RAIZ4 Raízen

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 established 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% ownership stake for each group. Its origins, however, date back to the early 20th century, through Shell’s historical assets in Brazil, which began with The Anglo Mexican Petroleum Products Company, Limited, 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 incorporated the spun-off assets of Cosan Combustíveis e Lubrificantes S.A., consolidating the foundation of the fuel distribution business. In 2021, Raízen obtained an A-category public company registration with the CVM and carried out 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 supply bases, and an extensive network of service stations under the Shell brand in that country. In 2019, it formed a strategic partnership with Femsa Comercio through Raízen Conveniências, a joint venture that structures the operation of 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 to operate port terminals in Belém, Vitória, and Cabedelo, strengthening the fuel logistics infrastructure. In 2021, after a corporate reorganization, Raízen began to directly control Raízen Energia S.A., integrating in a single group the production of ethanol, sugar and bioenergy with fuel distribution. In the same year, it completed the acquisition of Biosev S.A., significantly increasing its sugar-energy production capacity, and began its entry into the Paraguayan fuel market by acquiring an interest in Barcos y Rodados S.A.

Raízen’s business model is structured around three major fronts: fuel distribution, the EAB segment (Ethanol, Sugar, and Bioenergy), and other related businesses such as convenience and financial services. The main source of revenue 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 and lubricants, serving service stations, B2B customers and large consumers. In EAB, the company produces and markets sugar, first- and second-generation ethanol, bioenergy, biogas and biomethane, and also engages in trading operations for these products and for electric power. The integrated structure allows it to capture synergies between sugarcane-based production and distribution logistics, while maintaining the economic predominance of the fuel marketing and delivery activity.

Operations in the ethanol, sugar and bioenergy segment give Raízen a prominent global position in the sugar-energy value chain. The company closed 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 aimed at export markets — and second-generation ethanol (E2G), produced from lignocellulosic biomass, such as sugarcane 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 cane in certain products. The company also converts industrial residues, such as vinasse and filter cake, into biogas and biomethane, and sells surplus electric power mainly in the free market, through bilateral contracts and by 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 across the entire country. The company operates more than 70 land and port logistics bases, supplied by different transport 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 service stations, large consumers and Transportadores-Revendedores-Retalhistas (TRRs). The portfolio includes regular gasoline and Shell V-Power additive 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 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 the manufacturing of lubricants, keeping Shell as its main commercial brand. The Buenos Aires refinery, with capacity to process around 109.7 thousand barrels per day, is the industrial core of the company’s operations in the country, integrating supply to the service station network, land terminals, airport supply bases and extensive domestic logistics. The company produces and sells lubricants for automotive and industrial applications and operates Shell Select convenience stores, mirroring the Brazilian model. In Paraguay, the interest in Barcos y Rodados S.A. marks its formal entry into the mobility market, focused on retail fuel sales. The combination of these geographies means that a significant portion 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 subject to a broad regulatory framework involving different agencies and public bodies in Brazil. In the fuel and biofuel distribution segment, the company is mainly regulated by the National Agency of Petroleum, Natural Gas and Biofuels (ANP), as well as environmental authorities and other competent public entities. In bioenergy and electric power trading, the company operates under power sector rules defined by the Ministry of Mines and Energy and overseen by the National Electric Energy Agency (ANEEL), interacting with the National Electric System Operator (ONS) and the Electric Energy Trading Chamber (CCEE for the registration, accounting and settlement of contracts and short-term operations). The operation of port assets is subject to regulation by the National Agency for Waterway Transportation (ANTAQ), while the supply of aviation fuels depends on access and infrastructure rules under the competence of the National Civil Aviation Agency (ANAC), whose decisions affect the fueling model at strategic airports such as Guarulhos and Galeão.

From a market and customer standpoint, Raízen shows broad diversification, with no relevant revenue concentration in any single buyer or economic group, since no customer accounts for 10% or more of consolidated net operating revenue. In Brazil, the company serves a large base of fuel resellers, service station networks, B2B customers, state governments and sectors such as transportation, aviation and industry. In the EAB segment, the global reach of sugar and ethanol — including markets with specific demand for second-generation ethanol and Non-GMO products — complements its exposure to the domestic fuel market and to power 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 marketing, as reflected in its revenue mix and in the way it is positioned on B3 through RAIZ4 shares.

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