Good morning, everyone. Thank you for waiting. Welcome to the Raízen S.A. fourth quarter and the 2022, 2023 crop year earnings conference call. It is important to point out that we provide those who need simultaneous translation with this tool available on the platform. To access, just click on the interpretation button through the globe icon at the bottom of the screen and choose your preferred language, Portuguese or English. For those who are listening to the video conference in Portuguese, there is the option to mute the original audio in English by clicking on Mute Original Audio. We advise you that the video conference is being recorded and will be available on the company's RR website, ri.raizen.com.br, where the complete material of our earnings call can be found. You can also download the presentation from the chat icon, including in Portuguese. During the company's presentation, all participants will have their microphones disabled. We will start the question and answer session. We emphasize that the information contained in this presentation and any statements that may be made during the earnings call regarding business prospects, projections, and operational and financial goals of Raízen S.A. constitute the beliefs and assumptions of the company's management, as well as information currently available. Forward considerations are not performance guarantees. They involve risks, uncertainties and assumptions as they refer to future events, and therefore depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions, and other operating factors may affect the future performance of Raízen S.A. and lead to results that differ materially from those expressed in such forward-looking statements. Today, we have the presence of the company's executives, Ricardo Mussa, CEO, Carlos Moura, CFO, and Felipe Casella, Head of IR. I will now give the floor to Mr. Felipe Casella. Good morning, everyone, and thank you for attending the Raízen Results Conference Call for the closing of the 2022-2023 crop year. Here with me today are Ricardo Mussa, our CEO, and Carlos Moura, our CFO and IRO. I will go briefly over the highlights of the results released last Friday, and then I will invite Carlos to highlight some relevant topics related to this crop year in our business plan and in our expansion plans. Let's begin the results presentation on slide three. We closed the last quarter of 2022-2023 harvest with all lines of business being expanded despite the overall complexity and volatility in the business environment. Our net revenue was record-breaking, and we delivered a consolidated EBITDA above the projections in our guidance. Return on capital measured by ROACE made significant progress versus last crop year, we remain firm in delivering our expansion plans with more than BRL 11 billion invested in the year. Primary cash generation measured by EBITDA minus recurring CapEx was BRL 7.9 billion. Let's move to slide four with more detailed discussion on each of the business segments, starting with Power segment and sugar on Slide 4. After crushing has been completed last quarter, we present a picture of the closing of the crop year and compare it with last year as well as with our expectations for the year. Due to the drier climate, we had reduced sugarcane availability, productivity, and sugar equivalent production. This was also the main component of stress on costs since it generated less dilution of the fixed portion, as you can see in the graph on the right. The effects of inflation also impacted the raw material and labor costs during this crop year. We managed to mitigate part of these effects of inflation by implementing various internal actions and working closely with suppliers to improve the cost efficiency balance. In terms of agricultural productivity, we are moving forward on our journey towards recovery, closing the crop year with an encouraging performance that will allow us to continue on the path of gradually reaching the average productivity of the market at this first stage. We can move to the next slide number five, with the financial highlights of the Renewables and Sugar segment. The segments combined adjusted EBITDA grew both in the quarter and in the year. We have been rapidly expanding the volumes traded for ethanol, power, and sugar, taking advantage of market opportunities to maximize our share in the chain and expanding the return of our operations as a consequence. In addition, we capture better prices for ethanol and sugar, which is in line with our strategy of differentiation for those products. In power, we reached an EBITDA of BRL 1 billion this year, a result that reflects our integrated performance in generation, commercialization, and trading. As you may have noticed, we have been increasing over the disclosure of the Power segment, and we will soon announce the new brand that is gonna be dedicated to explore the opportunities in this segment. Moving on to the next slide, let's give an update about the ethanol prices. We continue to expand the value of the ethanol value chain this year and improving the prices we have recognized in the results. In the annual comparison, the growth was 8% year-on-year, which is equivalent to a premium of 30% compared to the average hydrous product in the local market. As shown in the last quarters, we explore the value of the ethanol chain in a unique way with an integrated positioning, selling ethanol for different markets and applications at scale and with product certification. This places us in a privileged position to capture superior returns, especially in scenarios of depressed local prices. Moving to the next slide, let's talk about the results in marketing and services. Beginning with the Brazilian operation, the business environment during the fourth quarter of the crop year was marked by challenge and volatility. We reinforced our supply strategy to mitigate potential negative effects on our operations, while at the same time we are intensifying our commercial and marketing initiatives, enhancing the value of the Shell's integrated offer. We closed the crop year in the quarter with more than 1 billion liters added in the last 12 months, maintaining the pace of renewal and branding of new stations. With the launch of the new Shell V-Power, which is proven to be the most used and recognized premium fuel in Brazil, we carried out a commercial repositioning, pursuing more value for Raízen and for our resellers. I should also mention the progress made in Shell Box with growing numbers of users and transactions, in addition to the accelerated expansion in the number of Shell Select stores and mainly OXXO markets. Only in this last quarter of the crop year, we opened 85 new OXXO markets and we will continue to accelerate expansions in line with our growth plan. The center of our strategy is to expand the value proposition for our resellers, increasing the economic value of the market in a sustainable way. There is a seasonal concentration of SG&A expenses during the last quarter of the crop year, which this year were more than offset by a tax gain related to the Complementary Law 192. As a result, we had an important increase in margins this year even when we normalized this effect. Volumes sold were in line with the comparative periods, both in the quarter and in the year, but with an important improvement in auto cycle and aviation sales. This growth is directly related to our strategy to grow and serve our Shell network instead of serving a high volume business, notably on the diesel side. In aviation, volumes increased, anchored by increased volumes in commercial aviation, both to Brazilian and to foreign airlines known as the visiting. Now moving to the next slide with the operations in Argentina and Paraguay. In marketing and services LatAm, the highlight was the complete resumptions of operations at the refinery after the scheduled maintenance last quarter. We posted a strong expansion in both volumes and margins despite all the challenges imposed by the economic scenario in Argentina while expanding our operations and the rebranding in Paraguay. We completed another cycle of investments in the refinery to maximize the efficiency to refine products with lower sulfur content, further reducing the carbon footprint. Another important initiative in Argentina is to balance the capital structure in the country's operation due to the current capital restrictions and controls. We optimized the operation with funding from local market, running the operation at a higher leverage than usual, which at this time serves to increase the efficiency of Raízen's capital structure. Well, with that, I'm closing the presentation of the operational and the financial results. Now I'd like to bring Carlos on to talk a bit more about our capital structure and also the strategic advances we had in our business this year. Carlos, please. Thank you, Felipe. Good morning, all. Initially, I would like to point out that in this crop year, we have made several improvements that demonstrate how this group has worked to create business with resilience under the scenarios. We have been working tirelessly to achieve a sustainable capital structure by closely monitoring the economic challenges in the geographies in which we operate. There was strong cash generation during the last quarter of the crop year, which has historically been the case here at Raízen. Here we have been using the company's balance sheet to support the business increasing, pursuing to maintain prudent levels of liquidity balanced with a coherent capital structure that can support our expansion cycle. On operating cash flow, the main effects on working capital in the quarter are related to the following. First, inventories, which followed the typical seasonality of this harvest period, which will increase in sales and normalization of inventory levels in markets and services business. Second, in suppliers and accounts payables. We maintained the consolidated financial cycle in a healthy alignment, taking advantage of occasional optionality in our balance sheets. Last but not least, in account receivables, which is consistent with higher volumes commercialized and payment terms given in direct sales to final customers of sugar and ethanol, offering higher implied profitability and low credit risk. In cash flow from investments, the main expenditures were in recovering agricultural productivity in connection with investments in building the E2G plants, expanding the Power segment in the biogas plant located in the Costa Pinto Bioenergy Park, and increasing operating efficiency in Argentina Refinery. Financing cash flow incorporates a higher level of amortization in the period, which in accordance with our guideline of extending the average debt term in our balance sheet. These effects also help to explain the movement in net debt as shown in the graph below. Despite the increasing debt of the period, we maintained healthy levels of leverage flat year-over-year. Moving to the next slide, I would like to connect these numbers with our capital allocation priorities. We have three major commandments within our group, which guide our decision-making process, ensuring financial discipline and our company's ability to be adaptive in any scenario. Our first priority, which is to preserve our investment grade during the current investment cycle. We are in a leverage below our projections in parallel with the continuous extension of our debt. An important source of funds will come from the compensation of recordable taxes in which we already made considerable improvements. This line is an important vector for coming years as detailed in the new Note 8 of the financial statements. Second, managing and prioritizing our capital allocation, supporting business strategies. We are strictly following these priorities as shown in the slides, and continuously access the returns of each of these groups of investments. The third priority translates into exercising our optionality by continuously evaluating our portfolio and partnerships, notably in biogas, power, and other new business, seeking to maximize the value of the portfolio that we are currently managing. This may also represent divestments for supporting our growth plan, always consistent with the first two points already presented. Next slide, please. On all the items that we listed amongst the six main pillars, I would like to highlight the topic 5 related to the operational optimization, especially in Renewables and Sugar, resulting from the lower crushing volumes that we entailed lower our industrial efficiency and concentration of costs. We have improved in the all items in which we highlight the expansion of business, generation of more margins, integration of acquiring businesses, and the growth of Power business. I would like to point out the progress of the initiatives of our strategic plan according to the next slide. Starting with the E2G. We have proven the operational capacity, and we have made great improvements in our journey of market expansion. The credibility assured by the company with our partners and with customers reflects the intellectual property over the technology and our execution capacity. We broke the production record at the plant, probing that this technology is ready and can be fully scaled. Currently, we have five new plants being built, meeting a global demand that does not stop growing. Our contract portfolio already has 4.3 billion liters to be sold over the next few years, sustaining a consistent projection of the E2G program. In power business, we are capturing market opportunities, intensifying partnerships, and enlarging our scale. Our performance in generation, trading, and solutions for energy sector is based in one single pillar, the customer-centric approach. In Sugar, we accelerated our strategy, advancing in direct sales to the destination, with almost 100% of our production already being sold with any intermediaries, also advancing in the portion sold to and originated from third parties. Another important achievement was the creation of the world's first 100% traceable sugar chain with no GMO, ensuring additional demand from our products with superior returns, all of that in a constructive pricing cycle. Next slide, please. We know the opportunities and challenges that we have ahead. We are confident and ready to navigate in this environment and deliver solid results considering the following assumptions. We anticipate crushing that will be 90% higher than this year, reaching 80 million tons due to the appropriate weather and improvement in our agricultural productivity. The increase in crushing will dilute fixed costs with higher volumes of commercialization in an environment of superior prices than we had in the last harvest, mainly in sugar, where we have already a good portion of sugar hedged and fixed in our portfolio. We are substantially accelerating our power platform with an increasingly significant contribution to the results after increases capacity and volume sold, mainly in the free market environment, denominated in Brazil as ACL. In marketing and services, we have increases in sales volumes in our Shell network, besides the opportunities to optimize and capture gains within our integrated supply and sales platform. Our focus in maximizing profitability in our operations in Brazil, even considering the risks of a still volatile business environment. Regarding investments, this will be the year with the highest CapEx in our cycle of expansion. Our priorities will be the following: CapEx linked to the agricultural use in the recovery journey. Projects to expand Renewables in our bioenergy parks, mainly with the construction of the five E2G plants and one biogas plant already under construction. Distributed power generation projects focus on increasing the generation of renewable electricity to meet the growth of our customer base. Finally, expenditures marketing service to expand our network, grow and optimize our logistics infrastructure, and complete investments to be made to adjust the quality of products and reduce sulfur emissions in our Argentinian refinery. Two important points to highlight. The matrix management of expenses, expanding our perimeter and scope of action. Our ambition is to achieve a reference model capable of making us even more resilient in any scenario that we may face ahead. Attention, rigor, and prudence in the cash flow, given the scenario of higher interest rates and less availability of credit in the market, which imposes us a vision of recycled asset portfolio, monetizing tax credits, and develop solutions for the capital structure that we already mapped with the objective to sustain the investment plan and maintain the leverage and liquidity principles that I have mentioned. I would like to reiterate our motivation and confidence to deliver the results expected for this crop year. Next slide, please. On the opportunity side, the highlight is the agroindustrial production benefiting our Sugar business in marketing services to persevere the integrated value offering and hence even more the lubricants business, expand the power business, attracting more customers and optimizing our portfolio management, monetize tax credits, and continuously review the assets of the company. In the challenges side, we are attentive to the unfolding of potential El Niño, which can affect our crushing volumes due to the rainfall regime at the end of this harvest. In this sense, we are accelerating our production, looking closely into the volatility and externalities in the oil products market, where we reiterate our fight against illegality and tax evasion, as well our attention to the diverse sources of supply. Macroeconomic and political scenario in which the adaptation of the Brazilian government in its first year, as well the election in Argentina will impose a lot of attention from us. Higher interest rates, which demands diversification and creativity in the source of capital, especially in the cycle of investments and business expansion. Tax reform and recent court decisions which make the business environment less predictable and naturally demand our attention and concentration in this matter. Very important, please note that we have made a few more slides available in the appendix related to the Raízen sustainability journey, as well all the updates about the E2G program. Thank you for your attention. Now we can move to the Q&A session. We will now begin the Q&A session. Remembering that to ask questions, you must click on the Q&A icon at the bottom of the screen and write your request to participate to join the queue. Upon being announced, a request to activate your microphone will appear on the screen, and you must activate your microphone to ask a question. We kindly request that each participant ask a maximum of two questions. Let's now go to our first question. It comes from Gabriel Barra with Citibank. Gabriel, we will now open your audio so you can ask your question. Please proceed, sir. Ricardo, Carlos, Felipe, thanks for taking my questions here. I have two from my side. The first one, in terms of cash flow generation, working capital and leverage. As you mentioned, we saw a significant release of working capital in the end of this year, as already expected, but the amount in market is still surprising as here, something close to BRL 4 billion. Could you talk a little bit about this dynamic? Additionally, could you provide more details about the cash flow generation for this year, for this crop season and the company net debt target for the end of this crop year? It could help us here to understand this dynamic, that's important, taking account the huge investment that you have for this year. The second point about the tax credits, right? I think that one point here I want to understand is about the monetization of those tax credits and the timeline here. Additionally, the company has a very large line of credits in the balance sheet. If I'm not mistaken, you mentioned something about 10 years to monetize all of these credits. My question is the full amount or just the BRL 3.3 billion? Additionally, there is any kind of risk here that you need to monitor in the following quarters, or you think that this is conservative in terms of monetizing this credit and there is no risk here with the Brazilian judge or something like that. So those two points will help us to understand a little bit here, the quarter. Thank you. Good morning, Barra. It's a pleasure to talk with you. I will start on your first question about cash flow generation, and then I will pass to Mussa to talk about the tax credits and the other points. Regarding the cash flow generation for this year crop, we had a very positive momentum due to the management of working capital. If you remember, two quarters before, we said about to put our balance sheet at the service of a strategy related to Sugar, related to ethanol, putting the accounting receivables with more intensity. We have optimized our supply chain in fuels, adjusting our inventory levels for the end of the year in all of our business lines. That's the reason why we had a very strong cash generation and gaining more extension in our debt maturity. Regarding the vision for 2023-2024, we expect to maintain our net debt stable, which means something like BRL 20 billion-BRL 21 billion in net debt with around the same 1.3x adjusted EBITDA. Why? First, with the primary cash generation, even considering the increase of the CapEx for this year to sustain our expansion, but continues to manage the working capital, taking more advantage of the positions that we already taken, monetizing tax credits with more and more intensity. Just for reference, in this year, we compensated monetizing something about BRL 3.7 billion, even with a higher level of taxing in Argentina and some tax credits, tax payments in Brazil that we won't have this effect again for this year. The expectation of the company is to compensate and monetize 100% of the tax charge of the company and reciting our portfolio, which means to take advantage of some assets to, for example, E2G contracts, that we can have opportunity to monetize them, developing advances and other solutions in order to match our demand for capital in the E2G plans. That is the major part of our expansion program. Mussa. No, thank you, Barra. Just to conclude, I think Carlos already talked a little bit about our tax monetization. If you look into this year, the quality of this tax credit is really phenomenal compared to what we have in our balance sheet. It's something that we, in our recovery, looking to five years is something that we can do it even faster than that. In the end of the day, it's, when you look into how we achieve those numbers, especially compared to other types of credits, this is pretty much very good one. We can even, ask for that in cash if we wanted to, we understood that we could, compensate with other taxes that we have inside the company. It would be faster to do that. It was a long debate internally, how we would monetize that faster, and that's why we're so confident and we put that in our business plan moving ahead. Barra, this is Felipe here. Just one compliment here about this the tax credit and how we're gonna be able to show you guys this. We have a new Note on the financial statement, which is Note 8. Which is well disclosed at each line and each type of credit and how we are going to use this going forward. Just a reference for you guys to follow up every quarter about this usage of the tax. Very clear, you guys. Thank you. Well, now moving on to our next question. It comes from Luiz Carvalho with UBS. Luiz, we'll now open your audio so you can ask your question. Go ahead, sir. Hi. Hi, Mussa, Carlos, Felipe. Thanks for taking a question. I have basically two here as well. The first, if you may, I don't know, help us to try to reconciliate the EBITDA cash flow. You provided a guidance between BRL 13.5 billion and BRL 14.5 billion of EBITDA and a CapEx of BRL 13 billion, BRL 14 billion. Trying to understand how, you know, the dividend policy would play, given that you already paid a certain amount this year. That's the first one. The second one, it's about the breakdown of the guidance, right? I mean, what is implied in terms of margin on the fuel distribution side? I mean, now that... I mean, when we look in terms of the EBITDA potential guidance to reach that, we would get something between BRL 110, BRL 120. I mean, the recent margins has been lower than that. Just trying to get a sense here in terms of what do you think about the margins looking forward? If I may, a third one, if you would like to, I don't know, proceed to distribute more dividends, I mean, what's the reason behind that? I mean, given the, let's say, the stock is, you know, pretty much down compared to the IPO level, why a buyback wouldn't make much more sense here? Thank you. Luiz, thank you for your question. Firstly, I would like to highlight your last point, that we put a slide in our presentation to reinforce our discipline and coherence in the balance sheet management. Maintaining a prudential level of leverage, and I will go deeper in this point, extending the maturity and intensifying the level of tax credits monetization. Maintaining the pace of capital expenditures in our main projects, and if necessary, we will exercise our options, including buybacks or dividends and recycling our portfolio. The first commandment, which means the preservation of our investment rate, even in this investment cycle, is the principle. That is the discipline that we are running the company, and the reason why for maintaining the expectations for this year, 2023, 2024, to reach a net debt to EBITDA of 1.3 x. Why? Given the better performance of working capital, we have done a very positive quarter. If you remember, the other quarters were very intense in working capital consumption. Second, reduce the level of the payment of taxes, as I mentioned to Barra previously. Considering a lower level of interest payments, some people in the market is considering the competence regime as the driver of the interest payments. That is not the case. Due to the extension of the debt, we have a lower pressure in this line. Another important point is the portfolio recycling. Again, we work to develop partnerships or get some advances in our E2G contracts, with more intensity in order to sustain our expansion. Once again, it's important to match the demand of capital of E2G with alternative sources of capital to maintain our balance sheet safe and in a prudential way. To your point here on the guidance part, Luiz, of course, we are seeing the improvement operational margins. I disagree with you that we're seeing lower margins. I know that has been difficult for the market to understand how, where is the margin for the fuel segment. If you look and if you compare apples to apples of 2021, 2022 compared 2022, 2023, of course, these one-offs of having lower inventory hits and reduction on prices, huge effects on the tax cut last year. If you take that off, you can see that operational margins for the entire sector not only Raízen has been improving. If you look at the next year, just for us to achieve our numbers, we need to reach BRL 120. That's pretty much feasible. Of course, my ambition is much higher than that, but it's moving ahead. We're seeing the improvement of the operational margins. A very good example for me is when you look into the PL 192, that's an example how high the margins of the sector can be. When you had that opportunity and it was not passed through prices. You saw the value creation for the company when that happened. That tells me that the margin target on the medium term can be much, much higher. That's why we're still very optimistic on delivering the next year results. Not as challenging, I believe, as it was this particular year. Okay. No, thank you. Thank you very much. Very clear. All right. Now we're moving on to Thiago Duarte with BTG Pactual. Thiago, we'll now open the audio so you can ask your question. Go ahead, sir. Hi. Thank you. Thank you for the opportunity. Yeah, I'd like to focus on the guidance and a little bit of the assumptions that drove both the EBITDA and the CapEx guidance that you're providing. I think Mussa just made reference to BRL 120 per cubic meter in the marketing and services business in Brazil. I think that's a good color. With regards to the Renewables and Sugar, a couple of things that I would love to hear more color on. Number one, what's the price of sugar and ethanol, or at least a range for pricing that the company is assuming in order to get to the guidance? Number two, with regards to cost, right? With 9% increase in crushing and the expected cost dilution, what kind of unitary cost you guys expect to be able to achieve in this new crop? With regards to the CapEx, can you also quantify in terms of the growth, in terms of the expansion CapEx, how much of that is expected to go exclusively into the E2G plants that are being built? That would be helpful as well. Thank you. Thank you, Thiago, for the question. Let me give you a highlight overview here, and to Carlos get all the detail on the numbers, but just to give you some highlights of the guidance. We are improving our productivity for next year, so the numbers so far are really good. The 1st initial signs coming from the crop are really, really good. The challenge for me this year is much, much less the ton per acre per hectare, and much more being able to harvest everything because of potential El Niño. It's a different challenge, Thiago. If you look what we achieved on the first, seco nd, now the third cut, and more than 2/3 of our entire base already fixed, we are heading very high confidence level on the volume side. If you take the. We are getting almost 10% more, maybe a little bit more than that on the volume side. If you take price-wise, you see that Sugar already hedged around 20% higher than last year. That's 85% of our total production. If you look into the spare, the 15%, it can be even higher than that. The market stays trading above $1.20, $1.25, so we can have even higher numbers on the Sugar side. Ethanol prices are pretty much the same at the average that we had last year, but also an increase in volume. Cost-wise here, Thiago, I don't have the number on. Maybe Carlos can give you on the unitary cost. We can show you later. We are seeing, of course, dilution of cost and less inflationary pressure than we saw last year. That's also used to receive more volume, better prices, and lower cost. Really for me, the higher risk that I have right now is being able to harvest the crop. Really, that would be the highest risk. Because we have more spare capacity than the average, we on average should be better than the market because we have more spare capacity to harvest the entire crop that we have ahead of us. That's for me, the main point for the confidence that we have on the guidance on this year, Thiago. Hi, Thiago. Good morning. Related to the cost, just to go into the detail, we put in our release now a new vision of costs related to the cost of agriculture production. That is the almost the cash cost that is forming the inventories level, which will have, as Mussa said, strong dilution due to the volumes. We are already seeing the relief in the diesel prices, fertilizers, and labor. This will be positive for our costs. We expect to stabilize the level of costs in nominal terms with a dilution in Sugar equivalent cash costs. For your question regarding the E2G forecasted investment for this year, a disbursement in about BRL 3.5 billion in E2G. The rest is coming. Of course, we have biogas, that we are concluding the two plants. Power, we have a lot of distribution generation that we have already sold and delivered. These, those three, all the growth investments here, Thiago, we have very, of course, very low risk on the commercial side. It's really the implementation. That's why when we saw our plant of Costa Pinto plant performing so well. We are getting more and more confident on the levels that we are going to achieve in E2G. The Bonfim plant is pretty much almost done here, so we are on the final stage, to start the plant. We have five plants under construction right now. You can see on the slides what we have right now on the screen on Bonfim, Univalem, Barra, Vale do Rosário, and Gasa, all under construction at the same time. It's important, of course, to recover the productivity to be able to supply all the biomass into those plants. That's why we are getting much more confident this year with that, with the development, with the expenses. We also see some relief on the CapEx side of steel and everything that is related to the E2G plants. Of course, getting more confident once those plants are reaching finalizing the construction, now really excited about the starting up Bonfim plant. That will be another milestone. I think the milestone of reaching the productivity that we reach on Costa Pinto was phenomenal. We beat the record of production. Now is really to prove that the plant that we built is operational and that will be another milestone by August, September this year. We'll be back here talking about it. Very helpful. Thank you. Okay, thank you. Let's now move on to the question by Isabella Simonato with Bank of America. Isabella, we'll open your audio so you can ask your question. Go ahead, ma'am. Thank you. Good morning, Ricardo Mussa, Carlos Moura, Felipe Casella. Thank you for the questions. I have two questions. First of all, still on the sugar and ethanol scenario, right? I wonder who could give us a little bit more clarity if you're being able to hedge the next crop season at current price level in the next couple of weeks or months, and what's your view on the sugar prices for the next 12 months? If you could also address a little bit the dynamics for ethanol, right? Considering that fuel consumption probably won't move much this year. You do have a decent supply, so what's your view, especially on the parity with gasoline? My second question, Ricardo Mussa, you mentioned investments on biogas, right? I wonder what's your current view on that, and if you continue to pursue the plans as initially thought. Thank you. Great. Thank you. Great questions, Isabella. First on the hedge of Sugar, you saw I just explained that we already hedged the 2023, 2024 season almost 85%. If you look in 2024, 2025, we are hedged around 30%. We are still, if you look into prices right now, even higher, much better. As I always said since the IPO, has always been, I think Sugar should find structurally a new level to stabilize and attract new production. We haven't seen any new production of sugar for the past, I would say nine years or 10 years, and demand keep growing. Of course, right now it's exacerbated for the problems that there was in the Indian crop. Even in Brazil was below what everyone expected last year, so we had a deficit on the global sugar market for the past three years. Having said that, Isabella, I'm still constructed on Sugar. I don't know if those prices, $0.26, $0.27, we will sustain. For me, structurally, Sugar should be above $0.20, $0.21 to be able to attract new production, and that's what we see prices moving forward. That's why even though we are constructive on prices, we are not taking much risk. Our company need the cash. That's why we took the risk approach of fixing hedging prices, and we're moving on 2024, 2025, getting advantage of those very good prices and very good returns. For me, 2024, 2025 we're going to have even more production, so we are fixing also the... Now the third cut is really phenomenal. Fourth cut is coming, we expect 2025, 2026 to have 100% of our sugarcane in full potential to have much more volume. If we can guarantee those prices that we're seeing today, we are going to have very good cash flow coming from that. More than that, Isabella, that's when 2024, 2025 and 2025, 2026, that's when the cash flow from E2G will come. The company will move into a different animal, a different shape of cash flow generation, much less volatility on the cash flow. That's why we are very, very, I would say, cautious on managing the risk for this season and the next crop season to be able to have. That's the peak of CapEx that we have. We end all the CapEx in Argentina this year. The E2G will finance itself. It's going to be a strong cash flow generation coming from E2G, 2025, 2026 onwards. For me, we are not taking much risk and okay, let's wait to get even better price of sugar. If we had very good results, we are hedging and fixing that. On the ethanol side, what we see prices, of course, will depend on gasoline prices. What we see is very stable prices compared to last year. We are seeing our premium, and again, Isabella, remember that we're exporting a lot, and we are getting better and better on the export side industrial segment. The premiums that we are getting on the ethanol side should compensate for any price reduction that might see on hydrous. This year we have the return on PIS/COFINS tax starting June. We are seeing the discussion to increase from 27% to 30% on the ethanol side. We're not seeing any upside. We are putting pretty much the same prices that we had on the previous year. On the biogas side, we of course, biogas is a great molecule. We are concluding the two plants that we already sold into very good prices to Scania, to Volkswagen and all that. The discussion right now is the same as Isabella's. What's the best use of the biogas? We have new products coming in. We are talking about even biomethanol and other stuff. We are more cautious on just setting up new contracts because we are seeing other potential uses of the biogas even internally. That's what we are taking some time to not speed up the construction of new plants because the horizon show very good potential, other products or other uses for the biogas. It's still very constructive and the same way we were before, Isabella for the good reason, right? To have more alternatives than we had before. On the Raízen Day, we are going to share more about these new products and everything that we are developing, starting from biogas, from fertilizer, from green ammonia and other stuff. We're going to talk more on the Raízen Day. Thank you. Okay. Now we'll move on to Bruno Montanari with Morgan Stanley. Bruno, we'll open your audio so you can go ahead and ask your question. Please, sir, go ahead. Morning, everyone. Thank you for taking my questions. One follow-up on the guidance first. When we look at the E2G investments, right? Are you actually accelerating versus the prior budget for plan, or is it just sticking to the original schedule? Looking to see if we can have some positive surprise in terms of how fast you can bring the new plants online. A second question on ethanol export prices. It seems that your premium has contracted a bit in the past quarter, of course, still at a very healthy level. Should we expect the current level of premium to be the normal one, or can you return to probably a higher spread in the export market? Finally, if you could comment on Raízen's position regarding the Russian diesel imports, whether you would be willing to do that if it's getting in the way of your fuel distribution margins, that'd be helpful. Thank you very much. Thank you, Bruno. The three questions. First, on E2G, no, we are, we're pretty much on what we had on E2G planned. Of course, we have a lot in our hands right now, five plants at the same time, it's a lot. Once we have the Bonfim plant operational, we'll discuss if we're going to accelerate or not. Right now we are keeping pretty much the same pace that we had designed a few years ago. On the premium on exports, it's difficult to look. You have to look into the full year, not only on a quarter base, because quarterly you have a lot of different things happening from different clients and inventory. It's difficult to look in. You should expect similar premiums. We haven't changed anything on that sense. I think this year will be different from last one. We are seeing more difficulty. If El Niño happens, but as we are seeing here, we see more difficult to produce ethanol by the end of the crop season. That might change a little bit the scenario that we had this year. We had no cash and carry this year. There might be opportunities on that, Bruno. We're still looking, but it's very early to say. Clearly, this year will be different from last year. Things... We didn't have any opportunity last year to do cash and carry. That might happen this year, we don't know. On the premium side, the agenda hasn't changed. We are moving our ethanol into the premium markets in Europe, Japan and U.S. It will, we'll keep the same thing happening this year. Recently, Russian imports, of course, we always look into all things that are moving right now. Petrobras is clearly showing some changes on their price mechanism in Brazil. Of course, we look into all the opportunities to import from different sources. We always guarantee to our dealers the best price, the best supply. We are very good on that. We have a very good trading team, we are right now looking to all the opportunities. I will not share our strategy here. What I can tell is that we are going to be competitive. We are going to comply with all the rules in the market. If there is opportunity to do that, we will do that in a very, I would say disciplined way. To also have to keep in mind to check what Petrobras will do, and I don't think it will take too long for them to share what their new strategy is. With all that in our hands, then we're going to make a decision, Bruno. I think what I can share with you, we have a great trading desk, great logistics, great support from the shareholders, and we are able to get from a very different sources. Right now we are looking to all the opportunities to decide what we're going to do. I know it's a very evasive answer here, Bruno. I know that. That's as much as I can share with you on the strategic side. That's quite clear. Thank you very much. Okay. Thank you. Now on to our next question. It comes from Lucas Ferreira with JP Morgan. Lucas, we'll now open your audio so you can go ahead and ask your question. Lucas, please go ahead. Hi, good morning, everybody. Thanks for the space. I have a couple follow-ups. The first one on the credit monetizations. Just wanted to understand maybe from Carlos. Carlos, if you see any chance of any risk of these credits don't get monetized or maybe not in the time that you foresee. My question is what are the risks of, you know, this falling behind your schedule? And the other question, on the same lines, how much more credits you should be generating, not only consuming the credits you already have, but how much more credits you should be generating through the year? And then the other question, the follow-up to Ricardo Mussa. Mussa, I know you touched on this, a few times. Looking at this year on the marketing services, market in Brazil and Argentina, you know, given the, you know, the uncertainties regarding, you just mentioned Petrobras and the volatility on oil prices, on currency, and the policy, et cetera. How confident you guys are that this year will be less volatile than last year? In other words, are that you gonna get closer to that normalized margin. When I look at the outlook and considering Argentina's election, I have a hard time understanding how this year could be less volatile than last year. That's basically my question, and, well, appreciate any comments around that. Thank you. Lucas, good morning. Good to talk with you. First regarding credit monetization. The risk of non-compensation or refund of those credits is very low, especially when you talk about the state credits with the new regime of monophasic, this will be very positive in terms of the turnover of this kind of asset. In terms of the federal credits, as we have a strong generation for this year of the taxes in Brazil due to the better performance of our results, we expect to use the DTA to compensate 30% of the load of taxation over profit. The other 70% remaining will be compensated with this fiscal fees that we are using. We have a study of monetization or realization of those credits that is subject to a verification from our auditors. Naturally, we have some conservatives in this approach, but we are working hard and developing solutions for accelerate this monetization. It's also important to remind the effect in Argentina that's due to the imports of oil derivatives over there. We had a tax retention that we will compensate, this will also create a relief in our tax bunch. This is very positive for us going forward. We are creating a value reserve that took advantage of the integration of our view in terms of margin. This integrated and interdependent view in the margin that provide us the formation of this asset. Again, this position from the market to not consider as a, in a recurring base, the tax credit, in our opinion, is not correct due to the fact that we have this integrated approach. Naturally, we explore all the optionalities in our footprint. That was an example, due to the distortions in the markets during the last year, we took the decision to recognize those credits in accordance with our governance and again, build this value reserve of cash to fund our initiatives going forward. I'll pass to Mussa to talk about oil prices. Yeah. Just to conclude here on Carlos' side. We have a huge asset here on the tax side, so you should expect our company to be more... If you look into the history of our company on how much EBITDA cash, we have created a huge asset, and this asset can be monetized, so we should expect more and more cash coming from that. So our ratio between EBITDA and cash should change because we have a huge asset here. When I mean huge is you can have more details on the note that Felipe told you guys. Hopefully, over time you can understand the value that has been created and how we are going to do that to move ahead. Related to your question on fuels business, the volatility, I think it's different. I agree with you, Argentina has a high risk of having high volatility because of elections and what's happening in Argentina right now. It's a self-contained. Our debt in Argentina is contained in pesos, so any big devaluation there is also a positive impact in our, in our debt here because we have a lot of debt in Argentina in discussing this. This, I agree with you. I think Argentina this year, in my view, is a higher risk because of the scenario, political scenario. Paraguay and Brazil is completely different. Paraguay elections has already done, I don't see a repeat very high prices of fuels this year compared to what we had last year that made all the governments to reflect that on different policies. Brazil was even more because of the elections, right? This will not happen in Brazil this year. There is no elections. We are not seeing the volatility that we had last year with the Ukraine-Russian war. We are even seeing these low down prices. I think the prices will adjust lower. That will benefit the government not to make any funny or make very different things in the market this year to create volatility. I see less volatility in the Brazilian and Paraguayan market, and more volatility on the Argentinian market, Lucas. That's again, it's Brazil, it's the world. We don't know what's going to happen in Europe with the war. Right now, our scenario is much more stable, and we could be able to see better how, where is the operational margin of the business without that much impact. I just thought that told that and last week we had a price decrease, and we're going to see our inventory losses on it. Compared to last year, I don't see anything the same. We had just some price cuts for PIS/COFINS and the ICMS. We had more than BRL 1,300 per cubic meter in a market that has BRL 140 per cubic meter margin. It's 10x the margin just on price change, price fluctuation on taxes. This has never been seen before, and that's why I understand it was difficult for the market to understand where the margins. That's why we are optimistic. We see operational margin improving. In our numbers here, if you compare 2021, 2022 compared to 2022, 2023, margins were up. Not only ours, but the entire market, and we are seeing the same for next year. Excellent. Thank you both. Okay, thank you. Now on to our last question. Last but not least, this question will come from Regis Cardoso with Credit Suisse. Regis, we'll open your audio so you can ask your question. Go ahead, sir. You may proceed. Hi, guys. Mussa, Carlos, Felipe, thanks for the presentation. quick couple follow-ups. If you can comment on the guidance. I mean, looking at even the prices that you've hedged some 20% above, thinking about the increased productivity, which we expect some 10% or so, you know, I'll maybe expect more of an increase year-on-year than a half a billion BRL we have seen from last year's guidance to this year. My question is whether you think the guidance, you've taken a more conservative approach to it, or if you've, you know, if there's anything else I'm not considering in that reasoning? That would be on the guidance and maybe something related, if you could also discuss the difference between Esalq prices in Brazil and the New York No. 11 prices in the U.S., if there are any constraints in the exports of sugar, you know, how has that impacted you? Just maybe lastly, a follow-up on the topic of margins. If you can comment on where you see your recovery margins for the year, if you've seen margins improving sequentially in the months, particularly now in the second quarter. If you can comment how has been the competitive environment in April and so far in May, you know, particularly given We're particularly concerned given the increasing share of Russian imports in the domestic market. Thank you. Thank you, Regis. I think the guidance, we are very hold to the ground on the guidance for this year. We do have risks in Argentina that we embedded here. Of course, we have risks on El Niño that I said before. As we move forward, Regis, we are more and more confident on the especially on the productivity side. I think that for me has been our really weak spot, and this year is the year for us to show that we are really recovering on the productivity, and we are more than 65%, 66% already done in our job. Power, as I mentioned, it's something that last year was really good. We are going to give you guys more about that. We are focusing a lot on power, on electricity in our business right now. We are creating a lot of value with customers. That was a very positive surprise and might be something to surprise by the end of the year. When you talk about I think I understood your question, Regis, on New York No. 11 Esalq on ethanol side. Very different clients. We have a very, I would say, good client base with different formats. We have in some clients have fixed prices, some clients we have prices related to Esalq, some. All over the place, I think here, Regis. I strongly believe we have the best trading desk for ethanol globally. We are doing a great job on the supply side. I'll give examples. We have ships that can combine going, coming with diesel, moving backwards with, with Sugar, something that was unbelievable in the past. This will I'm very confident on the premiums that we are gaining on ethanol moving ahead. On the margins of fuels, there is no constraint right now to import. Of course, we are looking the Russian diesel very closely. As I told before, we also have to look into what Petrobras is going to do on their pricing policy. We are one of the largest, if not the largest client of Petrobras in Brazil, very close to them on the discussion. We are waiting also to check what's the What their behavior to that for us to take a very strong position. What I can share is that we are doing everything we can here to be competitive, and we will. There is no constraint on my side to do anything. We are obviously depending on Petrobras position. We're going to position ourself very, very quickly. On the margins, as I said, I think the 120-140, that's, we see improvement from last year and the same thing from 2021-2022 to 2022-2023, and right now 2023-2024 is still, in from my view, is very, very low margins, even 120-140 and potential upside moving ahead. I see the trend we follow. Of course, we have much more information than you guys on the market is happening. We had the highest investment last year on marketing, the highest investment on the Shell V-Power and Shell Box that we ever did. The integrated value offer that we have right now is unbeatable. That's why we're so confident also on the increase on the margin. I think the market is improving, and we are investing a lot. If you look into our numbers, how much money we're putting on marketing, on Shell Box, on V-Power and differentiation. That's why we had record market share in our branded dealers, record volumes on the branded dealers and record conversions into branded sites. That for me is the best you can get on that. The market is the market. We are going to adjust. We're good. We are fast, and we're going to adjust the market. This, the trend continues on the right direction. Great. Thanks, Mussa. If I may just to follow up the question on pricing, sorry, on export restrictions and difference between domestic price in Brazil and internationally in New York is on the sugar. We've seen some discussion about logistics constraints on Brazil exporting sugar and therefore that, you know, historical spread or premium between domestic markets in Brazil and markets abroad has collapsed. Meaning maybe the 25+ cent of dollar per pound would not be available to producers in Brazil. If you could comment on that? Yeah, good point. I think as is on the logistics constraints, we saw a very good crop for soybean and for the grains. We expect to have logistics constraints in Brazil to export. We of course, we see that as an advantage for Raízen a very good contracts. We know how to handle that, but you're right. That's why you saw prices spiking much more on the short term than on the long run. I'm with you, Regis Cardoso. We are more concerned about reducing the volatility and guaranteeing the cash flow generation of the company for the next two crop seasons. Very important to us. Prices right now are phenomenal, great returns. As I said, I don't think we should be aiming here to get $0.25-$0.26. Of course, if we can, we will. As much as we can, we still have 15% to hedge, and we are going to hedge at much better prices than what we have already hedged. I don't regret. If you look into next crop season, we are moving forward with even better prices than this year, and we're going to have even better production for next year. Again, we are very risk. The mindset of risk approach is the right mindset. I see the market is struggling. I don't see any big production coming from India right now. Even in Europe, they have reduced the beet area. Looking to Thailand with a limitation on that. I don't see any reason for Brazil to put any cap on anything. No, no issue at all on the cap to export or price export cap. Brazil is benefiting from those good prices right now, and we'll benefit even more next crop season. The question right now is much more how long should the price be to be able to attract new production? Because the market needs additional production, and the price should be sustained at a high level for a longer period of time for any company to make investments, including ours. That's why we're still constructive on price, as I said. I've been telling that for a long, long, long years. If you look into the stocks-to-use ratio right now of sugar is still very low. As I said, even during the IPO, I'm very constructive on sugar prices, and the market is going where we think it should be. It don't need to be $0.26, $0.25, to be very, very profitable, Regis. Even at everything above $0.20, $0.21 is already a great return to us. That's why we keep hedging, and we'll keep doing that for next crops in the next one, the next one, and keep collecting very good returns. Understood. Thank you, Mussa. Well, thank you. I'd like to turn the floor over to Felipe Casella for one last question. Please, Mr. Casella, you have the floor. First, just to clarify here, beginning some questions directly here. The number Mussa mentioned about the margins of 120-140 is related to the Brazilian operation. We have been running Latam at a higher level, historically speaking, and that's already also embedded in the guidance, a higher level of margins for the Latam operation. One question we got here on the chat is regarding the expansion of the OXXO market network. What is the intention of the company for the long run? If we are looking into selling part of the operation at some point in time in the future. The question is from Francisco Gante. No, sorry. Just, sorry, Casella, I was looking to other thing. I think the expansion remains the same. We are very glad with the results that we had so far with OXXO. The partnership has been great with our guys from Mexico. We did our expansion in São Paulo. We started in Campinas region. The expansion was also really good. Remember that we operate 100% of the stores, and we keep the same pace of growth that we have in the past. Of course, we are looking into the geographies that make sense to us, where we can. One thing that I think the market hasn't seen yet is the benefit for Shell Select, because once we start having the scale of OXXO helping on the Shell Select to negotiate better prices, and we are seeing now our dealers benefiting, especially in the regions where OXXO is in, benefiting from that. That's why we had a record year also of putting Shell Select in place, and our dealers will be very, very happy this year with the results that we're going to get from them, especially on getting lower cost by managing the operation ourselves. I think what you should expect on OXXO is still growing. You haven't seen big numbers in our results yet because it's a growth period. We're still investing a lot on OXXO, but it's a self finance company. It's not reflecting upon us here on Raízen, but they're doing a great job so far. Thank you. The Q&A session is now closed. We would like to tell you that all questions that have not been answered will be replied to by the IR team of Raízen S.A. We would now like to turn the floor over to the company's closing remarks. Please, Mr. Mussa, you have the floor. Thank you everyone for the questions. It was a great year. I know very volatile year that we had last year, just want to congratulate the entire Raízen for that. We were able to create a lot of value and take advantage. Again, even the tax credit, I know that the analysts are looking into that with some skepticism, for me, it was unbelievable how well we managed not to pass through prices and create the values of the company that will be monetized in a short period of time. That's value creation. Nobody's taking that from us, it will help financing the company. We saw the progress on the productivity side. For me, if you ask my number one priority is productivity. We should deliver on that. That for me, the commitment to the market is that we are going to be in much better shape this year. We are doing the right thing. You can look into our numbers first, second, now the third cut. More than 64%, 65% of the entire crop is already fixed and moving very fast to conclude everything. We still see great momentum for E2G. Sustainable aviation fuel demand still spiking. More demand that we can couple with, and we are concluding the second plant, and we are very excited to launch that in August, September. Hope you guys can join us during the launch. Then we're going to talk more about how to speed the E2G expansion once we get even more confident after this launch. The market, there is a lot of tailwind helping us right now to move on the right direction. First priority, productivity, second priority, deliver E2G, and the third one is the profitability of the fuels business, Brazil, Argentina, and Paraguay. As I told you, we increased our marketing expenses. We are investing more and more into the Shell Box and into the dealers and the branded sites. We expect to have even more profitability coming this year and even better business on the cash conversion side compared to the previous years. Excited about this new crop season. We are going to deliver as we always did in the past. Thank you, guys. Just so you know, just a recap here. Raízen Day will be webcasted live on May 24th for those who cannot join us. Please, it's going to be a good chance to exchange. I'm going to be there. My entire team is going to be there to talk more about details of what we are doing and share views and discuss the future of the company. Thank you very much. Okay, thank you, sir. The video conference of results referring to the fourth quarter and the 2022-2023 crop year from Raízen S.A. is now officially closed. The investor relations department is available to answer other questions and concerns. Thank you so much to all participants, and have a good afternoon, everyone. Thank you.