Cosan S.A. (CSAN3) Earnings Call Transcript & Summary

Good morning, everyone. Welcome to Cosan Day 2021. What a year since we last met in our 2020 Investor Day. We still managed to do the Brazilian event in person back then, but canceled the New York one. Brazil was, in fact, locked down by the end of that week. The original plan today was for a virtual event anyways, but we would have presenters in a nice professional studio. New normal, change in plans, again, quick adapt, health and safety first. So each of us in its own room praying for technology to behave. And yes, the show must go on. We did it in 2020, and we remain confident in our ability to keep on doing. So the agenda today is, and as we did in previous years, we start with presentation from our businesses, Raízen, Moove, Compass and Rumo in that order. And then Cosan, now 1 and only. Each presentation will be followed by a Q&A session with sell-side analysts joining remotely as well, but all participants are encouraged to send questions through the chat. We'll try and squeeze those questions in. Otherwise, we'll respond to you directly later on. All the presentations are available for download in our website. So let's get the ball rolling, and welcome Cosan CEO, Luis Henrique Guimaraes to officially open the event. Luis, the floor is yours, maybe the screen is yours. So here we go.

Thank you, Paula, and good morning to everyone. It's great to be here again. Unfortunately, it's been a long time since we could met in person. I'm sure, very soon, we'll be together again. But before we get on to the business, I want to pay our gratitude for the doctors, nurses, health staff all over the world that have been the real heroes in fighting this terrible disease, and they have been doing an incredible job and also the scientists that have developed the vaccine so quickly in record levels, proving that human beings are capable of incredible advancements when they work together, use technology and have a common purpose. I also want to now thank all the staff from the group. The gas -- the people in the gas fields -- the gas running in the cities in Sao Paulo, the guys on our locomotive network of Rumo, the guys on our plantations, the fuel stations, the pump attendants, the dealers, our distributors with lubricants. So everyone that not have stopped one moment last year and continued to do so to ensure that energy and logistics and food and goods are getting to the customers in the society in Brazil and all over the world. So I'm very proud of the team that have never stopped and have played an incredible role in terms of safety and playing again with all the health instruments. So team was incredible this year. So I want to start with my first presentation here. I just show you guys how much has been achieved in terms of our priorities that are nonnegotiable, which are safety, and we continue to perform in operational excellence mode where we continue to have very good standards in terms of LTIFs that have been measured over the last few years in all the business. We still have opportunities to improve. We're still working very hard and using technology, culture and behavior of people to ensure that we continue to see the 0 accident metric that would make us all very proud when we get there and continue to be there. We also have worked a lot on the social responsibility side, started right in March on no layoffs movement with other companies that maintained jobs in Brazil and elsewhere in the world, so that people could concentrate in serving the customers, maintaining the safety levels and concentrate in providing safe energy and clean energy and safe logistics and [indiscernible]. We also have participated in several donation programs to help the less affluent people in several fronts as well on the health front and have participated in incredible movement that has happened in Brazil for the elections at the end of the year, ensuring that every place in Brazil has ethanol 70 for the safety of the people that are voting and the people who are working for the voting to proceed. We also have very proud reduced emissions for our customers in Raízen, 5.2 million tons of CO2 equivalent and in Rumo, 2.7 million tons of equivalent which has been what we have been doing from expanding our capacity in Rumo and replacing gasoline with ethanol in our more than 7,000 stations across Brazil and 700 in Argentina. We also have invested a lot of time in improving our diversity. A lot of work is still ahead of us. But we had 2 new Board members in 2020. We are very proud of having [indiscernible] with us, increasing our ability to see the road with different lens as well as bringing a lot of experience in different sectors and in governance as well. We also have a big program including female talents into all levels. Still, as you would see on the [ plants and the company, ] a lot to be done. But we are really using that as a proving point in discussion on all our [indiscernible] with management, Board and our people [indiscernible] And of course, we have developed and delivered our simplification, that Marcelo will talk about in more detail later, also enhance our policy and invest a lot of time in improving our information security, with new people, new technology and [indiscernible] change in improving our culture and how it fits safety and security in terms of information and the way we're digitalizing this process in connection with customers and [indiscernible] So today, we'll be talking about the business. You'll continue to hear from us about what we have done. But more important today, we're going to concentrate on the future. You have on the material all the results of 2020, our guidance, et cetera, so Mussa, Beto, Nelson and Filipe will talk about exciting plans we have ahead of us. As Moove, our global reference in lubricants is expanding globally, you're going to hear a lot about that. With Compass platform, to be able to [indiscernible] gas-powered transformation in the sector that's happened in Brazil, and Compass is very well positioned for that. Rumo delivered cleaner and lower cost logistics that connects production to the world and how we're using that to shaping the future of energy and [indiscernible] sector. So I'm sure you're going to like the stories. You've got to have to just ask questions and hear from the people that are doing [indiscernible] are delivering very good work, and we are very excited about the future. So with that, I'm going to ask the film for Raízen to be played and ask Mussa to take the floor and continue. See you at the end of the event. All the best, guys. Have a good day. [Presentation]

Okay. Great. Hi, everyone. Good morning. Excited to be here. I wish we were in person, but next year, we're going to be there. I have a brief presentation about Raízen. You saw the video here already talking about a lot of the things that we have developed in our company. I would like to start here today talking about our new reporting structure. You're used to see Raízen as 2 companies, Raízen Combustíveis and Energia. And for quite some time now, we developed a new type of business that we like to -- to the reporting structure to reflect upon. So over the past years, I'm going to talk a little bit here on the presentation about what we developed on the renewable side, new technologies, new products changed completely the portfolio of products that we own, moving away only from sugar and ethanol. We have much more advanced portfolio now. We created, so therefore, the renewables piece, that's the renewables platform. The other change was proximity and retail, marketing & services, and also the sugar business. So that's a way that we have been running the company for quite some time now, and it's time to adjust the reporting structure for that. This is quite unique. I'm going to use that word a lot in my presentation today. And I want that to reflect in the way that we report. The presentation today, we have 3 -- the agenda is separated in 3 different topics, our nature, explaining what we are, our unique ecosystem to go into our better advantages and also talking about our future. Let's move on to our nature. I like this slide because it shows a lot about why invest in sugarcane. Of course, I use with my team here always the words that we are on the right place, at the right time, with the right culture, with the right company. And let's start with the right place. Talking about Brazil. Brazil has, everybody knows, a lot of land availability, the weather, sun, we have water availability, great export logistics helped by Rumo. And also the right culture. So sugarcane is a fantastic plant. That's a combination. If you see the potential of sugarcane to convert solar energy into biomass is quite unique. It can go up to 160 tons per hectare. That's comparing to corn that is 11 tons, comparing to beet in Europe that is 28 tons. So it's a fantastic plant to convert solar into biomass. It's one of the most efficient plants to do that. That's why we have the right culture, that sugarcane, at the right place that is Brazil. And we have the right company. Raízen is a company that has been formed almost 10 years ago with this purpose to transform the energy -- the market of energy. And this company has now 0 deforestation. We have certified 100% of our sugarcane. We have more than 60% of all the Bonsucro certification today. So that's the right company, with the right place, with the right -- and the right time. Why the right time? You can see on the bottom right here, the footprint that ethanol first-generation and ethanol second-generation compared to other sources of energy. So that's what the world needs. We are already in that moment with the right culture. If you go to the next slide, you see that, that's the -- let's spend a little bit more time on this slide. That shows the portfolio. We used to talk about sugar mills and that's no longer the reality. If you look at what we have done over the past years, we developed proprietary technology. So we developed second-generation ethanol. That's an amazing way of increasing our productivity without planting 1 single additional hectare of sugarcane. You can increase your ethanol production by 50% without increasing your acreage, your planted area. This is a proprietary technology developed even before when we started, Raízen Shell contributed into Raízen. The technology came from Iogen, from Codexis, from U.S. and Canada. We kept investing in that technology inside the company, and finally now, we are in the moment that we can deploy that in a much larger scale. So that's again, technology combined with the biomass of the plant, very unique to us. Cogeneration, that's something that you already know. We produce electricity from our plants. We still have a potential to keep growing that production for Raízen today. If you take our 26 sites, we only produce in 14 sites. We can go further ahead. Next year, we're going to have an additional one producing electricity. And also with Biosev now coming in, this grow even further. Biogas is another thing that is quite recent. We launched last year on one of our mills the largest biogas plant in South America, one of the largest globally. Again, unique proprietary technology. And the biogas is interesting because you are using a waste [indiscernible] to produce gas, and you can either convert that into electricity or you can convert that into biomethane and replace the diesel in our production site. So it's amazing because you are taking out waste and producing energy from that waste. So both E2G and biogas are new ways of transforming our biomass into energy. And again, this is proprietary done, and that's reality. People sometimes ask me, no, we are -- this is not for 10 years down the road. You can visit our plant. You can see the flare of the biogas plant. You can touch. You can see that E2G already up and running. We are selling the product at great premium prices. So this is a reality. Also we have the pellets that's a way, especially for Europe, to take -- move away from coal and replace with biomass that is renewable. So it's also we have approved our pellets in Europe this year. So now we are going towards really focusing on commercial trades to increase the pellets production. So this is no longer sugar mills. That's why we talk now bioenergy parks. It's much more than sugar mills. That's the old way of looking to that. If you visit -- for instance, our [indiscernible] mill located here close to Sao Paulo, that's where we have biogas. We already have cogeneration, soon we're going to have second-generation ethanol, even chemicals, talking about in the near future. So that became no longer sugar mills. Now we talk about bioenergy parks. And with Biosev in our portfolio, we have 35 bioenergy parks. That's the largest biomass portfolio globally. We control our feedstock, very different from other companies. We have our own feedstock, renewable feedstock. We have our own technology, and that's quite unique. So that's the portfolio of Raízen. That's what we are planning for the future. Next slide, please. This is just to show, and I like that slide because when you compare, a lot of companies are talking about okay, what we are going to be in 2050, in 30 years from now. So a lot of companies are still promising, and we are already delivering. That's the number. You can see that we have avoided 5.2 million tons of CO2 emissions per year, that was 2020. And that's just the beginning because we have with the E2G, biogas, other, even improving our efficiency that we have a lot to improve in our production. We can reduce the emissions, producing more ethanol. So that's -- I like to say that Raízen is today what other companies, what they want to be in 15, 20 years' time. And that's not something that we are promising, we're right there. So the next slide, you can see that's a very simple comparison. We see ourselves as a green champion today, not in the future. You compare like -- if you compare with Tesla. Tesla is a company that has all the advantages of being a greener company. What they delivered in 11 years of existence, we almost delivered twice the same, avoided emissions in just 1 year. That's the size of comparison. That's not something that we are looking for. And on the right side of the slide, you can see how competitive on the emission side, ethanol, the E100 is compared even to electric vehicles. So for decarbonization, for the energy transition, that's the product of the future. We believe in that. We see through the pandemic, the markets are going to that direction. You can see India approving, Europe, even U.K. going to more into ethanol, and we have the solution for that, and that's the reality. Let's talk more now about our ecosystem. If you see the infrastructure that Raízen have, it's quite irreplicable. And why is that? If you take the heritage of our company, we came from ExxonMobil, from Shell, from Cosan. It's the -- we -- those companies have been for quite some time in Brazil, so it's quite unique. You have -- we have an infrastructure -- we have ports in Brazil that -- we have been here for many, many years, 120 years. So we have selected the best locations, the best infrastructure. You can see the size of our terminals, more than 5 million cubic meters of storage capacity for fuels, 2 million-plus that's without considering BioSev of storage capacity for sugar, 74 terminals in Brazil and Argentina, 11 ports, 71 airports. We have a huge transportation, the fleet that's not owned by Raízen, but by our partners. That's the size of the company, and we developed a global reach. So this is quite unique. We use that. I give some examples. When I'm importing diesel, I'm using the same storage facility to export ethanol. So we can backhaul and improve the logistics. That's also quite unique for the footprint. On the next slide, you're going to see that what we have also is information. By being the largest company on the ethanol market globally, we have a lot of proprietary information. We -- if you see the size of our ethanol market, we commercialize almost 4x our own production. That's how attached we are with the end consumer; 100% of our production of ethanol we delivered to the final client. We know what's happening on their consumption side. We know what's happening on the production side. So we are on the short -- we have the short, we have the long. So this is quite unique sight of information. We have on the sugar, the same thing; on the power, the same thing. On the right side here, you can see what that means in numbers. So we have been able to price our sugar better than the market. We have been able to price our ethanol much better than the market. And also, you see that how we are translating our competitive advantage of the fuel sector compared to the market on EBIT. So this is a translation of how we are monetizing our unique ecosystem. We are integrated company with a lot of information that we convert into good numbers, into good results, right? Talking about now the proximity. We formed -- this a very simple slide. I want to emphasize here, our partner. We have selected the best possible partner to increase our proximity retail, the strategy. What we have done here, we have decided to go really deep on this agenda. Why do I say that? We tested a new model. So we went into some regions in Brazil, and we tested a new model that is we are going to control our own supply chain. We are going to test the proximity outside of the gas station. The results that we had over the past 6 months was unbelievable. So this is supporting us that now it's time to speed the process of growth of the proximity stores. And we have the right path. The Femsa Group is one of the largest retail companies globally. They know how to handle logistics. They know how to handle operations. We do have a fantastic business plan already with more than 1,000 -- today, it's more than 1,200 proximity stores, and we have the potential to go to 5,000 very quickly. So this is the proximity. And on top of that, we have the digital. I would like to share here the evolution of the Shell Box platform. This is unbelievable. The growth is exponential growth. In less than 2 years, we have more than multiplied by 10, the penetration of Shell Box into our service station, and that's just the beginning. This is quite unique. You have access to 50 million customers every year. That means that 25%, almost 1/4 of the Brazilian population goes into our service station every year. And the Shell Box is a great platform to get access to this customer to do cross-sell and upsell. Whenever there is a customer that use the Shell Box, have a much better sales of -- V-Power sales improves. We have a better ticket, a higher volume, higher throughput and loyalty from the customer. And this is growing exponentially. We are talking about more recently. Every month, we are beating the previous months, even in the pandemic. So this is growing exponentially. Can you imagine what we can do that with the proximity on the retail with OXXO brand on [indiscernible] moving with this platform into Argentina, it's very easy now that we have built a platform to do that. So a lot of things will come from the Shell Box platform. This is already set up. It's a reality. It's moving, and the trend is really, really good. So we are going to start collecting the benefits of that very soon. Talking about our future now. The future of Raízen, if you see the history, of course, we moved from BRL 3.7 million when we started the company in 2011 of EBITDA. We are going to deliver next year roughly around BRL 10 billion. So that's an amazing growth. And that's just the beginning. Really, if you look what we have to do on renewable space with second-generation ethanol, with biogas, there is a huge growth potential on the renewable side. We are going to increase efficiency. We have already -- I've shown that last year an agenda of efficiency on sugar and ethanol on the production side. That we already delivered part of that this year. More is coming next year, huge path to grow efficiency. Proximity as I said is going to grow. We are going to expand our products value chain. Sugar, we are going to the final customer. And we are increasing the digital. 70% of the growth of Raízen for the next years will come from renewable products. That's amazing, how we are transforming the company, and it's coming from renewables. So it's a very strong growth platform and really based on renewables. We have here the 3 competitive advantages that I'd like to talk about them briefly separately. We have a very powerful culture. People ask me, what's Raízen? We were formed with taking the best of our shareholders. We took the Cosan entrepreneurship, the commercial savvy of Shell, going on commercial side, the efficiency of running a [indiscernible] we combined that, we created a unique powerful culture inside Raízen. We have, as I said, an integrated ecosystem. It's our's proprietary, very unique. We are from [ soil ] to tank, we are fully integrated. And technology, that's something that we don't talk much, but E2G is a proprietary technology. Shell Box is a technology. We using analytics. So all this technology inside Raízen. When you combine those 3 things, that's what I call Raízen model. It's very unique. That's very -- it's irreplicable. No other company you can see out there have what we have. It's a very unique combination that creates what I call Raízen model, and that's for the future. And finally, just to finalize my presentation, that's the message that I want to convey here today. We are truly today a global green champion. I don't see any other company that could match what we are doing. I'm very proud to be -- I tell to my employees every day, we are on the right place, on the right time, with the right company. And that's today, that's not for 15 years from now. We have a very strong financial and fantastic execution track record. If you see what -- we are recognized by everyone that what we promised, we deliver and we are always with a very strong financial and very disciplined. You can see on the acquisition of BioSev how disciplined we were on taking that move and the strategic fit of that particular move. And we have, in the end, an unmatched growth pipeline. Amazing what I'm seeing the potential growth within the company. So I think the agenda of Raízen right now is growth. We are seeing the market going toward our direction. We have really evolved on the renewables agenda. We are on the right place, on the right time, with the right company. Thank you. Let's open now, Paula, to the Q&A from our guests here. More than glad to answer the questions and talk to the public here. If someone wants to send the questions, I'm more than glad to answer.

Okay. So let's start the Q&A session. As I said, we have 2 analysts invited, Isabella Simonato from Bank of America, Thiago Duarte from BTG. So Isa first, that's alphabetical order here in all the Q&As, so that we don't have any issues. So Isa your question first.

Congratulations on the presentation. I'll start exploring a little bit more about the renewables, right? It was interesting, Mussa, you said about that 70% of the growth, right, should come from that. Can you explore a little bit more each of the segments, I mean, in terms of the biogas and the ethanol, second generation. What is the potential of each one of them through all time?

Yes. If you take the -- let's start with second-generation ethanol. This is a product that we have no issue on the demand side. So it's a hot product today. So last year, when we started this -- the production or the -- our season in April, we sold the entire production. In less than 11 days it was already sold. And today, that's exactly happening the same thing. And the second generation, the potential of that is not only using inside Raízen, but we can export the technology because the technology is proprietary. We developed. We own the technology. So if you see, today, we are discussing, first, to increase our own production so we can use that to produce more second generation ethanol in our own sites. We have a lot of that even if you include now BioSev. But now also as well we can export the technology. So we can go to countries even if that country is closed for Brazilian ethanol, it's not closed for the technology. So we can charge royalties. So the growth will come first for additional plants. And of course, a very disciplined approach on our side. So we want to guarantee that we have the contract in place to build the new plants. That's the strategy here. And that has been not so easy, but it's going in a very good direction, getting very nice contracts, very long-term contracts. And the second phase is exporting the technology, exploring that in other places. And this even our shareholder Shell is helping us to find a way of how we can do that. The question with E2G is that it's unique from Raízen. We own the technology. We have the biomass and we own the technology. So this, for me, is a great potential. Biogas, it's a little bit different. Biogas, it's something that the technology is not -- it's proprietary, but it's difficult to use the technology elsewhere. It's really focused on [indiscernible] Today for biogas, if we convert the biogas into electricity, then the market is easy. There is no question about the demand. You can convert into electricity. But the real goal here is to go after replacing diesel. And why that? Once you replace diesel, you reduce the carbon footprint from [indiscernible] including second-generation and first-generation. So there is on top of, if we can replace diesel, you have a saving for biomethane and also you have the advantage of reducing our carbon footprint and get even better prices for the other products. So today, the focus is let's go -- the easiest part is to sell and convert the biogas into electricity. And we can do that in not only 1 plant. So that plant was -- we tested. It was a huge success. The [indiscernible] is working. So it's -- now it's the time to progress and start converting other plants. The real goal here is go after diesel and use that into our own fleet and reducing [indiscernible] So those 2 examples of growth in the renewables. There are also, that I didn't mention in my presentation, the power increase. So we are using a lot of [indiscernible] touch with the customer to increase our presence in the power segment, selling more electricity. We have WX, our trading. We started to move towards distributed generation. We have already several solar plants in place. So we are extracting value also from the power, but this is more on the early stages. Probably on the next meeting, we'll talk much more about power development on the renewable space.

Okay. Now Thiago?

Yes, I wanted to touch base on one of the aspects of Raízen that I think has been the most challenging one or one of the most challenging ones for us in order to estimate going forward, which is what we used to describe as the third Raízen and now you're describing in your presentation, Mussa, as being the Raízen ecosystem, right, which is unmatched. And I'm specifically talking about the opportunities when trading third-party products, right? So you guys are trading a far higher number of volumes of ethanol and sugar and energy and even other products than you guys produce. So my question, Mussa, would be how you think the market should approach that specific business unit inside Raízen? Or maybe in other words, is there like a benchmark or other companies that you guys use as a reference when you're building up your ecosystem? Or whatever else you can provide us to help us understanding how much value that trading business can add to Raízen on top of the production and sale of your own products?

Thank you, Thiago for -- thank you for the question. We -- I don't like much of the word trading because when you see a lot of traders out there, they are companies that don't have assets. They don't have the physical flow. When we talk trade here, maybe the word that -- that's why we like the word marketing and services. Because I'll give you the example on the ethanol side. Not many people know that. But when we produce our ethanol, we -- very few of that ethanol remains in Brazil, we export. And when we export that, Thiago, we do the logistics. We have tanks in Philippines. We have tanks in Colombia. We have very -- not commodity products, we are selling a service to our client that combines everything. When you have the volume and you are your own your production, we can really have control of the value chain, and you can distinguish ourselves. And that creates a unique system. I don't like -- we don't speculate. We don't do -- okay, I'm betting that the price -- no, we are really using our knowledge to know when is the best time to buy, when is the best time to sell, to create a system to our final client that is quite unique. So of course, Thiago, we never gave too much openness to the market about this because it's proprietary. A lot of that information is confidential. So obviously struggle a little bit to share what we do, how we do because this is really proprietary to us. This is just to give you -- I don't know if there is good comparisons out there of that. Never compare us to trading companies because we have assets in place. We own the logistics. We are a producer. And if you take, for instance, my relationship with Coca Cola, it was a producer and not a trading company that is going to buy. I can guarantee where my product is coming from, if there is a certificate, if my product has been built with all the renewables in place with all the social part in place. I can guarantee the logistics. So that's the trading piece. And of course, when you have that organization, Thiago, it's -- it creates other opportunities. You -- I give the example, today, I was talking to my team this morning about seeing what's happening right now on the consumption of ethanol in our pumps. And we know on the other side, what's happened in our production of ethanol. [ Nonetheless ], if you want to use my knowledge to hedge your position. And that service, that's why I like the word marketing and service. But sorry, Thiago, I don't have any comparables to help you on that. I think over time, you need to begin and see how our average price above the market, how much value we are delivering to embedding -- because this is not -- it's structural. It is not something that we take advantage when the -- oh, this year a lot of volatility, we are making more money. No, it's a structural marketing that we do. Hope I answered you, Thiago. Sorry, I didn't give you a clue how to make your calculations, but that's the best I can do right now.

Okay. So we have one question from the audience. It is from Lucas from JPMorgan. So Mussa, can you give us a little bit more detail on the initial rollout phase of OXXO in Brazil? Have you revised the store opening speed due the pandemic, what's the situation, so on and so forth.

No, great question. Lucas, thank you for the question. First, it was a building year for the Grupo Nós for the retail proximity. I think what I can share right now is that the results that we are getting per store are much better than we anticipated. So there is a proof-of-concept that we had at the beginning, and it worked. It worked beautifully even during the pandemic. So we didn't change the pace of growth. So we are speeding up. We selected the city of Campinas. That was the testing place for Grupo -- for the OXXO. And it was really fantastic. So right now, it's -- I'm pushing hard the team to speed up the process. Of course, the pandemic, we took a hit on the sales, especially on more on the substations because that's where -- it's a different type of -- when you reduce the amount of people going into service stations, you reduce the sales. But on stores, on the same stores, the new profile of the select stores that we put in place last year was really unbelievable, and it's moving towards on the right direction. On OXXO alone, in Campinas, the proof-of-concept was really good. Now it's time to push the turbocharge button and move ahead. So we are very enthusiastic about the future of that. So it's in good shape.

Okay. So thank you, Mussa. Our next presentation is Compass Gás e Energia, and I would like to invite Nelson Gomes, Compass CEO. And Nelson will update us, as Luis said, about that company that aims at transforming the Brazilian gas and power industry. Nelson over to you.

Thank you, Paula. Good morning, everyone. Glad to be here with you once again, and for the second time now talking about Compass. What I want in this presentation with you today is, first, to go through our view on why natural gas is important and strategic to Brazil. Second, I want to provide you a market fundamentals update that we will reinforce our investment thesis. And third, I want to share with you what we've been doing at Compass. So let's go to the first slide of the presentation and explore a little bit more why we believe natural gas will continue to grow. In our view, natural gas in Brazil is not only a transition fuel, it's also a strategic source of an adverse energy maintenance. Natural gas will enable both renewables growth and economic development in our country. So let me highlight 3 different ways we see contributions from natural gas. Starting from the left-hand side, Brazilian power system is growing and will continue to grow, with an increasing share of different renewable sources and combined with a limitation on the hydropower generation side, as you can see in the chart, that will keep adding more and more intermittence and seasonality to our metrics. As a consequence of all of that, the gas-fired generation should play a strategic role balancing the power system. Natural gas will offer, at the same time, stable, competitive and flexible energy. One of those sources that can be easily dispatched to supply any big demand. Second, on the middle of the slide, you can see natural gas has the lowest carbon footprint among fossil fuels. Over time, it has been replacing other fuels by different customer -- used by different customers, and reducing CO2 emissions. Looking at natural gas for power generation, the EPE, Brazil's Energy Planning Entity, estimates an additional 8 gigawatts of capacity to be run with natural gas in the next decade or so, most of them replacing other fossil fuels. Finally, we believe gas resources in Brazil can foster economic development. If we simply look at the amount of gas we injected in production fields last year, it represents 1.5x the total gas distributed in Brazil. Or other way to look at it, it represents roughly the power capacity of one Itaipu, the world's second largest hydroelectric plant. Gas production is growing, reinjection is set to grow even further. So if infrastructure is not available and demand is not developed, that will continue. So now that we understand why natural gas will grow in Brazil, let's talk about market dynamics on the next slide. So let me let me brief recap you what I have shared with you last year as an outlook for natural gas in Brazil. It's abundant supply, both globally and locally, and a number of initiatives toward the gas market opening. Dynamics keep evolving, and I can share with you a few examples. On the implementation of TCC by Petrobras, what we've seen, agreements for natural gas offloading in processing from south. We've seen Brazil, Bolivia pipeline capacity relieved through a public tender, which will now allow volumes to be procured directly from Bolivia to the free market in Brazil. We've seen divestments on the gas transportation companies. And finally, we've seen the divestment process in Gaspetro. On the regulatory front, we continue to discuss the new gas bill or project related to gas, which was sent -- which was set by the government as a priority for this year. These are also -- there are also a number of other initiatives. If you look at state by state, trying to develop the free market with different actions with different regulatory agencies. Now on the market activities, we've seen local distribution companies, both on the northeast of the country and the south area of Brazil tendering for natural gas. We've seen private players being approved, both to import and commercialize natural gas in Brazil. And finally, we've seen an entry of new players in the gas and power sector in our country. So all of that to say, our view on the development opportunities in the Brazilian gas segment seems to be well supported by everything that is happening in a number of different fronts. And although we recognize that any market open is not a linear or a smooth process as we can always have learnings throughout the way. The direction from my standpoint is very clear, and Compass is well positioned to help make it happen. We believe we can create and share value through a unique business model, which I will cover in the next slide. So turning to the next slide. This is how our business model works. It's an integrated platform of assets represented in red and contractual positions represented in white. We have started in the Southeast area of Brazil at a center of natural gas supply and demand. It is a hub for existing and future gas infrastructure with demand opportunities in all segments. On the supply side, on the left, we look for different sources and volume flexibility using existing infrastructure, but also developing new when and where we need it. Locally in Brazil, our model includes procuring gas from domestic producers to be offloaded, processed and transported using existing infrastructure. But in the future, Route 4 should also help to unlock even more domestic production. There is also an opportunity to procure gas from Bolivia also using existing capacity, the Brazilian Bolivian pipeline. LNG, it's also key to our portfolio, not only in terms of access to competitive molecules from outside the country, but also for the flexibility and optionality that our terminal will offer to our customers across the country. On the demand on the right-hand side, the key here, it's customer access, behavior, knowledge and trust all of that built over time. We created our gas marketing business to develop different markets to access local distribution companies and also to access gas-fired power plants. So when we look at the developing or acquiring assets on this platform, what we want is the opportunity to promote the demand growth, access competitive molecules and add both flexibility and optionality to our portfolio. And in line with our capital allocation, it's a tradition already inside the group, the discipline that we have. Each one of these projects, they all need to generate their stand-alone returns. So this is the model that we have built around our own intelligence and expertise inside companies, connecting supply and an increasing demand, driving market transformation in our region, in Southeast region and across the country. Now let me go through the different business lines within Compass and share with you some more updates on each one of them. So this slide shows you the 4 business segments in Compass we have: distribution, gas marketing, power generation and infrastructure. Now go to one by one. So next, on the distribution business line, we are looking for geographic growth in a way that we want to replicate what we have done in Comgas, increasing the customer use and access to natural gas. As we already made public in a material fact recently, we are in the binding and exclusive phase of Gaspetro divestment process. We are as of now negotiating the sales and purchase agreement with Petrobras, the SPA. And if we are successful in doing that, we expect to submit this deal to the authorities in the next coming months. If that all works, the financial close of that deal should happen sometime, I would say, first half of next year. Now next slide, let me give you some more details in Comgas. This is an asset that you already know for quite some time now. Comgas keeps performing very well over time. Safety in our operations continue to be a top priority. And even in a pandemic year that we faced last year, we're still facing now, we have managed to add new protocols to our day-to-day activities and keep our standards at highest levels. As disclosed earlier this year, when we published the last fourth quarter results, the results were very strong and we are now dedicating focus on efficiency and customer experience, taking advantage on everything we learned from last year. And as the market grows, we are accelerating our digital journey to improve the way we interact with our customers, to enhance their experience and also to keep improving our internal efficiency. Now supported by the current regulatory plan, we'll keep growing -- Comgas will keep growing. What we will see in the coming years is exactly what we have already seen in the past ones. To give you 1 example, last year, we connected more than 120,000 new customers through a very strong pipeline build around market intelligence and using that, we'll keep pushing for more growth. And just to add 1 more example here, last year, we connected 20 new buildings every week. So this is Comgas, a strong growth potential, a successful model that can be used and can be replicated elsewhere as we plan our expansion into other distribution companies. Now next slide, back to our business lines. In our gas marketing business lines -- business line, we are developing a strong portfolio of gas supply auctions in 1 side and customer relationship in the other side, always looking for opportunities to integrate both gas and power markets. On the demand side, we are first in advanced negotiations with a number of potential natural gas free customers, helping them to understand the free market; and second, participating in the tenders to supply LDCs, local distribution companies in Brazil, including Comgas. Now on the gas supply side, we continue to negotiate with different producers in Brazil and Bolivia to secure volumes this year and the next one, and I'll talk more about LNG in a few minutes. As for power market and trading, our focus is on long-term deals and long-term relationships. Specifically on power trading, the team now is working to maximize value by taking positions with an establishment date and at the same time to support the buildup of our go-to-market strategy. Power generation, as we believe, it is a way to anchor demand and create optionality between gas and power. Compass is assessing different opportunities with different partners, taking into account the different profiles, different projects in terms of location, infrastructure availability, and gas supply alternatives, but we believe we'll be ready to participate on the next auction. Now for the infrastructure segment, I have no major updates on Route 4. We continued to invest on the licensing process of Route 4. This is still an asset that we consider strategic to unlock additional volume or additional gas production volume from the pre-salts reserves in the future. So now let's focus on the LNG terminal on the next slide. Our LNG Regas terminal in Sao Paulo, as you know, is located right next to the demand center, offering our customers another alternative, another source of competitive, flexible natural gas supply with an access to the LNG global market. So it's going to be the first link Brazil will have with the international LNG global market. This terminal will be the first in Brazil to deliver that, and we believe it can both accelerate the free market ramp up here in Brazil, and over time, can also serve a strategic buffer to balance domestic production and local demand. So where are we on the terminal? Terminal is now fully licensed and ready to start construction. We expect the terminal to be ready by the end of next year. We are now discussing the final agreements on the construction side and on the operational side. And on the supply side, the gas marketing team is concluding now the negotiations with Total Gas & Power, which will be our LNG supplier. The deal with Total will be comprised of fixed and floating volumes with different indexing options in terms of price. This will be a major milestone for Compass. It will add flexibility and optionality to our supply portfolio. Now on the next slide, worth to mention, always, to develop all this portfolio, the most important asset we have, it's our people. In the last few years and months, we have put together a first-class team with a combination of talented people developed in Comgas, and we brought other stars from Cosan and from the market, with a culture that puts together, at the same time, a strong performance and entrepreneurial attitude. I can tell you that our team now has a track record in all segments: distribution, gas and power sales and procurement, power gen and infrastructure. All of that, I can say, with a particular culture and mindset. We call it a beyond utility mindset, which means it's a customer focus and a partnership-oriented mindset. Now next slide. This is what we believe it's our unique and balanced portfolio. As you may remember, our journey into the gas business started back then in 2012 when we acquired Comgas. Comgas is a great asset. It's run by a great team, and that almost doubled its results since then -- since the acquisition by Cosan. At the same time, we were increasing our stake in Comgas, and we did that in the past years. We also started to position ourselves in other parts of the natural gas value chain. I believe that the gas market would evolve and that we could be a leading player on that transformation. This figure on the left illustrates our value creation journey for Comgas, with the various building blocks that we are developing or adding to our portfolio. Comgas, as you know, will keep playing a relevant role generating cash and yield, expanding its network and serving as a role model for other gas companies we may acquire in the future. By replicating what we've done in Comgas, we can provide customers with affordable, competitive energy, replacing other fossil fuels and increasing demand. And as you know, natural gas can also be developed -- the demand on natural gas can also be developed through the power generation projects, which in turn can become an interesting opportunity to integrate gas and power business. Infrastructure, like the LNG terminal, we just talked about, and later on, the Route 4 pipeline, will also allow customer access to competitive and flexible molecules. And finally, a gas marketing platform that will leverage our strong customer relationships and, at the same time, manage optionality and flexibility in both supply and demand sides. All in all, this is what I believe how our portfolio is expected to look like. It's a balanced portfolio in terms of risk return profile and an ambitious portfolio in terms of value creation opportunities. Finally, this is my usual last slide to recap the key messages I just covered in this presentation. And first, our belief, natural gas has a strategic role to enable energy transition in Brazil and foster the infrastructure and the economic development. There is now a great opportunity in terms of abundance of gas and a wide view on the benefits of the gas marketing opening. This will promote more competitive and a cleaner energy growth in Brazil. Our business model was carefully designed to lead the gas and power market transformation with a balanced portfolio that combined yield and growth. So those are the slides I wanted to share with you today. Let me now leave you with the Compass video, which will demonstrate our purpose and our commitments to the energy market. And I will be back with you for the Q&A session. Thank you. [Presentation]

Okay. So let's move to the Q&A session. Before we do that, let me thank you, Isa and Thiago from the previous Q&A, which I forgot. And also let me let you know that all the presentations, both in Portuguese and in English, are available in our website. So for the Compass Q&A, we'll have Antonio Junqueira from Citibank and Gabriel Francisco from XP. And first question, we start with Antonio.

I want to make a question. Actually, some questions about Gaspetro. You've already mentioned you're about to sign the SPA, and you already gave an educated guess on the timing, so you already took some of my questions. So the remaining questions for Gaspetro would be, if you anticipate any risks of the coming of the new management of Petrobras on the asset sale program, specifically on the Gaspetro transaction. Also any update on Mitsui's perspective in regards to the asset? And the third one would be, if the company is preparing the offer in a way that it might please the antitrust department or if the company would just go with a formal offer to buy all the stake without divesting from any asset and will, as a consequence, wait for any perspective of the antitrust department? Last but not least, the company has been doing a great job at Comgas. Management is great. And how do you expect to replicate that expertise from Comgas management into Gaspetro considering that you have multiple partners in Gaspetro, right? That's it. I know 4 questions on the same asset.

That was a long list of questions, but thank you. That will have -- that will give me the opportunity to talk more and explore more about Gaspetro. As I said, we are at the exclusivity phase with Petrobras, and we are negotiating the SPA. We've been doing that for a long time now. And answering your first question from what we've seen so far from Petrobras, we haven't seen any pushback on divestments on their side. Let's remember ourselves that this divestment program is something that it was sponsored by the antitrust authorities, by the national petroleum agency, and also by Petrobras itself. So I don't believe that a change in management would do any change on that program long term, okay? On the Mitsui side, what we've seen so far, they are, of course, interested in knowing how we manage our business, how we manage our assets. Mitsui is already engaged with us. We are about to start a more formal discussion on what we are planning to do if we succeed in having a deal and plan the day 1 after we close the deal. So Mitsui, it's already engaged. Talking about the antitrust authorities, your third question, we already have from the TCC, from the agreement that Petrobras made with the antitrust authorities and the national petroleum agency, we already received from the -- from CADE a clearance. So we were okay to proceed given the roles embedded in the TCC. Now the operation itself, CADE will evaluate when the time comes. So we'll sign the agreement and then we'll submit to the authorities. And then the authorities at CADE will have their time to analyze and give back their clearance or not, which we expect will be granted. The clearance will be granted by the way we have been managed the business and the way we build Compass. Your last question, on how to replicate. I think we -- Comgas has been successful on delivering above the average performance from last years. So if you look at our track record, it's a recognized track record by the market. So I don't anticipate any pushbacks from any of the other partners of this Gaspetro shareholding structure, not letting us do what we believe we can do above the average. So we will use our knowledge, our culture, our way of doing things, and especially, our scale to negotiate, for example, with service providers and with suppliers. So this is the way I believe we can improve the operational side of those other distribution companies in Gaspetro.

Okay. So Gabriel?

I have more than 1 question, but I'll stick to 2. I would like you, Nelson, to explain further what would be the potential unlocked by the upcoming hopefully, upcoming approvals, the new natural gas law in the Brazilian market? And the second one is related to that, what are the low-hanging fruits in terms of new types of customers that Compass -- especially regarding gas marketing, that Compass is targeting, which kind of customers, for example, Brazil, vis-à-vis other countries is not reaching today. And what would be the blue sky scenario and a more, let's say, other stages scenario for targeting these customers? Those are my questions.

Gabriel, thank you for your questions. The first one, the potential -- what this new gas law can unlock market potential. The way I see it, the new gas law, it's in the right direction to promote a market opening. From my view, it's not perfect. We cannot expect to have 1 market opening that is currently a monopoly to -- and we build a law that will in -- all at once deliver all the answers we want. So I don't believe this law is going to be perfect, and we need to see that law in place for a couple of years until we feel that we need any adjustment. But all in all, I believe it's -- again, it's in the right direction to open the market. And it will unlock potential. It is already unlocking some potential. We've already seen Petrobras opening some space in the Brazil, Bolivian pipeline, for example. And this is already promoted by all this movement that the government is doing and Petrobras agreed with that in opening the market. Now on your second question on low-hanging fruits, as you may know, for example, in Sao Paulo, in Rio, it's exactly the same case. But to talk more about Sao Paulo. In Sao Paulo, we have the free customers' regulation well-defined since 2012. And these customers, they never had the opportunity to buy natural gas from different sources, not because of Comgas, but because we were living in a monopoly. The only option that they had to acquire molecules of natural gas was Petrobras. So this is ready to happen now when Petrobras started to deverticalize of all the chain of natural gas. So customers now, the big ones, already defined on the regulation in Sao Paulo and many other states in Brazil, they are now ready to acquire natural gas from other sources. And this is -- when I mentioned in my presentation, this is where different companies, international companies, local companies are now authorized by government, by the federal government and the state government to commercialize natural gas in Sao Paulo. So the low-hanging fruit, straight to your question, the biggest, high consumption customers in Sao Paulo in the Southwest region. So those are the main targets for the market opening on our view and on Compass view.

Okay. So right on time. Let me thank you, Antonio and Gabriel. And let me take the opportunity now -- and Nelson as well, I'm sorry, and let me take the opportunity to invite Filipe Affonso Ferreira, Moove's, CEO. So Moove is our Brazilian multinational, and I'll pass the word to Filipe to tell you the story. [Presentation]

Hello, there. Yes, last few years, we have worked very hard on building structure, strategy and culture. We've build them while simultaneously executing on it. We have created high-performance teams, an efficiency culture, while at the same time, expanding our business. Today, this is the thing we're most proud of. We know where we want to get to. We know how we are going to achieve it. Actually, this is probably our biggest asset. Our teams have a shared ambition, and our teams are aligned on the priorities and objectives that will lead us there. During 2020, we have decided to intentionally make ESG diversion, inclusion as part of our culture; 2 or 3 years ago, spontaneously, a group of Moovers created a diversity committee. We have just recently, during this year, made it an integral part of our business. We gave it even a new name, which reflects the power of diversity. We gave them a budget. We aligned with leadership and we started a program, which will begin focusing on education and awareness. As far as ESG, during this year -- last year, we have better organized our initiatives. We went deeper with assessment and planning how to integrate such actions into our culture. We will be more intentional, we will be more assertive, we'll be more consistent in our initiatives. Up to now, we have chose our priorities and we are now developing programs for the long run. We have chose to work on residues, manage our waste management, emissions, water and energy, health and safety, and people and culture development. It's very exciting. There is a lot of engagement for -- of our Moovers into -- incorporate into our culture, plurality and ESG. Next slide, please. We're now established with presence in sizable markets of great volumes. We have over 1,100 Moovers across the world, which share an ambition, that share culture. We expect to capture a lot of value by replicating our business model across our different geographies. Next slide, please. Another pillar of our culture on top of our vision, our strategic priorities, are Moove attitudes. Moove attitudes is something that is in our -- in our third year. It establishes the trust environment necessary for the collaboration that we need to be able to capitalize the collective intelligence of the business for the best for the business. So collaboration and integration are big reality among Moovers right now. We start together. We involve naturally all the intelligence of the business on all topics, all hot topics of the company. We leverage our strengths, enabling constant improvement, constant evolutions on everything that we do. 2020 put that culture to test. We started the year very proud of where we were at the end of 2019. We had the January, February, pretty good months as far as our sales and results. And then in March, we were attacked -- Cosan as a whole was attacked by hackers. That made us go back to handle the business manually. And I think we were able to deal with this in a way that we couldn't even imagine. So we ended up the first quarter -- please go back. We ended up the first quarter with lower than we thought, then it came, COVID, literally a global problem for all of our businesses. We focused immediately on protecting the people, lots of communication in that unique moment. We were very close to everyone, military focused on protecting our plants -- the home office there would be no good. We have a very complex portfolio of products. Out of -- even today, out of 1,100 people that we have, we only have 6, 7 out of work because of COVID. We were very close to all our stakeholders all of the time, customers, distributors, partners, suppliers. We made sure all of network was healthy as possible, because it was a unique moment, unique moment that people didn't know where was the light to continue. So we made a lot of very courageous decisions during this process. Next slide, please. Part of teamwork, the care for the people, the set of decisions we made in the commercial side looking at the whole value chain on the supply side, deciding on [indiscernible] on a very uncertain moment, protecting the currency, cash management, spend control, all of those. A lot of improvement on our business structures, on management, on processes. They were fundamental for the great second semester we had. On the second semester, we've achieved -- we were above almost 20% in both quarters and sales in relation to the prior year. So we ended the year with stellar performance comparing to what we were seeing when we were at the end of first quarter and so on. Next slide, please. So we continue our journey of really exceeding our results every year. Right now, we already have almost 50% of our revenues in hard currency. And it runs -- the mentality of continuous improvement and the mentality that there's always space to improve runs across all of our people, and that's why we were able to unlock value in this very difficult year that we had. If you go to next slide, please. But actually, what really moves us is not -- rather than what we have achieved so far, we are excited with what's possible. So next slide, please. The execution excellence of our strategy has enabled us to -- it was enabled because we have designed a very good culture for our business. Everything we believe we can continue to multiply rapidly our results by bigger moves in our territories. We see the U.S. and Europe as a camp ground for us to bring our good thing. We have already evolved a lot in the participation of such regions into our results. The reality is we -- everything in our business was specifically designed for Moove. We have processes, systems, tools that support all of our business and they are molded and deployed along all of our businesses taken in light the maturity of each one of the business. We have great partnerships, suppliers and customers and an organization design, which is lean and very efficient that allows global governance with regional execution freedom. So right now, we see our possibilities going forward even higher because we have a track record that gives us the confidence that we can continue to evolve. And then coming to -- next slide, please. We are actually very happy, we have today a unified culture focused on the best of people, focused on the best performance. We are growing fast and consistently our results, and we see on expansion, room to continue to exponentiate our results. Thank you very much. And to you, Paula.

Okay. So for the Moove Q&A session, we invite Rodrigo Almeida from Santander. So Rodrigo, to your questions.

Congratulations on the such strong growth at Moove. It's been an impressive one. I have a few questions, but I'll focus on additional growth. I think today Moove is very -- is present in very large and important global lubricant market and is as well exposed to South America, Europe and the U.S. But when we think about international expansion or further expansion, are there any additional regions that you could be considering for Moove? Maybe, I don't know, Asia or Africa, for example, is there any consideration on that side? And a little bit on that as well. What do you believe to be the largest or the biggest challenges in replicating what already have implemented into these new markets? And then if I may, just one quick point. Are there any additional synergies that you can still extract from the recent expansions that you have made, the recent points that you mentioned in 2019, 2020?

Rodrigo, thank you for your question. Look, we -- back there when we decided our strategy, we chose Americas and Europe as our playground, okay? And we chose that consciously because they are huge markets. Americas and Europe, they are huge markets. It is what we can handle right now. Culturally-wise, they are markets that we understand and we are learning more and more as we mature on those markets, and there is lots of space. Lubricants, it's a segment of business that requires a lot of specificities. It has been -- there isn't that much investment on those markets. So until we see exhaustion on that region, we will stick to this. It's a choice, a strategic choice, that we think it makes sense because it's all about -- the lubricants business is a very complex business with different lines of businesses. You have passenger vehicles, commercial vehicles, industrial segment. They all have their own peculiarities. They all have their own market dynamics. There are specialties and they do not compete among them. So there is a lot of intelligence you need to develop on each one of those. So it's all about people and processes. It's about improving your processes all of the time in supply, manufacturing, logistics, integration, in a big time. Route to market is fundamental. So there's so much investment and sophistication that you can do in all of that in the lubes business. That's why we see -- we continue to improve year-by-year because with the integration of people and collaboration, we are open to improve all of the time. So I think that answering your -- if we're going out of another region, well, I think the simple answer is we will continue to focus on Americas and Europe because we see a lot of space to evolve there. Then as far as synergy, we started, let's say, our Brazilian multinational, very slim, very lean. We were evolving as corporate pieces that plays for the whole in a very lean way. We want the best of a global governance with regional freedom to act. So we don't want to replicate intelligence everywhere. We have centers of intelligence here, but are very key things. So we will continue to -- I think synergy, as we grow, it's happening naturally because a lot of the things we need to create, the process sophistication, the investment on processing, investment on assets happens as we move into those markets.

Okay. So let me thank you, Rodrigo. Thank you, Filipe. Next presentation now is Rumo. So Beto Abreu, Rumo's CEO will take you through that company that provides cleaner and competitive logistics across this continental country named Brazil. So Beto over to you. Sorry, I think Beto's on mute, 1 second. Not yet? [indiscernible], I will start with Rumo's video while we will bring Beto's audio back. [Presentation]

So Paula, I think it's working now.

So we are reconnecting Beto. So if you could bear with us for a second.

Good morning, everyone.

Beto, can you...

Yes. I'm here. Thank you, Paula. I'm here. Can you put the presentation? May we start? Okay. Thank you very much. I think everybody...

There you go, Beto.

Yes, I think everyone is listening. Thank you, Paula. I will cover the presentation, okay? So we saw the video regarding 2020. It was a short summary of what we have delivered on all the projects. Our volume growing financial results was, I would say, below what we expected, but it was a transformational year. Taking into account everything that we have delivered, all the projects, absolutely key to carry out our strategy in the long term. So looking forward, what we have on those 4 levers as part of our strategy, which is efficiency, customers, growth and ESG. Let's start with efficiency. Efficiency, I have to say, is the heart of our strategy. See that it brings costs down but also capacity growth. So in the last 5 years, our unit, let's say, cost dropping more than 30%. And what we are saying here is that this trend should continue over the coming years. This is a strong potential to dilute our cost and increase even more our competitiveness, which is key to increase our volume in the process. Capacity is also very important here for us and efficiency also bring capacity. We know how many CapEx we allocate in this business in many projects. The technology and efficiency also is playing a key role in the capacity increase in our system. I will not cover the details of many projects that you already know very well, like the 120 railcar trains, which is already running -- it's already part of our operations since last month. You know very well also the projects related to the [indiscernible] but there is many technology being implemented together with the allocation of capital in our business that is bringing a lot of capacity to the system. Let me share a good example, which is being implemented and it will be ready in the next couple of months, which is the new communication system. It's the way that we will communicate the fill in the operational centers starting next month. So it's a new platform where we are moving for a much more faster way using [indiscernible] but also safer that will bring a lot of agility and a lot of speed to the system. Those kind of initiatives, which is related to technology, it's those things that also bring a lot of capacity besides all the investment that we are implementing in our business. In the next slide, we will talk about customer and also about the new structure that we are putting together in the business. So however efficiency gains in greater capacity are only a part of what we intend to offer to the market. So we changed completely the commercial organization with a new group of people, a new leader. And the idea here is to really offer an [ habitable ] value proposition across all segments and markets that we decide to operate. And this is understanding the whole value change. And let me give you another example, which is in [indiscernible], is a terminal that you know very well. So last year, each truck that used to getting to this terminal used to spend 6 hours to [ deload ]. So it takes hours to get in and to get out. So in the first 2 months of 2021, we're already operating with 4 hours of time for those same truck drivers to get in and to get out of the terminals. So this kind of offer, understanding the whole value chain, is also part of our proposition to offer to the customer. So we know that all these things, which is part of our value proposition are key, but which is very relevant also for the customer is our level of competitiveness. And this, in the next slide, we will talk about how we are seeing the competitiveness of our solution regarding the market in the kind of environment that we are facing today. So let me go to the next slide. So you all know that there are many things that change with the environment and the level of competitiveness that we operate in the business. We know the things that can impact this, which is the balance of supply and demand. You know how fuel price also influenced on that. And -- but what I have to say here and as 2 message for me are key here. One is that the level of competitiveness in the environment that we are facing in 2021, it's fair to say that it's better than the one that we saw last year. And for me, the main message here is that we want to be competitive all the time. So Rumo has a solution that can be and can offer the most competitive solution in mostly all areas that we operate. So I think that that's the 2 message here that I would like to share with you. One is regarding the environment, which is better, but how do we see this in the future. And in the next slide, what we'd like to share with you is efficiency. It will help, of course, to deliver our cost and grow capacity. We also just mentioned that we are very focused on having a very strong value proposition for every segment that we operate. But I think it's fair to say that our solution is not only the most competitive one, but it's also the greener one. And what we are showing here in this slide, since we know that 80% of Brazilian exports goes to Asia and to the Middle East. What we are saying is that when we compare our solution of, for instance, grains, moving from Mato Grosso to its destiny in Asia or in mid-West, the footprint is much lower than the other solution that we have for Mato Grosso in the case, the terminals in the north of the country. So it's interesting that we can offer, yes, the most competitive solution, but also the one with lower emission. And what we are trying to do here, it's not only measure our emission, but start measuring the whole value chain emission because we know that, that matters for our customer. So in the end of the day, competitiveness in pricing, services, customer, everything that we are talking about and also a greener solution is the whole thing, which is part of our robust value proposition to our customer. So that's what we are doing in this chapter of a customer. But I think a very important thing to analyze this -- to analyze now, it's more about the market. We will see this in the next slide. So efficiency will help, the growth capacity will help strong value proposition, but how do we see the market in the next coming years? So this is the total, let's say, global trade for 2020 and how do we see this in the next coming years. And this is the number for the next 10 years. That's for the market. And in the map, we will see that Brazil is, today, the leader in terms of the country that has the biggest participation on the trading global brands. Interesting to look back. Let's go back to 10 years ago and see how was the numbers. By 2010, the global trading range was around 200 million tons, and Brazil was participating with less than 20% in this trading process. So what we saw since then was a market that grew more than 50% in Brazil, taking, let's say, the leadership in this process and the question is how the Brazilian participation will be in the next 10 years. So this is what we are looking for and also how we will participate in this market that grows so much with our capacity and also participate in different geographies as we will see in the next slides. So we have a strong market to participate. So that's the area of whom we influence in 2020, a market of around 100 million tons. We know that the geographies that we are currently participating are growing, but we already have now the new market. That's part of our portfolio, which is Goiás and Tocantins will bring -- which will bring additional, let's say, opportunities. But many things have been -- we have delivered many things last year to enable and to prepare the organization to face all these opportunities. I think the first one was the expansion of our terminal in Rondonopolis. The renewal of Paulista Network, which is -- will also increase our capacity, delivering the central network operation before we have agreed with the government, and also all the improvement that we have been implementing in the port of Santos. That's why I keep saying that we are starting 2021 much better than we're starting -- that we started 2020 in terms of preparation to face all the opportunities that the marketing has offered for us. So in this next slide, as part of this new market that we start to operate, we will see here the capacity that Rumo will have in the next coming years. So as you know, we started already with São Simão. Rio Verde will be ready this year, and there is many opportunities also coming in the next year. I have to say that this operation is already part of Rumo's legacy in this market. It has implemented very fast and there's many products to be carried in our operation in the next coming years. So we are not talking about grains but also fertilizer. We have the container business still sugar and even iron ore is part of the products that we can transport in the next coming years. So a lot of opportunities in this great growth area that we just start to operate. We usually talk a lot about grains, as we know, fertilizer, but we cannot forget the huge potential that we have also in other products in other cargoes. So it's part of [ domestication ] in our business. If we take into account only those 4 categories, which fertilizer, sugar, open fuels, we are talking about the volume that's part of our interest area of more than 30 million tons that Rumo can keep working to increase its volume. So a lot of opportunity as well on other products, not only in grains. And in the next slide, talking also about diversification. Let me share also the container business which, as you know, has been growing very fast. And this is, I'll say, our continued creation that we use the brand Brado is a huge avenue for growth. You're going to hear a lot about this company. And I have to say that this brand will be ranked among Brazil's top-of-mind brands over the next 5 years. A lot of things will happen with this business, and we have to pay a lot of attention to this segment in our operation. And then we have ESG, which is also part of our strategy. Here, Rumo have to consider that a lot of things will be implemented. This is our agenda. This is the initiative that we are putting in place. And I would want to highlight here that besides safety, what we are bringing also to our company compensation starting now in 2021 is the ESG agenda. So there is a -- a basket of initiatives that we've also been considering in our compensation program from 2021. So in the next slide, just to finalize it's the summary of what we just presented. So Rumo is a green and lower cost connection between production and consumption, so we saw this during the presentation. And this is being delivered through operational efficiency to boost competitiveness, a real focus on our customer, market growth enabled by expanded footprint as we also saw on the new geography that we are entering now. And ESG as a competitive advantage for our business, which will guarantee the business in the long term, and we also bring profitability for our operation. So thank you very much. Sorry for the -- missing the connection in the beginning. And I'll be ready here for the questions.

Okay. So our -- again, sorry for the connection. We should have lightened a candle to the technology gone here, our bad. Beto, we'll invite now 3 sell-side analysts. We have Josh Mehlman from Morgan Stanley. We have Victor Mizusaki from Bradesco, and then Andre Hachem from Itaú. So Josh, you may start. [Technical Difficulty] Again, we can't hear Josh. Okay. Let's move to Victor, and then we come back to Josh once we reestablish the connection.

Great. Thank you, Paula and Beto. Beto, Rumo was investing like BRL 6 billion in Malha Paulista to double their capacity to like 70 million tons per year. So I'd like to know if you can share your thoughts on what Rumo is doing to make sure that, first, there big range or, let's say, demand for this capacity increase? And number two, if you think about like 5 to 10 years ahead, what will happen with yields or freight price? Can we say that they will remain accretive?

Thank you very much, Victor, for your question. It's a key project for us, meaning in the next 5, 6 years. As you know, the current capacity of this rail is 35 million tons. Actually it was built a century ago to transport coffee. So a lot of things has to be done to face all the opportunities that we have in the Brazilian market. So we know that, for instance, Mato Grosso were exporting around 50 million tons per year. So Brazil should have another record harvest next year, and this is a trend. That's how Brazil is operating. I think a good question is how will be our participation in the global trading in Brazil in the next 10 years. So you saw that we moved from 19 to 37 in 10 years' time. So how will be the Brazilian position in the next 10 years? So a lot of opportunities will come. So only Mato Grosso, we are expecting to produce -- to move from the current 70 million tons to 120 in the next 8, 9 years. So I really don't see a problem with market with volume. It's really about implementing and executing everything that we have to do on the right time. I think that [indiscernible] is much more about on the project engineering side, making sure that we allocate the CapEx in the right, let's say, sequence in a very disciplined way. So that's what we have to do. And we have to take into account also that there's other operators that use the Paulista Network, and this is without Goiás. So it's historical what is going on now. It's the connection of Goiás that continues to the state in São Paulo and to the port of Santos. So this is -- it's changing completely the environment. So Goiás is already the third biggest producer in Brazil, used to be the fourth 3 years ago. So it's a really growth area. And there's 2 big markets that will really use the Paulista Network to export their product to Santos. And talking about value in the long term, I think we have to take into account that our strategy is to keep growing Mato Grosso. You know that we are planning to extend our rail to the north to Lucas do Rio Verde and this is the kind of projects that would, of course, will keep adding a lot of value not only in terms of returns, but also in terms of yields and really adding value to the business. So Paulista Network is absolutely key not only for Rumo, but for the country in terms of increasing the level of competitiveness of our agro business to keep supplying the world with food and with brands.

Okay. So let's try Josh again. Josh, let's see if you're on now. Josh? Okay. I think we're still having problems there. So Andre, can you jump in?

Sure, definitely. Can you guys hear me?

Yes.

Yes. Yes, very much.

So I would like to focus a little bit on the competitive environment. 2020 was the first year with the BR-163, I hope it will be [indiscernible]. So if I -- personally, I'd like to ask, what were the lessons were last year in terms of commercial policies? And what would you do differently when we think about 2021 and going forward? My second question is when we think about returns, how do you see the tradeoff between pricing and volumes? I understand there's a lot of gains of efficiency. There's a lot of games of scale. So if you could comment on this trade-up, thinking about returns specifically would be very helpful.

Thank you very much, Andre. I think let me start saying that -- or it's fair to say that the competitive environment this year is better than last year. And you know that we had a kind of perfect storm last year in the market. So we have the COVID crisis with the volume that impact on the [ fuel ] price on the very strong way. Of course, 163 brought a lot of competition to that area. And -- but there's also a lot of learnings from our side in the way and the speed to adjust price on this new environment. And you know that when we go 5 years ago, we were definitely more focused on capacity. And what I was trying to say today is that we have been shifting for approach to be more customer-oriented. So we expand our network to Goiás and Tocantins to central operation. And we would like to spend our network deeper in Mato Grosso. We implement this new commercial structure, which will be -- it's been leading by Pedro Palma, the new Commercial Vice President, exclusively focused on the commercial side and trying to build long-term relationship with the customer. So we are doing our homework. And -- but a lot of learnings, of course, from 2020. And when we look for 2021, again, it's -- and going to the tradeoff part of your question, what I'd like to say is that our targets, it maximizes our market share. And getting the best yield, of course, that we can in the market but maximizing market share. So in the long run, we might have an opportunity to present better yields. But right now, we are focused on volume and in cost efficiency.

Okay. We'll give one more try to, Josh. Let's see if it works now.

How are you? Hearing me now?

Yes, please.

Okay. So sorry for that audio problem. I actually connected using another device. But Beto and Paula, thank you guys very much for the event and also for the opportunity to participate. Those were some very substantial achievements that you guys delivered last year indeed. And Beto, you mentioned a bit ago, the Lucas do Rio Verde project. And I just wanted to ask if you could revisit in some detail, the regulatory steps that are needed to move it forward and also further address the issue of the environmental approvals, which I think you guys highlighted a short time ago could be the biggest obstacle. And then actually, let me just add one more point there on the same topic. If you could just touch on how much of a factor is the Ferrogrão project, in your view, both for the process of advancing with Lucas and for your expectations on the project's return potential?

Yes. Well, thank you very much, Josh. It's good to hear. And then -- and you're right, I mentioned already that the bottleneck of the Lucas do Rio Verde projects, in my view, it's not the regulatory side, but the environmental side. As you know, we stopped the process almost 2 years ago, and this kind of project takes a lot of time to be approved in Brazil. So we are expecting to spend an extra year to finalize the environmental process. So that's the agenda. That's the -- that's what we have today. Besides that, of course, we keep working very hard on the engineering side. So we already have the basic project, which is ready, which is very good news. So now it start working on the executive project, which is necessary to start building the rail. And in the environmental -- on the regulatory side, you know that we are talking and discussing with the infrastructure minister and also with the regulatory agency to find the best way to implement it. There is a couple of alternatives. I'm sure that you have been listening this -- we are talking about our contract. Also, there's a possibility to use this new 261 law that might be approved in the Congress as also a strong alternative to implement. So I have to say that we are talking, discussing and really to find the best way to move forward in terms of the regulatory way to implement. I think the good news here is that last -- when we go back to 2020, the discussion with the government was much more related to if we will be it or not. If the extension would be authorized or not. So that was the kind of conversation that we were having. Now it's not about if, it's much about how. So the conversation now, it's how we're going to do it. So that's the kind of situation that we are living today, which, for me, it's a very good news on this process. So -- and this is why I keep saying that the environmental license is really the one that might take more time to start the project. Once we have it, I think we can reach Lucas in 5 years' time. So that's why -- that's how we are planning. Regarding Ferrogrão, as I mentioned before, we are amending our project despite what's going to happen with Ferrogrão. This is another project. This -- the potential, let's say, players that are analyzing Ferrogrão might, might have the condition to do it only if we are not extending, but that's not our case. We want to do it despite what's happening with Ferrogrão. That's our position on that project, Josh. And thank you very much for your question.

Okay, guys. So thank you so much to the three of you. Thank you, Beto. We are now done with the business presentations, all calling for a rather interesting future to say the least. And as promised, we'll close the day with holding presentations with our CFO, Marcelo Martins; and CEO, Luis Henrique Guimaraes. So over to you.

Thanks, Paula. Well, hi, everybody. Thanks for your time and for participating in our first virtual Investor Day. I would like to start the presentation just to a brief recap of last year. We have presented this chart since the beginning, actually, since we started the advanced Investor Day meetings with you guys. So you have been following and monitoring our stock performance. As you know, we've done extremely well. We have outperformed IBOVESPA very constantly. Last year, we had some volatility as probably was the case with most of the companies listed in Brazil and even worldwide. But at the end of the day, I think that the stock performance improved as a result of the good results we have delivered to the market. If you look at the next slide, we're going to present you some additional details on the EBITDA under management as we like to put it. So last year was a bit disappointing, considering what we had predicted. But considering the circumstances, we think that we ended up delivering a very good result, almost BRL 13 billion of EBITDA under management. We -- I think it's a result of a very solid and well-diversified portfolio. So when you see over time what we have managed to do even in years of great volatility, was to improve the performance of the companies to improve the performance of the businesses all across the board. We have an example of Moove improving 3x in 5 years. It's probably the biggest chunk we had in the EBITDA of the companies managed by Cosan. Same thing for the other businesses in different ratios, but still a very solid, a very robust performance. We're predicting a good result for 2021. As you know well, another record year compared to 2019, that was our best year ever. And again, 2020 could have been the case as well. Over -- at the end of the day, we're happy with the performance of the businesses during last year. So next one, as you know well, the corporate restructuring took effect recently. We started this discussion last year. It's been anticipated by the market for many years, as we all know. And we have always conveyed the message that at the right time, considering the right conditions and considering the willingness of the control in shareholder, which was a very important element in this discussion, we would do it. We ended up doing it. So what happened was that we merged the 3 holdcos, as I like to say it. We used to have the shape of an inverted pyramid because they had 3 holdcos that were listed and only 1 opco. At some point in time, we had 2 when Comgás had more liquidity. But considering the low liquidity on Comgás today, it's fair to say that the only listed company was Rumo. So to the merger of these 3 companies, we have not only simplified the structure, but we have also allowed Raízen to increase its market liquidity, which is obviously important for the investors, it's important for us, and it's important for the management of the portfolio. The idea is that over time, we're going to list all the opcos. We have recently announced the willingness to list Raízen. We have tried to list Compass. Unfortunately, the market momentum was not very favorable last year, and we had to drop that idea. But at some point in time, when we think that it's the right market momentum and when we think that we have managed to deliver some of the results that we have in our strategic plan, we're going to come back and we'll try to do it again. So next slide is basically talking a little bit about what we have accomplished. I think that you know well what we're presenting here. All the major steps we have taken over time. You know that our ultimate desire was to build not only a robust portfolio, but a well-diversified set of businesses. And I think we have managed to do it. The reason why we have performed so well under very volatile times is because we have a pretty diverse and complementary business portfolio. So moving forward, what we foresee is a new cycle of growth. What I can tell you that what has basically brought us here is an outstanding team of people. We like to emphasize this point because it's certainly our most our biggest advantage, our biggest competitive advantage. It's the team of people we have, at the end of the day, managed to keep in our companies, and they help us not only to grow the specific businesses, but they are basically the pillars for us to keep investing in other businesses. And you know that we have the resources -- internal resources are necessary to make sure that we keep delivering to our shareholders over time. What you should expect from us is that once we have completed the reorg, we're ready to keep investing, not only to the businesses, but also at the Cosan level as well. We are acquisitive. We have always been acquisitive. So we shouldn't expect us to change that course. So we have not anticipated at this point in time, but you should know that as new opportunities surface, we'll look into them, we'll consider them. And we'll come back to you whenever we have something that we think is worth to share with you guys. So with that, I think that I'll wrap up my presentation, and I'll move to Luis. So back to you, Luis. We'll talk to you again in the Q&A session. Thank you.

Thank you, Marcelo. Thanks for the segue. So what I would like to do now is to wrap up all the strong and very good presentations from the team. So I think you have listened from the leaders of each business, the strong plans ahead, with very strong position in terms of the market we select to compete on the 4 platforms we have in a peer view that we can help our customers to decarbonize. So I think we are more and more confident that in every segment, we have a strong proposition that will help our customers and our partner to decarbonize. And we have shared you in the previous meetings our view on the trends, and we continue to see this business environment plan being boosted by providing certain aspects of it. So the role of Petrobras and other incumbent players in the future participation in the [ mid and downstream ] on the oil and energy business, Brazil will continue to grow along in terms of oil exporter and producer of gas and oil. The change in regulatory environment, more [ firmly ] to the private investments, reported some potential moves here and there. But I think the overall agenda is to deliver our agenda, and obviously the new Congress -- the new [indiscernible] Congress we see expectation of the reformed [indiscernible] progressing over the next couple of months ahead should help sending [indiscernible]. Gas and power integration, moving ahead, improving regulation. So the free market, both in gas and that at least to continue to grow in the opportunity for us at a very strong on distribution of marketing, customer and sale to -- of course, we welcome that that we're positioned towards [indiscernible]. And the rising relevance of Brazilian [indiscernible] to the world. So as Beto mentioned will continue to grow. Brazil will continue to grow with export and relevance, not only locally, but globally in terms of the [indiscernible] for the world as the world gets richer and [indiscernible] with more people for over the next years on that. Energy transition, a strong move forward and that [indiscernible] by COVID and the understanding of the importance of the yield [indiscernible], but also the importance of being able to stabilize the grid and get the power. So a lot of learnings in terms of access, events and other things. So very important that we are playing [indiscernible] by the change in the agenda, as shown by Mussa and all the global broader leaders here, and we will continue to be ready to play on our strength. And it's a solid foundation for the last year, we have been working on that. Increased social awareness and digital transformation. So we're sharing you later on, example, how we are going about that and the way we're trying to create an [indiscernible] organization that can innovate very solid, but have excellence and a lot of discipline in the operational side. So we have a lot of operations that have risks in terms of products and the way we move people, products and safety always to fuel operation. We cannot tolerate errors on that side, but we can tolerate some more [ errors and risk ] another part of the business that we need to innovate and will continue to combine [indiscernible] and the strength of [indiscernible]. If you look to the next slide, please. So when I look to our ecosystem that you have seen from all our business, so we have enormous customer reach. When you look at the 40 million people that has reached at the year, when you look at the 2.1 [indiscernible] that Comgás serves and when you look at the enormous amount of retailers and the industries that both are [indiscernible] we serve, when you look at the connectivity that Rumo brings, so there's a lot of capitalized in a continental currently, a lot of customers in supply base. So we look at this portfolio all the time as a leadership here in the [ holding ] and also when the people say, we have more opportunity to strike. We have more opportunity to create services, business around that. It is what we find with some small pilots, with some unique combination of different partners. And as Marcelo showed, we know how to partner with people. We have been a partner of choice for several business, and we have delivered on our promise. And we have a unique thing that I think it's important for any developing acquisitions about high recurrence. So our customers stop 3 to 4x up on our stations. We have one deal from Comgas every month. They change their oil and do a certain treatment. So we are in touch with these persons around the year, and we have the opportunity to connect and generate growth for this platform that Marcelo said will offer new opportunities for us to grow in areas that we are not bringing to that. And this will become part of our opportunity for acting in our ecosystem moving forward then, especially because of the depth of our team. So we saw here the leaders of the business. But underneath them, as you know, there are solid people in operations, marketing, sales, in HR, in technology that we have been attracting people and investing on their own. Develop with strong solid progress [indiscernible] and we know that the [indiscernible] is very important for our continued growth going forward. So if we move to next slide, please. And we have been looking a lot and we've been quiet, as always, working on our digital transformation inside the company, looking at maximizing our customer experience, look at efficiency and cost reduction. And you can see the slide somewhat of the example that much more is happening and the customers will be investing a lot in artificial intelligence, machine learning, training our leaders and bringing people and bringing start-ups to work with others to develop that [indiscernible], building a lot what Mussa and Nelson have talked to on this [indiscernible] and analytics. So the way we see the movement of our products, customers, we can understand much better what's happening on the markets we're playing. We are putting that on our advantage, and we are learning and make some mistakes, have corrected some routes, but I can assure you this company is transforming itself from one side and the digital transformation well, but also connecting outside this customer and suppliers [indiscernible] bring them to be more efficient, more closely and more loyal to our business. And I want to share with you today next an example. An example how the Cosan way, the Cosan business system to go about innovation and it's about revisit, if we go about next one please. So we looked at a couple of years ago about the opportunity of value creation on the turn market and logistics optimization of digitalization, a market that's very big, it's very uberized, very [ scattered ], and we look at the way to develop. So we partnered with KMM, which is a company in [ Porta Gross ] and Parana that has a technology and expertise. We brought [ ecozone ], [ the formulas ], people, resources, financially, in human and scale. So we developed a long-term strategy and road map that positions the [indiscernible] because [indiscernible] growth would not be better as we go. So we focused on the execution, but this could happen on the user and the customer experience. So we go [ from the B2B ] as the shipping company, but also on the autonomous driver of a large segment in Brazil that needs support and our business people that we can move that [indiscernible] and help them to be better business people. And sometimes, there is some selective consolidation, which we have acquired a small company at the end of 2020 for [indiscernible] that we already integrated to the not only the human resource, creating new ways of development and then join [indiscernible] because you guys know how much do the price for group technology resource, but also bringing new customers and new products. So this is the way we go about. We select the market. We look at how our ecosystem in [indiscernible] leader. So we brought Renato Gouveia. He's a very strong leader to lead this event. We partner with people that can bring additional elements for our effort and we scale a lot and we keep pushing to the next level. So I want to share you a good video so we can understand how far have we gone silent on Trizy that's becoming a leader on this space in the market. Video, please. [Presentation]

So if we can get to the next slide, please? So you look at the trends, you look at the way we are innovating, and I want to spend a couple of minutes here on the ESG journey that we are going. We have concentrated our effort in terms of [ Raizen ] agenda. We see a project that we have already showed you and will share with you again. But also being sure that on the corporate side and the [indiscernible] and a couple of [indiscernible] focus in things about some more location capital, the overall governance of the group, a lot of the depth of the people and the ability to attract people for the existing projects, the new projects, looking ahead what is turning and maximizing the portfolio performance as a whole. While the business leaders are focused again on capital discipline, that's our strength within the platforms and the markets we are playing, a lot of accountability and independence to ensure that it will drive the business to the next level, focus on execution, development of the people in the business and maximizing operational performance. And together, we are looking at a lot of synergies that can be created. And I'll just give an example of a big journey we did in the last 12 months when we're building our information security process, culture and people, which we did together and now we are much more robust. Then we thought it would be in 12 months for the team working together, working joint procurement efforts in certain categories and looking together new growth opportunities. So we have the ability now to have a strong focus on individual business, led by strong teams, management teams, while at the same time, we are looking at new opportunities that the opportunities after being consolidated will continue to file our growth and looking ahead. So we go to the next one, please. We have clear targets within each of the business. I'm not going to bore you with the details here, but you can see that every business have a focus in reducing emissions, reducing plastic, reducing waste, creating efficiency. We are of the view that efficiency in all the [ bids ] will be less use and also will bring additional value for us. So it's a clear route. [indiscernible] cleaner, more efficient and helping our customers to do the same as well. And we're working a lot on our diversity agenda. It's not easy on the segments we do come from, but no excuse for us to achieve higher levels [ reversal ], get clear targets for each of the Cosan's management in reviewing that with the Board and a lot of programs in health and support for our people to the [indiscernible] to make sure that they have more and more of this that are diverse, starting with females, but also working on the other goals of diversity. We think that respect for different thinking, we expect a different way of behaving. It's very important for us to better understand the market and generate [indiscernible] and continue to grow our base of customers and business. So if we go to the next one. So at the end, guys and investors, it's clear what establishes us as leaders in the clean energy space with a very efficient logistics and multiplying our carbon-reduction footprint that we really want to bring all with us. So our internal teams, our customers, our suppliers, because we think together, we can generate a much better plan and generate much better execution. And it's very important that we need to see [indiscernible] will continue to generate, but we will continue to grow especially, allocating capital at the right time, but also innovating a lot with us, but also with our existing partners, new partners and small and big start-ups that are complementing our effort to innovate and create our new growth side. And a lot of the focus, we will continue to be increasing the depth of our talent base making it more diverse all the time. And with that, I want to finalize our presentation here, reinforce that all our platforms are very well positioned to ride the trends that the market will offer, the trend in society and especially positioned to capture a cleaner world with more efficient just relying on the strong people, pipeline and assets we have constructed and the one we'll construct ahead. So with that, I'll turn back to Paula for us to go through -- to walk us through the Q&A. Paula, could you please?

We okay. So let me invite Luiz Carvalho from UBS, Marcella Ungaretti from XP and Regis Cardoso from CS. And first question with Luiz Carvalho, please.

Thanks, Paula. Can you hear me well? Can you hear me? Okay. So very -- I mean, thank you very much, Marcelo, Luiz, for the opportunity here to make a question, especially in the Cosan session, as we think that most of the relevant events, [indiscernible] recently. And I think that the investment case has been driven in a certain extent from the -- to this top-down and this execution. So as Marcelo said, you recently concluded important stats in this copper restructuring process. And I think that my first question comes, it's more related to the priorities looking forward in this simplification process, right? So you have already announced the IPO of Compass and Raizen, and so just trying to understand here, if there are any milestones that you think that worth to actually to be delivered before the IPOs? Or do you think that the companies are pretty much ready to move forward on the back of the Gaspetro negotiation that was discussed by Nelson and also the refineries, potential acquisitions on the Raizen front. And following that, maybe to Luis, you brought this, I would say, ecosystem and analogy. And just would like to understand where we -- would you pin that. I mean, where do you see the company, maybe, I don't know, 3 from 5 years from now, and that you have, as I mentioned, Gaspetro, you have the refineries, you have now [indiscernible] You have the Biosev. So just trying to understand where do you see that the company might be able to achieve in 3, 5 years and how this is matched or this matches in terms of your capital allocation strategy with potential buybacks and dividends and so on?

If I may suggest, Marcelo, you can start with the capital allocation and the timing. And then Luis can follow-up on the [indiscernible] decision and the 5-year plan.

Okay. Well, thanks, Luiz. In terms of the next steps after the reorg, as we have recently announced to the market, the idea is that we would try and list all the companies, all the operating companies. Of course, there is a certain order of priority, which relates mainly to the readiness of the companies and the market momentum, always the market availability, of course. That's why last year, we tried to do the IPO conference. Market was there when we started the process, when we tried to sell the deal. The market was not there anymore. We had to basically -- we have to be prepared for the market, but at the same time, the company readiness is very important, too. So Raizen, hopefully, should be the next one. I think that we would very much like to take advantage of the next market window. I would say probably the next 2 months, but we don't have the exact timing defined for that. So for Compass, the idea is that we would come back to the market. We still plan to, yes, build the company, raise capital to finance the expansion of the business. But as you know well, we have recently announced Gaspetro. As you mentioned, there are other potential investments in the pipeline. So we're in no urge for Compass, not that we are in the case of Raizen, we think that the residents of Raizen, considering the recent acquisition of Biosev is now. As for Compass, we would rather wait for eventually the next window of opportunity. It's important that we follow a certain order of priority, as I said before. And I think that the next priority is Raizen for us.

So if I going from that, Luiz, thanks for your question. So the way we see, you saw the individual plans for each of the companies, right? So they are very clear, very well-structured and they will continue to pursue that. So -- but we also are looking, like we show you the opportunity of [indiscernible]. Everything that's happening in the market is e-mobility, e-commerce, logistics, so we are in the middle of all these things, right? The connectivity of these customers, recurrence, a lot of capilarity within the country. There a lot of movements of money between our companies, our customers and our suppliers. So we are looking using technology association, et cetera, to develop business that will be strong, material that would require our type of competence to play. So we don't have anything, let's say, today to communicate, but what I can assure you that, that's growing, several ideas in several areas to see which ones are concrete and we can pursue and so and become relevant business to that. And of course, as you look from [indiscernible] who also built the national arm of the business will continue to grow, led by me. But also, as you also point, those opportunities for business in other place like a license or rating base for second-generation or other types of products that will use our knowledge, technology and people. So it's enormous, in our view, the opportunity. What we need now is ability to prioritize, as we always do, focus in order to become then material, so we can achieve leadership in the [indiscernible] selected way, like we have done with our 4 established platforms that we have.

Okay. Marcella now.

Thank you, Paula. Hi, everyone. Hope you are well and safe. It's a pleasure for me to be here with you all today. So my question is regarding Cosan DSG agenda as a whole. You have been focusing a lot on the topic and even making important commitment in your defense business, such as reducing emissions for RTK by 15% in period 2025 [indiscernible] and reducing by 10%, the carbon footprint of the tunnel produced by Raizen in 2030. So my question is, among the topics you presented today, what do you see as the biggest opportunities for the company on the ESG agenda? And also what are the main challenges?

Thank you, Marcella. Thank you, Marcella, excellent topic. So we would like to say that we are bringing our experience we have on the safety side transformation, about getting the hearts and minds of the people to continue this journey that we embarked. And we think that the opportunities I meant, as I think we showed here and put some targets, but all the focus we are looking at how can we help our customers through our operations with us to reduce their carbon footprint. Because we've got so many sectors, so many geographies, so many businesses that are crucial for the movement of people and routes and the news and the progress of the business, we believe that we can play a role in helping customers and suppliers to be [indiscernible]. So this is the biggest opportunity we have. And this is where we are looking at our products, our service, our way to do business, to work with each in different segments in a way that they will see impact of moving the operations and the work we have. And given our track record of efficiency and we like efficiency because efficiency means more requests. And this is all about, in our view, being caring with the environment and be able to give benefits back to the society. So we will continue to pursue that, using more and more technology to increase our efficiency in everything we do. So that will mean the railcars use less energy in the future. And also we will expand the network with less energy and less materials. The same will happen with our products. So our concentration effort is doing more with less, and helping our customers to do compromise. So the challenge is -- will be a huge organization of our size, in getting the hearts and minds of the people. We are confident that we can do that because we have done that on safety, we're still learning, but we are confident that we will embrace that. But it's very nice to work with a company in a group that's trying to make the world better and to reduce the carbon emissions that every customer is producing, and bringing progress to society, into the communities we operate in.

Okay. Now Regis.

Thank you, Paula. Thanks, Luis, Marcelo for taking the questions. So I'll come back to the topic of capital allocation. And in particular, I mean the Cosan Group has now become a holding company with a very diversified portfolio of assets, each one of them, very material businesses, which are investing quite substantially for the future. So I guess my question, Luis, Marcelo, for you is, how should investors see this portfolio? I think in the early days of Cosan, investors tend to look at it mostly as a sugar and ethanol play, and then it eventually migrated to more of a fuel distribution play, whereas now it's changing, right? Now you have Rumo inside the same portfolio with very substantial investment plans. Likewise for Compass expanding, the Biosev acquisitions, all the investments in renewables. So how do you see the relative sizes of each one of those businesses growing relative to what they are today. And in particular, if you could comment what is the role of each one of those businesses in that portfolio. Like in the past, Compass would be a cash generation that would fund the growth in other businesses. It appears that many of the companies are now seeking third-party capital from the market to finance their ambitious growth plans. So if you could comment on the role of each one of the businesses and how the mix of the portfolio changes going forward?

Okay. Luis, I think you can probably take the opportunity to go through everything and summarize the event here, right?

Yes, okay. Thank you for that, and Marcelo, please jump in if I miss something. I think, first, we want this business to have their own independence and grow, improve their relation with the market, with the customers, with the suppliers and [indiscernible] , right? So we're not going to be here putting a strain. We want them to have higher ambitions and continue to dream high and follow through. So this I would say is the first message that, that way leads to, [indiscernible] are empowered to do, and will continue to do so. So -- and from the holding level, we'll continue to support them, the ideas with some people, and of course, assessing the market and helping them to success. The second thing I want to talk about is about -- we believe that now these markets have enough strength and enough materiality to be very relevant on the sale. So our smallest one was moved, but the movement of Moove in the last, especially 2 years, we're very impressed. When you look at them, we -- it's ready to get to the 1 billion plus, right? So this business have created their own capability to move forward and look at the opportunities that we mentioned. So we see this business as having their own set of priorities, of course, orchestrated between us. But we will, as I put on -- the look at the ecosystem and the ability to create new business, looking at opportunities that across business, that contemplate synergies that we construct in the portfolio and eventually looking at a [indiscernible] platform, if it appears. So Raizen will continue to be a growth platform, exploiting the proximity and renewable energy approach. Compass will play the transformation of the gas and power business. And all the infrastructure and market projects that, already outlining in the ones that will come, enabling Brazil to exploit this richness and abundance of gas, and taking low-cost gas to a lot of industry domicile performance. That we will continue to bring the connection between the largest producers of grains and protein to the world and doing so in a more efficient, lower cost and [indiscernible] way. And Phillipe will read our globalization, right? We see a lot of opportunities in Americas and Europe, and we will continue to pursue them in order to do that. And capital will be allocated at the return of the project to the discipline of keeping our leverage, as well as our ability to continue to fund this business and holding at the appropriate level. So we are very excited about the growth we have ahead. We are very excited about the team. We have constructed. We are very excited about the culture that has developed. And we are very excited about the transfer of people that we have managed to do over the last few years in ensuring that we are giving our teams the ability to develop, the ability to pursue their dreams and especially to help the decarbonization. That's one of the priorities of the world and Brazil going forward. And at the end, Brazil, I think, and we believe firmly that Raizen, Compass and [indiscernible] will be known as one of the [indiscernible] a green power of Connections and we are ready to exploit that, we're ready to support that and we're ready to improve our research to your [indiscernible] . So thanks for the confidence of the investors that have helped us through this last years and especially through the consolidation of the holding. Thanks for being with us today and hope to see you next year personally, when it's time for us to get in touch again. Have a good day, be safe.

Luis, just to complement what you just said. I think you covered pretty much everything. But there is one information that I think is quite interesting, and I've been repeating that recently. It's the fact that back in 2008, the EBITDA of the group of Cosan was less than the EBITDA of Moove this last year. So that gives investors and our business partners an idea of how we have managed to grow this portfolio over time. How successful we have been in our strategy to diversify the businesses and to keep reducing the risk exposure of the group overall. We tend to need less capital today than we used to, first, because the businesses are big, and they are self-sustainable. The idea is that those businesses should continue to be self-sufficient. So they have to address their own capital needs, without the need to rely on the controlling shareholder to supply their funds or to finance the growth of the businesses. And I think it's going to continue to be the case. So we don't necessarily think that they're going to need our support moving forward. If that's the case, we're ready to help, but I don't think it will be necessary. So there is enough cash in the system today, not only to finance the growth of the businesses, respectively, but also to address the potential needs of the holdco to not only pay dividends to its shareholders, but eventually use part of the funding to finance the growth of the business portfolio. We're going to keep investing in the growth of the portfolio. I can tell you right now what the next step's going to be, because there's nothing mature enough at this point in time, should be disclosed, but I think that we're ready to keep investing because it's part of our DNA, it's our nature to grow the portfolio. We love to manage the portfolio. We still see a lot of opportunities, potential value creation all across the board. And we're very happy with what we used to call the permanent portfolio, which is composed by the companies you know today. We wouldn't rule out other opportunities, eventually, new verticals. There's nothing, as I said, ready to -- for the next announcement, but we'll keep searching for opportunities as we think that there is plenty of value creation still to come from the existing businesses and potentially new businesses as well.

Okay. So mission accomplished 12th Cosan Day and counting, hopefully in person next year. So just before we finish, I would like to really thank you, the IR planning, ESG and communication teams for the amazing job preparing this event and stay safe. Have a nice day and see you next year.

Take care. Bye-bye.