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

Good morning everyone. Welcome to our 13th Cosan Day to those of you who don't know me I am Ana Luisa Perina Head of IR and ESG at Cosan. Before we start, some safety announcement for today. We don't have any drills that have been scheduled, if any alarm goes off please follow the fire brigade team, they will be at the exit ready to help us in any emergency. Emergency exits are located in the back of the room behind you and to my left. And our meeting point is in front of the hotel reception. But all you need to do is follow the instructions and everything will be fine. So on your tables there is a QR code it's also available on the screen and on your screen if you're online, you can download to this presentation. If you would like to see the presentation, while you watch us and make note, all the content is available through this link. It's the same QR code that you see on the table here. So let's take a look at the agenda for today. We have a lot of content. Luis Henrique, our CEO will start. He's going to talk about Cosan's management model, he's going to tell us how we make it happen every day, then we'll talk about business. We'll have 2 sessions. First Compass introduced by Nelson, Moove introduced by Filipe, and Rumo introduced by Beto. Then we'll have a quick break and we'll come back with Raizen introduced by Mussa and he's going to also convey message from Raizen. Data been made than Cosan investment with Leo Pontes in person and then we'll have a Cosan session on financial management with our CFO, Ricardo Lewin and Marcelo Martins will deliver his closing remarks about Cosan. So Luis if you could come up to the stage for the official opening remarks of Cosan 2023.

Good morning everyone. It's a pleasure to be here at the 13th Cosan day. Thank you for joining us. As Ana has shown you, we'll have a very full day. You will be interacting with all of our partners, our management team and we will be sharing with you what's happened in the last few months since the last Cosan Day and Raizen Day. We'll have time for questions. We want to listen to your concerns, your criticism, your suggestions because we'd like to continue to have an ongoing dialogue with you, investors and analyst. So set the expectations for today through a very important safety message. This is not negotiable to us. It's a value that allows us to keep operating. Our indicators are doing very well across the Board. This is something we focus on every day an achievement by our over 70,000 employees, making sure that we don't waste any time and we don't lose any life. So 0 accident is a huge operating efficiency proxy, policy processes and attitude by everyone who works with us. Our CEO say that this is not negotiable part of our variable income. Safety is key to our operations. As I've been saying that during the last earnings release call, we're very happy with our portfolio right now. We are present in 5 sectors were Brazil's competitive; mining, renewables, oil and gas, agribusiness and carbon economy and through companies that can extract as much value through energy transition and carbon. This is a tailwind and Brazil is extremely well positioned. In terms of geopolitics between the U.S. and China allowing to take the energy safety, carbon safety according to our own terminology are key to all nations and to businesses. So our companies are well positioned in these segments, and we will be driving business based on that. Each CEO have time to talk about it but I do have some spoilers so you have the message in your mind when we talk about it. About acquisition with the exception of some privatization opportunities, our acquisitions for expansion cycle has been concluded, we acquired Gaspetro. Our TSP has been concluded as well and we continue to expand Comgas. We still have a lot of room to grow with profit and expanding into new areas. We'll repeat Comgas playbook had comments different companies, we've seen the press results Nelson will be talking about this in detail and we have the opportunity to create a new market and service business. The combination, when the Santos terminal go into operation, the beginning of our JV with Orizon in renewable gas and biomethane and complemented by GNL B2B. We're going to have off and on grid operation, increasing our capacity, and that will allow us to have access to a greater share of the market. At Rumo, we'll continue to increase capacity to meet the growing demand. The Brazilian agri business has already surpassed the U.S. will be providing food to the rest of the world, and we need capacity to meet that challenge. And to conclude, our works in Lucas do Rio Verde in time and according to cost because that is at the heart of the agricultural expansion in Mato Grosso. Beto will tell you that we will continue to grow and to be profitable for many years. At Raizen, we want to conclude our 8 plants that have already been contracted on time and within cost. And Mussa will be showing you what's happening at those plants. Also making sure that we continue to increase yield. This will be a record ethanol and sugar crop and everything will reflect into better results with second-generation ethanol and different products for decarbonization that Raizen has in its pipeline. We will be recovering results in mobility in Brazil. We are not happy with our recent results and Mussa and his team are focusing on turning things around, not only in the next quarter, but during the whole operation so that Raizen can go back to the position it has always been in. At Moove, everything is going very well. Moove USA, the new name for PetroChoice has made us confident that our model can work in operations that are bigger and outside Brazil. So we will be replicating that expansion we had in the U.S. In Europe, Filipe has a lot of news for you and a winning business model that can be replicated and will allow us to grow whilst being profitable. And Cosan investments, we have rationalized our portfolio. We have focused our efforts on land and mining. Leo will be sharing the milestones we have for investments, we're on time with all of them and very optimistic about future results in both operations. So what we see is that you will be seeing complete focus on investment at our companies and invested companies, investments have been made and are being made. Capital structure is compatible with the growth and our over 70,000 employees, partners and clients are focusing on making sure the execution happens. So it will be all about execution and will have an impact on EBITDA and return on investments that will be compatible with the returns we've had so far. Our CEOs will be talking about the different business myself, Lewin and Marcelo will be talking about activities at the holding company, and we're focusing our energy at the holding company. We are focusing on working with companies on capital allocation within the business. Risk management, which is key given the project pipeline, our CapEx and all the investments that have been made and are being made to bring good returns. We're focusing on people. You saw our talent mobility, which reiterates our internal pipeline capacity, but also focusing on attracting outside talent to strengthen our ability to deal with demand. If you look at any of the comments, the main challenge is to have competent people to make sure that we can continue to expand our 8 ethanol plants with Mussa, the new distributors, Nelson is running, moves international expansion and other work that we are doing in land that is being supported through our Board to Vale. Innovation in products, second-generation ethanol, aviation fuel, trains with 135 cars, innovation and technology with the intensive use of artificial intelligence in many of our processes and routines so that we can carry on growing without increasing fixed costs. And last but not least, making sure that our partnerships are working. This is a new model. It has never been replicated in the Industrial segment. We see it in consulting and banks. So we're doing it right now with the Chairman of the Board, the founder and controller of the group. And this has been a very gratifying experience in decision-making, capital allocation and people development and a huge ESG agenda. We have great indicator news in terms of governance. Our goals are associated to our executives so that we can reach the targets we have set in climate change. We have been reducing our carbon footprint. 70% reduction in the last 12 months, increasing diversity across the Board and in the Board. Rita has been working on this to increase diversity and our ability to attract talent, social impact. This is key battle we'll be talking about everything we're doing in the Santos region, what we've been doing with the Raizen Foundation at our communities, working with the communities where we operate to make sure that everything is safe and inclusive. And I started my operation by talking about safety, and I'm going back to that. We are focusing on people safety, information security. This is a very important topic to us. We want to make sure that we are protected against attacks. Especially now that we are increasing our connection footprint, B2C through Shell box, Compass clients, investments being made by the holding company through the different companies to scale up that process. And to conclude, a key message is the portfolio is exactly where we want it to be, the size we want it to be and in the sectors we want it to be. We're making the most of everything Brazil has to offer and what the world needs, regardless of politics and what's happening in Brazil's economy, we can increase our ability to export clean and abundant energy through extensive natural resources. We have contracted growth. Our EBITDA and profit is growing with optionalities. We can play with our portfolio to focus on different areas that are a better opportunity for us and the ability to leverage our growth with the team that we have in place. Our management model is based on the competencies I shared with you. We're all working together through our partnership and everyone going in the same direction and execution with discipline, focusing on risks and liquidity so that we can go through tough times. Interest rates will go up. They will go down. The inflation rate will go up, it will go down. And you will see that regardless of these variables, we have been growing, we have been getting better results, and we have been increasing our ability to generate even better results in the future. So this is the backdrop for today. Thank you for joining us. we'll have lots of time for questions. Our partners will be here to answer your questions, to listen to your suggestions and criticism. And now I'll turn it over to Nelson to talk about our invested companies so that you know where we are, what we're doing and where we're going. Thank you.

Good morning. It's a pleasure to be here with you today to share yet another chapter of Compass' story with you. We founded it 3 days ago on a day like today at this very hotel in 2020. That's when we launched Cosan's new business platform. And I'd like to start our chat by talking about the gas market. Obviously, the word did have an impact, relevant impact. And in addition to the volatility it's brought to the global natural gas market and Brazil is no different. It also brought many relevant changes to infrastructure. Infrastructure has grown in natural gas liquefaction in the Middle East and in the U.S.. And in regas receiving LNG, especially in Europe. And that changes the dynamics of natural gas around the world. So LNG has become an increasingly more global commodity, it's increasingly more connected and increasingly more liquid. The LNG trading flow around the world has more than doubled when compared to last year. So this product is becoming a true global commodity. So what impact does that have in Brazil? How does that dynamic work? And how do we expect things to go looking forward? Let's start with demand. We believe demand will continue to grow because, first, distributors still have a lot of room to grow. We'll be talking about that when we talk about Commit and the free market is expanding, which will lead to even more competition. Same as we saw in the electricity market, 20, 25 years ago. There's also a demand for a new product that focuses on decarbonization, biomethane, which has been growing exponentially as well in the last few months and years, and that should continue to happen in the future. We now have B2B LNG. As Luis said, this is something where we'll start to work on as of 2025 when our terminal goes into operation at the end of the year. So we'll conclude the terminal at the end of this year and 2024, we'll be building the infrastructure. And as of 2025 we'll start our B2B LNG operation, making sure the gas reaches clients outside the grid, which is something we haven't got a large scale in this country. Thermal power plants -- we see thermal power plants not doing what they need to do. Reservoirs are historically high levels, but we can't forget that things change. It's been raining a lot, but the rain comes and goes. And when that happens, we need thermal power plants to keep the energy balance in Brazil. What about supply? How do we see the market? Petrobras continues to be a very relevant player in this country. The pre-salt has good prospects. There's a lot of discovery, a lot of development and investment is going into the pre-salt, but the transportation and treatment of that gas is complex. It's time consuming, and it requires a lot of investment. We see all the challenges Petrobras has been facing to deliver Rotor 3 on the Brazilian coast. So we're talking about complex and heavy investments. Bolivia is still declining. That's what we've been seeing in the last few years. I've been saying to you it's still going down close to 2030, it should be closer to 0. The gas Brazil is receiving from Bolivia. So we need to keep an eye out for that. I've already talked about the demand for biomethane. This is a reality. There are biomethane plants. We have recently announced our partnership with Orizon. As Luis said, it will be purifying biogas to turn it into biomethane. And based on that, we'll be able to offer renewable natural gas to our clients. And LNG continues to be the product that balances out what we need in terms of demand and supply security and flexibility to the system as a whole. So we believe LNG will continue to ensure gas supply, security and flexibility. So we've talked about the gas market and how we see things developing in the short and the midterm. Now let's talk about our business. Let's take a look at our strategy. So Cosan's gas story started at the end of 2013 with the acquisition of Comgas. Since then, we've been working to grow the company efficiently by making heavy investments in technology, in innovation, by gaining scale and turning this company into an even more efficient company. In 2020, as I had said, we launched Compass, a new business platform that aimed at expanding our operation and gas distribution to other geographies and to diversify Cosan's gas portfolio. So that did happen. In 2021, we acquired Sulgas through the Rio Grande do Sul state auction we took on Sulgas in 2022. Last year with took control of Gaspetro now known as Commit. And now we have expanded our distribution operation through our Compass business platform. So what's happening now in 2023. Now that our LNG terminal is going into operation, we will have more diversification. We'll be able to generate value and monetize on the natural gas molecule through the origination and sale of natural gas in the Brazilian market. And we will be talking a bit more about this business model in this segment during this presentation. So at the same time as our strategy has been evolving, we have also been changing the way we do things. And we call that a cultural evolution. Everything we do promote energy efficiency and safety. We focus on decarbonization with social responsibility. Talents, I think we should talk about talent for a minute. As we said during his introduction, Compass' investments have been contracted the assets are ready or close to ready. We're beginning to build them. So our main focus and challenge looking forward to execute everything we need to is here. We need to attract diverse talent with equality and inclusivity. And we're doing all that thinking about competitive gas, with transparency and corporate governance. This is how we do it. This is how we have evolved over the last few years in this company. And it's no coincidence that the way we do things is very similar to what we see in our ESG pillars. And here, we have a few examples. So we have 10 years that shows how we have evolved more clearly. Scope 1 and 2 emissions reduction in the last 10 years, operating safety, our LTIF numbers in the last 10 years have reduced considerably. In fact, we have had no accidents at all in any of our operations this year. Even though we do run a very complex operation, we're building a terminal at the Port of Santos. We continue to operate all of our businesses so far with 0 LTIF in 2023. Women's leadership, also incredibly important. We should move up from the 36% by the end of the year. We have been focusing our time and efforts on making sure that happens. We have been acknowledged by all these independent institutions. The first of which is American Gas Association for the fifth year, we have been awarded the safest energy distributor in the Americas. This is extremely important. And as Luis said, it's a proxy for this company's operating efficiency. The second one is the A minus score in the carbon disclosure project, placing Compass and Petrobras as the only oil and gas companies in Brazil to have this rating. Now let's take a look at our portfolio, starting with distribution. We make this happen through 2 companies. Comgas, you're all familiar with that, and Commit. In addition to distribution, which is highly organized, we have a new segment, marketing and services. This is an embryo company, and it includes a few assets. The terminal at the Port of Santos, B2B LNG. Once we have LNG available at the Port of Santos, we'll be able to transport it in trucks and take it to clients or areas that still don't have access to pipeline gas, biomethane, including the joint venture we've just announced and selling the product that comes from all those sources. So let's talk about distribution a bit more through Commit and Comgas. As you know, we acquired Gaspetro, and with that, we acquired 18 distribution companies. We have sold some along the way, we have sold some of our shares in some of them. So right now, we have 12 distribution companies in our portfolio. And we disclosed the material fact last year. We have sold 5 other distribution companies in the Northeast. So by the end of the year, we should conclude the sale of these 5 distribution companies in the Northeast, so that we can focus on our distribution companies in the center and the south of the company. So we're moving away from the Northeast, not because there are no opportunities there, not because these aren't good assets, but because we want to focus on what we need to focus to make things happen in the center south of the company. So that's what we will be doing. We'll be focusing on Mato Grosso do Sul, Rio de Janeiro, Sao Paulo, Parana, Santa Catarina and Rio Grande do Sul. Some Comgas highlights I've mentioned a few of them. We have over 160,000 new connections a year. We connected 164,000 new clients. Our service through digital channels has reached 93%. We can do it automatically without any need for human labor, and we do 1,200 of those a year. Our NPS, the net promoting score, which measures customer satisfaction right now is 75%, the highest across all Brazilian utility companies. And we have been investing in technologies. As I've said, we're installing remote meters. We started doing that in 2019, and we have been doing remote metering pilots which means we don't have to send anyone to collect the information. So we started with the pilot project in 2019. Right now, we have 190,000 clients remotely connected to Comgas, so we can read gas consumption online remotely and out of those 190,000 113,000 were installed in the last 12 months. So we're ramping it up. We're speeding these remote meter installations up. So this is just to show you that Comgas continues to grow efficiently, continues to scale up and to invest in technology. More tourists a year that were not connected to the gas network they became connected by natural gas. This last winter, 6 months before what we had committed with the Rio Grande do Sul government. Another important landmark at Commit is that we renewed the Compagas concession in Parana for another 30 years starting next year. So we have 31 years of concession in Parana. A few examples of what we are doing at Comgas in the distribution area. But we don't stop that there is a lot to do. thinking about how to share this information with you clearly and objectively and to share the type of opportunities we still have in those distribution companies. I have brought 4 KPIs that we look at. I could give you a number of other KPIs, but the conclusion would be exactly the same. What can we see here? When we acquired Comgas back in 2012 -- in late 2012, household penetration Comgas had was 13%, the margin share the company had. Both commercial and residential was 36%. We spent BRL 622 of OpEx a year per customer. And we had a lost time incident rate of 0.5. So 0.5 incidents for every 0.5 million hours worked. What is the situation today in 2022? So how did we evolve. We went from 13 to 24, 36 to 44. We reduced significantly the cost to serve customers more than half. And we improved our safety indices. So this is the evolution of Comgas. How about Commit? How does it stand? So the yellow dots we will show you the weighted average of the Commit's distribution companies. We still have a lot of room to grow. If we look at the range represented by the orange bars, we can see that the best Commit distributor and the worst. If we imagine the best Commit distributor went to the right of the orange range. The vast Commit distributor today is a little worse than Comgas was 10 years ago. So we have a lot to grow. This is a way we chose to show the potential growth and the volume of activities we can have in those distribution companies. And lastly, at the top right corner, I show you the residential penetration in the U.S. They are different, but I also show you Colombia, where the household penetration is very similar to that of the U.S. And I bring you Colombia because they have geographic, social, economic and cultural characteristics that are similar to ours. So Brazil could get there. Can we double Comgas? Yes, we can. So this slide shows that we have a lot of work to be done, not only at Comgas but also and mainly Commit to make it get there using the playbook we have developed operating Comgas. We spoke about distribution. Now let us speak about a new segment, marketing and services. Together, we look at all our assets that are being built like the terminal and that will be built like the LGM loading system via trucks, the biomethane plant and the trading of their product to end customers. How is that organized? On the one hand, origination. So the company will originate gas through producers of natural gas, be it in Brazil or Bolivia, through LNG using our own terminals like the Santos terminal and possibly third-party terminals and biomethane. We will start building a plant this year in the interior of Sao Paulo in Paulinia along with OXXO. We originated that gas to provide safety, flexibility and now decarbonization to different customers that can be connected to the distributors' pipeline through our pipelines or we can provide them the product off-grade through trucks, what we call B2B LNG rather. So we can offer 1 more service, 1 more business model to our customers. So this is a company that, on the one hand, originates gas molecules using natural gas, LNG and biomethane, and we sell those to connect it or unconnected customers to our pipeline. So this is a business model that will provide guaranteed supply, but also decarbonization. Company under gestation will be born, will be baptized, and we will start operating that company at the port of terminal this year. The first asset this company will have is the terminal. And I have brought a video and I will share some characteristics of that terminal. It's a 40-second video for you to understand how we stand. And there will also be a video at the end showing you the GNL vessel that will be loaded in the U.S., and that will arrive in Brazil with the first cargo of that product. So this is the terminal. It has about 400 -- it is 400 meters long end-to-end. We have the loading arms that connect to the vessels. Here on the right-hand side, we have utilities where we generate energy, fire systems. We are concluding the last drilling operation out of the total of 6, and this is the vessel that will be loaded this month, 300 meters long, about 12-stories high and will be anchored at the Port of Santos starting in October this year. From that terminal, we can also load GNL in trucks, and we set up the solutions platform to customers off-grade. Customers that consume diesel, LGP, fuel, oil and that are not connected to the natural gas pipeline that allows us to store the product at the vessel, we transferred their product to trucks that will be shipped to customers or even to structural projects, we can regasify using trucks. What is the potential demand for that business? If we look at the green area on the map between a 1,000 to 1,200 kilometers from the Port of Santos, we see roughly 100 million cubic meters a day potential looking at diesel, fuel oil and LPG if we see that a terminal has a potential of 14 million cubic meters, 3 have been sold to Comgas, and we want to sell another 3 to this model, we would be talking about shifting 3% of that demand. If we are able to conquer 3% of that potential demand we would increase the terminal use in another 3 million cubic meters a day. So that's the second business model. And the second asset of this marketing and services company. The last and third asset is biomethane. You know that we announced recently a partnership with Orizon where we put together the largest manager of solid waste in the country through their Paulinia landfill, and we signed a contract to produce biogas for 20 years, so they produce biogas for 20 years, and they will sell that biogas. So this new company which hasn't been baptized but it will be so shortly. This company will purify that biogas, turning it into biomethane that company, in turn, will sell the biomethane to Compass and Compass will be in charge of go to market to serve customers. Combining the biomethane with natural gas and offering our customers a safe alternative because gas supply cannot fail. And at the same time, with a decarbonization solution blending natural gas with renewable natural gas. We've been doing all that and implementing all this business model in a very disciplined fashion in terms of capital allocation. Over the past 4 years, we've invested roughly BRL 9 billion, which is the sum of the bars on the left. Out of the BRL 9, BRL 5 billion were invested in recurring businesses and BRL 4 billion were invested in nonrecurring businesses or new businesses. What are those BRL 4 million? Roughly BRL 2 billion at Gaspetro, BRL 1 billion for Sulgas and BRL 1 billion in the construction of the terminal over the past 3 years. We did that with very safe leverage, low leverage, generating a growing EBITDA over that period, 3.8 to 4.1. That's the EBITDA guidance that we have for this year. Also, over the last 4 years, we've already paid almost BRL 7 billion in dividends to our shareholders. This year, we haven't paid out dividends. But from 2022, 4 years prior to that, we paid out roughly BRL 7 billion, BRL 6.8 billion, to be very precise. Finally, looking forward, what do we see? In the Distribution segment, as I mentioned, Comgas, more of the same, more efficient, more investment in technology, continued growth strategy and connection of new customers. Possibly even more than the 160,000 that we are concluding today. Commit, to conclude the Northeastern sale, focus on the mid-South cluster, replicating all the playbook and the business model that we have of Comgas and possibly exerting the preference right when and if there are privatizations of those distribution companies. On marketing and services, we want to connect on grid customers through our pipeline, we want to capture off-grade customers offering LNG through trucks. We want to add renewable natural gas and biomethane to our portfolio to offer our customers our decarbonization solution and maximize all the options that we have between long and short, having origination contract and having sales contracts to customers. We manage to capitalize on opportunities. And that's what we want to do when that company becomes operational. To make a long story short, first, natural gas is absolutely needed for the LNG transition in Brazil in the world can take place safely, competitively and efficiently. LNG is being confirmed as a global and liquid commodity. Brazil will remain as a net importer in the short and midterm. In the long term, a lot to happen. In the short and midterm, Brazil will remain an importer of LNG. Our cultural evolution remains with a major focus on talent management, as I mentioned, but we must do it. With diversity, equity and inclusion without forgetting governance and operational safety. And finally, our portfolio once again is unique, diverse and now with 2 segments allows us on the distribution side, we can access value generation through distribution margins and on marketing and services, we can generate value by accessing the margin of product sales, gas molecules. It's a unique and diverse portfolio that has generated over the past years, consistent results, allowing us to keep on growing. This is what I wanted to share with you today. I now want to turn it over to Filipe to speak about Moove.

Being a global reference in lubricants. But what does the company need to become a reference. So us it begins by moving people and businesses so that it makes sense to everyone having consistent and continuous growth. Because to us, performance is not enough. We seek high performance in everything we do. We have a significant path and a promising future. 15 years ago, Moove started a business focused and specialized on lubricants that always performed well above the lubricant market, tripling our results in the first 8 years of the company. In 2017, we decided to make it differently. We decided to make it better and we realized that besides having a good performance, this business had a potential to be exceptional and to be a reference. We defined a clear strategy and we created a culture based on Moove attitudes that are behind everything we do with the business strategy and people telling us where we're going, but how we are going. And in our business, how makes a tremendous difference. And we take that seriously. Our culture has the ability to extract the past from people with the right people at the right time, focusing our energy on what really matters. By doing that, we created high-performance teams focused on the culture of efficiency to expand our businesses. Today, 5 years after the beginning of that journey, we are convinced that there is a direct correlation between culture and performance. Our results grew 5x in the last 5 years with this new culture. And now we proved our ability to integrate and transform new businesses. In the last few years, we've formalized our performance system, the transformation levers that extract more value and that are replicable in the businesses we acquire because more than the development lubricant products and services, we learn how to generate value to all stakeholders. Investing strategically in assets, people, processes, tools and brand. Integrating and promoting continued improvement to grow organically and exponentially in all the assets we have. By doing that, we want to take our formula to the rest of the world, becoming a global reference in lubricants. Hello, everyone. So looking at the past 15 years at Moove beginning with our investments in assets, new activities, trying a number of banks up until 6 years ago, where we were very intentional in creating an ambition to our business. We declared our focus and our priorities. We developed a culture that synchronizes the best in people we delivered a substantial path of results we are proud of. But above all, today, we have a performance management system that motivate people to focus on continuous improvement. This is what I will discuss. And everything begins with something that might sound obvious, but that is key and fundamental in our business. We are a lubricant driven company. The category of lubricants, come to think of it. The first thing that comes to mind us well, my motorcycle, my car, but it's a lot more than that. Large vehicle, construction vehicles, agricultural machinery fleet, any machine or equipment, durable goods, everything uses lubricants. Our products are everywhere. And that shows the complexity this category represents. It is a category that has a significant complexities that required specialization and continuous improvement because it moves as the technologies of those applications evolve. I chose to speak a little about how we work in each pillar of our value chain. In the lubricant value chain, what do we do differently? And why is it important to work on each pillar so that we can achieve the continuous improvement that is required by our customers. Everything begins with supply chain and formulation. Lubricants use 2 basic feedstocks. They are commodities, but they are specialties, basic oils and additives. Their quality is vital. Few global providers exist today. So you have to be very active. We developed very strong teams in those areas. Our strategy for supply chain and formulation cannot be considered just tactic. You must create intelligence, synchronicity the supply and formulation strategy must be connected to your commercial strategy because of evolution. So today, we created a lot of intelligence and this is what allows us to evolve outside Latin America. We have a strong relationship with those suppliers. Next at manufacturing. For over 6 years ago, we invested in operational excellence. We have plants all over our territory. We created a very strong methodology. We have engaged people with continuous improvement. We have process synchronicity and this is something that we are exporting. Logistics and distribution. As I said, our customers may range from OEMs and everything they require large industries, retail and service networks, small retail, you deliver and distribute all of those bulk products, 1-liter packages, 200-liter drums and 1,000-liter box. We have lots of demand, we require specialization. In Brazil, we have over 30 distribution centers in order to cope with that. So another key area that must improve continuously and we must meet the new demands that come from our customers. Sales, marketing and engineering. We are a business that has a classic B2C component, where we need a marketing team in the classical sense that will communicate with consumers. And we use the digital communication platforms available, but we also have a classic B2B team in the company. An engineering team that is quite knowledgeable proving application to customers. Some customers take a year in order to be convinced of the application. Our team of engineers navigate through an industry understanding all the pain points better than customers can understand themselves. So that's another different specialization that requires attention. Sales, I have today people serving the OEMs, the car companies as key accounts and you can't fail ever. And there is strong demand from those car manufacturers. We have industrial companies that we serve directly. And we also have an indirect distribution network to get to smaller customers. In Brazil, for example, there is a network that is an extension of Moove. We have an enormous interdependence, they are an extensions of our business. Their evolution is our evolution. They have access and connection to everything we do. It's an impactable network that we have today that operates smoothly. And lastly, we are a company focused on sellout. That's why we need services, efficient trade, marketing and strong after sales. Moove is very experienced in the world of lubricants because of our focus in this category. And we don't need to trade off with any other product line. And we earn the trust of our customers. Today, we are a positive agent to our customers because our products generate performance, productivity, energy efficiency, safety. As I said, there is less machine downtime if they have the right lube at the right time. The lube is not a relevant item in nobody's maintenance nonetheless, not having the right lube at the right time, not having the right lube on the shelf might become a significant cost of repair and maintenance. So we have a category that is a positive agent. This is probably what I have talked about the most in my last 6 years at Moove. This represents all of our business strategy, our people strategy. It shows where we want to get to and how we're going to get there. This is the basis for this company's cultural transformation. It engages and provides a common objective to everyone in the organization so that we can deal with the complexity of this industry. To do that, everyone has to be in sync. Everyone needs to know how to work in order to get there. And I am convinced that our culture is an absolutely key part of the incredible results we have delivered in the recent past. And it is the basis for the continuous improvement. We'll see in our very promising future. We've been saying that for years inside the organization and it's now echoing outside the organization. We have been attracting some excellent people to the organization, and they are not joining us just to be part of a business that performs well, but to be part of a business that has a culture that allows their best to surface. This is growing exponentially, and it will allow us to go beyond. If we look at our results, we see constant growth in revenue, our results have been continuously improving, considerable return on investments. Our leverage continues to be the same as it was when we were a very different size. It's improved a lot this year, something we have delivered at a time when a market is stable. We have been extracting value by working on each link of the chain, by creating intelligence, by creating knowledge and by evolving. Now we have a clear understanding of what makes the difference in this business. So much -- so that recently, we have created the Moove performance system, a bundle that starts with the implementation of our culture. The interpretation of Moove's performance system is the result of everything we have done in Brazil and in South America lately. Considering the assets we had, we have extracted organic value of the assets we had. We interpreted it and now we are exporting this formula to our assets in the north of this content, transformational levers, which is the tools that we have used to generate value. It all started with supply intelligence, which is key and operating efficiency, starting with lean, starting with S&OP, the art of extracting value from the revenue across the channels where we sell knowing all the prices, knowing how to sync the premium across the channels with the price point -- premium price point across the channels. That's the model we are exporting. And this is going on across the board at different levels of maturity in each one of them. Obviously, South America is further down the line. We've been in Europe for a bit longer. So we're not there yet, but we're growing and beginning the process in the U.S. This continuous improvement mindset is demanded by our business, and it can only happen because we have a culture where people understand it. They are flexible, they are agile. And when it's time to apply it, things are not rigid. It's about understanding the right time to make an investment or not to make an investment considering the people we have or haven't got yet. So Moove performance system has made it clear that we have an integration model through our recent acquisitions. Here are some examples. We've been in South America for longer. So since our acquisition in Brazil, we have grown by over 9 percentage points, our volume market share in a market that didn't grow in that time frame. Our brand awareness has improved considerably. We've worked hard on our brand here in Brazil. We've invested a lot and creating distribution centers across the country and making sure our distributors focus on sales and not on management, not on whether it's time or not to buy inventory. And what's clear to us in this market is that you invest now in lubricants and you will bear the fruit 2 or 3 years down the line. So you have to have patience, discipline and diligence to make it happen. We started a business way back when distribution base oils and it allows us to participate and to create supply intelligence. And now this is a very relevant business. It's evolved over time. We acquired Tirreno, which is complementary products that go beyond lubricants. E-commerce, we've been working on that for 2 years. We recently launched it in our distribution network and a service bundle for the whole industry. So these are examples of seeds we have sown today that will bear fruit down the line. In Europe, we started 10 years ago by acquiring a business in the U.K., Comma. We have made other smaller, more selective acquisitions so that Mobil could be incorporated in Europe, our biggest partner. And by doing that, we have learned how to work in Continental Europe, synchronizing and integrating our business. We have an integrated product offer. We have our own brand plus Mobil distribution. We have simplified and made the business more sophisticated. We are taking the Moove performance system there. We're integrated the areas that make sense. We're implementing a new ERP system at the end of the year. And that will allow us to plug and play new businesses down the line, so that we can take Europe to the same volume, dimension that we have in South America and North America, whilst always delivering increasing and better results over the years. In North America, we made an acquisition last year. We've been there for just over a year now. We're very, very happy with this acquisition. It's a very different acquisition. It's large, it's relevant. We did it within our own capital structure. Before we got to that, we had already made investments in the U.S. in a small organization. So we would learn how to work in the U.S. so that we would understand distribution in the U.S. that was Metrolub. It took us 3 years to learn and to be sure that we could take a bigger step, which was to buy PetroChoice, and we did it last year. And now our integration is happening very quickly. We quickly define who the players would be. We have the right leadership team. We have invested in areas that didn't exist with excellent people. We share the culture, which starts with communication, connection. People getting to know each other, departments getting to know each other, business is getting to know each other, learning how to work together, how to collaborate, how to build together and the business is growing strong. We have already defined where we're going to invest. We know what we'll be investing our CapEx in, in which processes, in which systems. These things will take time to progress, to grow, to improve, but we have strengthened our relationship with ExxonMobil. Things in the U.S. are looking up, because we're working more closely. We're very transparent. And we are building this market together. And it's the most important market they have. We're very happy with what we're already delivering. This is the basis for the business to come and it will definitely bring us amazing opportunities. And we've learned a lot in the process. We have gained muscle in this process of extracting as much value as possible from the assets we already had in Brazil, going into new markets, exporting the Moove performance system to our other assets. And now in the last 12 months, which concluded in June, that was our 1-year anniversary with PetroChoice, with Tirreno, and I'd like to show you some of the results. Our volume has grown. Our revenue has reached BRL 10 billion. We have close to 60% of our business in hard currency. Our EBITDA has broken the BRL 1 billion record, BRL 500 million worth of dividends and very reduced leverage levels. We're very proud of the results we've achieved in the last 12 months. And we see continuous organic improvement and nonorganic opportunities. So looking forward, we'll have even more organic improvement across the board, just like we did in our previously existing businesses. In short, we have a platform for growth that is very relevant. You can see where we're present in this map. The white circles for our market share in each of these markets. You see that in Brazil, where we've been for much longer, we have already achieved 20% market share in South America, which followed -- also show significant market share for the industry. We're growing in Europe and just beginning in the U.S. So there's a huge opportunity in our addressable market. And what's very clear to us is that lubricants require discipline to grow. You need to know how to invest in people, in assets and processes and tools and in intelligence. Customer care and the quality of products is key in this business. To conclude, our company focuses on lubricants. We have consolidated a platform where there are endless opportunities for organic growth, for inorganic growth. And within that chain I showed you where we operate, there are countless opportunities in each of those links. So we're very confident about our future. It's very clear to us that the future is bright and that we will continue to grow, because some things are very clear to us, and we are confident of our ability to grow. One of those things is that we're very knowledgeable about the global lubricant market. And it's very clear to us where to invest. We have a lot of discipline and accuracy in our resource management. Our departments are highly integrated. We make decisions together by looking at the whole and we're very humble and very diligent in everything we do. Our integration model more than ever unleashes potential very quickly, again, because we're looking at the possibilities together. We're not over eager. We don't jump into new businesses and destroy everything that was there before. Quite the opposite. We listen to everyone, and we bring everyone together so that we can do it together. The number of expats we have outside Brazil is very small, 2 in the U.S., 2 in Europe. The organization works together from our base here. And lastly, we have a high ability to execute and to absorb synergies. Our team is highly competent and it wants more. Thank you. And now, Beto.

Thank you, Filipe. Congrats Filipe. He's doubled the business in 2 years, and he joined the billionaire's club in 2023. So let's give him a hand. Let's give Moove's team a hand. You know Moove's thesis. Most of you have been keeping up with everything they've been doing. So I want to be objective, and I want to answer questions that are very timely to what we're going through right now. The first one has to do with our growth plan, what we've done, where we are, what are the prospects for the next 2 years, which business opportunities will present themselves to the company. So that's the first thing. Second question is in the very short term, how do we see the market in terms of pricing for 2024? How do we see the current environment? And the third question is about volume, especially for the next 2 years, what will the company do to support the growing demand, especially in the Brazilian agri business, which I'm sure has been surprising all of us year-on-year in terms of yield? We never get yield volumes right, never. We're always surprised. So those are the 3 questions I'm going to talk about. But before I go into it, I want to talk about the most important thing to this company, which is safety. You know how complex Rumo's operation is. All our 10,000 employees are obsessed about safety. They are paranoid about obsession about safety. And that's how we honor it to be. That is what has brought this company to the level it currently finds itself in. Rumo can be compared to the best Class 1 companies in the U.S. and Canada, the 6 top companies. In 2023, it's the first time in terms of LTIF by 1 million tons by mile driven. One number behind this safe operation top company. So Rockenbach, congratulations to your team for this amazing performance for placing our company on the podium as one of the three safest companies in the world. Congratulations. And I would say that this obsession is to become the safest company in the world. We will not rest until we get there. We are on the podium, but we want the gold medal for rail transportation safety. Still on safety, but now moving from rail to property. And [ Chris Brazil ], let me introduce him to you. He's been with us since the beginning of the year. He's our VP, takes care of people, ESG and safety. He's in charge of managing this process as well. So let me update you on how things are going in the Santos region after the criminal act, especially in the first quarter 2023, which affected our performance and our volume. We are tackling this problem on 3 fronts. First, we have a dedicated and qualified structure with the best technology to preempt problems and to avoid them. And when we can't preempt them, we want to be able to deal with them quickly, so they don't affect our operation. So we have a very robust team doing this. And the second one, obviously, is the support of public security, the state government, especially the civil and the military police have been helping us. This is a public security issue, and this partnership with the state government is key to deal with the problem. And the third one, which to us is the most important, is a long-term project that can change the social reality of the many communities we interact with. So safety and security is important, the police is important, but we need to understand the context and work to change the reality of many of those communities that our trains go through many times a day. There's a project. There are many partnerships using the Gerando Falcões methodology, may NGOs working in the Santos region. We're liaising with mayors. We're liaising with the state government, so that together, we can invest money, use methodologies to affect actual changes in housing, education, health care and job creation. We will be launching the project when the time is right, but we've been working on it since the beginning of the year. And this is a key topic for this company, not only in 2023, but for the next 5 years. It's a very relevant social project and as part of our ESG agenda. So my final message is, is the problem solved? No, it's not. But things are improving every month. Things are under control. Yesterday, we released our August volumes. I read many of your reports. Record volumes in our North operation. So this goes to show that we are only improving our management of the situation. But because this has to do with security and safety, I wanted to talk about it to you. Now let's go into our business agenda, especially our growth agenda. This is the company's portfolio. We have the South Network, West Network, Paulista Network, FIPS, a new regulatory concept. This is the company that manages the concession inside the Port of Santos, [indiscernible] our VP, who created this regulatory model and implemented this regulatory model is here. Rumo does not manage this on its own. It manages 80% of that, but it manages it with other rail operators at the Port of Santos, [ BRS ]. And they will be prioritizing all the investments that are to take place in the Port of Santos in the next 5 years. That's how important this 35-year concession is, and it can be renewed for yet another 35 years. So I just wanted to share with you what this new regulatory model is all about in the Port of Santos. So we have the North Network, Central Network and our new state concession. And this regulatory model is basically an authorization. So we have 7 main companies. So the West network, as you know, we've been working with the government to give back this concession to the granting authorities. We do not want that concession in our portfolio, and we're negotiating that right now. When will the negotiation come to an end? Very hard to say. Our Legal Director is here, who knows. But hopefully, by the end of next year, we'll be able to solve this issue. And we have been working on it for at least 2 years now. So that's what's happening with the West Network. The South Network, this green one here, 7,200 kilometers in this network. The whole company covers 13,000 kilometers. So more than half of the company's network is here in the South Network. We're also discussing this concession with the government. It's a very hot topic that we're discussing with the regulatory agency. This contract is due in February 2027. And we are hoping to be able to rationalize this network, so we can look forward and assess its renewal. I can't give you a deadline for when these discussions will end, but we are talking to the government through the agency and the Ministry of Transportation. So now that I've talked about our 2 networks in the South. If we look at where investments are being made, let me break down these 4 operations for you, starting with the Central Network. Pedro, our sales VP is here. He started developing this business. And since the end of the auction in 2019, he was there, we signed the agreement in 2020 and went into operation in 2021 until Rio Verde. So we did the first and the second stretches. This stretch here until Rio Verde is the stretch we operate in the Central Network so far. In July, we concluded the last Central Network stretch where you see between Rio Verde and Annapolis, that's what we were missing to conclude this and to connect the state of Sao Paulo to Marion. So we're going to have our first train. It's a general cargo, a Brado train, we'll have it now in September. This is a historical moment, because for the first time ever, we'll be connecting Sao Paulo going through the Minas Triangle, we're going to go through the State of Goiás, go through the State of Tocantins, and we'll get to Marion from North to South. This, as you know, started to be built in 1987. So we have finally connected the south to the north of Brazil. And in September, we'll have our first general cargo, Brado train on that track. The fact is that market opportunities in the Central Network are huge. You know the volumes in '23. We have 9 million tons with only 25% market share. In the markets where we operate, our market share ranges from 40% to 50%. So there's huge demand yet to come our way in the next few years. It's not just about grains. There's meal, there's soybeans, but there are so many products, the potential for general cargo, fuels, fertilizers, sugar, many, many products. There's the export market, there's the domestic market. We'll be exploring that in the next 2 years. So our team is very, very happy, not only with what it's delivered, the investments we've made, but also with the fact that we'll be exploring markets in the Central Network and the opportunities to come. So it's not just about demand and product diversity. And you all know this business, because we have the Central Network on the one hand and Northern Network on the other hand. So that's why brings our whole business to the Paulista Network. What's nice about the Central Network is optionality because you have a network that mitigates risk among the cargo options that you have to take to Santos. From a demand standpoint, you can choose the market, you can access more profitably, so using the Paulista Network using the Port of Santos. The message from the Central Network, there are 3: are we delinquent with the contract? We have 22% of the project delivered that has given the company more and more capacity from the moment the contract was signed. That capacity went from 45 million to 53 million tons. And when we conclude the project, our capacity will be 75 million tons at the Paulista Network in terms of contract fulfillment delivered capacity and the expected capacity once all the project is concluded. As in any concession contract, as the market evolves, there are things that must be discussed with the government. The other message about the Paulista Network is that we are not discussing the contract with the government, we are discussing one of the agenda of the contract. We are sitting to discuss if we can change priorities -- investment priorities to remove some at others. That's part of a 30-year contract. So that's the message that I want to leave you with the company decided to sit down with the government to look at opportunities of more capacity and more security in the Paulista Network, nothing new apart from that. So the Paulista Network is in line with our plans, all of them -- all of that will be taken to the Port of Santos. The first thing I want to share with you is what was done in the past few years and what capacity was added. So we went from 45 million tons, I'm talking about bulk capacity, sugar, grains and pulp, not other products, 45 million to 51 million in 3 years, we added 6 million tons in capacity. With these projects that have been built by Rumo in the previous model that is [indiscernible] model where we made the investment. And we wanted to get paid for the volume that companies shipped. Now we have robust FIPS governance. And for investments, what is each one share? So at FIPS, 81% of investments are the responsibility of Rumo just like 80% of the cost. So this is the number that is proportional to the volume shipped, and that's the control you will have in your governance. So when we look forward, what we see is, first, if you do the math, we have 80% market share at the Port of Santos for rail world, we can bring more volume to Santos using our installed capacity. So that's the first objective of the company to make sure that through the investments that have been made and mainly through operation and terminal efficiency, because this is a chain, we should be able to add more volume using the current capacity. And that's the plan for 2024. Now when we look forward, 2024 and 2025, with the projects that are being executed or that are in the FIPS plan, the capacity gain is much bigger. We are speaking about investments that somehow will bring important changes to the Port of Santos in terms of capacity and efficiency. The New Valongo is a new railroad matrix that will give more flexibility to come in and out of the right bank. STS-11, it's a terminal being built, opened in 2025. That terminal alone will bring another 16 million tons in capacity. Our terminal 39 is doubling its capacity, not to mention investments being made on the left bank. And on the right bank with the construction of the first railroad pair, that's the first one that will begin also in 2023. So our expectation is that in 2025, we will have another capacity level at the Port of Santos 2025 and 2026. We will continue our growth agenda in 2024 and 2025. We don't have linear growth. But the outlook for the system in the company, looking at the Central, Paulista Network and the Mato Grosso extension that matches what's being done at the Port of Santos. And all those investments must be coordinated to ensure that pipeline will receive the volume from origination at the transfer terminal to the Port of Santos. And this is the Mato Grosso expansion. I was looking at a piece of information yesterday. Mato Grosso accounts -- for you, that control sugar, Mato Grosso accounts for 56% of the soybean global trade that state alone. So that state is truly feeding the world. It accounts for 25% of the current global trade. In 2 years, Brazil plays 40 million tons of corn in that market, more than one Argentina in 2 years. Ukraine that was the third largest corn producer in the world, produced what Brazil grew in 2 years. So that's the size of the opportunity. That's why I say that projections are always mistaken, because we always underestimate what will happen. And we run after demand. But that's our work and our challenge, that -- those are the numbers for Mato Grosso. We have to make that investment as quickly as possible in order to get to the center of production to reduce the distance used by road transportation. What I mean to say is, is that the Lucas extension project moved from planning, from regulatory, from legal and is now in the execution department in the engineering department. The construction is underway. The first 34 kilometers are being built. There are 6 bridges that are also being built as we speak and next year, we will start with another 150 kilometers of construction. Our objective still is in 2026, we will be operating the Campo Verde terminal that is 200 kilometers to the north of Rondonopolis. And when you go up 200 kilometers in railways, you were not just reducing 200 kilometers of highways. You reduce more because that project is being developed with the state government for the highway state planning. The current administration already developed over 2,200 kilometers of highways since he took office. So we do need an integrated logistics project looking at all modes of transportation for growers to see efficiency gains. And we want to gain competitiveness, not against other solutions. We are looking at our own competitiveness in Brazil. Brazil versus the U.S. that is or was the largest soybean and corn exporter, and they are no longer so. Two months ago, U.S. became the #1 corn exporter in the world. We already were the #1 soybean exporter. We are now the #1 corn exporters. We must make sure that a country that, by far, is more efficient within the farm gates becomes more efficient, outside the farm gates. And we should have the lowest logistics cost to take our product to China at a lower cost than that the U.S. can do, because that's what generates a virtuous cycle. Logistics will become cheaper for the farmer and farmers will plant more, because they will know they will place their product in the export market at a lower cost. This is what we are doing with this project. This project transforms the competitiveness of Brazilian agribusiness. And that's what we want with the Mato Grosso expansion. Within that context, in a company that invests so much, [indiscernible] , our pricing and market intelligence director is not here. What is the right price for our services? The company must be first, look at the supply and demand balance and we see what is happening on the demand side, on the production side and the opportunities for us to close any gap that might exist among the logistics alternatives, so that our assets remain profitable that will allow us to continue our investments. You know these figures, the cost of the existing alternative compared to our competitiveness. So we have been working with the North operation of BRL 205 per ton, and we see a gap compared to the opportunities. And our objective for 2024 is to close that gap. We see a market with high demand, and that's what we are after for 2024. Having said that, in terms of pricing expectations, we know that for the next 2 to 3 years, we should have an increased CapEx level that will be announced in a timely manner. This is our guidance for this year, about BRL 3.6 billion, BRL 3.8 billion. Here, we have import investments from the Lucas extension included in that value. But the bulk of the investment will start in 2024. Our financial results are growing. We are delivering what had been agreed with the market, and we are shareholders, and we want to continue delivering what we promised. This is our model to generate the necessary cash, not only to make our investments, but also to maintain our leverage. Our leverage will remain at this level despite increase in investments. Our CFO, [ Arthur ] is here. And I'm sure that he won't let us move even 0.1 in that leverage. That's why you saw a divestment at the terminal without affecting our cash that translates into discipline in cash management. Divestment translates in investment discipline. So those are the financial results. And I'd like to conclude with some messages. First, about safety. We will become a global reference from a safety standpoint. This is an obsession of this team. We speak about it day in and day out. It's part of our culture that protects people. It protects the more than 2,000 operators and we are a company with operational excellence. Without safety, you can't execute processes with discipline. That's proven in any operation. Focus on execution to increase our ability. We see a growing demand. We want to be competitive, and that's why we must manage capital and cost. That's key for us to gain competitiveness as you -- our unit costs drop year after year and results with financial discipline. So that's the message about Rumo. This is our trajectory. That's what we want. I want to take this opportunity to thank the fantastic team this company has. And I wish you an excellent Cosan Day.

Excellent, Beto. Thank you very much. We're going to take a quick break, stretch a little. We will be back in 15 minutes. At 48 past the hour, we will be back. We will have only one Q&A session. I'm sure that you already have your questions, but wait until the end of all presentations. We will have a Q&A session with all partners on this stage. So we will be back at 48 past the hour sharp. [Break]

[Foreign Language] Visit us, you will see the plant operating capacity, 80 million cubic meters per year, the other 2 plants next year, the [ Bara and Uni Vale ] plants, one in [indiscernible] and the other one in [ Aracatuba ] and the other 3 plants, 5 being built simultaneously. Now let's talk about sugar. The news is that sugar prices are very high. This slide shows the price of sugar in rise. And the blue bars show our stock to use ratio around the world. So since '18, '19, '20, stock-to-use ratio has been dropping. Right now, is the lowest in the last 20 years, which obviously drives prices up. Since the IPO, I've been saying that sugar has to structurally change prices to attract more production. It's not an elastic product. Demand does not fluctuate with price. Demand does not go up or down depending on whether prices are low. So it's very right to get -- it's very easy to get production levels right. It's going to grow at 1.5% a year, no matter what. What makes sugar prices fluctuate is demand levels. India used to be a large producer. It still is used to be a huge exporter are producing ethanol from sugar. And with El Niño, there's a reduction of yield in India. So we're going into the first El Niño year. Inventory levels are very low. India is putting more of its sugarcane towards the production of ethanol. So it's still a high price cycle for the time being, and that's important for Raizen because if you look at our investments, we have a lot of investments going in this year, next year. So for '23, '24, '24, '25 crops. Raizen's CapEx is still very high. As of the '25 crop, it's going to start generating a lot of cash. So going through these high sugar prices will help our balance sheet. So risk is looking very low for us next year. Our prices are above this year. I don't see any scenario where prices will go down in the short term. So we should get some really interesting results on sugar for the next few years. And structurally, sugar is going to go to a different level. So sugar is a priority to this company. The market is in our favor. We will serve the high price wave. So sugar is good news. Now let's talk about power. If you don't remember, Raizen is a huge power producer, and there's a great opportunity to explore this market in terms of growing our client base. This is the number of clients we have right now. At the beginning of September, we reached 40,000 clients. Raizen is one of the largest operators in the market. There's a large difference between the regulated market and the free market. There's a lot of margin out there. We did more than BRL 1 billion last year. If you'll remember, the Power division profits have been growing consistently, not just in generation, but selling the product, and this isn't through speculation. I'm talking about long-term contracts with clients, bigger margins and bringing more clients to the market. So we should have more than BRL 1.2 billion. The company is growing. On the right-hand side we see production, but we are focusing on clients, not on production because that's where we believe the value is. I'm just highlighting points from Raizen day. We're very well positioned. Now mobility. Let me talk a little bit about the mobility scenario first. In the first quarter this year, so April to June. If we look on the left, we see imported diesel and diesel produced in Brazil. There was an increase of more than 16% compared to the first quarter 2023. Petrobras had bigger margins, more capacity to produce more diesel than we had expected. And you see the imports. Then you see the difference between imported products, diesel, S10. That's the orange line and the blue line is Petrobras price. So prices have been dropping since April for 29 consecutive weeks, and that affected our inventory considerably. But international prices were lower until July. So there was a tsunami of imported products during the arbitration. Now as of July, things have reverted, imported products are more expensive. Now more expensive imported products. So those people who have quotas, that's beneficial like us. So all the problems we had in the first quarter have been translated into tailwinds in the second semester. So the product is scarce and margins are better than in the second half -- than in the first half of the year. If we look at aviation fuel, prices have been dropping until July, and now it's going the other way. So prices are dropping. We have inventory, but the market is more streamlined, and we have good return margins. Our margins have been improving considerably in the second quarter compared to the first. I always like to say that the most important thing for my mobility team, I've just changed our mobility structure. We brought in [ Leo ] so he used to be our CEO in Argentina. He has a lot of experience in Brazil. He's in charge of the operations for Argentina, Brazil and Paraguay under one single umbrella. Total focus on execution. We know how to do things. We have a great brand. We have a great team. So we need to focus on execution. The second important point is profitability. Our reseller is the second most profitable in Brazil. We are delivering high-quality products at affordable prices, it's still very profitable. That's why our branded shell, market share continues to grow. Optimized supply in the first quarter, we didn't have the best molecule supply in the market. We didn't have access to the cheapest molecule now in the second quarter. Things have gone back to normal. We have the best molecule, the cheapest molecule in the market in the second quarter. So that's changed from the first. Expenditure discipline. We have more than 11% reduction across the Board, we are eliminating between BRL 901 million CapEx that we're reducing in investment and close to BRL 500 million in costs across the board. And this can already be seen in better margins in mobility. This is my Mandala. First, we have the most valuable brand in the industry in the last 9 years, Shell, unbeatable. If you look at Shell V-Power, 23 percentage points over the competition. We have the best profitability. We have the best service level to resellers. More than 90% of the market is less than 80% lubes. Our lubricants are doing very well this year. Record results in terms of volume compared to last year's Shell Box, over 500 million clients. Remember, I was talking about 2 million -- sorry, not BRL 515 million. We'll have over BRL 10 billion worth of transactions going through Shell Box proximity in September, we'll be reaching 2,000 stores, especially OXXO is really doing well. Femsa, reseller and shall recharge our future, doing really well through our partnerships. So our fuel and mobility business is well under control, and you will be seeing much better margins looking forward. We're catching up. It's not been an easy year but I am confident that we'll be able to deliver what we promised the market this year. Discipline, let's talk about capital structure. Our EBITDA has been increasing consistently. If we look at our expansion in the past 3 years, it has a lot to do with this new growth phase. And this is a record CapEx for '23, '24. And the trend will be for it to go down. We have to deliver the new plants. We're at our investment peak, but with low risk. Net debt always under control between 1.7 and 1.8x the EBITDA also under control. Just to remind you, second-generation ethanol has very low risk as part of that. When we look at the net debt versus EBITDA, when we look at second-generation ethanol, things are different that's why, and you will be seeing this from now on to bring E2G contracts forward so that we can close here with free cash flow positive even with all the events. So that's our capital structure. And to conclude, recapping. I talked about yields, agricultural yields, we're doing really well. You can expect really good numbers coming from Raizen from now on. E2G, we'll see how our plants perform, but there's a lot of demand in the market. Our plants are on budget, on time. Sugar with great fundamentals, 100% of our volume is being delivered to our end users. There are no trading companies in the middle. We talked about the increase in our client base for power and increase in investments, and we are expanding our mobility network recovery, profits and our commitment is to show you that Raizen will go back to the level, it should never have left. Always following our commandments, which is to have any investment associated to one of these pillars. Beto, Rafa, Carlos said our indebtedness will never move and our ability to invest. We will continue with our growth pace in the company. That's it for me, and I'll be here for the Q&A. Thanks, everyone. Leo.

Good afternoon. Good morning, actually. As Ana said, last year, I had COVID,so I couldn't be here. Let me update you on Cosan investments. That has been our last endeavor as a group. That was roughly 18 months ago. So let me update you on that. We've done a lot. Some things are more high profile. Others are more internal, but it's been a lot of work, and this is a mid- to long-term project. Cosan investments came from the idea that our whole portfolio had a potential to grow. We were very clear about each of our businesses, and you could see that from the previous presentations. But we knew that the group as a whole could do more, as Henrique said in his introduction, we discussed some key industries where Brazil has structural advantages. And as a group, we acknowledged our strength. So we knew we could operate in some of those industries. So we discussed creating Cosan investments, which focuses on growth and portfolio diversification. There are also capital allocation guidelines, always focusing on risk and return. A lot of discipline. That's part of our DNA anyway. And these investments would have to be major investments where we could make a difference and get good results without losing optionality. It's almost like a dilemma, and we do that. You can start small, try it out and then scale it up or start big with optionalities to make adjustments. We discussed a lot. And Vale is a case in point. We work with the rightsized team, highly qualified, highly focused on generating value. And that's what Cosan Investments is all about. We've been around for just over 1.5 years. And in that time frame, we made a few choices. We moved away from smaller things and decided to focus on what you see here, basically mining, land. I have one page about each to update you on our progress and what's to come. A specific greenfield project is the Sao Luis port, you haven't heard about it in a while. So I'll update you on that and our partnership with Fifth Wall, the venture capital fund, BRL 21 billion were invested or committed in the last 18 months. Vale is our biggest stake, BRL 17.4 billion, close to 5% stake. Land, we have 30% economic stake in 3 funds. The Sao Luis Port is 100% ours and Fifth Wall is an investment through funds. Now about Vale, this is our most recent and biggest investment, BRL 21 billion deployed and we're also trying a few new things through as a group. The main ones being for the first time ever, we do not have a controlling share in the company. This is new to us. We're trying it out, but it is a liquid asset. It's irreplicable. And when we discussed the strategy in depth, we saw the potential for energy transition and everything that comes from it, steel mill, decarbonization and base metal electrification. So we saw that in mining, among the players Vale had an interesting price point characteristics that led us to believe we could make a difference and help. This is not a controlled asset. And the third point is that we will be doing that through cooperation, collaboration and influence through the Board. Luis Henrique joined Vale's Board and that is how is we will be unlocking the value we see in the company. It complements Cosan's portfolio. It pays out dividends. That is the nature of this business in hard currency. That's also something we wanted to be more exposed to. And we talked about demand, but there's also supply. We also understood the mining supply and demand fundamentals. We'll be exposed to that. We've heard a lot about China. That's the demand side. And it's quite bearish, and there are reasons for that. But there's a supply side as well and all the complications involved in a mining project, all the costs involved as well. So you need to consider both sides. In our opinion, we believe there's a lot of long-term fundamentals, and we really believe in it. The last but one bullet. So this is a different way to invest for us, and this is a new industry. We're talking about diversification. We were big 17.4 million. So we needed to be careful of the risks and to keep our optionality. The capital structure, the financial structure we set up and Lewin has mentioned, translates that its purpose is to give us the required time to make sure that the investment assumptions can be confirmed or not. And above all, as they are confirmed, then we will achieve direct growing, direct exposure. So far, all the assumptions we had and we haven't put them all down here, have been proven. So we're very happy, but it hasn't even been a year. Vale is definitely a great asset. We really believe in the company, in its potential, Brazil -- potential, and we want to be part of it. We will be bringing you news over time. And I think Lewin is going to talk about that within our optionality model in our optionality structure, financial structure, we saw a window of opportunity to exercise part and to increase our direct exposure. So that's just a small example of how the capital structure works in our favor. When we believe in the thesis, we will increase our exposure. Land. Radar, you all know Radar. We have Radar, [ Danos ] and Talos. Based on our discussions and Brazil's potential, Brazil talked a lot about Brazil's potential and its magnitude compared to other markets when it comes to agriculture. Obviously, we came to the conclusion that it was the right time to go back into the Land business. You all know this. You saw it last year, we left and we went back in. We're very familiar with the portfolio. It's close to 320,000 hectares under management. In our opinion, this is the biggest and the best portfolio in terms of market value and the right, the lower right-hand corner, you can see the different areas, 53%, 44% for grains, fibers and sugarcane and others, that's 3%. But it's a good split. The location is good. In that time frame alone, our returns have increased, but it has to do with the fundamentals Beto mentioned. And above all, we see that property by property, we can recycle our capital. As you see, a farm reach its potential and there's a new and better way to allocate that capital. That's one way to manage that asset. Again, optionality and maximizing value. But in the same portfolio, and you see the key here, grains and fiber still have huge potential and others are other crops that we can still explore. So we see an appreciation and the possibility for other investments such as irrigation and new crops. We can also leverage our position when the time is right. The Sao Luis Port, we touched on this. We announced that close to 2 years ago, we acquired this greenfield project. We signed an MOI with Paulo Brito to potentially create a mining joint venture in the north and he would come in with the assets, the mining assets, and we would come in with a port. It's MOU. It's still in time but the port has always been an option and a stand-alone asset for Cosan. So what's happened is that things have progressed considerably. The port is practically ready to be built as of next year. So some characteristics of this asset, 200 hectares of license area, 6 kilometers from the railway Carajas Railroad is very close to Ponta da Madeira where Vale operates. It's not going to be difficult to build at all. It's only 6 kilometers away. All you need to do is have the tracks going to the port. There were over 260 Land issues that have been settled. There are only 3 pending issues and our team should be concluding those soon. At the same time, obviously, we've done all the engineering work both for navigation and the rail that fell 3. We know what's coming. The potential for the sport is close to 115 million tonnes of cargo a year. When we acquired it, it was going to be for general cargo. We decided to change that to ore. So we have some feasibility studies and the potential is of up to 150 million tonnes in 2 berths. It's modular. Obviously, we're not going to start off with BRL 150 million. So FEL 3 is Phase 1. 15 million tonnes associated to the potential Phase 1 if the joint venture with Paulo Brito goes through. So as of next year, we could start building the port. And it's a very flexible port when it comes to navigation. It can handle large vessels. And when the demand is consolidated, that will happen. So we've made great progress with this asset. We've added a great deal value to it. And next year will be a go no-go year with regards to whether we're going to build it or not. I mentioned Fifth Wall last year. No major news. But just a reminder that we started looking at major energy transition trends, in terms of technology. We invested in a climate tech fund. They focus on early-stage investment, energy storage, which can be split into hydrogen and batteries but through this partnership, obviously, we're screening everything that's happening, everything that's going on in energy transition. It's a small deal. We invested in hydrogen. We've already had a return on that. But the idea is to be on the technological edge of topics that are crosscutting in the group's portfolio. We're talking about hydrogen, battery and a lot more about energy transition. So anything that is going on in terms of threats or potential, we want to be aware of. So that was a quick update. I just want to remind you of our objectives. With this new endeavor, we aim to maximize value through our tool kit, which is the Cosan management model. We're testing new things. We're trying out not being the controlling shareholders for the first time. And we also have options in terms of risk and return, new business possibilities, leveraging new businesses and also taking into account Brazil's potential, which we believe hasn't been explored in full yet. So that's it, a quick update for me, and I'll be back for the Q&A session. So I'll turn it over to Lewin now.

Good morning, everyone. Once again, I would like to thank everyone for joining us today. Now before I begin my presentation on financial management, I would like to speak a little about the modeling guide at Cosan that we published last night. That guide purports to give even more transparency to the market, showing the vision Cosan has and supporting and helping investors, creditors, supporting the rating agencies to understand the company's cash flow. The guide has a cash in and cash out vision, it's rather simple, and it connects the cash flow data to our financial statements. You can download it at our IR website. And if you need, you can contact me. Beginning my presentation, let us start by talking about EBITDA under management and a consistent evolution of the EBITDA over the past 10 years. As Luis Henrique mentioned, we grew fourfold in the last 10 years. And growth is not concentrated in a single company. It's broken down each into each asset of our portfolio. And our portfolio is rather resilient. Our portfolio has grown despite the current volatility of our market. Finally, their growth provides very robust returns. That return is tied not only to the intrinsic value of the companies, but also the consistent dividend payments of our portfolio, reinforcing, raising encompass. I'd like to give you 2 examples. One of them comes from Moove. Moove is a very interesting case even using the multiple from 2019, that was the time of private placement and outdated multiple where the idea of Moove's international expansion was just an idea. We already see a return of 20% to Cosan. Another example mentioned by Leo is Land. It's a classical, an important example in portfolio management. When we needed capital, we divested a stake, at Radar and when we saw we had capital and it was the right time, we reinvested. We bought a relevant stake. And in a short period of time, as Leo said, we brought a return of 25% of our portfolio. Let us speak about Cosan's financial management based on a tripod liquidity where we always look for capital availability, terms and cost, risk management, always focusing on optionality and flexibility. You've heard those words a lot. And the return to our shareholders. Let us speak about liquidity. What is the biggest source of liquidity to Cosan? Dividends of our assets. The assets in our portfolio. You see that in the past 10 years. We received dividends consistently quite relevant dividends. And in the past 2 years, something important happened. We diversified dividend sources. You see the relevance of Raizen and Compass in that liquidity. In the last 2 years, we diversified receiving dividends from Rumo, Moove and Land. And finally, in this past year, we received dividends from our latest investment, Vale, increasing the liquidity source to our portfolio. Still about liquidity, but also speaking about risk management. We have a continuous management of our indebtedness. This year alone, more than BRL 4.5 billion were raised in the market which allows us to have an amortization schedule that is quite comfortable and very long average terms of 5 years. You can see that the next tranche to be paid is 2024, and we're 100% prepared to face that first power. Leo mentioned, we paid BRL 300 million of that first tranche and we have the on right of derivatives. The next tower of concern is only in October 2025. I'm not going to give you examples of Vale, but this is something important in terms of risk management, be it in raising resources or in the structuring of our activities. This is a high liquidity investment. I'd like to remind you that we placed below the market radar in 2 weeks, the structure of almost 5% of Vale. Should it be needed, we can undo that structure quite quickly. We created a balance between direct activities. We are comfortable in taking risks if shares go up or down and colorize stake where we created a structure to protect ourselves from a potential downside of Vale shares. We also created a structure to raise resources giving us flexibility in the case of preferred shares. Why flexibility? Because we pay preferred shareholders, depending on the cash flow of certain companies in the group. And up to the maturity of the next change, we can undo the structure, return the shares or we can wait until the maturity of each tranche and pay them or defer them. It's easy to be deferred or you can -- you redo prices and defer payments. I'm not following the sequence of this presentation. Another point on risk management, deleveraging. All group companies are looking for deleveraging. 2 simple examples that were given by the CEO's, Nelson mentioned the divestment in some fuel distribution companies, reducing leverage. And in the case of Rumo, the sale of a stake at T16 and T19 and you can increase that leverage even in 0.1. In terms of consistent payments to our shareholders. We are a very good example of balance between growth and yield in the next 10 years, Cosan paid out dividends consistently and also performed above the market in the past 10 years. I'd like for you to leave with a few messages. First, we have a diversified portfolio, bringing growth and return, liquidity discipline Luis touched upon it, liquidity's extremely important in a volatile environment we live in, risk management with flexibility and optionality. And finally, we will always look at the consistent payments to our shareholders. Thank you all. I'd like to turn it over to Marcelo Martins for the next presentation. Thank you.

Good morning, everyone. Thank you for being here. This is a very special day because besides having the opportunity of meeting people we don't meet usually, it is an opportunity to reflect upon a number of topics. My role here is to close the session, but I'd like to take this opportunity to touch upon some important points that were a priority in our discussions this year that raise some questions. And today might be an interesting opportunity to try and solve those -- answer those questions and discuss some points we hadn't discussed earlier on. Just to summarize what was discussed so far. You already heard from the different companies. We have a very diversified portfolio with irreplicable assets, Brazil has a huge competitive edge with levers that allow us to have appropriate risk management looking at Cosan as a portfolio management in areas where we have the greatest potential in the country being leveraged. We have exposure to Brazilian demand that's where we have our biggest competitive edge exposure to global demand where we have confidence to be competitive and to leverage that global demand, hard currency, not every business has that exposure, but most of them. And which is common to all our businesses, sustainable development, always looking at decarbonize to clear vocations Brazil has and that are recognized internationally. If we look at the relevant deliveries, as compared to what was said last year, Raizen advanced a lot in E2G. You saw Mussa presentation. We are close to the opening of the Bonfim plant. Record ag yield, if we look at everything that was delivered, we are living the best moment of ag yield at Raizen in the case of Rumo. The beginning of the extension phase at Lucas [indiscernible] and also proactive portfolio management. We made some divestments. We have looked at other growth opportunities clearly aware of capital cost, the shortage of capital and of investors' interest, a minimally acceptable return compass expansion of distribution with the recent acquisition of Gaspetro, new segments, marketing and services, you saw at TRSP unthinkable some time ago, a value lever that is key to Compass that gives us trust in the future of the company that will generate value. Moove, consolidation in acquisitions, EBITDA above BRL 1 billion. Congratulations to Filipe and his team. He managed to do it. We had a discussion on that last year when he would join the $1 billion group and he did it. And what's incredible is the speed, consistency and how we grew that company. Luis and I have frequent interactions with ExxonMobil, and we are a strategic partner to ExxonMobil in the world. They know they can only grow and improve the sector if it's in our company. We know that. They know that. And what we saw in the U.S. gives us the trust that we can do more, 3% in the U.S. market. It's very relevant. 20% of the ExxonMobil volume in the largest market in the world. It's even more relevant. That gives us the possibility to do more. Obviously, with the necessary deliveries, with the necessary profitability. But I want to recap something important. I always mention that in our one-on-one meetings at Cosan. If you remember, we had a depreciation of the currency when we did the ASO operation in 2008, we were hedged. And ASOs acquisition ended up being $500 million. ASOs acquisition that originated most of our portfolio today. Out of the $500 million, the lubricants business had a negative EBITDA came for free. I had a discussion with ExxonMobil, and they asked us to allocate in lubricants, and I told them the value I can give you is 0. We don't assign any value to a business with a negative EBITDA. 15 years after if we do the IPO of Moove, it will happen at some point based on the company's EBITDA and other indicators, it might represent 4x in dollars what we paid for the acquisition from ExxonMobil, 4x the value, something that came with a negative EBITDA in a 15-year period. To me, this is one of the best cases where value was constructed. Land, we increased our stake. We believe the opportunities in this segment. Obviously, there is limited growth. We like to have that exposure according to acceptable terms as far as risk and capital allocation are concerned, and we have active portfolio management. Vale, I don't have anything to add. The most recent event was Luis and Ric election to the Board. This is just a summary of our portfolio. But there is a topic I'd like to discuss that I believe is important. Capital allocation and capital structure. I think we are a risk manager basically with operational competencies. A unique combination. And perhaps that's our main competitive advantage if compared to other companies in Brazil. We have a financial mindset. We fundamentally look at value generation. We are fully aware of capital limitation. I'd like to remind you that the capital used for us to begin our investments came from the IPO in 2007 ever since all the group growth came based on leverage and our ability to generate dividends in our business. This is the model that we want. And this is how we want to keep on growing through value generation on top of our portfolio, the ability to pay dividends and our leverage capability, which is key. When we bought Comgas, we put BRL 500 million in capital roughly BRL 3.4 billion came from leverage. With the structure that was replicated a few times even for the Vale operation now. Having said that, we are aware of capital shortage. We have very active management of our exposure to several markets. That involves weekly meetings on cash, cash generation and in our business, ability to pay dividends, leverage, hedging and other alternatives that you were familiar with, we even spoke about an increased stake at Vale. And the company's ability to leverage their ability to access certain markets like the equity market and how we use resources, balancing, dividends and value creation. This year, we discussed the possibility of having some equity operations because of the opening of the market and the possibility of having a very narrow window in this market that might present very few opportunities to access those resources. We decided to increase our stake room. There was speculation that we're about to increase our capital. First, a relevant point to be addressed. Flexibility has always been the name of the game. Having authorized capital is important because it gives us the possibility whenever there is a market to access the market. We know that the market opportunities come and go. We have today a liquidity situation at different companies that is quite privileged. Rumo must end the year with approximately BRL 8 billion or BRL 9 billion in cash. Remember that's the company that most needed capital in the history of the company. We have no interest in having capitalization at Rumo to raise resources and to sit on that cash. We are not going to do that to Rumo. We look at the opportunity to intelligently use resources at the right time. It won't happen. Moove's IPO, which is another possibility will be done at the right time, but we have a partner that wants liquidity and the Compass IPO where we had a bad experience because we showed the market that we had market creation in the market and believe it that value came over time, but there is even more value. And we don't think this is the time to performed the IPO at Compass. So right now, there is no need on the Cosan side that controlled companies have access to the equity market. Next year, it's a different story. If we think there is an opportunity, be it for IPO of any of the companies, possibly something to Rumo that does seem to be the case, we would do it. Flexibility has always been key for us to grow. So what I'd like to tell you once again is that we understand shortage of opportunities, and we always want to look for alternatives when they are there and not when we need resources. However, we have no desire to generate any dilution to Cosan at an inappropriate price. And all our assets today are negotiated at inappropriate multiples, and that gives us an opportunity to buy more shares and not to sell shares. So this is a relevant point. I'd like to emphasize to you. And as a last point, Vale structure was created to give us optionality. Even if we have those towers in those moments where we will be able to increase our stake. It is unclear to us if we have to do it to increase our stake in the company, but we know that [ color ] as we had opportunities or optionalities that will be used over time. I thought it would be important to go over those points. My responsibility is to look at portfolio management and that entails risk management and capital structure. With that, just to close my participation, I just wanted to list the points that are clear to you. We created irreplicable portfolio. We will always look for optionality in everything we do. We have a management model that is anchored on that responsibility framework based on risk management. Nothing will be long-lasting if we can't consolidate this partnership we created a little while ago. The partnership today is more active than ever. All partners do have a relevant part of their stake exposed to the Cosan risk. Our discussion at the engagement level with a relevant topic for Cosan in our portfolio is quite frequent. Everyone is engaged and participates in strategic and relevant discussions in the company. And this needs to remain so and grow over time. And that's the opportunity for other people to enter the partnership irrespective of being group CEOs or not. This is what I wanted to share with you. We will now move on to the Q&A session. Thank you.

While we wait for the CEOs to come, I would like to invite the partners to come back to this stage safely, while seats are being placed on this stage. I have an important reminder. Your contribution and feedback is very important. We have tried to incorporate what we hear from the market in our reports. So I'd like to ask you to fill out our satisfaction survey. Every year, we want to provide an even better event. So please do contribute with your feedback. Are we all here? Lewin would you like to help me? Okay, questions. So microphones are already available. Just raise your hand, and we will ask someone to give you a mic. State your name, the company you worked for. Please restrict to 2 questions. We have about 40 minutes. So 2 questions per person, and we can start.

Thank you. Congratulations for this event. Isabella Simonato, Bank of America. My first question goes to Luis. Your investment at Vale was quite different. Not thinking about the asset but the way it was done, the percentage you have of the company and the fact that you're not the controlling party. After a year, can you share with us what the experience has been like in this management model where you have a seat of the Board, but you are limited to that? And when you speak about benefits or unlocking value at the company, could you give us an example what you understand to be a major opportunity to unlock value at Vale. Something we've been asked is, what can be done that might be transformative that would offset commodity volatility because that's the market where the company operates. And the second question, as you mentioned, Moove has been a very important case to you. And unlike other companies, internationalization worked very well. The business abroad is super relevant. Every business has restrictions. But what lessons can we learn? Can other businesses expand abroad? The case of SAF, ethanol is no longer a domestic product. It can become international, even gas. What can we think about Cosan abroad?

Thank you for the question. Isabella. Obviously, I have limitations to speak about our company because of our stake at Vale. So I'm not going to give you details. What I can say, Isabella is that my presence at the Board has been very productive with a lot of engagement among Board members and the Executive Committee. I think the dynamic is working well so far. It's been very constructive and the value levers that we saw at the company are the same that we defined at the beginning. Let me give you an example. As everything we said, it has to do with the way we organize these structures and how we allocate people to specific roles. The base metals journey, which is still a journey is important because it has attracted an Executive Chairman, someone with vast experience in the industry, that did quality work at Anglo American, and he knows the geography where the company operates, but also the product categories. And you have the possibility to see that. So it's pretty much along those lines of allocating capital and human resources with governance and interaction between the Board and the management, and we do it productively. And these are early days, but so far so good. Now as for internationalization, I don't know if Nelson or Mussa would like to speak to that.

Isabella, if you take E2G, it's a clear vehicle today. We have conversations in the U.S. It's a proprietary technology, and it makes sense to look at other places. SAF helps a lot because demand is there. We can't share much, but we are very active in Florida and Louisiana to look at the expansion of E2G always related to sugarcane in countries in Thailand, India and Australia, where you have sugarcane and sugarcane bagasse. Everything we have done over most of our 1G ethanol is exported, 2G totally exported almost all our sugar is exported. In hard currency, we have a super exposure, but -- but second-generation ethanol is clearly a vehicle. There will be in other countries shortly.

If I may, Mussa, the signature of G20 between Biden and Lula is very relevant for this biofuel allowance. We have been working for years in unifying the 3 countries that are in the main ethanol producers, be it from corn or ethanol. India's evolution was very important. You have no idea, UNICA, the Association of sugarcane producers had with that program in India to increase the blend starting at 10% and how important it has been to regulate the ATR in the market and to develop optionality of ethanol as a product that can be blended. Another point that we haven't discussed is the power of RRA and green deal in Europe is very relevant. What Mussa has said, what has done is to try. Well, poor countries have their problem. We can't do what they did to give $1 trillion to encourage an industry as they did. We have a long way to go. Haddad wants to create a ecologic transition period. We will try and capitalize RRA and green deals and to use our renewables and orders to use that funding because of the geopolitical dispute with China.

Isabella, about gas. Obviously, we're always looking for opportunities and analyzing all the gas M&As that take place around the world, especially in the Americas. But when we look at the opportunity we still have here, given the assets and the investments we've just made, we still have a lot to do and a lot of execution to deliver. So the same discipline we need to have when we look at opportunities, we must have to execute on what we have already invested. So Compass right now is focusing on executing on investments that we have already made in Brazil.

Good afternoon, everyone. My name is Luiz Carvalho, I'm from UBS. I have a couple of questions. Luis, if I could start with you, maybe -- the first thing you said was that Cosan is now a portfolio manager. And now you're here with the partners and obviously, you're still a controlling shareholder. So if you could give us some more color on how this partnership is going to work? How that is in line with Rubens and any eventual conflicts you might have in terms of managing between the subsidiaries and the holding company? Is it bottom up? How do you manage that? Second question is to Marcelo. Marcelo, you mentioned that the shares you negotiated in the stock exchange have a discounted multiple. Maybe since the CZZ delisting, we've never seen such a small holding discount as we're seeing right now. So in your mind, given the capital allocation process, how will the buyback be accelerated, maybe paying out bottom-up dividends to leverage at the holding company level? Could you elaborate on how that's going to work and that is associated to what I asked about Luis and how he sees conflicts. Yes.

Good point. I'm so glad you raised it. First of all, our perception in terms of building future value in the group, in the portfolio, in businesses shows us that the multiples are discounted. So even though we have a small holding discount, I mean, it depends on how you see the valuation of each of these businesses over time. I would say that with the exception of some businesses that are going through a tougher time or did go through a tougher time. Ours are very, very relevant. If you went through the crisis of the buying ALL, I mean, it's undeniable. When would we think that this company would become a worldwide safety benchmark. It was considered one of the worst companies in the world. This is operating competence. This is focusing on building value. I think the market doesn't give us the benefit of the doubt and we have delivered a lot. We delivered a lot and we get a very little benefit of the doubt. But anyway, it doesn't matter. We have to make the most of opportunities. So the main one is the possibility of buybacks. I'm totally aware of indebtedness, current interest rates, where we are right now, I would like to increase buyback substantially. In fact, I would rather not do any other investments right now. I would rather buyback. But one step at a time, little by little, we will be buying more back. There is no question about that whatsoever. But we're looking at how much capital the companies need, the dividends that we're going to pay out. The dividends that have been contracted with the companies, the companies have to have some degree of flexibility in case they need it. So the game needs to take everyone's need into consideration. You can't impose certain limitations on certain businesses knowing that there's an opportunity to create value to favor Cosan investment doesn't have the same value. So that's the challenge. That's how we manage our portfolio, and that's how we find a balance. But there is no question that to me, the next step in terms of investment must be to continue to buyback. There is no other better opportunity out there for us right now. Even though we're discussing the multiples on the discount.

Thank you, Luiz, for the question. A couple of points before we go into the partnership detail. Obviously, we are in line with the company's Founder, Controller and Chairman. He participates very actively and adds a lot of value. I mean he has huge clouds in this country on all levels. He went through many crisis, made the most of lots of opportunities, went through many administration. So he brings a lot to the table. The group has huge operating importance -- social importance, ownership, and that's what Rita brings to the table. So it's a different perspective as Marcelo likes to say, Rubens is before anything else, a finance man, he's a risk manager. He's very bold but he does keep a foot in the ground. We also have partners. So everything Marcelo said -- first of all, we need to look after the company's interest. So the decisions Mussa is making at Raizen. I have an input as a Cosan partner and Shell, we have a great relationship with them. We've had one since the last 12, 13 years, Moove, Rumo, so balancing out those interests and deciding on what's best for each of the companies has to be something that is clear to everyone. We're not going to make any decision that is going to harm Rumo, Compass, or Raizen in the interest of Cosan. That doesn't make sense even though we are controlling shareholders in many of these companies, that's not something we've ever done. That's what gives us the benefit of the doubt to try a different model with Vale. This is something we discussed amongst ourselves. We've never held a knife to a minority shareholders' throat. We have lots of good ideas, maybe with a lot of work and a lot of energy, we might exert some influence and convince everyone to go in a direction we believe is the best direction for the company. Part of our success is about knowing how to have different partners. Our Mexican FEMSA partners are part of the [ Nos ] Group success. Shell, I mean we have many. They are not equity partners, but they are partners in developing TSP. In terms of partnership, let me give you some silly examples, but they do show what we mean. Anyone who has a relationship with the CEOs, you cover lots of markets. We have a few CEOs in the audience today. It's one of the loneliest jobs in the industry. You have to make a lot of decisions on your own. You can't share it with colleagues, with your partners. And the main advantage I see here is that this group can sit down together and discuss things like the presentations we just did to you. It's great for me to have the benefit of having Leo, Rita everyone giving their opinion on this presentation because they all want me to do a good presentation and be successful here. It's different to a corporation. There's a lot of power struggles going on. And when I was changing mic, Filipe said, your presentation today was much better than it was yesterday's -- yesterday at 10:00 a.m. This is teamwork. Something as silly as a PowerPoint presentation or something as big as a new business. Beto might want to discuss an investment he wants to make, how? when? Everybody is interested in Rumo being successful. We have a lot of work to do. It's not simple. And the main challenge is anything in life is time allocation. Capital allocation is complex, but time allocation is harder than capital allocation because we all work hard and we need additional time for this partnership. That's what we are working on. We're creating virtuals, creating mechanisms and Paula moved to the holding company to help organize that to create this model. I mean, we've researched and we didn't find it anywhere. We're trying it out, and it's been -- so far, it's been great.

Congratulations on this event. My name is [ Andre Fidel ]. I'm from [ XP ]. First question to Nelson and Lewin. Lewin mentioned controlling the company's leveraging. But when we look at Compass, this onetime EBITDA over net debt. That's quite low leveraging for a company such as Compass and its risk level. So -- what do you see happening to Compass? And do you think it's compatible with what you're doing at the holding company? Second question has to do with leveraging is to Luis. At the beginning of the year, somebody asked you about what made you lose sleep at night? And you talked a lot about leveraging. I think that was a huge concern for you at that time. But since then, a lot has happened on a macro level, now we're talking about lower interest rates. And at a micro level, the holding company and the controlled companies have delivered a lot. So that said, is leveraging still one of your main concerns? And if not, what makes you lose sleep at night? Thank you.

So let's start with the leveraging levels at Compass. Over the last few years, it has been between 1x and 2x. We have made considerable investments. Our leveraging level has gone up a bit over the last few years because of those investments. And the truth is that the EBITDA of those investments was higher than we had expected. So that brought our leveraging down to a level we are happy with. And now we're looking for other investments such as the B2B LNG, the joint venture we've signed with Horizon to produce biomethane. So those good results allow us to continue to invest and with our leveraging under control. We need to consider that we don't pay out dividends. Compass has not paid out any dividends this year. When that happens, leveraging goes up a bit. At the end of the day, Andre, I don't think there's anything wrong with having lower leveraging in a business that has excellent opportunities to make investment and lower interest rates and interest rates that are far from ideal. And answer to your question, leveraging or debt will always be a concern. As Marcelo said, that was our growth model, and we have a lot of responsibility for that. Some variables have made a great deal of progress, such as building Raizen's E2G plant. There will be a milestone over the next few days that reduces the execution risk. This is still a unique product. There is no competitor that can replicate our ethanol -- second-generation ethanol model. But there was a challenge to bring the plant to where it is now. Same with Rumo. So after 9 or 10 months, delivering high capital projects that had and still have some execution risks, it's important to talk about that. I think the main challenge in Brazil right now is civil construction. And -- if you look at all of our companies, the number of initiatives are unparalleled. It's no rocket science. We're talking about plumbing, wiring, civil construction, but there have been so many challenges in Brazil, the car wash probe, so many crisis. This is a challenge. What makes me lose sleep at night is being able to have partners and entrepreneurs that can deliver our pipeline on time and at cost because there's no lack of demand. Low demand risk at Rumo, low-risk demand -- demand risk at Compass. The challenge is to finish it on time at cost with the shortages we have in Brazil. And also, the other thing that makes me lose sleep at night is having the right people for all these projects. Think about how many people Mussa will need for the new [ 8 ] plants. How many people Nelson will need to keep to Comgas playbook or in the network to complete the stretch to Mato Grosso, the ability to have contractors or our own people to continue to grow. This is contracted. It's profitable. We have contracts. That's our biggest challenge for the next few months.

Good afternoon. Rogerio Araujo from Bank of America. Great event. Beto, my question is about Rumo. There seems to be a relevant yield upside that's not reflected in the share price. So let me focus on the market pushbacks. You've talked a lot about volume already and the prospects to grow looking forward. We hear a lot about whether you've reached the growth plateau. Could you talk a little bit about what your current bottleneck is and what you're doing to address it? You've talked about some of that. And maybe there's people waiting for a follow-on. Second point is reviewing your investment book. You commented on that. But since we saw in the media that the government might increase the concession fee increase the CapEx. There are rumors going around. If what was signed in 2020, the concession fee or investments, is there a possibility to increase the concession fee? Or the CapEx? What's being discussed? And what's the potential downside? And the last point is, considering the yield upside, might you bring contracts forward given that the industry is expecting strong demand for next year? It's like a derisking for investors who are because maybe there's a second crop failure in the second half of next year. Will Rumo be able to derisk by signing a take-or-pay agreement? How confident is the company about what we've been hearing?

So I'm going to try to remember all of your questions. So let me start with prices. It's true that there is a key element, which is a balance between supply and demand. That is something that will influence not only prices, but also selling our capacity. Selling our capacity doesn't just have to do with demand, but also arbitration, the different options and farmer selling. So there are many variables to be considered. I won't tell you where we are because this is strategic information for the company. But the fact is that it's a constructive market precisely because of the balance between supply and demand. And the gap we see in any kind of logistics when we compare that to our solution. In terms of volume, we don't have that plateau. We have a long-term view for our business until 2030. Our strategic plans always consider the next 5 years, and that's where our 2025 guidance came from. 2023 was not a great year in terms of volume. We're not happy with that, even though we've had robust results. It's below what we know we can deliver. I won't go into what the factors were that brought these on, but it does bring opportunities. There is still capacity that we can explore in our system. I don't see any linear volume growth. We will be seeking more growth next year, but '25, '26, we'll be looking at the demand that will be created considering projects will be concluded in the central network, in the Port of Santos that will change -- take our system to a whole different level. So we're not working with plateaus right now. By 2030, we will be growing on growth. I'm talking about 2030 because when you think about the conclusion of our -- all of our projects, that's the horizon we're working with. Now considering the Paulista network, I said that we're not discussing any contract changes and it's important to remember that Rumo started to discuss the contract. The company had the initiative to do it. So it sees this as an opportunity to always increasing capacity and increasing safety at the network to have solutions that make sense to both parties. That doesn't mean our contract model will change, our concession fee will change as you have been hearing in the media. We're welcome to an agreement if both sides win and if it generates value to both sides.

What about the follow on? I think Marcelo answered that. I mean, it would be impossible to be any more clearer. Beto, I would just say one more thing. Marcelo and I are on the same page, right? Rumo's service quality has improved exponentially in the last few years. So farmers and trading companies want the best quality service possible. So competitiveness, definitely. But you can't deny that the railway transportation quality is much better than the options.

This is Thiago Duarte from BTG.

I didn't see you, Thiago. I thought you hadn't come yet. I've been hiding.

A couple of questions, please. The first one is to Leo. You have been so competent in your negotiation of the land asset since Radars original and then you monetized on it. The market was very quiet. And then when you brought the asset back to the portfolio, there was a boom in the price of farmland. In terms of market value, you showed us the BRL 14 billion. So we keep asking Marcelo is there going to be an IPO? Is there going to be a follow-on? This looks like it's a highly monetizable asset for you. We've just gone through a huge appreciation cycle. So could you talk a bit about maybe rotating the portfolio? And the second question to Luis and to Marcelo at the same time. In 2021 during Cosan day, I said Cosan has had a lot of offspring and now and then it was beginning to have grandchildren. It was before Raizen's IPO, I think. And the family is now very complex. And Lewin talked about your different models. You've changed the way you report the numbers and it helps us. But now you have children, grandchildren, cousins at all. It's all very complex. So to Marcelo's point, I think the asset is badly priced. So my question to both of you is considering children, grandchildren, these new value fronts, you're exploring a badly priced asset. Where do you think the market is getting it wrong? Which value front is getting the worst perception? I'd like to hear from Leo about land and if anybody else would like to speak well.

Well, Sorry, Leo, I have interrupted you. I couldn't hold back. Land Compass is badly priced. Moove, has it been price? I don't know. And I think Raizen, when you look at Raizen and you see how much Raizen has suffered. The market is still questioning some E2G deliverables. Come on. Well, the demand -- yes, okay, maybe some issues are relevant because a lot has to be delivered, but we've delivered a lot. So which business is not being discounted. I think that is the question. In our opinion, all of them are. If you ask me, would I like to increase our share in Rumo? Yes, I would. Would I like to increase our stake in Raizen? At this price? Yes, I would. Am I going to do it now? No, I'm not because my priority is to buy the most discounted asset in the portfolio, and that's Cosan. So as I said, I don't think the market gives us the benefit of the doubt. And one of the most symbolic events was that terrible pricing of the Compass IPO. There was a clear message to the market that we would not accept a price below a certain level and the market tested us. Luckily, and my compliments to our partners who joined us later. They did a great -- they got a great deal because 100% was delivered, 100% Thiago, not 90%, not 80%, not 70%, 100%. Same applies to Rumo amazing. That company was on its knees. Everybody knows that in terms of CapEx, in terms of maintenance, everything was delivered. Yes, there were ups and downs. But we did our homework, 100%. We're going to hear about land. We identified a unique opportunity. We bought an asset we had sold for an okay price at a discount. What's our main problem? The problem everyone has capital limitation, but we also have the discipline to know that we can't raise funds by diluting things, diluting ourselves. We don't want to do that. We're working within our limitations. We've done that historically, and we will continue to do that. We're not going to stop doing that. But I think the market could give us the benefit of the doubt considering some relevant deliverables. If we look at the presentations we've had here today, compare that to the past, we made huge progress. We're no longer talking about basic business principles. We're talking about building value on things that have surpassed everyone's expectation. And obviously, the more you raise the bar, the bigger the challenges. There are major investments that might compromise the company's finances. Those won't be made. Compass is highly leveraged, maybe it could happen, but that changes too. But being excessively leveraged is not acceptable. Even if we're leveraged, we know that we have financial flexibility based on a pool of assets, liquid assets or that could very quickly become liquid, make us confident that we can clear that in 2 seconds. Do you have any doubt that we can clear Cosan's debt in a couple of seconds by divesting from a couple of assets? Conceptually speaking, when we look at the past and we look at everything we've delivered, they should be a lot less than they have been in practice when our assets are priced.

Thiago, I think Marcelo said it all. First, the bold statement. We are truly convinced that there is a space in our portfolio for land. It plays a role in our portfolio. Something else we obviously, we're fortunate to get some tailwinds in our entry point. We didn't have a crystal ball, obviously, but we saw that momentum in Brazil and we benefit from the discussions with Beto, and we still see those fundamentals, but we see the appreciation of that portfolio. Having said that, as a portfolio manager, within that portfolio, we clearly see a part of the portfolio moving more quickly than others. And over time, how can we make use of that? It's the game of optionality. One by one, that has proven to be very nice. Unlike what we see in terms of fair market value once a year -- but when you do it one by one, and I work with Pedro Pontes, we are able to extract more value and recycle capital. But obviously, that's a piece in our puzzle when we haven't done anything in terms of leveraging, it's one more optionality that we have, but basically there is nothing on our radar screen.

Thank you. I spoke to Anna. We were going to work to -- Well, our time is running out actually, we will take 2 questions, one from Barra and then Monique, and then we have to wrap it.

Thank you for the presentation for the event. As a follow-up question, looking at the group's history, with [indiscernible], you had children and you grew over time, Rumo and Raizen were like that. Looking at Vale, the question is when will that child grow? What would be the next step that you would feel comfortable doing it? That's the number 1 question. Point number two, actually 2 provocations to Nelson at Compass. First of all, biogas. We spoke about 2 opportunities for Compass supply and demand and at Raizen. We haven't spoken so much about biogas. We have spoken about E2G and you have that joint venture with Horizon. Why not do it with Raizen? Wouldn't that be an opportunity for the group as a whole? Because the biogas business at Raizen might represent an opportunity? And then a partners at Mitsui, thinking about the structure of the group, you have an important partner at Commit and there are important events moving forward in the sale of assets in the Northeast and perhaps possible privatizations you might have to enter into auctions in the future. So the alignment with Mitsui moving forward, wouldn't it make sense to think about a reorganization of Mitsui in their asset portfolio? Couldn't Comgas enter that reorganization? Or even marketing and services?

Should I -- so the 2 questions on Compass, starting with the last one. Speaking about Mitsui, all the decisions we have made -- we have made, along with Mitsui. Somebody mentioned, I think Luis did it, the fact that we are the controlling party at Commit or any other company within Cosan, we never use that to make any decisions. We always made decisions in common agreement with our partners and Commit is no different. So all discussions are made obviously in a joint fashion, both sales or possible privatizations. As for biogas, we must understand a difference between biogas and biomethane. Biomethane is treated biogas. So Compass has no interest in producing biogas. Biogas can be produced in different manners. It can be produced through urban solid waste, which is the case of Horizon. It can be produced through biomass, which is the case of Raizen, anymore manure or even sewage. So 4 different ways to produce biogas, biomethane is the purification of biogas. That's what Compass is interested in. I'm interested in treating biogas and produce biomethane where the biomethane molecule is the same as the molecule of natural gas. What changes is just the source. We must make that distinction to understand the type of business we're in. Having said that, Compass naturally will be an offtaker of biomethane in the Brazilian market. Even if Raizen has its commitment and sales from the different plants. In the future, we can make an offer for that gas. We have total freedom at arm's length to treat our deals as any other deal. Vale, speaking as a shareholder, is different from other companies in the portfolio. Truly all other businesses are part of the family. We have significant control. Vale is an add-on as an adult with lots of tutors and family members and many people that put their fingers in without being a family member. So if we manage to generate the value that we would like within that spectrum, that would give us hope that we can contribute. And there is an understanding that this fantastic company can develop if we think otherwise because our interference and our ability to provoke changes limited, we will have to give up, but we need more time to make the decision. It's way too early.

Hello. Good afternoon. Thank you for this event. I'm going to ask a closing question. Everyone is hungry apparently. I'm getting dirty looks. Luis, you mentioned that you are assessing divestments in mature businesses where you might not be the best operators. Can you share which criteria you use to make that assessment? And what you're looking at to identify that type of divestment opportunities?

Thank you, Monique. I'll speak philosophically because I cannot give you targets. It wouldn't be appropriate. But in every company, Rumo spoke about -- Rumo -- networks, terminals, et cetera. Mussa spoke about different businesses. Leo spoke about the fragmentation of land, et cetera. So we have those businesses are -- Lewin is coordinating a discussion on portfolio, assessing companies and there are subdivisions and how the same methodology can look at the current and the potential return. Obviously, when you consider divestment as the terminals that are key to the operation to find competent partners and operations agreements that do not affect the main business. So any divestment involves a relationship with the partner. And what we did with [ Trisa ], a small investment, we liked it. But within our portfolio, it made sense to divest to the partner that we had just brought. We had brought NSTECH that had an interesting logistics ecosystem. And we thought it no longer made sense to spend our energy -- the energy of our team with that type of investment. That will be at the analysis return fit if somebody can do better for us, how mature the asset is, if we believe the asset is already mature and the ability to generate capital so that we can make better investments looking forward using a unique methodology. That's what we did this year. That will generate fruit. Looking at opportunities, a portfolio manager that only buys is not a portfolio manager. That's a challenge we face. It has to do with the history of the group with the history of our controller and founder, but that's something we've been discussing a lot, and we have some practical examples.

Luis, since you have the mic, would you like to give a final message?

Well, first, thank you very much for the questions, for your partnership, for your support, you have always been very helpful with criticism, suggestions and support. I just want to reinforce that the portfolio of the companies that we have. We are focused on that portfolio. So there's nothing new. Total focus on execution. We have contracted demand, high-quality projects that improve our return, our cash generation and improve our future capital structure, focus on risk management, portfolio, liquidity and future capital allocation. Most cycles have gone past the investment cycle. Some are -- still have a long cycle, but we are having some reductions and focus on people development. Our main challenge moving forward, having quality and confident people with the team we already have today with quality and competence. We can never forget, and I have mentioned that in one-on-one meetings, we had a demographic benefit in our mergers and acquisitions. And it's our responsibility to ensure a good pipeline. We've got many people from Exxon, Shell, BG and others through the acquisitions we made. And we must make sure that robust pipeline is replicable over time because Marcelo, Filipe and I are more experienced and at some point in time, we will no longer be here. We'll be in a different capacity. And the longevity of the group must be preserved. That's the main message I'd like to take. As for the rest, enjoy lunch. Thank you very much. And I will see you in Cosan 2024. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]