Cosan S.A. ADS

Português ou inglês. Para aqueles ouvindo a videoconferência em inglês, há a opção de mutar o áudio original em português, clicando em Muito Original Oreo. Informamos de que essa videoconferência está sendo gravada e será disponibilizada no site R da companhia, cosan.com.br, onde se encontra disponível o material completo da nossa divulgação de resultado. Durante a apresentação da companhia, todos os participantes estarão com o microfone desabilitado, In seguida, daremos início a sessão de perguntas e respostas. Para fazer perguntas, clique no ícone de levantar a mão na parte inferior de sua tela para entrar na fila. Ao ser anunciado, uma solicitação para ativar seu microfone aparecerá na tela. Então, você deve ativar seu microfone para fazer perguntas. Orientamos que as perguntas sejam feitas todas de uma única vez. Ressaltamos que as informações contidas nessa apresentação and other declarations that can be made during the video conference regarding the business prospects, projections, and operating and financial goals of COSAN constitute beliefs and premises of the company's administration, as well as information currently available. Future considerations are not performance guarantees. They involve risks, uncertainties, and premises, as they refer to future events and, therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions, and other operational factors can affect the future performance of Cozum and lead to results that differ materially from those expressed in such future considerations. Today, we have the presence of the company's executives, Luiz Henrique Guimarães, e Ricardo Levin, CFO e DRI. Passarei a palavra ao Sr. Ricardo Levin.

Before going to the numbers, I want to highlight that, despite the highly volatile economic scenario, we ended the third quarter with strong results and took important steps on our group's growth journey. Let's now watch some of the main financial and operational highlights of each of our businesses. On slide number three, you can see Raize's results. In renewables, revenue growth and higher revenue-to-sales volume were not enough to neutralize the decline in oil sales volume and the inflationary pressures on costs and expenses that adversely affected the revenue diffusion. In sugar, more than double, reflecting the higher share of direct sales and greater price. In marketing services, the adjusted EBITDA fell in the quarter, In Brazil, the operation was mainly affected by the dynamics of the fuel market, with successive and atypical declines in prices, which affected inventories, and by the price of CBOs. Meanwhile, the result of the Latin American operation was in line with the same period last year, reflecting the greater sales volume and operating efficiency gains, which were partially offset by higher pressures on inflation and the exchange rate. As you probably followed in the earning conference call last week, Raizen continued to advance in its E2G project strategy. I want to highlight the announcement of the sales contract with Shell, jointly with the construction of five additional new plants to meet this demand. Let's turn now to slide number four, which shows the result of Humo. Rumo delivered a quarter of record EBITDA and volume, driven by growth in the transported volumes in the north operation and better operational performance. Rumo gained market share in grains in Mato Grosso and registered strong volume growth in grain exports from the port of Santos. If so, we lost market share in relation to the third quarter of 2021, a period marked by weaker logistics demand due to the corn crop setback in 2021. The expansion in IBDA margins is expanded by the higher consolidated tariff and our usual cost discipline. Looking to the long term, in November, therefore an event after the reporting period, Humo announced the beginning of the execution of the extension in Mato Grosso project, which involves the section between the cities of Rondonópolis and Campo Verde. Let's turn to slide number 5, which shows the highlights of COMPAS. COMPAS delivered yet another quarter of consistent results, with excellent operational performance as SUGAS and consolidation of COMIT's results. These effects offset the lower sales volumes in the industrial segment, even the scheduled maintenance shutdowns, despite the recovery in the commercial segment and the resilience in the residential segment. We remain dedicated to the integration of COMIT with a focus on replicating our business model and working to conclude the divestments already announced. Let's move to slide number 6 with the result of MOVE. We reported another quarter of IPDA growth at MOVE, which was leveraged by the more profitable portfolio and sales growth, and also because it was the first quarter with the full consolidation of Petrochoice and Tireno. We delivered strong operating cash flow in the quarter, which was more than double the amount of EBITDA, in line with our sourcing and pricing strategy, which supported the leveraging in the period. Lastly, we remain focused on the integration of Petrochoice, which is advancing in line with the planning. Let's go now to slide number 7 to talk about Vale. In early October, we announced the acquisition of minority interest of 4.9% in the capital of Vale, and a second operational structure, which corresponds to an additional financial exposure of 1.6% that could be converted into a direct interest in Vale. The financial structure guarantees optionality and flexibility for COSAN and reaffirms our investment thesis for the asset, protecting the interests of our shareholders and limiting losses. Vale is a unique and irreplicable asset that's positioned in an industry in which Brazil holds a major competitive and comparative advantage with exposure to strong currencies. The transaction is aligned with our strategy of capital allocation and portfolio diversification, as well as with our EESG values. Remember that Vale has the world's best iron ore and promising reserves of base metals. which positions it as a key company in the global energy transition and decarbonization. Moving on to slide number eight, we show the consolidated results of COSEN. The result of Cosa Investimento is composed mainly by Radar from the leasing of agricultural properties, with this quarter registering a slight decline in the result versus the second quarter of 2022 due to the market-to-market adjustment for the appreciation in the properties comprising Radar's land portfolio in last quarter. Here, I would like to mention that as a subsequent event of this quarter, we also increased our interest in Telos and Janos, which, like Hadar, are agricultural property managers. In the corporate segment, the structural expenses declined in the third quarter, since the same quarter last year was affected by changes in the long-term compensation plans. As a result, adjusted EBITDA grew in the quarter, leveraged by the record result at Rumo, supported by the greater volumes transported and higher average tariff. Meanwhile, adjusted net income declined in the period due to the impact from non-recurring items in the comparison periods and by the decrease on raising results, reflecting the higher debt balance, which was partially offset by the higher EBITDA in most companies of the portfolio. Kozan's consolidated investments increased compared to the third quarter of 2021, which is mainly explained by the Biosave merger and the E2G plant at Raizen, and by the construction of the TRSP at Compass, which was neutralized by lower capex at Rumo. I want to reinforce that, independent of the recent transactions with Vale, the entire strategic expansion plan for the companies already in our portfolio is being maintained, Let's go to slide number nine, which shows the group's financial highlights. The growth in gross debt was mainly due to the contracting of a bridge loan for acquiring shares in Vale. In addition, Raizen carried out the issue of a new agribusiness receivable certificate and Kozan prepared a 2023 bond. Cash generation for shareholders in the quarter was lower year over year, mainly due to the proceeds from Raizen's IPO and the private funding at Compass last year. Finally, as a result of everything mentioned before, financial leverage increased versus the second quarter of 2022 due to the non-recurring items at Kozan Corporate related to the Raizen IPO and the Biosave acquisition in the third quarter of 2021. Before concluding, I want to reinforce that sustainability is part of our corporate DNA and a key driver of our growth, and it will continue to guide our vision of the future and decision making. Sustainability also is reflected in our pioneering efforts to develop renewable products from sugarcane to the development of efficient logistics and also can be seen in recent transactions I commented today. We continue to seek the generation of sustained value by offering clean energy, secure energy transition, efficient logistics, focus on and respect for people, and a solid corporate governance structure. In closing, I want to note that in September, we were named Best Company of the Year by a leading business magazine in Brazil, which was made possible by the dedication of a team that builds and participates on each step of this journey. I conclude our presentation and now invite you to participate in our Q&A session. Thank you.

Good afternoon, everyone. Thank you for joining us on this call to discuss the third quarter 2022 results. I just want to highlight a few points that Livin raised during the presentation. You saw in the company's operations that we are still pursuing the avenues of growth that we've been sharing with you. So in MOVE, our international expansion and improving business efficiency in more mature regions such as Brazil, Argentina, South America, and part of Europe with excellent results and promising future prospects, increasing our position in both American and European markets. As for Compass, we are concluding the work on the São Paulo terminal so that it's ready in the first half of next year when we'll start operations and to continue to integrate, improve results and transfer technology and best practices in our COMET operation in the new geographical regions where we have expansion of these areas. And to conclude the investment, which has partly happened in the distribution operations of our portfolio. At Rumo, full focus on transporting a record crop with very good seasonality. Our figures were better distributed and we were able to achieve maximum capacity in many areas. And we started our expansion towards Lucas do Rio Verde and concluded the sale of our Santos terminal. So our company is now focusing on expanding and growing capacity so that we can bring on this volume, especially in the Midwest. At Raising, focusing on excellence and productivity, we've had excellent signs in the first and second cuts of the Sugarcane, we're also announcing new plants, so nine plants, five of which have been recently announced, and full focus on execution and implementation and marketing and services. It's been a challenging quarter due to the continued price reduction, but with good prospects when you look at the gross margin and the underlying, we see more healthy margins than in previous quarters, and obviously concluding the turnaround in Argentina, which had a huge impact in inventory increases in September to deal with the downtime at the refinery. So that had an effect on Raizen's leveraging, seasonally speaking, and the group's total leveraging level, but in non-recurring parameters that should go back to normal levels. At Cozano Investimentos, we had the investment in Janus and Telus, increasing our land portfolio. And the Vale operation, reiterating our investment thesis, we have Brazil's competitive and comparative advantages and renewable energies through Raisin, oil and gas through Raisin and Compass, and food through Rumo and Radar. carbon credit generation through radar and raisin and now mining with our initial investment at the Maranhão port and now in Vale. So we believe we now have a fully dedicated portfolio to generate new benefits through this new global dynamic and Brazil's position which should continue.