Financial Performance - Cosan's EBITDA under management reached R$ 60 billion, a decrease from R$ 73 billion in 2Q24[6] - Dividends and Interest on Capital Received amounted to R$ 06 billion, down from R$ 21 billion in 2Q24[6] - Net Debt remained stable at R$ 175 billion, consistent with 1Q25[6] - Net Income was R$ (09) billion, compared to R$ (02) billion in 2Q24[6] Operational Highlights - Rumo experienced higher transported volume, reaching 218 billion RTK, a 4% increase[12] and increased EBITDA (+6%)[12] - Compass saw growth in distributed volume (+9%)[12] - Moove experienced lower EBITDA (-12%) due to a reduction in lubricant volumes sold (-13%)[12] - Raízen experienced a reduction in EBITDA (-23%), lower crushing in ESB offset by better performance of Fuel Distribution Brazil[13] Sugarcane crushing was 25 million tons, a 21% decrease[13] - Radar's portfolio land value is R$ 168 billion, with Cosan's stake at R$ 52 billion[13] Liability Management - Cosan Corporate's Net Debt was R$ 175 billion in 2Q25[15] - The Debt Service Coverage Ratio (DSCR) was 12x LTM[6, 15] - The average cost of debt is 088%[17]

[Filing Information](index=1&type=section&id=Filing%20Information) [SEC Filing Details](index=1&type=section&id=SEC%20Filing%20Details) This document is a Form 6-K report filed by COSAN S.A. with the United States Securities and Exchange Commission for the month of August 2025 - COSAN S.A. filed a Form 6-K report for August 2025[1](index=1&type=chunk) - The company files annual reports under Form 20-F[2](index=2&type=chunk) - The Form 6-K is submitted electronically[3](index=3&type=chunk) [Table of Contents](index=3&type=section&id=Table%20of%20Contents) [Report Structure](index=3&type=section&id=Report%20Structure) The report includes an independent auditor's report, interim financial statements, and detailed notes covering operational context, relevant events, accounting policies, and financial results - The report is structured with an independent auditor's report, interim financial statements, and 18 detailed explanatory notes[7](index=7&type=chunk) - Financial statements include the interim statement of financial position, profit or loss, other comprehensive income, changes in equity, cash flows, and value added[7](index=7&type=chunk) - Notes cover operational context, relevant events, accounting policies, segment information, financial assets and liabilities, investments, property, plant and equipment, income taxes, legal provisions, shareholders' equity, earnings per share, net sales, costs, other income/expenses, financial results, share-based payment, and subsequent events[7](index=7&type=chunk) [Independent Auditor's Report](index=4&type=section&id=Independent%20auditor's%20report%20on%20the%20Condensed%20interim%20individual%20and%20consolidated%20financial%20statements) [Introduction](index=4&type=section&id=Introduction) PricewaterhouseCoopers Auditores Independentes Ltda. reviewed Cosan S.A.'s interim financial statements as of June 30, 2025, with management responsible for their preparation in accordance with CPC 21 and IAS 34 - PricewaterhouseCoopers Auditores Independentes Ltda. conducted a review of Cosan S.A.'s interim financial statements for the period ended June 30, 2025[9](index=9&type=chunk) - Management is responsible for preparing the financial statements in accordance with CPC 21 and IAS 34[10](index=10&type=chunk) [Scope of Review](index=4&type=section&id=Scope%20of%20review) The review, conducted under Brazilian and International Standards, involved inquiries and analytical procedures, providing less assurance than an audit - The review followed Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 and ISRE 2410)[11](index=11&type=chunk) - The scope of a review is substantially less than an audit, and therefore, an audit opinion is not expressed[11](index=11&type=chunk) [Conclusion](index=4&type=section&id=Conclusion) The auditors found no material issues suggesting non-compliance with CPC 21 and IAS 34 in the interim financial statements, and value added statements were properly prepared - The auditors concluded that the financial statements are prepared, in all material respects, in accordance with CPC 21 and IAS 34[12](index=12&type=chunk) - The statements of value added were also properly prepared in accordance with CPC 09 and consistent with the condensed interim financial statements[13](index=13&type=chunk) [Audit and Review of Previous Year's Figures](index=5&type=section&id=Audit%20and%20review%20of%20previous%20year's%20figures) Comparative figures for June 30, 2024, and December 31, 2024, were reviewed or audited by other independent auditors who issued unqualified reports - Comparative financial information for June 30, 2024, and December 31, 2024, was included for comparison[14](index=14&type=chunk) - Previous year's figures were reviewed or audited by other independent auditors, who issued unqualified reports[14](index=14&type=chunk) [Interim Financial Statements](index=6&type=section&id=Interim%20Financial%20Statements) [Interim Statement of Financial Position](index=6&type=section&id=Interim%20statement%20of%20financial%20position) As of June 30, 2025, Cosan S.A. reported decreases in total consolidated assets, liabilities, and shareholders' equity compared to December 31, 2024 Consolidated Financial Position (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---| | Total Assets | 126,036,274 | 141,265,902 | (15,229,628) | -10.78% | | Total Liabilities | 92,931,858 | 101,867,540 | (8,935,682) | -8.77% | | Total Shareholders' Equity | 33,104,416 | 39,398,362 | (6,293,946) | -15.97% | Key Consolidated Assets (June 30, 2025 vs. December 31, 2024) | Asset Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Cash and cash equivalents | 13,527,889 | 16,903,542 | (3,375,653) | -19.97% | | Marketable securities | 3,048,586 | 3,386,301 | (337,715) | -9.97% | | Investment in subsidiaries and associates | 1,638,515 | 10,678,566 | (9,040,051) | -84.65% | | Investment in joint ventures | 8,960,090 | 10,545,044 | (1,584,954) | -15.03% | | Property, plant and equipment | 24,367,923 | 23,019,016 | 1,348,907 | 5.86% | | Intangible assets and goodwill | 26,477,844 | 26,330,785 | 147,059 | 0.56% | Key Consolidated Liabilities (June 30, 2025 vs. December 31, 2024) | Liability Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Loans, borrowings and debentures (Current) | 3,873,610 | 4,403,148 | (529,538) | -12.03% | | Loans, borrowings and debentures (Non-current) | 56,526,653 | 62,052,278 | (5,525,625) | -8.91% | | Derivative financial instruments (Current) | 2,027,992 | 2,504,117 | (476,125) | -19.01% | | Trade payables (Current) | 4,059,315 | 5,168,593 | (1,109,278) | -21.46% | | Related party payables (Current) | 377,952 | 416,410 | (38,458) | -9.23% | [Interim Statement of Profit or Loss](index=8&type=section&id=Interim%20statement%20of%20profit%20or%20loss) For the six months ended June 30, 2025, Cosan S.A. reported a significantly higher consolidated net loss, primarily due to increased net finance results and decreased net sales Consolidated Profit or Loss (Six Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Net sales | 20,140,253 | 20,536,064 | (395,811) | -1.93% | | Gross profit | 6,466,842 | 6,470,023 | (3,181) | -0.05% | | Operating (expenses) income | (1,746,456) | (4,340,851) | 2,594,395 | 59.77% | | Equity in earnings (losses) of investees | (1,868,843) | 1,341,861 | (3,210,704) | -239.28% | | Finance results, net | (3,705,883) | (4,301,132) | 595,249 | 13.84% | | Loss for the period | (2,503,497) | (705,939) | (1,797,558) | -254.65% | | Basic Earnings (loss) per share | R$ (1.47) | R$ (0.22) | R$ (1.25) | -568.18% | Consolidated Profit or Loss (Three Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Net sales | 10,477,652 | 10,694,008 | (216,356) | -2.02% | | Gross profit | 3,596,147 | 3,556,404 | 39,743 | 1.12% | | Operating (expenses) income | (1,009,890) | (3,396,953) | 2,387,063 | 70.27% | | Equity in earnings (losses) of investees | (748,845) | 1,284,345 | (2,033,190) | -158.31% | | Finance results, net | (1,802,887) | (2,521,803) | 718,916 | 28.51% | | Loss for the period | (568,097) | (969,485) | 401,388 | 41.40% | | Basic Earnings (loss) per share | R$ (0.51) | R$ (0.12) | R$ (0.39) | -325.00% | [Interim Statement of Other Comprehensive Income](index=9&type=section&id=Interim%20statement%20of%20other%20comprehensive%20income) For the six months ended June 30, 2025, consolidated total comprehensive loss increased significantly, driven by the period's loss, partially offset by foreign currency translation and cash flow hedge gains Consolidated Other Comprehensive Income (Six Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Loss for the period | (2,503,497) | (705,939) | (1,797,558) | -254.65% | | Foreign currency translation differences | (45,589) | 194,502 | (240,091) | -123.44% | | Gain (loss) on cash flow hedge | 219,360 | (291,759) | 511,119 | 175.12% | | Deferred taxes (reclassified to profit or loss) | (47,573) | 82,049 | (129,622) | -157.98% | | Actuarial gains (losses) with defined benefit plan | 10,148 | (37,619) | 47,767 | 127.00% | | Deferred taxes (not reclassified to profit or loss) | 6,724 | 24,024 | (17,300) | -72.01% | | Total comprehensive loss for the period | (2,390,894) | (704,275) | (1,686,619) | -239.47% | [Interim Statement of Changes in Equity](index=10&type=section&id=Interim%20statement%20of%20changes%20in%20equity) Consolidated total shareholders' equity decreased from January 1 to June 30, 2025, primarily due to the period's loss, dividends, and changes in subsidiary shareholding Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2025) | Metric | Amount (R$ thousands) | |:---|:---|\ | Balance as at January 1, 2025 | 39,398,362 | | Loss for the period | (2,503,497) | | Total comprehensive income (loss) for the period | (2,390,894) | | Own shares acquired | (34,022) | | Dividends | (1,745,209) | | Change of shareholding interest in subsidiary | (2,169,304) | | Balance as at June 30, 2025 | 33,104,416 | - The Company's share capital was reduced by R$649,806 thousand to absorb accumulated losses, as approved at the Annual General Meeting on April 30, 2025[26](index=26&type=chunk)[186](index=186&type=chunk) [Interim Statement of Cash Flows](index=12&type=section&id=Interim%20statement%20of%20cash%20flows) For the six months ended June 30, 2025, operating cash flow decreased, investing activities significantly improved due to asset sales, and financing activities resulted in a larger net outflow Consolidated Cash Flows (Six Months Ended June 30) | Cash Flow Activity | 2025 (R$ thousands) | 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Net cash generated from (used in) operating activities | 5,658,583 | 6,113,859 | (455,276) | -7.45% | | Net cash generated (used in) from investing activities | 4,328,726 | (470,595) | 4,799,321 | 1019.83% | | Net cash (used in) generated from financing activities | (13,108,238) | (3,222,656) | (9,885,582) | -306.74% | | Increase (decrease) in cash and cash equivalents | (3,120,929) | 2,420,608 | (5,541,537) | -228.93% | | Cash and cash equivalents at the end of the period | 13,527,889 | 17,230,061 | (3,702,172) | -21.49% | - Investing activities were significantly boosted by R$8,911,587 thousand in proceeds from the sale of investments in 2025[34](index=34&type=chunk) - Non-cash transactions included the recognition of right-of-use assets of R$348,662 thousand and acquisition of property, plant and equipment and intangible assets with payment in installments of R$610,127 thousand[37](index=37&type=chunk) [Interim Statement of Value Added](index=15&type=section&id=Interim%20statement%20of%20value%20added) For the six months ended June 30, 2025, consolidated gross and net value added increased, with significant rises in taxes, financial expenses, and retained losses Consolidated Statement of Value Added (Six Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Revenue | 23,468,802 | 24,372,207 | (903,405) | -3.71% | | Inputs purchased from third parties | 13,115,786 | 16,698,790 | (3,583,004) | -21.46% | | Gross value added | 10,353,016 | 7,673,417 | 2,679,599 | 34.92% | | Depreciation and amortization | 1,960,208 | 1,833,725 | 126,483 | 6.90% | | Net value added | 8,392,808 | 5,839,692 | 2,553,116 | 43.72% | | Value added to be distributed | 10,867,027 | 8,523,039 | 2,343,988 | 27.50% | | Distribution of value added: | | | | | | Personnel and payroll charges | 1,371,093 | 1,289,541 | 81,552 | 6.32% | | Taxes, fees and contributions | 3,992,894 | 2,231,848 | 1,761,046 | 78.82% | | Financial expenses and rents | 8,006,537 | 5,707,589 | 2,298,948 | 40.28% | | Equity remuneration (Retained losses) | (2,733,936) | (419,282) | (2,314,654) | -552.05% | [Notes to the Condensed Interim Financial Statements](index=16&type=section&id=Notes%20to%20the%20condensed%20interim%20financial%20statements) [1 Operational Context](index=16&type=section&id=1%20Operational%20context) Cosan S.A. is a publicly traded Brazilian company controlled by Mr. Rubens Ometto Silveira Mello, with its Corporate segment managing senior management, corporate teams, equity income, and financial results - Cosan S.A. is a publicly traded company on B3 (CSAN3) and NYSE (CSAN), controlled by Mr. Rubens Ometto Silveira Mello[40](index=40&type=chunk) - Cosan Corporate segment includes senior management, corporate teams, equity income from investments, and financial income from cash and debts of the parent company and intermediate holdings[43](index=43&type=chunk)[80](index=80&type=chunk) [2 Relevant Events of the Period](index=17&type=section&id=2%20Relevant%20events%20of%20the%20period) The period included Moove's acquisition of DIPI Holdings, the merger with Cosan Oito, a partial disposal of Vale S.A. investment, operational changes at Raízen and Moove, and significant debt management activities [2.1 Investments](index=17&type=section&id=2.1%20Investments) Key investment activities included Moove's acquisition of DIPI Holdings, the incorporation of Cosan Oito, and the partial sale of Vale S.A. shares, alongside operational changes at Raízen and a fire incident at Moove - Moove acquired 100% of DIPI Holdings Ltda. for R$329,006 thousand on January 2, 2025[44](index=44&type=chunk) - Cosan S.A. finalized the merger with Cosan Oito S.A. on January 8, 2025[45](index=45&type=chunk) - The Company sold 4.05% of Vale S.A. common shares for R$8,892,802 thousand on January 16, 2025[46](index=46&type=chunk) - A fire at Moove's Ilha do Governador Complex on February 8, 2025, resulted in R$43,793 thousand in asset write-offs and R$55,359 thousand in inventory losses, but R$491,427 thousand in insurance compensation was recognized[49](index=49&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) - Raízen discontinued its Costa Pinto E2G pilot plant and sold the Leme Plant for R$425,000 thousand[47](index=47&type=chunk)[64](index=64&type=chunk) - Rumo's corporate reorganization proposal for Rumo Malha Norte was approved by their respective Boards of Directors[58](index=58&type=chunk) [2.2 New Debts](index=19&type=section&id=2.2%20New%20debts) Cosan S.A. actively managed its debt portfolio through early redemptions, partial repurchases, and new debenture and loan issuances across various segments - Early redemption of R$750,000 thousand in debentures and U.S.$392,000 thousand (R$2,250,825 thousand) of 2027 Bonds[67](index=67&type=chunk)[68](index=68&type=chunk) - Partial repurchases of Bonds 2029, 2030, and 2031, and 5th and 6th issue Debentures[69](index=69&type=chunk) - Early settlement of Loan 4.131 (U.S.$600,000 thousand or R$3,462,660 thousand) and a U.S.$300,000 thousand debenture (R$1,733,640 thousand)[70](index=70&type=chunk) New Debts Issued (Six Months Ended June 30, 2025) | Segment | Modality | Value (R$ thousands) | Maturity | |:---|:---|:---|:---|\ | Cosan Corporate | Debentures | 1,500,000 | 01/27/2029 | | Cosan Corporate | Debentures | 500,000 | 03/27/2030 | | Cosan Corporate | Debentures | 500,000 | 03/27/2032 | | Compass | Debentures | 410,000 | 01/07/2027 | | Compass | Debentures | 800,000 | 01/15/2033 | | Compass | Loan 4.131 | 350,000 | 03/20/2026 | | Compass | Debentures | 1,500,000 | 05/15/2028 | | Rumo | Debentures | 434,949 | 03/28/2037 | | Rumo | Debentures | 1,365,051 | 03/28/2040 | | Moove | Loan 4.131 | 500,000 | 01/18/2028 | [3 Statement of Compliance and Material Accounting Policies](index=20&type=section&id=3%20Statement%20of%20compliance%20and%20material%20accounting%20policies) The condensed interim financial statements comply with CPC 21 (R1) and IAS 34, Brazilian Corporation Law, and CVM rules, applying consistent accounting policies from December 31, 2024 - Condensed interim financial statements comply with CPC 21 (R1), IAS 34, Brazilian Corporation Law, and CVM rules[73](index=73&type=chunk) - The statements should be read in conjunction with the annual consolidated financial statements for December 31, 2024[74](index=74&type=chunk) - The Interim Statement of Value-Added (VAS) is supplementary information, prepared according to CPC 09, and not required by IFRS[75](index=75&type=chunk) - The same accounting policies as of December 31, 2024, were adopted, and balances are rounded to the nearest thousand[76](index=76&type=chunk) [4 Segment Information](index=21&type=section&id=4%20Segment%20information) Cosan's senior management evaluates performance and allocates resources using segment information, with Raízen, Compass, Moove, Rumo, Radar, and Cosan Corporate as reported segments [Reported Segments](index=21&type=section&id=Reported%20segments) Cosan's operating segments encompass diverse activities including ethanol, natural gas, lubricants, rail logistics, and agricultural property management, with Cosan Corporate handling central functions - Raízen operates in ethanol, sugar, bioenergy, and fuel trading/distribution[81](index=81&type=chunk) - Compass focuses on piped natural gas distribution and marketing, and infrastructure projects[81](index=81&type=chunk) - Moove produces and distributes high-performance lubricants, base oils, and specialties[81](index=81&type=chunk) - Rumo provides rail transport, port storage, and loading services for goods[81](index=81&type=chunk) - Radar invests in a diversified portfolio of agricultural properties[81](index=81&type=chunk) - Cosan Corporate handles senior management, corporate teams, equity income, and financial results[80](index=80&type=chunk) [Consolidated Segment Performance (Six Months Ended June 30, 2025)](index=22&type=section&id=Consolidated%20Segment%20Performance%20(Six%20Months%20Ended%20June%2030%2C%202025)) For the six months ended June 30, 2025, consolidated net sales were R$20,140,253 thousand, with a net loss of R$2,503,497 thousand and consolidated EBITDA of R$4,811,751 thousand Consolidated Segment Performance (Six Months Ended June 30, 2025) | Metric | Raízen (R$ thousands) | Compass (R$ thousands) | Moove (R$ thousands) | Rumo (R$ thousands) | Radar (R$ thousands) | Cosan Corporate (R$ thousands) | Consolidated (R$ thousands) | |:---|:---|:---|:---|:---|:---|:---|:---|\ | Net sales | 111,819,950 | 8,544,938 | 4,587,853 | 6,678,143 | 336,414 | 1,455 | 20,140,253 | | Net profit (loss) for the period | (4,369,756) | 773,036 | 374,800 | 236,080 | 265,098 | (3,106,951) | (2,503,497) | | Depreciation and amortization | 4,269,376 | 625,459 | 197,937 | 1,126,851 | 136 | 9,825 | 1,960,208 | | EBITDA | 4,010,294 | 2,512,964 | 737,401 | 3,231,489 | 274,859 | (899,402) | 4,811,751 | | Additions to fixed assets, intangible assets and contract assets | 6,013,224 | 962,311 | 74,418 | 3,159,198 | 6,196 | 8,035 | 4,210,158 | [Consolidated Segment Performance (Six Months Ended June 30, 2024)](index=23&type=section&id=Consolidated%20Segment%20Performance%20(Six%20Months%20Ended%20June%2030%2C%202024)) For the six months ended June 30, 2024, consolidated net sales were R$20,536,064 thousand, with a net loss of R$705,939 thousand and consolidated EBITDA of R$5,304,758 thousand Consolidated Segment Performance (Six Months Ended June 30, 2024) | Metric | Raízen (R$ thousands) | Compass (R$ thousands) | Moove (R$ thousands) | Rumo (R$ thousands) | Radar (R$ thousands) | Cosan Corporate (R$ thousands) | Consolidated (R$ thousands) | |:---|:---|:---|:---|:---|:---|:---|:---|\ | Net sales | 111,416,500 | 8,537,477 | 5,020,553 | 6,720,753 | 289,970 | 13 | 20,536,064 | | Net profit (loss) for the period | 134,604 | 917,407 | 365,304 | (1,374,260) | 203,966 | (161,429) | (705,939) | | Depreciation and amortization | 4,726,588 | 505,251 | 144,648 | 1,175,875 | 137 | 7,814 | 1,833,725 | | EBITDA | 8,590,954 | 2,268,581 | 679,633 | 1,425,314 | 269,494 | 1,318,663 | 5,304,758 | | Additions to fixed assets, intangible assets and contract assets | 7,221,300 | 968,965 | 88,248 | 2,142,876 | 4,795 | 2,489 | 3,207,373 | [Consolidated Segment Financial Position (June 30, 2025 vs. December 31, 2024)](index=25&type=section&id=Consolidated%20Segment%20Financial%20Position%20(June%2030%2C%202025%20vs.%20December%2031%2C%202024)) As of June 30, 2025, consolidated total assets and shareholders' equity decreased, with Raízen and Rumo maintaining the largest asset portions Consolidated Segment Total Assets (June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Raízen | 140,111,569 | 148,285,202 | (8,173,633) | -5.51% | | Compass | 32,391,240 | 34,250,119 | (1,858,879) | -5.43% | | Moove | 9,070,400 | 8,687,957 | 382,443 | 4.40% | | Rumo | 50,595,278 | 50,593,023 | 2,255 | 0.00% | | Radar | 17,549,561 | 17,738,562 | (189,001) | -1.07% | | Cosan Corporate | 33,099,980 | 47,477,028 | (14,377,048) | -30.28% | | Consolidated Total Assets | 126,036,274 | 141,265,902 | (15,229,628) | -10.78% | Consolidated Segment Shareholders' Equity (June 30, 2025 vs. December 31, 2024) | Segment | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Owners of the Company | 7,191,060 | 10,903,764 | (3,712,704) | -34.05% | | Non-controlling interests | 25,913,356 | 28,494,598 | (2,581,242) | -9.06% | | Consolidated Total Shareholders' Equity | 33,104,416 | 39,398,362 | (6,293,946) | -15.97% | [4.1 Net Sales to External Customers by Product/Customer Type](index=27&type=section&id=4.1%20Net%20sales%20to%20external%20customers%20by%20product%2Fcustomer%20type) For the six months ended June 30, 2025, consolidated net sales were R$20,140,253 thousand, with Raízen's Diesel and Gasoline sales, Compass's industrial natural gas, and Rumo's North operations as primary revenue drivers Consolidated Net Sales by Product/Customer Type (Six Months Ended June 30, 2025) | Segment | Product/Customer Type | 2025 (R$ thousands) | |:---|:---|:---|\ | Raízen | Ethanol | 12,113,544 | | Raízen | Sugar | 12,558,124 | | Raízen | Gasoline | 33,159,510 | | Raízen | Diesel | 44,970,902 | | Raízen | Cogeneration | 3,960,716 | | Compass | Natural gas distribution - Industrial | 4,840,976 | | Compass | Natural gas distribution - Residential | 1,202,235 | | Moove | Finished product | 3,857,263 | | Moove | Base oil | 450,836 | | Rumo | North operations | 5,425,681 | | Rumo | South operations | 890,765 | | Radar | Lease and sale of lands | 336,414 | | Total Consolidated Net Sales | | 20,140,253 | [4.2 Information on Geographical Area](index=29&type=section&id=4.2%20Information%20on%20geographical%20area) For the six months ended June 30, 2025, Brazil remained the largest market for consolidated net sales, followed by Europe and the United States of America Consolidated Net Sales by Geographical Area (Six Months Ended June 30) | Geographical Area | 2025 (R$ thousands) | 2024 (R$ thousands) | Change (R$ thousands) | Percentage Change | |:---|:---|:---|:---|:---|\ | Brazil | 17,184,859 | 17,513,444 | (328,585) | -1.88% | | Europe | 1,599,316 | 1,444,184 | 155,132 | 10.74% | | Latin America | 208,808 | 364,598 | (155,790) | -42.73% | | United States of America | 1,124,030 | 1,181,101 | (57,071) | -4.83% | | Asia and other | 23,240 | 32,737 | (9,497) | -29.01% | | Total | 20,140,253 | 20,536,064 | (395,811) | -1.93% | [5 Financial Assets and Liabilities](index=28&type=section&id=5%20Financial%20assets%20and%20liabilities) Cosan's consolidated financial assets and liabilities are primarily held at amortized cost, with the company actively managing market and credit risks while complying with financial covenants [Financial Assets and Liabilities Classification](index=28&type=section&id=Financial%20assets%20and%20liabilities%20classification) As of June 30, 2025, consolidated financial assets totaled R$25,166,853 thousand, primarily at amortized cost, while consolidated financial liabilities amounted to R$79,256,877 thousand, with a significant portion at fair value through profit or loss Consolidated Financial Assets (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Fair value through profit or loss | 6,522,447 | 9,312,566 | | Amortized cost | 18,644,406 | 21,292,906 | | Total | 25,166,853 | 30,605,472 | Consolidated Financial Liabilities (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Amortized cost | (49,755,614) | (56,213,794) | | Fair value through profit or loss | (29,501,263) | (31,764,238) | | Total | (79,256,877) | (87,978,032) | [5.1 Cash and Cash Equivalents](index=30&type=section&id=5.1%20Cash%20and%20cash%20equivalents) Consolidated cash and cash equivalents decreased as of June 30, 2025, with financial investments, mainly in CDB and repurchase agreements, forming the largest component Consolidated Cash and Cash Equivalents (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Cash and bank accounts | 752,602 | 958,738 | | Savings account | 724,139 | 485,393 | | Financial investments | 12,051,148 | 15,459,411 | | Total | 13,527,889 | 16,903,542 | Consolidated Financial Investments Breakdown (June 30, 2025 vs. December 31, 2024) | Investment Type | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Applications in investment funds | 1,308,890 | 2,122,442 | | Applications in banks | 10,742,258 | 13,336,969 | | Total Financial Investments | 12,051,148 | 15,459,411 | [5.2 Loans, Borrowings and Debentures](index=30&type=section&id=5.2%20Loans%2C%20borrowings%20and%20debentures) Consolidated loans, borrowings, and debentures decreased as of June 30, 2025, driven by principal repayments and interest payments, with the company remaining compliant with all covenants Consolidated Loans, Borrowings and Debentures (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Cosan Corporate | 21,446,203 | 29,324,600 | | Compass | 13,998,588 | 14,449,033 | | Moove | 3,723,413 | 3,558,575 | | Rumo | 21,232,059 | 19,123,218 | | Total | 60,400,263 | 66,455,426 | | Current | 3,873,610 | 4,403,148 | | Non-current | 56,526,653 | 62,052,278 | Changes in Consolidated Loans, Borrowings and Debentures (Six Months Ended June 30, 2025) | Activity | Amount (R$ thousands) | |:---|:---|\ | Balance as at January 1, 2025 | 66,455,426 | | Proceeds | 7,914,651 | | Repayment of principal | (13,410,998) | | Payment of interest | (2,360,197) | | Balance as at June 30, 2025 | 60,400,263 | - The Company and its subsidiaries were in compliance with all financial and non-financial restrictive covenants as of June 30, 2025[103](index=103&type=chunk) [5.3 Derivative Financial Instruments](index=32&type=section&id=5.3%20Derivative%20financial%20instruments) Cosan uses derivatives, primarily swaps, for economic hedging of foreign exchange, interest, and inflation risks, employing fair value and cash flow hedge accounting Consolidated Derivative Financial Instruments (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Exchange rate derivatives (Fair value) | (13,806) | 31,488 | | Commodity derivatives (Fair value) | (11,666) | (7,158) | | Foreign exchange and interest rate risk (Fair value) | (235,215) | 1,301,110 | | Share price risk (Fair value) | (225,588) | (996,316) | | Total financial instruments (Fair value) | (486,275) | 329,124 | | Current assets | 161,993 | 905,341 | | Non-current assets | 1,998,415 | 2,893,987 | | Current liabilities | (2,027,992) | (2,504,117) | | Non-current liabilities | (618,691) | (966,087) | - Derivatives are used only for economic hedging purposes, not for speculative investments[106](index=106&type=chunk) - The company adopts fair value hedge accounting for some operations, with a hedge ratio of 1:1 for interest and FX rate swaps[107](index=107&type=chunk)[108](index=108&type=chunk) - Cash flow hedges are used by subsidiaries (TRSP, Rumo) to protect against exchange rate volatility on future cash flows[116](index=116&type=chunk)[117](index=117&type=chunk) [5.4 Related Parties](index=38&type=section&id=5.4%20Related%20parties) As of June 30, 2025, consolidated receivables and payables from related parties primarily stemmed from commercial operations with Raízen S.A. and other entities, encompassing various transaction types Consolidated Related Party Receivables (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Current assets (Commercial operations) | 121,461 | 150,185 | | Current assets (Financial and corporate operations) | 62,600 | 46,878 | | Non-current assets (Commercial operations) | 14,286 | 21,438 | | Non-current assets (Financial operations) | 12,033 | 181,388 | | Total Related Parties Receivables | 210,380 | 399,889 | Consolidated Related Party Payables (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Current liabilities (Commercial operations) | 374,472 | 358,856 | | Current liabilities (Financial and corporate operations) | 3,480 | 57,554 | | Non-current liabilities (Financial operations) | 1,078 | 1,078 | | Total Related Parties Payables | 379,030 | 417,488 | Consolidated Transactions with Related Parties (Six Months Ended June 30, 2025) | Transaction Type | 2025 (R$ thousands) | |:---|:---|\ | Operating income | 354,677 | | Purchase of products / inputs / services | (1,154,140) | | Shared income (expenses) | (109,817) | | Financial result | (97) | | Total | (909,377) | Consolidated Managers' and Directors' Compensation (Six Months Ended June 30) | Compensation Type | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Short-term benefits | 107,148 | 76,461 | | Share-based compensation | 15,840 | 35,502 | | Post-employment benefits | 1,273 | 1,186 | | Others long-term benefits | 971 | 1,800 | | Total | 125,232 | 116,594 | [5.5 Trade Payables](index=42&type=section&id=5.5%20Trade%20payables) Consolidated trade payables decreased as of June 30, 2025, with the majority owed to material and services suppliers, followed by natural gas/transport and logistics suppliers Consolidated Trade Payables (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Material and services suppliers | 3,093,256 | 4,205,516 | | Natural gas / transport and logistics suppliers | 985,822 | 982,333 | | Total | 4,079,078 | 5,187,849 | | Current | 4,059,315 | 5,168,593 | | Non-current | 19,763 | 19,256 | [5.6 Fair Value Measurements](index=43&type=section&id=5.6%20Fair%20value%20measurements) As of June 30, 2025, consolidated assets measured at fair value totaled R$23,255,137 thousand, primarily investment properties and marketable securities, while liabilities totaled R$63,046,946 thousand, mainly loans and debentures Consolidated Assets Measured at Fair Value (June 30, 2025 vs. December 31, 2024) | Asset Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Investment funds | 1,308,890 | 2,122,442 | | Marketable securities | 3,048,586 | 3,386,301 | | Investment properties | 16,732,690 | 16,818,919 | | Derivative financial instruments | 2,160,408 | 3,799,328 | | Total | 23,255,137 | 26,131,485 | Consolidated Liabilities Measured at Fair Value (June 30, 2025 vs. December 31, 2024) | Liability Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Loans, borrowings and debentures | (60,400,263) | (66,455,426) | | Derivative financial instruments | (2,646,683) | (3,470,204) | | Total | (63,046,946) | (69,925,630) | - The fair value of investment properties is determined using the direct comparative method of market data[126](index=126&type=chunk) [5.7 Financial Risk Management](index=44&type=section&id=5.7%20Financial%20risk%20management) Cosan manages foreign exchange, interest rate, and price risks, with a net foreign exchange exposure of (R$721,107) thousand and a significant credit risk exposure primarily from AAA-rated instruments Consolidated Net Foreign Exchange Exposure (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Cash and cash equivalents | 988,052 | 1,861,070 | | Loans, borrowings and debentures | (15,235,539) | (24,263,167) | | Derivative financial instruments (notional) | 16,278,639 | 22,576,441 | | Foreign exchange exposure, net | (721,107) | (2,848,721) | Consolidated Interest Rate Exposure (Probable Scenario, June 30, 2025) | Category | Probable (R$ thousands) | |:---|:---|\ | Cash and cash equivalents | 1,804,948 | | Loans, borrowings and debentures | (4,181,127) | | Derivative financial instruments | (2,973,248) | | Impacts on profit or loss before taxes | (5,626,079) | - The Company has a call option to repurchase preferred shares of Cosan Nove and Cosan Dez, which was out of price as of June 30, 2025[132](index=132&type=chunk) - Total Return Swap (TRS) derivatives were contracted for 106,695,312 shares to mitigate risks linked to Cosan's share price[135](index=135&type=chunk) Consolidated Credit Risk Exposure (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Cash and cash equivalents | 13,527,889 | 16,903,542 | | Trade receivables | 4,118,390 | 3,995,734 | | Marketable securities | 2,823,837 | 3,386,301 | | Derivative financial instruments | 2,160,408 | 3,799,328 | | Total Credit Risk Exposure | 23,098,829 | 28,817,140 | - Most of the credit risk exposure for cash, marketable securities, restricted cash, and derivatives is from instruments rated AAA[138](index=138&type=chunk) [6 Investment in Subsidiaries and Associates](index=47&type=section&id=6%20Investment%20in%20subsidiaries%20and%20associates) Cosan S.A. holds direct and indirect equity interests in numerous subsidiaries and associates, with significant movements including Moove's acquisition of DIPI Holdings and material non-controlling interests in several entities [6.1 Investments in Subsidiaries](index=47&type=section&id=6.1%20Investments%20in%20subsidiaries) Cosan S.A. maintains significant direct and indirect ownership in key subsidiaries, with total parent company investment decreasing primarily due to losses attributable to non-controlling interests and changes in equity Parent Company Ownership Interest in Key Subsidiaries (June 30, 2025) | Subsidiary | Cosan Ownership Interest (%) | |:---|:---|\ | Cosan Nove Participações S.A. | 87.27% | | Cosan Luxembourg S.A. | 100.00% | | Cosan Overseas Limited | 100.00% | | Cosan Dez Participações S.A. | 76.80% | | Moove Lubricants Holdings | 70.00% | | Rumo S.A. | 30.39% | Parent Company Investment in Subsidiaries (January 1, 2025 vs. June 30, 2025) | Metric | January 1, 2025 (R$ thousands) | June 30, 2025 (R$ thousands) | |:---|:---|:---|\ | Total investment in subsidiaries | 31,308,696 | 22,482,118 | - Cosan Luxembourg S.A. had an uncovered liability of R$349,399 thousand as of June 30, 2025, but relies on financial support from the Company[140](index=140&type=chunk)[143](index=143&type=chunk) [6.2 Non-controlling Interest in Subsidiaries](index=51&type=section&id=6.2%20Non-controlling%20interest%20in%20subsidiaries) Non-controlling interests are significant in several of Cosan's subsidiaries, with total consolidated non-controlling interests decreasing due to losses attributable to NCI and dividends paid Non-controlling Interest in Key Subsidiaries (June 30, 2025) | Subsidiary | Non-controlling Interest (%) | |:---|:---|\ | Rumo S.A. | 69.61% | | Janus Brasil Participações S.A. | 80.00% | | Tellus Brasil Participações S.A. | 80.00% | | Moove Lubricants Holdings | 30.00% | | Cosan Nove Participações S.A. | 12.73% | | Cosan Dez Participações S.A. | 23.20% | Consolidated Non-controlling Interests (January 1, 2025 vs. June 30, 2025) | Metric | January 1, 2025 (R$ thousands) | June 30, 2025 (R$ thousands) | |:---|:---|:---|\ | Total Non-controlling Interests | 28,494,598 | 25,913,356 | [6.3 Acquisition of Subsidiaries](index=53&type=section&id=6.3%20Acquisition%20of%20subsidiaries) Moove acquired 100% of DIPI Holding Ltda. (PAX Group) for R$329,006 thousand, recognizing preliminary goodwill and aiming for supply chain synergies and product portfolio expansion - Moove acquired 100% of DIPI Holding Ltda. (PAX Group) for R$329,006 thousand on January 2, 2025[149](index=149&type=chunk) - The net cash effect on consolidated financials from the acquisition was R$213,086 thousand[149](index=149&type=chunk) - Preliminary goodwill of R$236,470 thousand was recognized, representing expected future economic benefits and synergies[152](index=152&type=chunk) - The acquisition aimed to increase supply chain synergies, expand product portfolio, gain packaging market access, and incorporate grease technologies[151](index=151&type=chunk)[154](index=154&type=chunk) - PAX Group contributed R$206,535 thousand in revenues and R$25,521 thousand in net income to the consolidated income statement since acquisition[152](index=152&type=chunk) [7 Investment in Joint Ventures](index=54&type=section&id=7%20Investment%20in%20joint%20ventures) Cosan's parent company and consolidated investments in joint ventures, primarily Raízen S.A., decreased due to interest in losses, despite other comprehensive income gains and dividends received Parent Company Investment in Joint Ventures (January 1, 2025 vs. June 30, 2025) | Metric | January 1, 2025 (R$ thousands) | June 30, 2025 (R$ thousands) | |:---|:---|:---|\ | Raízen S.A. | 1,184,466 | 1,002,956 | | Radar Gestão de Invest. S.A. | 8,606 | 10,787 | | Total | 1,193,072 | 1,013,743 | Consolidated Investment in Joint Ventures (January 1, 2025 vs. June 30, 2025) | Metric | January 1, 2025 (R$ thousands) | June 30, 2025 (R$ thousands) | |:---|:---|:---|\ | Raízen S.A. | 10,495,317 | 8,897,147 | | Terminal Alvorada S.A. | 41,121 | 52,156 | | Radar Gestão de Invest. S.A. | 8,606 | 10,787 | | Total | 10,545,044 | 8,960,090 | - Cosan's total interest in Raízen S.A. is 30.87%, comprising a 5.01% direct interest and a 25.86% indirect interest through Cosan Nove[157](index=157&type=chunk) - The Company was in compliance with the covenants of the joint venture agreement as of June 30, 2025[158](index=158&type=chunk) [8 Property, Plant and Equipment, Intangible Assets and Goodwill, Right-of-Use Assets and Impairment Loss](index=55&type=section&id=8%20Property%2C%20plant%20and%20equipment%2C%20intangible%20assets%20and%20goodwill%2C%20right-of-use%20assets%20and%20impairment%20loss) Consolidated property, plant and equipment and intangible assets increased slightly, while right-of-use assets decreased, and a significant impairment loss was recognized at Rumo Malha Sul S.A. due to extreme weather [8.1 Property, Plant and Equipment](index=55&type=section&id=8.1%20Property%2C%20plant%20and%20equipment) Consolidated property, plant and equipment increased as of June 30, 2025, driven by additions, with permanent railways and wagons/locomotives being the largest components Consolidated Property, Plant and Equipment (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Land, buildings and improvements | 1,877,107 | 1,877,955 | | Machines, equipment and installations | 2,566,747 | 2,628,344 | | Wagons and locomotives | 4,736,913 | 4,225,509 | | Permanent railways | 7,418,997 | 7,103,036 | | Construction in progress | 7,266,706 | 6,665,904 | | Other assets | 501,453 | 518,268 | | Total | 24,367,923 | 23,019,016 | - Additions to consolidated property, plant and equipment totaled R$2,926,778 thousand for the six months ended June 30, 2025[160](index=160&type=chunk) [8.2 Intangible Assets and Goodwill](index=57&type=section&id=8.2%20Intangible%20assets%20and%20goodwill) Consolidated intangible assets and goodwill slightly increased as of June 30, 2025, primarily due to goodwill from business combinations and additions, with concession rights remaining the largest component Consolidated Intangible Assets and Goodwill (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Goodwill | 1,732,913 | 1,585,021 | | Concession right | 22,256,629 | 22,154,805 | | Licenses | 179,898 | 188,344 | | Brands and patents | 182,952 | 186,869 | | Customer relationships | 1,196,936 | 1,342,367 | | Other | 354,153 | 299,016 | | Supply Agreement | 574,363 | 574,363 | | Total | 26,477,844 | 26,330,785 | - Goodwill from business combination of R$236,470 thousand was recognized for the six months ended June 30, 2025[161](index=161&type=chunk) [8.3 Right-of-Use Assets](index=58&type=section&id=8.3%20Right-of-use%20assets) Consolidated right-of-use assets decreased as of June 30, 2025, primarily due to amortization, partially offset by additions, with railway and port infrastructure remaining the largest component Consolidated Right-of-Use Assets (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Land, buildings and improvements | 322,879 | 324,894 | | Machine, equipment, and installations | 365,522 | 379,587 | | Wagons and locomotives | 139,976 | 452,115 | | Railway and port infrastructure | 7,104,159 | 7,144,181 | | Total | 9,583,592 | 9,958,751 | - Additions to consolidated right-of-use assets totaled R$184,081 thousand for the six months ended June 30, 2025[163](index=163&type=chunk) [8.4 Impairment Loss](index=59&type=section&id=8.4%20Impairment%20loss) Rumo Malha Sul S.A. recognized a significant impairment loss due to extensive damage to its railway infrastructure caused by extreme weather events in Rio Grande do Sul - Rumo Malha Sul S.A. recognized an impairment loss of R$683,139 thousand for the six months ended June 30, 2025[165](index=165&type=chunk) - The impairment was due to significant damage to railway infrastructure from extreme weather events in Rio Grande do Sul[164](index=164&type=chunk)[165](index=165&type=chunk) [9 Income Taxes](index=59&type=section&id=9%20Income%20taxes) For the six months ended June 30, 2025, consolidated income tax and social contribution expenses resulted in a net charge, influenced by non-taxable income, unrecognized tax losses, and rate differentials, leading to a net deferred tax liability [9.1 Reconciliation of Income Tax and Social Contribution Expenses](index=59&type=section&id=9.1%20Reconciliation%20of%20income%20tax%20and%20social%20contribution%20expenses) For the six months ended June 30, 2025, consolidated income tax and social contribution expenses significantly increased, resulting in a 193.03% effective tax rate, primarily due to non-taxable income and unrecognized tax losses Consolidated Income Tax and Social Contribution Expenses (Six Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Profit (loss) before taxes | (854,340) | (830,099) | | Income tax and social contribution at nominal rate (34%) | 290,476 | 282,234 | | Adjustments for calculating the effective rate | | | | Interest in earnings of investees (non-taxable income) | (635,407) | 462,593 | | Tax losses not recognized | (1,710,492) | (934,090) | | Income tax and social contribution (current and deferred) | (1,649,157) | 124,160 | | Effective rate - % | 193.03% | (14.96)% | [9.2 Deferred Income Tax Assets and Liabilities](index=60&type=section&id=9.2%20Deferred%20income%20tax%20assets%20and%20liabilities) As of June 30, 2025, consolidated deferred tax assets totaled R$3,488,404 thousand, primarily from income tax losses, while liabilities amounted to R$6,003,008 thousand, mainly from business combination intangible assets, resulting in a net deferred tax liability Consolidated Deferred Tax Assets (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Income taxes losses | 1,759,798 | 1,699,262 | | Negative base of social contribution | 591,696 | 560,110 | | Foreign exchange variation - Loans and borrowings | 1,329,599 | 2,669,489 | | Total Deferred Tax Assets | 3,488,404 | 4,495,296 | Consolidated Deferred Tax Liabilities (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Useful life review | (696,949) | (531,081) | | Tax goodwill | (606,935) | (645,297) | | Business Combination – Intangible assets | (4,978,142) | (4,990,657) | | Total Deferred Tax Liabilities | (6,003,008) | (5,973,506) | | Total deferred, net | (2,514,604) | (1,478,210) | [9.3 Changes in Deferred Tax Assets and Liabilities](index=61&type=section&id=9.3%20Changes%20in%20deferred%20tax%20assets%20and%20liabilities) Consolidated deferred tax assets decreased due to foreign exchange differences and business combinations, partially offset by income for the period, while deferred tax liabilities increased from income for the period Changes in Consolidated Deferred Tax Assets (Six Months Ended June 30, 2025) | Metric | Amount (R$ thousands) | |:---|:---|\ | Balance as at January 1, 2025 | 7,624,513 | | Credited / charged from income for the period | 179,796 | | Foreign exchange differences | (1,339,890) | | Business combination | (38,409) | | Balance as at June 30, 2025 | 6,402,461 | Changes in Consolidated Deferred Tax Liabilities (Six Months Ended June 30, 2025) | Metric | Amount (R$ thousands) | |:---|:---|\ | Balance as at January 1, 2025 | (9,102,723) | | Impact on the result for the period | 185,658 | | Balance as at June 30, 2025 | (8,917,065) | [9.4 Uncertainties about the Treatment of Income Tax](index=62&type=section&id=9.4%20Uncertainties%20about%20the%20treatment%20of%20income%20tax) Cosan is involved in administrative and judicial discussions with Brazilian tax authorities regarding uncertain tax treatments, recognizing effects only when acceptance by the authority is unlikely - The Company is engaged in administrative and judicial discussions with Brazilian tax authorities regarding income tax interpretations[171](index=171&type=chunk) - Effects of uncertainty are recognized only when it is not likely that the tax authority will accept the uncertain tax treatment[172](index=172&type=chunk) - As of June 30, 2025, the total amount under discussion where acceptance is likely was R$7,062,328 thousand for the Consolidated entity[174](index=174&type=chunk) [10 Provision for Legal Proceedings and Judicial Deposits](index=62&type=section&id=10%20Provision%20for%20legal%20proceedings%20and%20judicial%20deposits) Consolidated provisions for legal proceedings remained stable, with significant probable and possible losses from tax, civil, environmental, regulatory, and labor claims, alongside substantial judicial deposits [10.1 Probable Losses and Judicial Deposits](index=62&type=section&id=10.1%20Probable%20losses%20and%20judicial%20deposits) Consolidated provisions for legal proceedings were R$2,044,858 thousand, primarily for civil, environmental, and regulatory claims, while judicial deposits totaled R$1,054,531 thousand, mainly for tax matters Consolidated Provision for Legal Proceedings (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Tax | 639,596 | 745,896 | | Civil, environmental and regulatory | 900,221 | 818,422 | | Labor | 505,041 | 480,315 | | Total | 2,044,858 | 2,044,633 | Consolidated Judicial Deposits (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Tax | 792,916 | 801,723 | | Civil, environmental and regulatory | 142,209 | 134,058 | | Labor | 119,406 | 120,909 | | Total | 1,054,531 | 1,056,690 | - The main tax lawsuits with probable loss include compensation with FINSOCIAL, INSS, ICMS credit, PIS and COFINS, and IPI[178](index=178&type=chunk) [10.2 Possible Losses](index=64&type=section&id=10.2%20Possible%20losses) Consolidated possible losses from lawsuits increased to R$16,073,817 thousand, with tax, civil, environmental, and regulatory claims representing the largest portions Consolidated Possible Losses from Lawsuits (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (R$ thousands) | December 31, 2024 (R$ thousands) | |:---|:---|:---|\ | Tax | 8,147,463 | 8,624,545 | | Civil, environmental and regulatory | 7,203,384 | 6,569,528 | | Labor | 722,970 | 690,535 | | Total | 16,073,817 | 15,884,608 | - Main tax lawsuits with possible loss include isolated fines, ICMS, IRRF, PIS and COFINS, and IPI[182](index=182&type=chunk) - Civil, environmental, and regulatory lawsuits with possible loss include general civil claims, environmental claims, and regulatory matters[183](index=183&type=chunk) [11 Shareholders' Equity](index=65&type=section&id=11%20Shareholders'%20equity) As of June 30, 2025, Cosan S.A. repurchased treasury shares, consolidated dividends payable increased, and the Company's share capital was reduced to absorb accumulated losses [11.1 Treasury Shares](index=65&type=section&id=11.1%20Treasury%20shares) As of January 14, 2025, Cosan S.A. repurchased 4,200,000 treasury shares for R$34,022 thousand, increasing its total treasury shares by June 30, 2025 - The Company repurchased 4,200,000 treasury shares for R$34,022 thousand at an average cost of R$8.10 per share[184](index=184&type=chunk) Treasury Shares (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | |:---|:---|:---|\ | Number of shares in treasury | 7,894,568 | 3,747,965 | | Market price per share | R$6.86 | N/A | [11.2 Payable Dividends](index=66&type=section&id=11.2%20Payable%20dividends) Consolidated dividends payable increased as of June 30, 2025, due to declared dividends, partially offset by payments to shareholders Consolidated Dividends Payable (January 1, 2025 vs. June 30, 2025) | Metric | Amount (R$ thousands) | |:---|:---|\ | Balance as at January 1, 2025 | 96,722 | | Declared dividends | 1,745,209 | | Dividends paid to preferred shareholders | (371,000) | | Dividends paid | (1,331,630) | | Balance as at June 30, 2025 | 135,875 | [11.3 Share Capital](index=66&type=section&id=11.3%20Share%20capital) Shareholders approved a reduction of the Company's share capital by R$649,806 thousand to absorb accumulated losses at the Annual General Meeting on April 30, 2025 - Shareholders approved a reduction of the Company's share capital by R$649,806 thousand to absorb accumulated losses[186](index=186&type=chunk) [12 Earnings Per Share](index=66&type=section&id=12%20Earnings%20per%20share) For the six months ended June 30, 2025, basic and diluted loss per share significantly increased, with share repurchases considered diluting and the share-based payment plan anti-dilutive Consolidated Earnings (Loss) Per Share (Six Months Ended June 30) | Metric | 2025 (R$) | 2024 (R$) | |:---|:---|:---|\ | Basic Loss per share | (1.47) | (0.22) | | Diluted Loss per share | (1.47) | (0.22) | Weighted Average Number of Common Shares Outstanding (Six Months Ended June 30) | Metric | 2025 (thousands of shares) | 2024 (thousands of shares) | |:---|:---|:---|\ | Basic | 1,858,651 | 1,863,883 | | Diluted | 1,858,241 | 1,863,883 | - Share repurchases (410,120 shares) were included as diluting instruments[189](index=189&type=chunk) - The share-based payment plan (4,938,979 shares) was considered anti-dilutive for the period[190](index=190&type=chunk) [13 Net Sales](index=67&type=section&id=13%20Net%20sales) Consolidated net sales for the six months ended June 30, 2025, slightly decreased, with the majority of revenue recognized at a point in time from natural gas distribution and lubricants/base oil sales Consolidated Net Sales (Six Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Gross revenue from the sale of products and services | 23,083,341 | 23,521,298 | | Construction revenue | 668,454 | 701,184 | | Indirect taxes and other deductions | (3,611,542) | (3,686,418) | | Net sales | 20,140,253 | 20,536,064 | Consolidated Revenue by Timing of Recognition (Six Months Ended June 30, 2025) | Timing of Recognition | Amount (R$ thousands) | |:---|:---|\ | At a point in time | 12,522,452 | | Over time | 7,626,351 | | Total Net Sales | 20,140,253 | - Natural gas distribution and lubricants/base oil sales are the largest components of revenue recognized at a point in time[193](index=193&type=chunk) - Railroad transportation services are the largest component of revenue recognized over time[193](index=193&type=chunk) [14 Costs and Expenses by Nature](index=67&type=section&id=14%20Costs%20and%20expenses%20by%20nature) For the six months ended June 30, 2025, consolidated costs and expenses by nature slightly decreased, with commodity costs (natural gas) and raw materials being the largest components Consolidated Costs and Expenses by Nature (Six Months Ended June 30) | Expense Category | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Raw materials | (3,350,139) | (3,544,031) | | Commodity cost (natural gas) | (5,399,586) | (5,571,285) | | Railroad transport and port elevation expenses | (1,436,481) | (1,416,070) | | Depreciation and amortization | (1,960,208) | (1,833,725) | | Personnel expenses | (1,594,180) | (1,475,852) | | Construction cost | (668,454) | (701,184) | | Third-party services expenses | (396,724) | (530,754) | | Total | (15,749,652) | (15,998,610) | [15 Other Operation Income (Expenses), Net](index=69&type=section&id=15%20Other%20operation%20income%20(expenses)%2C%20net) For the six months ended June 30, 2025, consolidated other operation income (expenses), net, significantly improved, driven by insurance compensation from the Moove fire, commercial operations, and investment sales, partially offset by impairment loss Consolidated Other Operation Income (Expenses), Net (Six Months Ended June 30) | Category | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Tax credits | 2,489 | 22,766 | | Result on sale of investments | 206,388 | (383,205) | | Net effect of provisions for legal proceedings, etc. | (143,507) | (149,301) | | Result of commercial operations | 494,895 | — | | Net impairment loss | (683,139) | (2,574,817) | | Loss of profits and material damages of fixed assets | 514,372 | — | | Other income | 180,720 | 149,979 | | Total | 329,785 | (2,408,282) | - The R$514,372 thousand from loss of profits and material damages of fixed assets includes R$444,372 thousand from Moove related to the fire incident[195](index=195&type=chunk) - The net impairment loss of R$683,139 thousand refers to the write-off of assets of Rumo Malha Sul SA due to extreme weather events[195](index=195&type=chunk) [16 Financial Results, Net](index=70&type=section&id=16%20Financial%20results%2C%20net) For the six months ended June 30, 2025, consolidated net financial results showed an improved loss, primarily due to positive shifts in monetary and exchange rate variation and reduced negative impact from derivatives Consolidated Financial Results, Net (Six Months Ended June 30) | Category | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Interest on debt | (3,310,838) | (2,846,862) | | Monetary and exchange rate variation | 2,600,536 | (3,061,950) | | Derivatives and fair value measurement | (3,112,427) | 2,177,978 | | Income from financial investments and exchange rate in cash and cash equivalents | 1,188,563 | 948,223 | | Other charges and monetary variations | (873,131) | (1,454,063) | | Financial results, net | (3,705,883) | (4,301,132) | [17 Share-Based Payment](index=71&type=section&id=17%20Share-based%20payment) As of June 30, 2025, the consolidated number of outstanding share grants was 15,544,738, with share-based compensation expense decreasing compared to the prior year Consolidated Outstanding Share Grants (January 1, 2025 vs. June 30, 2025) | Metric | Amount | |:---|:---|\ | Balance as at January 1, 2025 | 16,624,911 | | Exercised/canceled/other | (1,080,173) | | Balance as at June 30, 2025 | 15,544,738 | Consolidated Share-Based Compensation Expense (Six Months Ended June 30) | Metric | 2025 (R$ thousands) | 2024 (R$ thousands) | |:---|:---|:---|\ | Expense recognized in profit or loss | 44,618 | 81,258 | [18 Subsequent Events](index=71&type=section&id=18%20Subsequent%20events) Subsequent events include Raízen's operational discontinuations and asset sales, regulatory changes affecting Sulgás, an assessed immaterial impact from US tariffs, Rumo's corporate reorganization, Vale's interest on equity distribution, and Raízen's partial spin-off - Raízen S.A. announced the indefinite discontinuation of operations at Usina Santa Elisa and sales contracts for up to 3.6 million tons of sugarcane for R$1.045 billion[201](index=201&type=chunk) - Raízen S.A. announced the sale of 55 distributed generation plants for approximately R$600 million[203](index=203&type=chunk) - ARGEGS published Normative Resolution No. 72/2025, which will change Sulgás's accounting policy for gas and transportation price variations prospectively[202](index=202&type=chunk) - The US Executive Order imposing a 40% tariff on certain Brazilian products was assessed to have no material impact on Cosan's operations[204](index=204&type=chunk)[205](index=205&type=chunk) - The corporate reorganization of Rumo Malha Norte proceeded, with the base date for share transfer set for August 14, 2025[206](index=206&type=chunk) - Vale's board of directors approved the distribution of interest on equity (JCP) in the gross amount of R$1.895387417 per share[207](index=207&type=chunk) - A partial spin-off of Raízen S.A. to Raízen Energia S.A. was approved for group reorganization, effective August 10, 2025[208](index=208&type=chunk) [Signatures](index=73&type=section&id=SIGNATURES) [Authorized Signature](index=73&type=section&id=Authorized%20Signature) The report was duly signed on behalf of COSAN S.A. by Rodrigo Araujo Alves, Chief Financial Officer, on August 14, 2025, pursuant to the requirements of the Securities Exchange Act of 1934 - The report was signed by Rodrigo Araujo Alves, Chief Financial Officer of COSAN S.A[210](index=210&type=chunk) - The signing date was August 14, 2025[210](index=210&type=chunk)

Group 1 - Cosan (CSAN) has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Ormat Technologies (ORA) has a Zacks Rank of 3 (Hold) [3][7] - CSAN has a forward P/E ratio of 4.12, significantly lower than ORA's forward P/E of 42.21, suggesting that CSAN may be undervalued [5] - CSAN's PEG ratio is 0.13, compared to ORA's PEG ratio of 4.22, indicating that CSAN's expected earnings growth is more favorable [5] Group 2 - CSAN has a P/B ratio of 0.34, while ORA has a P/B ratio of 2.07, further supporting the notion that CSAN is undervalued relative to its book value [6] - Based on various valuation metrics, CSAN holds a Value grade of A, whereas ORA has a Value grade of C, highlighting CSAN's superior value proposition [6] - The improving earnings outlook for CSAN makes it a more attractive option for value investors compared to ORA [7]

Core Insights - Investors in the Alternative Energy - Other sector may consider Cosan (CSAN) and Ormat Technologies (ORA) as potential stocks for investment [1] - A strong Zacks Rank combined with a high Value grade in the Style Scores system is identified as an effective strategy for finding value stocks [2] Group 1: Zacks Rank and Analyst Outlook - Cosan currently holds a Zacks Rank of 1 (Strong Buy), indicating a more favorable earnings estimate revision compared to Ormat Technologies, which has a Zacks Rank of 3 (Hold) [3] - The improving analyst outlook for CSAN suggests a more positive sentiment among analysts [3] Group 2: Valuation Metrics - CSAN has a forward P/E ratio of 4.01, significantly lower than ORA's forward P/E of 42.60, indicating that CSAN may be undervalued [5] - The PEG ratio for CSAN is 0.13, while ORA's PEG ratio is 4.26, further suggesting that CSAN is more attractive in terms of expected earnings growth relative to its price [5] - CSAN's P/B ratio is 0.33, compared to ORA's P/B of 2.07, highlighting CSAN's lower market value relative to its book value [6] - These metrics contribute to CSAN's Value grade of A and ORA's Value grade of C, positioning CSAN as the more favorable option for value investors [6]

Investment Ratings - Petrobras: Buy with a 12-month price target of BRL 38.80 [18] - Brava Energia: Sell with a 12-month price target of BRL 15.80 [19] - PetroReconcavo: Neutral with a 12-month price target of BRL 16.50 [20] - Ultrapar: Buy with a 12-month price target of BRL 22.40 [21] - Cosan: Neutral with a 12-month price target of BRL 9.10 [22] - Vibra Energia: Neutral with a 12-month price target of BRL 20.30 [23] Core Insights - The report highlights a cautious outlook for oil prices, with expectations of average Brent oil prices at USD 56/bbl in 2026, influenced by solid supply growth outside the US shale [14] - Companies in the oil and gas sector are adjusting their capital expenditure (CAPEX) plans in response to lower oil prices, with Brava already reducing its investment plan for 2025 [2][12] - The fuel distribution segment is facing challenges from inventory losses due to recent price reductions by Petrobras, which may lead to lower margins in the short term [3][8] Summary by Company Petrobras - CAPEX remains resilient with 98% of upstream investments breakeven at or below USD 45/bbl, indicating no major adjustments in the short term [7] - The company is cautious about shareholder remuneration, recognizing potential increases in indebtedness due to lower oil prices [7] - Petrobras aims to avoid passing global market volatility to domestic fuel prices while aligning with international trends [7] Brava Energia - The company plans to deploy USD 450 million in CAPEX for 2025, a reduction from previous plans, primarily affecting onshore investments [12] - Brava expects stable production in the upcoming years, with potential growth in offshore output by 2026 [12] - The decision to cancel the divestment of onshore assets reflects a strategy to maintain a diversified portfolio [12] Vibra Energia - EBITDA in 2Q will be impacted by inventory losses, with a focus on reducing indebtedness through a 40% dividend payout policy [8] - Recent market share data indicates a slight increase in diesel market share, attributed to sales to TRR and unbranded gas stations [8] - The company does not foresee significant impacts from sanctions on Russian diesel imports [8] Ultrapar - The fuel distribution business is experiencing an oversupply effect, but demand is expected to improve in the second half of the year [9] - Ultrapar is positioning Ultragaz for potential investments in renewables, while managing profitability under competitive pressures [9] - The company anticipates leverage to remain within guidance levels despite recent acquisitions [9] PetroReconcavo - The company is maintaining flexibility in capital allocation, with expectations of double-digit production growth this year [12] - It recognizes the need for caution in the current oil price environment but does not plan significant CAPEX adjustments [12] Cosan - Committed to asset sales to improve its interest coverage ratio, with potential working capital pressures from recent IOF changes [13] - Raizen, one of Cosan's investees, is highlighted as being particularly exposed to these changes [13]

Group 1 - Cosan S.A. (NYSE: CSAN) is a well-diversified holding company with companies that have wide moats, providing exposure to strategic sectors [1] - The company is considered a cautious buy due to high debt and interest rates, but it offers deep value and strong assets, with potential upside if rates fall and subsidiaries improve [3] Group 2 - The analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential [1]

[Report on Review of Parent Company and Consolidated Interim Financial Statements](index=4&type=section&id=Report%20on%20review%20of%20parent%20company%20and%20consolidated%20interim%20financial%20statements) This section introduces the independent auditor's review of Cosan S.A.'s interim financial statements for Q1 2025, covering both parent company and consolidated figures [Introduction](index=4&type=section&id=Introduction) This section introduces the independent auditor's review of Cosan S.A.'s interim financial statements for Q1 2025, covering both parent company and consolidated figures - The review covered the interim statement of financial position, statements of profit or loss, other comprehensive income, changes in equity, and cash flows for the quarter ended March 31, 2025, for both the parent company and consolidated entities[8](index=8&type=chunk) [Scope of Review](index=4&type=section&id=Scope%20of%20review) The review was conducted under Brazilian and International Standards on Reviews of Interim Financial Information, which is less extensive than an audit - The review was conducted in accordance with Brazilian and International Standards on Reviews of Interim Financial Information (NBC TR 2410 and ISRE 2410), which is less extensive than an audit[10](index=10&type=chunk) [Conclusion](index=4&type=section&id=Conclusion) PricewaterhouseCoopers concluded that the interim financial statements are prepared, in all material respects, in accordance with CPC 21 and IAS 34 - The independent auditors concluded that the interim financial statements for the quarter ended March 31, 2025, are prepared, in all material respects, in accordance with CPC 21 and IAS 34[11](index=11&type=chunk) [Statements of Value Added](index=5&type=section&id=Statements%20of%20value%20added) The interim financial statements include parent company and consolidated statements of value added, presented as supplementary information under IAS 34 - The parent company and consolidated statements of value added for the quarter ended March 31, 2025, are presented as supplementary information under IAS 34 and were found to be properly prepared in accordance with CPC 09[12](index=12&type=chunk) [Audit and Review of Previous Year's Figures](index=5&type=section&id=Audit%20and%20review%20of%20previous%20year%27s%20figures) Comparative figures for Q1 2024 and the year ended December 31, 2024, were reviewed/audited by other independent auditors, who issued unqualified reports - The accounting information for the quarter ended March 31, 2024, and the statement of financial position for December 31, 2024, were reviewed/audited by other independent auditors, who issued unqualified reports[13](index=13&type=chunk) [Statements of Financial Position](index=6&type=section&id=Statements%20of%20financial%20position) This section presents the consolidated and parent company statements of financial position, detailing assets, liabilities, and equity as of March 31, 2025, compared to December 31, 2024 [Consolidated Financial Position](index=6&type=section&id=Consolidated%20Financial%20Position) The consolidated financial position as of March 31, 2025, shows decreases in total assets, liabilities, and equity, primarily due to reductions in cash, investments, and loans Consolidated Financial Position (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Total Assets | 127,486,217 | 141,265,902 | (13,779,685) | -9.75% | | Total Liabilities | 92,715,239 | 101,867,540 | (9,152,301) | -8.98% | | Total Shareholders' Equity | 34,770,978 | 39,398,362 | (4,627,384) | -11.75% | - Key asset changes include a decrease in **Cash and cash equivalents** by **R$2,094,459 thousand** and a significant decrease in **Investments in subsidiaries and associates** by **R$9,128,792 thousand**[16](index=16&type=chunk) - Key liability changes include a decrease in current **Loans, borrowings and debentures** by **R$1,775,131 thousand** and non-current by **R$3,999,641 thousand**, along with a reduction in current **Trade payables** by **R$1,282,003 thousand**[19](index=19&type=chunk) [Parent Company Financial Position](index=6&type=section&id=Parent%20Company%20Financial%20Position) The parent company's financial position as of March 31, 2025, also experienced a notable decline in total assets, liabilities, and equity Parent Company Financial Position (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Total Assets | 31,597,900 | 42,237,334 | (10,639,434) | -25.19% | | Total Liabilities | 23,706,237 | 31,333,570 | (7,627,333) | -24.34% | | Total Shareholders' Equity | 7,891,663 | 10,903,764 | (3,012,101) | -27.62% | [Statements of Profit or Loss](index=8&type=section&id=Statements%20of%20profit%20or%20loss) This section presents the consolidated and parent company statements of profit or loss, detailing revenue, expenses, and net income for the three months ended March 31, 2025, compared to the prior year [Consolidated Profit or Loss](index=8&type=section&id=Consolidated%20Profit%20or%20Loss) The consolidated entity reported a significant loss for Q1 2025, primarily due to negative equity in earnings of investees and increased finance results Consolidated Profit or Loss (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------------------------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Net sales | 9,662,601 | 9,842,056 | (179,455) | -1.82% | | Gross profit | 2,870,696 | 2,913,619 | (42,923) | -1.47% | | Equity in earnings (losses) of investees | (1,119,998) | 57,515 | (1,177,513) | -2047.32% | | Finance results, net | (1,902,995) | (1,779,329) | (123,666) | 6.95% | | Profit (loss) for the period | (1,935,398) | 263,544 | (2,198,942) | -834.40% | | Losses per share (Basic & Diluted) | (R$0.96) | (R$0.10) | (R$0.86) | -860.00% | - Profit (loss) before income taxes significantly declined from **R$247,907 thousand** in Q1 2024 to **(R$888,863) thousand** in Q1 2025[21](index=21&type=chunk) [Parent Company Profit or Loss](index=8&type=section&id=Parent%20Company%20Profit%20or%20Loss) The parent company also reported a substantial loss for the period, primarily driven by negative equity in earnings of investees and increased income taxes Parent Company Profit or Loss (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------------------------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Profit (loss) before equity in earnings of investees, finance results and income taxes | 115,988 | (117,921) | 233,909 | 198.36% | | Equity in earnings (losses) of investees | (621,430) | 778,295 | (1,399,725) | -1798.44% | | Finance results, net | (623,234) | (1,322,711) | 699,477 | -52.88% | | Profit (loss) for the period | (1,787,895) | (192,175) | (1,595,720) | 830.34% | - Income taxes shifted from a positive **R$470,162 thousand** in Q1 2024 to a negative **(R$659,219) thousand** in Q1 2025[21](index=21&type=chunk) [Statements of Other Comprehensive Income](index=9&type=section&id=Statements%20of%20other%20comprehensive%20income) This section presents the consolidated and parent company statements of other comprehensive income, detailing components such as foreign currency translation differences and cash flow hedges [Consolidated Other Comprehensive Income](index=9&type=section&id=Consolidated%20Other%20Comprehensive%20Income) The consolidated entity reported a total comprehensive loss for Q1 2025, primarily due to the period's loss and negative foreign currency translation differences Consolidated Other Comprehensive Income (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------------------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Profit (loss) for the period | (1,935,398) | 263,544 | (2,198,942) | -834.40% | | Foreign currency translation differences | (290,198) | 63,056 | (353,254) | -560.21% | | Gain (loss) on cash flow hedge | 222,492 | (42,564) | 265,056 | -622.72% | | Actuarial losses (gains) with defined benefit plan | (59,336) | 24,286 | (83,622) | -344.39% | | Total comprehensive income for the period | (2,073,463) | 300,065 | (2,373,528) | -790.99% | [Parent Company Other Comprehensive Income](index=9&type=section&id=Parent%20Company%20Other%20Comprehensive%20Income) The parent company also reported a total comprehensive loss, significantly impacted by the period's loss and negative foreign currency translation differences Parent Company Other Comprehensive Income (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------------------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Profit (loss) for the period | (1,787,895) | (192,175) | (1,595,720) | 830.34% | | Foreign currency translation differences | (290,696) | 62,887 | (353,583) | -562.20% | | Gain (loss) on cash flow hedge | 162,887 | (32,384) | 195,271 | -602.87% | | Actuarial losses (gains) with defined benefit plan | (22,497) | 14,408 | (36,905) | -256.15% | | Total comprehensive income for the period | (1,929,702) | (147,264) | (1,782,438) | 1210.34% | [Statement of Changes in Equity](index=10&type=section&id=Statement%20of%20changes%20in%20equity) This section presents the consolidated and parent company statements of changes in equity, detailing movements in total shareholders' equity and equity attributable to owners [Consolidated Equity Changes](index=10&type=section&id=Consolidated%20Equity%20Changes) Consolidated shareholders' equity decreased significantly from January 1, 2025, to March 31, 2025, due to the period's loss and changes in shareholding interest Consolidated Equity Changes (January 1, 2025 to March 31, 2025) | Metric | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Total shareholders' equity | 39,398,362 | 34,770,978 | (4,627,384) | -11.75% | | Loss for the period | — | (1,935,398) | (1,935,398) | N/A | | Change of shareholding interest in subsidiary | — | (2,168,930) | (2,168,930) | N/A | | Dividends | — | (375,782) | (375,782) | N/A | [Parent Company Equity Changes](index=10&type=section&id=Parent%20Company%20Equity%20Changes) The parent company's equity attributable to owners also saw a substantial decrease, driven by the period's loss and changes in shareholding interest Parent Company Equity Changes (January 1, 2025 to March 31, 2025) | Metric | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Equity attributable to owners of the Company | 10,903,764 | 7,891,663 | (3,012,101) | -27.62% | | Loss for the period | — | (1,787,895) | (1,787,895) | N/A | | Change of shareholding interest in subsidiary | — | (975,200) | (975,200) | N/A | [Statement of Cash Flows](index=12&type=section&id=Statement%20of%20cash%20flows) This section presents the consolidated and parent company statements of cash flows, detailing cash movements from operating, investing, and financing activities [Consolidated Cash Flow](index=12&type=section&id=Consolidated%20Cash%20Flow) The consolidated entity experienced a significant net cash outflow from financing activities, leading to a decrease in cash and cash equivalents Consolidated Cash Flow (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Net cash (generated) used in operating activities | 1,729,904 | 1,946,085 | (216,181) | -11.11% | | Net cash (generated) used in investing activities | 5,946,122 | (1,097,239) | 7,043,361 | -641.91% | | Net cash (used in) generated from financing activities | (9,573,313) | 845,573 | (10,418,886) | -1232.10% | | Increase (decrease) in cash and cash equivalents | (1,897,287) | 1,694,419 | (3,591,706) | -211.98% | | Cash and cash equivalents at the end of the period | 14,809,083 | 16,398,421 | (1,589,338) | -9.69% | [Parent Company Cash Flow](index=12&type=section&id=Parent%20Company%20Cash%20Flow) The parent company's cash flow from investing activities turned significantly positive, while financing activities resulted in a substantial outflow Parent Company Cash Flow (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :--------------------------------------- | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Net cash (generated) used in operating activities | 45,693 | (52,145) | 97,838 | -187.62% | | Net cash (generated) used in investing activities | 8,926,540 | (3,243,369) | 12,169,909 | -375.19% | | Net cash (used in) generated from financing activities | (8,437,342) | 2,213,994 | (10,651,336) | -481.00% | | Increase (decrease) in cash and cash equivalents | 534,891 | (1,081,520) | 1,616,411 | -149.46% | | Cash and cash equivalents at the end of the period | 2,732,522 | 691,728 | 2,040,794 | 294.90% | [Non-cash Transactions](index=14&type=section&id=Non-cash%20transactions) This section highlights significant non-cash transactions, including right-of-use asset recognition, installment payments, and the Compagas acquisition balance - Non-cash transactions for the period ended March 31, 2025, included the recognition of right-of-use as a counterpart to the lease liability in the amount of **R$135,098 thousand**[36](index=36&type=chunk) - Acquisition of property, plant and equipment and intangible assets with payment in installments totaled **R$567,019 thousand**[36](index=36&type=chunk) - The remaining balance of the acquisition of Compagas amounted to **R$613,385 thousand**, to be settled by September 2026[36](index=36&type=chunk) [Statement of Value Added](index=15&type=section&id=Statement%20of%20value%20added) This section presents the consolidated and parent company statements of value added, detailing the distribution of wealth generated by the company [Consolidated Value Added](index=15&type=section&id=Consolidated%20Value%20Added) The consolidated entity showed an increase in gross value added and value added to be distributed for Q1 2025, despite a slight decrease in net sales Consolidated Value Added (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Net sales | 10,946,098 | 11,515,795 | (569,697) | -4.95% | | Gross value added | 4,788,187 | 4,614,185 | 174,002 | 3.77% | | Net value added | 3,820,293 | 3,706,921 | 113,372 | 3.06% | | Value added to be distributed | 5,532,160 | 4,379,537 | 1,152,623 | 26.32% | | Equity remuneration (Retained losses) | (1,787,895) | (192,175) | (1,595,720) | 830.34% | [Parent Company Value Added](index=15&type=section&id=Parent%20Company%20Value%20Added) The parent company's value added metrics showed significant positive shifts from prior year negative figures, with increased gross value added and distribution Parent Company Value Added (Three months ended March 31, 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Revenue | 218,008 | (1,192) | 219,200 | -18390.94% | | Gross value added | 178,260 | (41,685) | 219,945 | -527.69% | | Net value added | 173,547 | (45,536) | 219,083 | -481.10% | | Value added to be distributed | 855,943 | 790,941 | 65,002 | 8.22% | | Equity remuneration (Retained losses) | (1,787,895) | (192,175) | (1,595,720) | 830.34% | [1. Operations](index=16&type=section&id=1%20Operations) This section provides an overview of Cosan S.A.'s business operations, corporate structure, and the activities of its corporate segment [Company Overview and Corporate Structure](index=16&type=section&id=Company%20Overview%20and%20Corporate%20Structure) Cosan S.A. is a publicly traded Brazilian company with ADSs listed on the NYSE, controlled by Mr. Rubens Ometto Silveira Mello, managing equity interests and financial results - Cosan S.A. is a publicly traded company on B3 (CSAN3) and NYSE (CSAN), incorporated under Brazilian laws, with **Mr. Rubens Ometto Silveira Mello** as the ultimate controlling shareholder[39](index=39&type=chunk) - Cosan Corporate's main activities include managing general and administrative expenses, contingencies, equity income from investments, and financial results from parent company and intermediate holding company debts[42](index=42&type=chunk) - Bradesco BBI S.A. holds **23.20% preferred shares** in Cosan Dez Participações S.A., which has an **88% stake in Compass**, while Itaú Unibanco S.A. holds **12.73% preferred shares** in Cosan Nove Participações S.A., which has a **39.09% stake in Raízen S.A.**[42](index=42&type=chunk) [2. Relevant Events During the Period](index=17&type=section&id=2%20Relevant%20events%20during%20the%20period) This section details significant events during the period, including key investment activities, acquisitions, disposals, and new debt issuances [2.1 Investments](index=17&type=section&id=2.1%20Investments) This section details key investment activities, including Moove's acquisition of DIPI Holdings and the partial sale of Vale S.A. shares - Cosan Lubrificantes e Especialidades S.A. (CLE) acquired **100% of DIPI Holdings Ltda.** for **R$329,006 thousand**, aiming to increase synergies, expand the product portfolio, and gain access to the packaging market[43](index=43&type=chunk)[145](index=145&type=chunk) - The Company sold **173,073,795 common shares of Vale S.A.**, representing **4.05% of Vale's share capital**, for a net commission of **R$8,892,802 thousand**[45](index=45&type=chunk) - A fire at Moove's Industrial Complex affected **10% of the production area**, with estimated asset losses between **R$190,413 thousand** and **R$285,620 thousand**, covered by comprehensive insurance up to **R$1,200,000 thousand**[48](index=48&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The Company redeemed **1,087,179,567 preferred shares of Cosan Nove** from Banco Itaú for **R$2,169,000 thousand**, increasing its stake in Cosan Nove to **87.27%**[59](index=59&type=chunk) [2.2 New Debts](index=19&type=section&id=2.2%20New%20debts) This section outlines the company's debt management activities, including significant early redemptions and the issuance of new debts across segments - The Company requested optional early redemption of the 1st Series of the 3rd Issue of Simple Debentures (maturity 2028) for **R$750,000 thousand** plus remuneration and premium[61](index=61&type=chunk) - The **2027 Bond (U.S.$392,000 thousand**, equivalent to **R$2,250,825 thousand**) was fully redeemed on March 14, 2025, at face value[62](index=62&type=chunk) - Loan 4.131 (**U.S.$600,000 thousand**, equivalent to **R$3,462,660 thousand**) and a debenture (**U.S.$300,000 thousand**, equivalent to **R$1,733,640 thousand**) were settled in advance in February 2025[64](index=64&type=chunk) New Debts Issued (Q1 2025) | Segment / Modalities | Value (in thousands of Reais) | Maturity | Index | | :------------------- | :---------------------------- | :--------- | :------------------ | | Cosan Corporate Debenture | 1,500,000 | 01/27/2029 | CDI + 0.60% p.a. | | Cosan Corporate Debenture | 500,000 | 03/27/2030 | CDI + 0.70% p.a. | | Cosan Corporate Debenture | 500,000 | 03/27/2032 | CDI + 1.00% p.a. | | Compass Debenture | 410,000 | 01/07/2027 | DI + spread 0.50% p.a. | | Compass Debenture | 800,000 | 01/15/2033 | IPCA + 7.44% p.a. | | Compass Loan 4.131 | 350,000 | 03/20/2026 | CDI + 0.78% | | Rumo Debenture | 434,949 | 03/28/2037 | IPCA + 7.47% p.a. | | Rumo Debenture | 1,365,051 | 03/28/2040 | IPCA + 7.53% p.a. | | Moove Loan 4.131 | 500,000 | 01/18/2028 | CDI + 0.45% p.a. | [3. Statement of Compliance and Material Accounting Policies](index=20&type=section&id=3%20Statement%20of%20compliance%20and%20material%20accounting%20policies) This section confirms compliance with accounting standards and Brazilian corporate law, outlining the basis and material accounting policies used for the interim financial statements [Compliance and Accounting Principles](index=20&type=section&id=Compliance%20and%20Accounting%20Principles) This section confirms interim financial statements comply with Brazilian and International Accounting Standards and Brazilian corporate law, with the Statement of Value-Added as supplementary information - The interim financial statements are prepared in accordance with Technical Pronouncement CPC 21 (R1) - Interim Financial Statements, International Accounting Standard (IAS 34) - Interim Financial Reporting, Brazilian Corporation Law, and CVM rules[66](index=66&type=chunk) - The Statement of Value-Added (VAS) is presented as supplementary information, as it is required by Brazilian corporate law but not by IFRS[68](index=68&type=chunk) - These interim financial statements were prepared using the same basis and accounting policies adopted in the preparation of the financial statements as of December 31, 2024[69](index=69&type=chunk) [4. Segment Information](index=21&type=section&id=4%20Segment%20information) This section provides detailed financial information for the company's operating segments, including net sales, EBITDA, and net profit or loss [Operating Segments Overview](index=21&type=section&id=Operating%20Segments%20Overview) This section outlines the company's five main operating segments: Raízen, Compass, Moove, Rumo, and Radar, with performance evaluated by senior management - The company reports on five main operating segments: Raízen (ethanol, sugar, bioenergy, fuels), Compass (natural gas distribution, electricity), Moove (lubricants, base oils), Rumo (rail logistics, port storage), and Radar (agricultural property management)[76](index=76&type=chunk) - **EBITDA** is used by the Company to evaluate the performance of its operating segments[73](index=73&type=chunk) [Consolidated Segment Performance (Q1 2025)](index=22&type=section&id=Consolidated%20Segment%20Performance%20%28Q1%202025%29) Consolidated segment performance for Q1 2025 shows Raízen as the largest contributor to net sales but also the largest net loss Consolidated Net Sales by Segment (Q1 2025) | Segment | Net Sales (in thousands of Reais) | | :------ | :-------------------------------- | | Raízen | 57,726,722 | | Compass | 4,209,600 | | Moove | 2,341,582 | | Rumo | 2,966,750 | | Radar | 152,078 | | Cosan Corporate | 48 | | Consolidated Total | 9,662,601 | Consolidated EBITDA by Segment (Q1 2025) | Segment | EBITDA (in thousands of Reais) | | :------ | :----------------------------- | | Raízen | 1,780,065 | | Compass | 1,297,043 | | Moove | 232,499 | | Rumo | 1,349,579 | | Radar | 140,860 | | Cosan Corporate | (646,670) | | Consolidated Total | 1,982,026 | Consolidated Net Profit (Loss) by Segment (Q1 2025) | Segment | Net Profit (Loss) (in thousands of Reais) | | :------ | :---------------------------------------- | | Raízen | (2,556,378) | | Compass | 420,452 | | Moove | 30,036 | | Rumo | (97,178) | | Radar | 134,188 | | Cosan Corporate | (2,031,611) | | Consolidated Total | (1,935,398) | [Consolidated Segment Performance (Q1 2024)](index=23&type=section&id=Consolidated%20Segment%20Performance%20%28Q1%202024%29) Consolidated segment performance for Q1 2024 shows Raízen as the largest contributor to net sales and EBITDA, with most segments reporting positive net profit Consolidated Net Sales by Segment (Q1 2024) | Segment | Net Sales (in thousands of Reais) | | :------ | :-------------------------------- | | Raízen | 53,657,046 | | Compass | 4,135,168 | | Moove | 2,439,592 | | Rumo | 3,146,017 | | Radar | 136,567 | | Cosan Corporate | 7 | | Consolidated Total | 9,842,056 | Consolidated EBITDA by Segment (Q1 2024) | Segment | EBITDA (in thousands of Reais) | | :------ | :----------------------------- | | Raízen | 3,879,847 | | Compass | 893,268 | | Moove | 328,940 | | Rumo | 1,688,860 | | Radar | 136,033 | | Cosan Corporate | 423,613 | | Consolidated Total | 2,934,500 | Consolidated Net Profit (Loss) by Segment (Q1 2024) | Segment | Net Profit (Loss) (in thousands of Reais) | | :------ | :---------------------------------------- | | Raízen | (907,496) | | Compass | 318,103 | | Moove | 180,656 | | Rumo | 368,337 | | Radar | 126,046 | | Cosan Corporate | (193,384) | | Consolidated Total | 263,544 | [Consolidated Segment Balance Sheet (March 31, 2025)](index=24&type=section&id=Consolidated%20Segment%20Balance%20Sheet%20%28March%2031%2C%202025%29) The consolidated balance sheet by segment as of March 31, 2025, shows Raízen with the largest total assets and Rumo with significant loans Consolidated Total Assets by Segment (March 31, 2025) | Segment | Total Assets (in thousands of Reais) | | :------ | :----------------------------------- | | Raízen | 148,157,446 | | Compass | 32,030,013 | | Moove | 8,602,183 | | Rumo | 51,422,655 | | Radar | 17,784,486 | | Cosan Corporate | 34,200,217 | | Consolidated Total | 127,486,217 | Consolidated Loans, Borrowings and Debentures by Segment (March 31, 2025) | Segment | Loans, Borrowings and Debentures (in thousands of Reais) | | :------ | :------------------------------------------------------- | | Raízen | (57,970,370) | | Compass | (13,908,996) | | Moove | (3,893,194) | | Rumo | (20,969,942) | | Cosan Corporate | (21,908,522) | | Consolidated Total | (60,680,654) | [4.1 Net Sales to External Customers by Product/Customer Type](index=25&type=section&id=4.1%20Net%20sales%20to%20external%20customers%20by%20product%2Fcustomer%20type) This section disaggregates net sales revenue by product/customer type for each segment, providing insight into primary revenue drivers Raízen Net Sales by Product (Q1 2025 vs. 2024) | Product | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :-------- | :------------------------------------- | :------------------------------------- | :--------- | | Ethanol | 6,807,576 | 5,609,583 | 21.36% | | Sugar | 6,562,652 | 7,761,595 | -15.44% | | Gasoline | 16,819,588 | 15,572,382 | 8.01% | | Diesel | 23,238,684 | 21,612,340 | 7.52% | | Cogeneration | 1,637,922 | 860,599 | 90.33% | | Other | 2,660,300 | 2,240,547 | 18.73% | | **Total** | **57,726,722** | **53,657,046** | **7.59%** | Compass Net Sales by Product/Service (Q1 2025 vs. 2024) | Product/Service | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :---------------- | :------------------------------------- | :------------------------------------- | :--------- | | Natural gas distribution (Industrial) | 2,469,442 | 2,800,989 | -11.70% | | Natural gas distribution (Residential) | 524,343 | 458,892 | 14.26% | | Gas commercialization | 386,964 | — | N/A | | **Total** | **4,209,600** | **4,135,168** | **1.80%** | Moove Net Sales by Product/Service (Q1 2025 vs. 2024) | Product/Service | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :---------------- | :------------------------------------- | :------------------------------------- | :--------- | | Finished product | 2,045,129 | 2,102,621 | -2.73% | | Base oil | 141,743 | 168,941 | -16.10% | | Services | 154,710 | 168,030 | -7.93% | | **Total** | **2,341,582** | **2,439,592** | **-4.02%** | Rumo Net Sales by Operations (Q1 2025 vs. 2024) | Operations | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :---------------- | :------------------------------------- | :------------------------------------- | :--------- | | North operations | 2,387,684 | 2,434,633 | -1.93% | | South operations | 406,410 | 563,131 | -27.72% | | Container operations | 172,656 | 148,253 | 16.46% | | **Total** | **2,966,750** | **3,146,017** | **-5.69%** | [4.2 Information on Geographical Area](index=26&type=section&id=4.2%20Information%20on%20geographical%20area) This section provides a geographical breakdown of the company's net sales, indicating Brazil as the largest market, followed by Europe and the United States Net Sales by Geographical Area (Q1 2025 vs. 2024) | Region | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (in thousands of Reais) | Change (%) | | :------------------ | :------------------------------------- | :------------------------------------- | :----------------------------- | :--------- | | Brazil | 8,166,677 | 8,518,307 | (351,630) | -4.13% | | Europe | 818,667 | 696,739 | 121,928 | 17.50% | | Latin America | 109,769 | 56,416 | 53,353 | 94.57% | | United States of America | 567,488 | 570,594 | (3,106) | -0.54% | | **Total** | **9,662,601** | **9,842,056** | **(179,455)** | **-1.82%** | [5. Financial Assets and Liabilities](index=26&type=section&id=5%20Financial%20assets%20and%20liabilities) This section provides an overview of the company's financial assets and liabilities, categorized by fair value through profit or loss and amortized cost [Financial Assets and Liabilities Overview](index=27&type=section&id=Financial%20Assets%20and%20Liabilities%20Overview) This section provides an overview of financial assets and liabilities, categorized by fair value and amortized cost, showing overall decreases for the consolidated entity Consolidated Financial Assets (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Fair value through profit or loss | 6,022,457 | 9,312,566 | -35.33% | | Amortized cost | 20,944,303 | 21,292,906 | -1.64% | | **Total Assets** | **26,966,760** | **30,605,472** | **-11.99%** | Consolidated Financial Liabilities (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Amortized cost | (50,214,873) | (56,213,794) | -10.67% | | Fair value through profit or loss | (28,848,082) | (31,764,238) | -9.18% | | **Total Liabilities** | **(79,062,955)** | **(87,978,032)** | **-10.13%** | Parent Company Financial Assets (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Fair value through profit or loss | 1,435,911 | 3,357,108 | -57.22% | | Amortized cost | 3,288,596 | 3,072,030 | 7.05% | | **Total Assets** | **4,724,507** | **6,429,138** | **-26.51%** | Parent Company Financial Liabilities (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Amortized cost | (21,991,685) | (28,863,862) | -23.79% | | Fair value through profit or loss | (192,379) | (1,104,874) | -82.50% | | **Total Liabilities** | **(22,184,064)** | **(29,968,736)** | **-25.98%** | [5.1 Cash and Cash Equivalents](index=28&type=section&id=5.1%20Cash%20and%20cash%20equivalents) This section details the composition of cash and cash equivalents for both parent and consolidated entities, showing a decrease in consolidated cash and financial investments Consolidated Cash and Cash Equivalents (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Cash and bank accounts | 952,971 | 958,738 | -0.60% | | Savings account | 734,502 | 485,393 | 51.32% | | Financial Investments | 13,121,610 | 15,459,411 | -15.12% | | **Total** | **14,809,083** | **16,903,542** | **-12.39%** | Parent Company Cash and Cash Equivalents (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Cash and bank accounts | 280 | 414 | -32.37% | | Savings account | 45,689 | 48,831 | -6.43% | | Financial Investments | 2,686,553 | 2,152,022 | 24.84% | | **Total** | **2,732,522** | **2,201,267** | **24.13%** | [5.2 Loans, Borrowings and Debentures](index=28&type=section&id=5.2%20Loans%2C%20borrowings%20and%20debentures) This section details the composition and changes in loans, borrowings, and debentures for both parent and consolidated entities, highlighting a significant debt reduction Consolidated Loans, Borrowings and Debentures (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total | 60,680,654 | 66,455,426 | -8.69% | | Current | 2,628,017 | 4,403,148 | -40.32% | | Non-current | 58,052,637 | 62,052,278 | -6.45% | Parent Company Loans, Borrowings and Debentures (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total | 16,092,111 | 21,350,555 | -24.62% | | Current | 360,607 | 347,032 | 3.91% | | Non-current | 15,731,504 | 21,003,523 | -25.09% | - Consolidated loans, borrowings, and debentures decreased by **R$5,774,772 thousand** from January 1, 2025, to March 31, 2025, primarily due to significant principal repayments of **R$11,504,819 thousand**[93](index=93&type=chunk) - As of March 31, 2025, the Company and its subsidiaries were in compliance with all financial and non-financial restrictive covenants[96](index=96&type=chunk) [5.3 Derivative Financial Instruments](index=31&type=section&id=5.3%20Derivative%20financial%20instruments) This section details the company's use of derivative financial instruments, primarily swaps, for economic hedging against foreign exchange, interest, and inflation risks Consolidated Derivative Financial Instruments (Fair Value, March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total financial instruments | (288,825) | 329,124 | -187.75% | | Current assets | 78,582 | 905,341 | -91.32% | | Non-current assets | 2,012,456 | 2,893,987 | -30.40% | | Current liabilities | (1,820,126) | (2,504,117) | -27.31% | | Non-current liabilities | (559,737) | (966,087) | -42.06% | - Derivatives are used solely for economic hedging purposes and not for speculative investments[97](index=97&type=chunk) - The Company adopts fair value hedge accounting for operations where interest and FX rate swaps correspond to fixed-rate loan terms, maintaining a **1:1 hedge ratio**[99](index=99&type=chunk) - Subsidiaries like Edge Comercialização S.A. and TRSP Terminal de Regaseificação de São Paulo utilize cash flow hedges to mitigate risks from natural gas price fluctuations and exchange rate volatility on US dollar revenues[105](index=105&type=chunk)[107](index=107&type=chunk) [5.4 Related Parties](index=37&type=section&id=5.4%20Related%20parties) This section details related party receivables, payables, transactions, and compensation for managers and directors, highlighting financial and commercial operations Consolidated Related Parties Receivables (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total current assets | 232,553 | 197,063 | 18.01% | | Total non-current assets | 132,110 | 202,826 | -34.86% | | **Total Receivables** | **364,663** | **399,889** | **-8.79%** | Consolidated Related Parties Payables (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total current liabilities | 434,093 | 416,410 | 4.25% | | Total non-current liabilities | 1,078 | 1,078 | 0.00% | | **Total Payables** | **435,171** | **417,488** | **4.23%** | Consolidated Transactions with Related Parties (Q1 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Operating income | 136,732 | 259,742 | -47.36% | | Purchase of goods / inputs / services | (508,877) | (522,714) | -2.65% | | Shared income (expenses) | (49,407) | (45,831) | 7.80% | | Finance result | (5,336) | — | N/A | | **Total** | **(426,888)** | **(308,803)** | **38.24%** | Consolidated Managers' and Directors' Compensation (Q1 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Short-term benefits | 39,992 | 30,643 | 30.53% | | Share-based compensation | 7,632 | 18,915 | -59.65% | | Post-employment benefits | 602 | 538 | 11.89% | | **Total** | **48,712** | **52,631** | **-7.45%** | [5.5 Trade Payables](index=39&type=section&id=5.5%20Trade%20payables) This section provides a breakdown of consolidated and parent company trade payables, showing a significant decrease in consolidated payables from material and services suppliers Consolidated Trade Payables (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :--------- | | Material and services suppliers | 2,713,926 | 4,205,516 | -35.47% | | Natural gas / transport and logistics suppliers | 1,192,176 | 982,333 | 21.36% | | **Total** | **3,906,102** | **5,187,849** | **-24.70%** | Parent Company Trade Payables (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :------------------------------------ | :------------------------------------- | :------------------------------------- | :--------- | | Material and services suppliers | 1,304 | 2,744 | -52.55% | | Natural gas / transport and logistics suppliers | — | 156 | -100.00% | | **Total** | **1,304** | **2,900** | **-55.03%** | [5.6 Recognized Fair Value Measurements](index=39&type=section&id=5.6%20Recognized%20Fair%20value%20measurements) This section outlines fair value measurements of consolidated assets and liabilities, primarily Level 2, with investment properties as the main Level 3 item Consolidated Assets Measured at Fair Value (March 31, 2025) | Asset Category | Level 1 (in thousands of Reais) | Level 2 (in thousands of Reais) | Level 3 (in thousands of Reais) | | :--------------- | :------------------------------ | :------------------------------ | :------------------------------ | | Investment funds | — | 746,406 | — | | Marketable securities | 242,036 | 2,938,329 | — | | Other financial assets | 4,648 | — | — | | Investment properties | — | — | 16,824,078 | | Derivative financial instruments | — | 2,091,038 | — | | **Total** | **246,684** | **5,775,773** | **16,824,078** | Consolidated Liabilities Measured at Fair Value (March 31, 2025) | Liability Category | Level 1 (in thousands of Reais) | Level 2 (in thousands of Reais) | Level 3 (in thousands of Reais) | | :----------------- | :------------------------------ | :------------------------------ | :------------------------------ | | Loans, financing and debentures | — | (26,468,219) | — | | Derivative financial instruments | — | (2,379,863) | — | | **Total** | **—** | **(28,848,082)** | **—** | - The fair value of investment properties was determined using the direct comparative method of market data and sales quotes for similar properties, with discount rates between **6.06% p.a.** and **10.40% p.a.**[121](index=121&type=chunk) [5.7 Financial Risk Management](index=40&type=section&id=5.7%20Financial%20risk%20management) This section details the company's financial risk management strategies, covering market, credit, and liquidity risks, along with sensitivity analyses Net Foreign Exchange Exposure (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Foreign exchange exposure, net | (2,524,980) | (2,848,721) | -11.36% | - The probable scenario for foreign exchange risk indicates an impact on profit or loss before tax of **R$545,197 thousand**[120](index=120&type=chunk) - The probable scenario for interest rate risk indicates an impact on income (loss) before taxes of **(R$15,310,819) thousand**[124](index=124&type=chunk) Credit Risk Exposure (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total Credit Risk Exposure | 24,889,785 | 28,817,140 | -13.63% | Liquidity Risk (Total Financial Liabilities, March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total Financial Liabilities | (89,545,840) | (92,930,623) | -3.64% | [6. Investments in Subsidiaries and Associates](index=43&type=section&id=6%20Investments%20in%20associates) This section details the company's direct and indirect equity interests in subsidiaries and associates, including ownership percentages and investment balance movements [6.1 Investments in Subsidiaries and Associates](index=44&type=section&id=6.1%20Investments%20in%20subsidiaries%20and%20associates) This section lists direct and indirect equity interests in subsidiaries and associates, detailing ownership percentages and investment balance movements Parent Company Ownership Interests in Key Subsidiaries (March 31, 2025) | Subsidiary | Ownership Interest (%) | Economic Benefit (%) | | :------------------------------------ | :--------------------- | :------------------- | | Cosan Corretora de Seguros Ltda. | 100.00% | 100.00% | | Cosan Nove Participações S.A. | 87.27% | 66.16% | | Cosan Luxembourg S.A. | 100.00% | 100.00% | | Cosan Overseas Limited | 100.00% | 100.00% | | Cosan Dez Participações S.A. | 76.80% | 72.00% | | Moove Lubricants Holdings | 70.00% | 70.00% | | Rumo S.A. | 30.39% | 30.39% | Consolidated Material Investments in Associates (March 31, 2025) | Investee | Equity Stake (%) | | :------------------------------------ | :----------------- | | CEG Rio S.A. | 37.41% | | Companhia de Gás de Mato Grosso do Sul - Msgás | 49.00% | | Companhia de Gás de Santa Catarina - Scgás | 41.00% | - The parent company's total investments in subsidiaries decreased by **27.19%** from **R$31,308,696 thousand** on January 1, 2025, to **R$22,796,530 thousand** on March 31, 2025[137](index=137&type=chunk) - Cosan Luxembourg S.A. reported an uncovered liability of **R$346,975 thousand** as of March 31, 2025[133](index=133&type=chunk)[137](index=137&type=chunk) [6.2 Non-controlling Interest in Subsidiaries](index=47&type=section&id=6.2%20Non-controlling%20interest%20in%20subsidiaries) This section summarizes information on subsidiaries with material non-controlling interests, detailing shares held and impact on profit and equity Non-controlling Interest in Key Subsidiaries (March 31, 2025) | Subsidiary | Non-controlling Interest (%) | | :------------------------------------ | :--------------------------- | | Tellus Brasil Participações S.A. | 80.00% | | Janus Brasil Participações S.A. | 80.00% | | Rumo S.A. | 69.61% | | Moove Lubricants Holdings | 30.00% | | Cosan Nove Participações S.A. | 12.73% | | Cosan Dez Participações S.A. | 23.20% | - The consolidated balance of non-controlling interest decreased by **5.70%** from **R$28,494,598 thousand** on January 1, 2025, to **R$26,879,315 thousand** on March 31, 2025[142](index=142&type=chunk) - Profit attributable to non-controlling interests was **(R$147,503) thousand** for the period ended March 31, 2025[142](index=142&type=chunk) [6.3 Acquisition of Subsidiaries](index=49&type=section&id=6.3%20Acquisition%20of%20subsidiaries) This section details CLE's acquisition of DIPI Holding Ltda., outlining transaction price, payment structure, strategic rationale, and asset allocation - CLE acquired **100% of DIPI Holding Ltda. (PAX Group)** for **R$329,006 thousand**, with **R$232,886 thousand** paid upfront and the remainder in installments[143](index=143&type=chunk) - The net cash effect on consolidated financials from the acquisition was **R$213,086 thousand**[143](index=143&type=chunk) - The acquisition aims to increase supply chain synergies, expand the product portfolio, gain access to the restricted packaging market, and incorporate grease technologies[145](index=145&type=chunk) - Preliminary goodwill of **R$236,469 thousand** was recognized, representing expected future economic benefits and synergies[145](index=145&type=chunk) Identifiable Assets Acquired and Liabilities Assumed (Acquisition Date) | Item | Value (in thousands of Reais) | | :-------------------------- | :---------------------------- | | Cash and cash equivalents | 2,503 | | Trade receivables | 18,455 | | Inventories | 36,576 | | Property, plant and equipment | 70,491 | | Intangible assets and goodwill | 313,378 | | Loans, financing and debentures | (77,002) | | Deferred tax liabilities | (38,409) | | **Net assets acquired** | **329,006** | [7. Investment in Joint Venture](index=51&type=section&id=7%20Investment%20in%20join%20venture) This section details the company's investments in joint ventures, primarily Raízen S.A., outlining ownership interests and movements in investment balances [Joint Venture Investments Overview](index=51&type=section&id=Joint%20Venture%20Investments%20Overview) This section details investments in joint ventures, primarily Raízen S.A., outlining ownership interests and investment balance movements Parent Company Investment in Joint Ventures (March 31, 2025 vs. January 1, 2025) | Joint Venture | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Raízen S.A. | 1,184,466 | 1,068,941 | -9.60% | | Radar Gestão de Invest. S.A. | 8,606 | 9,508 | 10.48% | | **Total** | **1,193,072** | **1,078,449** | **-9.59%** | Consolidated Investment in Joint Ventures (March 31, 2025 vs. January 1, 2025) | Joint Venture | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Raízen S.A. | 10,495,317 | 9,478,132 | -9.69% | | Terminal Alvorada S.A. | 41,121 | 52,830 | 28.47% | | Radar Gestão de Invest. S.A. | 8,606 | 9,508 | 10.48% | | **Total** | **10,545,044** | **9,540,470** | **-9.43%** | - The Company's total interest in Raízen S.A. is **30.87% (5.01% direct and 25.86% indirect through Cosan Nove)**[151](index=151&type=chunk) - As of March 31, 2025, the Company was in compliance with the covenants of the agreement governing the joint venture[152](index=152&type=chunk) [8. Property, Plant and Equipment, Intangible, Assets and Goodwill, Contract Assets, Right-of-Use and Investment Properties](index=51&type=section&id=8%20Property%2C%20plant%20and%20equipment%2C%20Intangible%2C%20assets%20and%20goodwill%2C%20Contract%20assets%2C%20right-off-use%20and%20investment%20properties) This section details the company's property, plant and equipment, intangible assets, goodwill, and right-of-use assets, including their cost, depreciation, and movements [8.1 Property, Plant and Equipment](index=51&type=section&id=8.1%20Property%2C%20plant%20and%20equipment) This section details consolidated and parent company property, plant and equipment, including cost, depreciation, and movements, noting an impairment loss at Rumo Malha Sul Consolidated Property, Plant and Equipment (March 31, 2025 vs. January 1, 2025) | Metric | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Cost | 37,399,482 | 39,022,211 | 4.34% | | Depreciation | (14,380,466) | (15,261,522) | 6.13% | | **Net Balance** | **23,019,016** | **23,760,689** | **3.22%** | - Rumo Malha Sul recognized a provision of **R$285,608 thousand** for impairment due to assets destroyed or rendered unfeasible by extreme weather events[154](index=154&type=chunk) [8.2 Intangible Assets and Goodwill](index=53&type=section&id=8.2%20Intangible%2C%20assets%20and%20goodwill) This section provides a breakdown of consolidated and parent company intangible assets and goodwill, including cost, amortization, and movements Consolidated Intangible Assets and Goodwill (March 31, 2025 vs. January 1, 2025) | Metric | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Cost | 35,397,804 | 35,937,333 | 1.52% | | Amortization | (9,067,019) | (9,346,945) | 3.09% | | **Net Balance** | **26,330,785** | **26,590,388** | **0.99%** | [8.3 Right-of-Use Assets](index=54&type=section&id=8.3%20Right-off-use%20assets) This section details consolidated and parent company right-of-use assets, including their cost, accumulated amortization, and movements Consolidated Right-of-Use Assets (March 31, 2025 vs. January 1, 2025) | Metric | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Cost | 13,031,936 | 12,446,302 | -4.49% | | Amortization | (3,073,185) | (2,849,495) | -7.30% | | **Net Balance** | **9,958,751** | **9,596,807** | **-3.59%** | [9. Income Taxes](index=54&type=section&id=9%20Income%20taxes) This section details the company's income tax and social contribution expenses, deferred tax assets and liabilities, and their reconciliation [a) Reconciliation of Income Tax and Social Contribution Expenses](index=55&type=section&id=a%29%20Reconciliation%20of%20income%20tax%20and%20social%20contribution%20expenses) This section reconciles income tax and social contribution expenses for both parent and consolidated entities, highlighting changes in effective tax rates and tax losses Consolidated Income Tax and Social Contribution (Q1 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :------------------------------------------ | :------------------------------------- | :------------------------------------- | :--------- | | Profit (loss) before taxes | (888,863) | 247,907 | -458.55% | | Income tax and social contribution (current and deferred) | (1,046,535) | 15,637 | -6792.69% | | Effective rate - % | 117.74% | 6.31% | 1765.93% | Parent Company Income Tax and Social Contribution (Q1 2025 vs. 2024) | Metric | March 31, 2025 (in thousands of Reais) | March 31, 2024 (in thousands of Reais) | Change (%) | | :------------------------------------------ | :------------------------------------- | :------------------------------------- | :--------- | | Profit (loss) before taxes | (1,128,676) | (662,337) | 70.41% | | Income tax and social contribution (current and deferred) | (659,219) | 470,162 | -2402.10% | | Effective rate - % | 58.41% | (70.99%) | -182.26% | - Consolidated tax losses not recorded amounted to **(R$1,058,913) thousand** in Q1 2025, a significant increase from **(R$67,150) thousand** in Q1 2024[158](index=158&type=chunk) [b) Deferred Income Tax Assets and Liabilities](index=56&type=section&id=b%29%20Deferred%20income%20tax%20assets%20and%20liabilities) This section presents tax effects of temporary differences giving rise to deferred tax assets and liabilities, showing a decrease for the consolidated entity Consolidated Deferred Tax Assets (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total Deferred Tax Assets | 6,630,831 | 7,624,513 | -12.90% | Consolidated Deferred Tax Liabilities (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Total Deferred Tax Liabilities | (8,901,846) | (9,102,723) | -2.21% | - Consolidated deferred tax assets from income tax losses increased to **R$1,757,642 thousand** in Q1 2025 from **R$1,699,262 thousand** in Q4 2024[159](index=159&type=chunk) - Consolidated deferred tax liabilities from business combination – intangible assets remained the largest component, at **(R$5,016,172) thousand** in Q1 2025[159](index=159&type=chunk) [c) Changes in Deferred Tax Assets and Liabilities](index=57&type=section&id=c%29%20Changes%20in%20deferred%20tax%20assets%20and%20liabilities) This section details changes in deferred tax assets and liabilities for both parent and consolidated entities, showing the impact of income, foreign exchange, and business combinations - Parent Company deferred tax assets increased by **R$272,942 thousand** due to income for the period, but decreased by **R$860,743 thousand** due to foreign exchange differences[160](index=160&type=chunk) - Consolidated deferred tax assets were credited **R$171,557 thousand** from income for the period, but reduced by **R$1,115,807 thousand** due to foreign exchange differences[161](index=161&type=chunk) [10. Provision for Proceedings and Judicial Deposits](index=57&type=section&id=10%20Provision%20for%20proceedings%20and%20judicial%20deposits) This section details the company's provisions for legal proceedings and judicial deposits, categorized by tax, civil, environmental, regulatory, and labor claims [Provisions and Judicial Deposits Overview](index=57&type=section&id=Provisions%20and%20Judicial%20Deposits%20Overview) This section details provisions for legal proceedings and judicial deposits, categorized by tax, civil, environmental, regulatory, and labor claims Consolidated Provision for Lawsuits (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Tax | 802,279 | 745,896 | 7.56% | | Civil, environmental and regulatory | 890,170 | 818,422 | 8.77% | | Labor | 503,769 | 480,315 | 4.88% | | **Total** | **2,196,218** | **2,044,633** | **7.41%** | Consolidated Judicial Deposits (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Tax | 828,550 | 801,723 | 3.35% | | Civil, environmental and regulatory | 136,692 | 134,058 | 1.97% | | Labor | 119,843 | 120,909 | -0.88% | | **Total** | **1,085,085** | **1,056,690** | **2.69%** | [a) Probable Losses](index=58&type=section&id=a%29%20Probable%20losses) This section details main tax, civil, environmental, regulatory, and labor proceedings with probable loss risk, including FINSOCIAL and INSS claims Consolidated Probable Tax Losses (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Compensation with FINSOCIAL | 340,505 | 337,351 | 0.94% | | INSS | 110,924 | 101,399 | 9.40% | | PIS and COFINS | 81,205 | 34,412 | 135.97% | | **Total** | **802,279** | **745,896** | **7.56%** | - The Company has probable indemnity lawsuits in addition to those mentioned; as they represent contingent assets, they have not been reported[167](index=167&type=chunk) [b) Possible Losses](index=60&type=section&id=b%29%20Possible%20losses) This section outlines main lawsuits with possible loss risk, covering tax, civil, environmental, regulatory, and labor claims, with tax claims being the largest Consolidated Possible Losses (March 31, 2025 vs. December 31, 2024) | Category | March 31, 2025 (in thousands of Reais) | December 31, 2024 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Tax | 8,190,560 | 8,815,036 | -7.10% | | Civil, environmental and regulatory | 6,729,481 | 6,569,528 | 2.43% | | Labor | 687,920 | 690,535 | -0.38% | | **Total** | **15,607,961** | **16,075,099** | **-2.84%** | - The total amount of assessed and disputed values with tax authorities for which it is likely that the tax authority will accept the uncertain tax treatment was **R$6,704,852 thousand** as of March 31, 2025[173](index=173&type=chunk) [11. Shareholders' Equity](index=61&type=section&id=11%20Shareholders%27%20equity) This section details the company's shareholders' equity, including treasury share activities and changes in payable dividends [a) Treasury Shares](index=61&type=section&id=a%29%20Treasury%20shares) This section details the company's treasury share activities, including repurchases and the total number of shares held - As of January 14, 2025, the Company repurchased **4,200,000 treasury shares** for **R$34,022 thousand** at an average cost of **R$8.10 per share**[176](index=176&type=chunk) - As of March 31, 2025, the Company held **7,925,940 shares in treasury**, with a market price of **R$7.39 per share**[176](index=176&type=chunk) [b) Payable Dividends](index=61&type=section&id=b%29%20Payable%20dividends) This section outlines changes in consolidated and parent company dividends payable, reflecting declared and paid amounts Consolidated Dividends Payable (March 31, 2025 vs. January 1, 2025) | Metric | January 1, 2025 (in thousands of Reais) | March 31, 2025 (in thousands of Reais) | Change (%) | | :-------------------------- | :------------------------------------- | :------------------------------------- | :--------- | | Balance as of | 96,722 | 55,086 | -43.04% | | Declared dividends | — | 375,782 | N/A | | Dividends paid to preferred shareholders | — | (371,000) | N/A | | Dividends paid | — | (44,032) | N/A | [12. Earnings Per Share](index=62&type=section&id=12%20Earning%20per%20share) This section presents the calculation of basic and diluted earnings per share for the consolidated entity, showing a significant increase in loss per share [Earnings Per Share Calculation](index=62&type=section&id=Earnings%20Per%20Share%20Calculation) This section presents the calculation of basic and diluted earnings per share for the consolidated entity, showing a significant increase in loss per share Consolidated Earnings Per Share (Q1 2025 vs. 2024) | Metric | March 31, 2025 | March 31, 2024 | Change | Change (%) | | :------------------------------------------------ | :------------- | :------------- | :----- | :--------- | | Loss attributable to holders of common shares of the Company used in calculating basic earnings per share (in thousands of Reais) | (1,787,895) | (192,175) | (1,595,720) | 830.34% | | Basic Loss per share (R$) | (R$0.96) | (R$0.10) | (R$0.86) | 860.00% | | Diluted Loss per share (R$) | (R$0.96) | (R$0.10) | (R$0.86) | 860.00% | - The weighted average number of common shares outstanding (basic) was **1,858,633 thousand shares** for Q1 2025, down from **1,865,733 thousand shares** in Q1 2024[178](index=178&type=chunk) - Share repurchases (**378,748 shares**) were considered diluting instruments for Q1 2025, as they increased the loss per share[179](index=179&type=chunk) - Share-based payment plan shares (**4,932,983 shares** for Q1 2025) were considered anti-dilution instruments as they increased earnings per share[180](index=180&type=chunk) [13. Net Sales](index=63&type=section&id=13%20Net%20sales) This section provides a detailed breakdown of the company's consolidated net sales by product and service lines, and timing of revenue recognition [Consolidated Net Sales Breakdown](index=63&type=section&id=Consolidated%20Net%20Sales%20Breakdown) This section provides a detailed breakdown of consolidated net sales by product, s

Financial Performance - Net sales for the fiscal year ended December 31, 2024, increased by R$4,482.2 million, or 11.4%, to R$43,950.7 million compared to R$39,468.5 million in 2023[693] - Gross profit rose by R$2,796.1 million, or 25.6%, to R$13,714.7 million in 2024 from R$10,918.6 million in 2023[693] - Profit for the year from continuing operations decreased by R$13,274.9 million, or 274.3%, resulting in a loss of R$8,435.6 million in 2024 compared to a profit of R$4,839.3 million in 2023[693] - Rumo's net sales increased by R$2,998.7 million, or 27.4%, driven by a 5% increase in volumes transported and higher average transportation tariffs[697] - Compass's net sales grew by R$616.1 million, or 3.5%, primarily due to the acquisition of Compagas and increased volumes of distributed natural gas[698] - Moove's net revenue increased by R$169.7 million, or 1.7%, attributed to the implementation of the Moove Performance System[699] - Radar's leases and sales of land surged by R$698.4 million, or 93.9%, due to the sale of nine properties in 2024[700] Costs and Expenses - Total cost of sales rose by R$1,686.2 million, or 5.9%, to R$30,236.1 million in 2024 from R$28,549.9 million in 2023[702] - Selling expenses increased by R$225.3 million, or 16.7%, to R$1,575.9 million in 2024 compared to R$1,350.6 million in 2023[711] - Selling expenses increased by R$186.4 million, or 16.3%, to R$1,331.4 million for the fiscal year ended December 31, 2024, compared to R$1,145.0 million in 2023[714] - General and administrative expenses rose by 12.6% to R$2,845.3 million in 2024, up from R$2,527.9 million in 2023[716] - Moove's general and administrative expenses increased by 42.7% to R$921.2 million in 2024, primarily due to a R$175.3 million rise in depreciation and amortization expenses[720] Other Income and Financial Results - Other income, net decreased from R$3,924.4 million in 2023 to an expense of R$1,549.8 million in 2024, mainly due to a R$3,155.4 million impairment effect from extreme weather events[723] - Interest in earnings of associates rose significantly by R$1,368.6 million, or 390.6%, to R$1,719.0 million in 2024 from R$350.4 million in 2023[693] - Finance results, net totaled a financial expense of R$8,749.7 million in 2024, an increase of R$852.7 million, or 10.8%, compared to R$7,897.1 million in 2023[726] - Total income tax expenses rose significantly to R$3,190.5 million in 2024 from R$274.4 million in 2023, resulting in an effective tax rate of 60.8%[732] Profitability - Profit attributable to the Company's shareholders decreased from R$1,094.4 million to a loss of R$9,423.8 million for the fiscal year ended December 31, 2024[733] - Profit for the year from continuing operations rose significantly by 174.6% to R$4,839.3 million, compared to R$2,771.0 million in the previous year[735] - Profit attributable to owners of the Company decreased by 6.9% to R$1,094.4 million from R$1,176.0 million in 2022[735] Cash Flow and Capital Expenditures - Cash flows generated from operating activities increased to R$13,081.3 million in 2024, up R$2,755.9 million from R$10,276.4 million in 2023[784] - Net cash flows used in investing activities increased to R$4,488.3 million in 2024, compared to R$4,303.1 million in 2023, primarily due to increased acquisitions[785] - Net cash flows used in financing activities were R$6,605.9 million in 2024, an increase of R$2,089.3 million compared to net cash flows generated in 2023[786] - The company’s capital expenditures for the fiscal year ended December 31, 2024, were R$7,834.5 million, up from R$6,268.0 million in 2023, and R$4,531.4 million in 2022[801] Debt and Financing - Total debt increased by 16.8% to R$66,455.4 million as of December 31, 2024, from R$56,904.7 million in 2023[788] - The company maintained compliance with all financial covenants as of December 31, 2024[790] - Raízen Fuels issued two series of green bonds totaling U.S.$1,500 million (R$7,472.2 million) with maturities in March 2034 and March 2054[793] - The company has a loan of R$2,983 million with a 7.25% annual interest rate, maturing on June 27, 2031[792] - The company’s total current liabilities were R$4,403.1 million as of December 31, 2024, compared to R$4,882.4 million in 2023[796] - The company’s total non-current liabilities increased to R$62,052.3 million in 2024 from R$52,022.3 million in 2023[796] Investments and Acquisitions - Rumo's capital expenditures were R$5,492.7 million in 2024, up from R$3,689.9 million in 2023, focusing on asset renovation and infrastructure improvements[803][807] - Cosan Luxembourg S.A. commenced offers to purchase a total of U.S.$900 million in senior notes, purchasing U.S.$236.5 million of 5.500% notes due 2029, U.S.$273.2 million of 7.500% notes due 2030, and U.S.$268.7 million of 7.250% notes due 2031[802]

4Q24 Unaudited Financial Information February 27, 2025 Confidencial Disclaimer Any estimates and forward-looking statements made during this presentation regarding our strategy and opportunities for future growth are primarily based on our current expectations and estimates or projections of future events and trends that affect or may affect our business and operational results. Although we believe that these estimates and forward-looking statements are based on reasonable assumptions, they are subject to v ...

Financial Data and Key Metrics Changes - The company reported an EBITDA under management of approximately R$30 billion for 2024, indicating a resilient portfolio despite challenges [12] - The net loss for 2024, excluding non-recurring events, was R$900 million, primarily due to the depreciation of the Brazilian Real and mark-to-market impacts [12][13] - The corporate net debt at the end of 2024 was R$23.4 billion, with a debt service coverage ratio of 1.1 times, highlighting the need for improved capital structure [15][17] Business Line Data and Key Metrics Changes - Rumo experienced higher transported volumes and increased tariffs, achieving record transport levels in several months of 2024 [17] - Compass saw growth in distributed natural gas volumes and the ramp-up of Edge operations, contributing positively to the business [18] - Moove managed to increase revenues despite lower volumes sold, demonstrating effective supply management [20] - Raizen faced challenges in sugarcane crushing due to adverse weather conditions, resulting in lower EBITDA [21] Market Data and Key Metrics Changes - The macro environment for 2024 began with positive expectations but deteriorated throughout the year, leading to a new interest rate hike cycle in Brazil [9][10] - The company noted a significant impact from the depreciation of the Brazilian Real on its financial results, particularly affecting perpetual bonds [13] Company Strategy and Development Direction - The management emphasized a focus on improving capital structure and maintaining capital discipline, particularly following the divestment of the Vale stake [10][26] - The company plans to be active in capital allocation and portfolio recycling to navigate the challenging macro environment while pursuing growth [11] - There is a clear strategy to reduce leverage at the Holdco level while maintaining a high-quality asset portfolio [72][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the need for urgent action to improve the debt service coverage ratio and overall financial health [44] - The company is committed to maintaining quality in its portfolio while exploring divestment options to enhance capital structure [45][48] - The management expressed optimism about the potential for future growth despite current macroeconomic challenges [122] Other Important Information - The company plans to use proceeds from the Vale disposal to reduce debt and improve its capital structure [24] - There were no fatalities reported in the Moove fire incident, and the company has implemented effective contingency plans [53] Q&A Session Summary Question: Debt profile and preferred shares treatment after Vale disposal - Management indicated that the focus is on liability management and optimizing the debt profile, with preferred shares not directly tied to the Vale acquisition [29][34] Question: Capital allocation and potential divestments - Management confirmed that divestments are being considered, but the priority remains on maintaining portfolio quality [40][45] Question: Impact of Moove fire on operations - Management reassured that there were no injuries and that contingency plans were effectively implemented to mitigate operational impacts [54] Question: Direction for deleveraging and capital structure - Management emphasized a disciplined approach to reducing leverage while exploring asset sales that do not compromise portfolio quality [72][75] Question: Land business and monetization options - Management acknowledged ongoing divestments in the land business and indicated that structural changes are being considered [87] Question: Capital injection and asset separation - Management clarified that while capital injection is not currently planned, they are open to exploring options for asset separation if beneficial [100][101]