2Q17 Earnings Release - Cosan IRir.cosan.com.br/enu/1823/2Q17EarningsReport_CSAN3_Eng.pdf · 2Q17 Earnings Release São Paulo, August 09, 2017 – COSAN S/A INDÚSTRIA E COMÉRCIO

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COSAN S/A 2nd Quarter of the Fiscal Year of 2017

2Q17 Earnings Release

São Paulo, August 09, 2017 – COSAN S/A INDÚSTRIA E COMÉRCIO (B3: CSAN3) announces today its results for the second quarter (April, May and June) of 2017 (2Q17). The results are presented on a consolidated basis, in accordance with the

accounting practices adopted in Brazil and with International Financial Reporting Standards (IFRS). Comparisons in this report take into consideration 2Q17 and 2Q16, except where indicated differently.

2Q17 Highlights

Executive Summary - Cosan Pro forma¹ 2Q17 2Q16 Chg. % 1Q17 Chg. %

BRL mln (Apr-Jun) (Apr-Jun) 2Q17/2Q16

(Jan-Mar) 2Q17/1Q17 Net Revenue 11,636.1 11,420.1 1.9% 11,603.2 0.3%

Gross profit 1,036.9 1,500.3 -30.9% 1,374.1 -24.5%

EBITDA 804.2 1,249.9 -35.7% 973.8 -17.4%

Adjusted EBITDA² 1,126.2 1,014.3 11.0% 1,183.6 -4.8%

Net Income (Loss) (76.0) 279.9 n/a 205.3 n/a

Adjusted Net Income (Loss)2 24.5 163.3 -85.0% 232.5 -89.5%

CAPEX 424.7 411.0 3.3% 639.0 -33.5%

Free Cash Flow to Equity3 613.4 41.5 n/a 138.5 n/a

Net Debt4 9,620.0 11,503.6 -16.4% 9,396.5 2.4%

Leverage (Net Debt/EBITDA LTM)⁵ 2.1x 2.5x -0.4x 2.0x 0.0x Note 1: Considering 50% of the results of Raízen Combustíveis and Raízen Energia

Note 2: Adjusted Net Income (Loss) and EBITDA excludes non-recurring effects in the quarters, as detailed on page 5 herein.

Note 3: Cash Flow to shareholders, before Dividends paid (Free Cash Flow to Equity).

Note 4: Includes obligations with preferred shareholders on subsidiaries.

Note 5: Considering Net Debt and EBITDA LTM normalized by Comgás' current account effects.

Cosan posted pro forma adjusted EBITDA of R$1.1 billion (+11%) and adjusted net income of R$24 million.

Cosan’s pro forma free cash flow to equity (FCFE), considering 50% of Raízen’s results, increased and reached R$613

million in the period. Leverage (net debt/pro forma EBITDA) remained at 2.1x.

Raízen Combustíveis posted adjusted EBITDA of R$557 million (-7%) with 2% growth of total sales volume.

Raízen Energia initiated 2017/18 crop with 19 million tons of cane crushed and adjusted EBITDA came to R$804 million

(-4%) in 2Q17.

Comgás posted normalized EBITDA of R$460 million (+38%) with higher volume sold in main segments.

Earnings Conference Call on August 10, 2017 (Thursday)

Portuguese – 10:00 am (Brasília time) |

9:00 am (EST)

Dial-in: + 55 11 3193 1001

+ 55 11 2820 4001

Code: COSAN

English – 11:00 am (Brasília time) |

10:00 am (Est)

Dial-in (BR): + 55 11 3193 1001

+ 55 11 2820 4001

Dial-in (USA): +1 786 924 6977

Code: COSAN

Investor Relations

E-mail: [email protected]

Tel: +55 11 3897-9797

Website: ri.cosan.com.br

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Cosan S/A – Earnings Release 2nd Quarter of the Fiscal Year of 2017

A. Cosan - Consolidated Results

Business Units

Aiming at enabling the comparison of results in relation to previous period, we present consolidated financial information on a pro

forma basis, i.e., 100% consolidation of direct subsidiaries’ results and 50% of jointly-owned subsidiaries’ results, Raízen Energia

and Raízen Combustíveis. The pro forma data are reported merely as illustration and shall not be interpreted as a representation of

the accounting results.

Cosan's business units and interest in each reportable segment are shown below:

Raízen Combustíveis (50%) Fuel Distribution

Raízen Energia (50%) Sugar, Ethanol & Cogeneration

Comgás (63.1%) Natural Gas Distribution

Moove (100%) Lubricants, Basic Oils and Specialties

Cosan Corporate (100%) Corporate Structure and Other Investments

Comparisons in this report take into consideration 2Q17 and 2Q16, except where indicated differently.

Executive Summary 2Q17

Brazil has been showing initial signs of economic improvements. Inflation and interest rates keep falling while unemployment

index recorded first drop since 2014 and industrial production grew 0.5% in the first semester 2017 compared to same period last year being the best performance in the last 4 year. Despite political instability, Brazil took an important step forward with approval of labor law reform.

Cosan S/A Pro forma: Adjusted EBITDA was R$1.1 billion in 2Q17 (+11%), with Comgás’ improved normalized result being the main highlight. Natural gas sales in 2Q17 recorded growth in industrial, residential and commercial segments. At Raízen

Combustíveis, volumes sold outperformed market growth once again, reflecting the expansion and renovation of service stations network. At Raízen Energia, we initiated the 2017/18 crop with delay in crushing and with higher resale and trading volumes of sugar and ethanol following the commercialization strategy for 2017. At Moove, we delivered sales volume growth in Brazil and international operations, boosting EBITDA in the quarter. Cosan’s free cash flow to equity (FCFE) totaled R$613 million in 2Q17, while leverage (net debt/ pro forma EBITDA, Comgás Normalized) remained stable at 2.1x at the end of the period.

Raízen Combustíveis: Adjusted EBITDA went down 7% to R$557 million in 2Q17. Sales volume grew 2% when

compared to same period last year (3% from 1Q17) while market shrank 0.5% (source ANP). Otto cycle sales volume

grew 4% (5% in gasoline equivalent) while diesel sold by Raízen was up 1% from 2Q16. Differently from the dynamic

observed in 2Q16, when ethanol prices had an atypical performance, the quarter had a significant fall in ethanol prices, as

usual in the beginning of the crop. This effect, combined with gasoline and diesel price reductions announced by

Petrobrás, led to inventory losses in this quarter, partially offset by growth of volume sold and our efficient supply and

commercialization strategy.

Raízen Energia: Adjusted EBITDA (excluding biological asset variation, debt hedge accounting and the forex effect on sugar exports came to R$804 million (-4%) in 2Q17, affected by priority given to third parties’ product sales

due to the crop commercialization strategy, partially offset by higher average sales price. Crushing reached 19.2 million tons of sugarcane (-14%) due to higher rainfall volume earlier this quarter and a strong basis of comparison in 2Q16 when early crushing was anticipated to March 2016. TCH was 81 tons of cane/hectare, versus 92 tons of cane/hectare in 2Q16, when cane was available but not processed during off-season period). Average TRS stood at 124 kg/ton (+2%) in 2Q17 backed by investments in renewal of own sugarcane. Raízen’s production remains focused on maximizing sugar production - the mix reached 57% for sugar this quarter (55% in 2Q16). Our efforts to improve efficiency and cost reduction are also generating results. Comgás: EBITDA, normalized by regulatory current account effect, was R$460 million (+38%) in 2Q17, positively

impacted by growth in volumes sold and margins corrections in May 2016 and 2017. Sales volume in 2Q17 grew in almost all segments, totaling a 5% increase year-on-year. The 4% increase in industrial segment is due to higher one-off consumption in a few sectors as well as gradual sequential improvement of the industrial activity. Commercial sales volume was up 9%, reflecting the addition of new clients over the last 12 months. The residential segment volume grew 17%, backed by expansion in both gas distribution network and unit consumption, influenced by lower average temperature in the quarter compared to 2Q16.

Moove: EBITDA in 2Q17 was up 94% to R$53 million, as a result of higher volume sold across all markets, mainly

finished lubricants. The total volume sold grew 6% yoy.

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The following tables present the key operating and financial metrics of our businesses. Historical data for the information presented

can be found on our Investor Relations website (ir.cosan.com.br) in the Results Center. Statements with all financial and operational

data are presented starting on page 16 of this report.

Operating and Financial Metrics Raízen Combustíveis

2Q17 2Q16 Chg.% 1Q17 Chg.%

(Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17

Otto Cycle Volume (Gasoline+ Ethanol) ('000 cbm) 2,941 2,829 4% 2,900 1%

Gasoline Equivalent6 Volume ('000 cbm) 2,775 2,633 5% 2,755 1%

Diesel Volume ('000 cbm) 2,756 2,719 1% 2,625 5%

Adjusted EBITDA Margin7 (BRL/cbm) 89 97 -8% 111 -20%

Adjusted EBIT7 (BRL/cbm) 63 73 -14% 87 -28%

Note 6: Sum of gasoline and ethanol volumers, adjusted by the energy coefficient of 0,7221.

Note 7: Excludes non-recurring items, as detailed on page 5 herein.

Raízen Energia

Indicators 2Q17 2Q16 Chg.%

(Apr-Jun) (Apr-Jun) 2Q17/2Q16

Sugarcane Crushed (mln mt) 19.2 22.4 -14%

Average TRS (kg/tons) 123.6 121.2 2%

TRS/ha 10.0 11.1 -11%

Sugar/Ethanol Production Mix 57% x 43% 55% x 45% n/a

Adjusted EBITDA8 (BRL mln) 804 835 -4%

Adjusted EBIT8/TRS sold (BRL/ton) 120 139 -14%

Note 8: Excludes non-recurring effects, as detailed on page 5 herein.

Comgás

2Q17 2Q16 Chg.% 1Q17 Chg.%


(Jan-Mar) 2Q17/1Q17

Total Sales Volume (cbm) Ex-Thermal 1,080 1,032 5% 1,008 7%

Normalized EBITDA9 (BRL mln) 460 334 38% 384 20%

IFRS EBITDA (BRL mln) 366 641 -43% 313 17%

Note 9: Includes the effect from the regulatory Current Account.

Moove

2Q17 2Q16 Chg.% 1Q17 Chg.%

(Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17

Total Sales Volume ('000 cbm) 92 87 6% 81 14%

EBITDA (BRL mln) 53 27 94% 43 22%

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Cosan – Consolidated Results

The following table provides a breakdown of the 2Q17 results by business unit for all segments detailed previously. All information reflects 100% of their financial performance, regardless of the

interest held by Cosan. For the purpose of reconciling EBITDA in the column “Cosan S/A,” the “Adjustments & Eliminations” column reflects the eliminations from operations among all Cosan

subsidiaries for consolidation purposes.

Earnings by Business Unit Comgás Moove Cosan

Corporate Adjustments and

Eliminations Cosan S/A Accounting

Raízen Combustíveis

Raízen Energia

50% Raízen Adjustments

and Eliminations

Consolidated Pro forma

2Q17

Net Revenue 1,359.7 511.5 0.2 0.0 1,871.3 17,264.0 3,105.9 (10,185.0) (420.2) 11,636.2

Cost of Goods and Services Sold (866.8) (354.4) (0.5) (0.0) (1,221.8) (16,499.3) (3,095.9) 9,797.6 420.2 (10,599.2)

Gross Profit 492.9 157.0 (0.4) - 649.5 764.8 10.0 (387.4) - 1,036.9

Gross Margin (%) 36.2% 30.7% n/a 0.0% 34.7% 4.4% 0.3% 8.9%

Selling Expenses (164.2) (99.9) (0.0) - (264.2) (328.0) (186.4) 257.2 - (521.3)

General and Administrative Expenses (81.1) (21.2) (35.0) - (137.2) (102.4) (128.5) 115.5 - (252.7)

Other Operating Income (Expenses) (9.3) (0.3) (35.9) - (45.5) 225.1 (7.7) (108.7) - 63.2

Equity Pick-up - (2.6) 137.2 (97.2) 37.4 - (10.5) 5.2 (40.0) (7.9)

Depreciation and Amortization 128.1 19.9 4.1 - 152.1 162.4 505.5 (334.0) - 486.0

EBITDA 366.3 53.0 70.1 (97.2) 392.1 721.8 182.4 (452.1) (40.0) 804.2

EBITDA Margin (%) 26.9% 10.4% n/a n/a 21.0% 4.2% 5.9% 6.9%

Financial result (41.2) (4.4) (211.4) - (256.9) (71.2) (98.1) 84.6 - (341.6)

Income and Social Contribution Taxes (70.8) (10.8) 69.4 - (12.2) (143.8) 171.3 (13.8) - 1.5

Non-controlling Interest - - - (46.9) (46.9) (14.6) - 7.3 0.0 (54.2)

Net Income 126.2 17.9 (76.0) (144.1) (76.0) 329.9 (249.9) (40.0) (40.0) (76.0)

Earnings by Business Unit Comgás Moove Cosan

Corporate Adjustments and

Eliminations Cosan S/A Accounting


Raízen Energia

50% Raízen Adjustments

and Eliminations


6M17

Net Revenues 2,505.9 958.2 0.4 0.0 3,464.5 34,962.2 6,019.1 (20,490.7) (715.8) 23,239.3

Cost of Goods and Services Sold (1,586.9) (668.4) (1.6) (0.0) (2,257.0) (33,246.2) (5,328.0) 19,287.1 715.8 (20,828.3)

Gross Profit 919.0 289.7 (1.3) - 1,207.5 1,716.0 691.1 (1,203.6) - 2,411.0

Gross Margin (%) 36.7% 30.2% n/a - 34.9% 4.9% 11.5% 10.4%

Selling Expenses (332.0) (187.3) (0.1) - (519.4) (642.1) (330.7) 486.4 - (1,005.8)

General and Administrative Expenses (158.2) (41.4) (74.5) - (274.1) (218.7) (287.3) 253.0 - (527.1)

Other Operating Income (Expenses) (9.9) (0.2) (49.3) - (59.4) 179.3 (93.0) (43.1) - (16.2)

Equity Pick-up - (4.1) 449.1 (150.7) 294.3 - (47.8) 23.9 (296.4) (26.0)

Depreciation and Amortization 260.8 39.6 8.3 - 308.7 312.6 954.2 (633.4) - 942.1

EBITDA 679.7 96.3 332.3 (150.7) 957.5 1,347.1 886.6 (1,116.9) (296.4) 1,778.0

EBITDA Margin (%) 27.1% 10.1% n/a n/a 27.6% 3.9% 14.7% 7.7%

Financial results (82.6) (24.2) (285.2) - (392.0) (243.3) 37.0 103.2 - (495.1)

Income and Social Contribution Taxes (126.5) (13.5) 90.5 - (49.6) (233.2) 93.7 69.7 - (119.3)

Non-controlling Interest - - - (78.1) (78.1) (28.3) - 14.1 - (92.2)

Net Income 209.7 19.1 129.3 (228.8) 129.3 529.8 63.0 (296.4) (296.4) 129.3

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Adjusted EBITDA and Net Income A description of the adjustments made by business line, based on the following criteria, is presented below:

Raízen Combustíveis: (i) effects from asset divestments, and (ii) nonrecurring gains/losses, where applicable.

o Nonrecurring effects in the periods:

2Q17: (i) Tax recovery and (ii) eliminations between Raízen Combustíveis and Raízen Energia.

1Q17: (i) Net effect of provision for use of tax credits and (ii) eliminations between Raízen Combustíveis and Raízen Energia.

2Q16: Tax recovery.

Raízen Energia: (i) biological assets variation, (ii) debt hedge accounting effects and (iii) foreign exchange effect in sugar

and (iv) nonrecurring gains/losses where applicable.

o Nonrecurring effects in the periods:

2Q17: Unrealized gain between Raízen Energia and Raízen Combustíveis.

1Q17: Provision for loss of investments in logistics and reversal of unrealized gain between Raízen Energia and Raízen Combustíveis.

Comgás: regulatory current account effect.

Adjusted EBITDA 2Q17 2Q16 Chg.% 1Q17 Chg.%

BRL mln (Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17

Pro forma EBITDA 804.2 1,249.9 -35.7% 973.8 -17.4%

Raízen Combustíveis (50%) (82.5) (32.3) n/a 28.2 n/a

Asset Divestments (8.4) (18.3) -54.0% 12.9 n/a

Non-recurring Effects (74.1) (14.0) n/a 15.3 n/a

Raízen Energia (50%) 311.0 103.6 n/a 110.7 n/a

Change in Biological Assets 165.9 47.9 n/a (44.1) n/a

Hedge Accounting - Debt 45.9 - n/a 55.1 -16.7%

Foreign exchange effect in sugar 89.3 55.7 60.5% 87.1 2.6%

Non-recurring Effects 9.9 - n/a 12.8 -22.1%

Comgás – Regulatory Current Account (100%) 93.5 (307.0) n/a 70.9 32.0%

Adjusted Pro forma EBITDA 1,126.2 1,014.3 11.0% 1,183.6 -4.8%

Adjusted Net Income 2Q17 2Q16 Chg.% 1Q17 Chg.%


Net Income (76.0) 279.9 n/a 205.3 n/a

Raízen Combustíveis (50%) (54.4) (21.3) n/a 18.6 n/a

Asset Divestment (5.6) (12.1) -54.0% 8.5 n/a

Non-recurring Effects (48.9) (9.2) n/a 10.1 n/a

Raízen Energia (50%) 116.0 31.6 n/a (20.7) n/a

Change in Biological Assets 109.5 31.6 n/a (29.1) n/a

Non-recurring Effects 6.6 - n/a 8.4 -22.1%

Comgás – Regulatory Current Account (100%) 39.0 (126.9) n/a 29.3 33.0%

Adjusted Net Income (Loss) 24.5 163.3 -85.0% 232.5 -89.5%

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B. Results by Business Unit B.1 Raízen Combustíveis In spite of slight improvements in Brazilian economy since the beginning of the year, total volume sold fell 0.5% in 2Q17 (ANP data) compared to same period last year. Diesel sales are still under pressure and dropped 2% in 2Q17. Otto-cycle sales

(gasoline + ethanol) instead grew 1.0% in 2Q17 (3% in gasoline-equivalent) compared to 2Q16, as a result of higher production and new licensing of light vehicles.

Raízen Combustíveis outperformed the industry average again, reflecting consistency of growth strategy focused on long-term relationship with service stations network. Otto-cycle sales grew 4% in 2Q17 year-on-year (+1% versus 1Q17). On a

gasoline-equivalent basis, sales volume grew 5% (in line with 1Q17), reflecting higher sales volume of gasoline (+10%) compared to ethanol (-15%) due to higher product competitiveness. Raízen’s diesel sales volume was up 1% from 2Q16 (5% versus 1Q17) following the trend seen over last quarters. The aviation segment was again affected by 2% reduction (ANAC data) in the number of departures with 6% drop (-4% versus 1Q17) in the volume sold. Raízen’s total volume sold in 2Q17 was up 2% year-on-year (+3% versus 1Q17).

Sales Volume 2Q17 2Q16 Chg.% 1Q17 Chg.%

000 cbm (Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17

Total Volume10 6,273 6,158 1.9% 6,115 2.6%

Ethanol 600 707 -15.1% 524 14.5%

Gasoline 2,341 2,122 10.3% 2,376 -1.5%

Diesel 2,756 2,719 1.4% 2,625 5.0%

Aviation 494 526 -5.9% 517 -4.3%

Other Products 81 84 -3.6% 72 12.2%

Note 10: Excludes sales to other distributors, in accordance with SINDICOM methodology.

Raízen Combustíveis’ net revenue came to R$17.3 billion in 2Q17, up 5% from 2Q16, due to higher sales volume, especially

gasoline. In 2Q17, net revenue was impacted by a R$49 million rebate (R$43 million in 2Q16), referring to discounts on fuel sales for achieving certain targets. Cost of goods sold in 2Q17 increased 5% to R$16.5 billion, also due to higher volumes and higher logistics expenses in view of

Raízen’s supply strategy.

Selling, general and administrative expenses were up 3% to R$430 million in 2Q17, due to higher volume sold, partially offset

by lower personnel expenses. Other operating revenue (expenses), adjusted by nonrecurring gains of (i) R$156 million related to tax recovery and (ii) R$ 17 million related to assets sales, came to R$52 million in 2Q17. Adjusted EBITDA went down 7% to R$557 million in 2Q17, due to atypically strong basis of comparison seen in 2Q16.

Raízen Combustíveis’ second quarters are seasonally weaker due to its higher exposure to ethanol sales mix due to usual product price drop early in the sugar crop. Last year, ethanol price curve enjoyed atypical upward variation, while the usual price-drop dynamics was stronger this year due to gasoline price reductions by Petrobras. Decreased ethanol, combined with gasoline and diesel prices reductions caused sharp inventory losses in the period. This effect was partially offset by growth of volume sold, as well as continued gains deriving from supply and commercialization strategy. Adjusted EBIT, which includes the

depreciation and amortization of investments in infrastructure, renovation and expansion of services stations network decreased 12% to R$394 million. Compared to 1Q17, adjusted EBITDA and EBIT went down 18% and 26%, respectively.

EBITDA 2Q17 2Q16 Chg.% 1Q17 Chg.%


EBITDA 721.8 661.3 9.2% 625.3 15.4%

Asset Divestments (16.8) (36.6) -54.0% 25.9 n/a

Other extraordinary effects (148.1) (28.0) n/a 30.6 n/a

Adjusted EBITDA 556.8 596.7 -6.7% 681.8 -18.3%

EBIT 559.4 512.6 9.1% 475.1 17.7%

Adjusted EBIT 394.4 448.1 -12.0% 531.6 -25.8%

Raízen Combustíveis’ CAPEX went down 10% to R$202 million in 2Q17, impacted by lower concentration of investments in

expansion and renovation of service stations network, but in line with annual plan. Raízen ended 2Q17 with 6,068 Shell branded

services stations.

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B.2 Raízen Energia

The 2Q17 sets Raízen’s 2017/18 sugarcane crop. Different from last year when harvest started early in March, production only started by mid-April in the current crop year. In addition, the first months of Brazilian crop in center-south region were

affected by higher rainfall volumes. Despite the acceleration in June, crushing in the center-south region in crop’s first quarter came 8% lower than same period last year. The concentration of total recoverable sugar (TRS) came in line at 123 kg/ton. The sugar production mix grew from 43% to 47% of volume produced, driven by higher commodity prices (NY#11 agreements).

At Raízen Energia, crushing went down 14% to 19.2 million tons in 2Q17, due to higher rainfall volume earlier in the quarter and 2Q16 strong basis of comparison in view of anticipated crushing. TCH was 81 tons of cane/hectare, versus 92

tons of cane/hectare in 2Q16 when there was cane left in the fields from previous intercrop period. Average TRS in the quarter stood at 124 kg/ton (+2%) backed by adequate level of investments in own cane treatment (3% higher compared to third-parties cane’ TRS). Raízen’s production remains focused on the maximization of sugar. The mix in the first quarter of crop year reached 57% for sugar (versus 55% in 2Q16).

Adjusted net revenue was up 23% to R$3.4 billion in 2Q17, reflecting higher sales volume, especially ethanol - 26% higher this quarter, namely due to the performance in the domestic market. Below the effects on volume and net revenue from main

products:

Sugar: Adjusted net revenue grew 22% to R$1.5 billion, due to 7% increase in volumes sold and higher adjusted average

prices (R$1,431/ton, +13% versus 2Q16). It is worth mentioning that higher concentration of resale was recorded in the quarter, since delayed crushing reduced the production and consequently the availability of own products.

Ethanol: Net revenue in the quarter was up 28% to R$1.6 billion due to higher volumes sold (+26%) and higher average price

in the period which totaled R$1,678/m³ (+2%), in line with market prices (ESALQ base). Referring to ethanol, the concentration, resale and trading priority was even more meaningful, effect of lower production and commercialization strategy for this crop.

Cogeneration: Net revenue from energy sold climbed 31% to R$199 million in 2Q17, due to both higher volume (+10%) and

better prices - R$ 220/MWh (+19%).

Sales Breakdown 2Q17 2Q16 Chg.%


Adjusted Net Revenue 3,376.3 2,754.2 22.6%

Sugar Sales 1,491.9 1,226.6 21.6%

Domestic Market 315.4 267.4 17.9%

Export Market11

1,176.5 959.2 22.6%

Ethanol Sales 1,614.7 1,262.3 27.9%

Domestic Market 1,140.9 468.8 n/a

Export Market 473.8 793.5 -40.3%

Energy Cogeneration 198.7 151.4 31.2%

Other Products and Services 71.0 113.8 -37.6%

Hedge Accounting - Debt (91.7) - n/a

Foreign Exchange Effect in Sugar (178.6) (111.3) 60.5%

Net Revenue 3,105.9 2,642.9 17.5% Note11: Net revenue from sugar exports includes the effect from hedge accounting - debt.

Sales Volume 2Q17 vs. 2Q16 Sugar (‘000 tons) Ethanol (‘000 cbm)

Sugar Inventories Ethanol Inventories

06/30/2017 06/30/2016 Chg.% 03/31/2017 Chg.% 06/30/2017 06/30/2016 Chg.% 03/31/2017 Chg.%

'000 ton 514 498 3.2% 216 n/a '000 m³ 432 357 21.0% 179 n/a

BRL mln 487 449 8.3% 211 n/a BRL mln 658 479 37.2% 303 n/a

BRL/ton 947 902 5.0% 978 -3.2% BRL/cbm 1,522 1,343 13.4% 1,694 -10.1%

In 2Q17, cost of goods sold increased 40% yearly and totaled R$3.1 billion, due to higher total sales volume in the period and in view of higher concentration of resale and trading volumes, which have higher unit cost. Unit cash cost of production

in sugar-equivalent grew 4% (R$620/ton), directly impacted by higher CONSECANA reference price (+5%), which directly affects land lease agreements and the acquisition of third-party sugarcane. Excluding the effect from the higher CONSECANA price, unit cash cost came in line with 2Q16, reflecting continued focus on efficiency in agricultural and industrial operations.

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Cost of Goods Sold 2Q17 2Q16 Chg.%


Average Unit (Cash) Costs12 - sugar equivalent (R$/ton) (619.7) (597.1) 3.8%

Average Unit (Cash) Costs12 - Excluding CONSECANA (R$/ton) (596.7) (597.1) 0.0%

Note 12: Cash cost of own sales volumes excludes depreciation and amortization of planting and tilling, agricultural, industrial and off-season maintenance.

Selling, general and administrative expenses went up 7% to R$315 million in 2Q17, due to higher selling expenses as a result of higher sales volume and concentration of general and administrative expenses in the quarter.

Adjusted EBITDA in 2Q17 totaled R$804 million (-4%), affected by lower volumes of own sugar (-4%) and ethanol (-24%) sold in the period following crop commercialization strategy, partially offset by higher average sales price of sugar in Brazilian Reais. As of 2Q17, we began including a line of adjustment to EBITDA referred to as “Sugar foreign exchange effect”

aiming at considering the impact of foreign exchange effectively applied to protect sugar exports in operating results, inclusive for the annual comparison period. Brazilian Real appreciation against the US dollar negatively affected EBITDA in the period, since revenue recognized in sugar exports reflects the exchange rate of the shipment date. On the other hand, R$179 million were recorded in 2Q17 financial result until this date (including previous quarters) relating to currency hedge instruments contracted to determine revenues in Reais, now included in adjusted EBITDA and highlighted in the EBITDA table below. The average of currency hedges for shipments was R$3.88/USD, compared to the actual average exchange rate (average PTAX) of R$3.20/USD. It is worth mentioning that the sugar pricing at Raízen occurs in Reais, i.e., commodity and currency hedge.

EBITDA adjustments in 2Q17 were: (i) R$332 million negative variation in biological assets, due to lower CONSECANA reference price estimated, (ii) R$92 million negative impact from debt hedge accounting, (iii) R$179 million negative effect of foreign exchange designated to hedge sugar exports (highlighted above) and (iv) R$ 20 million of unrealized gain between Raízen Energia and Raízen Combustíveis.

EBITDA and EBIT 2Q17 2Q16 Chg.%


EBITDA 182.4 627.5 -70.9%

(-) Change in biological assets 331.7 95.8 n/a

(-) Hedge Accounting - Debt 91.7 - n/a

(-) Foreign Exchange Effect in Sugar 178.6 111.3 60.5%

(-) Non-Recurring Effects from unrealized profits 19.9 - n/a

Adjusted EBITDA 804.4 834.7 -3.6%

Adjusted EBITDA Margin (%) 25.9% 31.6% -0.2 p.p.

EBIT (312.6) 99.0 n/a

Adjusted EBIT 309.3 306.2 1.0%

The position of sugar volumes and prices defined with trading or via derivative financial instruments in US dollars and converted into Reais until June 30, 2017, respectively, are summarized as follows:

Summary of Hedge Operations at 06/30/201713

Sugar 2017/2018 2018/2019

Volume ('000 ton) 2,107.9 329.3

Average Price14

(centavos/lb) 69.5 70.0

Average Price (¢/lb) 17.8 18.4 Note 13: Hedge coverage is based on the crop years ending in 3/31/2018 and 3/31/2019. Note 14: The average price in ¢/lb considers the exchange rate hedged through financial instruments. Net revenue is recorded at the exchange rate realized during the period.

Raízen Energia’s investments came to R$421 million (+18%) in 2Q17, chiefly due to (i) higher maintenance expenses impacted

by longer off-season in the year-on-year comparison, (ii) acceleration of mandatory investments in health, safety and environment (HSE) and Sustainability projects and (iii) higher mechanization expenses, due to anticipated renewal of agricultural equipment.

CAPEX 2Q17 2Q16 Chg.%


Total CAPEX 421.0 357.7 17.7%

Maintenance CAPEX 292.0 260.4 12.2%

Biological Assets 244.9 235.7 3.9%

Off-season Maintenance 47.2 24.7 91.2%

Operating CAPEX 60.6 27.1 n/a

HES & Sustaining 22.3 6.5 n/a

Mechanization 37.4 20.4 82.9%

Industrial 0.9 0.2 n/a

Projects CAPEX 68.3 70.2 -2.7%

Cogeneration and Expansion 26.4 23.1 14.0%

Other Projects 41.9 47.1 -11.0%

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B.3 Comgás Comgás ended the second quarter of 2017 with 5% higher natural gas sales volume (ex-thermogeneration), recording growth across all segments. Higher demand in specific segments and gradual improvement of economic activity sustained a 4%

growth of volume sold to industrial customers in 2Q17, compared to same period last year. The commercial volume grew 9% and reflects the addition of new clients over the last 12 months, in line with strategy of expanding new uses of gas in the segment. The residential segment was 17% higher, sustained by customer base expansion (106,000 new clients added over the last 12 months) and higher unit consumption due to lower average temperature in the period, compared to 2Q16. Sales Volumes 2Q17 2Q16 Chg.% 1Q17 Chg.%

000 cbm (Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17

Total Natural Gas Sales 1,081,314 1,050,782 2.9% 1,008,246 7.2%

Natural Gas Sales, ex-thermal power 1,080,012 1,032,252 4.6% 1,008,246 7.1%

Residential 70,913 60,764 16.7% 47,440 49.5%

Commercial 36,369 33,366 9.0% 32,530 11.8%

Industrial 854,276 820,174 4.2% 812,254 5.2%

Cogeneration 68,435 69,543 -1.6% 67,886 0.8%

Automotive 50,018 48,404 3.3% 48,136 3.9%

Thermal Power 1,302 18,530 -93.0% 0 n/a

Comgás posted net revenue of R$1.4 billion (-9%) in 2Q17, reflecting higher volumes and the tariff adjustments defined by ARSESP’s ordinances. It is worth mentioning that this variation occurred due to gas price dynamics and regulatory current

account balance, with no impact in Company’s normalized margins. Total costs were up 19% to R$867 million in 2Q17 due to higher unit cost along with higher sales volume.

Selling, general and administrative expenses came to R$245 million, in line with 2Q16, as a result of the efficiencies obtained

in the last 12 months and expenses seasonality, absorbing inflation. EBITDA, normalized by regulatory current account, was R$460 million (+38%) in the period, positively impacted by hgher volumes and inflation adjustment on margins in May 2016 and 2017 (9.8% and 2.6%, respectively). IFRS EBITDA was

R$366 million (-43%), following the regulatory current account reduction mechanism. Regulatory current account ended 2Q17 with a balance of R$268 million in favor of clients, following R$86 million reduction during the quarter.



Normalized EBITDA 459.8 334.3 37.5% 384.3 19.7%

Normalized EBITDA Margin (%) 33.8% 22.4% 11.4 p.p 33.5% 0.3 p.p

IFRS EBITDA 366.3 641.3 -42.9% 313.4 16.9%

IFRS EBITDA Margin (%) 26.9% 42.9% -16.0 p.p. 27.3% -0.4 p.p.

Comgás invested R$106.7 million in 2Q17 focused on initiatives related to the expansion of distribution network and growth of client base.

The complete earnings release of Comgás is available at the website: ri.comgas.com.br. Page 23 of this report presents a reconciliation of Comgás' EBITDA and Net Income based on Cosan’s accounting perspective.

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B.4 Moove (Lubricants) In 2Q17 Moove recorded sales volume growth in all markets, a result of the company’s business strategy focused on increasing customer base and share among Brazil’s automakers, besides the launch of new products. Base oil sales in

Brazil and other South American countries (Bolivia, Uruguay and Paraguay) were even higher, boosting 6% growth in total volume sold. Net revenue in 2Q17 was R$511 million (+5%) and reflects higher sales volume with better sales mix, resulting in relevant increase of EBITDA to R$53 million (+94%).


BRL mln (Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar)

2Q17/1Q17

EBITDA 53.0 27.3 94.1% 43.3 22.3%

EBITDA Margin (%) 10.4% 5.6% 4.8 p.p 9.7% 0.7 p.p

B.5 Cosan Corporate The Cosan Corporate segment comprises Cosan’s corporate structure, i.e. expenses with sundry consulting services and personnel (payroll, charges and severance), as well as the effects arising from the contingencies of the businesses contributed to Raízen prior to its incorporation, and other investments.

Total Expenses and EBITDA 2Q17 2Q16 Chg.% 1Q17 Chg.%


General and Administrative Expenses (35.0) (41.1) -14.9% (39.6) -11.8%

Other Operating Income (Expenses) (35.9) (18.4) 94.9% (13.4) n/a

Non-recurring Effects - - n/a - n/a

Other (35.9) (18.4) 94.9% (13.4) n/a

EBITDA ex- Equity Pick-up (67.1) (63.2) 6.2% (49.7) 34.9%

(+) Equity Pick-up 137.2 422.9 -67.6% 312.0 -56.0%

EBITDA 70.1 359.7 -80.5% 262.2 -73.3%

General and administrative expenses totaled R$35 million (-15%) in 2Q17, in line with expectations. Other operating

expenses, composed of legal and consulting expenses, came to R$36 million (+95%) in 2Q17 due to higher concentration of expenses in the period.

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C. Other Lines of the Consolidated P&L (ex-Raízen) Financial Result

Financial Result 2Q17 2Q16 Chg.% 1Q17 Chg.%


Cost of Gross Debt (293.4) (239.3) 22.6% (169.6) 73.0%

Perpetual Notes (91.5) (114.8) -20.3% 11.9 n/a

Interest of Bank Debts (202.0) (124.5) 62.3% (181.5) 11.2%

Interest Income 101.2 77.3 30.9% 107.6 -6.0%

(=) Subtotal: Interest on Net Debt (192.3) (162.0) 18.7% (62.0) n/a

Other Charges and Monetary Variation (56.5) (83.8) -32.6% (61.0) -7.4%

Banking Expenses, Fees and Other (8.2) (10.8) -24.1% (12.1) -32.4%

Net Financial Result (256.9) (256.6) 0.2% (135.0) 90.3%

Net financial expenses came to R$257 million in 2Q17, in line year-on-year. Total cost of debt (which includes interest expenses, exchange variation and derivative gain/loss) was up 19% by R$30 million, chiefly due to increase in bank debt

interest expenses, since that line was positively impacted by a nonrecurring net gain of R$80 million in 2Q16 related to Cosan’s debt restructuring process conducted last year. Compared to 1Q17, the main impact was the FX variation on Perpetual Notes. The weighted average cost of Cosan S/A’s debts (ex-Raízen) corresponds to 108% of CDI in 2Q17.

Interest income grew R$24 million, due to the higher average cash balance year-on-year partially offset by lower interest rates.

Other charges and monetary variations dropped 33% to R$56 million in 2Q17 chiefly due to lower balance of obligations with

preferred shareholders in subsidiaries in the period, as well as lower monetary restatement rates affecting these obligations.

Income and Social Contribution Taxes

The following table provides a breakdown of income and social contribution tax expenses of 2Q17 by business unit: Income and Social Contribution Taxes

Comgás Moove Cosan

Corporate Adjustments &

Elimination Consolidated

BRL mln

Operating Profit before Taxes 197.0 28.7 (145.4) (97.2) (16.9)

Income and Social Contribution Taxes, Nominal Rate (%) -34.0% -34.0% -34.0% -34.0% -34.0%

Theoretical Expense with Income and Social Contribution (67.0) (9.8) 49.4 33.1 5.8

Non-taxable Permanent Differences/Equity Pick-up 0.9 0.7 20.6 (33.1) (10.9)

Difference from taxable and presumed profit base - - 0.0 - 0.0

Other (4.7) (1.7) (0.7) - (7.1)

Effective Expense with Income and Social Contribution Taxes (70.8) (10.8) 69.4 - (12.2)

Income and Social Contribution Taxes, Effective Rate (%) -35.9% -37.5% -47.7% 0.0% 72.2%

Expenses with Income and Social Contribution Taxes (70.8) (10.8) 69.4 - (12.2)

Current (49.4) (1.0) (9.0) - (59.4)

Current Tax, Effective Rate (%) -25.1% -3.4% 6.2% 0.0% n/a

Deferred (21.4) (9.8) 78.4 - 47.2

Net Income Cosan posted net loss of R$76 million in 2Q7, compared to the net income of R$280 million recorded in 2Q16, chiefly due to lower accounting result of (i) Raízen Energia, mainly affected by non-cash impact of biological asset variation; and (ii) Comgás IFRS number, impacted by reduction regulatory current account. In addition, it is worth mentioning that net results in

2Q17 were negatively impacted by nonrecurring effects on businesses, as mentioned in the EBITDA and Adjusted Net Income sections of this report. The net income adjusted by these nonrecurring effects would be R$24 million versus R$163 million in 2Q16.

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D. Loans and Financing At the close of 2Q17, Cosan’s pro forma consolidated gross debt (excluding PESA at Raízen Energia) stood at R$14.3 billion (+4%), reflecting R$1.0 billion fund raising at Raízen Energia with the issue of agribusiness receivables certificates (CRAs)

in May 2017. Cosan S/A's pro forma leverage ratio (including obligations with preferred shareholders) ended the quarter at 2.1x Net Debt /EBITDA (based on pro forma LTM EBITDA). If we consider Comgás normalized results, adjusted by regulatory current account, leverage would remain at 2.1x. Pro forma bank net debt, excluding obligations with preferred shareholders, totaled R$8.2 billion in 2Q17. Loans and Financing 2Q17 BRL mln

Comgás Moove Cosan

Corporate Consolidated

Raízen Energia



Opening balance of pro forma net debt 1,584.6 367.0 2,288.1 4,239.7 2,905.4 442.3 7,587.3

Cash, cash equivalents and marketable securities 2,012.4 82.4 2,010.8 4,105.6 1,718.8 258.9 6,083.3

Gross Debt 3,597.0 449.4 4,298.9 8,345.3 4,624.2 701.2 13,670.7

Cash items (147.9) (132.6) (30.1) (310.6) 307.0 (6.8) (10.4)

Funding - - 44.8 44.8 559.2 - 603.9

Payment of principal on loans and borrowings (136.9) (115.6) (33.4) (285.9) (154.5) (2.0) (442.4)

Payment of Interest on loans borrowings (24.2) (3.4) (36.7) (64.3) (97.7) (4.8) (166.7)

Derivatives 13.2 (13.6) (4.7) (5.2) - - (5.2)

Noncash items 98.6 24.9 186.3 309.7 220.5 (75.7) 454.5

Provision for interest (accrual) 57.9 4.1 82.0 144.0 78.8 4.7 227.5

Monetary variation and MTM adjustment of debt 33.9 15.2 68.6 117.7 15.6 6.7 140.0

Exchange variation, net of derivatives 6.8 5.5 35.6 48.0 126.0 (87.0) 87.0

Closing balance of gross debt 3,547.6 341.7 4,455.1 8,344.4 5,151.6 618.8 14,114.8

Cash, cash equivalents and marketable securities 2,177.0 90.0 1,537.1 3,804.1 2,023.4 198.6 6,026.1

Closing balance of pro forma net debt 1,370.6 251.6 2,918.0 4,540.3 3,128.3 420.2 8,088.7

Obligations due to preferred shareholders of subsidiaries - - 1,531.2 1,531.2 - - 1,531.2

Total pro forma net debt and obligations due to preferred shareholders of subsidiaries

1,370.6 251.6 4,449.3 6,071.5 3,128.3 420.2 9,620.0

E. Reconciliation of the Change in Net Debt Cash Flow Statement 2Q17 BRL mln

Comgás Moove Cosan Corporate

Eliminations Cosan S/A Raízen Combined

Eliminations Cosan S/A Pro forma

Balance of Net Debt at start of period (1,584.6) (367.0) (2,288.1) - (4,239.7) (3,347.7) - (7,587.3)

Balance of Net Debt at end of period (1,370.6) (251.6) (2,918.0) - (4,540.3) (3,548.5) - (8,088.7)

Change in Net Debt 214.0 115.4 (630.0) - (300.6) (200.8) - (501.4)

Non-cash items 98.6 24.9 186.3 - 309.7 144.8 - 454.5

Interest Accrual 57.9 4.1 82.0 - 144.0 83.5 - 227.5

Monetary variation and MTM adjustment of debt

33.9 15.2 68.6 - 117.7 22.3 - 140.0

Exchange Variation, net of derivatives 6.8 5.5 35.6 - 48.0 39.0 - 87.0

Cash change in Net Debt 312.5 140.3 (443.7) - 9.1 (56.0) - (46.9)

Reconciliation of Cash Generation

EBITDA 366.3 53.0 70.1 (97.2) 392.1 452.1 (40.0) 804.2

Noncash impacts on EBITDA 26.3 9.1 (121.5) 97.2 11.2 102.9 40.0 154.2

Changes in assets and liabilities (26.0) 17.9 27.8 - 19.7 (123.7) - (104.0)

Operating financial result 47.5 (0.1) 27.2 - 74.7 72.5 - 147.1

Operating cash flow 414.2 80.0 3.6 - 497.7 503.9 - 1,001.6

Capex (102.7) (5.0) (1.5) - (109.2) (285.4) - (394.6)

Other 1.1 (0.2) (3.8) - (2.9) 23.9 - 21.0

Cash flow after investments (101.6) (5.2) (5.2) - (112.1) (261.5) - (373.6)

Other Effects Ex Debt (0.0) 62.3 (67.5) (0.0) (5.2) (1.5) - (6.7)

Dividends Received - - 299.3 - 299.3 - (296.8) 2.6

Cosan S/A - - (686.4) - (686.4) - 296.8 (389.7)

Raízen - - - - - (305.3) - (305.3)

Dividends Payed - - (686.4) - (686.4) (305.3) 296.8 (695.0)

Exchange variation impact on cash and cash equivalents

- 3.2 12.6 - 15.8 8.6 - 24.4

Change in Net Debt 312.5 140.3 (443.7) (0.0) 9.1 (56.0) - (46.9)

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F. Cash Flow Reconciliation

Below, the information necessary to reconcile the free cash flow to equity (FCFE) on an accounting basis ("Cosan S/A") and on a pro forma basis ("Pro forma Consolidated"), considering 50% of Raízen's results.

Cash Flow Statement 2Q17 2Q16

BRL mln Comgás Moove Cosan

Corporate Eliminations

Cosan S/A

Raízen Combined

Eliminations Cosan S/A Pro forma

Cosan S/A Pro forma

Chg.%

EBITDA 366.3 53.0 70.1 (97.2) 392.1 452.1 (40.0) 804.2 1,249.9 -35.7%

Noncash impacts on EBITDA 26.3 9.1 (121.5) 97.2 11.2 102.9 40.0 154.2 96.8 59.2%

Changes in assets and liabilities (26.0) 17.9 27.8 - 19.7 (123.7) - (104.0) (559.6) -81.4%

Operating financial result 47.5 (0.1) 27.2 - 74.7 72.5 - 147.1 71.4 n/a

Operating Cash Flow 414.2 80.0 3.6 - 497.7 503.9 - 1,001.6 858.6 16.7%

CAPEX (102.7) (5.0) (1.5) - (109.2) (285.4) - (394.6) (408.5) -3.4%

Other 1.1 (0.2) (3.8) - (2.9) 23.9 - 21.0 (117.8) n/a

Cash Flow from Investing Activities (101.6) (5.2) (5.2) - (112.1) (261.5) - (373.6) (526.3) -29.0%

Funding - - 44.8 - 44.8 559.2 - 603.9 2,277.7 -73.5%

Loans amortization (Principal) (136.9) (115.6) (33.4) - (285.9) (156.5) - (442.4) (2,340.3) -81.1%

Loans amortization (Interest) (24.2) (3.4) (36.7) - (64.3) (102.6) - (166.8) (222.2) -24.9%

Derivatives 13.2 (13.6) (4.7) - (5.2) - - (5.2) (49.1) -89.5%

Other (0.0) 62.3 (67.5) (0.0) (5.2) (1.4) - (6.6) 40.9 n/a

Cash Flow from Financing Activities (147.9) (70.3) (97.5) (0.0) (315.8) 298.7 - (17.1) (292.9) -94.1%

Dividends received - - 299.3 - 299.3 - (296.8) 2.6 2.2 16.7%

Free Cash Flow to Equity 164.6 4.4 200.1 (0.0) 369.1 541.0 (296.8) 613.4 41.5 n/a

Cosan S/A - - (686.4) - (686.4) - 296.8 (389.7) (289.1) 34.8%

Raízen - - - - - (305.3) - (305.3) (199.1) 53.4%

Dividends paid - - (686.4) - (686.4) (305.3) 296.8 (695.0) (488.2) 42.4%

Exchange variation impact on cash and cash equivalents

- 3.2 12.6 - 15.8 8.6 - 24.4 (41.4) n/a

Cash Generation (Burn) in the Period 164.6 7.6 (473.8) (0.0) (301.5) 244.2 - (57.3) (488.1) -88.3%

Cash Flow Statement

BRL mln Raízen Energia


Operating Cash Flow 364.5 139.4

Cash Flow from Investing Activities (201.6) (59.9)

Cash Flow from Financing Activities 328.8 (30.1)

Free Cash Flow to Equity 491.6 49.4

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G. Guidance This section presents the 2017 guidance for each of the key parameters of Cosan’s consolidated results, besides ratifying

the guidance for Raízen Energia 2017/18 crop year.

Other sections of this earnings release may also contain projections. These projections and guidance are merely estimates and

indicative and do not represent any guarantee of future results.

Cosan’s consolidated EBITDA is presented on a pro forma basis, which includes 50% of the results of Raízen Combustíveis and of

Raízen Energia. Note that Raízen’s results are no longer consolidated proportionately into Cosan, with only its net income

recognized under “Equity Pick-Up.”

Actual Guidance

2016 2017

(Jan-Dec) (Jan-Dec)

Cosan S/A Consolidated

Pro forma Net Revenue (BRL mln) 47,008 45,000 ≤ ∆ ≤ 48,000

Pro forma EBITDA¹⁵ (BRL mln) 4,503 4,750 ≤ ∆ ≤ 5,250

Raízen

Combustíveis

EBITDA (BRL mln) 2,812 2,700 ≤ ∆ ≤ 3,000

CAPEX (BRL mln) 797 800 ≤ ∆ ≤ 1,000

Comgás

Total Volume Sold, excluding Thermo ('000 cbm) 4,119 4,000 ≤ ∆ ≤ 4,300

Normalized EBITDA¹⁶ (BRL mln) 1,465 1,550 ≤ ∆ ≤ 1,650

CAPEX (BRL mln) 464 450 ≤ ∆ ≤ 500

Moove EBITDA (BRL mln) 136 140 ≤ ∆ ≤ 160

Actual Guidance

Crop Year 2016/17 Crop Year 2017/18

(Apr/16-Mar/17) (Apr/17-Mar/18)

Raízen Energia

Volume of Sugarcane Crushed ('000 tons) 59,391 59,000 ≤ ∆ ≤ 63,000

Volume of Sugar Produced ('000 tons) 4,227 4,300 ≤ ∆ ≤ 4,700

Volume of Ethanol Produced (million liters) 1,990 2,000 ≤ ∆ ≤ 2,300

Volume of Energy Sold ('000 of MWh) 2,802 2,000 ≤ ∆ ≤ 2,200

EBITDA (BRL mln) 3,693 3,900 ≤ ∆ ≤ 4,300

CAPEX (BRL mln) 2,088 2,100 ≤ ∆ ≤ 2,400

Note 15: Cosan S/A Consolidated Pro forma EBITDA considers in both results and guidance the adjustments that are highlighted in the Company’s earnings releases

each quarter, that is, reflecting the recurring results of operations, excluding any one-off effects. Raízen’s Energia Adjusted EBITDA also includes the forex effect on

sugar exports.

Note 16: Comgás’ IFRS EBITDA for 2017 will be between R$1,150 million and R$1,250 million.

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H. Other Information

Market Maker

In June 05, 2017 Cosan S/A hired CREDIT SUISSE (BRASIL) S.A. CORRETORA DE TÍTULOS E VALORES MOBILIÁRIOS to

exercise the function of market maker for the Company's common stock (CSAN3) at B3 for a period of twelve months,

automatically renewable for equal periods, with the objective of increasing liquidity of said stock.

Tonon Mills Acquision

In August 08, 2017 Raízen Energia, joint venture between Cosan and Shell, concluded the acquisition of 2 Tonon Mills (Santa

Cândida e Paraíso) under court-supervised reorganization for BRL 823 million, after CADE’s approval with no restrictions. The

mills have together around 5 million tons of yearly crushing capacity.

Disclaimer

This document contains forward-looking statements and estimates. These forward-looking statements and estimates are solely forecasts and do not

represent any guarantee of prospective results. All stakeholders are cautioned that these forward-looking statements and information are and will be,

depending on the case, subject to risks, uncertainties and factors related to the operations and business environment of Cosan and its subsidiaries,

therefore the actual results of these companies may differ significantly from the future results expressed or implied by said forward-looking

statements and information. Certain analyses presented herein refer to previous periods and may have been reclassified for comparison purposes.

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I. Financial Statements I.1 Cosan S/A Consolidated Accounting Indicators 2Q17 2Q16 Chg.% 1Q17 Chg.% 6M17 6M16 Chg.%

BRL mln (Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17 (Jan-Jun) (Jan-Jun) 6M17/6M16

EBITDA 392.1 853.5 -54.1% 565.5 -30.7% 957.5 1,758.1 -45.5%

CAPEX 113.1 120.5 -6.1% 76.9 47.1% 190.0 224.9 -15.5%

Income Statement for the Period 2Q17 2Q16 Chg.% 1Q17 Chg.% 6M17 6M16 Chg.%


Net Revenue 1,871.3 1,983.3 -5.6% 1,593.1 17.5% 3,464.4 3,922.5 -11.7%

Cost of Goods and Services Sold (1,221.8) (1,107.3) 10.3% (1,035.2) 18.0% (2,256.9) (2,308.4) -2.2%

Gross profit 649.5 876.0 -25.9% 558.0 16.4% 1,207.5 1,614.1 -25.2%

Selling, general & administrative expenses (401.4) (397.9) 0.9% (392.1) 2.4% (793.5) (770.6) 3.0%

Other net operating income (expenses) (45.5) (18.9) n/a (13.8) n/a (59.4) (58.5) 1.4%

Financial results (256.9) (256.6) 0.2% (135.0) 90.3% (392.0) (712.2) -45.0%

Equity Pick-up 37.4 245.9 -84.8% 256.9 -85.5% 294.3 682.1 -56.9%

Expenses with income and social contribution taxes (12.2) (58.9) -79.3% (37.3) -67.3% (49.6) (49.0) 1.1%

Non-controlling interest (46.9) (135.3) -65.3% (31.2) 50.4% (78.1) (219.6) -64.4%

Net Income (Loss) (76.0) 279.9 n/a 205.3 n/a 129.3 526.9 -75.5%

Balance Sheet 2Q17 1Q17

BRL mln 06/30/2017 03/31/2017

Cash and cash equivalents 3,415 3,725

Marketable Securities 389 381

Trade accounts receivable 861 704

Inventories 338 351

Derivative financial instruments 897 833

Other current assets 662 662

Other non-current assets 1,962 1,787

Investments 8,872 8,979

Property, plant and equipment 376 382

Intangible assets 9,201 9,250

Total Assets 26,973 27,054

Loans and borrowings 9,059 8,862

Financial instruments and derivatives 183 317

Trade accounts payable 1,584 1,427

Payroll 82 58

Other current liabilities 551 465

Other non-current liabilities 4,688 4,826

Shareholders' Equity 10,829 11,100

Total Liabilities 26,973 27,054

17 de 23


I.2 Raízen Combustiveis

Sales Volumes 2Q17 2Q16 Chg.% 1Q17 Chg.% 6M17 6M16 Chg.%

000 cbm (Apr-Jun) (Apr-Jun) 2Q17/2Q16 (Jan-Mar) 2Q17/1Q17 (Jan-Jun) (Jan-Jun) 6M17/6M16

Total Volume 6,273 6,158 1.9% 6,115 2.6% 12,388 12,193 1.6%

Ethanol 600 707 -15.1% 524 14.5% 1,124 1,375 -18.2%

Gasoline 2,341 2,122 10.3% 2,376 -1.5% 4,718 4,276 10.3%

Diesel 2,756 2,719 1.4% 2,625 5.0% 5,381 5,257 2.4%

Aviation 494 526 -5.9% 517 -4.3% 1,011 1,114 -9.3%

Other 81 84 -3.6% 72 12.2% 154 171 -10.0%

Otto cycle 2,941 2,829 4.0% 2,900 1.4% 5,841 5,651 3.4%

Gasoline Equivalent 2,775 2,633 5.4% 2,755 0.7% 5,529 5,265 5.0%

Indicators 2Q17 2Q16 Chg.% 1Q17 Chg.% 6M17 6M16 Chg.%


EBITDA 721.8 661.3 9.2% 625.3 15.4% 1,347.1 1,241.0 8.6%

Adjusted EBITDA 556.8 596.7 -6.7% 681.8 -18.3% 1,238.6 1,182.0 4.8%

Adjusted EBITDA Margin (BRL/cbm) 88.8 96.9 -8.4% 111.5 -20.4% 100.0 96.9 3.1%

EBIT 559.4 512.6 9.1% 475.1 17.7% 1,034.5 926.2 11.7%

Adjusted EBIT 394.4 448.1 -12.0% 531.6 -25.8% 926.0 867.2 6.8%

Rebate 49.4 43.0 14.6% 44.2 11.8% 93.5 82.7 13.1%

CAPEX 202.2 225.8 -10.5% 226.8 -10.9% 429.0 405.0 5.9%



Net Operating Revenue 17,264.0 16,479.6 4.8% 17,698.2 -2.5% 34,962.2 32,871.3 6.4%

Ethanol 1,050.7 1,202.0 -12.6% 1,041.6 0.9% 2,092.2 2,589.8 -19.2%

Gasoline 7,801.8 6,839.3 14.1% 8,206.4 -4.9% 16,008.1 13,980.7 14.5%

Diesel 7,427.8 7,517.6 -1.2% 7,432.0 -0.1% 14,859.8 14,350.3 3.6%

Aviation 852.2 793.8 7.4% 899.4 -5.2% 1,751.6 1,691.8 3.5%

Other 131.6 126.8 3.8% 118.9 10.7% 250.4 258.7 -3.2%

Cost of Goods and Services Sold (16,499.3) (15,665.2) 5.3% (16,746.9) -1.5% (33,246.2) (31,265.8) 6.3%

Gross profit 764.8 814.4 -6.1% 951.2 -19.6% 1,716.0 1,605.5 6.9%

Total Expences (430.4) (419.1) 2.7% (430.3) 0.0% (860.7) (877.4) -1.9%

Selling expenses (328.0) (299.5) 9.5% (314.1) 4.4% (642.1) (656.6) -2.2%

General and administrative expenses (102.4) (119.6) -14.4% (116.2) -11.9% (218.7) (220.8) -1.0%

Other operating income (expenses) 225.1 117.4 91.8% (45.8) n/a 179.3 198.1 -9.5%

Financial results (71.2) (146.7) -51.5% (172.1) -58.7% (243.3) (279.7) -13.0%

Equity Pick-up - - n/a - n/a - 2.5 -100.0%

Expenses with income and social contribution taxes

taxes (143.8) (74.2) 93.6% (89.4) 60.8% (233.2) (184.2) 26.6%

Non-controlling interest (14.6) (12.2) 19.7% (13.7) 6.5% (28.3) (22.2) 27.1%

Net Income 329.9 279.4 18.1% 199.9 65.0% 529.8 442.5 19.7%


BRL mln 06/30/2017 03/31/2017

Cash and cash equivalents 397 518

Trade accounts receivable 1,510 1,531

Inventories 2,006 1,695


Other current assets 1,394 1,262


Property, plant and equipment 2,345 2,374






Payroll 119 106

Other current liabilities 1,959 1,619




18 de 23


I.3 Raízen Energia

Indicators 2Q17 2Q16 Chg.%


Sugarcane Crushed 19,154 22,384 -14.4%

Sugarcane Crushed, Own ('000 t) 10,091 11,404 -11.5%

Sugarcane Crushed, Suppliers ('000 t) 9,063 10,980 -17.5%

Sugarcane TRS (kg/t) 123.6 121.2 2.0%

TCH (tons of cane per hectare) 80.7 91.9 -12.3%

TRS/ha (tons of TRS per hectare) 10.0 11.1 -10.5%

Mechanization (%) 98% 99% -0.4 p.p.

Sugar ('000 ton) 1,242 1,420 12.5%

Ethanol ('000 cbm) 589 738 20.2%

Sugar ('000 ton) 1,043 971 7.4%

Ethanol ('000 cbm) 962 766 25.6%

Energy cogeneration ('000 MWh) 902 817 10.3%

EBITDA 182.4 627.5 -70.9%

Adjusted EBITDA 804.4 834.7 -3.6%

Adjusted EBITDA Margin (BRL/cbm) 25.9% 31.6% -5.7 p.p.

EBIT (312.6) 99.0 n/a

Adjusted EBIT 309.3 306.2 1.0%

CAPEX 421.0 357.7 17.7%

Income Statement for the Period 2Q17 2Q16 Chg.%


Net Operating Revenue 3,105.9 2,642.9 17.5%

Sugar 1,221.5 1,115.3 9.5%

Ethanol 1,614.7 1,262.3 27.9%

Energy Cogeneration 198.7 151.4 31.2%

Other Products and Services 71.0 113.8 -37.6%

Cost of goods sold (3,095.9) (2,216.7) 39.7%

Sugar (931.0) (834.8) 11.5%

Ethanol (513.6) (745.2) -31.1%

Resale & Trading (1,099.1) (364.3) n/a

Energy Cogeneration (112.1) (67.0) 67.2%

Other (440.0) (205.3) n/a

Gross profit 10.0 426.2 -97.6%

Total Expences (314.9) (295.6) 6.5%

Selling expenses (186.4) (180.3) 3.4%

General and administrative expenses (128.5) (115.3) 11.4%

Other operating income (expenses) (7.7) (31.5) -75.5%

Financial results (98.1) 206.7 n/a

Equity Pick-up (10.5) (12.5) -16.0%

Expenses with income and social contribution taxes 171.3 (79.3) n/a

Net Income (249.9) 213.9 n/a


BRL mln 06/30/2017 03/31/2017



Inventories 1,305 648


Biological Assets 891 1,276



Investments 234 244






Trade accounts payable 1,170 948

Payroll 451 362

Other current liabilities 1,220 799




19 de 23


I.4 Comgás



Natural Gas Sales 1,081,314 1,050,782 2.9% 1,008,246 7.2% 2,089,560 2,109,437 -0.9%

Natural Gas Sales, ex-thermal power 1,080,012 1,032,252 4.6% 1,008,246 7.1% 2,088,258 2,006,506 4.1%

Residential 70,913 60,764 16.7% 47,440 49.5% 118,353 107,850 9.7%

Commercial 36,369 33,366 9.0% 32,530 11.8% 68,899 64,248 7.2%

Industrial 854,276 820,174 4.2% 812,254 5.2% 1,666,530 1,609,848 3.5%

Cogeneration 68,435 69,543 -1.6% 67,886 0.8% 136,322 130,916 4.1%

Automotive 50,018 48,404 3.3% 48,136 3.9% 98,154 93,644 4.8%

Thermal Power 1,302 18,530 -93.0% 0 n/a 1,302 102,930 -98.7%



IFRS EBITDA 366.3 641.3 -42.9% 313.4 16.9% 679.7 1,161.7 -41.5%

Normalized EBITDA 459.8 334.3 37.5% 384.3 19.7% 844.1 657.6 28.4%

CAPEX 106.7 109.3 -2.4% 74.9 42.5% 181.5 203.5 -10.8%



Net Revenue 1,359.7 1,494.0 -9.0% 1,146.3 18.6% 2,505.9 2,954.0 -15.2%

Natural Gas Sales 1,254.9 1,388.6 -9.6% 1,078.4 16.4% 2,335.5 2,773.9 -15.8%

Residential 228.4 197.9 15.4% 151.5 50.8% 379.9 353.3 7.5%

Commercial 79.3 75.9 4.5% 67.7 17.2% 147.0 146.3 0.5%

Industrial 840.9 996.8 -15.6% 760.3 10.6% 1,603.4 2,002.8 -19.9%

Cogeneration 50.8 57.4 -11.6% 47.7 6.4% 98.5 111.9 -12.0%

Automotive 54.7 50.8 7.7% 51.3 6.8% 106.0 98.0 8.2%

Thermal Power 0.8 9.9 -92.1% 0.0 n/a 0.8 61.6 -98.7%

Construction - ICPC 01 86.8 88.1 -1.5% 56.3 54.1% 143.1 154.3 -7.2%

Other 18.0 17.3 4.2% 11.5 55.9% 27.3 31.9 -14.3%

Cost of goods and services sold (866.8) (729.4) 18.8% (720.1) 20.4% (1,586.9) (1,558.0) 1.9%

Natural Gas (780.0) (641.3) 21.6% (663.8) 17.5% (1,443.8) (1,403.7) 2.9%

Construction - ICPC 01 (86.8) (88.1) -1.5% (56.3) 54.1% (143.1) (154.3) -7.2%

Gross profit 492.9 764.5 -100.0% 426.1 15.7% 919.0 1,396.0 -34.2%

Selling, general and administrative expenses (245.3) (244.5) 0.3% (244.9) 0.2% (490.2) (472.4) 3.8%

Other net operating income (expenses) (9.3) (0.6) n/a (0.6) n/a (9.9) (2.7) n/a


Expenses with income and social contribution taxes (70.8) (163.1) -56.6% (55.7) 27.1% (126.5) (267.8) -52.7%

Net Income 126.2 310.3 -59.3% 83.5 51.1% 209.7 511.2 -59.0%

Comgás 2Q17 1Q17 Balance Sheet 06/30/2017 03/31/2017




Inventories 103 113



Other non-current assets 327 333

Intangible assets 8,450 8,488 Total Assets 12,186 11,923



Payroll 42 31


Other noncurrent liabilities 1,642 1,649



20 de 23


I.5 Moove



Total Volume 92.4 87.0 6.3% 81.3 14% 173.6 163.9 5.9%



EBITDA 53.0 27.3 94.1% 43.3 22.3% 96.3 53.2 81.1%



Net Revenue 511.5 489.0 4.6% 446.7 14.5% 958.2 968.1 -1.0%

Cost of Goods and Services Sold (354.4) (369.3) -4.0% (314.0) 12.9% (668.4) (741.3) -9.8%

Gross profit 157.0 119.7 31.2% 132.7 18.3% 289.7 226.8 27.7%

Selling, general and administrative expenses (121.1) (112.3) 7.8% (107.6) 12.5% (228.7) (215.1) 6.3%

Other net operating income (expenses) (0.3) 0.2 n/a 0.1 n/a (0.2) 1.9 n/a


Equity Pick-up (2.6) (2.2) 19.1% (1.6) 62.7% (4.1) (3.0) 37.2%

Expenses with income and social contribution taxes (10.8) 4.1 n/a (2.7) n/a (13.5) 4.6 n/a

Net Income (Loss) 17.9 (15.9) n/a 1.1 n/a 19.1 (29.0) n/a


BRL mln 06/30/2017 03/31/2017

Cash and cash equivalents 89 80



Inventories 233 236

Derivative financial instruments 1 -


Other non-current assets 83 (40)

Investments 15 17


Intangible assets 745 756


Loans and borrowings 329 419


Trade accounts payable 261 207

Payroll 24 16


Other non-current liabilities 227 131

Shareholders' Equity 716 712


21 de 23


I.6 Cosan Corporate



EBITDA 70.1 359.7 -80.5% 262.2 -73.3% 332.3 828.1 -60%



Net Revenue 0.2 0.3 -46.4% 0.2 2.0% 0.4 0.4 -3%

Gross profit (0.4) (8.2) -95.5% (0.9) -58.8% (1.3) (8.7) -85.6%

Selling, general & administrative expenses (35.0) (41.1) -14.9% (39.6) -11.8% (74.6) (83.1) -10.2%

Other net operating income (expenses) (35.9) (18.4) 94.9% (13.4) n/a (49.3) (57.7) -14.6%

Financial results (211.4) (185.3) 14.1% (73.8) n/a (285.2) (525.9) -45.8%

Equity Pick-up 137.2 422.9 -67.6% 312.0 -56.0% 449.1 970.1 -53.7%

Expenses with income and social contribution taxes 69.4 100.1 -30.7% 21.1 n/a 90.5 214.1 -57.7%

Discontinuing operations - 9.9 -100.0% - n/a - 18.2 -100.0%



BRL mln 06/30/2017 03/31/2017


Títulos e valores mobiliários 157 193

Inventories 3 2




Investments 12,838 12,886


Intangible assets 6 7




Trade accounts payable 4 5

Payroll 16 11





22 de 23


J. Financial Statements including Raízen

J.1 Cosan S/A Consolidated Pro forma, including Raízen

Indicators 2Q17 2Q16 Chg. % 1Q17 Chg. % 6M17 6M16 Chg.%


EBITDA 804.2 1,249.9 -35.7% 973.8 -17.4% 1,778.0 2,765.6 -35.7%

Adjusted EBITDA 1,126.2 1,014.3 11.0% 1,183.6 -4.8% 2,309.8 2,105.6 9.7%

CAPEX 424.7 411.0 3.3% 639.0 -33.5% 1,063.7 1,010.3 5.3%

Income Statement for the Period 2Q17 2Q16 Chg. % 1Q17 Chg. % 6M17 6M16 Chg.%


Net Revenue 11,636.1 11,420.1 1.9% 11,603.2 0.3% 23,239.3 23,234.9 0.0%

Cost of goods sold (10,599.2) (9,919.9) 6.8% (10,229.0) 3.6% (20,828.2) (20,005.2) 4.1%

Gross profit 1,036.9 1,500.3 -30.9% 1,374.1 -24.5% 2,411.0 3,229.7 -25.3%

Selling, general & administrative expenses (774.0) (755.3) 2.5% (758.8) 2.0% (1,532.9) (1,532.9) 0.0%

Other net operating income (expenses) 63.2 24.0 n/a (79.4) n/a (16.2) 59.0 n/a

Financial results (341.6) (226.6) 50.7% (153.6) n/a (495.1) (644.1) -23.1%

Equity Pick-up (7.9) (12.2) -35.6% (18.2) -56.6% (26.0) (29.4) -11.5%

Expenses with income and social contribution taxes 1.5 (134.4) n/a (120.8) n/a (119.3) (365.1) -67.3%

Non-controlling interest (54.2) (141.4) -61.7% (38.0) 42.5% (92.2) (230.7) -60.0%

Discontinued Operations - 25.6 -100.0% - n/a - 40.5 -100.0%



BRL mln 06/30/2017 03/31/2017


Marketable securities 389 381

Inventories 1,994 1,523

Derivative financial instruments 1,243 1,151



Investments 336 315







Payroll 367 292

Other current liabilities 1,560 1,233




23 de 23


K. Financial Statements, Cosan perspective K.1 Earnings from Raízen Combustíveis to Cosan perspective

Earnings Conciliation 2Q17 2Q16

BRL mln (Apr-Jun) (Apr-Jun)

EBITDA - Raízen Combustíveis perspective 736.0 675.8

Fair Value Effects (6.2) (14.6)

Adjustments from unrealized profits (8.1) -

EBITDA - Cosan perspective 721.8 661.3

Net Income - Raízen Combustíveis perspective 342.7 300.7

Depreciation & Amortization (17.6) (17.7)


Income Tax (34%) 8.1 11.0

Adjustments from unrealized profits 2.9 -

Net Income - Cosan perspective 329.9 279.4

K.2 Earnings from Raízen Energia to Cosan perspective



EBITDA - Raízen Energia perspective 216.9 632.7



EBITDA - Cosan perspective 182.4 627.5

Net Income - Raízen Energia perspective (196.2) 251.6

Depreciation & Amortization (43.1) (49.9)


Financial Expenses (2.0) (2.0)

Income Tax (34%) 20.3 19.4


Net Income - Cosan perspective (249.9) 213.9

K.3 Earnings from Comgás to Cosan perspective



Net Income - Comgás perspective 146.3 330.4

Amortization adjustments (30.5) (30.5)

Income Tax and Social Contribution 10.4 10.4

Net Income - Cosan perspective 126.2 310.3

Documents

2Q17 Earnings Release - Cosan IRir.cosan.com.br/enu/1823/2Q17EarningsReport_CSAN3_Eng.pdf · 2Q17 Earnings Release São Paulo, August 09, 2017 – COSAN S/A INDÚSTRIA E COMÉRCIO