Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Cosan’s Second Quarter of 2021 Results Conference Call. Today with us, we have Mr. Luis Henrique Guimarães, Cosan’s CEO; Mrs. Paula Kovarsky, Head of IR and EESG; Mr. João Arthur Souza, Head of Finance; and Mrs. Ana Luisa Perina, IR Manager. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the Company’s presentation. After that, there will be a question-and-answer session for industry analysts. At that time further instructions will be given. [Operator Instructions] Today, we have a simultaneous webcast that may be accessed through the Company’s website www.cosan.com. And the slide presentation may be downloaded from there as well. There will be also an audio replay for this call available on that website. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Cosan management and on information currently available to the Company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Cosan and could cause results to differ materially from those expressed in such forward-looking statements. Now, I’ll turn the conference over to Mrs. Ana Luisa Perina, who will start the presentation. Mrs. Ana Luisa, you may begin.

Good morning, everyone, and thank you for joining Cosan’s second quarter of 2021 earnings conference call. Today with me I have Luis Henrique Guimarães, our CEO; Paula Kovarsky, Head of IR and EESG and João Arthur Souza, Finance Director. Before going to the results, I just want to highlight some important milestones that we achieved this past month, on slide 3. We always said that we wanted not only to have one single holding company listed, which we accomplished in the beginning of this year, but also that it makes sense for Cosan to have its subsidiaries listed as well at the right moment. So, successfully pricing Raízen was yet another very important step towards the ideal capital structure for the Group. This really ensured the required level of independence that we will allow the company to accelerate its long-term investment plan to increase the offering of renewable energy. Another important achievement was finding an R$810 million private placement at Compass, at the end of May, bringing new investors who share our long-term view into the company and preparing it to capture opportunities that may arise, while maintaining adequate levels of leverage. Let’s go now over the financial and operating highlights for business, starting with Raízen, which also implemented its own corporate restructuring, officially becoming an integrated company from this quarter on. Since Raízen hosted its own conference call with the market last Friday, I will briefly go over the main topics of the quarter. Starting with renewables on slide 4. We presented excellent performance, and adjusted EBITDA more than doubled year-on-year, ethanol being the highlight. Despite the lower production due to the drier weather and to sugarcane harvest being a couple of weeks late, higher biofuel prices led to an increase in now our own sales volume, allowing us…

Now, I would like to turn the conference over to Mr. Luis Henrique Guimarães to his opening remarks. Luis Henrique Guimarães: Good morning, everyone, and thanks for being with us on this second quarter call. I just want to reinforce a couple of messages that came from the presentation. First, a big pride to believe in this team here who has delivered a lot on the second quarter and the subsequent month of July, where we have done very important structural actions that will perform in the future and will continue to deliver strong performance from the group. So, first up is Compass. So, the start-up of the terminal of LNG here in Santos, the progress on the acquisition of Gaspetro, the discussion of extension of the concession in São Paulo that is on the concession contract and a lot of activities about performing the team and ensuring that we are well-prepared for this next phase of geographical expansion. So, a lot of things happening. On the group, with Raízen, we already talked about the IPO, but also lately the acquisition of Paraguay and the new contracts that will allow us to build new ethanol second-generation plants; the expansion of OXXO very sharply into Campinas and now entering São Paulo in the last few months. The same with Rumo, a lot of new performance done in Santos with a conclusion of some important construction that will reduce our lead time within the port; the implementation of the Rio Verde terminal ahead of the schedule, which was very important for the Central Network; as well with Moove, where we continue to search for new areas of expansion around the globe, and we expect to have some news in the future as we perform very strong results. Also, when you look at…

[Operator Instructions] Our first question comes from Mr. Thiago Duarte with BTG Pactual.

Well, hello everybody. Hello, Luis, Paula, Ana. I have two questions. The first one is a broader one related to what we should think of the group in terms of growth and capital allocation going forward, I think more towards Luis, that question. I mean, as you mentioned, you guys reached pretty important milestones this year with the simplification, Raízen IPO. So, just if you could comment, Luis, a little bit on what you expect -- or how should we expect, especially in terms of timing, the next moves, right, either with regards to the IPO of Compass or the IPO of Moove or even in terms of further investments for Cosan and the possibility of entering new segments and generating new investment ideas. So, if you could comment a little bit on those, I think it would be helpful. And the second question, it’s more related to Compass and especially the acquisition of Gaspetro. My understanding is that there’s still some variables that are not in your control, right, especially in terms with the right of first refusal for Gaspetro minorities as well as state governments. From what I read in the press, some of them are willing to exercise their right of first refusal there. So, if you could comment on which developments you expect to happen for the acquisition to make sense, or which of these variables that you don’t control would be deal breakers for Compass and Cosan for the acquisition? I hope that was clear. Thank you so much. Luis Henrique Guimarães: No. Very clear, Thiago, and thanks for the questions. So, regarding the first one, I think when you look at the plans of each of the companies or each of the four verticals we have, they are very solid, right, from an inorganic…

Our next question comes from Mr. Luiz Carvalho with UBS.

Luis, if I may also make a kind of a broad question. Last week, you had -- I think, last Friday, you had a meeting with Mines and Energy Minister, Bento, in Rio. And lots of, I’d say, the company businesses are facing somehow significant regulatory discussions in May fronts, right? There’s a discussion about the natural gas, and of course, as the last question about Gaspetro and also the discussion between the A&P and ARSESP regarding the distribution/transport pipeline, for example, in São Paulo. Recently, we had this provisional measure signed by the federal government, talking about the fuel distribution business. So, if you can basically share a bit of light in terms of what are the main discussions and what are the main concerns the group has in terms of each of the businesses from a regulatory perspective and where you’re working in order to try to make that -- not for the Company, specifically, but basically for the sector last impact, if I may? The second question, you recently signed an agreement to buy a company -- a fuel distribution company in Paraguay. You already have assets in Argentina. So, just trying to get a bit more sense in terms of the potential path in terms of internalization of the -- internationalization of the Company, if you see other geographies that might be of interest of the company as Moove you already have assets outside of, I would say, Latin America. And if I may, a last one here. Despite of the leverage of the company that you just announced close to 2.8 times when we assess the recent IPOs, both Compass and Raízen, the initial numbers that you presented publicly are way above what the market is pricing. So, would that make sense to try to…

So, if I may just add a couple of points here on the leverage question, Luiz. As you all know, our target is to be between 2 to 2.5 times net debt to EBITDA as a group. So, we’ll always seek for investing our cash position in a balance between opportunities on gross debt amortization, doing our liability management process. This is a recurring process for us at Cosan. As we said in the presentation, we just issued debentures, R$2 billion worth of local debentures to do liability management. So, these opportunities will be always analyzed by our teams, and we’ll always seek for the best capital allocation within this range that we believe is comfortable for the company.

[Operator Instructions] Our next question comes from Mr. André with Itau. André Hachem: So, I have two questions. The first is more specific to this quarter’s results on Compass. You registered on the trading business, a loss of R$380 million, if I’m not mistaken. Could you comment on these positions which led to this loss, have already been closed down and these are the costs of dispositions, or you still have active exposure on this trade? So that’s my first question. My second question is relating to synergies between Compass and Raízen. As we think about the future of renewables and then we think about transition energy, gas could also play an important role, right, especially when we think about the heavy vehicle fleet. How do you expect or how will you pass the contract synergies between Raízen and Compass going forward as they move on with different shareholder base and though they have Cosan, a controlling shareholder? Thank you. Luis Henrique Guimarães: Okay. Andre, it was not totally clear, your voice, but I think I got it. If I don’t respond to what you have asked, please intervene. But regarding the commercialization process or trading -- directional trading business in Compass and if you -- your question was if we will have more numbers on the next quarter or the following quarters, the answer is no. So, what you have seen is basically the positions for the future are neutralized. It doesn’t mean that there is no position, but they are balanced between short and long. So, there is no effect in terms of price valuation going forward. Okay? In terms of synergies between Compass and Raízen, yes, there is a lot of, I’ll call, markets that could have been accessed by both companies. And as you know, as…

Our next question comes from Mr. Regis Cardoso with Credit Suisse.

A follow-up on the previous question regarding Compass and then the second one on capital allocation. So, first one on Compass. I mean, there was a significant loss in this quarter, I think nearly R$380 million. And I wanted to understand, first, if that led -- that was the trigger to your decision of neutralizing the directional exposure. And also related to that, how and whether that changes the business plan you had previously set for Compass? Because I believe you were very ambitious about expanding in the natural gas business, but you were still a player in the electricity sector, right? So, how does that change? So, that’s the follow-up on Compass. Then the second question, and I think that’s more for you, Luis. How do you see Cosan’s role going forward, now that the companies are -- let’s say, you’re good on their standalone basis, and most importantly, they’ve recently raised capital, right? That’s true for Rumo, that’s true for Raízen. Compass might be on the road to raise capital for themselves as well. So, what will be Cosan’s role? I mean, is it a role of paying down debt to increase efficiency from a fiscal perspective at the holding level? Is it a play of, let’s say, buying back stocks to further increase the stake of the existing shareholders? Is it a play of distributing dividends, or is it allocating that capital to something else, something new? Thanks. Luis Henrique Guimarães: Thank you, Regis. Regarding the trade -- directional trading, yes, we saw a tremendous volatility in the market, given the weather patterns and a very different behavior, if you look at the history of this market over the last 30 years. Of course, this has triggered us to take decisive action. And the team led by…

Clear. Luis, if I may, a third question here about Compass. I just wanted to make sure, when you revised downward the CapEx for Compass that it did not affect the investments for the regulated business for Comgás, it was 100% related to the LNG terminal. And if I may, just a second one there, what do you reckon will be the competitive advantages of Compass over other suppliers of natural gas? I think, being fully integrated with the Comgás network, looks like it’s going to be one of them to have a lower cost of transportation for the gas. And if you believe that, let’s say, having the route for connect directly in São Paulo if that too could get in the city gate of Comgás without necessarily going through the transportation network, and if that happens, if that gas will be constrained to the state of São Paulo? Thank you. Luis Henrique Guimarães: Regis, on your first question, the CapEx numbers of Comgás are not changed for these years. So, we will continue to follow our regulatory commitment with the state and the agency. What has happened that the start-up of the terminal here in Santos is a little bit delayed. So, this is why you’re seeing like an adjustment on our expectation of CapEx. But, we will continue to build our network in São Paulo, continue to connect over 100,000 customers a year and continue to grow our base of commercial and residential, and of course, industrial customers on the São Paulo concession, which has proven very successful as you’ve seen from the numbers on the last few quarters and going forward, right? So, we create a lot of resiliency in this business to have a lot of less dependence on the, call, more seasonal business that…

Please, one moment. The speaker will be back soon. Excuse me, Mr. Luis, you may proceed. Luis Henrique Guimarães: So, Regis, I hope you are back here. So, talking about the gas and the projects and the ability for us to have more gas in a market that we believe Brazil has, as you know, Itaipu, a size of Itaipu in terms of reinjection. So, we would love this gas to come to the market to be able to develop the market, get Brazil more competitive on an industrial basis. And of course, it will benefit Compass, but will benefit the whole society in our other businesses that are related to GDP. So the Route 4, we are the kind of the leading player to motivate others to join. We have no intention to be the biggest checks on this. We have no intention to have control over these investments. We are really doing that because we believe that in Brazil things take a long time. And if there is no one that’s pushing that spending a little of the initial money, especially having the right people developing that, it never happens. So, it will be connected to the infrastructure that exists in the country, transport and all other infrastructure. So, our competitive advantage will come from our ability to source better, our ability to serve customers better, our ability to do the different -- how you call, the different verticals we have. So, the distribution vertical, the infrastructure vertical, the commercialization vertical and the power generation vertical in a way that’s better than our competitors on that. So, we believe that this portfolio that we have created and is creating is differential from the other markets. But, as you know, the gas market is huge if it goes right, right, in terms of the increase of demand. It’s not a problem of supply. There’s enough gas in Brazil, in Bolivia and in the world. What we need to do is to develop demand. And we believe that Compass has been the leading company in developing demand. So, we are the company that’s spending more time on the demand side, where most of the other players are spending more time on the supply side. And this is what we are trying to create, an important capacity with partners, channels and our own sales force and marketing force to develop applications, solutions and ability to create this market that in certain states doesn’t exist, certain segments doesn’t exist. And we will continue to convert customers from different energies, like from diesel, from biomass, from other sources of energy to gas where it makes sense. So, this is our great differential. We are focused on developing the gas market, and we will do that based on our strong experience that we have developed over the last few years.

[Operator Instructions] This concludes the question-and-answer section. At this time, I would like to turn the floor over to Mr. Luis for his closing remarks. Luis Henrique Guimarães: So, I just want to thank you all for being with us today. And thanks for all the support you have been giving the company as investors. So, very important movements we did over the last six months, as I said, starting the collapse, going through the private placement with Atmos and Compass, going to the IPO of Raízen, also on the debt market, a lot of action. So, we will continue to value your support and be very responsive to the way we allocate capital, looking for synergies, looking for efficiency within our portfolio and be able to deliver strong results over the course of the next months. We are, as I said, at the beginning, enthusiastic about the recovery of the Brazil with the vaccination progress. Of course, there is some challenges on the environment. But, we are very confident that our teams and our company is well positioned to continue to deliver and be able to achieve the guidance we have given to the market for this year and the years going forward. So, thanks for your time. And have a great week. Bye, bye.

Thank you. This does conclude today’s presentation. You may disconnect your lines at this time, and have a nice day.