Good morning, ladies and gentlemen, and thank you for waiting. Welcome to Raízen SA's conference call to discuss the results of the first quarter of 2021 crop year. Today with us we have Ricardo Mussa, CEO, Guilherme Cerqueira, CFO and IRO, and Phillipe Casale, Head of IR. We would like to inform you that this event is being recorded and during Raízen SA's presentation, all participants will be in listen-only mode. Afterwards, we will begin the question- and- answer session, when further instructions will be given. Should any participant need assistance during this call, please press star zero to reach the operator. Both audio and slideshow from this presentation are being broadcast simultaneously via webcast and may be accessed through the website ri.raizen.com.br. Before proceeding, let me mention that forward-looking statements that may be made during this conference call regarding the company's business prospects, operating and financial projects and goals are based on beliefs and assumptions of Raízen SA's management, as well as information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions as they relate to future events and therefore depend on circumstances that may or may not occur. General economic conditions, industry conditions, and other operating factors may affect the company's future results and may lead to results that differ materially from those expressed in such forward-looking statements. Now, I would like to turn the conference over to Mr. Phillipe Casale. Please, Mr. Phillipe Casale, you may proceed. Hi, everyone, and thank you for attending our earnings conference call for the first quarter of 2021/2022 crop year. Our journey towards listing Raízen was a long and a very successful one. It is a pleasure to share our results with our new shareholders and with the market. We have Ricardo Mussa, our CEO, and Guilherme Cerqueira, our CFO and IRO, in the call today. I will make a brief presentation of the quarterly results, so we can leave more time for the Q&A session. Before going into the figures on slide three, I would just like to recap the new corporate structure of our company after the reorganization announced in June this year. Basically, Raízen SA is now consolidating the portfolio of business. As we've shown on the last report, we will discuss the results from the three segments that comprise our integrated energy platform, as you can see on the bottom part of the slide. Now, moving on to the results on slide four. We delivered strong growth in the pro forma Adjusted EBITDA, despite a challenge from the pandemic and from the most severe drought seen in the last 90 years in Brazil. The results of all segments expanded, supported by higher volumes and better prices of renewables and sugar, as well as the recovery of the demand for fuels. Even if compared to the first Q 2020, the EBITDA showed an important expansion. As announced this week, we concluded the acquisition of Biosev, that is now part of our leading integrated renewable energy platform. Just as a reference, if we include the results of Biosev of this quarter, the Adjusted EBITDA of Raízen would have been BRL 2.3 billion, and the last 12 months EBITDA, also including Biosev's public figures, would have been close to BRL 11 billion. Let's now move on to the next slide, and before going through renewables results, let's look at the main operational highlights of the sugarcane crop from this first quarter. The drier climate has been affecting the main crops throughout the country, and the delays in the start of the sugarcane harvesting reduced the crushing [audio distortion] per hectare was 3% below year-over-year. I would like to highlight the numbers on the right-hand side of this slide. As we have been presenting, the journey to capture agricultural efficiencies and the resumption of productivity at Raízen keeps moving forward. A good way to see the results is the tons of sugarcane per hectare, the TCH. The reduction of Raízen numbers were lower when compared to the Center-South region of Brazil and São Paulo state. When we look at the first cut sugarcane, the results are even better. This shows that we are on track to improve our yields in a sustainable way. The production mix was balanced between sugar and ethanol, aligned to our commercialization strategy for this crop season. Moving to the costs, excluding Consecana effects, the cash cost in sugar equivalent was in line year-on-year, which is also a reflection of our continued efforts to capture efficiencies offsetting pressure from inflation and lower dilution of fixed costs. Let's move on to the next slide that shows the results from the renewables segment. We delivered a strong growth in renewables, more than doubling the Adjusted EBITDA year-on-year. Starting on bioelectricity, total volume sold grew despite the reduction in production and sales of own volumes due to the lower crushing of sugarcane and availability of bagasse. As you know, we are facing a very dry period since last year, which creates a typical volatility in spot prices and influences energy trading results. However, it's worth noting that higher prices also maximize results as our cogeneration gets sold. It is important to remember that Raízen is the largest integrated biomass bioenergy producer in Brazil, producing and selling power. On ethanol, prices at the start of the crop season led to an increase in sales, allowing us to capture a significant improvement in returns. Let me remind you that we have a unique biofuel portfolio with diverse applications, which makes us the leading player in the global market. We have been increasing our market reach, assessing different geographies, and therefore contributing to a cleaner global energy matrix. Let me highlight some important advances we made in developing our portfolio, increasing the offering of renewable products. Last month, we announced the construction of our second plant of second-generation ethanol production at the Bonfim Bio Park, which has 91% of its capacity already sold through hard currency, long-term contract with fixed prices, providing excellent premiums and returns. With the new contracts announced just this week, we reached around 1 billion L of E2G already sold, to be delivered over the next nine years. Following the presentation, let's move on to the next slide to talk about the sugar business. The dynamics with the sugar commercialization in this first quarter of the crop season was quite similar to the ethanol, posting higher sales of owned sugar motivated by the commodity up cycle. We continue to amplify our presence throughout the sugar value chain by capturing additional origination volumes to deliver at the final destination, which maximizes profitability from sales. The higher prices recorded in the quarter reflected our efficient pricing strategy, hedging future cash flows while potentializing margins. With this approach, our EBITDA more than doubled during the period. Speaking of hedging positions, we continue to advance in hedges in BRL terms, considering the attractiveness of levels of prices in U.S. dollars combined with the FX. In the short term, commodity prices reflect the expectation of a smaller crop in Brazil, in addition to increased profitability of ethanol in local markets, driving production mix. We have already hedged nearly all the sugar to be exported for the current crop. For the next one, we hedged around 80% of the sugar at prices that are 12% above this year. We are also making progress in hedging the 2023/ 2024 crop, still with lower volumes but with prices pointing to a premium close to 30% over the current crop. This rising price scenario, combined with our cost efficiency journey, supports a very favorable horizon with stronger returns. Now, moving on to the next slide, let's discuss the results from the marketing and services segment, which includes our field distribution and proximity platform, both in Brazil and Argentina. For a better understanding the value of our integrated platform of marketing and services, we are presenting results on a consolidated view. The quarter was marked by the resumption in demand for fuels, despite the fact that we are still facing difficult times due to the pandemic. The strong growth in total volume sold is a great indication of a more structural recovery in consumption closer to historical levels pre-COVID. Talking about volumes sold, the highlight is the diesel sales, showing good signs of economic rebound, especially in agribusiness. Otto cycle volumes also performed well in the quarter, supported by the decrease in the number of cases of COVID-19, leading to an improvement on the demand. Total Adjusted EBITDA for this segment came to BRL 968 million, strong growth and reversing the losses year-on-year. In the quarter-to-quarter comparison, the 11% drop is explained by lower gains from Raízen's supply strategy. We continue to expand our client base and to capture market opportunities in Brazil and in Argentina, increasing our market share with good returns. Investments in expanding the network and in maintenance of logistics assets during the quarter were in line with the plan. Let me update you on the growth of our marketing and services platform. In proximity, we are accelerating the opening of new stores in Brazil. Over the last 12 months, we grew 132 stores, including more than 20 OXXO-branded stores. The first set of results are showing an excellent performance, and we will keep this strong pace of openings. Talking about the Shell Box, our digital payment and loyalty platform, we continue to see the growing number of transactions. We reached almost 4 million transactions per month now, having over 70% of our urban service stations already accepting the app. In lubricants, we announced the acquisition of the Shell operations in Brazil, which will complement our portfolio of solutions to our clients with top-quality fuels and lubricants. Finally, this week we announced an international expansion with the acquisition of a leading fuels network in Paraguay with 350 service stations. This is a very important move to complement and to extract the synergies of our marketing and services platform in the Latin Southern Cone. Now, let's move to the next slide, where I will be sharing Raízen's financials results. Raízen's net debt was BRL 16.2 billion this quarter, resulting from the increased cash consumption, which is usual at this time of the crop year due to the working capital dynamics of sugar and renewables. Even then, we continue reducing leverage, reaching 2x net debt- to- EBITDA. It is worth to remember that Raízen is one of the few Brazilian companies classified as investment- grade. On the cash flow, the main effect is the seasonality of the working capital, as I just mentioned, following the historical crop dynamic. To end the presentation, I will bring the highlights of our ESG journey. In July, we launched our annual sustainability report and the ESG portal, providing a complete overview of our initiatives and our vision of sustainability regarding the material topics of our business and of our stakeholders. Another important initiative, which is key to provide alignment and focus to everyone at Raízen, was inclusion of an ESG KPI in the scorecard that includes the volumes of greenhouse gas emissions avoided by our portfolio of renewables. We recently elected two new independent board members with large market experience to contribute to our business. We also received the Women on Board certification that recognize those organizations with at least two women on its board of directors. More details of those and other ESG initiatives can be found on our new IR website, where you can find the ESG portal. With that, I conclude the presentation, and we can now move on to the Q&A session. Thank you very much. Ladies and gentlemen, we will now start the Q&A session for investors and analysts only. If you have a question, please press star one on your touch-tone phone. If at any point your question is answered, you can remove yourself from the queue by pressing the pound key. We do ask you to pick up your handset when you ask a question in order to ensure optimal sound quality. Please hold while we poll for questions. Our first question comes from Mr. Thiago Duarte from BTG Pactual. You may proceed. Thank you so much. Good morning, everybody. I have two, actually. The first one, very impressive showing, guys, on the yield side, on the agricultural side, especially looking at what other players are showing. Question here to you is, when do you see that outperforming sustaining throughout the rest of the year crop, considering the frost that impacted the region, especially in July? How do you see Biosev once it's consolidated, how you see Biosev performing relative to Raízen on a year-on-year basis. So that would be the first question. The second question is regarding the ethanol commercialization strategy. We are seeing other players holding inventories, probably looking to sell towards the back half of the crop year. Why would you apparently sold a little bit more of its own ethanol in that first quarter, and at least relative to what historically [audio distortion]? Just if you could talk a little bit how you see the market during the crop year and how that strategy fits into that. Okay, thank you. Regarding the marketing and services in Brazil, [audio distortion] gained a relevant market share sequentially, both in this and Otto cycle, but margins dropped sequentially as well. [audio distortion] that margin market share trade-off evolving into the rest of the year? Thank you. Thank you, Thiago. Thank you for the questions. Hi, this is Ricardo Mussa here. The first question related to productivity. Yes, has been outstanding performance on our side. I think we are recovering from the years that we had before, and it shows if you look into the first cut, then you can really see what's coming ahead on the next years, because once we did the right planting, then we are going to enjoy this recovery for the next cycle. We are very excited about that. Looking to this current year, of course, we are going to be affected. If you go towards the end of the crop season, the frost is going to affect us also compared to the market, but on a lower scale. I'm saying that because of the location of our portfolio of the bioenergy parks. We see our numbers going to be a little bit lower. What we're seeing right now on the yield side, we are going to be lower than the 4%. We're going to be even impacted higher due to the frost, but much better than the period that we're seeing on the market. We're going to sustain this difference to the end of the season. For the next years, the first cut you see, I think is going to be, we are also planting well this year, we are going to see this reduction on the difference between ourselves and the market being compressed. We are positive on that, too. On the Biosev question, I think Biosev, they already had a better performance than Raízen on a comparable basis. They have been hit harder than Raízen, but not as hard as the market. We had advantage on Raízen, Thiago, to have more spare capacity to crush. When you have the frost, we are less impacted because we can do a better job on crushing faster and not having the full, I would say, damage from the frost. That's a great advantage on our side, having more spare capacity compared to the market. On ethanol strategy here, what we're seeing is, of course, very high prices during off-season. We are seeing demand picking up. Export segment is very strong, so what you're seeing in our inventory basis here, Thiago, remember that we are very strong on exports, so we have very good contracts on export side. We see issues on the off-season related to ethanol. Price will have to work, otherwise, we have to destroy demand, otherwise we won't have enough ethanol for the off-season. We are looking. T he potential imports are there, it also depends on the corn prices in U.S. to make sure we have availability of U.S. corn ethanol to import if necessary, especially for the north of Brazil. Our strategy is pretty much the same of the previous years. We are looking at very closely. The only difference is that the export segment this year remains very strong. Talking about market share and profitability here, really is the consistency on our side. You can see that we are gaining market share. We are consistently gaining market share over the years. That hasn't changed. Normally, we have the first and second quarter with lower margins than the third and the fourth quarter on Raízen, and that's related to the dynamics of ethanol market. Ethanol has more tax evasion than other segments. What we expect this year, Thiago, if you look into the end of the crop season, we are going to have less ethanol availability, less tax evasion. We should see, of course, margins picking up as we see normally on Raízen results throughout the end. We're not surprised what we're seeing right now. Very strong, I would say, margins, strong market demand is picking up. We are positive for the outcome for the next three quarters. Thank you so much. Just a quick follow-up. On the ethanol exports, can you guys disclose how much of that ethanol sale is going towards export? Might help answering my question. Normally in Raízen, it's almost 75% is going to exports. The only reason it's not 100%, we have some tax benefits in some of the bioenergy parks. Otherwise, we'll be much higher than that. This is very strong, Thiago. You see for hand sanitizer, for fuels, for beverages, for bioplastics, demand for ethanol on the export segment is really strong and with very high prices. If we had even more production here, we're exporting even more. The only reason it's not 100% is because of some tax incentives that we have locally. Great. Thank you so much, Mussa. We would like to ask you to please make only two questions at a time. Our next question comes from Mr. Regis Cardoso from Credit Suisse. You may proceed. Hi, Mussa. Hi, everyone. Thanks for taking my questions. The topics I felt most interested are the same as the previous question. Mussa, if you can maybe just develop a little bit further the theme in competition in the first quarter, because it was quite a big difference, I think, between the players. In a way you well performed, clearly, your peers, particularly it seems in the retail segment, both in the market share as well as in the margins, and I think the margins were really the key part of it. Were there, in your view, any specific topics that would have explained the market's overall lower margins in the second quarter? Let's say, inventory losses, import losses, or was it really a more, let's say, tougher competitive dynamics? How did you manage to be less affected? I think that would be the first question. The second question on ethanol. On the topic of the exports, you clearly had good yields and good realization prices, which I would assume are related to the export. Those exports, what kind of markets have you seen been, let's say, more demanding for ethanol? Do you think that the ESG discussion and decarbonization are gaining traction and an increase in demand for markets outside of Brazilian hydro- ethanol, and that eventually the price formation could sort of de-peg a little bit from gasoline? Thank you. No, great. Thank you, Regis. Great question. The first, again, on the marketing services side, it has been consistency all along. We haven't changed the formula, so very close to our retail team, helping them. The Shell Box is really performing out great. We manage now to give the retailers another tool for them to price, to do some marketing, and different stuff. We are very glad with the performance of the digital platform, the Shell Box. If you see what we are doing even on imports, on the trading side is also helping. We saw a lot of players moving out of the import. You saw trading companies like Mercuria moving away from the market in Brazil. It has become, I would say, tougher for import guys because margins are much lower to imports. When you have a system like we have, that is very efficient to do that, we can still play along on that. It was also a key element. On ethanol, normally, Regis, you will start the season having the impact of inventories of ethanol. That's normal. Every season, we start that. The only difference this one, we have impact in April, then a recovery in May and June that was not normal compared to the previous years. It remained the same. I think if you see the market share, what we are doing, it's pretty much we are getting the benefits of having a very consistent system that we have done that every year, Regis. If you look in the past 10 years, has been exactly the same. It hasn't changed, right? I think on the ethanol side, talking about markets, I think what's changing right now, I think the ESG is playing a role, but not as much, I think, as people think. What we saw was demand coming from non-fuel related, so we're talking about bioplastics, chemicals, and beverages. A lot of specialties. A lot of players wanting to have more long-term contracts. One thing that was very clear is that the sustainability aspect, like even for sugar, when you talk about Bonsucro certificate or for ethanol, the certified that we have, the traceability has become a big part, and that has become, even, I would say, the premiums that we are getting by having that in our portfolio is paying off more than before. That's a big difference, Regis, from the previous years. I see that the market is getting more and more towards looking to the sustainability aspects related to that. The Bonsucro was a very good example. We never had so much demand for certificates and higher premiums that we have right now. I think the major difference, Regis, is that the non-fuel market was impressive. I f you ask my opinion, I think there's a lot of companies looking toward the reduction of the crude production globally, and the crude is supplying other products, like chemicals. They have to rely on renewable products, not only for fuels, but for other types of chemicals. I think overall, you can find more clients that are not related to gasoline prices looking for our products. That's a reality. We cannot share how much it is because it's confidential. It's strategic for us. Clearly, it's a trend. Very clear, Mussa. Thanks for this. If I may just follow up really quickly on that second part of your answer. Quite interesting to see other markets develop and demand more of your ethanol. My question is, for those markets, do you compete, let's say, directly with sort of the corn ethanol prices we see in the U.S., or is there anything related to sort of the certification or higher grade of how pure the ethanol is that you could sort of de-peg or maybe price at a premium? If I may, just the last one, a quick one on Argentina. Performance was quite strong. If you could maybe just comment what has been the dynamics there. Thank you. I think on markets, Regis, the markets that we are talking here, we are competing. The U.S. corn ethanol is not a major competition for us. They have a very strong demand locally, we are seeing less and less. Brazil has been really the outlet for the U.S. market. There are some places, if you take Europe, the U.S. corn ethanol has not the same footprint that the Brazilian ethanol, the sugarcane ethanol. We have a clear advantage on the CO₂ emissions there. I think places like Japan, if you look into Asia, U.S. progressed over the past two years. Right now, there is a debate if that's really the case, because the corn ethanol has a lot of shale gas embedded on that. There is even a discussion on how is the measure of CO₂ emission of U.S. corn ethanol compared to the sugarcane ethanol from Brazil. I think the Europeans are the most, I would say, advanced on this debate, and they value more our ethanol. Really, we are not seeing that much competition. We are talking about different grades, as you said, more complex logistics. We are having a much more complex logistics right now to operate because we are talking about a product like neutral Korea grade and all this stuff that requires a very different way of managing supply chain. That's again, an advantage on our side. Sometimes we— I give examples, we had the same vessel that we are bringing diesel out of the Gulf, we are taking ethanol to California, or we are using the same charter to put ethanol back into Colombia. That's an advantage that we are taking by being an integrated player. The second question about Argentina. Argentina is a market that we have been growing organically. If you look what we've been doing on market share there, we have a record market share for the past 100 years. We have been in Argentina for 100 years with the Shell brand, and it was the record year for us on market share, converting and even opening new sites. It's our organic growth in Argentina. We are seeing a very good, I would say, market on margins because margins in Argentina have been stable. It's a market that the margins are much higher than Brazil. It's a more strong currency, so you see margins there. The market in Argentina operates with U.S. dollars on their head. It's a hard currency market. Again, it's similar to Brazil. I think when we got the Argentinian from Shell, we applied exactly the same formula of Brazil. We are getting our Shell Box moving to Argentina. We are replicating the same successful model that we had here in Argentina, and that's paying off both on volumes and on margins. We haven't seen yet, Regis, the full potential because Argentina, the recovery was much lower than in Brazil, so they are lagging behind on the recovery of consumption. This is clearly coming right now, and we are going to see even better results moving ahead. Of course, just to finalize here, Regis, Paraguay connect with that completely because Paraguay is a market that has no local production, has to be supplied either from Argentina or Brazil. The same vessel that is coming from U.S., stopping in Brazil and going to Argentina can go to Paraguay. We have the refinery in Argentina supplying to Paraguay. There is a perfect fit and a market with very good margins and where you have the brand. I operated in Paraguay before in my previous experience there. They value the brand a lot. We are getting a distribution company there, Barcos & Rodados, that will benefit a lot from the conversion to Shell brand. There's going to be a huge upside when you put the Shell brand in Paraguay. There's a huge recall of brand there. We have very strong brand preference in Paraguay. We will take advantage of that fully, and it's starting with the largest market share in the country. Very clear. Thanks, Mussa, for the very detailed answers. Have a good day. Our next question comes from Mr. Luiz Carvalho from UBS. You may proceed. Hi, Mussa. Hi, Phillipe. Thanks for taking the questions and congrats on the IPO. I have basically three points that I would like to address here on Combustíveis. If you can first comment on the level of rebate. When we look to your recent filings, we have been seeing somehow an increase on the line of, I would say, provisions or rebate that you give for the gas stations. On the second quarter, when you look to the figures of the peers, it's a challenging one. It seemed to be a bit more competition in the market, and we saw some competitors giving, let's say, close to BRL 0.10 rebate to some contracts. Just would like to understand a bit better the dynamics of the rebate that you're applying and you're seeing in the market. The second question on Combustíveis is about refining. You made an offer to REPAR that you guys decided to remove it temporarily from the process. The company now signed an agreement with CADE to extend a bit more the timeline. Just trying to understand how the refining opportunities are to the company. If I may, a last question here, I think it was partially addressed. I just would like to come from another angle. On the sugar realized prices, something that we have been discussing, and we have been kind of calling the Raízen as the Aramco of the sugar and ethanol business as the single largest producer. You have been pitching to the market that you're going to be able to get closer to the final consumer in order to try to integrate and verticalize the margin. Just trying to understand how the results of this quarter are pointing the direction and how recurrent it would be looking forward. Thank you. Thank you, Luiz. I'll ask Gui to go to the first one. I'll answer the refinery one and the sugar one. Gui, can you- Hello. ... answer the rebate one? How are you? Well, as you know, rebates, we prioritize the rebates versus the upfront grants because this aligns more the interest of the dealers with our own interest. Of course, you have some variance quarter-on-quarter, but the rebates are far lower than BRL 0.10 that you mentioned. You always see some fluctuation quarter-on-quarter on this mix between upfront grants and rebates. We really prioritize rebates, as I mentioned, it's better for the business, for our side of the business and also for the dealer side. It's much lower than the BRL 0.10 that you mentioned, Luiz. Thank you, Gui. Going to your question on refinery, just to make very clear, the refinery for Raízen is not a strategic asset, so we don't need to have a refinery here in Brazil to expand our market and services strategy. Again, Luiz, when we look into the refinery system in Brazil, Brazil has import parity level for fuels and export parity levels for crude. Of course, if you have a refinery in Brazil, you always have a huge dependency on the short of the local players. We see ourselves as a very large consumer of the products from the refinery. Of course, having the ability to import with the infrastructure that we have, we will be able to negotiate with whoever owns the refinery in Brazil, I would say good prices and good contracts. The other alternative for any owner of a refinery in Brazil is to export, and then they have to go to export parity prices. That's a very high level. Let's go now into REPAR. Of course, when we participate on the bid process, we see that as a good opportunity. Of course, we cannot open here what's our strategy, how to tackle that opportunity. We see, yes, as a good opportunity to participate on the bid process. Maybe not as a contender of owning the asset, but in a different format. That's as much as I can tell you. I think the most important message here is that it's good that Petrobras is moving forward with the divestment of the refinery. This is very good for the market. In particular for Raízen, we see a lot of good upsides of this trend of changing. We are already seeing that with the RLAM refinery, with Mubadala and all this stuff. This is going to be very good for everyone that is committed and have the scale in this market as we have. The third question here on the sugar expansion, we are still not where we want to be, Luiz. 30% of our volume is already going to final consumers. That used to be zero. That was our last year. On the first quarter, we are getting almost 40% already going to the final consumer. The strategy here is to reach 90% in the next two years. Of course, at the beginning when you do that, we are doing that making more value, but not as much as we're going to do on the two, three years' time. For you to win that market at the beginning, you have to give up some margin. You are going to see that our prices are getting better and better. We are already making money, we cannot share now on going to the final destination. We are still in the beginning, Luiz. You're going to see that every quarter improving, every year improving, initially with much more volume, and then you're going to see much higher margins coming from that. You saw that also we are doing trading on sugar buying and selling using our scale and our contracts and our storage facility to do that. Last here, the Biosev will present also a great potential to improve because Biosev was, if you look into their portfolio of sugar today, Luiz, looks like ours three, four years ago. They don't have enough storage capacity. We have to invest in storage capacity to get better prices. The reason, one advantage, they were less hedging than we did, so you look into the next two years, we are going to enjoy these much higher margins that we're seeing right now, prices on the Biosev portfolio, because they were not as hedged as we were. We have taken that. That was luck, because we believe in our hedging strategy. That is adding a lot to the portfolio on both ends. We are right on track on the strategy, reaching 40% already into final destinations, and this should be in two years' time, 90% into the end consumer, Luiz. Okay. Thank you. Luiz, this is Phillipe. Let me just get and complement here, the first question about the rebate. One important thing is that the rebate model for us is also a capital allocation part of this strategy, right? In the end of the day, in terms of returns, once we improve the rebate model, we are also improving the returns, and we think that this brings a better alignment between the distributor and the reseller. That's why we try to implement more this type of contract. As long as we implement more and the volume grows, of course, the rebate line will increase along. This is just to complement the rebate part. Okay. What puzzled me was that, then comparing the finance or the amount in reais versus the volume growth, in reais terms, it grew much more than the volume. Our first understanding, and we can follow up offline, our first understanding was that on a real per liter or in a cents per liter basis, the rebate would be increasing. We saw that happen in other players. That's why, that was my question coming from. Okay. We can follow up later. Thank you. Once again, if you have a question, please press star one on your touch-tone phone. Make sure of asking only two questions at a time. Please hold while we poll for questions. Andre Hachem. We have one question here that came from the webcast. I will read that one, and then I think Andre Hachem is in the line there to make a question as well. The question is from Gabriela Cárcamo, and she says: Hi, everyone. Hope all of you are well. I wanted to ask if you are still seeing the E2G and E1G premium. Thank you. So Gabriela. Thank you, Gabriela. I think, yes, we are still seeing, in fact, from the contracts that we already signed, and we're looking to what we are getting right now, are higher premiums than we initially had. Of course, we do not regret on that because we signed very long-term contracts. Even the contracts that we are currently discussing are with considerably higher premiums than the initial ones. We haven't seen any change. We have seen Europe, especially Europe, with the new discussion of RED II and RED III moving forward. We are seeing increase on demand and increase in premiums. Right now, we are working on a scarcity base. We have less product than the market wants. That's why the biggest debate inside Raízen right now is how to speed up the construction of the plants to capture all that and prices that we're getting. The premiums are getting better, not worse. It is improving. Our next question comes from Mr. Andre Hachem from Itaú. You may proceed. Mussa and Guilherme, thank you for taking my questions. I have two questions. The first one is relating to the provisional measure that came through earlier this week. Being on both sides of the industry, could you comment a bit on your expectations on the increase of non-compliance in terms of distribution companies selling to unbranded, to branded stations, and the risk of increases in informality when we think about the direct sales from ethanol? That would be my first question. My second question is, when we think about next year's harvest, as we look to it forward, we're seeing a lot of cost pressure, especially when we think about agricultural inputs. Could you comment a bit on your expectations on how you're seeing this developing? At what level of cost have you already been able to hedge this year? Thank you. No, great questions here, Andre. On the first one, on the provisional measure, the direct sales of ethanol. We are in a very good position to comment on that because we are the largest producer of ethanol. I can tell you a story that when we formed the company, even when Cosan acquired the ExxonMobil assets out there in 2008, there was the idea of going, and even the logistics, straight from the bioenergy parks into the service stations. We quickly realized that it didn't make sense financially. Of course, if it was something that would deliver a cost reduction, we would do it. Raízen, there is not a single truck that goes from our facilities into the service station. That's not because we don't like to make money. If it was a good logistics and cost reduction, we would do it. We don't see that creating any huge advantage for the consumer. This is not something that is going to reduce cost of distribution. In fact, it's only going to increase if people try to do that. We don't see that as a threat, because if it's something that would make it happen, other companies would do it. Second point to this one, Andre, is that all, if you take every single sugar mill or company in Brazil today, if they want, they can have their own distribution company. You only need BRL 4 million of capital and 750 cu m of storage capacity. All these, I think 378 mills operating today in Brazil, if they want to become a fuel distributor, they could. There is not any cost on doing that. If it was good business for those guys to do it, they would already have done that. I think that is going to be very limited, how this is going to perform. Mostly, I think there is some situation on the Northeast of Brazil that will take something different from what's happening today. That's not relevant in the end of the day to what we have. We don't see even the purpose for that. I think for the government, in my point of view, creating the character of a distribution company makes sense for the regulator to make sure that they have the same standards to everyone. Bottom- line, it is not a major change and anything relevant to us. Second point also on the brand side. That's a little bit crazy. Just to make sure people understand what we have. Today, we have two models. Before this provisional measure, we have the models of a company like ours that owns the brand. You go to the retailer and tell the guy, okay, if you want to use my brand, you have exclusivity to sell my fuel because I have to guarantee the quality. You have the other type of retailers that they don't want to have any brand. They have their own brand. They can buy from everyone. Now, the government put in place a third alternative. The third alternative is someone that if we want, we could give the brand to the retailer and allow him to go with another product. Of course, we are not going to do that. It doesn't make sense to do that. In fact, the contract will prevail, the relationship between the retailer and the distribution will prevail, it will not change anything at all. It's something that has zero impact. It creates a lot of discussions, dilemmas. In practical terms, I don't see anyone that is willing to give up their brand and allow the guy to sell something that is not —I don't even know if this is legal. Because you are misleading the consumer at the end of the day. To be honest, practical terms, it won't change anything. Those two things is a lot of noise, but in practical terms, we don't see— of course, it takes us time to debate and go into the ANP and talk about it— but we don't see as very relevant to the business here. The cost level here, can you talk about it, Gui? Okay. Hi, Andre. Of course, you see the pressures coming from inflation, the whole country is coming. We have two elements that will help to compensate. First is efficiencies. As you know, we have lots of efficiencies still to capture in our plantation. The second one is the absorption of Biosev. As you know, as you bring Biosev, we have much more scale. We'll be able to negotiate much better contracts because you increase our scaling around 50%. These two elements allow us to think that we'll not be impacted as much by the inflation as other players. You saw this in the results of this first quarter. Even though we already have a big inflation in relation to the previous year, we delivered the unit cost that's pretty much equal to the previous year, if you discount the Consecana, but the Consecana is natural hedge. Y ou're right, t here we will have pressures on inflation, but we are equipped to compensate this with these two elements I mentioned to you. It's okay? Perfect. Very clear. Thank you. Once again, if you have a question, please press star one on your touch-tone phone. Thank you. That brings us to the end of the question- and- answer session. I will now return the floor to Ricardo Mussa for his closing remarks. Thank you. Thank you, everyone. Of course, it's our first call after the IPO. I just want to take the opportunity to thank you everyone involved on this process, the shareholders. It was a very important step for the company to really unlock and speed up our growth process. You saw that we engage with so many investors now. We have a great client, investor base on Raízen right now. This is giving even better governance, more transparency, and more than anything else, we are going to now live up to the expectations and deliver the growth that everybody is talking about it. Thank you for the team also involved in that. All the Raízen team, they were great. Now, it's time for really deliver what we talked to everyone during the IPO. We are going to do that, believe me. Thank you very much, guys. Thank you. This does conclude Raízen SA's presentation. You may disconnect your line at this time.