CZZ Cosan Limiited

Second quarter was probably the most challenging one in the history of our company. The Covid-19 pandemic turned into a global crisis as the virus spread, taking a heavy toll on human lives all over the world and in Brazil. Measures to control the pandemic were intensified across the country and deepened the economic crisis. Brazilian real plunged against the dollar surging to all-time high levels, while oil and sugar prices fluctuations added complexity to the quarter.

All our businesses have been hard hit by social distancing measures and the sharp decline in demand affected Raízen Combustíveis, Compass and Moove results significantly. In addition, volatility in fuel prices set further challenges to the fuel distribution sector, especially in Argentina. The good news is that the worst seems to have been left behind and business activity has been gradually improving from the lowest point in April. Raizen Energia 20/21 crop year started with good perspectives for productivity recovery, which, combined with good hedging, calls for sound returns. Rumo delivered robust results this quarter, supported by high demand for transportation on the back of good soybean harvest and continuous improvement in operational efficiency. We remain focused on keeping our operations - considered essential to the countries we operate - running safely, while preserving the health and safety of our people and taking care of our customers, suppliers and all stakeholders.

Reinforcing our commitment to a sustainable future, we published our 2019 Sustainability Report, highlighting our ten commitments to sustainable development, in line with 17 SDGs set by UN as part of 2030 Agenda for Sustainable Development. Economic, social and environmental goals are already embedded in our company principles, and we will keep pursuing them through concrete and well-structured actions across all companies of our portfolio until 2030. And this is only the beginning. Think about our ability to mobilize and multiply those goals through the production of more than 2.5 billion liters of ethanol, distributed through more than 7 thousand gas stations at Raizen; with more than 2 million customers at Comgas; with the growing presence of Moove in more than 13 countries and through 14 thousand km of Rumo railroads crossing Brazil´s agriculture grounds.

For us at Cosan, values and management are the pillars of sustainability. Values are the principles that have always guided our actions: operational excellence, health and safety of our people, quality of products and services, socio-environmental responsibility. Management means assuring we put our execution capabilities at the service of our values, balancing risk and return, investments and capital discipline, agility and consistency, efficiency and safety, present and future.

Challenging times are when those pillars are tested. And this is in fact a rather special moment for Cosan: we announced the long-awaited simplification of the Group’s corporate structure. This is an important milestone of our continuous effort to enhance our corporate governance. For more than a decade, Cosan has built an incredible portfolio of businesses through mergers, acquisitions, and partnerships, leading to what the company is today. We had to adapt to accommodate portfolio growth and manage risk, which is why we ended up with three different holdings. Over the last four years, we devoted a large amount of cash to buy stock across the portfolio, reinforcing our confidence in the value creation potential of our assets. We spent around R$ 8.6 billion and are now ready for the next big step: combining the three holdings into a single one. CZZ and RLOG will be merged into CSAN, which will remain listed under Novo Mercado in the Brazilian exchange. As part of the proposed transaction, CSAN will issue American depositary receipts, (ADRs), to be listed in the New York Stock Exchange. The transaction will result in a unified shareholder base, with a single class of shares and same voting rights, while consolidating the free floats of CSAN, RLOG and CZZ, therefore increasing liquidity. CSAN will be consolidated as the platform for projects development.

We have been talking about simplification for quite a while, with ideal structure being one single holding and four listed businesses at some point in time. Rumo announced s follow on to increase capital investments, as the recently announced renewal of Paulista Network offers additional opportunities for the company, and to pre-pay concession fees as provided for by concession contract. And we registered a primary public offering for common shares issued by Compass Gás e Energia, the Group subsidiary created to provide gas and power solutions in Brazil.

Crisis times either enable or accelerate big changes. Our companies are leaders in their respective areas of activity, therefore driving transformation towards a future of clean energy and more efficient and reliable logistics. We have a unique portfolio, a strong culture grounded on strong and sustainable values, and a team that makes all the difference, with the ability to focus in the present while shaping a better future. We are writing a new chapter of our story and we will do it together!

Stay safe,

Luis Henrique Guimarães

CZZ’s CEO

Executive Summary 2Q20

Cosan Limited (NYSE: CZZ)

CZZ pro forma adjusted EBITDA decreased 39% in 2Q20, reaching R$ 2.0 billion, reflecting the impacts caused by Covid-19 pandemic mainly on fuel distribution operations in Brazil and Argentina, which also recorded inventory losses in the period. On the other hand, Rumo contributed to partially offset this impact, on the back of higher volumes sustained by record soybean crop. Adjusted Net Debt/EBITDA increased to 2.8x, due to lower cash generation and EBITDA contribution from Raízen.

Highlights of each operating segment:

Cosan S.A. (CSAN3):

Raízen Combustíveis

Cosan’s fuel distribution business was the most affected by the crisis in 2Q20. Results were impacted by lower fuel consumption due to social distancing measures, coupled with losses caused by steep decline in prices Therefore, consolidated adjusted EBITDA (Brazil and Argentina) came negative at R$213 million.

RC Brazil: Adjusted EBITDA totaled R$65 million (-88%) in 2Q20, hit by a severe combination of unprecedented lower demand and a sharp drop in fuel prices early in the quarter. Volumes sold were 24% lower, especially in the Otto cycle (-31%) and aviation fuel (-76%). Diesel sales were more resilient (-8%) sustained by demand from heavy transportation and agribusiness. Lower sales caused significant loss of scale and lower cost dilution, also impacting operating margins in the period. It is worth noting that since May, both demand and prices improved, calling better outlook for the second half of 2020.

RC Argentina: Adjusted EBITDA came negative at US$51 million (-R$279 million). The quarter was affected by 42% lower sales volume due to stringent lockdown implemented in the country. Raízen interrupted refining activities for approximately 30 days, resulting in lower cost dilution in the

period. 2Q20 was also impacted by higher inventory cost, built at pre-pandemic international oil prices.

Raízen Energia: Adjusted EBITDA was 18% lower in the first quarter of the 2020/21 crop year, totaling R$329 million, due to lower own sugar sales volumes, in line with commercialization strategy for the crop year. This effect was partially offset by better prices and lower unit cost (ex-CONSECANA). Drier weather resulted in a higher concentration of sucrose in the cane and 5% higher crushing, totaling 22 million tons in the period.

Compass Gas and Energy: Compass Adjusted EBITDA totaled R$474 million (-19%) in 2Q20, mainly affected by

27% lower volume distributed by Comgás and R$51 million increase in bad debt provisions, offsetting SG&A expenses reduction. Weaker economic activity caused lower industrial and commercial segments sales, 27% and 54% respectively compared to the same period last year. But volumes sold to the residential segment grew by 15%, due to stay-at-home requirements, lower average temperature, and 96,000 new clients added in the last 12 months. Lower volumes were therefore partially offset by better natural gas sales mix.

Moove: Adjusted EBITDA totaled R$44 million (-43%) in the quarter, reflecting a 35% decrease in sales of lubricants across all the countries in which Moove operates. It is worth mentioning that worst sales performance occurred in April, but all markets presented gradual sales improvement thereafter.

Cosan S.A. ended 2Q20 with pro forma adjusted EBITDA of R$518 million (-57%). Net loss for the period came to R$174 million, also affected by Brazilian Real depreciation on the non-hedged portion of the perpetual bond. Pro forma cash generation (FCFE) totaled R$1.1 billion, due to higher fund raisings at Comgás and Raízen, partially offset by lower cash generated by operations. Leverage (net debt/pro forma EBITDA) increased to 2.4x, due to lower operational cash generation and decrease in EBITDA contribution from the businesses.

Cosan Logística S.A. (RLOG3):

Rumo’s transported volumes in 2Q20 increased 14% yearly in 2Q19, reaching 16.4 billion RTK. The country’s good exports performance supported the 18% increase in grain-transported volume, with strong results in both North and South Operations. The favorable market conditions for sugar compared to ethanol led to an expansion in the commodity’s exports and transported volume by 31%. The fertilizers segment continues to expand rapidly, posting a 23% growth in transported volume. Transportation of industrial products and containers, however, was negatively impacted by the Covid-19 pandemic, decreasing 14% and 4%, respectively.

Adjusted EBITDA was R$982 million, growing 6 % compared to 2Q19. Fixed costs and general and administrative expenses grew only 1%, excluding the Central Network, even though the Company has incurred higher costs due to contingency measures against Covid-19. Variable costs increased 8%, less than the volume growth, reflecting: (i) R$61 million decrease in fuel costs, which did not completely offset the tariff loss; and (ii) higher costs with logistics solutions, due to additional contingency costs as a result of the pandemic and the 47% increase in volume in this segment. Hence, adjusted EBITDA margin grew 0.2 p.p. to 54% compared to last year. Rumo posted net income of R$405 million (compared to R$185 million in 2Q19) and leverage of 2.0x broad net debt/LTM Adjusted EBITDA.

RC - Brazil

Raízen

Energia

Desconsolidation

Raízen

Raízen

Energia

Desconsolidation

Raízen