Cosan S.A. Q4 FY2025 earnings call

Financial highlights: Managed EBITDA, adjusted net loss, dividends, leverage metrics, safety. Operational performance: Brumo, Compass, EDGE, move, Raisin, Rate. Transactions: Sale of stake in Vale, public equity offerings, partial sale of Rumo shares. Debt management: Reduced expanded net debt, SCR decrease, amortization schedule

Managed EBITDA totaled 7.8 billion BRL in Q4 2025, broadly in line with Q4 2024. Full-year managed EBITDA reached 26.5 billion BRL, a decline from 2024. Adjusted net loss in Q4 was 0.7 billion BRL, full-year was 4 billion BRL. Expanded net debt decreased to 9.8 billion BRL. Safety indicator improved with no fatalities. Brumo had higher transported volumes and EBITDA up 4%. Compass saw increased gas distribution volumes. EDGE had higher volumes marketed to free market. move had 14.5% market share in Brazil. Raisin had fuel distribution growth but crushing pace slower and sugar prices lower. Rate had lower property sales volume and EBITDA 6% lower

Forward-looking statements based on beliefs and assumptions. Leverage reduction efforts ongoing. Plans to deleverage holding company and optimize portfolio

Forward-looking considerations involve risks, uncertainties, and assumptions. Overall economic circumstances, market conditions, and operating factors may affect future performance. Risks related to Raizen's capital structure negotiations

Q: Could you tell us a bit more about the conversations with Shell and what are you thinking about Raizen, the portfolio, deleveraging the company, and Kozan's focus on making the company more resilient on the balance sheet side.

A: Recap of conversations on Raizen's capital structure, prioritization of Kozan's leveraging, and ongoing discussions with creditors.

Q: Could you talk about what was discussed with the market at the end of the capitalization at the end of last year? And 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 whole coal level, which was 88 billion. 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 MOVE. 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 going to build up their capacity at that plant.

A: Move has recovered full capacity, challenges with costs in 2026. Efficiency changes in fourth quarter, holding company role adaptation.

Q: What is the end game of deleveraging the company? And how quickly do you want to do that? Because the holding company is growing now to two times the debt service coverage ratio. So what is the end goal in the short term? Do you want to get to four times the debt service coverage ratio? Do you want to cut the debt by half? And when do you think the hold call will get to the level you want for the hold call? In the short term and also considering a long-term portfolio for Cosan.

A: Objective to bring holding company's debt to zero, no specific date, will execute divestment strategy when right.

Q: There have been lots of news recently about potentially selling Rumo and the price of shares are undervalued, so 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 Kozan go? How far won't it go? What are the boundary conditions?

A: No changes to governance, speculation about selling Rumo is wrong, no formal divestment plans.

Q: 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 banked to the 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.

A: Repaid some debentures and bonds, perpetual bonds with three-year FX protection.

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

A: No minimum stake defined, spinning off businesses not non-negotiable as Colzan not contributing capital.

Q: About radar, could you give us an update on... You have moved towards... 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?

A: Still recycling portfolio, no concrete news on radar negotiations