Raízen (RAIZ4) investor relations material

Executive summary

• Progress made in portfolio simplification, operational efficiency, and capital structure strengthening, with divestments and hibernation of underperforming mills.

• Net revenue fell 6–6.1% year-over-year to BRL 54.2 billion, with a net loss of BRL 1.8–1.84 billion versus a profit in the prior year.

• Adjusted EBITDA dropped 23.4% year-over-year to BRL 1.89–2.47 billion, with segment performance varying across business lines.

• Efficiency gains achieved through a 20% reduction in G&A expenses year-over-year.

• Strengthened debt profile by replacing short-term lines with long-term debt and reducing supplier financing.

Financial highlights

• CAPEX reduced 23–23.4% year-over-year to BRL 1.7 billion, aligning with annual plan and prioritizing key projects.

• Net debt increased 55.8–56% year-over-year to BRL 49.2 billion, mainly due to liability management and working capital.

• Net debt/Adjusted EBITDA rose to 4.5x from 2.3x year-over-year.

• Operating cash flow and free cash flow were negative, reflecting seasonality, working capital, and non-cash effects.

• Cash and equivalents at quarter-end were BRL 15–15.7 billion, with additional credit facilities available.

Outlook and guidance

• Investments remain disciplined and in line with planned reductions, prioritizing safety, maintenance, and project completions.

• Sugarcane crushing projected at 72–75 million tons, with outlook leaning lower due to weather challenges.

• Expectation to receive BRL 2.6 billion from divestments by year-end; potential capital increase under discussion.

• Focus remains on core businesses, operational stability, and advancing long-term strategy.