Raízen (RAIZ4) investor relations material

Executive summary

• Initiated an out-of-court restructuring in March 2026 for BRL 65.1 billion in debt, with over 80% creditor support, aiming for court approval by September 2026 and sustainable growth.

• Reported a net loss of BRL 27.1 billion for 2025/26, mainly due to BRL 22.5 billion in non-cash impairment provisions and restructuring expenses.

• Net revenue declined 11.5% year-over-year to BRL 225.8 billion, reflecting challenging macroeconomic conditions, commodity price swings, and lower volumes.

• Achieved BRL 1.0 billion in cost and expense reductions, reduced CAPEX by BRL 3.3 billion, and advanced portfolio optimization with BRL 12.0 billion positive impact (40% realized, 60% pending Argentina asset sale).

• Operations and stakeholder relationships preserved during restructuring, with liquidity needs addressed and a foundation for a more sustainable capital structure established.

Financial highlights

• Non-cash provisions for asset non-recoverability totaled BRL 22.5 billion, significantly impacting net income.

• Adjusted EBITDA for 2025/26 was BRL 11.3 billion, down 2.3% year-over-year; Q4 25/26 Adjusted EBITDA was BRL 2.88 billion, up 46% from Q4 24/25.

• CAPEX for the year was BRL 8.6 billion, down 28% from the previous crop year.

• Cash and cash equivalents at year-end were BRL 13.6 billion, about 50% above minimum operational needs.

• Free cash flow to equity was negative, impacted by working capital dynamics and higher net funding levels.

Outlook and guidance

• Out-of-court restructuring plan expected to reduce leverage, enhance liquidity, and position for long-term value creation, subject to court ratification and completion by March 2027.

• Portfolio optimization and asset divestments ongoing, with 60% of value pending Argentina asset sale closure.

• Efficiency gains expected to continue from organizational simplification and operational initiatives.

• Additional CAPEX reduction of at least BRL 1 billion projected for the new crop year.

• Ongoing focus on operational efficiency, portfolio optimization, and capital structure transformation to enhance resilience.