Good morning, everyone. First and foremost, thank you so much for joining us today for our Q1 earnings call, Orizon Valorização de Resíduos.

I am here with Marcelo. I am in transit, Leonardo will start the presentation, talk about the operating and financial highlights, and I'll be back to join you as we move down the presentation and to talk about the company's outlook for the future.

Leo, over to you, please.

Thank you, Pilão. Thank you, everyone.

We start off by talking about the events in the period, the first quarter of 2026, and the highlights for Orizon Valorização de Resíduos. On page 5, if you will, now on the screen, we highlight a growth in revenue.

The company reported a revenue 37% above a net revenue when compared to last year, growth always when compared to previous quarter, EBITDA of 143.4 million, 30% up from last year same period, and a net income of 22.6 million BRLs, a reversal of losses posted in the first same period of last year. As we mature our projects going forward, we'll see a higher conversion levels into EBITDA and bottom line.

At the second chart, on the second block, we see a volume highlight. The company reported a growth in volume of 6% vis-à-vis the same period in 2025, a gate fee of about 91 reais, a real growth of 5.9%.

The company was asked repeatedly last quarter about the price behavior. We had been saying that last quarter's behavior was not structural.

Structurally, we would be expecting a gain in average price above inflation, thus strengthening our thesis. We are now reporting in Q1 2026 the continuity of a price gain in real terms for residue destination with a total volume received of 2,306,000 tons of residue.

As for carbon credits, yet another piece of good news. The company once again reports revenue for the sale of carbon credit in the fourth consecutive quarter.

We started last year when we announced Q1 '25 results. We reported the sale, which is only accounted for or it will be accounted for in the future, the sale for Google in Cuiabá landfill.

That's the fifth consecutive earnings call where we talk about the sale of carbon credits, and revenue is only recognized when you do have the sale and the delivery of the final product. So 388 million tons of carbon credits sold.

With a highlight also to the registration of the São Gonçalo project, our sixth project to be registered in the volunteer market. Biomethane, on the star bottom left of the slide, also a highlight.

In the past few months, we inaugurated the plant in Paulínia and Jaboatão, and they are operating in line with the contracted volumes, already operating at a level above that one you see on the slide. We closed March at 112,000 cubic meters a day for both projects, with a contribution margin above 65%.

That, of course, will gain traction as we move forward. As you have more scale, fixed costs are diluted.

I think an important milestone for the company as we start production and generation of biomethane in two of our largest ecoparks. On the fifth block, bottom line, the capacity auction.

Orizon participated in the auction capacity managed by the federal government in the first quarter with our three thermal plants: Paulínia, where I served, João Pessoa also. Once again, those thermal plants, some of them are still generating energy, such as João Pessoa going down, but still generating.

With the migration to biomethane, it makes all the sense to have those thermal plants, which already have CAPEX realized, to include them in a capacity auction to try and meet demand coming from the federal government with a revenue of 80 million, a 10-year contract in force as of '26 for Paulínia. Of course, we had to also highlight the event where we celebrated late last year the incorporation of Vital.

We had significant advances in the quarter. According to the most recent date, we have the approval from the consumer defense agency with no restrictions.

We have a closing expected for the second quarter of 2026. We are moving full steam in our integration plan.

All the synergies have been mapped out. We have a second quarter going forward with a lot of good new things as we close it in a couple of months.

As for the Vital incorporation, picking up from the previous slide, these are the terms of the negotiation. The company is now on the verge of calling for a shareholders' meeting to complete the incorporation as per governance procedures starting with shares, 41 million shares to be issued by Orizon and with the underwriting [fingers?]

to those we did in the last follow-on. That's the structure after the integration.

The main highlights, the consumer defense agency, as I said, the 100-day plan also underway. The main preceding conditions already met, as you can see, for creditors, over 20 work groups to integrate, 20 active groups thinking about opportunities, mapping out alternatives, thinking about the D+1 after the integration.

The closing, as I said, expected for June this year. Of course, it's only natural that the company to sit down and revisit the numbers, look at the strategic plan within a mid- to long-term.

Larger numbers of the combined company talked about it last December just as a recap. As you look at the first quarter as well, Vital announced, today is Friday, on Wednesday, Vital announced numbers, results.

It's also on their release so we can do this exercise. The combined company after the transaction reports on a quarterly basis a volume of about 3.7 thousand, this is annualized, as I said, talking about something between 14-15 million tons.

I'm doing the math here by myself. Biogas: 78,000 cubic meters per hour.

Revenue of 780 million, third line, doing quick math here, in annual terms, something like 3 billion and 200 million, 3.2 billion BRLs. As for EBITDA, 284 million, and net income, 109 million in the quarter.

An EBITDA above 1 billion BRLs and net income to the tune of 400 million, doing quick math, multiplying that by four. Synergies already identified, it's worth mentioning, after the incorporation, capture of biogas, SG&A, OPEX for the assets, and of course, a more efficient CAPEX structure.

That's worth mentioning. We'll see that bring the results in the short run, and also additional efficiencies to be gained, average prices.

In other words, I think we do have lots of good news to share in the coming quarters as we incorporate Vital into Orizon. On page 7, we have a highlight for the commercial ramp-up of the biomethane plants.

Those are pictures for those of you who do not know the areas. You are all invited, by the way, to pay us a visit.

On the left-hand side, the Paulínia plant; on the right-hand side, the Jaboatão plant. On the left-hand side, 49%, 100% for Jaboatão, average production 40,000 in Paulínia, just about, give or take, in the first quarter, 27,000 in Jaboatão.

Plants today in Paulínia, 225,000 cubic meters of capacity per day; in the first phase of Jaboatão, 110. The contracted volume: 180,000 to 300,000, Jaboatão, 110 to 130.

That's the range for the off-taker contract. For Paulínia, it's Edge, a subsidiary of Compass, and Jaboatão, Copergás, a local distribution company.

It's worth mentioning that the volume is in line with what was contracted. We are March, Paulínia 70,000, Jaboatão 40,000.

Last night, I called the operational office, and confirmed that today we have both plants at the same level, closer to 70, 75,000. We're running at 140, 140,000, and we reached 200,000 by the end of the first half of the year, both plants 100,000 each, very much in line with what was expected in the contracts with Edge and Copergás.

On page 8, we have the carbon credits highlight. 450,000 credits generated a year.

This our sixth ex-Vital project. Vital also does have a broad portfolio around carbon credits.

We have registered that in the volunteer market. We do have initiatives in the previous Kyoto Protocol, which guides the regular market, also within the umbrella of the Paris Accord, but six projects volunteer, six projects in Gold Standard.

We highlight how our carbon team has been doing a great job in bringing rating agencies to provide some comfort to the markets in respect to all things related to this type of project, not only greenhouse effect mitigation, but also socio-environmental aspects measured by those agencies. In São Gonçalo, we highlight the rating A by BeZero.

This morning, I was talking to people here, from yesterday, we had Maceió and Sergipe also receiving ratings from these agencies, proving the quality of these projects. Increasingly, we see a recurrence.

Right? As we diversify projects, as we broaden our scope, we have more profiles of plants, and we are now reaping the results of those plants that we designed years back.

Chapter 2, page 9, operating highlights for Orizon in the first quarter 2026. Received volume 6% up from the same period of last year.

When compared to previous quarter, 2.5% above. Average price, 91 reais per ton, 10% above the same period of last year, 5.9% in real terms of price growth, and 9% above the last quarter of 2025, Q4.

Biogas, carbon credits, and energy generated, they moved along together when it terms of drop for different reasons, of course. Biogas, we see both for Paulínia and Jaboatão, migrating to biomethane, that's the main reason for that volume.

Biogas, energy having come down, that's provisional in terms of carbon credit. As carbon credit moves forward and they incorporate biomethane, projects will resume previous levels.

Biogas is also going through a transition as we move from biothermal to biomethane. You'll see a drop, the volume in energy, because you have essentially biomethane dispatching for those plants.

On page 11, we talk a bit about average price. Since 2024, we've had an average price of IPCA plus 5.4% a year, a CAGR of 9.9% a year in terms of price growth, moving from 75.46 in Q1 '24 to 91 reais per ton in Q1 '26.

Some reasons behind that: more recently, we had yet another stage of a new concession. We had an impact in January.

Also a residue mix, new residue, I like to say, does not have a contractual history, you can position that in a better range of price. When you have a contract legacy, if you will, you have maturity dates, you have other opportunities to push price above inflation.

In any event, our trajectory, our momentum has been positive in terms of gaining in real price quarter-on-quarter. On the right-hand side, some of the main drivers for that growth, especially in terms of volume: the asset in Aparecida de Goiânia, Porto Velho, Sergipe, and Jaboatão dos Guararapes.

We are quite comfortable, if I may, that we should continue to see growth in volume and in price above inflation for the coming quarters as we've seen throughout the first reports we announce to the market and to the board as well. On page 12, we talk a bit more about the biomethane and carbon credit.

For biomethane, our production on average in Q1 was 66,000 cubic meters a day, in March already 110, yesterday 150, as I said, and we'll close June at a level of 200,000 cubic meters a day of biomethane on both plants, Jaboatão and Paulínia. I have a range for Paulínia 180 to 300, and Jaboatão, the range is 110 to 130,000 cubic meters a day.

As for the contracted pipeline for biomethane, we have the Itapevi, Tremembé plants under construction, expected to start working at the end of '26, early '27, and Guatapará by 2028, '27, '28, Guatapará and Curitiba. For carbon credits, 11.5 million BRLs in revenue in Q1 '26, a sold volume of 390,000, give or take, credits, 554,000 credits generated in Q1.

Here, once again, for the Gold Standard, we had yet another project being registered, the São Gonçalo Ecopark. Now moving on to the financial highlights on page 13, if you will, we had net revenue growing 37.5%.

Once again, I think highlighting growth in volume for residue, growth in price, the commercial start-up of the plant of biomethane, and recurrence in the sale of carbon credits. As for energy transition, in addition to that, we had a highlight coming from a relevant revenue from 42 million, give or take, which is from a recomposition of ballast in Barueri.

It will start operating early in '27. We already had a PPA, which started supplying to clients in January this year, the federal government.

We bought energy to deliver to this auction. There is no result.

It's neutral energy in terms of results, you have revenue, technical glitch there, so that compresses margins. The same thing happened for the thermal plants that we bought a year and a half ago.

They had contracts in place to sell energy in the long run. When we did the M&A, when we acquired, we left that in a neutral position in terms of energy sale.

That's what had been arranged with the seller, we have about 42 million in revenue. Choppy sound quality, I apologize for that.

If you exclude those effects, you will have a margin in percentage terms which is above what had been reporting for the energy transition because of the biomethane plants as well. About gross income, EBITDA, and net income: 182 million in terms of gross income, 27% above last year.

Margin was impacted by the effect of the ballast recomposition and the thermal plants trading flat in the results, but still a growing margin. In the release, we highlighted that margin excluding the effects from the thermal.

In fact, that would be about 63%. EBITDA grew by 30.5% compared to same period of last year, 143 million reais, and a net income of 22 million, reversing losses posted in the same period of 2025.

On page 16, we have our main topics around our capital structure. The company has a net debt EBITDA ratio which is balanced, which reflects investments made in growth projects.

So 2.5 times net EBITDA with an average term of above 8 years, a long debt profile, different funds as listed here on this slide supporting our biomethane projects in the Northeast, debentures from URE Barueri, 19-year debentures, and the issuances we made late last year, CDI plus 1.40% a year in terms of capital cost. On the left-hand side, the company today has bonus for underwriting to be converted by the market in between May and June 2027, this window, May through June, securities which is favorable.

The company, in addition to having a balanced capital structure, with the incorporation of Vital, payment in shares, your balance sheet is lighter, to be leveraged. With the bonus of underwriting, a company which already has a balanced capital structure will be even readier to convert its growth plan into reality.

As for CAPEX, a quarter where we had relevant investments with a highlight to energy transition projects, waste-to-energy and biomethane, 180,000 182 million in investments for first quarter. I now turn it back to Pilão for his comments on next steps, and then we'll be taking your questions and comments after that.

Thank you.

On my side, once again, we showed results which are quite consistent. I always also like to say that the best is yet to come.

As Leo said, within the second quarter, we will have shareholders' meeting to conclude or do the closing, as we call it. Our guidance for Q3 will be put in place, and this incorporation has been giving us lots of good news in terms of synergies to be explored.

Today, we have about 20 active groups, as mentioned, working on those synergies. We've seen huge number of synergies which will be captured when the two groups combine their expertise, one helping the other.

Also good news as we unify, re-align the teams. Vital has a very robust team with a culture which is similar to ours, what we see now as we integrate both companies, we do have good news on that front.

The 100-day plan is ready. We are already putting together a new five-year strategic plan for the company.

I think you can see by the combined results for Q1, it is a company which is already at a 1.2 billion in EBITDA in Q1, annualized, of course. In any event, that shows that both companies together will bring even more efficiency in terms of growth, organic growth, as it captures the many synergies: biogas, biomethane, carbon credits, integrated management of all the assets.

I think, with this closing or as of the closing, we'll have very exciting quarters going forward. In addition to that, we also talk about the regulatory progress.

That's important to mention. You saw that the fuel of the future defined a minimum percentage for biomethane of 0.5%.

This will be announced in the coming three or four months, and the ramp-up of that 0.5 in the next few years. That consolidates a structural demand for biomethane and for CGOB, which is really good, it's good news.

CGOB, it's not even monetized in our projections, today we'll be able to see a market that will define a value for that certificate, which is really good. We also have news in the mobility front, the first sales to the mobility market replacing diesel.

It's a very important topic given the war and the variation of fuel prices. We now see a very interesting front for biomethane to grow as it replaces diesel for urban mobility: trucks, buses, garbage trucks, and so on.

In addition to that, along the same lines, biomethane with the Vital plants, which are also under construction, we'll see in the coming two years, actually already have a new biomethane plant becoming operational at every three months, it's a very strong growth agenda for biomethane already ongoing, with plants, as I said, becoming operational at every three months. In terms of volumes, we've seen growth better.

We announced once again seeing more maturity across the assets and capture of residues which were previously sent to landfills. Yet another perspective to see growth above GDP, a recurring growth.

As Leo said, here once again, we're able to show our ability to expand the gate fee at a level above inflation in yet another quarter. We expect to maintain that pace in the coming quarters as well.

On the bottom line, the LRCAP, as Leo mentioned the LRCAP, just to mention the capacity we have to adapt at fast speed to be able to capture those opportunities. The LRCAP is an auction, as you know.

Those plants were there. Our original plan was to deactivate those companies.

We were not even looking at those as equity for the company. The company quickly got better to participate in the auction, and we won the auction for those three plants.

This will bring an additional fixed revenue, which was not contemplated, of 80 million BRLs a year. That shows our ability to be always ready to move, to react when the opportunity comes.

Now in number 5, carbon yet another quarter with increased sales. We continue to see that as we move forward.

We have another front coming from Vital, São Gonçalo. We have the expectation of having good recurrence in carbon and the sale of carbon credits.

Also on the side of the regulated carbon credits, with good expectations on both fronts. In the mid-run, this will certainly impact price and volume as we continue to sell carbon.

Lastly, about our consolidation platform, of course, the question always emerges: given our low leverage level after the closing, it will be below 1.5 times, where does the in-organic growth plan sit? As I mentioned earlier, in the first quarter, we focused on integrating Vital, the main working focus in the first quarter was to prepare the company so that that closing in Q2 unfolds as efficient and as smooth as possible.

Now in the M&A area, we have yet another robust pipeline for landfills, which will bring another couple of million tons of residues to our base. As of the second quarter, you will see us going back to our M&A platforms buying landfills.

When we buy landfills, we bring our MMO basis on, we control biomethane molecule, we control carbon, and we can monetize the whole residue base that the company absorbs. Having said that, we have very good expectations as we move forward, very excited, and I close my comments here.

I thank you all once again for being here, for participating, and we're now available for questions or comments you may have. Thank you.

Good morning, Milton, good morning, Leonardo. I have two questions.

Number one, about biomethane: you showed us a very high margin, 65%. It seems to be shadowed by the fact that you had to recompose the energy contracts that you had because of biomethane coming into the equation.

On more normalized basis, what do you expect in terms of margins for biomethane? In relation to Vital, in previous calls, you've mentioned an incentive plans for the short- and long-run.

How does Vital see that? Are they in agreement, in accordance?

Are there any news on that front? Thank you.

Hi, André. This is Leo speaking.

Thank you for your questions. As for biomethane, yes, we have been expecting margins above 65% when the plant is at full steam.

We're not there yet, as I mentioned, naturally, as you move forward to reach full capacity, you tend to dilute fixed costs even further. You'll see a contribution margin increasing then from that level.

If we observe in the mid-run the sale of environmental attributes, you have yet another revenue source with an even stronger margin. That's for your first point.

The answer is yes, you should expect a higher level of contribution for the biomethane plants. As for your second question, and you mentioned incentives, what kind of incentives are you talking about?

Do you have in mind? Sorry, I missed part of your question.

In the previous call, somebody mentioned that the company had plans to incentivize employees, the high management. If with the Vital coming in, has there been any change,

or does that remain the same? Oh, we are quite in line.

Now I got it. It's like a marriage.

You have to make plans before you get married, right? The shareholders are all in line with the controlling shareholders.

Everybody's on the same page, if you will, very much in line. This was thoroughly discussed before the transaction was closed, the way to think about incentives, the way to bring executives in line with the company's plans, that's say very much settled, if you will.

Leo, if I may, just to add, Vital also had incentive plans in place, just to be sure, more for the short run than for the long run. As we are listed, we do have a long-term plans for executives that also have stock options.

I think the idea for the company for this year is to maintain the same incentive plans in parallel. The consolidation will only happen in midyear, we'll have six months together, six months separated.

We decided to keep the same bonus and target plans for all executives as if they were moving in parallel for the whole year. Throughout the year, we have already hired Korn Ferry and other culture consultancy companies to unify the plans because as of 2027, we will have one single unified plan.

As I said before, culture of the executives from Vital is very much our culture, this task ahead of us will be relatively smooth as we unify those plans for 2027. Thank you.

Good morning, everyone. Thank you for taking my questions.

From my side, there are two. Number one, about M&A: so you have just mentioned that you have a robust portfolio, you'll be paying attention on that for the second half.

Given the macro scenario, which is still challenging, and high interest rates throughout the year, do you think this will affect the market more than before? Number two, about the state-led programs: we have the Integra program in São Paulo.

Anything happening from other states in terms of state programs for energy? That's what I had.

Thank you. Ricardo,

thank you for your question. I'll start, and then Pilão will jump in.

As for the the M&A part of the question, we have two angles: the macro angle, high interest rates, as you mentioned, a more nervous environment. That tends to demand higher discount rates and lower multiples, a more more discipline, right, when we make a decision to invest and define prices.

Of course, as this market has is more in the spotlight, we'll have more competition. We are paying attention to that.

We continue to work in a very disciplined way looking at the right price for us to capture the right price for us to capture the opportunities. As I mentioned, our balance sheet will be lighter after the Vital incorporation because there's more deleveraging, because the transaction is based on shares.

When you look at the price of the conversion to a lighter balance sheet, from the point of view of internal operations, we are ready to continue to convert, acquire. In the macro environment, we need to balance interest rates on the one hand, but it is an industry where we see opportunities, of course, with competition also increasing.

This is Pilão speaking. I think as for the state programs, concessions, of course, Orizon, as a pioneer in the area of the residue valuation, we monitor all initiatives coming from state programs or from the BNDES, Caixa Econômica.

The BNDES recently put together a concession program originally spread. We have Integra in São Paulo, as you mentioned.

It's still maturing as we speak, but it's a very nice program, a big program. We'll not only monitor it, but we'll try to actively participate as those models take shape so that they become more attractive for private investments, not only from Orizon, from any other competitors, but we try to participate helping them shape and format.

I'm talking about BNDES, Caixa Econômica, the bank, as they develop those programs. I think that Orizon, you will see Orizon throughout the coming years and quarters being increasingly ready to participate in concession programs that will be controlled either by the state or by city.

Today, they have different formats being assessed. We will always be ready.

When I talk about the LRCAP, as I said, we have a very efficient team in place ready to go to capture opportunities when they emerge. We are quite tuned to the concession programs.

We do also have an internal program where we actively knock on the doors of cities and actively propose public-private partnerships.

Okay? Thank you.

Hello, good morning. Thank you for taking my question.

I have a question which is the following: how is Orizon seeing the IPO process of Compass and the partnership with the Paulínia plant? Now that the company has gone public, how do you see that, and also the participation of Edge in that mix?

Thank you.

Hi, Arthur. Thank you for the question.

Compass is our partner in Paulínia, but also an off-taker in Itapevi. It's a very good partnership, only good things to tell you about that.

A very positive environment overall, all in all. As for the projects which are ongoing, I think both companies, of course, we have different angles: fossil molecules and different portfolios.

It's important for us as a complementary activity to what we do in landfills, ecopark, but for whatever reason, we are all quite excited and with a positive outlook. Of course, it is a potential natural client for us and also a partner in other projects just as other large groups in the sector, in the industry.

That's it. It's difficult for us to talk about a partner who is also a public company.

What I can tell is that they're great partners in a very collaborative environment. Contracts are in place, and of course, future potential clients in other projects.

That's as much as I can say.

Thank you.

Hi, Francisco. It's a very similar answer when I talked about concession projects.

The answer is yes. Of course, Orizon, as a leader in this market, we participate in modeling those projects which usually go through public consultation processes and so on.

Right now, you can see, for example, in Goiás, as I mentioned, a well-advanced project with Goiás, with the government, Integra in São Paulo, Caixa Econômica across Brazil. We have been contributing to those processes specifically when you talk about technological processes given that we already operate and have real data in terms of residue recovery, the economics of those processes.

We also help them model the processes, as I said, in terms of guarantees, terms, targets. It is, without a doubt, part of our mid- to long-run view to be always ready to participate in those auctions now being put together for new concessions.

Francisco, this is Leo speaking. A quick math here will lead me to the following: Vital with the Gbio plant, something about 800,000 cubic meters a day of biomethane, 600 to 800, when it matures in the short run, and they have the Metagás project, which is for Macaúbas, already with an off-taker in place.

They'll start operating later this year, early next year, between 600 to 800 at the same price level we've been talking about, 3 to 3.20 reais per cubic meter, the contribution margin we just mentioned, it shouldn't change. We're talking about the same suppliers, same technologies.

A quick math will lead you to 3.20 as price, contribution margin above 65% for that volume per day, 600 to 800,000 cubic meters a day. When it becomes mature, that combined company will have other projects, of course, the combined company will reach 2 million cubic meters a day for biomethane, adding Orizon plus Vital.

A revenue and EBITDA and margin contribution will be relevant numbers for the coming periods. Once

Once again, thank you all for joining us today to discuss first quarter results. We remain available for other comments or questions you may have.

Thank you once again, and have all a nice day. Orizon's audio conference is now over.

Thank you all for joining, and have a nice day, everyone.