo said Raízen has good progress in changes, Shell is involved, and divestments including energy. Rodrigo said liability management will continue, with ongoing work on debt profile and preferred shares.

Q: About interest coverage ratio and covenants?

A: Rodrigo said interest coverage ratio won't trigger covenants, and focus is on healthier capital structure. Marcelo added focus on Cosan's HoldCo debt level closer to zero.

Q: About Moove's timeline and capital structure variability?

A: Rodrigo said Moove expected to be better by end of 2025, and discussed variable rates and tax efficiency in preferred shares.

Q: About Radar land sales and capital structure target?

A: Rodrigo said Radar land sales are ongoing, and aim for Cosan's HoldCo debt level closer to zero in midterm.