Good morning, everyone. Thank you for waiting. Welcome to the Raízen SA Q1 of 2023-2024 crop year earnings presentation. This presentation is being recorded, and the replay will be available at the company's IR website at ri.raizen.com.br and at Raízen's official YouTube channel. We would like to inform that all attendees will only be listening the presentation. Then we will start the Q&A session, when further instructions will be provided. This call will be presented in English with Portuguese transcript. For the Q&A session, there will be a simultaneous translation to Portuguese. To change the audio, you can press the globe icon on the lower right side of your Zoom screen and then choose to enter the Portuguese room. After that, you can select Mute Original Audio. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections, our goals, and the beliefs and assumptions of Raízen's executive board using current information available. These statements may involve risks and uncertainties as they relate to future events, and therefore depend on circumstances that may or may not occur. Investors and analysts should be aware of events related to macroeconomic scenario, the industry, and other factors that could cause results to differ materially from those expressed in the respective forward-looking statements. Today, we have the presence of the following company's executives: Ricardo Mussa, CEO; Carlos Moura, CFO and Investor Relations Officer; and Felipe Casali, Head of IR. Now, I will turn the conference over to Mr. Casali. Please, you may begin your presentation. Good morning, everyone, and thank you for attending our Raízen results presentation for the Q1 of the 2023-2024 crop year, now with this new format. Here with me today is Carlos Moura, our CFO and IRO, and our CEO, Ricardo Mussa, will join us later via Zoom for the Q&A session. I would like to point out that this presentation is also being broadcasted on our YouTube channel with Portuguese subtitles. To begin the presentation, let me invite Carlos for his introduction. Good morning, Carlos. Good morning, Felipe. Good morning, everyone. Thank you for being here with us. This quarter, we had important structural progresses and dealt with circumstantial challenges. It's important to mention our priorities and levers to value creation presented at this year's Raízen Day, and from which I highlight the following. First, mobility. We continue to make progresses in expanding our network, reinforcing the dealer centrality. However, internal and external circumstances caused strong volatility in the industry margins and resulted in a complex operational environment, with excess of diesel supply in the market, in addition to macroeconomic effects in Latin America. Additionally, successive price drops in all products resulted in effects on inventories. Under any circumstances, we will continue to strengthen the Shell integrated offering. In addition to the number of the stations, we increased sales to the Otto cycle, and aviation. Our mobility teams in Latin America are even more prepared and confident in their ability to navigate this environment and deliver solid results, evolving as the year progresses. I am pleased to announce the progresses made in the recovery of agricultural productivity. We started the harvest with accelerated crushing and superior performance rates. Our crop has been exceeding expectations. Our guidance of 80 billion tons this year will be reached, and we will generate more products for commercialization and naturally dilute costs. In sugar, prices are favorable cycle, in accordance with our strategy to advancing the value chain with direct sales to the destination and product differentiation. In ethanol, we decided to support an inventory position that would allow us to adapt to two scenario of market prices. Despite the pressures in the capital structure, we are confident that this position will promote benefits, we will maintain the differentiated mix of anhydrous and industrial ethanol for several markets and applications, capturing premiums over the benchmark. In the power segment, we continue to capturing opportunities in the market, intensifying partnerships and gaining scale. We grew consistently our distributed generation customer base and sales levels. We are making progresses in E2G with investments within expectations, including five plants currently under construction.... we will inaugurate the plant at the Bonfim Bioenergy Park in the city of Guariba, state of São Paulo, which means that the world's two largest cellulosic ethanol plants in operation are from Raízen. Regarding the capital structure, I would like to highlight the rigor with our commandments. The investment grade status was reaffirmed by two risk rating agencies. Our leverage at the end of the quarter follows the harvest seasonality and our commercialization strategy. It's important to note that we are using the levers in our capital structure, such as, for example, more than R$1 billion in compensation and reimbursement of tax credits. The next slide, please, see the highlights of the results released yesterday. Despite the lower volumes sold in the Q1 this year, we were able to capture cost efficiencies, which more than compensated the lower level of revenues in the period. As you can see, our EBITDA was positively impacted by improved results in sugar and affected by the lower contribution from renewables and mobility, as I have mentioned earlier. At the corporate level, we recognized a non-recurring extemporaneous effect of tax credits. Despite being a part of adjusted EBITDA, we reiterate that these effects should not be considered for the calculation of the guidance in this year. The nature of these credits is similar to those accounted for last year and will contribute to enhance our tax shield and future cash dynamic. Now, I call Felipe to come back and provide more details for each of our business segments, and at the end, I will return for some closing remarks. Thank you, Carlos. I would like to start with the mobility segment and with the results of the operation in Brazil and Latin America. Despite the increased volume sold from our operations, margins were affected by operational circumstances this quarter, especially in Brazil. In Argentina, we have made relevant efforts to sustain margins, even through and amidst a challenged economic scenario in this election year. We are improving the balance of local capital structure to adequate the current scenario of capital restrictions and controls. This means funding denominated in Argentine pesos and running the operations at a higher leverage than usual. Let me give you some color on Mobility Brazil. As you can see, this quarter was strongly affected by a new dynamic of increasing production locally with an incentive for opportunistic imports. That scenario caused an oversupply of diesel and consecutive price drops, further creating a challenging environment for our operations. We have seen new pricing dynamic from the major supplier that should reflect in lower volatility in prices, but an increasing volatility in the supply, mainly on the diesel. This dynamic should benefit our supply strategy gradually throughout this year, as we expect a recovery in returns. In diesel, you can see how the price movement of both the molecules sold by Petrobras and the imported one went down. July already shows a different trend, reflecting what I have just mentioned. Now, going to the next slide here, the same movement occurred in the gasoline, ethanol, and aviation fuel, with negative effect on prices throughout the quarter. Worth mentioning that we have a more relevant penetration on ethanol in our operations, which maximizing the challenge of the turnover of our inventories. As a result, the total inventory effect on margins, led us to a result of R$59 per cubic meter, which, when normalized by that effect, takes us to a R$94 per cubic meter. Despite these impacts, we made progress in the structural aspects that supports our long-term strategy in the mobility segment. As we can see, we expanded our network of services stations and customer base, increased the volumes sold in the auto cycle and in commercial aviation. We continue to intensify sales and marketing initiatives, enhancing the value of the Shell integrated offer and profitability for both our resellers and to Raízen. I should mention that the progress made in the Shell Box with growing numbers in both users and transactions, and in the lubricants business, we are expanding sales on branded products, seeking to reach our fair share on retail and B2B. We are also making progress with Shell Recharge. We reached 346 OXXO-branded stores, which takes us to over 2,000 points of presence in our operations. Now, let's move to our agro-industrial operation, which was the highlight of the quarter. Despite slower progress in crushing due to rainfall in early April, our TSH, or tons of sugar per hectare, showed a strong progress, which resulted in an increased production of sugar equivalent. We are also maximizing the sugar production mix, taking advantage of the cycle of improved prices. For this year, we expect to crush at least 80 million tons of sugarcane, already reaping the results of our journey of agricultural recovery. We remain firm with our investments to bring agricultural productivity to superior level. We completed more than two-thirds of this journey, and we are on track to reach full potential of our production. Soon, the fourth, fifth, and sixth cut will be adequately at the levels of productivity that we are seeking, increasing our product availability, improving returns, and cost efficiency. Now, speaking about renewables and sugar costs, this harvest will certainly bring important gains in efficiency, reflecting our better productivity and having a stronger dilution effect on fixed costs. We also saw a relief on diesel, fertilizers, and other agricultural inputs, which will help to improve our cost dynamics. It should be noted that these effects are not fully visible in the Q1 of the crop year, due to the inventory carryover from previous harvest. As the sales of this crop advance, this benefit will be clearly demonstrated. Looking at the results in renewables and sugar, the lower revenue was more than offset by lower costs of goods sold in the quarter, resulting in a strong expansion of gross profit, mainly from sugar. EBITDA, as you can see in this slide here, was positively affected by the improved product margins, but offset by lower sales volumes of ethanol and sugar. Regarding volume sold, it is important to highlight the power business, which has gained in size with the increase of our customer base in distributed generation and commercialization as well, a trend that should continue over the year. As for ethanol and sugar, let me remind you once again that Raízen's sales strategy is based on maximizing returns, targeting the best prices throughout the harvest year. That said, in this quarter, there was a concentration of lower volume sold, added with the setting up of inventories for future sales. Now, I would like to provide an overview of prices, starting with ethanol. As you can see, the circumstances in the market pushed ethanol prices down with successive drop. Our integrated positioning and portfolio explores different markets and applications for ethanol, which has contributed to capturing higher prices. An important point I would like to draw attention to is that the quarterly sales mix included the smaller volumes for exports and industrial ethanol. However, as shown in this slide, our sales strategy for this year continues unchanged and will ensure higher returns over local market prices. Regarding sugar, we are entering the sixth harvest year in a row with prices at higher levels, this time with a 20% premium over the previous year. We have hedged prices in BRL terms, ensuring expansion our returns by combining higher volumes, better prices, and the lower production costs. As you can see, even in a scenario of lowering prices in the future, here in orange, the prices remain very constructive levels. Taking advantage of this higher price cycle for the commodity business, we continue to increase our presence in the sugar value chain, making more and more sales directly to the destination, so without any intermediaries. We'll now be calling Carlos back for his final remarks. Thank you, Carlos. Thank you, Felipe. Before we go through the cash flow for the quarter, I would like to share some information about one of our liquidity levers supporting our balance sheet, recoverable taxes. In this quarter, we managed to offset and have reimbursements of over just BRL 1 billion, with an emphasis on PIS/Cofins credits. This quarter, as detailed in explanatory note number eight, we recognize extemporaneous credits, which will be relevant to our company in the coming years, in compliance with tax standards. As we have mentioned before, we are building sugar and ethanol inventories for future sales, in addition to using some working capital levers available to us, always maintaining prudential levels of liquidity, balancing with a current capital structure, which allow us to support our expansion cycle. In terms of cash flow of investments, we are maintaining our focus on recovering agricultural productivity together with investments to build E2G plants, product quality in the refinery in Argentina, renovation of service stations, and expanding the power segment. Financing cash flow, incorporating a higher level of amortizations according to the guideline of extending the average term of the indebtedness in our balance sheet at the end of this year, which explains the difference in cash flow to the shareholders between the periods. These effects also explain the seasonal fluctuation of net debt. Despite the increase of the debt in the period, a healthy level of leverage has been maintained. Our indicators are always convergent at the close of the crop year, giving our sales behavior pace and our margins. We will have always done here, I would like to share with you the analysis of opportunities and challenges that lie ahead for us, listing them in this slide. Let me highlight our opportunities, which include superior level of agricultural productivity, with an expansion of at least 9% in crushing at the floor of 80 million tons of sugarcane, which confirms our guidance. In sugar, we accelerated our strategy of moving forward with direct sales to destinations, expanding returns in the favorable cycle for commodities and diluting costs. Our E2G continues to expand strongly. Our contract portfolio reaches the equivalent to EUR 4.3 billion. We will maintain the market up to date on all of our progresses going forward. Amidst our challenges, I would like to highlight the volatility and externalities in the fuels market, at least until December. The less predictable business environment demands utmost attention and concentration from us. Naturally, the macroeconomic and political scenario in Argentina requires close attention and agility in our decision-making processes. In Paraguay, we feel confident with the new momentum in the country after the last presidential elections. I reiterate our motivation, focus, and confidence in delivering results for this crop year, as we have disclosed in our guidance. It's key that we know how to separate circumstantial effects from the structural advances achieved following our strategy. Before I finish the presentation, I would like to highlight the launch of our sustainability report regarding 2022, 2023 crop year, reinforcing our journey and commitments regarding ESG aspects. We are also issuing the first version of the modeling guide, which will provide a better understanding about our business and sources of data and information. We will remain at your disposal to support you to exploring this guide and improving the level of knowledge about our company. I would like to call our CEO, Ricardo Mussa, proudly representing Raízen in Istanbul, Turkey, together with our dealers, to our Q&A session. Thank you. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please press the button Reaction and then click on Raise Hand. If your question has already been answered, you can leave the Q&A by clicking on Put Your Hand Down. There is also the possibility to ask your question through the Q&A icon at the bottom of the screen. You may select the icon and type your questions. Written questions that are not addressed during the earnings call will be returned by the investor relations team. We kindly ask that you make only two questions. Our first question come from Mr. Luiz Carvalho from UBS. Mr. Carvalho, the floor is yours. Hi, everyone. Thanks for the opportunity for making the questions. I have a couple, basically three here, if I may. The first one, Mussa, if you can, I don't know, share some views about the, let's say, the recent Petrobras price increase, both in gasoline and diesel, on the light of the fuel distribution business, on the light of the sugar and ethanol business, and also the strategy of the company in terms of supply, you know, fuel supply. That would be the first one. The second one, if you can also give us a bit of an update in terms of the contracts on E2G and how the margins are performing. It's always good to hear from you on how the to the business and the competitive environment is evolving. Lastly, if I may, a very quick one. We had the primaries in Argentina, and we saw massive depreciation of the currency during this week. Just wondering if you can share some views as well in terms of how should we think about the returns and, you know, the outlook for Argentina? If that's the case, despite that you reiterate that the guidance, if that poses some risks to the company guidance? Thank you. Thank you, Luis. Ricardo Mussa here. Great questions. The first one on regarding Petrobras price increase. Of course, we, we were expecting, and this price increase in my point of view, because the situation was really challenging to support the, the, especially the diesel supply in Brazil. We're also seeing what's the impact on the, on the ethanol business. To be very clear, of course, it's very positive to us on the ethanol side. We were concerned, ethanol price were really, really low, and that's why you can see that we sold less than we had initially anticipated for the beginning of the crop. It turned out to be a, a, a good strategy. We are seeing now the ethanol price recovering with this price increase from Petrobras. More than that, I think it's. A great message to the market that Petrobras is following the international parity prices. Of course, with less volatility, as Jean-Paul said before, but I think it was a great example that gives us confidence moving ahead on both business. I think the best impact that we're going to have is on the sugar and ethanol business, because this will drive ethanol prices up, and it and it should. This was a good, good momentum for us. Related to your point on our strategy on the fuel business, we have been very close to Petrobras. We're trying to protect our quota as much as we can, and of course, being able to have access to the cheapest molecule, that as much as we can, we can share right now. I think it was a good, we were very glad with more than the price increase, but much more with the behavior that's showing that the Brazilian market is still following with, of course, with less volatility to the international market price. This gives us. I think we did the right strategy here, being close to Petrobras, protecting the quota. Looking ahead, I see a very positive trend. We already saw that happening in July, especially now in August. It's a good, good moment. To your second question on E2G contracts, I think the market hasn't changed. What I'm seeing right now is the demand from sustainable aviation fuel is getting stronger. And I think the market prices that we have seen hasn't changed much. We are still seeing premiums now above 100% from E1G prices. I think the thing that we are seeing now that is better than before, is our cost of production is going down. We are having good results in our Costa Pinto plant. The plant is running better than last year. It's running with lower costs, with less enzymes. Now we are very anxious, of course, for the next month, that we will start Bonfim plant, the second one, much larger one. I think for, for me, the market hasn't changed. It's still very high margins. The good news, Luis, is that we are seeing our production going in a very good direction, especially costs is also going down. Argentina, you're right, we had a, it's still very risky scenario. We are seeing the devaluation by now, the most important piece of the equation now in Argentina is to pass through prices. Of course, that's what we're trying to do as much as we can. It's still very good volumes, still very good margins, you are right, there is risks here involved, especially going through the elections, we have seen the, the, the three potential candidates very close to each other. It seems that we're going to have Until November, nothing is decided, there's still risk ahead of us. We are better than, than we anticipated initially, the results are a little bit better. Paraguay is doing great also, both on volumes and margins. We are still confident there is nothing here that changed the course. We already made our business plan in our guidance, putting some downside of the potential devaluation of the currency in Argentina, so it's already embedded in our guidance. Okay, very clear. Thank you. Thank you very much. Our next question comes from Thiago Duarte, from BTG. Mr. Duarte, the floor is yours. Yeah, thank you. Hello, everybody. Mussa, Carlos, Felipe, and everybody else. Yeah, two questions on my side. I'll start with the sugar and ethanol segment. You know, there was this very nice improvement in overall yields. I see that you're changing a little bit the tone of the guidance, putting 80 million tons of cane this year as a minimum. Feels like more confident that you're going to be able to deliver above that mark. I sense a little bit of a disappointment in terms of the cost dilution, which didn't show up as strongly, at least as we were expecting in the quarter. You're mentioning the earnings release, the carryover from last year inventories, which obviously are coming with higher cost. Obviously, the delayed start to the crop probably didn't help much for you to get the full operational leverage that you could have got in the quarter. Other than these elements, my question is really whether there were other elements that could explain the lack of significant operational leverage? Looking forward, as you think, and since you guys are reiterating the guidance, if you could at this point, come out with a figure, how much in terms of unitary cost you expect to see a deflation this year, in the next quarters, for the balance of the crop year? That would be great to hear. The second question, and going back to the, you know, a little bit to the previous discussion on, on, on fuel, and the, and the sourcing and origination of fuel in Brazil, along with Petrobras' decision to hike prices this morning. It, it looks like, you know, you guys didn't participate much in this import, cheap import, especially from Russia, in the quarter and since the beginning of the year. If you could talk a little bit about, you know, assuming that these cheap imports become viable again, whether the company will be ready? to, to tackle the, these volumes or in an opportunistic way, I presume, or, or we should, we should assume that, you know, the, the, the company will continue to stick with Petrobras in a more, in a more consistent way, as the main source of fuel, and even though this, this might harm market share, like we saw in the past few months. If you could, I think, Mussa, elaborate a little bit more on how we should think about sourcing going forward. Thank you. Thank you, Thiago. I think for both your questions, on the first one, it's just a carryover. If you look into we have enough cane, Thiago, today, on the field to 83 million-85 million tons. The only reason we are putting 80, because there is the risk of not being able to harvest everything. Of course, we are very confident. The quality of the sugarcane, we are getting fantastic results. If you look into, into our July numbers, we have record crushing, record mix, it's really in a very good position. You see on the next quarters, the, this effect, the cost dilution coming. If you look into the, how much we have done, the same volume of last year with less than 20% of the acreage that we had last year. You are going to see a lot of that coming into our numbers once the products are sold throughout the next three quarters. I have zero doubt that this will happen. There is nothing here different. We are seeing a cost of fertilizer the same level that we had on 2019, so going down. We still a good momentum, Thiago. I think it's just a matter of the time. Of course, there is still the risk of El Niño, so we don't know how much harvesting days we have ahead of us. Very strong production on the field, very good mix. We still some sugar to hedge by the end of the year. Now with this price increase that we have seen on the gasoline prices, we see some recovery now on the ethanol price moving ahead. It's a good, very good setup for the next quarter, you are going to see that on the numbers. Our strategy, of course, when we, we're talking about the fuels business with Petrobras, we did our best to protect the quota that we had with Petrobras. We see Petrobras being not aggressive, but one to keep their clients in a competitiveness way. Of course, It, it's new. It's something that we are still adapting, I don't think we did a fantastic job on the Q1 of the year. We are improving now, but I, I still believe we have the best team in place to tackle the strategy here, to have the best molecule. It's a very, a very good question, Thiago. It depends how much we are going to see the import parity open or not. We're still very close to Petrobras. That was our first idea, but we always be seeking the, the, the most competitive molecule moving ahead. We are learning here with this new pricing policy that they have, and I think we, we figured it out now how to move ahead. Of course, we don't, we don't share much, Thiago, on how is our strategy moving ahead. What I can guarantee to you, we are going to be always very competitive in protecting our branded service stations as we did. You can see that we, we keep them. We, we gain market share on the branded one. We still grow in the branded service stations. We did a terrific job on increasing the new contracts, and that's where we rely on. We saw already a very good change on this second quarter on the our margins behavior, so we should be much better positioned on the next months. Mussa, if you allow me just to make a compliment about the first question of Thiago. Good morning, Thiago, and all. Just to highlight to you the information that we presented at our release, considering the agriculture production cost, on page eight of the release, that we increased the cost 3.4% year-over-year. Was a very good performance. If you take into consideration, that is the, the, the future or the going forward level of increasing costs, and you have at least 9% in the growth of the crushing in this year, at least, you can calculate the effect of minimum dilution that we will have. Obviously, we are working to reduce even more the cost increase over the production side. This is a good proxy to analyze our future performance. Yeah, that's great. Thank you. Our next question is from Mr. Leonardo Alencar, from XPE. Mr. Leonardo, the floor is yours. Good morning, everyone. Thanks for taking my question. I would like to get some more information regarding the sugar strategy. It was interesting to see that with higher prices, you still have some room to improve the hedging position, so you may capture more higher price for sugar this season and the next season. You're also building inventories for sugar, which is something probably we only heard from you guys. I wanted to get a better understanding on what's the strategy here, if we should expect this volume from this quarter to be diluted in the next following quarters, or if you're expecting that to carry to the end of the year, so you can give some more details on that. Talking about the E2G, you mentioned in the release that the new plant is going to be turned on on September. I wanted to hear if there's anything still lacking or if the, the launch is already ready for that. If you can expect, how much of the, the production or the, the, the EBITDA from this operation to come on this season, 2022-2024. The, the pace of ramp-up of the E2G- E-2G. Just to get a, a better understanding on, on the pace of this, this new factory coming, coming online now. That's it. Thank you. No, thank you, Leonardo. I think the, the, the sugar strategy here, of course, when you start the crop season, you start normally with more ethanol. Beginning of the season is always like this. We had an April that has more rain. It was good for the crop, but bad for the initial type of season. You are going to see our mix improving ahead. We're going to produce more and more sugar. Of course, the concentration of and the deliveries, normally we are still seeing the stock-to-use ratio of sugar very low globally. Brazil is coming with a big crop, but even with that big crop, we are not seeing the stock-to-use ratio to return to a normal level. Of course, El Niño, Leonardo, has not only impact in Brazil, but can also impact hugely India, and this could drive prices up by the end of the crop season. That's why when you do have a storage, as we do, you can take some advantage of carrying some of the product by the end of the season. There might be good moments for you to, to do that carry, not only for our product, but also on the trading side. That's why our strategy here, of course, we are protecting the balance sheet, reducing the risk, but we still see some bullish segments on the prices for sugar moving ahead. That's why we're always looking how to make more money on the sugar. We had a very good year on the trading side last year. This year started very good compared to the last year on our clients moving ahead. We are very confident here, Leonardo, too. To your second point on E2G, it's a commissioning phase now, so more than, I would say, 98-99% of the plant is almost done, so it's really the final touches of the plant. We should start commissioning now in September. We do have a very conservative ramp-up plan, so it's not going to be very material yet this year. We are not sharing that because we have so much demand, we don't want to share much right now how is going to be our production. This is a very important milestone, Leonardo, the startup of this plant. I think a lot of the, I would say, skepticism will go away once we start up, but there is still risk involved. We are very, very confident with the startup of the plant now in September. As I said, these plants are very high CapEx, but of course, very low OpEx and very high margin and cash flow generation. We already seen that on Costa Pinto mill, that is already producing at a lower cost, and we expect this plant to perform better than Costa Pinto in all the senses, for the scale, for the technology that we apply there. Each plant, we are going to see in our guiding, on our modeling here, Leonardo, we are going to see how much each plant is going to deliver on cash flow per year. It's everything there. You can put some numbers and, and, and, and play with that. I think the ramp up, it's between six months and 12 months to reach full potential. Let's see. It's a, it's a new startup, so I don't want to anticipate much right now, but we are very, very confident on the startup next month. Okay. Thanks very much. That was an interesting study on the modeling guide. Thank you for that. Our next question comes from Mr. Bruno Montanari, from Morgan Stanley. Mr. Montanari, the floor is yours. Hi, good afternoon. Thanks for taking my questions. I have one question and then one follow-up. Talking a little bit about the ethanol inventories. Clearly, you made the very right decision to hold on to inventories, as now prices are likely to increase substantially. How should we think about the destocking of your ethanol production now? Should we expect this to be sold more aggressively in the current quarter, or is the idea to distribute them better throughout the rest of the crop year? Then the follow-up is on E2G. Mussa, I get the comment that the costs are coming down, which is very good news, but can you give us an idea of where you stand versus... I believe the range of margin the company was talking about was 50% EBITDA margin. Are you there yet in Costa Pinto? Those will be the two questions. Thank you very much. Great question, Bruno. Regarding ethanol, of course, we cannot share the strategy on how, where we are going to when and we are going to commercialize the ethanol. We are very focused on the export segment, of course, and we see opportunities here in Brazil. Normally, normally, it was for me, what I was glad here, Bruno, when the behavior of Petrobras was following international, despite the fact it's less, I would say, frequent, it was a very important statement to us to be able to believe or reassure our strategy here. We are more confident on the strategy that we have. If you look today, the parity price of ethanol at the pump is around 62%, so consumption in Brazil is increasing right now because ethanol is more competitive than, than, than gasoline in, in at least in the mo- the, the most important states that consume ethanol. This price increase should, of course, drive prices up. I don't know if it's yet the best moment to commercialize, that's up to my trading desk to decide. It's difficult to say right now, Bruno. Even if we knew, we wouldn't share, but normally, we, we, we do that, we have highest prices on the last quarter. That, that has been, if the historical, historically, that, that has been happening. We don't know. Normally, it depends on a daily basis. Regarding E2G, we've not changed the margins to the same. I think where we are more confident is on the bagasse, is the quality and the cost of getting more bagasse into the plant. The tests are phenomenal, so we've been able to reduce the logistics to get more bagasse available into the plant, and this reduce considerably the cost. The second one is the enzyme production in Brazil. We are working hard to bring that. That's not in our numbers today, and I'm very confident that we are going to have local production in Brazil that will reduce cost for not for those initial plants, but for the future plants. The numbers are better than we had, Bruno. I would stick. Of course, we have to wait a little bit more to see how this second plant will perform. Still risks involved on its startup. From what we're seeing on Costa Pinto, there was not a single year that the cost didn't went down, and not a single year that the productivity went up. When you start having. I'll give one example, Bruno. On the Costa Pinto right now, we didn't have spare parts on the equipments. Now we do. Even how much available time you have on the plant is better now because we have spare parts. Once you have two, three, four plants, it's even easier to do all that. I think we build this business plan in a very conservative way, the ramp up, the cost. I see more potential upsides than downsides. But we have to be careful, and let's see how Bonfim performs next quarter, and then we can share more information, Bruno. Good news. Thanks a lot. Our next question comes from Lucas Ferreira, from JP Morgan. Mr. Ferreira, the floor is yours. Hi, everyone. good afternoon. I have two follow-up questions. The first one on, on the ethanol price hike, announcement and the discussions. I had the feeling that this would be a much less relevant discussion for you because of your export strategy, and since we're seeing oil prices on a much better level now, even currency. My question is, if you don't have and since the ethanol prices are up 16%, but from a very low level, if you still don't have a much better sourcing... or actually, but much better, you know, price prices in the international market, than even after these increases in Brazil? The second question is regarding marketing and services and the discussion on the Petrobras quota, and wondering, I don't know if you can share that, Luca, but how much of your sourcing is from Petrobras today out of the total? If any idea that how much this, in theory, could be growing in the future. Also asking because of the working capital effects that this has in your numbers, right? Thank you. No, thank you, Lucas. On the ethanol price hike, I think it's, it's always when you have such low level that we're seeing in before, my major concern was not only the low level, was if we don't see the follow of the gasoline prices moving. I think the best was not the total amount of increase, Lucas, was the direction. It's showing that a local player in Brazil, important player like Petrobras, is following international market. That was, for me, the good news. That gives confidence that you look into the even in the instruments that you had, you have for hedging, for to do prox hedge, it gives you confidence that you can do that. Even when you engage with a client, the sources, the alternative they have, it's are different, it helps overall the margin. Still, the international prices are better, of course, you're going to still see ourselves very focused on the international, and more than that, on the specialties that we have, that we have in our program. That doesn't change. The overall scenario helps. We were concerned that this would imply into a change on the pricing policy. That's why we're more, but we have he reiterated the guidance, even without that, I think this is a positive one from we had a pre- last week, right? On Petrobras quota, we don't share that. It's a very sensitive information on our side. We have a very good logistics, our infrastructure to import, especially on the north, northeast of Brazil. We still see that being important, so we need to be competitive on, on importing in that region. Of course, we have seen and we believe that being close to Petrobras, it's, it's very important. I still think we did the right thing when we protected the quota on the, on between April to June, but it cost us a little bit when you look right now. I think it was the right thing moving ahead. I think Petrobras is a great partner. We need to be close to them, and we will not change that. Having said that, we also have a very good logistics and infrastructure to, to import. We need to be competitive to, to our base, and we see all that as, at least these changes on Petrobras, we are learning as we go. I think we, we, we figured out now how, how these next quarters will be, and we are going to plan accordingly. We, we won't be able to share much on our strategy for the next few months. We have a lot of discussion internally how to do that, and I'm very confident, as I said before, Lucas. Perfect. Thank you, Mussa. Our next question comes from Mr. Gabriel Barra from Citibank. Mr. Barra, the floor is yours. Hey, Mussa, Carlos, Casali. Thanks for taking my questions. I have two. One regarding the tax credit. Remember back to the company Investor Day, we have talked a lot about the strong tax credit the company has today. We have mentioned the presentation, something close to R$ 13 billion in credit that could be monetized in the future. My question here is regarding the timeline of this monetization. We have seen something close to R$ 1 billion this quarter, and my question is regarding the timeline, and if you could imagine a pace close to this R$ 1 billion per quarter, if it makes sense or not, if you could give us some color that could help us here to understand this cash generation for the next quarters. The second one, it's more a follow-up than a, than a new question here. It's regarding the E2G. What's the touch base here regarding the, the, the opportunities here in the E2G, taking account that you have a new plant coming online in the, in, in the next one, two months, September. My point here is regarding, have talked about the cost cutting, maybe CapEx optimization, leverage this operation. One thing that I remember and have discussed during the Investor Day regarding anticipation of the receivables, so if you have any discussion on that, what you think about that, if you are waiting for this new plan to start this process or not. This could be something that I, I would like to understand here. The second part is regarding, I remember back to the, to the IPO, the opportunities that you have, not only E2G, but we, we, we have discussed the opportunities in biogas and pellets, for example. If you could give us more color on mainly on the biogas, what you see in terms of opportunities for the biogas, if it's more linked with E2G, given the various supply and et cetera. If you could give us more, more color on that, it could also here help us to, to understand that is. Those, those are my two points. Thanks for the questions. No, thank you. Thank you, Gabriel. I'll let Carlos answer the tax credit and also anticipate anticipation of E2G. Very important questions. I'll, I'll tackle after him the E2G opportunities and the biogas one. Please, Carlos, if you could go. Okay. Okay, Mussa. Good morning, Gabriel. It's a pleasure to talk with you. If you analyze the note number eight of the financial statements, you're gonna see under consolidated basis, the space of R$ 1.1 billion in this quarter, mostly driven by the PIS/COFINS. That's the main source of compensation, because you can offset this tax with all other federal taxes. This will continue to improve going forward, especially with this new momentum of prices and commercialization in the market. We are continued to seek opportunities in the state VAT or ICMS, even in reimbursement basis or compensation, and this will probably accelerate it. In Argentina, IVA, we will continue to have this drive of our level of compensation because we formed this tax shield due to the imports of fuels last year during the turnaround of the refinery. It's reasonable to assume the space of BRL 1 billion going forward, naturally with some variation, but I think that will be reasonable, mostly driven, again, by the PIS/COFINS. Mussa, please. Thank you, Carlos. Here on the, on the biogas, Gabriel, what we are, of course, we, we have approved, we already sold the second plant. We are building that plant as we speak. If you look into the Bonfim plant, that the first biogas one that we had, Gabriel, we were really focused on, on electricity, on energy, and we concluded that's not the best case. We are looking the opposite now. All the biogas that we produce, we have some solutions for that. We have, from the 35 bioenergy parks that we have, only six of them are close enough to build pipelines to connect to Gas Brasiliano or Comgás. That's exactly what's happening right now with the Costa Pinto mill, that's going to receive the second plant of biogas. For us, those six plants will happen, that we are going to be the connection. The point that we are analyzing right now, what's the best use of the biogas moving forward? Clearly, it's not electricity. Something that is really caught, caught our attention is fertilizer, 'cause you can produce fertilizer using biogas. We had such good, I would say, studies on the best use of the biogas, that we decided we have to slow down a little bit the construction of the biogas plants, understand what's the highest value proposition for the product. Because if we can replace, I give an example, the fertilizer in our production using biogas, Gabriel, you reduce the carbon intensity of your ethanol, ethanol E2, also the E2G, and then you can have much higher premiums already on the contract. It's a double effect. You have a reduction in your costs, the demand is yours. This is what caught our attention. We are spending more time and investing more money now on understanding the best alternative for biogas. That is going to happen, it's going to happen. We don't know if the final use is going to be for replacing diesel in our fleet or... it hasn't changed. I think we are slowing down the investments as we had initially foreseen to understand what's the best use. That's why I say we're going to have the second plant now up and running shortly. The plant in Bonfim is also profitable one. We are making money on the contract that we sold on energy, and the results are great, especially on the lagoon. The performance is great. That's as much as I can share now. On the pellet one, we, we put that on hold. We don't see that as the, the best use of the biogas, of the biomass right now. E2G is much more important, much more relevant, and pellets would compete with, with E2G right now. Even with good prices of pellets that we're seeing from Europe today, we decided to, to focus on E2G and, and, and make all the bagasse move into E2G instead of pellets. Thanks, Mussa. Very clear. If I may, follow up here really, really fast here, to Carlos regarding the question about the credit monetization. There is any opportunity here to anticipate this amount in the short term, and do you see any risk regarding the tax reform, for this tax credit monetization? Gabriel, I don't see any major risks because the tax reform is setting a period of future compensation from the parties involved, and this is expected for from 2026 on. At this moment, we are working to speed up the compensation, taking advantage of the higher generation of revenues and profits going forward. Naturally, using this tax shield as much as possible until the enforcement of the new legislation. There is a lot to be fulfilled in this process in the Congress. We do not believe that will, will be changed in the very short term. At this moment, our attention and concentration is, one, to speeding up this compensation in compliance with the tax regulation. Second, to understand the probable outcomes from the tax reform. Thanks, Carlos. Our next question comes from Mrs. Isabella Simonato from Bank of America. Mrs. Simonato, the floor is yours. Thank you. Hi, Mussa. Hi, Carlos. Thank you for the call. My question, my questions are on ethanol. I mean, if you have more color on ethanol demand, and what's your views for the rest of the year. I mean, we saw that ethanol lost a lot of share on the auto cycle once gasoline prices came down and are trading below the parity. I wonder if you have views that this parity could close throughout the next quarters, and what's the general view for fuel demand going forward? Also, attached to that, if the increase on the blend right is approved, what sort of real impact do you anticipate for demand in general? Thank you. Great, Isabella, thank you. The, of course, it's more recent. If you, if you look into our data here, it's showing a recovery on the ethanol demand on the past three weeks. But it was really down compared to last year. I think the, the parity is making it, its job on the, on the, on, on helping the demand come back. It's a matter of price, Isabella. If we're looking right now, the parity at 62%, as we are seeing, demand will pick up, and we're expecting that to happen. I think it worked. In the end of the day, that's the beauty of the system. When you have more supply and the demand, price, comes in and make, it work. That's what we're seeing right now, and it's normal. That's the... That has been a normal year. The other year, last year was not normal year. Normal year, you have much lower prices during the season and much higher prices during the off-season. Looks like this year is going to be exactly this. That's why you're going to see our inventory of ethanol higher from this part of the year, lower by the end of the year. That, I think will happen here, Isabella. I think the between moving from 27-30% is still. We are confident this is going to happen at some point in time, and it didn't happen yet. If it happens, we have enough volume, Brazil has enough volume to supply that. Of course, in the end, Isabella, the hydrous ethanol will be the, the doing the balance between how much is going to anhydrous. So we do have a lot of availability to convert hydrous into anhydrous and move to 30%. There is no risk on doing that. I think just follow up, it's also good as a producer to have more demand. That's what the 30% will bring to the table. For us, Isabella, as I answered to Lucas, we still more focused on the export segment and specialties. That's why you are, even during the crop seasons, your premiums higher than, than the market. This should only increase the gap moving forward. We expect having higher premiums moving ahead. In our case, in particular, Isabella, we are trying to squeeze as much sugar as we can, reducing the ethanol production right now, but sugar is paying much more, even compared to export segment. We have had a very good month of July on the mix, and I think it's going to be the same now in August. The weather is helping, and now our equipments are helping. The mix might be also an upside compared to what we had initially planned. Perfect. Thank you, Mussa. Our next question comes from Mr. Régis Cardoso from Credit Suisse. Mr. Cardoso, the floor is yours. Thank you. Good afternoon, Mussa, Carlos, Casali. Thanks for, for taking my question. A couple of points, I think all of them quite, quite objective and, and, and quick. One of them is regarding the Russian diesel imports. Whether you, you still think this is relevant at current oil prices, whether you think price cap on Russian diesel, you know, at current oil prices, have put that supply out of the market, it's not available to Brazil anymore. Whether you, you know, can share any sort of discounts you used to see in the diesel imports relative to the Gulf. Anyways, anything you could share about the, you know, the Russian diesel and how it, it affected the competitive dynamics, would, would appreciate it. Second topic, quick follow-up on the Bonfim plant ramp up. If you can, you know, maybe share some of the parameters so we can calibrate our expectations for the upcoming quarter. What do you think would be? You, you talked a little bit about volume ramp up in terms of timing. If you could also comment about pricing and as well as, as margins, because I believe the latter contracts you've made, had higher prices than the first few contracts. Maybe, you know, the Bonfim plant is producing more for the initial contracts than for the latter contracts. Wanted to get a sense on, on pricing for that uncertain as well. Another one is just on Argentina, elections in general. Whether you see any, you know, how do you see FX flow restrictions currently in Argentina? Does it make sense to, you know, take new money into Argentina? Would it be a positive if they change to, you know, maybe a different way to manage FX? Then just lastly, I think a very specific one, maybe for Carlos. On the corporate elimination segment, if we exclude the tax credit, it was a negative EBITDA. Maybe if you can just explain, you know, what's in that line and whether that is recurring. Thank you. Oh, thank you, Régis. Let's, I'll give you of course we, we don't share much on our strategy of supply. Just to give you some insights of the imports of Russian diesel in Brazil, I think Brazil is still an outlet for Russian diesel. It's more complex compared to bringing from the Gulf, the, the ships are larger, it's riskier, you need to have a compliance. It's, it's much more complex to compare. It always what we have seen in our market intelligence here, is that by February this year, when Europe started really to, and, and US, to impose the, the sanctions to the Russian diesel, it tried to find outlets, and Brazil was an outlet. Of course, it will only go into outlets that pays more. Other countries like India, China, or even Middle East and Africa, are also competing for that. It always depends. It's a very difficult market to follow, Regis. In general, it's more complex, but complex doesn't mean it's bad, because we also, a company that has very good reading, understanding, very good logistics, so it might have some opportunities, having said that. That's as much as I can share. I still see Brazil as an outlet for Russian diesel, so I don't think it will reduce. I think a lot of companies lost money with that, especially in July and now in August. I think it will make some of the trading companies more careful about Russian diesel, because what happened now could happen in the future. Maybe they have- they will ask for higher margins to do all that. Let's see how this evolve. It's still, I think, Brazil, an outlook for, for that. Your second question was the ramp up of Bonfim. We, we- of course, there are a lot of sensitive information on that, too, especially on the contracts that we have, because we have obligations on the contracts, so we don't share much. High numbers here, Regis, we should get Bonfim to between 60 million-70 million liters ne- next year. That's the plan. As much as we speed up the ramp up of the plant, there is considerable increase in our returns. One thing that not many people look into is that the spot market of E2G pays much higher premiums than our contracts. As much as we can produce more, even in Costa Pinto or Bonfim, the spot market price is today delivering much higher returns that could boost our returns. That's as much as we can share right now, Regis. Of course, the, the modeling on the guide, the guiding modeling, we will help you with more information that are not sensitive. That's as much as I can share. To Argentina, your, your third question on FX, this is it's a risk that is still there. Argentina is struggling right now. I think I was concerned, that's my personal view, when I saw the elections, the primaries in Argentina, and the three candidates very close to each other. I was not expecting a devaluation of the currency right now, because in my view, I was expecting more of the current government try to keep lower inflation, very high in Argentina right now. It was a good indication, because it, it helps to reduce the gap. If we manage, and that's something to follow very closely here, Regis, if we manage to pass through prices, those devaluations, like we had this 22%, 21%, that we're seeing right now, and this is going to reduce the gap of a max devaluation that might happen in the future and makes our- protect our margins moving forward. That's the- all the, the efforts right now, is to be able to press through, this devaluation, and this will dictate the, the risk moving forward. I was expecting this to happen closer to the elections, so this is a good test, Regis. I think the next few weeks, it's something to follow up, how is the price in Argentina happening. This will be a very good indication. I'll leave Carlos to answer the last one. Carlos, please. Thank you, Mussa. Morning, Regis. Regarding the corporate, we had an effect of R$ 350 losses in this quarter, mostly driven of the unrealized profit over the inventories, especially between Raízen Energia and Raízen Trading due to the inventory positioning of ethanol. This positioning has been created during this year with a different level of foreign exchange. Mostly, the effect of the foreign exchange is causing, when you revert the unrealized profit, this affecting the balance sheet. We have also the reclassification of Grupo Nós equity, that reached about R$ 55 million. Other elements, including the expenditures with our financial services unit, that we reached something about R$ 25 million- 30 million. Going forward, we expect a neutralization of this effect of the unrealized profit. As usual, this will be compensated when we have the commercialization. The other elements, according to the evolution of our results, we will disclose properly the effects in the corporate. We didn't have any change in our criteria to recognize effects in this segment. As is Felipe here, just as a disclosure on page 23 on the earnings release, there's also more information about everything that Carlos just mentioned here, okay? This will be, of course, disclosed over the next few quarters. To conclude the call before I pass to the operator here, we have one last question coming from the audience here through writing. I'll probably address that to Mussa. Could you elaborate on investments to improve product quality and reduce sulfur emissions at the refinery in Argentina? He mentioned here estimated amount of R$ 150 million per year, is that going to increase the capacity of the refinery operation? The question come from Pablo Gonzalez. Sorry. Thank you. Thank you, Pablo, for the question. If you look into, the majority of the investment was done last year. We have the bottleneck, and yes, so we have increased. If you look into last year, Pablo, even though we had the turnaround of the plant, we have produced more, we have processed more barrels than the previous year. We have a better capacity now than we had before. You can, in the guiding model, we're going to see how much the capacity, but it, it has increased. We still some pending investments there. The majority has been done already, but still this year, some final investments that we have to, and then the plant is done, and we're going to be substantially reduce the investments on the refinery in Argentina. This has been a very important turnaround once every 30 years, and now it's done, and the majority of that, the final pieces are on this year. We're going to have a better quality product and higher capacity to the plant, and the demand is still going up in Argentina. Record volumes this year again. It's of course, the risk in Argentina is really the political risk, the macro scenario. Other than that, margins are good, our network is fantastic, and the refinery turnaround has pretty much been concluded. It's still the final stages this year. The Q&A session is over. We would like to hand the floor back to Mr. Ricardo Mussa for his final remarks. Well, thank you, everyone, for, for the call. As we made the statement here, it was very tough quarter, especially on mobility. Structurally, we did great achievements on the productivity, better than, than we had on the plan. E2G is right on track to deliver, so the plant is right next door now to start up. We were not happy with the mobility results, focusing a lot on the cost side, reducing costs, and focusing much on the supply side to make sure we have the best molecule to our network. We took the stand here to protect the branded science, protect it. That's not going to change. We are going ahead at the same pace that we had before. More important here, we are reiterating the guidance for the year. Of course, different lines and different risks that lies ahead of us, but we are very confident, especially now, what we have seen in July and August, we are confident we are going to deliver. Let's focus now, guys. Now it's time to deliver, time to work. But thank you, thank you for the call, and see you in three months. The Raízen SA Q1 of 2023, 2024 crop year conference call is concluded. The Investor Relations department is available to answer further questions you may have. Thank you, and have a good afternoon.