Raízen (RAIZ4) investor relations material

Executive summary

• Initiated the 2026/27 crop year with a streamlined portfolio, divesting Argentina operations and the Caarapó mill to focus on core businesses and operational transformation.

• Net revenue reached R$51.5 billion, up 4% year-over-year, driven by growth in Brazil Fuel Distribution, offsetting challenges in ESB.

• Significant losses persisted, with a consolidated net loss of R$1.64 billion, and material uncertainty regarding going concern due to capital deficiency and high leverage.

• Out-of-court restructuring plan approved and ratified, aiming to restructure debt, improve liquidity, and strengthen the capital structure.

• Operational and financial transformation continued amid volatile commodity prices, geopolitical tensions, and adverse weather impacting yields.

Financial highlights

• Net revenue rose to R$51.5 billion, with gross profit more than doubling to R$3.7 billion year-over-year.

• Adjusted EBITDA performance varied: one report shows a 63% decline to R$814 million, while another notes more than doubling to R$3.85 billion, both driven by Fuel Distribution gains and ESB headwinds.

• Net loss for the period was R$1.64 billion, mainly due to higher financial expenses, discontinued operations, and non-cash effects.

• Operating cash flow improved to R$3.6 billion, a significant turnaround from negative R$10.9 billion in the prior year.

• CapEx declined by up to 33% year-over-year, reflecting disciplined capital allocation.

Outlook and guidance

• Focus remains on operational excellence, efficiency gains, disciplined capital allocation, and executing the restructuring plan.

• Margins in Fuel Distribution expected to remain above last year, though not at current quarter's elevated levels due to non-recurring geopolitical effects.

• The company’s ability to continue as a going concern depends on successful execution of the reorganization plan, asset sales, and capital injections.

• Completion of the restructuring plan is expected by March 31, 2027, but remains subject to several conditions precedent.

• Management continues to monitor legal and regulatory developments that could impact future results.