CSAN

Good morning. Thank you for waiting. Welcome to Cosan's Q1 2026 earnings release conference call. Simultaneous translation will be available during the session by clicking on Interpretation. The button with the globe at the bottom of the screen and choosing your preferred language, Portuguese or English. If you're listening to the conference call in English, you have the option to mute the original audio in Portuguese by clicking on Mute Original Audio. Conference call is being recorded and will be available on the company's IR website at cosan.com.br. During the company's presentation, attendees will be on a listen-only mode. The Q&A session will begin once the presentation is concluded.

Please note that the information contained in this presentation and in statements that may be made during the conference call regarding Cosan's business prospects, projections and operating and financial goals are based on beliefs and assumptions of the company's executive board, as well as information currently available. Forward-looking statement are not a guarantee of performance as they involve risks, uncertainties, and assumptions, and refer to future events that depend on circumstances that may or may not materialize. Investors should bear in mind that overall economic circumstances, market conditions and other operating factors may affect Cosan's future performance and lead to results that differ materially from those expressed in such forward-looking statements. I will now turn it over to Mr. Fernando Tinel.

Good morning, welcome to our Q1 2026 earnings conference call.

Before we begin, I'd like to briefly go through our standard disclaimer regarding estimates, forward-looking statements and projections that may be discussed during this conference call. On the next slide, I'll start with Cosan's financial highlights and those of its investees. At Cosan, we ended the quarter with a net loss of BRL 1.6 billion, an improvement of BRL 0.2 billion versus Q1 2025. This result reflects an impact of approximately BRL 1 billion related to the prepayment of the 2029, 2031 bonds recorded in financial results and deferred income tax lines, with no cash effect and partially offset by the improved performance of the portfolio. Expanded net debt increased 18% quarter-over-quarter, mainly due to the absence of relevant dividends in the period and the effect of the debt prepayments carried out throughout the quarter.

However, when compared to the same period in 2025, it decreased 34%, reflecting the proceeds from the capital increase received in the last quarter of that year. Finally, the interest coverage ratio reached 0.4 times versus 0.9 times in the previous quarter. The decrease was mainly explained by lower dividends received over the last 12 months as the effect of Compass' capital reduction, which had positively impacted the indicator, no longer contributes to the numerator of this metric. Still on the same slide, we provide a brief overview of our investee financial performance. It was a quarter with solid results, largely in line with Q1 2025, reflecting consistent business performance as well as the respective impact on Cosan through the equity method. As of March 31st, 2026, for purposes of Cosan's financial statements and this earnings presentation, Cosan no longer recognizes Raízen's results.

This change reflects the fact that the carrying amount of the investment was reduced to zero following the impairments recognized at the end of 2025, and as a result, Raízen's results are no longer recognized under the equity method. Management concluded that disclosing this information has become immaterial for Cosan's reporting in line with the accounting practices set forth under CPC. Moving on to the next slide, we highlight the operating performance of our businesses, which illustrates the solid results delivered this quarter. Starting with Rumo, the company posted record transported volumes up 25%, with the highlight being the strong performance of the northern operation, which contributed to the dilution of fixed cost and expenses, as well as market share gains in its operating regions, especially at the Port of Santos. Reported EBITDA was 7% higher than in Q1 2025.

At Compass, the quarter saw slightly higher distributed gas volumes and EBITDA up 2% versus Q1 2025, supported by an improved distribution mix and higher volumes at Edge. I'd also highlight the start-up of the new off-grid B2B LNG operations and Onebio's biomethane plant. Turning to Moove, the company continues its post-fire optimization cycle. The period was marked by higher sales volumes and a 10% increase in lubricant sales, mainly in South America, resulting in an EBITDA slightly above the prior year period, which continued market share recovery reaching 16.4% in Brazil, according to IBP. Finally, at Raízen, due to lower income from land leases, EBITDA decreased 27% versus Q1 2025, largely reflecting lower ATR and soybean prices.

We now move to the next slide, where we highlight the key events and transactions of the quarter and the related cash flow movement, all aligned with our goal of reducing company's leverage. Among the main uses of cash, we announced the early redemption of the first series of the fourth and sixth issuance of debentures, totaling a reduction of approximately BRL 566 million in gross debt, and we fully redeemed the bonds maturing in 2029, 2031, which totaled approximately BRL 5.6 billion, resulting in an overall reduction of BRL 6.2 billion in the company's indebtedness. We ended the quarter with a solid cash position, BRL 7.7 billion. Lastly, as a subsequent event, we concluded Compass' secondary public offering of common shares, a transaction directly aligned with our capital recycling and deleveraging strategy.

As part of this transaction, Cosan sold part of its stake in Compass at a price of BRL 28 per share. As a result, the company may receive approximately BRL 2.5 billion in cash proceeds, considering the additional allotment if the supplementary shares are fully placed. It is important to highlight that despite the partial sale, Cosan remains Compass' controlling shareholder. On the next slide, we summarize the impacts of the initiatives carried out during the quarter on our indebtedness. We significantly reduced expanded gross debt by BRL 6.5 billion, extending the average maturity to 6.1 years with a comfortable amortization schedule that is appropriate for the company's current stage. In addition, the average cost of debt, excluding the perpetual bond, was CDI plus 1.15% per year.

Our expanded net debt, which considers the preferred share structure of Cosan Dez, currently stands at BRL 11.5 billion and continues on a downward trajectory when considering the last few quarters. In summary, all actions taken on this front since the beginning of 2025 reinforce our focus and commitment to continue deleveraging and simplifying the holding company's portfolio. This concludes our earnings presentation. We will now begin the question and answer session. Thank you for joining us.

We will now begin the Q&A session with Mr. Marcelo Martins, Mr. Rafael Bergman, and Mr. Fernando Tinel. To ask questions, please click on the Raise Hand icon at the bottom of the screen to join the queue. When your name is announced, a prompt to activate your microphone will appear on the screen. Please unmute your microphone and proceed with your question.

We kindly request that attendees limit their questions to one. If you are listening to the conference call in English, please ask your questions in writing by clicking on the Q&A button. Questions in writing sent via the Q&A button will be answered after the conference by Cosan's IR team. A survey regarding the earnings presentation for the Q1 2026 is available by scanning the QR code on the screen. Please take the time to answer it and help us improve our future earnings release presentations. Thank you. The first question is from Mr. Matheus Enfeldt from UBS. Please go ahead, Mr. Enfeldt.

Hi, good morning. Thank you for your time and for taking my question.

Could you help us predict the company's expanded net debt movements over the next 12 months, given that there was a relevant surprise this quarter and the debt went up by about BRL 1.6 billion. Looking at the expanded net debt at the end of Q1, BRL 11.5 billion, I know that there was a BRL 2 billion drop from Compass' sale, but if we look at a 15% interest rate, that should use up about BRL 1.4 billion-BRL 1.5 billion. The cost of the preferred shares outside the expanded net debt plus the cost of TRS, that's another BRL 800 million around that ballpark.

Considering the interest rates and how much of that will be accrued over the year, we're talking about BRL 2.2 billion plus another BRL 300 from the holding company. That's the kind of dividends we're talking about for this year. It looks like a tough year for the company in terms of cash generation, going back to the debt service cover ratio above one. What are the levers the company can move to improve prospects to generate cash over the next 12 to 24 months? That's my question. Thank you.

Hi, Matheus. This is Rafa. First of all, can you hear me okay?

It's a bit quiet, Rafa, actually.

I'm gonna try and speak up. Matheus, thank you for the question. Maybe as a starting point, I should talk about the cash flow or the movement of the net debt.

As we said in our release, a large part of that net debt movement in the quarter was due to one-off effects relative to our liability management strategy. The payment of the premiums on early accruals referring to the prepayment of debt. The VPL, however, was very positive, it just brought forward that cash effect. Also, we dismantled Cosan's TRS, as a strategy that went back to Cosan's treasury. A part of that we have disposed of with the cash effect in Q2, it did have an impact on Q1. As you put so well, that's not a one-off effect, it's a change in strategy.

Part of the effect of the net debt movement is that we'll start recognizing in our financial results, and as a consequence, that will accrue in the net debt the cost of Cosan Dez, its preferred shares, because of the renegotiation that we had at the end of the year. There was a renegotiation. They went into force with relevant costs for the company. There's a change in the line. What used to go out as a minority shareholder, now it's in our financial result line. It's important to clarify that. That said, that's the starting point for this quarter, that net debt balance of BRL 11.5 billion. What's not part of that is what's not considered as debt.

What's not in accrued and the financial result is Rumo's TRS, which is not there, and obviously the calculation on about BRL 3 billion, which was the disposal that was done with the corresponding value of the derivatives. That's our starting point. In terms of the concrete actions that were taken, we started off the year doing very well, first with the decision and the execution of the procurement. This is all thanks to Compass' team. They've been working very hard, and they worked really well on the transaction. It was a successful transaction. We chose the right market window to execute on that transaction, and that's been translated into up to BRL 2.5 billion, depending on the exercises that take place. That's very positive. It shows the intentions of our actions.

As we've been saying, there are also other ongoing initiatives looking at our portfolio because at the end of the day, the commitment we made at the time of capitalization last year was to continue with that leverage level at the holdco level by sharing our stake in companies in the portfolio. We're continuing to do that actively. As for selling subsidiaries, there was an impact on the debt service cover ratio, which we reported out. Each subsidiary has its own costs, discussing their own levels. Compass continues to perform very well, as you saw in the earnings release. Moove is going through excellent recovery. We're very happy with the results delivered by the team. Fantastic recovery considering the fire that took place at the Rio de Janeiro plant.

They're still going through a key CapEx cycle ending the first phase of the Mato Grosso project at Rumo. Yes, the dividend level will be helpful, but the main initiative to deleverage the holdco is not through the subsidiary's dividends. It is by selling stake in the group's assets. All right. Thank you for the question, Mateus.

Thanks, Rafa.

The next question is from Thiago Duarte from BTG Pactual.

Hi, good morning. My question is about the subsidiaries that are not listed. We have access to their results together with Cosan's results. At Moove, as Rafa just said, fantastic recovery. The share data is also very encouraging. Could you give us some detail on what you think is missing in terms of profitability? What's missing to get back to two-digit profitability levels considering the margins? Is it still the South America operation, especially Brazil, in terms of recovering volume and share, or is it to do with the northern hemisphere operations? I'd love to hear your outlook on that because I think that's a key part for the business to achieve stability and so that Moove can join this divestment pipeline Rafa just mentioned.

At Radar, same thing, but if you could talk about the speed of sales, the format of sales or what kind of stake you're thinking about selling and the properties. Whatever you can share concerning the short term would be great. Thank you.

Hi, Thiago. Good morning. This is Rafael again. I'll take your questions. We'll start with Radar. The team has a recurring asset recycling process, which they have been executing on over the years. Obviously, now focusing a lot more on selling properties and not necessarily buying new property in line with our efforts. Obviously, selling individual properties sometimes provides us an opportunity to maximize value. Cosan and our partners strategic direction is to consider broader perimeters looking at different sets of properties or regions. I think it's unlikely we'll see a full transaction considering Radar giving the heterogeneous portfolio.

Yes, we are looking at broader perimeter of the portfolio. That's that. On Radar about Moove still has plenty of opportunities that they're working on to resume profitability. As you said, we still have a journey to go on in Brazil, but there has been substantial recovery. The team has been saying that they are working on the inefficiencies with this new multi-site model. The message we're getting from them is that they will work on that over the years. This was a strong quarter, but it does not represent the potential of Moove's profitability in Brazil or Latin America. As a shareholder, we expect that to improve over the next quarters. In the U.S., it wasn't their strongest year. They also have plenty of opportunities to negotiate contracts. Those are ongoing, and we also expect to see some recovery there.

We're very optimistic about Moove. Let's not forget that things will progress over the years so that we can get to the end of the year with a better picture of what the Moove's recurring business will be with this multi-site model. That's the trajectory we're seeing for the company at the moment. Thank you, Thiago.

Thank you. Thanks, Rafa.

The next question is from Bruno Amorim, Goldman Sachs. Please go ahead.

Hi, good morning. Thank you for taking my questions. I'd like to hear a bit more about Rumo, please. Part of the stake was based on the swap. Why did you decide to do that? I know that the company hasn't made a decision yet, whether they are going to give up that stake in the company or not. It would be interesting to understand the rationale behind that move. Is it reasonable to expect that if the company does decide to sell part of the stake or its whole stake at Rumo, would the first move to dispose of the stake that's in the swap or are they not related moves? If this first swap move isn't necessarily a sign that that would be the first thing the company would do if that decision is made.

Hi, Bruno. I'll take your question.

What we did at the end of last year to dispose of about 10% of shares at Rumo through derivatives was because we were pursuing more liquidity and efficiency. There was more cash we brought into Cosan at low cost, and it helps us with our liability management strategy for the year. That's what we decided on at the end of last year. The portfolio conversation is a separate conversation. We've been talking about our intention to improve the portfolio's profile, to keep it compatible in terms of debt and dividend payout. That's something that's being considered, there's nothing concrete to share about that. If something is announced and done to that sense, that will be a tactical decision. We'll see that in January 27 at Rumo. It will be a tactical decision that we'll make over time. Thank you.

Next question is from Bruno Montanari from Morgan Stanley. Please go ahead.

Good morning. Thank you for taking my questions. The company no longer recognizes Raízen's results for the accounting reasons you shared, and also because the asset isn't contributing with future results. What would be Raízen's future contribution given that the results might improve? How are you planning on including it or not at the hold co's portfolio discussions?

Hi, Bruno. This is Marcelo Martins. Our process with Raízen is ongoing. Obviously, the company is conducting that process. As a shareholder, we've been monitoring the process, but there are some important assumptions. Cosan is not going to be putting any money into it. Considering the size of the contribution, and we have Shell as a partner, that will be translated into a considerable dilution of Cosan's stake. We don't know exactly what it will be. Because some key points are still being discussed.

For instance, in addition to the size of the conversion, the price of the conversion. The fact is Raízen will no longer be a relevant investment for Cosan. It's very likely we'll have a minority stake. We're still deciding whether we'll have just common shares or preferred common shares. That's also part of the out-of-court reorganization process. Even if we only have common shares, our stake should not be significant. It is not the intention of the company, it is not Cosan's intention to stay in a shareholder agreement with Shell. Whenever the conversion happens, a new capital goes in. The agreement that exists with Raízen now, considering the significant stake we have and the agreement we've had since 2011 when the company was first set up with Shell.

That said, what can be expected is that our stake may be sold in a timeline that we're yet to decide. We haven't even made a concrete decision that we will sell it. What I can say is that, friend, especially consider the smaller stake that won't be part of a shareholders' agreement, it will no longer be a significant investment for Cosan. We will pursue that at some point.

That's great. Thank you so much.

Next question is from Matheus Enfeldt from UBS. Please go ahead.

Thank you for taking my question again. I have a philosophical question, Marcelo and Rafa, about Cosan's role as a holding company and as an investment vehicle. I think at some point, the market invested in Cosan to be exposed to Compass, to be exposed to Raízen, to capture an investment process where the company was creating value and capital allocation, which, as I see it, is no longer the focus. Now investors have the opportunity to invest it into each of the assets. I recognize the company's value as a controlling shareholder of the current assets. My question is, how should we think about Cosan considering capital allocation as the balance sheet issue is resolved over the next couple of years?

Thinking about Cosan three, four, five years from now, what will be the holding company's role as a controlling shareholder of the subsidiaries, and how should Cosan shareholders consider the holding company versus the subsidiaries? Thank you.

Hi, Matheus. This is Marcelo again. Well, continuing with our current plan, the basic assumption, all of our basic assumptions are that with the objective of reducing the company's leveraging, it makes no sense for the company to continue to be a portfolio investment vehicle. Business growth and investments will be the responsibility of the companies that are part of the business now. That three-five-year timeline, it's very reasonable to say that Cosan will no longer exist over that period.

As we conclude our divestment process and as we reduce our leveraging, subsequently we'll be able to understand what will be the company's assets and liabilities, and probably distribute the shares to Cosan shareholders. We started doing that last year when there was a capitalization. That was the plan we agreed on with the new shareholders, and we're all aligned on that. We should be doing that as soon as it's practical and feasible. Obviously, the first step is to reduce indebtedness. That is our current goal. As Rafa said, we are implementing that strategy. Compass' IPO is a key step for that, and there are other steps that we should be taking. The objective is to reduce that debt substantially, and we'll have some residual balance next year.

It's only fair to assume that we'll start the process to resolve the holding company as of next year. Obviously, considering key market assumptions, the feasibility of those divestments, in a favorable market scenario that offers us the opportunities that we want and that makes sense. Obviously, we have no intention of doing that at any cost. We're very aware of the cost of carrying that debt in the portfolio, but our objective is undoubtedly to continue to do that so Cosan's shareholders can become direct shareholders in the invested companies.

That's very clear. Thank you very much.

This concludes the Q&A session. Cosan's Q1 2026 earnings release video conference is now concluded. For further questions, please contact the investor relations department. Thank you so much for joining us, and have a great day.

Good morning, everyone, and thank you for waiting. Welcome to Cosan's Fourth Quarter 2025 Earnings Release Conference Call. Simultaneous translation will be available during the session by clicking on Interpretation, the button with a globe at the bottom of the screen, and choosing your preferred language, Portuguese or English. If you are listening to the conference call in English, you have the option to mute the original audio in Portuguese by clicking on Mute Original Audio. The conference call is being recorded and will be available on the company's IR website at cosan.com.br. During the company's presentation, attendees will be on a listen-only mode. The Q&A session will begin once the presentation is concluded.

Please note that the information contained in this presentation and in statements that may be made during the conference call regarding Cosan's business prospects, projections, and operating and financial goals are based on beliefs and assumptions of the company's executive board, as well as information currently available. Forward-looking considerations are not a guarantee of performance as they involve risks, uncertainties, and assumptions, and refer to future events that may depend on circumstances that may or may not materialize. Investors should bear in mind that overall economic circumstances, market conditions, and other operating factors may affect Cosan's future performance and lead to results that differ materially from those expressed in such forward-looking statements. I'll now turn it over to Mr. Fernando Tinel.

Good morning, everyone, and welcome to Cosan's Fourth Quarter 2025 Earnings Call.

I'd like to begin by drawing your attention to our standard disclaimer regarding forward-looking statements, estimates, and projections that may be discussed during this conference call. Turning to the next slide, I will start the presentation with Cosan's financial highlights. Managed EBITDA totaled BRL 7.8 billion in the quarter, broadly in line with Q4 2024. For the full year, managed EBITDA reached BRL 26.5 billion, representing a decline compared to 2024, mainly driven by Raízen and Radar, as we will discuss in more detail later. Moving to the next item, Cosan SA reported an adjusted net loss of BRL 0.7 billion in the quarter, primarily driven by improved financial results.

On a full year basis, the company posted an adjusted net loss of BRL 4 billion, explained mainly by lower equity income from our businesses, particularly due to the weaker performance of Raízen's ESB, sugar, ethanol, and bioenergy segment. Regarding dividends and interest on equity received, we recorded BRL 479 million in the quarter, primarily from Compass and Radar. For the full year of 2025, total cash received amounted to BRL 2.6 billion compared to BRL 4.3 billion in 2024. This decrease reflects the absence of dividends from Moove in what was an atypical year for the company, as well as a lower contribution from Compass, given that 2024 included an extraordinary distribution related to the reversal of a tax provision, ICMS subsidy at Comgás.

Now turning to our leverage metrics, starting this quarter, we began reporting expanded net debt, which includes local debt, bonds, and the preferred equity structure of Cosan Dez. Expanded net debt decreased to BRL 9.8 billion, a reduction of nearly BRL 14 billion, which we will discuss in more detail later. From a DSCR perspective, and considering a trailing twelve-month analysis, we continue to capture elevated financial expenses as well as the phase out of dividends previously paid by Compass. As a result, the indicator declined over the year, closing at 0.9 times. To conclude our highlights, I'd like to point out the improvement in our safety indicator this quarter, which showed a significant reduction compared to the previous quarter. There were no fatalities, and the results reiterate our strong commitment to safety, which remains a non-negotiable value across all of our operations.

Moving to the next slide, we present the operational performance of our businesses. Starting with Rumo, we reported higher transported volumes, supported by a strong commercial effort and a very disciplined cost management approach. As a result, there was an upturn in EBITDA despite the challenging year, and we delivered a 4% increase compared to 2024. At Compass, I would like to highlight the increase in gas distribution volumes over the year, which was driven by the residential segment and supported by a solid pace of new connections, milder temperatures that extended throughout much of 2025, and improved performance in the commercial segment, particularly the food service sector. At Edge, we reported higher volumes marketed to the free market, reaffirming the significant opportunity that exists in Brazil's free gas market.

For the year, the company delivered EBITDA in line with 2024, and on a recurring basis, Compass achieved 11% EBITDA growth. At Moove, the quarter was marked by a greater market share in Brazil, which reached 14.5% for the year according to IBP data, despite the decrease in total global volume sold. The recovery pace of Brazil's industrial capacity, now operating under a multi-site configuration, was the key operational highlight and a critical factor in advancing the execution of the plan to enhance the new ecosystem implemented after the fire. Lastly, we recognized BRL 934 million in our financial statements related to the full receipt of the insurance indemnity. Financial performance was solid, as evidenced by the 2025 EBITDA, which came in slightly above 2024 levels.

At Raízen, the year was characterized by lower property sales volume and a portfolio revaluation with more moderate growth, as expected, which resulted in EBITDA being 6% lower than the prior period. Finally, at Raízen, fuel distribution was the highlight of the quarter, with volume and margin expansion in Brazil driven by strong commercial efforts, disciplined cost management, and government support in addressing illegal players, as well as the performance recovery in Argentina following maintenance shutdowns. On the other hand, crushing pace was slower and sugar prices were lower, which resulted in Adjusted EBITDA declining by 2% on a quarter-on-quarter basis despite the improvement in distribution. Next, we present a summary of the most relevant transactions executed throughout 2025, which played a key role in strengthening our capital structure.

In the first half of the year, we completed the sale of our stake in Vale, raising BRL 9 billion, which was fully allocated to debt prepayments. In September 2025, we announced public equity offerings anchored by BTG Pactual and Perfin Infra, which injected BRL 10.5 billion into Cosan's cash position. In December 2025, we carried out a partial sale of Rumo shares in conjunction with the execution of a total return swap, in addition to the renegotiation of the preferred equity structure at Cosan Dez. Altogether, these transactions generated more than BRL 22 billion from capital markets with a clear focus on reducing the company's leverage. Turning to debt management, we made significant progress this quarter, reducing expanded net debt to BRL 9.8 billion.

This result reflects the liability management initiatives carried out throughout 2025, combined with the company's capitalization process. The DSCR decreased by 0.1x in the quarter, driven by the lower dividend levels received on a trailing twelve-month basis and still elevated financial expenses. Regarding the amortization schedule, we present a pro forma view already reflecting the prepayment transactions announced in January and February 2026, which will further reduce the company's gross debt by more than BRL 6.2 billion. At quarter end, the average cost of debt stood at CDI + 0.97%, representing a 43 basis point reduction compared to the fourth quarter 2024, while the average maturity remained stable at 5.8 years.

On the next slide, and as we move toward the conclusion of our presentation, we provide a managerial view of cash movements, highlighting the main sources of liquidity, particularly the capitalization at Cosan and the Rumo transaction, as well as the corresponding uses of cash, closing the year with a cash position of BRL 16 billion. This concludes our earnings presentation. Thank you all very much for joining us.

We will now begin the Q&A session with Mr. Marcelo Martins, Mr. Rafael Bergman, and Mr. Fernando Tinel. To ask questions, please click on the Raise Hand icon at the bottom of the screen to join the queue. When your name is announced, a prompt to activate your microphone will appear on the screen. Please unmute your microphone and proceed with your question. We kindly request that attendees limit their questions to one.

If you are listening to the conference call in English, please ask your questions in writing by clicking on the Q&A button. Questions in writing sent via the Q&A button will be answered after the conference by Cosan's IR team. A survey regarding the earnings presentation for the fourth quarter 2025 is available by scanning the QR code on the screen. Please take the time to answer it and help us improve our future earnings release presentations. Thank you. The first question is from Mr. Gabriel Barra from Citi. You may proceed, Mr. Barra.

Hello, everyone. Good morning. Good morning, Marcelo, Rafael, Tinel. We can only ask one question, and one of the things we've been discussing with investors about Cosan that has led to a lot of questions is the future and Raízen's capital structure.

Recently, there have been some material facts about a potential capitalization, a discussion with bond holders and the company's credit. My question is a bit more encompassing. Could you tell us a bit more about the conversations with Shell? What are you thinking about Raízen, the portfolio, de-leveraging the company, and Cosan's focus on making the company more resilient on the balance sheet side? If you could give us some updates, and how are you thinking about strategy with regards to Raízen? Thank you.

Hi. Good morning, Barra. Thank you for the question. Let me take the opportunity to answer your question just to recap things a bit. As the market knows, we have been saying this very openly and publicly. We have been in conversations to find a solution for Raízen's capital structure for a while now.

Everyone knows that we made a huge effort to deal with Cosan's capital structure last year. That was a priority because we were concerned that there may have been some contamination from Raízen circumstances to Cosan. Every step we took last year from capitalization to all the liability management moves were to protect Cosan first, so that there was no question about that, and at the same time to address the capital structure of our main businesses. On the way to get here, and in going through this capitalization, there have been many conversations, and they half the time they required conversations about Raízen. When we concluded the capitalization with the current partners, something that was made very clear was how we were going to address Raízen's circumstances from now on. One of the main negotiation points were that we should prioritize Cosan's leveraging.

In looking for a solution for Raízen, that should not have an impact on resolving Cosan's capital structure. We made it very clear to the market that we had a considerable limitation despite our willingness to provide funds to Raízen, but we would be limited to a certain amount of funds that were contributed when capital was increased. We made all the assumptions clear to the market because we knew that because of that statement, there would have been questions about how feasible it would be for Cosan to match Shell one-to-one in a capital increase at Raízen. We spent at least the last six months discussing this very actively.

If you consider my time in the last six months, at least 70%-80% of that has been spent on discussing Raízen, which goes to show how important the company is, but also how engaged we are in trying to find a way out, even considering our capital contribution limitations. We did raise many alternatives. We brought them to the table in the last six months. Actually, even before that, we were discussing options, and those options were assessed by the partners, especially Shell, and especially in the last couple of months, and we couldn't come to an agreement about what Cosan's stake would be. In the last month, we were able to at least match a capital commitment. Shell made it clear that there would be a limitation on their side. They were flexible on Cosan's matching them one-to-one.

The way we got to an alternative meant that there would be a limitation on our making a contribution according to the terms that are being discussed now. First, because that capital contribution wouldn't have been enough for us to have a capital structure without a conversion level that is being debated, and we also consider separating the businesses and maybe selling a stake in one of them. We looked into all of that. Conversations were very intense, as I said, until we got to a point that the structure that should be shared with the market wouldn't include Cosan's participation based on the terms that were defined for these discussions with the market. That was informed to the market.

A material fact was published last week, and the terms of the negotiation with the creditors were discussed at a very high level, and those discussions are ongoing. They are progressing, and Cosan is not taking that much of a part at the moment because of the non-capital contribution considering the current structure. What we believe in is that creditors are highly engaged, including Shell. There's also Água Santa making a considerable contribution. That led to a well-structured conversation with creditors, and we believe that that should lead to progress and a satisfactory solution for the market that will resolve Raízen's problem once and for all. There are two main points. The solution has to be definitive, and we do believe that there is that possibility. The capital structure that comes from that definitive solution has to be suitable for the different businesses in the company.

That is also being discussed. They're very different businesses, as you all know. Their cash generation is very different, and they require different capital structures. That will be vital so that we can have a sustainable company. We're not directly involved right now because we're not gonna take part in the capitalization. But as shareholders and board members, we have been monitoring how things are progressing, and in the next few weeks we should have some news concerning the plan to find the right solution for the company.

Great, Marcelo. Thank you for the answer.

The next question is from TiThiago Duarte from BTG Pactual. Please go ahead, Mr. Duarte.

Hello, good morning. Hi, Marcelo, Rafa. Pleasure to talk to you.

If possible, Marcelo and Rafa, could you talk about what was discussed with the market at the end of the capitalization at the end of last year? In light of this quarter's results, could you also focus on one of the topics, which is efficiency gains and expense reductions at the holdco level, which was BRL 88 million. Are you looking at gaining any efficiency at that specific line item? Also, I know you asked us to ask a single question, but I also want to ask about Moove. Can you tell us, can you give us some visibility on whether the plant will be going back to production after the fire and how they're gonna build up their capacity at that plant? Thank you.

Hi, Tiago. Good morning. This is Rafael. I'll take your questions. We'll start with the second one about Moove.

The first point is to make it clear about production capacity. Moove has recovered its capacity completely, 100%. The challenge that Moove has been facing and has been addressing satisfactorily has to do with a new logistics strategy and a multi-site strategy to recover margins in terms of efficiency. In terms of volume, we have resumed our full capacity, and that has allowed Moove to also recover its market share, which is a key sign of the recovery. Now, going into 2026 will pose challenges in terms of costs to Moove because of inefficiencies that were created due to the need to change strategy. We won't start 2026 at historical profitability levels that we've had, especially in 2023 and 2024.

That is Moove's objective for the year, to gradually go back to its historical profit levels, and that will happen by addressing remaining inefficiencies, focusing on a premium mix of products, high-quality services, which is what Moove has been delivering. It does have a fantastic record, as you have seen over time. That's what we'll start doing in 2026, and the team obviously is very excited with this, with the prospect, coming out of a very tough year, but also proving that the team's resilience and adaptability. Now, as for our commitment when we capitalized the company and the decisions we made, we've been very consistent. I like that expression, to walk the talk. In terms of efficiency, the fourth quarter hasn't shown any relevant gains yet. We've just started making the changes in the fourth quarter.

The most relevant to the structure have already been made in terms of the size of the team. We have 40-45 fewer people at the holdco. There's also a matter of efficiency and discussing the scope for the holding company at this point in time. You know, it will no longer be to go into new businesses because the partners that have come into Cosan have members that have been appointed to the company's operating board. The holding company's role is being adapted to make sure that the new partners' contributions can happen directly at the operating company. This is an ongoing journey. It's happening gradually, but it is very deliberate. Now, one of the main aspects that were discussed is that the capitalization was not the end of that story.

In fact, it is the beginning, the first step of that journey, that deleveraging journey, because the intention is to materially deleverage Cosan. The capitalization has helped considerably, but now we will continue to talk about the portfolio as we have shared with you. More concretely in terms of the intention of that process, I mean, it's a very short period of time that we've been able to mobilize, not only Cosan's team, but Compass' team to start the secondary public offering of shares. I can't talk about that because of the silent period, but I just want to reiterate the intention and the commitment of this broader strategy to simplify and deleverage the holding company, because we believe that's the best way to create value for our shareholders.

Excellent, Rafael. Thank you.

The next question is from Matheus Enfeldt from UBS. Please go ahead.

Hello, Marcelo, Rafa, Tinel.

Thank you for your time. If we can focus on the holding company strategy as a follow-up to the previous question, what is the end game of deleveraging the company, and how quickly do you wanna do that? Because the holding company is going now to 2x the Debt Service Coverage Ratio. What is the end goal in the short term? Do you wanna get to 4x the Debt Service Coverage Ratio? Do you wanna cut the debt by half? When do you think the HoldCo will get to the level you want for the HoldCo in the short term and also considering a long-term portfolio for Cosan? Thank you.

Hi, Matheus. This is Marcelo. Well, our objective is to bring the holding company's debt to zero because that leverage doesn't make any sense. In the past, we could justify it by expanding the portfolio.

There were also leveraging issues for control purposes, but that's no longer on the table because the portfolio is ready. We're now cleaning up our structure to become more efficient, as Rafa said, but our main goal is to bring the holding company's leverage down to zero at some point. When do we think that's gonna happen? After we have executed our strategy to divest some of our assets efficiently, because we need to optimize the sale of interest in our portfolio so that we can intelligently get to our end goal by building value. There's no date to bring the leveraging to zero. Obviously, we want to create more efficiency, get to an acceptable level of Debt Service Coverage Ratio. We're not there yet, but we believe we will be there soon when we start to implement our deleveraging strategy.

There's also market conditions that is key to be able to deleverage, and within the portfolio as a whole, we will consider our options. Now let me just make it clear again. At this point in time, we're not saying that a specific asset is to be sold to bring that leverage down to zero. Nothing like that is happening. We're not talking about selling anything significant from any business in the portfolio. I just wanna make that point very clear to the market. Having announced the Compass public offering, then we'll do it when the time is right. When we have defined things, we will share it with the market, how we're gonna do it, where the funds are gonna come from, and how the process is going to take place. We're just beginning the process, and we will keep the market informed.

The key message is the holding company, as it was, doesn't make sense anymore. We will be making the system more efficient, as Rafael said, and we will reduce leverage and execute on sale of interest when the time is right, depending on the amounts that are on the table to affect those transactions. No shareholders are pressuring us to come to a deal at any price. That's a key point because I hear a lot of speculation in the market that we're gonna sell X% of one company or another company, and it feels like we're gonna sell assets for an amount that doesn't make sense so that we can deleverage quickly. That doesn't make sense, and it's not being done, and it's not gonna be done. I just wanna make that very clear. We are still committed to bring leveraging down to zero. That is key.

We have made that commitment. That's one of the reasons why we're not investing any funds at Raízen, because that is our priority. We want to get to our end goal in a timely fashion but effectively. Can I ask a follow-up question, Marcelo?

Is that something that is not on the table being discussed to that end goal or something that you have already decided that is not gonna happen? In terms of assets that won't be sold, do you mean?

Yeah.

No. We're not excluding any assets at all right now, but we're not prioritizing any assets either, as the media has been speculating recently. I just want to deny the fact that we have decided on an asset that will be sold partially or completely to deal with the leveraging issue. That information is wrong. Cosan does not have that goal right now.

Thank you. Thank you for clarifying.

The next question is from Regis Cardoso from XP. Please go ahead, Mr. Cardoso.

Good morning, Marcelo, Bergman and Tinel. My question is about what you've just said, Marcelo. There have been lots of news recently about potentially selling Rumo, and the price of shares are undervalued. Could you comment, because Rumo. How does Rumo fit in your divestment process? You have shares that are associated to a shareholders agreement. Were they not associated to them? If you could elaborate a bit more on what will make sense. How far will Cosan go? How far won't it go? What are the boundary conditions?

Hi, Regis. There have been no changes to our governance. Things are as they always have been. There are some potential interested parties, and they're trying to create rumors in the market to bring prices down.

Just to make it clear, we are not thinking about this operation that was in the media yesterday. Absolutely not. Which doesn't mean we might not consider selling a stake in Rumo. As I said, we'll consider selling stakes in assets in a timely fashion. We'll do it when the time is right, when the structure is right, when the time is right to execute on that strategy. That strategy is progressing. Nothing has been defined on specific percentages of any businesses to be sold. This current speculation that we are involved in selling our full stake in Rumo is wrong. That is not true. I just want to make it very clear to the market again.

Thank you, Marcelo.

The next question is from Bruno Amorim from Goldman Sachs. Bruno, please go ahead.

Hi, good morning. Thank you for taking my questions.

My question is to Bergman. Could you remind us about the debt foreign exchange hedging policy? In the release, you said that one of the measures to reduce that was the impact of the FX variation. Could you talk about your hedging strategy if that debt that's pegged to the US dollar has been fully hedged, and if looking forward, we'll continue to see the impact of the foreign exchange and mark to market on lines, any other lines of the P&L.

Hi, Bruno. Thank you for the question. Well, going back to our strategy to reduce leveraging, that was a repayment of the debt that had a higher cost and that weren't as interesting to the company. So in doing that, we repaid some debentures and 3 bonds here at Cosan. Right now, we don't have the exposure of those 3 bonds.

What the exposure that's left in foreign currency is the perpetual bonds, which we're all familiar with. What we have been doing in terms of foreign exchange hedging is the three-year FX protection. We don't hedge the principal fully. That's the policy, and we've been having satisfactory results in terms of being tolerant to any fluctuations because that's a perpetual debt, so we don't have a specific timeline to deal with it. It's been working for Cosan, so that's my answer to your question for the time being.

Great. Thank you. Have a good day.

The next question is from Bruno Montanari, Morgan Stanley. Please go ahead, Bruno.

Good morning. Thank you for taking my question. If we can go back to what Marcelo said about not selling your full stakes in one single asset.

Are you thinking of a minimum stake that you'd like to hold at each of your assets? In terms of Raízen, would spinning off the business be a non-negotiable for you before going ahead with any thing you might do in restructuring Raízen?

I'm not sure I understood your question, Bruno. Could you ask it again?

Separating the businesses. Does that have to happen for you to continue to restructure Raízen in your negotiations with Shell?

Bruno, the reason why we're not taking part is because we believe the structure that was presented, and that will have to be discussed and approved over time, wouldn't fully solve Raízen's capital structure issues. Not separating the businesses is a problem for us. What does that mean?

Separating the businesses means that the businesses would have to have separate capital structures because they have separate cash generation, and obviously their capital allocation nature is also different. To us, for the business to be sustainable and efficient, that would have to happen. We're not saying that is a non-negotiable condition, because right now Cosan is not contributing any capital, so we can't impose any conditions that Shell or creditors would have to accept. We're not gonna go over anything that's acceptable to Shell and the creditors. What we are discussing is what Cosan would believe to be suitable in terms of capital structure and a permanent solution for Raízen's leveraging issue that would justify Cosan going in, considering all of Cosan's restrictions and limitation on fund availability for the time being.

As to your other question, we haven't defined a minimum stake that we wanna keep for each of the businesses. If market conditions are right, if there is an actual interest and the multiples are suitable for a specific asset, then we can sell a considerable stake in a business. Now, if those are not the terms, then we will definitely not sell any stake in any business. Any speculation about the size of any divestment in whatever business is wrong, because we have not formally started any process that might mean we're gonna sell X, Y, or Z stake at any of the assets. Right now we are considering every single business as a potential target to be sold partially, but we haven't defined which business will be sold at what percentage.

That was very clear, thank you.

The next question is from Lucas Ferreira from JPMorgan. You may proceed, Mr. Ferreira.

Hi, good morning. About Radar, could you give us an update on. You have moved towards divestments. Have there been any conversations, any progress in those negotiations? Because that's a considerable divestment for the current size of the debt. So any updates? Thank you.

Hi, Lucas. We're still recycling the portfolio. We're continuing with our management. That's part of Pedro's routine. As Marcelo said, obviously we're looking into the portfolio to see if there are any accretive opportunities for Cosan's shareholders, considering what might be relevant over time. There are no concrete news for the time being, and whenever there are any, we will share it with the market. Thank you.

Thanks, Rafael.

This concludes the Q&A session and Cosan's fourth quarter 2025 earnings release video conference.

For further questions, please contact the investor relations department. Thank you so much for joining us and have a great day.

Good morning, everyone, and thank you for waiting. Welcome to Cosan's Third Quarter 2025 Earnings Release Conference Call. [Operator Instructions] The conference call is being recorded and will be available on the company's IR website at cosan.com.br. [Operator Instructions] Please note that the information contained in this presentation and in statements that may be made during the conference call regarding Cosan's business prospects, projections and operating and financial goals are based on beliefs and assumptions of the company's Executive Board as well as information currently available. Forward-looking considerations are not a guarantee of performance as they involve risks, uncertainties and assumptions and refer to future events that depend on circumstances that may or may not materialize. Investors should bear in mind that overall economic circumstances market conditions as well as other operating factors may affect Cosan's future performance and lead to results that differ materially from those expressed in such forward-looking statements. I will now turn it over to Mr. Rodrigo Araujo.

Hi, everyone. Welcome to our earnings call of the third quarter of 2925. Here, we have the disclaimers about future projections and future assumptions with respect to the company's results. Next slide, please. So looking at the financial highlights of the third quarter of 25, you can see that we had an EBITDA under management of BRL 7.4 billion that's about BRL 1 billion less than 2024 and mostly impacted by the results of Moove, Radar and Raizen that we're going to detail later on. We also had given the lower EBITDA and the higher financial expenses, we had a lower net income in the period, negative BRL 1.2 billion. Our net debt was relatively stable in the quarter, slightly higher than Q2 '25. We had a quarter with lower dividends received. Of course, we have a concentration of dividends in the beginning and end of the year. So that's reflected in dividends for Q3. And in that sense, we also have our debt service coverage ratio of 1x. And this is, of course, one of the main reasons why the company needed to improve and enhance its capital structure and did the transactions that we announced recently. And in terms of safety, we continue to have positive metrics, low metrics in terms of incidents. Of course, there's an increase compared to Q2 '25, but still highly efficient ratios. And we continue, of course, to have safety as a priority for the company and continue our journey of improving safety over time. Next slide, please. In terms of operational performance for Q3 '25, we had in the case of Rumo, we had largest -- an increase in the transported volumes but also a reduction in the average tariffs that resulted in an increase in EBITDA of 4%. The company has been repositioning itself over the course of the year to improve its competitiveness in the Brazilian logistics market. In the case of Compass, we had higher distributed volumes in the quarter, also an increase in the participation of the residential segment that has healthier margins and it's quite accretive for the company as well. We continue to see the increase in the volumes sold by Edge in the unregulated market in Brazil. So we saw a growth of 6% of Compass EBITDA in the quarter. In Moove, something that we've been talking about. We already see the company having stable volumes compared to '24. When we compare to the second quarter of 25, there was a 13% increase in the volumes sold. So the company is gaining back its track in terms of volume, even though the EBITDA was 7% lower, and we are working on eliminating the logistics and tax inefficiencies of the new production settlements settings for the company after the fire in the Rio de Janeiro plant. We continue with the CapEx of the reconstruction of the plant. And in terms of insurance, the company has already received until October roughly BRL 500 million of proceeds in insurance. In the case of Radar, we had the sale of properties that impacted positively the results in 2024 that didn't occur in '25. So that's the main reason for the difference year versus year, and we will have the land appreciation review in the fourth quarter. We expect increase in the value of the portfolio given the current market environment. Finally, in Raizen, we have an increase in the pace of harvesting that was favored by weather conditions. So the sugarcane crushing increased in the quarter, even though we had lower sugar prices that affected EBITDA. And we also have an overall lower volume given the drought and fires that affected the company's production for this year. In the fuel distribution segment, we see a very healthy environment. We see operations of the federal police in Brazil and the crackdown of irregular players that's translating into higher margins and healthier margins. So we have quite relevant margins in the fuel distribution segment in Raizen. Next slide, please. In terms of liability management, you can see that, as I mentioned, gross debt relatively stable, net debt slightly higher, interest coverage about 1x. And in terms of the amortization schedule, we continue to have a duration of roughly 6 years with an average cost of CDI plus 90 bps. So no relevant change in terms of the debt structure of the company. And finally, when we look at the cash position through the quarter, we have no relevant events in terms of liability management. We only have the dividends received and interest payments in the quarter. So those were the only events that happened this quarter compared to the second quarter. So that's the main reason for the changes in the cash balance. So next slide, please. So thank you for participating in our earnings call of the third quarter of 2025, and we continue with the remaining of our earnings call. Thank you. Thank you for joining.

[Operator Instructions] Before we begin the Q&A session, Mr. Marcelo Martins would like to say a few words. Please go ahead, Mr. Martins.

Good morning, everyone. Thank you for joining us at our earnings release conference call. And before we move on to the Q&A session, I'd just like to make a few comments because this is a key time for the company. I'd like to talk about what Cosan is going through right now. Since there's been a change in management at Cosan, more specifically when Nelson stepped down as a CEO and went to Raizen and I joined as a CEO, roughly 12 months have gone by. So a year after that change, and that's when we first started discussing our objective to improve Cosan's capital structure very objectively, and we discussed different alternatives. We've always made it clear that we wanted to as efficiently and constructly as possible, preserve the portfolio and look for an encompassing solution that would be definitive and to provide a positive perspective for the business and for Cosan. All of you who have taken part in conversations with us, with me here at Cosan or at other events will know that we've always made it clear that our first option was to potentially divest from some assets, but we also wanted to preserve the quality and integrity of our portfolio to continue to be a compelling company for future investments. And that's precisely what we did. We looked at what Brazil was going through, what the market was going through and came to the conclusion that the best option was to find relevant shareholders that could make significant contributions to the future of the company at an investment size that would also make sense. So in our pursuit, we identified a few potential investors, and I am completely confident that we ended up with the best investors possible for the future of this company. We were able to not only increase capitalization significantly, so reducing the company's issues substantially. So even if we still have a residual divestment balance so that we can reduce Cosan's debt to 0 or close to 0 in the near future, which is another commitment I've made to investors. We looked for a relevant transaction with the contribution of these new shareholders as the main factor and also some subscriptions to this new public offering that ended last week. I'm very happy to say, and I can speak for myself, for Cosan and Rubens as a controlling shareholder of Cosan that we are extremely happy to have highly valuable shareholders who have huge credibility in the market. They're very successful. They're fantastic risk managers, portfolio managers. They are very familiar with the infrastructure sector and considering our portfolio right now, they will make amazing contributions to the future of this company. So before anything else, I wanted to thank Boston and their commitment the level of involvement they've shown to the process and the fact that we were able to conclude this transaction. So looking forward, very excited and fully confident in the future of this company. That said, we know that as of now and over the next few months, probably the next year, we will be focusing entirely on integrating the new shareholders with a shareholder getting to know the companies in depth. You know the level of contribution they'll be making and what we expect as well at the Board at Cosan and the invested companies. The objective is to fully engage this group of shareholders, looking at future investments, that should bring the company's debt to 0 or close to 0. We also want to make it very clear that we do have divestment priorities, but this plan will be executed at the right pace so that we can really create value without any pressure to sell assets at any price. That is not going to happen, has not happened and will not happen, especially now that we are in a much more comfortable position when it comes to capital structure. So we will be focusing on our portfolio on identifying the priorities at Cosan looking forward and divesting so that we can execute our plan as efficiently as possible. And we're going to look at growth options down the line once we know the way forward, then we'll be able to look at assets that will become part of this portfolio in the future because, obviously, we want to unlock value and to use the levers we've always used in the past, but which hasn't been possible for the time being, given that we'll be focusing on rebalancing our capital structure. That's the main change now. We have a completely open horizon whilst a while back, there was quite a high level of uncertainty. So that was basically what I had to say. These are just my opening remarks, and we can now begin the Q&A session so that Rodrigo and I can answer any questions you might have about our results.

We will now begin the Q&A session with Mr. Marcelo Martins, Mr. Rodrigo Araujo, and Ms. Camila Amorim. [Operator Instructions] Our first question is from Gabriel Barra from Citi.

My first point based on what Marcelo said is about supply. What was the allocation rationale in terms of supply and the outcome? I know Marcelo touched on it, but if you could provide us with a bit more detail, it would be really interesting to hear about that. And second question, also touching on what Marcelo said is after this capitalization, the company is a bit more comfortable and can now think about restructuring the portfolio, selling assets. If we could talk specifically about Raizen, even if the company is in a more comfortable position now with a better capital structure, Raizen has been burning cash and you've changed the perspective of the second offering to strengthen the subsidiary company's capital structure. So could you tell us about Cosan's strategy considering the subsidiary companies? Will there be a third entrant? What are the options on the table? Could you tell us about that? So those are my 2 questions.

Thanks Barra. I'll start with your first question, and Marcelo can answer your second question. About the offering, this transaction was big enough to be relevant for the company's capital structure and for new partners to come in with expertise in infrastructure in Brazil with a long-term strategy and an amazing plan with the new partners. And that can be seen in the stats of the offering. The first offering was 10x the demand. The second offering was also significant. So we had 2 very successful offerings. And an interesting challenge in terms of allocation. For the first offering, we kept what we said to the market when we announced the offering, so we prioritized existing shareholders. The first offering had one non-shareholder that was long term strategic and was allocated. The rest were all part of the company's existing base. The second offering was a priority offering but we went beyond that and gave allocation priority to the existing shareholder base. 2/3 of the offering was allocated to the existing base. So we've really prioritized the company's long-term shareholders who've been with the company a long time, believing in our recovery journey. So in summary, we had 2 successful offerings where we kept what we had said that we were going to prioritize our existing shareholders. I'll turn it over to Marcelo so he can talk about our capital structure.

Well, Gabriel, adding to what Rodrigo said, we were very happy with the level of interest and demand for our first and second offering, which is a clear testament to the fact that the market is betting on the future of the company as well as knowing that this was the best solution possible considering the different alternatives and that we were committed to the market to resolve our capital structure this year. That's why it was so important to deliver on all these elements within 2025. As for Raizen, yes, we do understand solutions for the company's capital structure are required urgently. And I just want to say that I'm very happy with what the company's management has been delivering. And considering all of our expectations concerning what was to be delivered, I'd say management has complied with what we had expected for this year, 100%. Despite the challenging scenario, deliveries have been very positive. And a lot of points were addressed during the call on Friday. We know that this is the best way possible and it will be very positive for the portfolio and for the companies in the future. But obviously, capital structure challenges remain our conversations with Shell have progressed considerably. On a number of aspects that can be potential solutions or solution, we have made progress, although we haven't yet come to a conclusion about the way forward. I'd say that in our conversations with them, the clearest direction compared -- is much clearer than we had a few years -- weeks ago, but we haven't come to a final conclusion yet to announce to the market. We have been working hard on it. This is a massive priority for me and Cosan's team. After Cosan's capitalization we know that we need to focus on that, and we'll continue to work on it with a sense of urgency and closely with Shell so that we can come to a conclusion. I can't share with anything with you for the time being because we're still working on it. We haven't come to consensus on their side or on our side. So no conclusions yet. What we did do recently during the second offering was to announce that we might be using proceeds from that offering to capitalized companies, broadly speaking, and Raizen is included in that. So that remains, obviously. We have already disclosed that because we think that's a key consideration when it comes to Cosan. And depending on the solution, if it's a broad solution with a positive effect, we will definitely consider that capitalization. As I said, we haven't decided on the terms yet. And in fact, the structure to be pursued so that we can continue to deleverage the company hasn't been decided on yet. But our commitment to get to the right solution and to potentially making a capital contribution remains as we had said previously.

The next question is from Isabella Simonato from Bank of America.

You touched on many different points, including the new shareholders and Raizen's process. And on Friday, during the call, you also announced several Board changes to the directors. I would imagine that comes from a shareholders' agreement that was signed. But if we could also talk about the context of the changes in directors, which at the end of the day also had an impact on Raizen at a crucial time, as we all know, when they're working on the balance sheet. So if you could provide us with more color about that, that would be very helpful.

Well, yes, those changes to the Board are a consequence of the new partners coming in. We had agreed that those changes would take place. And obviously, totally in line with the new partner's contributions to the company. Not only were we expecting those changes, but we also believe that they are extremely positive to the future of the company. Another point, which I didn't mention during my opening remarks, but I will now, before I address the financial changes is that we have been making significant changes at Cosan to streamline the team and to streamline the company itself. We believe that in line with Cosan's future and the contributions the company will have to make to its portfolio, it is important to streamline the holding company and to generate more efficiencies, which is something we've been thinking about for a while and now is the time to do it. I think that streamlining process will be very accretive in terms of value to Cosan. Streamlining the holding company and reducing expenses will also be a huge contribution in addition, obviously, to the capital increase. So that's how we're going to proceed. As for the changes in CFOs. Now that Rodrigo is leaving and with the objective of bringing in people from inside the company who have the knowledge and who can run this area with in-depth knowledge of the portfolio and the process, it had to be somebody from the company. Bergman has been with us a long time, 14 years, I think. He's been through many companies in the group. He has a lot of experience within the group. So he's highly qualified to take on the job. And since the holding company is focusing on the portfolio, the partnership with the new partners and focusing on the portfolio more constructively, it was key to bring in someone, if I may use a word in English that could hit the ground running. So he is somebody who is going to come in and hit the ground running and continue to manage things as we expect them to be managed now that Rodrigo is leaving. And somebody who is going to come into Rafa's place to make the right contributions, who had experienced enough to run such a complex company as Raizen. Hence, Lorival is now taking Rafa's place. What I wanted to say is that during the 2 years, Rodrigo spent with us, he made massive contributions even though it wasn't a long time, he was extremely active. He had a huge role to play and made exceptional contributions to the company. When we said we were going to sell our stake at Vale and with the current capitalization, that means we move BRL 20 billion in the Brazilian capital market in 12 months. That's a historical milestone for any company in Brazil, especially considering current times. So I really want to thank Rodrigo for his contribution, and I wish him the greatest of successes in his next professional stage.

Excellent. Marcelo, if I can have a follow-up question, please. Looking at the shareholders' agreement, it's clear that the new shareholders can join the Board, and it's slightly different at Raizen. Rubens -- and will be more in charge of the JV and the JV decisions. Did you make that decision? Did Shell have an opinion? And also, congratulations, Rodrigo, on the last 2 years. And I wish you success on your next stage.

These are actually, our new shareholders' agreement will keep the same terms as the pre-existing shareholders agreement. And these were the terms for Raizen already. So what we agreed with the new partners is that we wouldn't change anything. We would keep the same terms. There was no reason to change it, and that is our agreement with Shell. That's why Raizen was the exception. We have kept the appointment of the Board members in line with the shareholders agreement that is in force. As Rodrigo leaves, we're going to replace him at Raizen. We have an idea of who's going to do that, and we should be doing that soon. I just wanted to make that clear. And obviously, it won't be anyone appointed by the new partners for the reason I have just given you.

The next question is from Thiago Duarte, BTG.

Good morning, everyone. Marcelo, Rodrigo pleasure to talk to you. If we can go back to Marcelo's opening remarks about the role the holding company has to play in this new context. Historically, Cosan has been going through different formats as a holding company, diversification, then simplification, eliminating holding companies along the way. In the last few years, there's been a significant investment cycle at the holding company and the subsidiary companies. And now with the offering, things are much more tangible. You're talking about a significant simplification with new partners coming in the controlling shareholders group, not only in terms of reducing expenses, but also bringing down the company's debt to 0. So given that context, once this process is concluded or is on the right track, a significant part of it has already been done. What will be the role that Cosan as the holdco will have to play in the future? And I also have a second question. Considering the funds that you raised and considering that a major part of it, if not all, will be used to reduce the holdco's debt, as you said. My question is what part of that debt would you be tackling? Do you think it will be the cost of debt or the maturity, the duration? What kind of an impact will that have on your liability and liquidity?

I'll start with your second question, Thiago, and then I'll turn it over to Marcelo to talk about the holding company. Yes, you're right in terms of how the funds will be used. Substantially, they will be used to pay for the debt, we had already announced that during the offerings. In terms of priorities, there is a cost packing order to be tackled because the duration is compatible. And there's a lot that can go into call in the short term. And the trade-off will end up being positive between a high cost, but also a duration contribution. In terms of the duration itself, I think there is a first stage where there will be a reduction but once the company's credit improves, we'll have more opportunity for tactical operations in the long term. We don't have anything maturing by 2028. So in terms of that kind of pressure there isn't any. And a really good duration for the holding company's horizon. So we'll be focusing on costs, but naturally, there will be an opportunity for a part of the debt, which is callable in the short term to have a positive impact on the duration as well. I'll turn it over to Marcelo so he can answer your first question about the holding company.

Well, Thiago the last time Cosan had a capital increase before this one, obviously, was in 2007. So that was roughly 18 years ago. And that capital increase took place before we started diversifying our portfolio because the first acquisition of sugar and ethanol took place in 2008 when we acquired Esso Brasileira de Petróleo. So in practice, all the financing of these acquisitions of the companies in the portfolio took place in the last 17 years, which means that if we had leveraged the company in time because, obviously, that capital increase was crucial for that acquisition, but not enough to build up a portfolio that leveraging took place gradually over time. And it wasn't efficient because it's -- this is a pure holding company. Up to the point where the macro scenario changed, interest rates, skyrocketed and that coincided with the recurring leveraging of our stake at Vale. So we started going in a direction to where to resolve the company's capital structure, either would have to make a significant sale in the portfolio or have a capital increase somehow, which is what we did. So the holding company played a role in the last 17, 18 years that has changed. It doesn't make any sense continuing to use Cosan as a leveraging tool for future growth. First, because it's been clear to us for a while, especially our experience with Vale that we shouldn't develop any other verticals using Cosan's resources. So future investments will be made through the controlled companies when that makes sense again when the time is right. So there's no sense in continuing to leverage Cosan over time. It doesn't make financial sense. It's fiscally inefficient. So the holding company, regardless of our active participation in portfolio management, the holding company will no longer be a vehicle for future investments. We need to consider creating efficiencies and streamlining it over time, and that is our objective for now. Now what will happen once we get to a size that makes sense and the leverage that makes sense, then we'll discuss it again. But right now, we want to create efficiencies and streamline it.

The next question is from Matheus Enfeldt from UBS.

My first question is based on what Marcelo said about timing. I know it's hard to say, but there's a lot of news about Cosan being in a hurry to resolve investments, to reduce the company's balance sheet in the very short term, which diverges from what you said, Marcelo which is that you now have the time to do it gradually. So I'd like to hear about that timing difference. When do you think we'll be able to see new decisions about the company's portfolio? And also in terms of timing, the message about Raizen sounded very different to my ears in the sense that Raizen doesn't need capital immediately, that it's in no rush, that it can perhaps wait for 2 or 3 years. Whereas what you said, Marcelo, is that they want to resolve it in the short term. So could a potential solution for Raizen happen in the next 6 months? Or do you think it will be over the next 2 or 3 years? So that's my first question. Second question is about Moove. We haven't talked about Moove yet. I'd like to hear more about the company's results. You had quite a solid result. How much of that came from operations? How much of that is a result of insurance proceeds or tax credits? I'd just like to hear about what's recurring and how the operational business is running?

Thanks for the questions. I'll start with your question about Moove and Marcelo can talk about the company's balance sheet and timing. Let me just recap what we showed during the presentation. In terms of volume, the company is well covered. If you compare it to the same period last year, you can see that there's been significant volumes recovery, the reconstruction CapEx. Obviously, the dismantling and reconstruction of the Rio de Janeiro plant is ongoing. And given the volume solution, the company is focusing on eliminating tax and logistics complications in the setup, which transfer interstate products, a return of ICMS credits. The logistics is much more complex than if it was centralized in a single asset. So the company is working on that so that it can land on a new production setup. It's not just about the real plan, part of what was going to be done that will be done to the facilities that we've been acquiring over time, especially in Sao Paulo. So the company is on track to position itself competitively. And given everything that happened, that's quite remarkable. In terms of the insurance proceeds, yes, there was a considerable recognition in the second quarter, another BRL 200 million in the third quarter. But the main thing than the accounting recognition was what we expected that would happen, which is significant cash coming in, BRL 300 million in the second quarter, in October another BRL 200 million, which we have announced and that reiterates our confidence in the process. And we are confident that the company will recover. And again, the Rio de Janeiro plant reconstruction CapEx, as I said, part of the insurance was associated to property. So we expect that Rio's plant CapEx will also be covered and realized over time. I think that's it. And I'll turn it over to Marcelo.

Matheus, let me make it very clear so that there is no doubt. Our sense of urgency at Raizen is obviously much more along the lines of 6 months than 2 years. There's no question about that. As we continue to talk and define a strategy with Shell, not only will we announce that, we will also start executing on it as soon as possible. And there is definitely a sense of urgency. No, we do not think that we can wait for 2 years before we find a solution for Raizen's capital structure. The point is that it has been delivering significantly but that's part of the equation. The sense of urgency is there. As for the portfolio, what I said was there is no need for any fire sale of assets. In other words, we will do what's best to solve the company's indebtedness and the portfolio's prospects without burning assets. That doesn't mean there is no sense of urgency, but it's changed with the capitalization. So we have resolved a major part of the capital structure. And the rest will be done, delivered and announced will be executed in a time frame that makes sense, in a schedule that makes sense, for the price that makes sense and the right mood in a coordinated and organized fashion. We don't want to give anybody the impression that we're rushing around trying to sell assets. We didn't do it in the past when we needed to raise funds. So obviously, we're not going to do it now, considering that a major part of that solution has been found.

The next question is from Monique Greco from Itaú.

I have a couple of questions. If you could provide us with more detail about some of the things you've already touched on. First question is if you can comment on the streamlining measures at the holdco level. Have you mapped them? Have you started implementing them? Do you have a time frame in mind to get to the streamlined level you would like? I heard that you are hoping to cut annual expenses by half at the holdco level. My second question is about the divestment agenda. Could you comment on the order and the pipeline? What would make a sense focusing on first?

Thank you, Monique, and thank you for the questions. Well, with regard to implementing measures, as Marcelo said, we have mapped a process to streamline the structure at the holdco level, partly decentralizing some the rules, which is something we had already been doing. Now looking forward, we want to bring the holdco to a level that is strictly necessary. So we'll be focusing on what will remain in the portfolio. For next year, considering this personnel streamline, we should be saving about BRL 30 million for next year. That 50% reduction entails a few other initiatives. As you know, our prospectus announced that we are looking into the company's ADR because of its relevant annual cost. It's over BRL 10 million when we consider all the associated costs. So that's something we're considering, and other things as the physical space as well as other expenses based on what the company has been doing and will take place over time. So without giving you a time frame, we believe that it is very doable to bring -- to cut down on costs by half. As Marcelo said that is key in terms of capturing the value of the deal we announced. So it is in our interest to implement those measures as quickly as possible so that we can capture them also as soon as possible. And Marcelo will tell you about our divestment agenda.

As we've been saying to the market, Monique, divestments should take place following the order of capital allocation priority within the portfolio. And obviously, considering that we should start with Radar. So if you look at our portfolio and the level of priority of the business is looking forward, I think Radar is possibly the company where we might consider thinking selling a more considerable share. The rest will come as a consequence of that first step, obviously, depending on the size of the divestment, then we can allocate it to the other businesses as we consider a combination of value, size of the business and the future strategy for investment in those businesses. That's why it's the asset that makes the most sense to start with at the moment.

The next question is from Regis Cardoso from XP.

Good morning, Marcelo, Rodrigo. Congratulations on the offering. Your exit will surprise, Rodrigo, but it will leave an important legacy. Marcelo you just talked about Radar, would it make sense to sell more assets or a stake in the company itself? And if you could talk about Rumo, would it make sense to sell a stake? Is there a minimum stakehold and needs to have to remain as a controlling shareholder? And the same applies to Moove, I would imagine that in time, a decision to raise funds at Moove would depend on resuming production. And I don't know if there's anything else on your radar in terms of when it would be possible to normalize things.

Well, first of all, with regards to Radar, it's a combination of factors. We can continue to sell properties that are part of the portfolio or sell a part of Cosan's stake. Obviously, there is a trade-off between speed and what makes the most sense in terms of adding value. So we'll look into that to make a decision on the best way forward. We know that, that is compelling to many investors. We have an exceptional portfolio, one of the best portfolios in Brazil. Its size is considerable and a performance track record that is also exceptional. So those are all very positive factors when we consider a significant divestment in that business. As for the other businesses, and I can speak for all other businesses, they are considered very relevant to the portfolio with the potential to create huge value, all of them without exception. If we are effectively going to consider selling a stake in some of them, more diluted stake in more than one of them or if we're going to concentrate it more in one rather than the others, will depend on, first, understanding our strategy looking forward as well as potential buyers and opportunities that may arise. Always, always bearing in mind that value is key. We have built this portfolio over time. We've made considerable progress in terms of growth investments. And obviously, we will make divestments that make sense for the right price depending on the demand, but also obviously considering what is key to the portfolio as a priority.

May I ask a follow-up question, please? What about capitalization at Raizen? Is there a maximum amount that you'd be willing to contribute?

Well, that is under discussion, but in the context of the offering, I think we've made it clear where that amount would be, right? Where that value would be. We're currently discussing that. I mean it will depend on how our conversations with Shell goes. It depends on what they will be willing to do. It depends on many other factors. But on our side, let's remember all of our statements, the first offering, the second offering and the context. So it will be within those thresholds that we announced to the market.

This concludes the Q&A session. I will now turn it over to Mr. Marcelo Martins for his closing remarks.

Well, thank you again for joining us. And this has been a very exciting journey. Our objective is to resolve Cosan's capital structure and more broadly speaking, all the group's companies. We are extremely happy with where we've got to and very excited with the prospects for the group, its portfolio and a clear notion that we will be able to create significant value, again, as we have done in the past. So we want to stop just resolving the company's capital structure and start building again. But until we do so, that's what we'll be focusing on. Construction will come after that. Once again, I want to thank Rodrigo and the whole team for their huge effort, the professionalism, everyone at Cosan, even through tough times when we're talking about cutting down on our personnel, as we know, their level of commitment and professionalism is unique. We are undoubtedly one of the best companies in terms of its people. I want to thank my own team. I want to work -- to thank everyone who works for the companies in the portfolio, and thank you for joining us. Thank you.

Cosan's Third Quarter 2025 Earnings Release Video Conference Call is now concluded. For further questions, please contact the Investor Relations department. Thank you so much for joining us, and have a great afternoon. [Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, everyone, and thank you for waiting. Welcome to Cosan's Second Quarter 2025 Earnings Release Conference Call. [Operator Instructions]. The conference call is being recorded and will be available on the company's IR website at cosan.com.br. [Operator Instructions] Please note that the information contained in this presentation and in statements that may be made during the conference call regarding Cosan's business prospects, projections and operating and financial goals constitute the beliefs and assumptions of the company's management as well as information currently available. Forward-looking considerations are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events and, therefore, depend on circumstances that may or may not materialize. Investors should bear in mind that overall economic circumstances, market conditions and other operating factors may affect Cosan's future performance and lead to results that differ materially from those expressed in such forward-looking statements. I will now turn it over to Mr. Rodrigo Araujo.

Hello, everyone. Welcome to our earnings call for the second quarter of 2025. We start with our usual disclaimers about future projections and future operations of the company. So starting with the highlights of the second quarter of 2025, we start with our EBITDA under management of roughly BRL 6 billion this quarter. slightly below last year, and we're going to talk a little bit about the details of each one of the portfolio companies following during the call. We had a negative net income of about BRL 1 billion in the quarter. We also had our net debt stable when we compare to the first quarter of 2025. Our debt service coverage ratio is also stable compared to the quarter, mostly coming from dividends that we received from Rumo and Radar that accounted for roughly BRL 600 million in this quarter. And also in terms of our safety metric, we also had an important improvement in this quarter when compared to the first quarter. We unfortunately had a fatality in the quarter, but we continue to have safety as a strong value of the company and continue to disclose important operational and safety results throughout the portfolio. So talking about the operating performance of the different businesses. In Rumo, we had higher transported volumes, basically translated into a higher EBITDA. We also had an increase in terms of market share in the Port of Santos. That was the result of a change in the tariff dynamics. So we had lower tariffs compared to last year, but that translated also into higher volumes transported. In Compass, we continued to see the growth of the portfolio and mostly we had an important impact, not only in volumes, but also in terms of the mix. So we had higher sales in the residential segment that also brings higher margins. We also had an important increase in the volume traded by Edge. So we continued to ramp up the terminal in the Port of Santos and to ramp up the strategy of being a relevant player in the unregulated gas market in Brazil. The lower EBITDA compared to last year is mostly because of nonrecurring events that happened on 2024. So basically, on a recurring basis, we had better results. In Moove, we had the reduction in the volumes sold, mostly given the fire that happened in February this year. We continue our recovery trajectory. And in this quarter, we also started accounting for the impacts of the insurance related to the event that happened in February this year. In Radar, we had the sale of a farm in the second quarter of '25, and we had stable EBITDA compared to '24. So we continue as we've been mentioning to divest partially from the land in the portfolio, and we also continue to have a relevant BRL 17 billion portfolio, even though some divestitures have been going on. And in Raizen, we had a positive result in the fuel distribution segment, with better margins, healthier margins and higher volumes as well. But we had the negative impact of the delay in the sugarcane crushing given the weather and the fire that happened in the previous harvest. So those impacted negatively the EBITDA of Raizen this quarter. In terms of liability management, there was no relevant event in this quarter. We, as I mentioned, have the gross and the net debt stable compared to last quarter. Our debt service coverage ratio is also stable compared to last quarter. And we have a slight decrease in the average cost of our debt, from -- CDI plus 90 bps to CDI plus 88, and an average duration of 6.2 years. Finally, in terms of our cash movements for the quarter, as I've mentioned, we had dividends paid from Radar and from Rumo this quarter, that was the most relevant event in the quarter. We had the interest payments also consuming part of the cash in this quarter. So those were the main highlights for the second quarter of 2025. And thank you for joining us today in our earnings call. And please let's move on to the Q&A session. Thank you.

We will now begin the Q&A session with Mr. Marcelo Martins, Mr. Rodrigo Araujo and Mr. Fernando Tinal. [Operator Instructions] Our first question is from Matheus Enfeldt from UBS.

[Interpreted] My first question is about Moove. I'd like to understand the results in this quarter, especially when it comes to the insurance. What was the impact on the profit you didn't get in terms of the EBITDA? And what about the insurance of the asset itself? Just so I can understand the results. And thinking ahead, what kind of insurance recurrence will we have on those profits that you didn't make? And how will you be negotiating with the insurance company? So if you could update us on that topic, that would be great. And my second question is about the debt service coverage ratio and how it's moving forward. It sounds to me like your payment on net interest was quite low in this quarter. Maybe that's going to affect the cash over the next quarter, so that will put pressure on the debt service coverage ratio. So doing the math, considering a net debt average of BRL 21 billion with an average interest rate of 13% to 14%, so the net cash interest should be BRL 2.9 billion, and it was closer to BRL 2.3 billion. So could you tell us more about the dynamics? Are we doing the math right? Or has there really been a cash interest concentration until the half of the year?

[Interpreted] Thanks, Matheus. Good morning. Thanks for the question. I'll start by giving you an update on Moove. First, it's important to highlight that the company is still completely focused on its recovery and making sure that the regulation process takes place properly for all stakeholders based on the insurance regulations. And in this quarter, you saw just over BRL 400 million. That's a result of the progress in the regulation process. It's important to say that, as you said, the size of the impact will be seen over time, obviously, over the next few quarters. We will continue without any guidance. But it's important to point out that production is resuming month after month with a whole new manufacturing system involving Rio de Janeiro but also Sao Paulo as part of the manufacturing ecosystem. Capacity is no longer an issue for the company. It's important to point that out. And obviously, given what happened, the company is reacting to the fire, working on fiscal efficiency and logistics to operate with a different type of organization to the original. But this quarter, there's been a considerable pickup on market share, for instance. And looking forward, obviously, it includes a better and more modern plant in Rio, which will leverage competitiveness, profitability and so much so that we are already seeing CapEx and the reconstruction of the plant in Rio will happen. It's relevant and it's already taking place. Obviously, in the future, the company will operate in a different manufacturing organization. So it won't be completely focused in Rio de Janeiro. So the Rio de Janeiro plant won't be the same as it was. But that's roughly the scenario. And as I said, the size of the impact concerning the insurance will be seen in the following quarters. As to your second question on the debt service coverage ratio, a couple of things. Your way of looking at it is right, but you need to separate things. Part of our debt, which we have shared with you, as a bullet, so there's no payment of intermediate interest, and there's also the dynamics of the bonds and debentures following the coupon schedule. So it's right in the sense that some things are in the accrual, but were not cash in the quarter. And that's business as usual, it's no different to previous quarters. You are right in the sense that there should be a reduction in the debt service coverage ratio in the future, so much so that we are working on reducing leverage in a structural fashion across the company.

The next question is from Thiago Duarte from BTG Pactual.

[Interpreted] I want to go back to Moove briefly, please. I want to talk about the volume dynamics. Volumes were similar to the previous quarter where, when the fire took place, in theory, it didn't affect the whole quarter. So it feels like the volume recovery in the second quarter happened quite rapidly. You mentioned that briefly in your earnings report, but I'd like to hear more about the recovery to be able to meet capacity and volumes. And if possible, what kind of pace did those volumes came in at the end of the quarter to understand how they will be moving forward? Now the second question is about the priority of recycling your portfolio and the divestitures and reducing the group's debt. Could you give us an update on -- I mean, in the last few earnings release calls, both you, Rodrigo and Marcelo, talked a lot about options and the many leverages that the company has post the Vale divestiture to continue to reduce your indebtedness. You talk a lot about priorities. So some assets you want to wait until they're a bit more mature. You see other assets as key to your portfolio. So you have different ways to generate cash, resilience, stability, more commodities. So we're halfway through August now and I'd like to hear from you if any of those priorities have changed given that time is not on your side given the cost of debt, high interest rates, or if what you said as the assets that are more monetizable still makes sense. So that's my second question.

[Interpreted] I'll start by Moove. I think it's important to highlight that even though there was a fire in the first quarter, the company did have the inventory to manage things over a bit of time. Now in terms of the volume dynamics, it's key to point out that the company's strategy focused entirely on preserving our distributors network, our key clients and to make sure that we kept the volumes because the customer base is what ensures the company's future competitiveness, even if, at the time, we need to use a new manufacturing ecosystem with some inefficiencies. What we're focusing on is preserving the company's customer base to make sure that the ramp-up happens over time. Now something I mentioned when I was answering Matheus, every month, we see a positive dynamic. Every month, not only the company is recovering volumes, but we're understanding the dynamics and understanding better how to deal with those inefficiencies, how to keep its customer base and to keep it as profitable as possible. So much so that this quarter, there is market data on that, the company is going back to a considerable market share compared to what happened right after the fire. So there's been considerable market share recovery in the period. As to your second question, I'll start and then I'll turn it over to Marcelo. About priorities and options, something that has absolutely not changed, and we are aware of time and the fact that it might not be on our side, our perspective hasn't changed. We will make sure that the end of this journey involves a high-quality portfolio that is equal or better than the original. So that is a significant variable. We will not affect the quality of the portfolio just to focus on the speed with which we're going to deleverage. Marcelo?

[Interpreted] Adding to what Rodrigo said, first of all, deleveraging is a major priority for the company. Second, deleveraging is a challenge for us whilst keeping a well-balanced portfolio. And third, we do have assets that we would consider partially selling right now. In terms of selling those assets, there are some ongoing discussions. They have been ongoing for a while. Some of them are more recent. And by the end of the year, we want to have a clear indication from the market in terms of what the businesses we will be monetizing will be so that we can raise the funds we believe to be adequate for now. Now Cosan's deleveraging efforts will not come to an end this year, as we've said before. Our objective is to get to debt that is close to 0 at the holdco level at Cosan. Because it doesn't make sense for us to carry on with this debt at the holdco where we have fiscal inefficiencies. But that's no news. We've talked about that before. Now a well-balanced portfolio is a key point at a time when we are discussing options for Raizen. So that is a solution that is part of our strategy right now. I have mentioned this before and I will repeat it before I'm asked again. Right now, it does not make sense to Cosan to put more capital into Raizen because it is looking into finding a balance in its own capital structure. So we're not going to invest in a capital in Raizen. We do understand Raizen's portfolio's challenges. We are addressing those assets with Shell, and we'll move forward doing that. And we hope to have something to the market as soon as possible. But what I want to make clear is that not only there is a sense of urgency to find alternatives, but we are on track and we have even more alternatives now than we had a few months ago. Now executing on those transactions is not something obvious, especially given the current time Brazil is going through with the volatility that we're all seeing. But we are completely focused on finding a way out for Cosan's capital structure and looking at the other companies in the portfolio.

The next question is from Monique Grego from Itau BBA.

[Interpreted] Marcelo, since you touched on Raizen and the fact that you are addressing the challenges, yesterday, we attended Raizen's earnings release call and the talk with investors and discussing the possibilities of a strategic partner as an option. So my first question is, could you share with us what are the ideal conditions to maybe bringing in a strategic partner? And how does that fit in with your other options? And let me follow up on one of the questions. I don't want to be repetitive. But if you could give us a bit more color on when do you expect to receive the insurance claims and what kind of cash can we expect to see coming in from the insurance? And also, what is the current potential to generate results in Moove considering this new production arrangements, as Rodrigo said? You will be rebuilding the plant, but it will be different. So what can we expect in terms of potential current results generation at Moove?

[Interpreted] Monique, thank you for your question about Raizen. I'll start and then I'll turn it over to Marcelo. Before we talk about any partners, I think it's important to reiterate a couple of messages that were shared yesterday during the earnings release call. But as a shareholder, we should say that the company is doing an incredible job. They're doing a fantastic job. In the second quarter, in fuel distribution, we did better than the competition. There have been market share gains and a G&A reduction. They are optimizing the team, the portfolio, their structure. They're also going through an asset sale process that is much better than we had anticipated, and delivering on that. So in terms of what the company management can do, we are extremely happy with the results we've been seeing. Now as for bringing in a partner, considering Cosan's leverage ratio, we are focusing on attracting a new strategic partner to the business. Given Cosan's capital structure restrictions, that would be diluted in an eventual capitalization. But I'll turn it over to Marcelo so he can add to what I just said.

[Interpreted] Well, the fact is that bringing in a strategic partner is an option we do like. The first capital contribution is key in bringing in somebody who is in line with our and Shell's strategy is also important to the business. That is an effort we are pursuing jointly with Shell. Obviously, it's too soon to say how things will pan out, but we have confirmed through a company announcement that there is a joint effort towards doing that, towards executing on the plan, knowing that the company does need capital and understanding that it might be possible to bring in a partner that will have the same focus on strategy, that would be a priority for us and Shell as well. And we know that there are some options that might make sense. So as we move forward, we will be updating you. Again, there is a sense of urgency. Timing is key to us, both for Cosan and Raizen. And we are trying to speed things up as much as possible. But as we said yesterday, I will reiterate the fact that we are interested in pursuing, bringing a strategic partner in for Raizen. As to your second question about Moove, we won't be disclosing any guidance in terms of what will happen to the company. But let me just reiterate a couple of points. First, if regulation goes as planned and the process with stakeholders as well, that will be key. And the second point is the company is working on and will continue to work on the optimization of this new ecosystem. As I mentioned, in terms of volume, we are on track. It is key to highlight that. Now we are focusing -- so if we have ensured the customers and the volume, how can we optimize our operation? That's where we are. And every month, we are looking for improvements and opportunities for improvement.

The next question is from Gabriel Barra, Citi.

[Interpreted] My question is on the same topic, but slightly different. I remember your Investor Day a few years ago talking about the partnership and succession. And now, looking at the current situation in terms of the balance sheet and your will to deleverage and what's happening to Raizen, the need for capital and the current scenario in terms of priorities and the fact that capital allocation is not a priority, how about a capitalization at Cosan? Thinking of succession or long-term partnership, not for now, but considering the Raizen scenario, wouldn't it make sense to bring in a partner and to increase capital at Raizen but through a capital increase at Cosan? Couldn't that be a possibility if you don't get this third player coming into Raizen?

[Interpreted] Gabriel, I'll start by the second one. I want to make it very clear that there are 2 very different things. So not bringing in a third player into Raizen has nothing to do with increasing capital at Cosan. Even if it's key to deal with Raizen's capital structure issue, that is a priority for us, but that doesn't mean anything has to happen at Cosan. Now in terms of succession at Cosan, we know that, that is a key topic. To me, that is a top priority, right along the capital structure issue, and we will have to address it in time. Generally speaking, the management of the company is aware of the importance of that. We discussed it. And it's something it has to be decided on by Rubens and his family. We have discussed it with him. Now in terms of executing on the plan, our priority is assets -- that we will be monetizing on some assets partially. We're not going to sell any company in the portfolio in its entirety. I want to make that clear. We want to have access to a resource pool that will help us with the strategy to rebalance our capital structure as a first step. Now increasing capital is something that has to be discussed with Rubens. And if it happens, it will happen at the right time and with the objective of also looking at succession, I do agree with you. But it has to happen at the right time after it's discussed and agreed on with Rubens and after we have addressed the more relevant capital structure issues at Cosan. So we'll start with the assets. We'll follow the sequence of events. We'll look at Raizen, discuss the options with Rubens in terms of the future and succession with him and the family. And we might get to the point you mentioned. But that's not something I can discuss with you at the moment.

The next question is from Gustavo Sadka, Bradesco BBI.

[Interpreted] I have one question, because I think most of the questions have already been asked. About the dividends, it's a moot point that Raizen -- paying out dividends is a bottom priority for Raizen at the moment. But Compass had some excellent results, strong cash generation, leverage under control. Would it be fair to think that Compass might pay out dividends above its 50% payout policy in the short term? And as for Moove, considering all the restructuring, Moove was -- also paid out some good dividends in the recent past. So given the recent restructuring and the insurance money coming in, would it be fair to think or to expect that, not this year, but maybe 2026 or '27, that Moove might become a major dividend payer for the holding company?

[Interpreted] We're not disclosing any dividend guidance for the business. It's much more about exercise understanding what's happening right now. And you're right. I'm not, as I said, disclosing any value guidance. But Compass is a company that has a stable and growing business. It's resilient to the cycle and it is generating cash. So naturally, it tends to be a company that will pay out good dividends, and that's what we expect moving forward. But I won't be disclosing any guidances. It's too soon to talk about Moove. Right now we are focusing much more on making sure that the company is back on track compared to where we were. There has been considerable progress and we're very happy with what we're seeing. But it's too soon to talk about it. Now looking forward, obviously, it always has and will continue to generate cash. It's a healthy company. It's just going through a rough patch. So looking to the mid to the long run, you're right, the company will generate a lot of cash. It's financially healthy. But right now, the focus is much more on bringing the company back on track to its full operating capacity and addressing the insurance regulation process.

The next question is from [ Rohm Rodrigues ] from XP.

[Interpreted] Some of my questions have already been answered. I have a follow-up question about Moove. The asset that was accounted for, BRL 491 million in the loss/profit, is that a preliminary assessment? Have you made any progress on whether you might be receiving that? Is there any more red tape that you need to go through with the insurance company to make sure that that is the right amount? And do you know roughly when you'll be able to monetize on that asset?

[Interpreted] In practice, the amount we accounted for, we couldn't disclose that. We couldn't disclose which insurance categories. We have talked about that in previous earnings release calls. The company didn't just have the loss/profit. There's also the environmental side. There's also the fact that we are rebuilding the plant already. So that's the full amount. Now in terms of estimates for the future, we won't be disclosing our guidance on that. As I said, we will be realizing the size of the impact in the future and we will account for additional items in the future. Now in terms of how long it will take to monetize that, the regulation process is ongoing, and obviously, it involves many different stakeholders. And we have no estimate in terms of the timing for the monetization. The only thing I can say is that the regulation process is on track, and we're all happy with how it's going.

This concludes Cosan second quarter 2025 earnings release video conference. For further questions, please contact the Investor Relations department. Thank you so much for joining us, and have a great afternoon. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

Good morning, everyone, and thank you for waiting. Welcome to Cosan's First Quarter 2025 Earnings Release Conference Call. [Operator Instructions] The video conference is being recorded and will be available on the company's IR website at cosan.com.br. During the company's presentation, participants will be on a listen-only mode. The question-and-answer session will begin once the presentation is concluded. Please note that the information contained in this presentation and in statements that may be made during the conference call regarding Cosan's business prospects, projections and operating and financial goals constitute the beliefs and assumptions of the company's management as well as information currently available. Forward-looking considerations are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events, and therefore, depend on circumstances that may or may not materialize. Investors should bear in mind that overall economic circumstances, market conditions and other operating factors may affect Cosan's future performance and lead to results that differ materially from those expressed in such forward-looking statements. I will now turn it over to Mr. Rodrigo Araujo.

Hello, everyone. Thank you for joining our earnings call for the first quarter of 2025. Going through our usual disclaimers here. So, for our next slide, we start with the highlights for the quarter. We had a quarter with around R$5 billion of EBITDA under management. It's the first quarter that after the divestment of the Vale stake that we have. So, these results are excluding the results of Vale for 2025. We also had a net loss of R$1.8 billion. This quarter was marked also by a relevant reduction in our net debt, mainly coming from the divestment of the Vale stake in the beginning of January this year. So, closing the quarter with R$17.5 billion of net debt. In terms of dividends received, we had relevant dividends coming from Compass in the form of capital reduction. So, we had a relevant shareholder distribution from Compass, just reinforcing the thesis of very strong cash generator and a company that's able to navigate its growth cycle while distributing relevantly part of its results to its shareholders. In terms of our interest coverage ratio, we had 1.2 times this quarter, and it's, of course, positively affected by the distribution coming from Compass, so this also -- it's a relevant impact in the first quarter of '25. And also, in terms of our LTIF and the safety ratings, we continue our safety journey. And of course, we have the safety -- we have safety as a non-negotiable value in the portfolio. Unfortunately, we have fatalities in the operating companies in this quarter, but we continue to be very diligent and strongly committed to having zero accidents in the portfolio and to have the highest safety standards in our operations. So, going to the next slide, looking a little bit more into the operational performance of the operating companies. We had a quarter of lower volumes at Rumo. Of course, that was mainly impacted by a certain delay in the crop season. So, we expect -- we continue to be constructive in terms of the company meeting its guidance for the year, but it's going to be a year that will be more concentrated towards the second half of the year. And of course, the operational efficiency and the ability to execute Rumo's operation will be quite relevant for the next coming quarters so that we are able to meet the guidance for the year. But it's also relevant to highlight that we had an increase in the average tariff for Rumo, which reinforces our understanding that the competitiveness of the railway in terms of the logistics solution to grain exports in Brazil continue to be quite relevant. In Compass, we had the quarter with an increase in natural gas volumes. So, it is, of course -- it's part of the strategy. Remember that we had the acquisition of Compagas well. So, we continue to have an increase in distributor volumes. It's also relevant to highlight the fact that we had better margin this quarter coming from a better mix from the residential segment, mainly the increase of residential sales in state of Sao Paulo. And also, it's relevant to highlight what's the deployment of the strategy of Edge, our marketing and services company. We continue to not only access the non-regulated gas market in Brazil, where we're able to directly assess the industrial consumers and increased our footprint in that market, but also the optimization of LNG cargoes that we are basically using the re-gas terminal to do arbitrage operations in the LNG market, which is an important part of the thesis and the strategy that's showing to be quite successful in Compass. In Moove, the quarter was significantly impacted by the fire that we had in the Ilha do Governado industrial complex in February. The company is strongly focused on getting back to its operational results and finding alternative production solutions to deliver the volumes and the expected results, but of course, the first quarter was significantly impacted by the fire that happened in February. In Radar, we had not only an increase in its EBITDA coming from the lease agreement, but also we had a sale of land in the first quarter, and it's relevant to highlight that we continue to sell part of the portfolio, and we continue to be able to deliver the transactions above the land appraisal. So, basically, we reinforced the value of the portfolio through the sales that are already on going. And finally, Raízen had a tough quarter in terms of volume, mainly in the sugar operations and also lower results in terms of trading as well in this quarter, impacting negatively the quarterly results. Moving on to liability management. We had a very active quarter, mostly coming from the divestment from the Vale stake. So, overall, this quarter, we raised somewhere around R$11.5 billion, apart from the divestment of the Vale's stake in part from the debenture that we issued in the Brazilian capital market as well. And the use of proceeds were mainly to fully take out the '27 bonds that were outstanding, and we also partially redeemed the '29, '30 and '31s. We have also fully redeemed the first series of debentures in Brazil and also partially redeemed the fifth and sixth series of debentures in Brazil. So, this was a very active quarter in terms of liability management. I think it's relevant to highlight that we were able to do that reducing cost and improving the maturity of the debt profile as well. So, this was also quite -- it's also quite relevant to highlight. In our next slide, we see that we had -- we ended the quarter with R$21.7 billion of gross debt, which translated into R$17.5 billion net debt. You can see that we're carrying liquidity. And of course, in this uncertain times that we see with a lot of market volatility, it's relevant to have additional liquidity. As I've highlighted before, our interest coverage is 1.2 times for the quarter, a little bit higher than last quarter, but it was affected by the distribution that came from Compass this quarter. So, it's important to highlight that we had additional dividends coming from Compass impacting this number. In terms of the amortization schedule, on the lower part of the chart, you can see that we have no amortizations until '28. And of course, we did a lot of liability management on other parts of the curve. So, we finished with an average duration of 6.4 years and an average cost that came down from CDI plus 1.4% to CDI plus 91 bps. So, next slide, we look at the cash flows for the quarter. Of course, the most relevant figure here is the divestment from the Vale stake, as I've mentioned. We also had raised additional debentures in the domestic market. And the use of those proceeds were mainly to pay down debt and also to redeem part of the non-controlled interest of the preferred shares that we had in Cosan Nove, the company that has the stake in Raízen. So, we partially redeemed the preferred shares in Cosan Nove as part of our capital structure strategy. So, this is a little bit of what we had for the quarter. Thank you once again for joining us. And please, let's move on to our Q&A session. Thank you.

We will begin our Q&A session with Mr. Marcelo Martins; Mr. Rodrigo Araujo; and Mr. Fernando Tinel. [Operator Instructions] Our first question is from Gabriel Barra from Citibank. We will now unmute your microphone. Please go ahead, Mr. Barra.

Hello? Thank you for taking my questions. Hi, Marcelo. Hi, Rodrigo. Hi, Tinel. I have a couple of questions, please. The first one is about the capital structure and short-term divestments. Obviously, that is the main topic at the company that migration of the debt value to equity. And maybe considering lower interest rates, maybe there are a lot of questions about that. So, could you give us an update on the divestment process? And what we can expect in the short term? What are the main elements we should be looking at this year? Second question, Since Moove is one of the few companies that don't hold a conference call, I think it would be interesting to discuss their thesis. It's been a tougher quarter, as Rodrigo said, because of the fire. Could you talk about your strategy for Moove, first? As far as I understand it, and this is something to be discussed, what should we be looking at? And what should be your priorities now that the plant is being rebuilt? Is it market share, or is it margins? There's a supply issue that you need to address. So, what kind of a timeline are we talking about to solve that problem? So, if you could give us a bit more color on Moove, that would be great. Thank you.

Great. Good morning, Barra, and thanks for the questions. I'll start with your second question about Moove and then we can talk about the capital structure. So, after the fire, the company has been able to react quite quickly. And it's been impressive how fast it found alternatives. You're absolutely right. The company is focusing a lot more on volumes than margin. The supply chain won't necessarily be the same in the future. It's much more to meet this -- meet our client needs. That is a focus. The company has the capacity mapped. It's 100% in terms of alternatives. It is executing and taking all the required measures, whether it be through certifications for the clients or setting up plants, it is doing everything that is required in terms of facilities that will act as an alternative. That was already part of the company's plans to do some risk management and take away some operations from the Rio de Janeiro plant. We acquired a Greece plant, and there was a plan to migrate that to outside the Rio de Janeiro plant, so that might happen a bit faster. Every month -- I mean, this quarter, there was the fire, but April was better than March. There's a clear catch-up when it comes to results. The company is coming back. So that's where we are in terms of the operation. The company does have an insurance strategy. There's a lot of discussions going on around insurance at the same time. These are longer discussions to be had, but they are happening at the same time. In terms of the future strategy, very little will change when it comes to the company's strategy. As you know, it's been focusing on an international rollout. Obviously, now the company focus is much more on what's happening now rather than any kind of rollout, it's delayed that slightly. But obviously, in the short-term, the focus will be getting back to our capacity as soon as possible. In terms of the plant in Rio, at the end of this process, and obviously, there's a learning curve. Every month, we are discovering new things, seeing new things. So, the future of the Rio de Janeiro plant in terms of setup will be completely different when it comes to fires. Part of the production that makes sense going somewhere else will go somewhere else, the vocation of the Rio De Janeiro plant is for large-scale products. So, this plant will tend to focus on large scale. Anything that is special or smaller will tend to migrate to other facilities. We still don't have a reconstruction process going on because, obviously, the company is looking at Moove's facilities. And they're looking at what will be migrating to outside the Rio de Janeiro, so that's it in broad terms. About your first question in terms of the capital structure, there are lots of ongoing alternatives, nothing concrete to share right now, obviously. But in terms of a sense of urgency, nothing's changed. It's very clear to us that the divestment and the Vale divestment is part of what we need to do. It's very clear to us that we still have to raise funds and there are many alternatives to do that. It's a long journey. And at the end of this journey, we'll make sure that we don't land on a worse portfolio. So, we're being very careful coming up with alternatives. Obviously, we have plans A, B and C to make sure that we come out with a better capital structure. Obviously, we need to reduce leverage, but obviously, we don't want to do that and end up with the worst portfolio. So, it's not a simple balance to strike. We need to do both things, but we are pragmatic enough to know that we have successful initiatives and those that aren't successful, we have other alternatives.

So, just to complement to what Rodrigo is saying. First of all, we are fully focused on adjusting Cosan's capital structure. Obviously, at the same time, we are monitoring closely the divestment initiatives at Raízen. And on our side, we are directly involved in seeking solutions that go beyond that divestment. And that's a key priority for us. So, we have some ongoing initiatives and advanced discussions to be able to execute on them. We won't go into detail because it will be speculation about a work-in-progress. But what I can guarantee is that we have made a lot of progress compared to a while back when we sold Vale, we have great alternatives in terms of execution, and we are very optimistic that we will be able to address that quickly. We have a clear strategy. We need to improve Cosan's capital structure. At the same time, we need to adjust Raízen's capital structure so that we can, as Rodrigo said, keep a well-balanced portfolio. And people might ask, "Oh, are you considering selling considerable stake at Compass or Rumo? " No, we're not considering that. That would not be the best way forward for us. We are considering other options that go beyond that specific option. So I want to make that very clear. We are -- right now, we are executing things. Thank you, Barra.

Thank you, Marcelo. Thank you, Rodrigo. That was very clear.

The next question is from Isabella Simonato from Bank of America. We will now unmute your mic. Please go ahead, Ms. Simonato.

Good morning, Rodrigo. Good morning, Marcelo. Thank you for giving me a chance to ask questions. I have a couple. The first one, Marcelo, your strategy and your focus are very clear. And you mentioned Raízen, you said that you are monitoring what's going on there very closely. So, I'd like to hear from you a bit more on how you see the company's recent performance and the operating prospects for fiscal year '26, which doesn't look like will be an easy year in terms of the circumstances in the sector. So, as shareholders, how are you seeing Raízen's progress? And Rodrigo about the liability management, as you said, you are -- you have been very active. You've been working on changing the debt profile. Is that what we'll continue to see looking forward? And more specifically, about the preferred -- the remaining preferred shares, what can we expect from that structure? Thank you.

Hi, Isa. Thanks for the question. Well, first of all, about Raízen, the good news about Raízen is the level of awareness and practical initiatives to make the required changes and the speed with which these changes are being implemented. They're being very realistic about the circumstances in this sector. There was a shareholders' meeting with Shell in London this week. And so, to us and to Shell, it's very clear that once this rebalancing stages over in the capital structure, the company has not only excellent prospects, but it's very clear that they will be focusing on core business at high levels of efficiency and focusing on returns. Obviously, we need to consider substantial divestments, those divestments will also include energy, so reducing our crushing capacity and the portfolio's plants. There's also a high level of interest. Obviously, we're not talking about an umbrella mandate selling all the assets. That's not the case. But in the execution strategy, there's a -- we're very clearly optimistic when it comes to the volume of divestments and the impact that will have on the company's deleveraging. That will not be the only solution. We are considering other alternatives. I won't go into any detail because it's all work-in-progress. But as Raízen has stated during their earnings call, all options are on the table. So, I can speak for myself and for Shell, we're very pragmatic, highly focused, so you'll be looking at the divestments, the energy assets as well as the distribution business and the shareholders' role will be to look at what's under our responsibility and not the capital structure of Raízen itself.

Isa, to your second question, in terms of what we needed to do and using the proceeds from our divestment at Vale, we've done quite a lot. You saw that in the first quarter, obviously. Right now, there's more uncertainty and there are divestment alternatives and other options in the capital structure. So, we'll carry more liquidity. But in terms of changing the debt profile, we'll always be looking at opportunities to access the market and to improve the structure. We're very cost sensitive. I'm sure you saw that we've been able to extend the duration and there have been some positive windows at the end of last year. There was a great spread window in the Brazilian market. And this goes for Cosan. We are not just sitting and waiting. The company is very sensitive when it comes to numbers, but we're not counting on that. And about the preferred shares, it's something we are continuously monitoring. There are variabilities, whether it's going to pay out dividends or not, there is a differentiation in terms of fiscal losses. So, we're monitoring the efficiency of the structure the whole time, and obviously, we can address that at any time depending on the variability and fiscal issues. In terms of cost priority, it's not the first alternative, but we are looking at it. Thank you for the question.

Thank you.

Thanks.

The next question is from Matheus. Please go ahead, Matheus.

Thank you. good morning, Marcelo, Rodrigo, Tinel. Thanks for all the clear answers so far. My first question is about the interest coverage ratio and its impact. What I have been seeing as a consensus, and according to our math, obviously, we could be wrong, but it sounds to me like in the second quarter, Cosan will be very close or below 1 time in terms of interest coverage ratio given the concentration of dividends we had in the last quarter. And maybe, this ratio will only improve in '26 rather than in '25. My question has to do with Barra's question in terms of sense of urgency. Will that trigger any covenants? Are you discussing anything like that? Is there a sense of urgency in the second quarter? So that's my first question. Will that be a trigger for the company? And the second question is also along the same lines, but about the cash need and the structure of the preferred shares. Compass' capital structure is clear. But considering the 25% of the Compass' dividends being paid out to preferred shareholders looking forward, and at Cosan Nove, if I got it right, there was a dividend payout of the preferred shares, but it wasn't followed up by a dividend paid out to the holding company. So, what about the cash needs at the HoldCo level? Will you have to add some money to the structure to pay out dividends to the preferred shareholders and the lack of visibility in terms of Raízen's dividends in the short-term? So those are my two questions. Thank you.

Thanks for the question, Matheus. I'll start with the interest coverage ratio. It won't be a trigger for covenant. It has to do with a healthier capital structure for the company. You're right. Organically speaking, the cover ratio will tend to drop. And as I mentioned, the additional dividends will be paid out only in the first quarter. So, as -- it will go down over time and that is one of the points that only reiterates the fact that we need to lower our net debt. That's why we're discussing alternatives to decrease that. The sense of urgency has to do with having a more well-balanced structure than anything to do with covenants regarding liquidity. To your second point about preferred shares, those are two different things. Obviously, given the structured model, preferred shareholders will be -- will have a preference, you're right, but there is no -- it's not obligatory to pay out those dividends. What happens is that over time, when there's no dividend paid out and the fiscal side is different, then we have to monitor to make sure that the structure is not more costly than other structures -- capital structures at the company in terms of the service at Compass. It will depend on the level of payments by the company looking forward. You're right in terms of preferred shareholders being -- having the priority, but what happens looking forward will depend on the company. That's the context. Thank you for your question.

Thank you.

The next question is from Guilherme Martins from Goldman Sachs. We will now unmute your mic so you can ask your question. Please go ahead, Mr. Martins.

Thank you. Hi, Marcelo. Hi, Rodrigo. Hi, Tinel. Good morning, and thank you for taking my question. It's a follow-up to Matheus' question. Obviously, the company is going to have to divest more to get to a healthier situation or closer to the 5.2 times, as you said, which will be healthier. So, if there are no more divestments as of now, what would be a potential DSR in terms of interest coverage ratio by the end of the year?

Thank you for the question, Guilherme. We haven't disclosed the guidance on that, but as I said, it should drop along the year. It should be lower than that. It also depends on the performance of the companies in the portfolio. Obviously, we'll be working throughout the year to see how that's going to pan out. But you're right, so it's an important chapter, and we're definitely working to make sure that we execute on something this year. We're not working with a scenario where we will not be executing on that this year. Thank you for your question.

Thanks, Rodrigo.

The next question is from Lucas Ferreira from JPMorgan. Please go ahead, Lucas.

Good morning. I have a couple of follow-up questions about what you've discussed earlier. Rodrigo, could you talk about Moove? What are you expecting in terms of CapEx for the next one to two years, considering the fire, you mentioned looking for alternatives to Ilha do Governador? And I have another question about Cosan Nove. Is there a clause? What might happen if there's a capital increase at Raízen? Will that trigger any advances? What might happen to Cosan Nove if there's a different structure at Raízen or a capital increase or anything that might happen in the future?

Thank you, Lucas, for the question. Well, about Moove and CapEx, right now, we don't have a CapEx estimate because, as I said, we're working on things that will be migrated in the company's facilities. Given the current scenario, we are using a mix of companies facilities. They are third-party facilities, but apart of that, we don't have a CapEx estimate for the time being. We have considered something marginal, especially in terms of adjustments and set up, but we don't have an estimate. As I said, the company has an insurance, has its own insurance. So, the expectation for the CapEx, whatever it might be for the plant, a large part of it will be covered by the insurance. To your second point about Cosan Nove, there is no specific clause, but obviously, a lot will depend on what happens to the structure. There will have to be a renegotiation because Cosan Nove structure may not make sense anymore, it might be impacted. There's nothing happening at the moment, but depending on the company's capital structure, there may be a need for a reduction, but nothing major. And the partial redemption that took place this year is something relatively simple to do. So, it shouldn't lead to an impact of a discussion at Raízen. Thank you.

Thanks.

The next question is from Regis Cardoso from XP. We'll now unmute your mic so you can ask your question. Please go ahead, Mr. Cardoso.

Good morning, Marcelo, Rodrigo, and Tinel. And thank you for taking my questions. A couple of follow-up questions about the capital structure. Rodrigo mentioned that you'll have to reduce the absolute debt level. So, what are we talking about at the end of the day? Are you planning on bringing the HoldCo debt level to zero and considering that the preferred debt might not have the same fiscal effect as the tax shield? What would be your target? Is it R$10 billion, R$0, R$15 billion? In terms of the preferred shares, Rodrigo talked about variable rates. What kind of variability are we talking about? And is there a tax efficiency effect when the redemption value is over the initial value? Is that something we should be monitoring? And if you'll allow me a third follow-up question, please? Do you have any idea about Moove's timeline? Can it be measured in weeks, months or years, just so we know what to expect? Thank you.

Thanks for the questions. As for Moove's timeline, not for the reconstruction CapEx, but by the end of this year, we expect to be in a much better position, not only in terms of production capacity, but in terms of a clear strategy and executing on the CapEx. There's also the insurance, as I mentioned. So, I don't see that as a risk. I was talking about the rate step-up. So, there are points in time when there are rate step-ups and the current cost level. That begins to not be competitive. I'm talking not just about Cosan Nove, but Cosan Dez. At the average cost we have right now, it will be more expensive than the average cost. So, it will be less compelling. To your point about the results and the balance that is over the original amount, the important point is, it has a lot more to do with the company results and the dividend itself, so the destination going to the preferred shareholders has to do with the net income. I mean the fact that it's over the original value isn't a risk to the company. And about the capital structure, we did mention that in the last call, we're aiming to execute that in the next month or two for the short-term. We should have a healthier structure. And in the long-term, it should be zero. I don't want to exaggerate, but that's the midterm, [R$1.5 billion] (ph) is what we're looking at. We'll be in a better position and we'll allow us to navigate that challenging scenario where they are higher interest rates. Thanks for the question.

Let me just jump in. What we want is for Cosan, the HoldCo, has structural debt level closer to zero. I don't know if we'll get to zero, but the HoldCo's dependence on a growing dividend cycle of the operating companies should not take place. So, we need to give freedom, so these companies can grow, so they can implement their strategies. And our focus will be -- has been already and once we can focus again will be through the controlled company. So, our objective is to not have any new lines of business or any substantial acquisitions done through Cosan. That's a moot point, and that's what will allow us to have low structural debt levels, so that we can continue to manage our portfolio efficiently.

Thank you, Marcelo. Thank you, Rodrigo.

The next question is from Gustavo Sadka from Bradesco BBI. We'll now unmute your mic so that you can ask your question. Please go ahead, Mr. Sadka.

Thank you. Hi, Marcelo. Hi, Rodrigo. Hi, Tinel. You've addressed most questions. I have a question about Radar. Right now, given the current interest rates, considering a CDI investment, it looks like it's more favorable to sell and given the company's leverage, will you be ramping up land sales? And what can we expect in terms of those sales? Thank you.

Hi, Gustavo, thank you for the question. Yes, that's already happening in practice. To your point, about the target, we don't have a set target for that, but in addition to the yield, we have been selling this land above our portfolio appraisal. In the last few years, we've captured significant value, especially the bumper crop. And you're right, we're below [the SPS] (ph), but that's been happening for a while without a guidance for that. Thank you for the question.

Thank you, Rodrigo.

The Q&A session has now concluded. I will now turn it over to Mr. Martins for his closing remarks.

In my closing remarks, I'd like to focus on Raízen, please. I think we have made great progress in the last few months. We're very, very happy with the measures that have been implemented by the new management, by their focus and a very clear view about the future of the company, as well as the divestment plan that is being put in place right now. We do have a very feasible plan. And it's the right size to be able to adjust the capital structure. We are highly confident on the company's ability to deliver excellent results and to focus completely on the company's core business. And I'm speaking for myself, and I am also speaking for Shell. Even though this has been a very tough quarter, I think, once again, it does show how serious and how engaged the company's management are to take the necessary measures to make the necessary adjustments and to communicate that clearly to the market. And our role, everything that goes beyond the company's divestment plan. It's very clear to us and to Shell, we're working very closely with them. We are in agreement with what we need to make in terms of adjustments to our capital structure, and we're working together and highly focused on that. So, thank you all for joining us on this call, and we'll see you soon.

Cosan's first quarter 2025 earnings release video conference is now concluded. For further questions, please contact the Investor Relations department. Thank you so much for joining us, and have a great afternoon.