Raízen (RAIZ4) investor relations material

Executive summary

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

• 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-related expenses.

• Net revenue declined 12% year-over-year to BRL 225.8 billion, reflecting challenging market conditions and lower volumes.

• Achieved BRL 1.0 billion in cost and expense reductions, advanced portfolio optimization with BRL 12 billion in divestments, and preserved operations and stakeholder relationships.

• Transformation Plan and restructuring efforts focused on restoring sustainable growth and capital structure resilience.

Financial highlights

• BRL 22.5 billion in non-cash provisions for asset non-recoverability and impairment, impacting net income.

• Adjusted EBITDA for 2025/26 was BRL 11.3 billion, down 2% year-over-year, with Fuel Distribution Brazil partially offsetting headwinds in ESB and Argentina.

• CapEx reduced by 28% year-over-year to BRL 8.6 billion, reflecting disciplined capital allocation.

• 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 support long-term value creation.

• Efficiency gains and portfolio optimization to continue, with further CapEx reduction of at least BRL 1 billion projected for the new crop year.

• Significant portion of sugar volume for 2026/27 already hedged, partially offsetting recent price declines.

• Ethanol faces a more challenging pricing environment due to higher supply and improved competitiveness versus sugar.