Financial Data and Key Metrics Changes - EBITDA under management increased from BRL 6.2 billion last year to BRL 7.1 billion in 2024 [4] - The company reported a negative net result of approximately BRL 200 million for the quarter [4] - The debt service coverage ratio improved from 1.1x to 1.3x in the second quarter of 2024 [5][9] Business Line Data and Key Metrics Changes - Rumo experienced higher transported volumes and significant increases in average tariffs, leading to improved EBITDA [5] - Compass saw lower volumes in the residential segment due to higher temperatures, but industrial demand increased, resulting in lower margins overall [6] - Moove maintained stable volumes while achieving significant margin expansion and EBITDA growth [6] - Raízen accelerated sugarcane crushing to 31 million tons, but faced delays in the commercialization of sugar and ethanol, impacting EBITDA [7] - Vale contributed BRL 800 million in EBITDA through the equity pickup method, with a reduction in stake to 4.1% [8] Market Data and Key Metrics Changes - The company noted market share gains in Santos Port, indicating a positive trend in operational results [5] - The fuel distribution margins in Brazil are reported to be healthier in 2024 compared to previous years [7] Company Strategy and Development Direction - The company is focused on capital discipline, managing leverage, and executing projects within its portfolio [3] - There is an emphasis on disciplined capital allocation and monitoring of subsidiary performance to optimize investments [15][25] - The management is not looking to increase its stake in Vale but will continue to monitor the situation closely [16][20] Management Comments on Operating Environment and Future Outlook - The management acknowledged the challenging interest rate environment and its impact on capital allocation strategies [3][38] - There is a focus on organic deleveraging and maintaining a sustainable debt service coverage ratio of 1.5x [21][22] - The management expressed a cautious yet disciplined approach to investments in the current economic climate [38] Other Important Information - The company highlighted the importance of safety standards, reporting a safety record of 0.24 LTIF [4] - The cash balance increased from BRL 2.6 billion to BRL 4 billion, supported by dividends from Moove and Compass [10] Q&A Session Summary Question: Discussion on liability management and potential IPO for Moove - Management emphasized capital allocation and leverage as priorities, with no significant updates on Subida da Serra [12][14] Question: Concerns about holdco discount and potential actions - Management acknowledged the holdco discount and is focused on deleveraging and executing projects to create value [17] Question: Future of Vale investment and its significance - Management confirmed that Vale remains a core asset, with no immediate changes expected in the investment strategy [19][20] Question: Challenges in CapEx execution and portfolio management - Management highlighted the complexities of CapEx execution in Brazil and the need for disciplined capital allocation [24][25] Question: Potential restructuring of preferred shares related to Vale - Management clarified that changes to preferred shares can only occur after four years and are not currently on the agenda [40][41] Question: Options for addressing the holdco discount - Management is open to exploring various options but noted the challenges in the Brazilian capital market [43]

Financial Data and Key Metrics Changes - The company's EBITDA under management for Q1 2024 was BRL 7.1 billion, a decrease compared to the first quarter of 2023, primarily due to the absence of tax credits recognized in Raizen in Q1 2023 [17] - Net income for Q1 2024 was negative BRL 192 million, an improvement from negative BRL 904 million in Q1 2023, mainly due to recognized tax liabilities and negative equity pickup from Raizen [17][18] - Net debt stood at BRL 22.7 billion, consistent with the previous quarter, while interest coverage improved from 1.0 times to 1.1 times over the last 12 months [18][20] Business Line Data and Key Metrics Changes - In Rumo, there was an increase in transported volumes and average tariffs, contributing positively to the overall performance [38] - Raizen achieved record sugarcane crushing levels of 84 million tons, indicating a significant recovery in productivity [38] - Moove reported stable lubricant sales volumes but with substantially higher EBITDA and healthier margins, reflecting successful integration efforts [38][59] Market Data and Key Metrics Changes - The Brazilian market remains challenging, impacting the company's strategic decisions regarding potential listings and capital allocation [4][51] - The company is closely monitoring regulatory discussions that could affect its operations and capital structure, particularly concerning Vale and Comgas [25][51] Company Strategy and Development Direction - The company is focused on capital discipline and liability management, especially in a high-interest-rate environment, to ensure sustainable growth and value creation [37][52] - There is an emphasis on portfolio recycling and seeking strategic partners for core projects to enhance operational efficiency and financial performance [28][49] - The company aims to maintain a healthy leverage ratio of 1.5 to 2 times interest coverage, allowing for organic deleveraging over time [41][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate current challenges, highlighting improved fundamentals and cash generation capabilities [6][19] - The focus remains on executing key projects and maintaining high safety standards, with a commitment to zero fatalities and accidents [18][37] - Future capital allocation decisions will be influenced by the performance of operating companies and the overall macroeconomic environment [63] Other Important Information - The company has unwound part of its collar financing structure to improve access to dividends and reduce complexity in its capital structure [19][54] - The fair market value of the land portfolio was assessed at BRL 16.3 billion, with Cosan's stake valued at around BRL 5 billion [38] Q&A Session All Questions and Answers Question: Can you provide more detail on leveraging and capital allocation? - The company does not have a set target for leveraging but aims for a healthy coverage ratio of 1.5 to 2 times interest coverage, allowing for organic deleveraging over time [41][52] Question: What is the current status of Vale's position and potential adjustments? - The company has made considerable adjustments to its position in Vale and will continue to monitor it closely, considering market conditions and capital structure [3][51] Question: How does the company view regulatory discussions affecting its operations? - The company is actively monitoring regulatory discussions and has strengthened its institutional relations to navigate these challenges effectively [25][51] Question: What is the strategy for capital allocation in the current market environment? - The company emphasizes capital discipline and is focused on executing its growth agenda while being mindful of the high-interest-rate environment [37][52]

aydinmutlu/E+ via Getty Images Investment Thesis My recommendation is to buy Cosan (NYSE:CSAN). Cosan is a holding company with diversified businesses that should be of vital importance for Brazil in the coming years with the energy transition that the world is expected to undergo. Despite the diversification and reduction of operational risks, the company is extremely discounted compared to national peers. The investment cycle carried out by the company is close to the end, as a result it should report bet ...

Company Participants Conference Call Participants André Vidal - XP Bruno Montanari - Morgan Stanley Cosan S.A. (NYSE:CSAN) Q3 2023 Earnings Conference Call November 14, 2023 1:30 PM ET Luis Henrique Guimarães - Chief Executive Officer Thiago Duarte - BTG Monique Greco - Itaú BBA Operator 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 occur. Overall, ...

Interno Make it happen Note: (1) Pro forma Net Debt/EBITDA in the last 12 months (LTM), adjusted by lease liabilities (IFRS 16); (2) Only considers the principal value of the debts, without taking into account the interest and MTM. It treats Perpetual Notes in 2031+ 11 Cosan Corporate | MANAGERIAL FREE CASH GENERATION Público | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------|----------------------|-----------------------------------------|------------------ ...

Ricardo Lewin - CFO, IR Isabella Simonato - Bank of America Operator Good afternoon, everyone, and welcome to Cosan's earnings conference call for the second quarter of 2023. Regarding Cosan's Corporate net income, the growth is explained by the business performance on the top of the market-to-market of the total return swap of Cosan shares and the positive effect of the perpetuates -- due to the FX variation. In this quarter, as part of our liability management process to optimize our debt profile and capi ...

Cosan S.A. (NYSE:CSAN) Q1 2023 Results Conference Call May 16, 2023 9:00 AM ET Company Participants Conference Call Participants Gabriel Barra - Citi Bruno Montanari - Morgan Stanley André Vidal - XP Investimentos Please note that, the information contained in this presentation and in statements that maybe made during the earnings 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 ...

There has been an increase in ESG rules and regulations applicable to our business and we expect this tendency to continue. Given the pace of legislative developments in this area, we may not be able to comply with the new regulations in their totality. We are also exposed to the risk that future ESG rules and regulations may adversely affect our ability to conduct our business by requiring us to reduce the value of our assets or reduce their useful life, facing increased compliance costs or taking other ac ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant To Rule 13a-16 Or 15d-16 of the Securities Exchange Act of 1934 For the month of April 2023 Commission File Number: 333-251238 COSAN S.A. (Exact name of registrant as specified in its charter) Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b) (1): Yes ☐ No ☒ Indicate by check mark if the registrant is submitting the Form 6-K ...

Cosan S.A. (NYSE:CSAN) Q4 2022 Results Conference Call March 1, 2023 9:00 AM ET Company Participants Ricardo Lewin - CFO Luis Henrique - CEO Conference Call Participants Guilherme Palhares - Bank of America Bruno Montanari - Morgan Stanley Marcelo Gumiero - Credit Suisse Gabriel Barra - Citi Operator Good morning, everyone. Thank you for waiting and welcome to Cosan's Earnings Conference Call for the Fourth Quarter and the year 2022. Simultaneous translation will be available during the session. To use it, ...