RAIZ4

Raízen S.A. is a Brazilian publicly held company, with preferred shares traded on B3 under the ticker RAIZ4 and listed in the Level 2 Corporate Governance segment. The company was formed in 2011 from the combination of assets of Cosan S.A. and Shell Brasil Holding B.V., structured as a joint venture with an equal 50% stake for each group. Its origins, however, date back to the early 20th century through Shell’s historical assets in Brazil, beginning with The Anglo Mexican Petroleum Products Company, Limited, which was authorized to operate in the country in 1913. Over the decades, this structure underwent several corporate reorganizations until the creation of Raízen Combustíveis S.A. in 2011, when the former Shell Brasil merged the spun-off assets of Cosan Combustíveis e Lubrificantes S.A., consolidating the foundation of the fuel distribution business. In 2021, Raízen obtained A-category public company registration with the CVM and conducted its initial public offering, reinforcing its position in the Brazilian capital markets.

Raízen’s expansion trajectory includes significant acquisition and reorganization moves. In 2018, the company completed the purchase of Shell’s downstream business in Argentina, taking control of a refinery, lubricant plant, land terminals, airport fuel supply bases, and an extensive network of service stations operating under the Shell brand in that country. In 2019, it entered into a strategic partnership with Femsa Comercio through Raízen Conveniências, a joint venture that structures its presence in Shell Select convenience stores and OXXO markets in Brazil. In the same year, the company partnered with Vibra Energia and Ipiranga in special-purpose entities for operating port terminals in Belém, Vitória, and Cabedelo, strengthening its fuel logistics infrastructure. In 2021, following a corporate reorganization, Raízen began to directly control Raízen Energia S.A., bringing together in a single group the production of ethanol, sugar, and bioenergy and the distribution of fuels. That same year, it completed the acquisition of Biosev S.A., significantly increasing its sugar-energy capacity, and began its entry into the Paraguayan fuel market by acquiring a stake in Barcos y Rodados S.A.

Raízen’s business model is structured around three main fronts: fuel distribution, the EAB segment (Ethanol, Sugar and Bioenergy), and other related businesses such as convenience and financial services. The main revenue source is fuel distribution, which in the fiscal year ended March 31, 2025 accounted for around 75% of consolidated net operating revenue, while the EAB segment represented about 25%. In distribution, the company sells gasoline, ethanol, diesel, aviation kerosene, compressed natural gas for vehicles, and lubricants, serving service stations, B2B clients, and large consumers. In EAB, the company produces and sells sugar, first- and second-generation ethanol, bioenergy, biogas, and biomethane, and also engages in trading operations for these products and for electricity. Its integrated structure allows it to capture synergies between sugar-energy production and distribution logistics, while maintaining the economic predominance of fuel trading and delivery activities.

Its operations in ethanol, sugar, and bioenergy give Raízen a prominent global position in the sugar-energy value chain. The company ended the 2024/2025 harvest with installed capacity to process 89 million tons of sugarcane at 29 mills, all self-sufficient in energy through cogeneration based on sugarcane bagasse. The portfolio includes multiple types of ethanol—anhydrous, hydrous, industrial and neutral grades, as well as specifications geared toward export markets—and second-generation ethanol (E2G), produced from lignocellulosic biomass such as cane bagasse and straw using proprietary technology. In sugar, Raízen produces liquid, refined, crystal, organic varieties and raw VHP sugar, exporting to dozens of countries and operating supply chains with full traceability and non-genetically modified sugarcane in certain products. The company also converts industrial residues such as vinasse and filter cake into biogas and biomethane and sells surplus electricity mainly in the free market through bilateral contracts and structuring PPAs with industrial and commercial customers.

In fuel distribution in Brazil, Raízen operates under the Shell brand through a network of franchised stations and independent dealers spread throughout the country. The company operates more than 70 land and port logistics bases supplied by different transportation modes, including pipelines, cabotage, road, rail, and river transport, which support the movement of petroleum-derived fuels and biofuels from refineries, ports, and plants to stations, large consumers, and Transportadores-Revendedores-Retalhistas (TRRs). Its portfolio includes regular gasoline and Shell V-Power premium gasoline, regular diesel and Shell Evolux Diesel, CNG, Shell Aero Jet A-1 aviation kerosene, and a range of automotive and industrial lubricants under brands such as Shell Helix, Rimula, Spirax, and Gadus. In addition to fuels, the company develops convenience and proximity retail businesses with Shell Select stores, Shell Café, and OXXO markets, leveraging synergies with customer traffic at service stations.

In Argentina, Raízen’s operations cover both refining and fuel distribution and lubricant manufacturing, with the Shell brand as its main commercial banner. The Buenos Aires refinery, with capacity to process around 109.7 thousand barrels per day, is the industrial core of its operations in the country, integrating supply for the station network, land terminals, airport fuel supply bases, and an extensive internal logistics structure. The company produces and sells lubricants for automotive and industrial applications and operates Shell Select convenience stores, mirroring the model used in Brazil. In Paraguay, its stake in Barcos y Rodados S.A. marks its formal entry into the mobility market, with a focus on retail fuel sales. The combination of these geographies means that a significant share of Raízen’s net operating revenue is generated outside Brazil, with around 35% of revenue in the 2024/2025 fiscal year coming from customers based abroad.

Raízen’s operations are part of a broad regulatory environment involving different agencies and public authorities in Brazil. In the fuel and biofuel distribution segment, the company is mainly regulated by the National Agency for Petroleum, Natural Gas and Biofuels (ANP), as well as environmental agencies and other competent public entities. In bioenergy and electricity trading, the company operates under power sector rules defined by the Ministry of Mines and Energy and supervised by the National Electric Energy Agency (ANEEL), interacting with the National Electric System Operator (ONS) and the Electric Energy Trading Chamber (CCEE for registering, accounting for, and settling contracts and short-term market operations). The operation of port assets is subject to regulation by the National Waterway Transportation Agency (ANTAQ), while the supply of aviation fuel depends on access and infrastructure rules under the authority of the National Civil Aviation Agency (ANAC), whose decisions affect the fuel supply model at strategic airports such as Guarulhos and Galeão.

From a market and client perspective, Raízen has a highly diversified base, with no material revenue concentration in a single buyer or economic group, as no client accounts for 10% or more of consolidated net operating revenue. In Brazil, the company serves a wide base of fuel resellers, station networks, B2B clients, state governments, and sectors such as transportation, aviation, and industry. In the EAB segment, the global reach of sugar and ethanol, including in markets with specific demands for second-generation ethanol and Non-GMO products, complements its exposure to the domestic fuel market and to electricity generation from biomass. The combination of fuel distribution activities with the production of biofuels and bioenergy makes Raízen an energy company with a strong presence in liquid and renewable fuels, but with an economic profile predominantly anchored in distribution and trading, as reflected in its revenue mix and in how it is positioned on B3 through RAIZ4 shares.

From an environmental, social, and governance standpoint, Raízen’s businesses involve issues such as efficient use of natural resources, management of waste from the sugar-energy industry, impacts of emissions associated with fossil and renewable fuels, and regulatory commitments to environmental agencies. The use of residual biomass to produce biogas, biomethane, and bioelectricity, the elimination of pre-harvest burning in sugarcane fields through mechanization, and the development of second-generation ethanol are elements that align with the energy transition and low-carbon economy guidelines. Listing on B3’s Level 2 segment indicates adherence to differentiated corporate governance practices with specific requirements on transparency, ownership structure, and shareholder rights, aspects that are relevant for assessing risks and alignment among controlling and minority shareholders and other stakeholders in the context of trading RAIZ4 shares in the Brazilian market.