Morning, ladies and gentlemen, and thank you for waiting. Welcome to the Raízen's webinar to discuss the results of second quarter of 2021/2022. Today with us we have Phillipe Casale, IR Head, Guilherme Cerqueira, CFO and IRO, and Ricardo Mussa, CEO. We would like to inform you that this event is being recorded and has simultaneous translation to Portuguese. During this event, all participants will be able to listen to presentation. Afterwards, we will begin the question and answer session when further instructions will be given. Before proceeding, let me mention the forward-looking statements that may be made during this presentation regarding the company's business prospects, operating and financial projections and goals are based on beliefs and assumptions of Raízen'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. Good morning, everyone, and thank you for attending our earnings conference call of the second quarter of the crop year 2021/2022 for Raízen. With me here today are our CEO, Ricardo Mussa, and our CFO and IR Officer, Guilherme Cerqueira. Before going over the results, allow me to remind you that these numbers will be presented in a pro forma approach which considers Biosev's results in full for the quarter. To make a fair analysis of the results, Biosev figures have also been included in the comparative periods. We can now begin with slide three with the highlights of the quarter. Raízen delivered strong growth in consolidated results once again. We achieved a record level Adjusted EBITDA of BRL 3.3 billion in the period, where renewables was the highlight. In sugar, the lower share in the EBITDA reflects the reduction in volume sold, partially offset by better prices. In marketing and services, we maintained our level of contribution with robust growth in volumes sold. Considering last 12 months EBITDA of BRL 11.5 billion, over 70% of the total comes from renewables or non-fossil products, reinforcing our commitment on providing cleaner and sustainable energy to the society in a global scale. Now let's move on to the next slide, where we will discuss the results of each segment, starting with the operations in our bioenergy parks on slide four. The drier climate that has been impacting Center-South region of Brazil posted a direct impact on sugarcane availability in the region. Sugarcane crushing closed the first half of the crop year with a total of 69 million tons, a 6% drop compared with the same period last year. Agricultural yields measured in TSR per hectare closed the first semester of the crop year with a decrease of 14%. As discussed last quarter, there is an important point here. On the right-hand side of the slide, we show that our journey to capture agricultural efficiencies and productivity gains continues steadily on track. The tonnage of sugarcane per hectare, the TCH, at Raízen was less impacted with the drier climate than the industry average, both compared to the state of São Paulo and the Center-South region. This is even more relevant when looking at first cut sugarcane with a slight improvement versus last year, while the state of São Paulo posted a drop of 18%, demonstrating that we are on the right path in this journey. Regarding cash costs, excluding the effects of Consecana, certain important elements have been putting pressure on 2021/2022 crop year. First, the crop setback reduced significantly the sugarcane crushing, reducing our cost dilution base. In addition to that, inflation over agricultural inputs and raw materials, as well as the cost of diesel, have also impacted our results. Moving on to the next slide, we will be discussing the renewables segment. Once again, we deliver strong growth in our results driven by improving pricing for ethanol and bioenergy. Lower sales of own products reflects our sales strategy for the crop year, as well as the drop in production. In ethanol, the attractive prices both in the local and export markets have resulted in significant improvements to profitability. It is important to remember that we offer a unique portfolio of ethanol for various applications addressing different markets. We have been increasing our market reach, assessing different geographies, therefore contributing to a cleaner global energy matrix. In bioelectricity, the atypical volatility of PLD or the spot prices has contributed to our improved results. It is important to remember that Raízen is Brazil's largest producer of biomass-based power through the cogeneration process. Our operation is integrated from production to the sale of electricity, which helps us to capture opportunities and increase our market share. Following the presentation, let's move on to the next slide to talk about the sugar segment. The drop in production and in the volume sold of sugar was partially offset by improved prices during this quarter. Most of sugar production this year will be commercialized along the next two quarters in line with our sales strategy, leveraging on our infrastructure and market intelligence to maximize profitability. We have been consistent on pricing our sugar efficiently, taking advantage of the positive cycle of prices, balancing the protection of future cash flows and return. Moving to our hedge positions, we already hedged all of our own sugar for the current crop. For the next crop, the 2022/2023, we have nearly 80% of our sugar hedged at prices 12% above this year's. We have also made advances in hedging the crop year 2023/2024, still at a lower volume but with a 30% premium over the current crop, indicating a robust evolution of results for future crops. Let us now move on to the following slide to discuss the results from the marketing and services segment, which includes our integrated fuel distribution and proximity platform, both in Brazil and Argentina. A quick disclaimer here, these results are consolidated and do not include the recently acquired operations in Paraguay, which will be only incorporated on the third quarter of the current crop year, so the next quarter. This quarter posted a robust growth in the demand for fuel. The expansion in total volume sold, both in the year-over-year and quarterly comparisons, reflect a more structural recovery in the demand to levels closer to those before the pandemic, as shown on the comparison to the same period of 2019. In Otto cycle, the expansion of volume sold is supported by the better numbers related to the pandemic and the progress made in vaccination, as well as the improvement on economic activity. In diesel, the increased demand from agribusiness and the passenger and cargo transportation accelerated the growth on the demand. In aviation, the gradual recovery in volumes follows the recovery of the air travel network that should keep improving as international flights resume. Total Adjusted EBITDA was BRL 917 million, in line with last year. The slight reduction in comparison with the first quarter of the crop year is due to lower gains from our supply strategy, which resulted from a typical price movement in the period. We continue to increase our customer base and capture market opportunities both in Brazil and in Argentina, increasing level of returns and market penetration. CapEx for network expansion and maintenance remains in line with our plans. Just remind you that we are making investments to improve product quality at our refinery in Argentina, in line with the current regulation. The next slide, I would like to bring some updates of the progress in our marketing and services platform. In proximity, we opened 138 new stores in the last 12 months, 75 of those being owned stores. Considering the good results seen so far, we are keeping the pace of new openings, expecting to close the crop year with around 150 owned stores. In Shell Box, our digital payment and loyalty platform, we continue to enjoy a growing number of transactions, reaching nearly 4 million per month, now with over 3,600 service stations enabled and accepting payments with Shell Box. year-to-date, over BRL 3 billion have already been transacted through the platform, which only keeps growing. As already announced, we closed the acquisition of Paraguay's leading fuel station network. These more than 350 service stations will be gradually converted to the Shell brand and will enjoy access to our premium portfolio of products and services, which will complement well our marketing and services operation platform in the Southern Cone. Lastly, let me provide you an update on lubricants. We announced the acquisition of the operations of Shell in Brazil, but this transaction has not been closed yet, which should happen in the next few months. We'll keep the market posted about the progress of this transaction. Moving on to the next slide, and before moving on to the financial results, let us quickly go over the update for the next quarter. Both in renewables and sugar, the expectation is for sales to pick up pace in the quarter, since the higher inventory levels will be sold until the end of the crop at an improved prices compared to last year. Sugar prices are already hedged, and ethanol pricing scenario continues to provide good opportunities to leverage on returns. In marketing and services, we have seen a favorable scenario for profitability recovery, supported by the improvement of business environment and greater opportunities to optimize our infrastructure, strengthening our supply and commercialization strategy. Moving to the slide 10, now we've consolidated financial results. Net debt was BRL 17.6 billion this quarter, and leverage went down to 1.5x net debt pro forma Adjusted EBITDA, returning to pre-pandemic levels despite higher level of inventories as usual at this stage of the crop year. Certain specific cash flow movements took place during the quarter, as shown in the reconciliation on the right-hand side of the slide. In operational cash flow, the position reflects our sugar and ethanol inventories in line with the sales strategy for the year of concentrating greater volumes to sell towards the end of the crop, capturing better prices. In cash flow from investments, in addition to the recurring CapEx for maintenance and expansion, we had the disbursement of BRL 4.3 billion with the acquisition of Biosev. This amount includes the usual price adjustments that take place during this transaction, in addition to the cash incorporated on the closing date. In the financing line, the main impact was the inflow of proceeds from the IPO, which totaled BRL 6.7 billion. Moving on to slide 11, let us review the progress we made in our renewables agenda and our ESG journey. Since we already explored the Biosev acquisition and the Second-Generation Ethanol contract, I will briefly go over other main highlights here of the quarter. We signed an agreement for the supply of Biomethane to Yara in a pioneering long-term contract. We won an action to supply bioelectricity produced from sugarcane biomass for the next 20 years. We also announced that the JV that was created with Grupo Gera to enlarge and accelerate our portfolio of distributors, distributed generation, expanding the supply of cleaner and efficient energy and solutions. Last but not least, we established a key partnership with Volkswagen and Shell that contemplates a series of initiatives to reduce the emissions of greenhouse gases, mainly by encouraging the use of ethanol as fuel and the intent to supply Biomethane from Raízen's bioenergy parks as a replacement to fossil natural gas, which is currently used at Volkswagen plants in Brazil. These initiatives reinforce our commitment to provide products and services that allow Raízen and our clients to reduce emissions, increasing the efficiency and circularity of production processes. More details of our ESG agenda can be found on our ESG portal in our website. Moving on to the last slide before we close this presentation to discuss our guidance announced yesterday. We are again presenting our updated projections for the current crop year ending in March 2022, including the results from Biosev for the entire year. The range of the consolidated EBITDA is a little wider than usual, with the intent to absorb the scenario of increased volatility in sugar, ethanol, and energy prices, as well as the recent dynamics in the fuel sector. In any way, we expect Adjusted EBITDA to achieve a strong growth in the year. Going into the numbers, starting with the operations in our bioenergy parks. Current crop was strongly impacted by recent climate effects, reducing sugarcane crushing this year, as you are aware. CapEx reflects investment focus in keeping the progress of our agricultural yields, the impact of inflation on inputs and raw materials, and the lower number of operational crop days, as well as the E2G and biogas plants. In both renewables and sugar, the guidance reflects the better pricing of our products, leveraged by the favorable cycle in prices, partially offset by lower volumes produced during the year and pressure on costs due to the inflation and lower crushing. In marketing and services, we expect profitability to make progress on improved business environment in Brazil and solid performance in Argentina, as well as the integration of our operations in Paraguay. Recurring CapEx should remain at a similar level to expenditures from recent years, with a focus on capturing good opportunities for expansion and renewal of the services station network, as well as other investments in infrastructure. The CapEx also includes the mandatory and non-recurring investment to adapt product quality in the refinery in Argentina. Here I close this results presentation, and we can now move to the Q&A session. Thank you. Thank you. We will now start the Q&A session. Questions can be asked through the audio by clicking on the Raise the Hand icon available at the bottom of the screen. At this point, a request to open the microphone will appear on your screen, and you should click on Unmute. To send your question by text, just click on the Q&A icon, also available at the bottom of the screen, and type your question. Questions in Portuguese will only be received by text. Our next question comes from Thiago Duarte. Thank you. Good morning, everybody. Good morning, Mussa, Guilherme, Phillipe. Yeah, I'd like to ask two questions actually. The first one is on the guidance. Yeah, we are trying to gauge what the implied assumption is for prices, especially in the renewables and sugar segments, in order for you to reach the EBITDA guidance range that you reported last night. So I don't know if you can comment a little bit on that. I know in the presentation you mentioned, you know, expectations for better prices on a year-over-year basis, both on sugar based on the hedges on the ethanol side. If you could give us a sense of your pricing assumptions, that would be nice. Maybe in an even better way, when we look at the margins in the first half of the crop, both in terms of EBITDA per cubic meter in the ethanol side or EBITDA per ton in the sugar side, it looks like that the implied margin for the back half of the crop is lower, especially on the renewables business. Just to, you know, I think, I think it's clear what I'm trying to gauge here, just whether you think there are reasons to believe that your margin is going to be lower in the second half of the crop relative to the first half of the crop in either of these two segments. That would be the first question. The second question, just a quick one on the... You know, you're no longer disclosing the number of gas stations on a country-by-country basis. You're only giving us the consolidated number for Brazil and Argentina. Just if you could disclose that for country, or if you can't, if you could comment a little bit on how the competition is and how the environment is for you to grow your gas station base and keep expanding the gas station network, that would be nice as well. Thank you so much. Oh, thank you, Thiago. I have here Gui with me also can help me on the. Well, on the first question, you see that the sugar prices, we pretty much hedged everything that we have. All the upside that we're going to have on the second half is coming from when you originate and sell, so the trading part. That is still going to be good numbers for us this year. On the ethanol side, we also have a lot of exports already fixed, and the price is already locked in the end of the day. That's why when you see the numbers that we are projecting here, it reflects that. Of course, we are also very, say, hold to the ground here what we want to do. We are seeing the market perform even better than we initially anticipate, so there might be some upside there. We prefer to be really on the safe side here to do the forecast. We don't disclose all the details of that for commercial reasons, but it's pretty much what we have in our mind right now. To your second question, Thiago, related to fuels on the service stations. The environment where it's. When you have a situation like we are seeing right now in Brazil that the market is tight, so you have some. There was even discussions about, a month ago, if Petrobras was going to support the entire industry, is going to be some disruption of the supply chain. We have to import or not. That's very favorable to us because we have a very strong logistics, so we never had any disruption in our supply chain. Why I'm saying that? Because it helps when you convert sites to the Shell brand stations. When you see the reseller, he understands better the value of having someone like us supporting them in a time that the supply is very, very critical. We are increasing. That's why you see our gaining market shares. It's really that we're seeing the momentum of the market giving higher value for companies that can provide the very strong, reliable supply, and that's happening in Brazil big, big time. In Argentina, it's a market that we've been growing also very profitably. The growth, we are growing both the conversions into brand sites as Shell stations. It's moving on, Thiago, but we are not disclosing that anymore. Thanks, Mussa. If I could follow up on the first question. Sorry to insist about that. Can you... You mentioned on the pricing side, I think that's clear for both ethanol and sugar. Can you comment on your cash cost, whether we should expect your cash cost per ton to be much different in the second half of the crop relative to the first half? I think that would help us as well to sort of converge. Of course, Thiago. on what you're expecting on the guidance. No, that makes sense because you see that we are. If you see so far, we have a reduction in production around 6%, but that's because we anticipated the harvest. The total amount of harvest is going to be lower, so we're expecting to have a reduction around 13%, and that's going to have a lower crushing, less dilution on the costs, so higher costs. We also have diesel impacting on the cost side. The Consecana that we never had the Consecana price related to that. We're going to be net zero on the Consecana impact. All in all, you are going to see higher costs moving ahead because of lower crushing and the higher cost, especially on the diesel side. Thank you, Mussa. Just remember, the questions in Portuguese will be received only by text. Now, our next question comes from Regis Cardoso. Good morning, everyone. Good morning, Mussa. Thanks for taking my questions. A few topics I wanted to explore initially in the renewable segment. One of them is, was there any one-off gain in the first half? Anything like inventory gains, import gains, energy trading gains that we should bear in mind? No, there wasn't. In fact, we even on the energy side, we have a loss, not a gain. We didn't have any special or one-off on the renewable space. Clear. For the second half now of the year, is there any, you know, any particular issue? I mean, you commented about Consecana, so that cost inflation should not be a big issue because it's a natural hedge, if I understood correctly. Is there anything related to the hedge of ethanol in the second quarter, for example? You know, I think you get my point here. I'm trying to understand why the second half would be 35% lower. It's not marginally lower, right? It's substantially lower than the first half in a context where you have inventories in hand at the end of September that were the same volume as you sold in the first half with higher prices, right? I would expect a strong We have a lot of originated product. When you go into the second half of the year, we are selling the product that we originated. So in the end of the day, you're going to see a different profile. It's a different profile. First half of the year talking much more about our own production. The second half of the year, we also have our own originated product that goes towards that. The other point is the cost dilution. We're going to have a higher cost on the second half because you have anticipated the crushing. So in the end, part of the reduction on those margins is related to higher costs compared to the first half. Of course, we have a lot of... We anticipate when you're exporting, you fix prices when you exported. That's why also on the ethanol side, you have more fixed prices. That's always our strategy here to reduce the risks and have a very good, high profitability. We don't have that. There might be some upside, especially for the next crop season, because then we have zero on that already fixed in the other day. It's still, in our view, adhering to our original plan, we are above target. That's why we manage the risk in a proper way, but we are seeing some upward pressure on cost, but it's still going to be a record result for us. All right. Very clear. Now, if I may just two other quick ones. One is, it appears that your realized sugar price was significantly above what you had hedged or what was in the press release of results of hedged price in the previous quarter, which did not include Biosev. I believe that might be part of the answer. I just wanted to get a feeling of whether we should expect you to, in the sugar segment, to post realized prices above the hedged price going forward. No, great question. Remember that we have the internal market. We're very strong on the internal market that is not hedged. All the local market, the refined sugar that we sell, huge upside on that. We also have origination. We are originating much more sugar this year than we had in the past, and we've higher margins on that because we've been to the destinations. Biosev also had a lower hedged position compared to Raízen before the acquisition. That also helped. The internal market was a very good surprise, and it's still there. We are still seeing amazing prices and very good demand. Clear. If I understand correctly, your answer, it's mostly related to pricing dynamics, and it's not something, for instance, you've stopped selling FOB and started selling CIF instead. Yeah, the majority is not that, so if you compare, but we have improved a lot moving toward destination. The numbers, the big difference are not related to that because you're going to see we carry a lot of our sugar also for the final quarter because of you see the inventory levels that we have right now. We are going to see those numbers reflected more on the final quarter that we are going. We are moving towards a destination, so we are selling more. That's going to be our record year and a little bit above what we see on the initial plan, how much we are going to sell to end consumers. Clear. If I may also, just the last one from my side. The sequential decline in fuel distribution margin in Brazil was a little bit of a surprise to us. What do you reckon, I mean, is the current level of margins, the BRL 80 per cubic meter, very much off what you believe to be the recurring level, or is there something else structurally changed? No, not at all. Not at all. Well, there are always some seasonality on the margins. When you have the market, when you have more ethanol in the market, normally you have a lower margin, but that's where you have more tax evasion. September was already a fantastic month, much higher than the numbers that we're seeing here. Moving ahead, the situation right now is a situation that we have a very tight supply, and the tight supply helps us a lot because it's much more. The company has good logistics and good control of their supply chain, can navigate much better in those times. We are seeing a much higher compared to what you see already. This is very, very different, but the margins are improving considerably on the fuel side. Very clear, Mussa. Thanks for all the detailed answers. Have a good day. That's why. Just to make sure we understand that we are really looking on the top of the range. People are asking here on the guides and this stuff, but we are really looking on the top of the range. Our next question comes from Isabella Simonato from Bank of America. We do ask you to limit yourself to two questions at a time. Please, Isabella, you may proceed. I think you're on mute, Isabella. I'm not seeing you. Do you guys hear me? Yes. Now we can hear you fine, Isabella. How are you doing? Sorry, Mussa. How are you? Hi, Phillipe. Thank you for the call. I have two questions, first on sugar and ethanol. Of course, we all know that weather this year has been quite difficult, but when we look for 2022/2023, how are you guys thinking about the yield recovery? Right. What we have been hearing around is that maybe people are a little bit more cautious on the potential recovery, especially on the TCH. So how are you guys thinking about that for the next crop? And also on fuel distribution, as you guys pointed, right, you have been gaining a lot of share, pretty much across all fuels. Do you see some normalization of this already or this is a trend that you continue to see going forward? If you give some sort of indication of margin recovery for Q4, for Q3 actually, and Q4, given the seasonality and how, and now that we saw more volatility in fuel prices, any indication of that? Thank you. Okay, Isabella, on the first question here, we expect. We are doing, if you look into our profile of productivity, you can clearly see that we did a very good job on the first cut on the planting and harvesting the first cut, much better than the market. This should help us moving ahead. If you are on the other spectrum, our aged cane on the fifth and sixth, it suffered more than the market. It means that, moving ahead, we expect to still be better than the market because we are coming from a lower point. Everything that we saw on what we did on the first cut, on the first and second cut, is telling us that we should be recovering better than the market for next year. We still saw that we were better this year. We expect to be better next year and closing the gap and then on. We started that almost two years ago. We expect to close the gap in the next two years, and we are right on track to do that. You should expect us having a better recovery than the overall market is expecting for next year. It's still a little bit early. We had very good rainy season, rain in October. That was fantastic. Now in November is already showing a very good month also for rain. If that really happens by the end of November, we still have a lot of planting to do and recovery on our productivity rates. Here we are very confident that we're going to be delivering what we promised, and we are right on track on that. That's number one. To your second question here on guidance for that, we cannot give guidance on margins on the next quarters. What I can tell you is that there was a very strong recovery already in September, and we saw the tightness of the market in October. It helped because we had product and not every company had product. We don't see any change on the behavior of Petrobras for November and December, so pretty much the same what happened in October. It's very good. It looks good, but we cannot share here any guidance on that. Related to share, you asked about what we have. No, it's not. Our main role here is to be profitable, return of capital employed. We are not seeking market share. Of course it happens when you have a very consistent strategy as we have, and especially in situations that the tightness of the market's important. We normally gain market share in those situations, but that's not the role. That's not our intention. Our intention is to be more profitable, and we are not targeting market share. We don't have an internal target of market share. That's very clear. Thank you. Our next question comes from Christian Audi from Santander. Hello, Ricardo Mussa, Guilherme Cerqueira, and Phillipe Casale. My two questions are one related to sugar and ethanol, and the other to fuel distribution. On sugar and ethanol, clearly both sugar and ethanol prices have been and continue to be high. I was wondering if you could share with us a little bit how you're thinking about the mix into this quarter, into next year, and how quickly you could potentially try to maximize your mix for ethanol given the amazingly high ethanol prices. Notwithstanding the fact that you're already hedged, Mussa, as you mentioned earlier. I was just curious what the mix could look like. Then on the marketing and service profitability, you've made it clear that you expect improvements. I was just wondering if you could be a bit more specific, in terms of, what specific measures you're taking to improve this profitability. Is this more, for example, SG&A-related improvements, or is it more gross margin improvements? Any color as to how you see, aside from these market movements that you mentioned, seasonality, ethanol, et cetera, what specific controllable factors lead you to believe that margins would improve, please? Good point. Sorry, let me go to the second question, then I'll come back to the first question. The second question here related to what drives margins up. What we are seeing in the market, just how confident we are is what we saw in the market on September, October, and already November. This is somebody who asked about controllables. We are seeing our bottom line numbers already showing that big time. That's number one. If you look historically, when it ends the season of ethanol, that's when margins improve because you have ethanol is the market that has highest tax evasion, and it really affects the gasoline market because you have more players that contaminate the market. That one I mean about seasonality is related to that. You can clearly see that. We saw at the same time a higher conversion rate into Shell-branded stations and improvement in margins. When those two things happen at the same time, it's a proof that you have less, I would say, the competitors that are not playing by the rules are not there, and then you have a room to improve. It was very good in September, very good in October, and it shows the same now in November. That was. It's not SG&A. Of course, we are having more dilution of cost because volumes are up. You compare, we are up. Even compared to pre-COVID, we have record volumes all over, so it dilute our costs a lot, and it has been a very good year. If you look into our internal plan, because in our plan, we have this seasonality embedded, and we are much ahead of the plan. We are very happy with what we're seeing in the market and very confident throughout the end of the year, right? Sorry, what was the first question? I just know you're talking about hedge prices. Yeah. I was given that both sugar and ethanol prices are very high. The mix. You're right. Yeah. Yeah, the mix. Sorry. You're right. No, the mix is still sugar. I think the advantage of sugar compared to ethanol, you have much more liquid market that you can hedge and you can take risk away. On ethanol, it's much more difficult to do. Of course, we do proxy hedging, but on an election years that we have in Brazil next year, it's tough to make a call and already hedge. If you look right now into sugar prices, fantastic, phenomenal price for next year. We already locked in phenomenal prices, and we still have room for upside. I think the message here for me is this year we had the worst drought in 91 years with frosts and we are getting a phenomenal result. That shows a lot how resilient our business is. The only thing that we could be affected is price, really. Price is the major. When you have a chance like we had to lock in very good numbers, we are in a very safe side for the returns of next year, for the improvement on EBITDA next year, for sugar and ethanol. It's going to be a sugar mix for next year. We're still seeing support for sugar prices. It'll be a very, very good year next year. Mussa, just a quick follow-up. Are you on the renewable side as you try to negotiate E2G contracts with new users? How is that process going in terms of the price levels you are talking about trying to lock in? They were obviously very high during the IPO, but can you just update us on how Yeah The more recent ones are progressing, please? Yeah, I can give you a few words on that. If you look, if you were bullish on the IPO, we regret the prices that we fixed initially, because we are seeing much higher prices today, much higher. Yeah, locking in, we are closing more contracts and unbelievable prices in euros, and it's still going. Demand did not. Even with Glasgow and everything that is happening in Europe, U.S., we saw a pickup on demand and a pickup on prices. We are seeing a situation where we are a little bit shy on the numbers, to be honest, during the IPO, and we are seeing much better numbers, almost I would say 15%-20% higher than we had a couple of months ago on the E2G prices and the same demand coming in at very strong demand. We remain pretty much the same stage that our bottleneck is construction. Zero concern on price, zero concern on volume and improving the construction and the bottleneck of the supply chain to deliver faster what we promised. Very clear. Thank you very much. Our next question comes from Luiz Carvalho from UBS. Hi, Mussa. Hi, Phillipe. Thanks for taking the questions. Mussa, I basically want to touch into two different points, maybe starting from the strategy angle. If you can comment on the E2G front in terms of new contracts and how you're seeing the market evolving and any updates on this front that would be very useful. Also on the strategy front, in terms of the, let's say, on the GD you had some recent contracts with Gera, Yara, Volkswagen. Also from a strategic perspective, if you can comment on this front as well. The second question is more related to the fuel distribution segment. Recently Petrobras announced some cuts in terms of volumes for November, and we had noticed yesterday, actually this morning, that they announced an additional cuts for December. Raízen was one of the companies that invested the most in terms of infrastructure and diversification of supply. Just trying to understand if there's a bit more aggressive approach in terms of margins that you had over the past couple months, and as a consequence, you know, gaining a bit more market share is related to that and how you are preparing for these different approach from Petrobras. Also if you can comment on the fuel distribution segment in terms of the recent executive changes. I mean, Leo Pontes is moving to Cosan, and if we can expect additional moves at Raízen front. Thank you. No, thank you, Luiz. Nice to talk to you again. You have four questions. On the E2G side, we pretty much the strategy hasn't changed. What we are seeing the market is, as I said, much stronger demand and much better prices. I think that's the opposite. That's a very good sign. Of course, the cost of construction went up, but the prices are much higher than we had. Our returns on each project are better than we had a couple of months ago. Our focus is on the bottleneck of supply chain to try to build more than three plants a year. I think we are going to have good surprises ahead. We are getting good responses for... I think the supply chain globally is getting better. We are seeing now a good response coming from the market. That was my major concern. Major concern is how to debottleneck construction, especially on the equipment side, and that's the focus of the team. Commercially, it only got better. Prices are better. We are, of course, in negotiation with several different players, and there is much more demand that we can cope with. On the GD, and you talk about Yara and VW, Gera was a strategic approach from us, strategic acquisition. We see the potential of GD. This will become more material. You are going to see on our. We didn't talk much about that during the IPO about that, and it's becoming more and more relevant. One thing that surprises me since we last talked with was we have on the biogas front, our major point is to convert our own fleet to use the biogas. What happened in the market was the market came faster and with very good prices for us just to put the biogas into the pipes and supplies like Yara and VW, so that we already had two plants fully sold of biogas into that way of selling different than the just conversion. That was a very nice surprise. Just an example of what we can see ahead on the strategy front, the VW negotiation was a very interesting one because it combines very different things, supplying GD to their dealers. Something that we can do on a national base. Supplying biogas to their home consumption, and we are supplying also, together with them, we are using our digital platform to serve the customers. This is a way you can see that how you can interact with a customer and create value using very different tools inside our company. That's why I really liked the VW stuff. You talked about third question about Petrobras. As I said, it did exactly the same thing for December that it did for November, so the market is tight. We take advantage of our supply chain in that situation, so we do have a very strong supply chain to import, to guarantee to our resellers that they are going to have their product in a competitive way. It's a very good moment when you apply all that into the system. We don't see that changing, even for January. It's a very good moment that we're facing. Talking about the team, Leo was already seven years with us, so he's not moving far away. He's staying at Cosan. That's very good. The change, I think the message here is consistency. That's why we're promoting people from within our company. People that knows, they know the market very well, knowledgeable about the system. Everybody knows them, so we want to keep doing what we did in the past. We see that as a successful formula, and that's the message. The only change is when we create the supply chain is the focus. You're seeing right now how relevant it is to have the supply chain, so we want to give even more focus on the supply chain side too, especially at this time now that clearly Petrobras is moving to a very good direction, that is leaving the market to work by itself, and supply chain will become more and more relevant. That's why the move of putting more focus on the supply chain. All right. Very clear. Thank you very much. Our next question comes from Gabriel Barra from Citi. Please, Gabriel, you may proceed. Hi. Can you hear me now? Yes. Yes, we can hear you. Okay. Hey, Ricardo Mussa. Good morning, guys. Mussa, Guilherme, Casale, I think that I have three follow-ups here really quickly. The first point is a follow-up to the last question about the quarter. My point here is, do you believe that it is possible to improve margin market share in this environment? I know that the company has, let's say, really efficient in this point in import products and to the domestic market. We are seeing higher fuel price, and due to the import fuel, we probably continue to see this trend in the fuel price. My point is, do you see any challenge in order to pass through this higher price and maintain margins or even improve in the end of this year? I think that this will continue in the next year. I would like to understand your strategy and your point of view in terms of margins. Because I think that in terms of market share, you have a good position here. The second point on continuing the fuel distribution business in Brazil, if you could discuss a little bit the trend of the margin between July and September, because I believe that, as you said, you saw an improvement in the margin during the quarter. I'd like to understand the sense of how much this difference was in intra-quarter between July and September. The third point on the sugar and ethanol business and talking about the yield recovery was mentioned in the beginning of the call. You are seeing a good trend in the yields for the next crop season. Should you expect any higher CapEx in order to recover this damage caused by the climate condition this year or in the next year or even later this year? Are you planning any additional CapEx to recover the yields? This was my last question. Thank you. Okay. Thank you, Gabriel. Nice talk to you. The first question related to margins here. Yes, it's possible. When you have an environment like that, you have, as I said, the tightness of supply. It's when the market really sees the value of having a company like us that has a great brand and a great supply chain. What we're seeing right now, even conversions into new Shell sites are improving because it's a higher value proposition gets even better, right? Because you can guarantee supply, and you have a great brand. It's possible. When you say about margins, when you look into the quarter, we had August better than July and September much better than August. We see the trend of margin moving up. As I said, there is. If you look historically, we always have some seasonality on the margins. That's interesting. A lot related to ethanol specific, but also has some damage on the gasoline side. That was clearly this year. We had the improvement from August comparing to July, much better September, and then keep going on and much better October, and now even a better November. It's a trend. Market is moving up. Margins are getting better. I clearly believe that this is related to the situation that we're facing right now. Or more tightness on the supply side. That might indicate also, as I said, margins in Brazil are not that great. If you compare, we operate in Argentina with 3x higher margin than Brazil. We operate in Paraguay with 5x higher margin. Brazil is not a country that has structurally very high margins, so I don't see how this can go down. It has to improve over time, especially when you have even higher prices, and you see the amount of working capital needed for this type of business. It should improve over time. That's our belief. To your point to the CapEx side, it's marginal. The sugarcane is a very tough plant. When you have weather like this, it affects really the year. It's not something that changed structurally and needs to be a big impact. Of course, remember that we are on a phase of recovery of our productivity, so we're still planting, we're still investing. Our CapEx guidance, you see, remain pretty much the same. It hasn't changed that much because of the frost, of the dry season. Great. Thank you for the answers. The next question comes from Vicente Falanga from Bradesco BBI. Hello, can you hear me? I had a follow-up on E2G. Mussa, thank you for taking my questions. You said that the demand is very high, right? At what stage do you think Raízen might have to make another FID for another plant? Is this something that could happen next year or are we a little bit far away from that? Just to sense how tangible is the strong demand. Then a second. The ANP has recently approved a new regulation in the commercialization of biodiesel. For next year, the auctions will no longer exist, and apparently fuel distributors will have to buy directly from the biodiesel suppliers. How is the company preparing for this, and what are the risks and opportunities involved with this change? Thank you very much. Oh, great questions. Thank you, Vicente. The first one, pretty soon. The E2G remain a key priority to us, so we are enjoying a great market momentum. We are. You're going to see even this year, we should be announcing more investments. As I said, the focus of my team is to bottleneck supply chain, and that's the only reason why we are not building 10 plants at once or even 20 plants on the same year, is the difficulty to get such CapEx deployed in short period of time. But that's the only reason. If I could, I would. There is demand for that. There is good prices, good returns. We have to really be focused here on getting it done. It should be an announcement soon on E2G plans. Your second point on biodiesel. There's a big change when you take Petrobras away and leave the free market. With our infrastructure, our volume, and our expertise on agriculture segment, even relationship that we have in place with producers, that's a phenomenal change. We love the change because we have much more opportunity to have bilateral contracts and engage in one-on-one. Logistics will play a role. Free market is good. We are already advocating for that, and that's a good upside. I think it will bring more, I would say, differentiation from companies that know how to do trading, logistics, compared to the other ones that are purely off-takers. That can even create another trading capability for us because we can resell biodiesel to third parties too. We see that as a great opportunity, not a threat, not a risk. Great. Thank you, Mussa. Very clear. The next question comes from Lucas Ferreira from JPMorgan. I think you're on mute, Lucas. Hi. Yeah, sorry. I was on mute. I had to press star six. Thanks for the opportunity. Mussa, just a follow-up on the CapEx. Looking at the guidance, I had the impression that you would be investing actually a little bit more this year, but the CapEx coming overall, you know, close to that BRL 5.75 billion. Does this imply at all that you're pushing some CapEx to next year, given, you know, the market conditions now or not really? I know you just published a guidance for this year. Thinking about next year, given all the inflation we've been seeing, and eventually there might be some postponement of CapEx. Should we expect the CapEx to be actually materially higher next year? That's my first question. The second question, just about, your outlook for the end of the season in terms of, your, trading opportunities, in special ethanol. Do you see any kind of open window or you think might be open windows for importing? Can you elaborate on a little bit on this, how you see like trading opportunities, for Raízen towards the end of the season? Thanks. No, great questions. On the first one, what might be happening if we anticipate. We are seeing that because we didn't put more than one plant of E2G of investment of CapEx this year. There might be a good surprise of anticipation of CapEx because what we're trying to do on E2G. We might see some increase on the CapEx related to E2G anticipation. That's something you should expect. Second point here on the special item in trading. The volatility, it's good for the traders. We have a lot of volatility on the ethanol side. It's good. What's happening, not only in Brazil, but especially in Europe and U.S. We are taking advantage of that. There is some upsides on the trading of ethanol outside Brazil that we might be showing on the next results. Yes, this is happening. One thing that we noticed this year is that the demand for industrial grade has picked up. A lot of that related to ESG. People trying to replace plastics, trying to replace solvents, chemicals. Industrial grade for us is becoming more and more relevant. The point that this year was we had such a good price, nice price internally. We had to really find a way to be flexible to try to originate more ethanol, to try to comply with all the contracts and also enjoy good margins internally. Because remember that we are very focused on the export segment. We have clients outside Brazil and consumers. This year was a very good price also internally. It was an interesting move trying to originate more to our clients outside and trying to do something more internally. It's a very good year for trading. Thank you very much. We got one question here from the chat, from Luiz, which is on my side. First, he was asking about the hedge position for 2023 and going forward. We are hedging ahead for the next 36 months. How we are looking for the long positions of Sugar No. 11. The other question is to explore possible impacts of India's plans on mixing ethanol in their mix of fuels, and the cut of the subsidies from 2023 on the sugar exports in India. Thank you, Phillipe. Thank you. Luiz Luiz. Luiz from Nucleo. Luiz, I think the first on the hedge you saw on the guidance here, we pretty much locked a good percent of sugar for next year at fantastic price. Historically, it's one of the best results that we are going to have. Also 2023, 2024 already showing great numbers. Those great numbers, if you look into the in dollar terms, are not phenomenal, but to win in real is unbelievable, right? To what we're seeing. We still very disciplined on not trying to get the exact best moment, but we are being very disciplined to do our hedging policy and guarantee good results and reduce volatility. This will remain. We believe in this strategy. We are going to do that. Of course, when the market spikes up, we don't enjoy fully the upside, but we are pretty much protected against downsides in the future. We believe in our strategy. This will not change. The second point to India, as we said, I've been advocating that for a long, long time. India was the big, I would say elephant in the room for sugar prices globally, has always been India for the past. It really twisted the sugar prices with their subsidies policy. Now, with ethanol picking up in India and reduction in the crop in Brazil, we are seeing the sugar price where they have to be. It's still at those prices that we're seeing today. We're not attracting a huge production. We're not seeing anyone in Brazil announcing new mills. We are not seeing anyone in Thailand moving towards sugar. That indicates that sugar prices structurally will be high. Don't forget that RenovaBio, the targets of RenovaBio for 2023, 2024 are very aggressive, and this will create additional pressure on the sugar prices. That's why we are always bullish when you're looking to sugar prices moving ahead. I don't think we are going to see those low numbers of sugar anymore. The bottom or the floor of sugar prices are higher than it was two years ago, and we are going to see that and we are going to enjoy, I would say, a long trend of at least on the sugar, more even than on the ethanol. That's related to RenovaBio and India. Those two components are massive, and of course, Brazil is not expanding. We are seeing demand of ethanol in Brazil increasing. We are seeing the demand for Ot to cycle in Brazil increasing, and we are seeing a huge increase for industrial use of ethanol. For chemicals, for plastics, for all this stuff. This is a trend that is not changing. We're seeing the market moving because of ESG stuff. The demand is there. That's why E2G is enjoying such high margins, that's why ethanol is enjoying such high prices and sugar too. There are other questions here in the chat that were already answered. Those who have questions can contact us, and we'll make sure to address all of them that were pending. Thank you. This concludes the question and answer session. I will now return the floor to Ricardo Mussa for his closing remarks. Oh, thank you. I think we are very aware this has been a record year for us. If you look into our numbers right now, we are very proud of what we achieved. We had the IPO behind us. We have a fantastic quarter, the record quarter for Raízen. That's not it, we are going to have more records ahead of us. We have record market share, record volume, record revenue, record EBITDA, recovery on the productivity side. Now we're speeding up our agenda of ESG with E2G and the good surprise of biogas. Things that we didn't talk much throughout the presentation here were the power segment, something that with Gera we are going to be more and more on the next calls, doing a deep dive on that. Expect more, I would say, discussions related to power. That's something that will become more relevant to us. It's not in our numbers yet big time. And finally here, just a little one teaser. Please, if you follow the Formula 1 on Sunday, that Sunday, there's going to be a big announcement related to Raízen there. Something that, for a long time we were expecting and now became a reality. I cannot share, sorry, because of marketing purposes what it is, so I urge you to, on Sunday at, I think 1:30 P.M., you can follow on the TV some announcements that we're going to talk about in the Formula 1 related to our business. They're quite nice, interesting. Okay. I think that's it. Thank you very much for the call and I hope to see you soon. Take care. Thank you. This does conclude Raízen's webinar. Have a nice day.