Report of Foreign Issuer (6-k)

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant To Rule 13a-16 Or 15d-16

of the Securities Exchange Act of 1934

For the month of August 2017

Commission File Number: 1-33659

COSAN LIMITED

(Translation of registrant’s name into English)

Av. Juscelino Kubitschek, 1327, – 4 ^th floor

São Paulo, SP 04543-000 Brazil

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:


Form 20-F X		Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):


Yes		No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):


Yes		No X

COSAN LIMITED


Item
1.		CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS OF JUNE 30, 2017
2.		2Q17 EARNINGS RELEASE
3.		SIGNATURES

Cosan Limited

Consolidated interim financial statements as of

June 30, 2017

Cosan Limited

Consolidated interim financial statements

Contents


	Page
Report on review of interim financial information		3
Consolidated statements of financial position		4
Consolidated statements of profit or loss and other comprehensive income		6
Consolidated statements of changes in equity		8
Consolidated statements of cash flows		10
Notes to the consolidated interim financial statements		12

Report on Review of Interim Financial Information

To the Board of Directors and Shareholders of

Cosan Limited

Bermuda

Introdução

We have reviewed the accompanying consolidated interim financial information of Cosan Limited (“Company”) contained in the Quarterly Information Form—ITR for the quarter ended June 30, 2017, which comprises the statement of financial position as of June 30, 2017, and the respective statements of profit and loss and comprehensive income for the three and six-month periods then ended and changes in equity and cash flows for the six-month period then ended, including the notes.

The Company’s management is responsible for the preparation and presentation of this interim financial information in accordance with IAS 34—Interim Financial Reporting, issued by the International Accounting Standards Board—IASB. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with the Brazilian and International standards on review engagements of interim financial information ( NBC TR 2410—Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410—Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the audit standards and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the Quarterly Information Form—ITR referred to above has not been prepared, in all material respects, in accordance with IAS 34—Interim Financial Reporting, issued by the International Accounting Standards Board—IASB.

São Paulo, August 10, 2017

KPMG Auditores Independentes

CRC 2SP014428/O-6

Rogério Hernandez Garcia

Accountant CRC 1SP213431/O-5

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais – R$)


	Note		June 30, 2017		December 31, 2016
Assets
Cash and cash equivalents		7		3,936,955		4,499,588
Marketable securities		8		2,679,808		1,291,580
Trade receivables		9		1,143,329		1,130,624
Derivative financial instruments		27		230,130		20,654
Inventories				580,902		630,752
Receivables from related parties		11		58,970		58,517
Income tax receivable				209,369		364,980
Other current tax receivable		10		281,964		178,856
Dividends receivable				42,523		144,160
Other current assets				228,776		449,298

Total current assets				9,392,726		8,769,009
Trade receivables		9		47,663		54,806
Restricted cash				219,719		200,999
Deferred tax assets		21		1,662,340		1,490,002
Receivables from related parties		11		152,607		183,740
Income tax receivable				236,002		121,376
Other non-current tax receivable		10		766,756		739,849
Judicial deposits		22		740,568		714,684
Derivative financial instruments		27		714,768		730,426
Other non-current assets				850,151		835,730
Investments in associates		12		286,720		286,947
Investments in joint ventures		13		8,628,851		8,506,395
Property, plant and equipment		14		11,124,766		10,726,448
Intangible assets and goodwill		15		16,923,025		17,109,439

Total non-current assets				42,353,936		41,700,841

Total assets				51,746,662		50,469,850

The accompanying notes are an integral part of these consolidated interim financial statements

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais – R$)


	Note		June 30, 2017			December 31, 2016
Liabilities
Loans, borrowings and debentures		16		3,138,701			2,404,009
Leases		17		342,684			472,632
Real estate credit certificates				104,776			105,422
Derivative financial instruments		27		4,049			40,526
Trade payables		19		2,007,650			2,032,542
Employee benefits payable				208,599			238,159
Income tax payables				23,898			83,113
Other taxes payable		20		287,604			261,169
Concessions payables		18		26,987			27,662
Dividends payable				28,227			93,500
Payables to related parties		11		268,723			237,081
Deferred revenue				15,160			14,167
Other financial liabilities				275,260			203,303
Other current liabilities				409,111			415,782

Total current liabilities				7,141,429			6,629,067

Loans, borrowings and debentures		16		17,361,042			15,934,488
Leases		17		780,737			924,911
Real estate credit certificates				38,920			90,323
Preferred shareholders payable in subsidiaries				1,531,250			1,769,427
Derivative financial instruments		27		192,984			255,318
Trade payables		19		258			568
Other taxes payable		20		155,833			153,776
Income tax payables				13,009			—
Provision for legal proceedings		22		1,257,487			1,268,564
Concessions payables		18		2,755,454			2,580,144
Post-employment benefits		28		454,413			441,480
Deferred tax liabilities		21		3,697,703			3,550,565
Deferred revenue				60,672			62,207
Other non-current liabilities				645,193			799,263

Total non-current liabilities				28,944,955			27,831,034

Total liabilities				36,086,384			34,460,101

Shareholders’ equity		23
Share capital				5,328			5,328
Additional paid-in capital				3,926,857			4,051,591
Accumulated other comprehensive loss				(284,387	)		(480,454	)
Retained earnings				2,607,411			2,695,998

Equity attributable to:
Owners of the Company				6,255,209			6,272,463
Non-controlling interests		12		9,405,069			9,737,286

Total shareholders’ equity				15,660,278			16,009,749

Total shareholders’ equity and liabilities				51,746,662			50,469,850

The accompanying notes are an integral part of these consolidated interim financial statements

Cosan Limited

C onsolidated statements of profit or loss and other comprehensive income

For the three and six month period ended June 30, 2017 and 2016

(In thousands of Brazilian Reais – R$, except earnings per share)


	Note		April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
Net sales				3,368,507			6,154,238			3,340,388			6,459,456
Cost of sales				(2,202,172	)		(4,161,613	)		(1,995,688	)		(4,061,792	)

Gross profit				1,166,335			1,992,625			1,344,700			2,397,664

Selling expenses				(281,435	)		(539,018	)		(257,806	)		(494,635	)
General and administrative expenses				(202,909	)		(410,283	)		(270,098	)		(498,062	)
Other expenses, net		25		(47,720	)		(63,760	)		(28,964	)		(66,318	)

Operating expenses				(532,064	)		(1,013,061	)		(556,868	)		(1,059,015	)

Income before interest in earnings of investees and financial results				634,271			979,564			787,832			1,338,649

Interest in earnings of associates		12		(1,628	)		1,326			(3,600	)		(5,158	)
Interest in earnings of joint ventures		13		40,397			296,094			252,594			693,938

Interest in earnings of investees				38,769			297,420			248,994			688,780
Finance expense				(867,138	)		(1,765,370	)		(845,403	)		(1,724,271	)
Finance income				234,762			517,771			325,016			571,567
Foreign exchange gain (losses), net				(312,621	)		(193,733	)		534,151			1,059,554
Derivatives				260,516			138,458			(769,330	)		(1,473,471	)

Financial results		26		(684,481	)		(1,302,874	)		(755,566	)		(1,566,621	)
(Loss) profit before taxes				(11,441	)		(25,890	)		281,260			460,808

Income tax (expenses) benefits		21
Current				(64,906	)		(41,339	)		(114,874	)		(213,947	)
Deferred				28,926			(38,470	)		49,989			133,641

				(35,980	)		(79,809	)		(64,885	)		(80,306	)

(Loss) profit from continuing operations				(47,421	)		(105,699	)		216,375			380,502
Profit from discontinued operation, net of tax				—			—			25,595			40,548

(Loss) profit for the period				(47,421	)		(105,699	)		241,970			421,050

Cosan Limited

Consolidated statements of profit or loss and other comprehensive income

For the three and six month period ended June 30, 2017 and 2016

(In thousands of Brazilian Reais – R$, except earnings per share)


	Note		April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
Other comprehensive income
Items that will never be reclassified to profit or loss
Financial instruments—common transactions				—			9,000			6,000			6,000

				—			9,000			6,000			6,000
Items that are or may be reclassified to profit or loss:
Foreign currency translation effect				(30,302	)		(15,865	)		112,145			145,955
Gain (loss) on cash flow hedge in joint ventures and subsidiary				150,908			322,203			(113,645	)		(140,737	)
Changes in fair value of available for sale securities				3,194			3,323			1,486			(1,508	)
Taxes				—			—			1,006			1,883

				123,800			309,661			992			5,593
Total other comprehensive income, net of tax				123,800			318,661			6,992			11,593

Comprehensive income—Continued operation				76,379			212,962			248,962			432,643

Comprehensive (loss) income—Discontinued operation				—			—			(218	)		197

Total comprehensive income				76,379			212,962			248,744			432,840

Total net (loss) income attributable to:
Owners of the Parent				(44,781	)		(23,666	)		25,316			155,578
Non-controlling interests				(2,640	)		(82,033	)		216,654			265,472

				(47,421	)		(105,699	)		241,970			421,050
Total comprehensive income attributable to:
Owners of the Company				25,637			172,401			57,498			191,081
Non-controlling interests				50,742			40,561			191,246			241,759

				76,379			212,962			248,744			432,840
Basic (loss) earnings per share from:		24
Continuing operations			R$	(0.1692	)	R$	(0.0894	)	R$	0.0724		R$	0.5448
Discontinuing operations				—			—		R$	0.0233		R$	0.0430

			R$	(0.1692	)	R$	(0.0894	)	R$	0.0957		R$	0.5878
Diluted (loss) earnings per share from:		24
Continuing operations			R$	(0.2295	)	R$	(0.1502	)	R$	0.0103		R$	0.4809
Discontinuing operations				—			—		R$	0.0232		R$	0.0428

			R$	(0.2295	)	R$	(0.1502	)	R$	0.0335		R$	0.5237

The accompanying notes are an integral part of these consolidated interim financial statements

Cosan Limited

Consolidat ed statements of changes in equity

For the six month period ended June 30, 2017 and 2016

(In thousands of Brazilian Reais – R$)


	Share capital		Capital reserve			Accumulated other comprehensive loss			Retained earnings			Equity attributable to owners of the Company			Non-controlling interest			Total equity
At December 31, 2016		5,328		4,051,591			(480,454	)		2,695,998			6,272,463			9,737,286			16,009,749

Net loss for the period		—		—			—			(23,666	)		(23,666	)		(82,033	)		(105,699	)
Other comprehensive income:
Gain on cash flow hedge in joint ventures and subsidiary		—		—			200,523			—			200,523			121,680			322,203
Foreign currency translation effects		—		—			(12,122	)		—			(12,122	)		(3,744	)		(15,866	)
Financial instruments—common transactions		—		—			5,598			—			5,598			3,402			9,000
Change in fair value of available for sale securities		—		—			2,068			—			2,068			1,256			3,324

Total comprehensive income for the period		—		—			196,067			(23,666	)		172,401			40,561			212,962

Contributions by and distributions to owners of the Company:
Capital increase in subsidiary		—		—			—			—			—			2,815			2,815
Dividends—non-controlling interests		—		(13,274	)		—			—			(13,274	)		13,274			—
Share options exercised—Subsidiaries		—		10,425			—			—			10,425			6,057			16,482
Dividends		—		—			—			(64,921	)		(64,921	)		(292,020	)		(356,941	)
Share-based compensation—Subsidiaries		—		2,814			—			—			2,814			3,378			6,192

Total contributions by and distributions to owners of the Company		—		(35	)		—			(64,921	)		(64,956	)		(266,496	)		(331,452	)

Transactions with owners of the Company
Change of shareholding interest in subsidiary		—		(124,699	)		—			—			(124,699	)		(106,282	)		(230,981	)

At June 30, 2017		5,328		3,926,857			(284,387	)		2,607,411			6,255,209			9,405,069			15,660,278

The accompanying notes are an integral part of these consolidated interim financial statements

Cosan Limited

Consolidated statements of changes in equity

or the six month period ended June 30, 2017 and 2016

(In thousands of Brazilian Reais – R$)


	Share capital		Capital reserve			Accumulated other comprehensive loss			Retained earnings			Equity attributable to owners of the Company			Non-controlling interest			Total equity
At January 01, 2016 (Restated)		5,328		4,006,562			(478,207	)		2,380,035			5,913,718			10,275,532			16,189,250

Net profit for the period (Restated)		—		—			—			155,578			155,578			265,472			421,050
Other comprehensive income:
Loss on cash flow hedge in joint ventures and subsidiary		—		—			(87,055	)		—			(87,055	)		(52,245	)		(139,300	)
Foreign currency translation effects		—		—			119,024			—			119,024			26,931			145,955
Financial instruments—common transactions		—		—			3,751			—			3,751			2,249			6,000
Change in fair value of available for sale securities		—		—			(217	)		—			(217	)		(648	)		(865	)

Total comprehensive income for the period		—		—			35,503			155,578			191,081			241,759			432,840

Contributions by and distributions to owners of the Company:
Exercise of stock options plan		—		578			—			—			578			347			925
Dividends—non-controlling interests		—		(7,091	)		—			—			(7,091	)		7,091			—
Dividends		—		—			—			(86,470	)		(86,470	)		(687,799	)		(774,269	)
Share-based compensation—Subsidiaries		—		3,148			—			—			3,148			2,748			5,896

Total contributions by and distributions to owners of the Company		—		(3,365	)		—			(86,470	)		(89,835	)		(677,613	)		(767,448	)

Transactions with owners of the Company
Change of shareholding interest in subsidiary		—		49,293			—			—			49,293			1,765,524			1,814,817

Transactions with owners of the Company		—		49,293			—			—			49,293			1,765,524			1,814,817

At June 30, 2016 (Restated)		5,328		4,052,490			(442,704	)		2,449,143			6,064,257			11,605,202			17,669,459

The accompanying notes are an integral part of these consolidated interim financial statements

Cosan Limited

Consolidated st atements of cash flows

For the six month period ended June 30, 2017 and 2016

(In thousands of Brazilian Reais – R$)


	Note		January 1, 2017 to June 30, 2017			January 1, 2016 to June 30, 2016 (Restated)
Cash flows from operating activities
(Loss) profit before taxes				(25,890	)		460,808
Adjustments for:
Depreciation and amortization				897,360			716,316
Lease and concession				95,223			100,254
Interest in earnings of associates		12		(1,326	)		5,158
Interest in earnings of joint ventures		13		(296,094	)		(693,938	)
Losses on disposals of assets				16,791			8,517
Option shares expense				6,192			5,896
Provision for legal proceedings				41,528			60,081
Indexation charges, interest and exchange, net				1,386,044			1,680,583
Other				61,462			(59,007	)

				2,181,290			2,284,668
Changes in:
Trade receivables				(6,707	)		(88,577	)
Inventories				51,831			3,785
Recoverable taxes				(86,616	)		118,164
Related parties				9,534			(43,201	)
Trade payables				(91,189	)		(97,630	)
Other financial liabilities				50,332			(102,005	)
Employee benefits				(99,586	)		(82,805	)
Provision for legal proceedings				(37,985	)		(39,593	)
Judicial deposits				(15,849	)		(10,729	)
Post-employment benefits				(13,209	)		(12,685	)
Income tax and other tax				(14,729	)		(112,452	)
Discontinued operation				—			4,769
Concessions payable				(55,579	)		(53,963	)
Other assets and liabilities, net				39,479			(141,552	)

				(270,273	)		(658,474	)

Net cash generated by operating activities				1,911,017			1,626,194

Cash flows from investing activities
Capital contribution in associates				(3,967	)		(2,715	)
Marketable securities				(1,284,457	)		(1,202,950	)
Restricted cash				(18,720	)		71,002
Dividends received from associates				6,279			3,942
Dividends received from joint ventures				576,675			443,303
Discontinued operation				—			2,012
Put option exercised paid				(275,780	)		(186,052	)
Acquisition of property, plant and equipment, intangible assets and investments				(1,130,752	)		(1,048,881	)
Related parties				—			11,338
Cash received on sale of fixed assets, and intangible assets				8,097			—

Net cash used in investing activities				(2,122,625	)		(1,909,001	)

Cosan Limited

Consolidated statements of cash flows

For the six month period ended June 30, 2017 and 2016

(In thousands of Brazilian Reais – R$)


	Note		January 1, 2017 to June 30, 2017			January 1, 2016 to June 30, 2016 (Restated)
Cash flows from financing activities
Loans and borrowings and debentures raised		16		2,549,576			5,305,061
Amortization of principal on loans, borrowings and debentures		16		(919,914	)		(5,572,362	)
Payment of interest on loans, borrowings and debentures		16		(757,662	)		(863,386	)
Payment of principal on financing leases				(210,265	)		(230,889	)
Payment of interest on financing leases				(159,160	)		(176,850	)
Non-controlling interest capital increase				1,891			1,978,953
Non-controlling interest subscription				20,375			28,764
Real estate credit certificates				(64,936	)		(64,218	)
Derivative financial instruments				(144,837	)		(21,336	)
Dividends paid				(687,306	)		(968,001	)
Acquisition of non-controlling interest				(10,192	)		—
Treasury shares				(25,922	)		—
Share options exercised—subsidiaries				16,346			925

Net cash used in financing activities				(392,006	)		(583,339	)

Decrease in cash and cash equivalents				(603,614	)		(866,146	)

Cash and cash equivalents at beginning of the period				4,499,588			3,505,824

Effect of exchange rate fluctuations on cash held				40,981			(95,644	)

Cash and cash equivalents at end of the period				3,936,955			2,544,034

Supplemental cash flow information
Income taxes paid				10,661			53,806

The accompanying notes are an integral part of these consolidated interim financial statements

Cosan Limited

Note s to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

1	Operations

Cosan Limited (“Cosan”) was incorporated in Bermuda on April 30, 2007. Cosan’s class A common shares are traded on the New York Stock Exchange (NYSE) (ticker—CZZ). The BDRs (Brazilian Depositary Receipts) representing Cosan’s class A common shares are listed on the Brazilian Stock Exchange (BM&FBovespa) (ticker—CZLT33). Mr. Rubens Ometto Silveira Mello is the ultimate controlling shareholder of Cosan. Cosan controls its subsidiaries Cosan S.A. Indústria e Comércio (“Cosan S.A.”) and Cosan Logística S.A. (“Cosan Logística”) through a 62.39% and 72.43% interest, respectively. Cosan, Cosan S.A., Cosan Logística and its subsidiaries are collectively referred to as the “Company”.

The Company’s primary activities are in the following business segments: (i) Piped natural gas distribution to part of the State of São Paulo through its subsidiary Companhia de Gás de São Paulo – COMGÁS (“COMGÁS”); (ii) Logistics services including transportation, port loading and storage of sugar, leasing or lending of locomotives, wagons and other railway equipment, through its indirect subsidiaries Rumo S.A. (“Rumo”), logistic segment (“Logistic”); (iii) Production and distribution of lubricants, through its indirect subsidiaries Cosan Lubrificantes e Especialidades S.A. (“Moove”) and Comma Oil & Chemicals Ltd. (“Comma”), under the Mobil licensed trademark in Brazil, Bolivia, Uruguay and Paraguay, in addition to the European and Asian market using the Comma brand and corporate activities (“Lubricants”); and (iv) other investments, in addition to the corporate structures of the Company (“Cosan’s other business”).

The Company also holds interests in two joint ventures (“JVs”): (i) Raízen Combustíveis S.A. (“Raízen Combustíveis”), a fuel distribution business, and (ii) Raízen Energia S.A. (“Raízen Energia”), which operates in the production and marketing of sugar, ethanol and energy cogeneration, produced from sugar cane bagasse.

At June 30, 2017, Cosan Logística had a negative consolidated working capital of R$28,210 and loss for the period of R$279,649. Nevertheless, it presented a net cash generation from operations of R$1,011,460 and made investments in the modernization of its fleet and improving the railway network in the amount of R$950,064, in line with its business plan. The capital increase associated with the debt rescheduling implemented in 2016, as well as the issuance of Senior Notes 2024 in 2017 (note 16), equated the Company’s operational continuity risk over a short-term horizon.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

2	Basis of preparation

2.1

Statement of compliance

The consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB). They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company’s financial position and performance since the last annual consolidated financial statements as at and for the year ended December 31, 2016.

The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2016, except for the adoption of new standards and interpretations effective as of January 1, 2017. The Company has not early adopted any other standard, interpretation or amendment that has been issued.

All own relevant information of the interim financial statements, and only they, are being highlighted, and these correspond to those used by management in its management.

These consolidated interim financial statements were authorized for issue by the Board of Directors on August 3, 2017.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

3	Significant accounting policies

The accounting policies set out below have been applied consistently by the Company to all periods presented in this consolidated interim financial statements.

3.1

Basis of consolidation

The consolidated statements include the accounts of Cosan and its subsidiaries. Cosan’s subsidiaries are listed below:


	June 30, 2017			December 31, 2016
Directly owned subsidiaries
Cosan Logística S.A.		72.43	%		72.42	%
Cosan S.A. Indústria e Comércio		62.39	%		62.29	%
Interest of Cosan S.A. in its subsidiaries
Comma Oil Chemicals Limited		100.00	%		100.00	%
Companhia de Gás de São Paulo – COMGÁS ⁽ⁱ⁾		63.11	%		62.66	%
Cosan Biomassa S.A. ⁽ⁱⁱ⁾		100.00	%		100.00	%
Cosan Cayman II Limited		100.00	%		100.00	%
Cosan Global Limited		100.00	%		100.00	%
Cosan Investimentos e Participações S.A.		100.00	%		100.00	%
Cosan Lubes Investments Limited		100.00	%		100.00	%
Cosan Lubrificantes e Especialidades S.A.		100.00	%		100.00	%
Cosan Luxembourg S.A.		100.00	%		100.00	%
Cosan Overseas Limited		100.00	%		100.00	%
Cosan Paraguay S.A.		100.00	%		100.00	%
Cosan US, Inc.		100.00	%		100.00	%
Ilha Terminal Distribuição de Produto Químicos Ltda.		100.00	%		100.00	%
Pasadena Empreendimentos e Participações S.A.		100.00	%		100.00	%
Zip Lube S.A.		100.00	%		100.00	%
Rumo S.A. ⁽ⁱⁱⁱ⁾		1.71	%		0.86	%

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	June 30, 2017			December 31, 2016
Interest of Cosan Logística S.A. in its subsidiaries
Rumo S.A.		28.47	%		28.37	%
Logispot Armazéns Gerais S.A.		14.52	%		14.47	%
Elevações Portuárias S.A.		28.47	%		28.37	%
Rumo Luxembourg Sarl		28.47	%		28.37	%
ALL Intermodal S.A.		28.47	%		28.37	%
Rumo Malha Oeste S.A.		28.47	%		28.37	%
Rumo Malha Paulista S.A.		28.47	%		28.37	%
Rumo Malha Sul S.A.		28.47	%		28.37	%
Rumo Malha Norte S.A.		28.22	%		28.22	%
ALL Armazéns Gerais Ltda.		28.47	%		28.37	%
Portofer Ltda.		28.47	%		28.37	%
Boswells S.A.		28.47	%		28.37	%
Brado Holding S.A.		28.47	%		28.37	%
Brado Logística e Participações S.A.		17.71	%		17.65	%
Brado Logística S.A.		17.71	%		17.65	%
ALL Serviços Ltda.		28.47	%		28.37	%
ALL Argentina S.A.		28.47	%		28.37	%
ALL Mesopotâmica S.A.		20.09	%		20.02	%
ALL Central S.A.		20.94	%		20.87	%
Paranaguá S.A.		28.44	%		28.32	%
ALL Rail Management Ltda.		14.24	%		14.19	%
PGT S.A.		28.47	%		28.37	%

(i)	As of June 30, 2017, the Company increased its interest, in COMGÁS, to 63.11% due to the capital increase arising from the partial use of the goodwill tax benefit, according to Ordinary / Extraordinary General Meeting of April 20, 2017, of the subsidiary COMGAS.

(ii)	The Company recorded in the first quarter of 2017, a put option for the repurchase of shares of non-controlling shareholders, according to the shareholder agreement.

(iii)

The direct subsidiary Cosan S.A has a financial investment of 22,959,974 shares of Rumo SA, which is an indirect subsidiary of the Company. Therefore, for the consolidated financial statements of the Company, the interest of 1.71% (0.86% stake as of December 31, 2016) in the share capital of Rumo S.A is recognized as an equity investment.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

4	New standards and interpretations not yet effective

A number of new standards and amendments to standards are effective for annual periods beginning after January 1, 2017 and earlier application is permitted; however, the Group has not early adopted the following new or amended standards in preparing these consolidated interim financial statements.

IFRS 15—Revenue from contracts with customers

The significant impacts related to IFRS 15 are expected to be in the disclosures of the notes to the financial statements and in the policies applied to the control of revenues. Material impacts on revenue recognition are not expected.

IFRS 9—Financial instruments

The application of the new standard may result in a review of the provision for doubtful accounts. The study on possible impacts has not yet been completed.

IFRS 16 Leases

The Company began an initial assessment of the potential impact on its financial statements. So far, the most significant impact identified is that the subsidiary Rumo S.A will recognize new assets and liabilities for its operating leases related to concession. The analyses of the impacts on investments in joint ventures are ongoing.

The Company has not yet quantified the impact of adopting IFRS 16 on its assets and liabilities. The quantitative effect of the adoption of IFRS 16 will depend specifically on the transition method chosen, the use of practical files and recognition exemptions, and any additional leases that the Company will enter into. The Company expects to disclose its transition approach and quantitative information prior to adoption.

Amendments to IAS 7 Statement of Cash Flows

The amendments require entities to provide disclosures about changes in their liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (such as foreign exchange gains or losses). On initial application of the amendment, the Company is not required to provide comparative information for preceding periods. The Company is not required to provide additional disclosures in its interim consolidated financial statements, but will disclose additional information in its annual consolidated financial statements for the year ended December 31, 2017.

Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrecognized Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how the Company should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Company is required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognized in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. The Company is not required to provide additional disclosures in its interim consolidated financial statements, but will disclose additional information in its annual consolidated financial statements for the year ended December 31, 2017.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

There are no other IFRS standards or IFRIC interpretations that have not come into effect and are expected to have a material impact on the Company.

5	Changes adopted

The changes below were applied for the first time in 2016 did not result in a significant impact on the Company’s annual consolidated financial statements or in the interim financial statements.

The nature and the impact of each new standard or amendment are described below:

(i)

Discontinued operation

Due to the partial sale of Radar segment’s shares and as required by IFRS 5— Non-current assets available for sale and discontinued operations —the Company is restating the presentation of its income statement for the three and six months periods ended June 30, 2016.

(ii)

Correction of immaterial errors – Tax installments

During the year of 2016, the Company identified an error in the accounting record of tax installment liabilities, related to others federal taxes than income tax, referring to prior years.

Management concluded that the effect of the correction of error had no material impact on the Company’s interim financial statements for the three and six months periods ended June 30, 2016.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

The impacts of both restatements for the three and six months periods ended June 30, 2016 are as follows:


	April 1, 2016 to June 30, 2016 (Restated)												January 1, 2016 to June 30, 2016 (Restated)
	As issued			Discontinued operation ⁽ⁱ⁾			Tax installment ⁽ⁱⁱ⁾			Restated			As issued			Discontinued operation ⁽ⁱ⁾			Tax installment ⁽ⁱⁱ⁾			Restated
Net sales		3,364,402			(24,014	)		—			3,340,388			6,506,384			(46,928	)		—			6,459,456
Cost of sales		(1,995,688	)		—			—			(1,995,688	)		(4,061,792	)		—			—			(4,061,792	)

Gross profit		1,368,714			(24,014	)		—			1,344,700			2,444,592			(46,928	)		—			2,397,664

Operating expense		(555,104	)		(1,764	)		—			(556,868	)		(1,065,039	)		6,024			—			(1,059,015	)

Income before interest in earnings of investees and financial results		813,610			(25,778	)		—			787,832			1,379,553			(40,904	)		—			1,338,649

Interest in earnings of associates and joint ventures		248,994			—			—			248,994			688,780			—			—			688,780
Financial results		(748,664	)		(4,364	)		(2,538	)		(755,566	)		(1,553,417	)		(8,127	)		(5,077	)		(1,566,621	)

Profit before taxes		313,940			(30,142	)		(2,538	)		281,260			514,916			(49,031	)		(5,077	)		460,808

Income tax expense		(70,295	)		4,547			863			(64,885	)		(90,515	)		8,483			1,726			(80,306	)

Profit from continuing operations		243,645			(25,595	)		(1,675	)		216,375			424,401			(40,548	)		(3,351	)		380,502

Profit from discontinued operations, net of tax		—			25,595			—			25,595			—			40,548			—			40,548

Profit for the period		243,645			—			(1,675	)		241,970			424,401			—			(3,351	)		421,050

Net income attributable to:
Owners of the Parent		26,362			—			(1,046	)		25,316			157,671			—			(2,093	)		155,578
Non-controlling interests		217,283			—			(629	)		216,654			266,730			—			(1,258	)		265,472

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

6	Operating segments

The following segment information is used by Cosan’s senior management (the “Chief Operating Decision Maker”) to assess the performance of the operating segments and to make decisions with regards to the allocation of resources. This information is prepared on a basis consistent with the accounting policies used in the preparation of the financial statements. Cosan evaluates the performance of its operating segments based on the measure of Earnings Before Interest Tax, Depreciation and Amortization (“EBITDA”). A reconciliation of EBITDA to profit (loss) is presented below.

Reported segments

(i)

Raízen Energia : production and marketing of a variety of products derived from sugar cane, including raw sugar (VHP), anhydrous and hydrated ethanol, and activities related to energy cogeneration from sugarcane bagasse. In addition, this segment holds interests in companies engaged in research and development on new technology;

(ii)

Raízen Combustíveis: distribution and marketing of fuels, mainly through a franchised network of service stations under the brand Shell throughout Brazil;

(iii)

COMGÁS: distribution of piped natural gas to part of the State of São Paulo (approximately 180 municipalities, including the region called Greater São Paulo) to customers in the industrial, residential, commercial, automotive, thermo generation and cogeneration sectors;

(iv)

Cosan Logística: logistics services for transport, storage and port loading of commodities, mainly for sugar products, leasing or lending of locomotives, wagons and other railway equipment; and

(v)

Moove : production and distribution of lubricants under the Mobil brand in Brazil, Bolivia, Uruguay and Paraguay, as well as European and Asian market with a Comma trademark

Reconciliation

(i)

Cosan Corporate: other investments, in addition to the corporate activities of the Company. The Cosan Corporate segment’s includes the subsidiaries responsible for raising funds for the group.

Although Raízen Energia and Raízen Combustíveis are equity accounted joint ventures and are no longer proportionally consolidated since adoption of IFRS 11, senior management continues to review segment information. A reconciliation of these segments is presented in the column “Deconsolidation IFRS 11”.

The following statement of financial position and profit or loss selected information by segment was prepared on the same basis as the accounting practices used in the preparation of consolidated information:

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	April 1, 2017 to June 30, 2017
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of income or loss:
Net sales		3,105,914			17,264,040			1,359,665			511,466			1,506,143			183			(20,369,954	)		(8,950	)		3,368,507			1,871,281			1,506,143
Domestic market		1,726,017			17,264,040			1,359,665			399,717			1,426,995			183			(18,990,057	)		(8,950	)		3,177,610			1,759,532			1,426,995
External market		1,379,897			—			—			111,749			79,148			—			(1,379,897	)		—			190,897			111,749			79,148
Cost of sales		(3,095,884	)		(16,499,280	)		(866,811	)		(354,429	)		(989,334	)		(548	)		19,595,164			8,950			(2,202,172	)		(1,221,755	)		(989,334	)
Gross profit		10,030			764,760			492,854			157,037			516,809			(365	)		(774,790	)		—			1,166,335			649,526			516,809
Selling expenses		(186,415	)		(327,978	)		(164,243	)		(99,902	)		(17,285	)		(5	)		514,393			—			(281,435	)		(264,150	)		(17,285	)
General and administrative expenses		(128,491	)		(102,422	)		(81,081	)		(21,175	)		(65,877	)		(34,776	)		230,913			—			(202,909	)		(137,210	)		(65,877	)
Other income (expense), net		(7,733	)		225,052			(9,308	)		(314	)		(2,211	)		(35,887	)		(217,319	)		—			(47,720	)		(45,509	)		(2,211	)
Financial results		(98,083	)		(71,169	)		(41,192	)		(4,377	)		(432,864	)		(206,048	)		169,252			—			(684,481	)		(256,940	)		(432,864	)
Financial expense		(231,311	)		(69,598	)		(141,297	)		(11,097	)		(459,653	)		(255,091	)		300,909			—			(867,138	)		(383,937	)		(459,653	)
Financial income		206,246			25,989			100,180			8,739			78,996			46,847			(232,235	)		—			234,762			157,169			78,996
Foreign exchange losses, net		(13,790	)		(159,127	)		(42,378	)		(7,547	)		(128,958	)		(133,738	)		172,917			—			(312,621	)		(213,937	)		(128,958	)
Derivatives		(59,228	)		131,567			42,303			5,528			76,751			135,934			(72,339	)		—			260,516			183,765			76,751
Interest in earnings of associates		(10,494	)		—			—			(2,568	)		1,412			43,411			10,494			(43,883	)		(1,628	)		(3,042	)		1,412
Interest in earnings of joint ventures		—			—			—			—			—			40,397			—			—			40,397			40,397			—
Income tax expense benefit		171,283			(143,768	)		(70,815	)		(10,775	)		(30,808	)		76,418			(27,515	)		—			(35,980	)		(12,220	)		(30,808	)

Profit (loss) from continuing operations		(249,903	)		344,475			126,215			17,926			(30,824	)		(116,855	)		(94,572	)		(43,883	)		(47,421	)		(29,148	)		(30,824	)
Total net income attributable to:
Owners of the Parent		(249,903	)		329,889			80,018			17,926			(6,951	)		(117,181	)		(79,986	)		(17,894	)		(44,781	)		(76,041	)		(9,550	)
Non-controlling interests		—			14,586			46,197			—			(23,873	)		326			(14,586	)		(25,989	)		(2,640	)		46,893			(21,274	)

		(249,903	)		344,475			126,215			17,926			(30,824	)		(116,855	)		(94,572	)		(43,883	)		(47,421	)		(29,148	)		(30,824	)
Other selected data:
Depreciation and amortization		505,515			162,420			128,070			19,901			298,739			4,095			(667,935	)		—			450,805			152,066			298,739
EBITDA		182,412			721,832			366,292			52,979			731,587			16,870			(904,244	)		(43,883	)		1,123,845			392,078			731,587
Additions to PP&E, intangible and biological assets		410,813			159,978			102,727			5,034			478,181			2,163			(570,791	)		—			588,105			109,215			478,181
Reconciliation of EBITDA:
Profit (loss) for the period		(249,903	)		344,475			126,215			17,926			(30,824	)		(116,855	)		(94,572	)		(43,883	)		(47,421	)		(29,148	)		(30,824	)
Income tax and social contribution		(171,283	)		143,768			70,815			10,775			30,808			(76,418	)		27,515			—			35,980			12,220			30,808
Financial result, net		98,083			71,169			41,192			4,377			432,864			206,048			(169,252	)		—			684,481			256,940			432,864
Depreciation and amortization		505,515			162,420			128,070			19,901			298,739			4,095			(667,935	)		—			450,805			152,066			298,739

EBITDA		182,412			721,832			366,292			52,979			731,587			16,870			(904,244	)		(43,883	)		1,123,845			392,078			731,587

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	January 1, 2017 to June 30, 2017
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of income or loss:
Net sales		6,019,148			34,962,194			2,505,932			958,162			2,705,317			362			(40,981,342	)		(15,535	)		6,154,238			3,464,422			2,705,317
Domestic market		3,343,013			34,962,194			2,505,932			757,911			2,577,951			362			(38,305,207	)		(15,535	)		5,826,621			3,264,171			2,577,951
External market		2,676,135			—			—			200,251			127,366			—			(2,676,135	)		—			327,617			200,251			127,366
Cost of sales		(5,328,028	)		(33,246,205	)		(1,586,931	)		(668,415	)		(1,920,186	)		(1,615	)		38,574,233			15,534			(4,161,613	)		(2,256,929	)		(1,920,186	)
Gross profit		691,120			1,715,989			919,001			289,747			785,131			(1,254	)		(2,407,109	)		—			1,992,625			1,207,493			785,131
Selling expenses		(330,717	)		(642,079	)		(332,030	)		(187,291	)		(19,640	)		(57	)		972,796			—			(539,018	)		(519,378	)		(19,640	)
General and administrative expenses		(287,252	)		(218,664	)		(158,194	)		(41,394	)		(129,185	)		(81,510	)		505,916			—			(410,283	)		(274,127	)		(129,185	)
Other income (expense), net		(93,027	)		179,275			(9,889	)		(168	)		(4,405	)		(49,298	)		(86,248	)		—			(63,760	)		(59,354	)		(4,405	)
Financial results		36,980			(243,286	)		(82,616	)		(24,175	)		(884,077	)		(312,006	)		206,306			—			(1,302,874	)		(391,977	)		(884,077	)
Financial expense		(451,555	)		(119,869	)		(356,319	)		(18,386	)		(948,040	)		(442,625	)		571,424			—			(1,765,370	)		(807,496	)		(948,040	)
Financial income		380,211			70,589			273,956			12,663			122,641			108,511			(450,800	)		—			517,771			423,895			122,641
Foreign exchange losses, net		(39,177	)		(49,907	)		(13,664	)		(3,625	)		(128,464	)		(47,980	)		89,084			—			(193,733	)		(77,048	)		(128,464	)
Derivatives		147,501			(144,099	)		13,411			(14,827	)		69,786			70,088			(3,402	)		—			138,458			68,672			69,786
Interest in earnings of associates		(47,771	)		—			—			(4,147	)		3,158			181,244			47,771			(178,929	)		1,326			(1,834	)		3,158
Interest in earnings of joint ventures		—			—			—			—			—			296,094			—			—			296,094			296,094			—
Income tax expense benefit		93,711			(233,167	)		(126,529	)		(13,513	)		(30,633	)		90,866			139,456			—			(79,809	)		(49,562	)		(30,633	)

Profit (loss) from continuing operations		63,044			558,068			209,743			19,059			(279,651	)		124,079			(621,112	)		(178,929	)		(105,699	)		207,355			(279,651	)
Total net income attributable to:
Owners of the Company		63,044			529,784			132,359			19,059			(58,290	)		117,445			(592,828	)		(234,239	)		(23,666	)		129,273			(80,473	)
Non-controlling interests		—			28,284			77,384			—			(221,361	)		6,634			(28,284	)		55,310			(82,033	)		78,082			(199,178	)

		63,044			558,068			209,743			19,059			(279,651	)		124,079			(621,112	)		(178,929	)		(105,699	)		207,355			(279,651	)
Other selected data:
Depreciation and amortization		954,248			312,590			260,818			39,553			588,704			8,285			(1,266,838	)		—			897,360			308,657			588,704
EBITDA		886,601			1,347,111			679,706			96,300			1,223,763			353,504			(2,233,712	)		(178,929	)		2,174,344			957,551			1,223,763
Additions to PP&E, intangible and biological assets		1,300,558			418,803			171,447			6,770			950,064			2,471			(1,719,361	)		—			1,130,752			179,979			950,064
Reconciliation of EBITDA:
Profit (loss) for the period		63,044			558,068			209,743			19,059			(279,651	)		124,079			(621,112	)		(178,929	)		(105,699	)		207,355			(279,651	)
Income tax and social contribution		(93,711	)		233,167			126,529			13,513			30,633			(90,866	)		(139,456	)		—			79,809			49,562			30,633
Financial result, net		(36,980	)		243,286			82,616			24,175			884,077			312,006			(206,306	)		—			1,302,874			391,977			884,077
Depreciation and amortization		954,248			312,590			260,818			39,553			588,704			8,285			(1,266,838	)		—			897,360			308,657			588,704

EBITDA		886,601			1,347,111			679,706			96,300			1,223,763			353,504			(2,233,712	)		(178,929	)		2,174,344			957,551			1,223,763

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	April 1, 2016 to June 30, 2016 (Restated)
	Reported segments																	Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar		Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of income or loss:
Net sales		2,642,897			16,479,574			1,493,958			—		488,992			1,376,248			341			(19,122,471	)		(19,151	)		3,340,388			1,983,291			1,376,248
Domestic market		1,001,494			16,479,574			1,493,958			—		374,949			1,312,995			341			(17,481,068	)		(19,151	)		3,163,092			1,869,248			1,312,995
External market		1,641,403			—			—			—		114,043			63,253			—			(1,641,403	)		—			177,296			114,043			63,253
Cost of sales		(2,216,693	)		(15,665,191	)		(729,430	)		—		(369,337	)		(907,528	)		(8,544	)		17,881,884			19,151			(1,995,688	)		(1,107,311	)		(907,528	)
Gross profit		426,204			814,383			764,528			—		119,655			468,720			(8,203	)		(1,240,587	)		—			1,344,700			875,980			468,720
Selling expenses		(180,311	)		(299,521	)		(159,886	)		—		(95,368	)		(2,451	)		(101	)		479,832			—			(257,806	)		(255,354	)		(2,451	)
General and administrative expenses		(115,335	)		(119,596	)		(84,627	)		—		(16,947	)		(82,957	)		(85,567	)		234,931			—			(270,098	)		(142,570	)		(82,957	)
Other income (expense), net		(31,531	)		117,352			(640	)		—		152			(10,067	)		(18,409	)		(85,821	)		—			(28,964	)		(18,896	)		(10,068	)
Financial results		206,657			(146,745	)		(45,932	)		—		(25,351	)		(406,421	)		(286,562	)		(59,912	)		8,700			(755,566	)		(256,551	)		(406,421	)
Financial expense		(211,252	)		(12,042	)		(164,259	)		—		(13,883	)		(477,461	)		(198,501	)		223,294			8,700			(845,404	)		(345,877	)		(477,461	)
Financial income		165,611			54,659			118,072			—		845			74,125			131,974			(220,270	)		—			325,016			250,692			74,125
Foreign exchange losses, net		(45,045	)		423,806			118,707			—		27,928			35,538			351,978			(378,761	)		—			534,151			563,265			35,538
Derivatives		297,343			(613,168	)		(118,452	)		—		(40,241	)		(38,623	)		(572,013	)		315,825			—			(769,329	)		(724,631	)		(38,623	)
Interest in earnings of associates		(12,492	)		—			—			—		(2,157	)		2,565			342,526			12,492			(346,534	)		(3,600	)		(6,676	)		2,565
Interest in earnings of joint ventures		—			—			—			—		—			—			252,594			—			—			252,594			252,594			—
Income tax expense benefit		(79,297	)		(74,250	)		(163,127	)		—		4,078			(3,018	)		100,140			153,547			(2,958	)		(64,885	)		(58,909	)		(3,017	)

Profit (loss) from continuing operations		213,895			291,623			310,316			—		(15,938	)		(33,629	)		286,563			(505,518	)		(330,937	)		216,375			389,618			(33,629	)
Profit from discontinued operation, net of tax		—			—			—			25,595		—			—			9,855			—			(9,855	)		25,595			25,595			—
Total net income attributable to:
Owners of the Parent		213,895			279,440			310,316			9,867		(15,938	)		(11,006	)		296,418			(493,335	)		(564,341	)		25,316			279,910			(11,006	)
Non-controlling interests		—			12,183			—			15,728		—			(22,623	)		—			(12,183	)		223,549			216,654			135,303			(22,623	)

		213,895			291,623			310,316			25,595		(15,938	)		(33,629	)		296,418			(505,518	)		(340,792	)		241,970			415,213			(33,629	)
Other selected data:
Depreciation and amortization		541,002			148,653			122,037			—		21,959			215,647			4,528			(689,655	)		—			364,171			148,523			215,647
EBITDA		627,537			661,271			641,412			—		27,294			591,457			477,513			(1,288,808	)		(336,679	)		1,400,997			853,601			591,456
Additions to PP&E, intangible and biological assets		357,730			225,846			109,321			—		9,339			539,219			1,803			(583,576	)		—			659,682			120,462			539,219
Reconciliation of EBITDA:
Profit (loss) for the period		213,895			291,623			310,316			—		(15,938	)		(33,629	)		286,563			(505,518	)		(330,937	)		216,375			389,618			(33,629	)
Income tax and social contribution		79,297			74,250			163,127			—		(4,078	)		3,018			(100,140	)		(153,547	)		2,958			64,885			58,909			3,017
Financial result, net		(206,657	)		146,745			45,932			—		25,351			406,421			286,562			59,912			(8,700	)		755,566			256,551			406,421
Depreciation and amortization		541,002			148,653			122,037			—		21,959			215,647			4,528			(689,655	)		—			364,171			148,523			215,647

EBITDA		627,537			661,271			641,412			—		27,294			591,457			477,513			(1,288,808	)		(336,679	)		1,400,997			853,601			591,456

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	January 1, 2016 to June 30, 2016 (Restated)
	Reported segments																	Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Radar		Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of income or loss:
Net sales		6,509,176			32,871,326			2,954,034			—		968,117			2,562,139			374			(39,380,502	)		(25,208	)		6,459,456			3,922,526			2,562,139
Domestic market		2,680,599			32,871,326			2,954,034			—		740,882			2,458,491			374			(35,551,925	)		(25,208	)		6,128,573			3,695,291			2,458,491
External market		3,828,577			—			—			—		227,235			103,648			—			(3,828,577	)		—			330,883			227,235			103,648
Cost of sales		(4,883,779	)		(31,265,779	)		(1,558,014	)		—		(741,281	)		(1,778,611	)		(9,094	)		36,149,558			25,208			(4,061,792	)		(2,308,389	)		(1,778,611	)
Gross profit		1,625,397			1,605,547			1,396,020			—		226,836			783,528			(8,720	)		(3,230,944	)		—			2,397,664			1,614,137			783,528
Selling expenses		(368,715	)		(656,617	)		(314,469	)		—		(179,342	)		(724	)		(100	)		1,025,332			—			(494,635	)		(493,912	)		(724	)
General and administrative expenses		(278,621	)		(220,805	)		(157,953	)		—		(35,740	)		(172,729	)		(131,640	)		499,426			—			(498,062	)		(276,650	)		(172,729	)
Other income (expense), net		36,948			198,070			(2,656	)		—		1,854			(7,794	)		(57,722	)		(235,018	)		—			(66,318	)		(58,522	)		(7,794	)
Financial results		415,898			(279,706	)		(142,008	)		—		(44,266	)		(833,718	)		(660,109	)		(136,192	)		113,480			(1,566,621	)		(712,210	)		(833,718	)
Financial expense		(474,027	)		(55,397	)		(374,248	)		—		(22,680	)		(947,113	)		(493,710	)		529,424			113,480			(1,724,271	)		(842,395	)		(947,113	)
Financial income		327,899			114,210			231,626			—		1,809			135,651			202,481			(442,109	)		—			571,567			435,607			135,651
Foreign exchange losses, net		(60,219	)		782,103			242,561			—		45,348			82,058			689,587			(721,884	)		—			1,059,554			1,070,827			82,058
Derivatives		622,245			(1,120,622	)		(241,947	)		—		(68,743	)		(104,314	)		(1,058,467	)		498,377			—			(1,473,471	)		(1,376,249	)		(104,314	)
Interest in earnings of associates		(48,775	)		2,520			—			—		(3,022	)		6,122			634,872			46,255			(643,130	)		(5,158	)		(11,792	)		6,122
Interest in earnings of joint ventures		—			—			—			—		—			—			693,938			—			—			693,938			693,938			—
Income tax expense benefit		(447,913	)		(184,223	)		(267,762	)		—		4,645			7,302			214,092			632,136			(38,583	)		(80,306	)		(49,025	)		7,302

Profit (loss) from continuing operations		934,219			464,786			511,172			—		(29,035	)		(218,013	)		666,406			(1,399,005	)		(550,028	)		380,502			705,964			(218,013	)
Profit from discontinued operation, net of tax		—			—			—			40,548		—			—			18,205			—			(18,205	)		40,548			40,548			—
Total net income attributable to:
Owners of the Company		934,219			442,538			511,172			18,216		(29,035	)		(59,050	)		684,611			(1,376,757	)		(970,336	)		155,578			526,942			(59,050	)
Non-controlling interests		—			22,248			—			22,332		—			(158,963	)		—			(22,248	)		402,103			265,472			219,570			(158,963	)

		934,219			464,786			511,172			40,548		(29,035	)		(218,013	)		684,611			(1,399,005	)		(568,233	)		421,050			746,512			(218,013	)
Other selected data:
Depreciation and amortization		1,184,444			312,272			241,085			—		42,588			425,432			7,489			(1,496,716	)		—			716,594			291,164			425,432
EBITDA		2,150,678			1,240,987			1,162,027			—		53,174			1,033,835			1,119,912			(3,391,665	)		(624,925	)		2,744,023			1,758,362			1,033,835
Additions to PP&E, intangible and biological assets		1,168,364			405,011			203,460			—		18,687			824,094			2,640			(1,573,375	)		—			1,048,881			224,788			824,094
Reconciliation of EBITDA:
Profit (loss) for the period		934,219			464,786			511,172			—		(29,035	)		(218,013	)		666,406			(1,399,005	)		(550,028	)		380,502			705,963			(218,013	)
Income tax and social contribution		447,913			184,223			267,762			—		(4,645	)		(7,302	)		(214,092	)		(632,136	)		38,583			80,306			49,025			(7,302	)
Financial result, net		(415,898	)		279,706			142,008			—		44,266			833,718			660,109			136,192			(113,480	)		1,566,621			712,210			833,718
Depreciation and amortization		1,184,444			312,272			241,085			—		42,588			425,432			7,489			(1,496,716	)		—			716,594			291,164			425,432

EBITDA		2,150,678			1,240,987			1,162,027			—		53,174			1,033,835			1,119,912			(3,391,665	)		(624,925	)		2,744,023			1,758,362			1,033,835

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	June 30, 2017
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan S.A			Cosan Logística
Statement of financial position:
Cash and cash equivalents		4,046,721			397,154			1,946,200			88,928			186,302			1,715,525			(4,443,875	)		—			3,936,955			3,415,115			186,302
Marketable securities		—			—			230,799			1,116			2,290,787			157,106			—			—			2,679,808			389,021			2,290,787
Trade receivables		459,712			1,931,396			638,707			256,850			295,418			17			(2,391,108	)		—			1,190,992			895,575			295,418
Derivative financial instruments		651,853			39,657			427,425			570			47,632			469,271			(691,510	)		—			944,898			897,267			47,632
Inventories		1,304,801			2,005,640			102,704			233,072			242,566			2,560			(3,310,441	)		—			580,902			338,336			242,566
Other financial assets		684,623			—			—			—			—			—			(684,623	)		—			—			198,604			—
Other current assets		2,488,783			1,394,120			93,942			83,469			409,490			329,742			(3,882,903	)		(95,041	)		821,602			463,133			409,490
Other non-current assets		3,123,945			1,001,425			296,142			79,302			2,701,359			1,559,575			(4,125,371	)		(8,234	)		4,628,143			1,926,783			2,701,359
Investments in associates		234,275			—			—			15,374			43,152			10,942,662			(234,275	)		(10,714,468	)		286,720			243,567			43,152
Investments in joint ventures		—			—			—			—			—			8,628,851			—			—			8,628,851			8,628,852			—
Biological assets		891,434			—			—			—			—			—			(891,434	)		—			—			—			—
Property, plant and equipment		11,011,926			2,345,294			—			231,099			10,747,754			145,914			(13,357,221	)		—			11,124,766			376,340			10,747,754
Intangible assets and goodwill		3,218,825			4,607,568			8,449,797			744,589			7,722,305			6,334			(7,826,393	)		—			16,923,025			9,200,679			7,722,305
Loans, borrowings and debentures		(11,327,951	)		(1,058,413	)		(3,974,978	)		(329,094	)		(10,763,315	)		(5,432,356	)		12,386,364			—			(20,499,743	)		(9,058,509	)		(10,763,315	)
Derivative financial instruments		(217,995	)		(228,038	)		—			(12,589	)		(14,478	)		(169,966	)		446,033			—			(197,033	)		(182,555	)		(14,478	)
Trade payables		(1,170,295	)		(1,161,605	)		(1,318,088	)		(261,147	)		(424,346	)		(4,327	)		2,331,900			—			(2,007,908	)		(1,583,548	)		(424,346	)
Real estate credit certificates		—			—			—			—			(143,696	)		—			—			—			(143,696	)		—			(143,696	)
Employee benefits payable		(450,776	)		(118,947	)		(42,108	)		(23,927	)		(126,578	)		(15,986	)		569,723			—			(208,599	)		(81,873	)		(126,578	)
Preferred shareholders payable in subsidiaries		—			—			—			—			—			(1,531,250	)		—			—			(1,531,250	)		(1,531,250	)		—
Lease		—			—			—			—			(1,123,421	)		—			—			—			(1,123,421	)		—			(1,123,421	)
Other current liabilities		(1,220,416	)		(1,958,870	)		(135,289	)		(164,631	)		(786,447	)		(351,878	)		3,179,286			103,275			(1,334,970	)		(550,639	)		(786,447	)
Other non-current liabilities		(1,304,865	)		(4,076,271	)		(1,642,150	)		(226,644	)		(5,899,982	)		(1,270,988	)		5,381,136			—			(9,039,764	)		(3,156,389	)		(5,899,982	)

Total assets (net of liabilities) allocated by segment		12,424,600			5,120,110			5,073,103			716,337			5,404,502			15,180,806			(17,544,712	)		(10,714,468	)		15,660,278			10,828,509			5,404,502

Total assets		28,116,898			13,722,254			12,185,716			1,734,369			24,686,765			23,957,557			(41,839,154	)		(10,817,743	)		51,746,662			26,973,272			24,686,765

Equity attributable to owners of the Company		12,425,563			4,898,819			5,073,103			716,337			1,467,689			15,180,208			(17,324,384	)		(16,182,126	)		6,255,209			9,019,747			1,467,689
Non-controlling interests		(963	)		221,291			—			—			3,936,813			598			(220,328	)		5,467,658			9,405,069			1,808,762			3,936,813

Total shareholders’ equity		12,424,600			5,120,110			5,073,103			716,337			5,404,502			15,180,806			(17,544,712	)		(10,714,468	)		15,660,278			10,828,509			5,404,502

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	December 31, 2016
	Reported segments															Reconciliation												Additional information
Statement of financial position:	Raízen Energia			Raízen Combustíveis			COMGÁS			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan S.A			Cosan Logística
Cash and cash equivalents		2,787,588			757,140			2,108,253			203,855			260,542			1,926,938			(3,544,728	)		—			4,499,588			3,990,930			260,542
Marketable securities		—			—			202,568			10,958			920,413			157,641			—			—			1,291,580			371,167			920,413
Trade receivables		682,813			2,518,713			513,423			240,059			431,461			487			(3,201,526	)		—			1,185,430			753,969			431,461
Derivative financial instruments		1,243,260			178,060			437,137			—			3,669			310,274			(1,421,320	)		—			751,080			747,411			3,669
Inventories		2,293,492			2,108,825			114,745			228,941			284,579			2,487			(4,402,317	)		—			630,752			346,173			284,579
Other financial assets		711,453			—			—			—			—			70,487			(711,453	)		(70,487	)		—			70,487			—
Other current assets		3,030,674			1,456,418			80,758			141,972			422,458			658,550			(4,487,092	)		(107,927	)		1,195,811			793,861			422,458
Other non-current assets		2,852,423			1,089,809			307,306			26,036			2,549,631			1,436,632			(3,942,232	)		(33,225	)		4,286,380			1,761,857			2,549,631
Investments in associates		393,159			—			—			19,400			46,847			11,153,390			(393,159	)		(10,932,690	)		286,947			240,100			46,847
Investments in joint ventures		—			—			—			—			—			8,506,395			—			—			8,506,395			8,506,395			—
Biological assets		1,119,623			—			—			—			—			—			(1,119,623	)		—			—			—			—
Investment property		10,525,166			2,379,438			—			238,346			10,337,119			150,983			(12,904,604	)		—			10,726,448			389,329			10,337,119
Intangible assets and goodwill		3,224,303			4,532,282			8,550,984			770,118			7,781,289			7,048			(7,756,585	)		—			17,109,439			9,328,150			7,781,289
Loans, borrowings and debentures		(11,556,950	)		(1,043,995	)		(4,070,076	)		(471,661	)		(8,523,175	)		(5,273,585	)		12,600,945			—			(18,338,497	)		(9,138,129	)		(8,523,175	)
Derivative financial instruments		(789,193	)		(648,070	)		—			(35,155	)		(12,303	)		(248,386	)		1,437,263			—			(295,844	)		(283,541	)		(12,303	)
Trade payables		(1,147,089	)		(1,148,013	)		(1,226,634	)		(232,690	)		(565,539	)		(8,247	)		2,295,102			—			(2,033,110	)		(1,467,570	)		(565,539	)
Real estate credit certificates		—			—			—			—			(195,745	)		—			—			—			(195,745	)		—			(195,745	)
Employee benefits payable		(314,989	)		(92,573	)		(63,904	)		(30,187	)		(117,149	)		(26,919	)		407,562			—			(238,159	)		(121,009	)		(117,149	)
Preferred shareholders payable in subsidiaries		—			—			—			—			—			(1,769,427	)		—			—			(1,769,427	)		(1,769,427	)		—
Leases		—			—			—			—			(1,397,543	)		—			—			—			(1,397,543	)		—			(1,397,543	)
Other current liabilities		(1,507,193	)		(2,245,227	)		(211,900	)		(168,995	)		(663,083	)		(407,835	)		3,752,420			116,036			(1,335,777	)		(662,235	)		(663,083	)
Other non-current liabilities		(1,367,686	)		(4,714,035	)		(1,549,441	)		(132,414	)		(5,881,195	)		(1,408,841	)		6,081,721			115,892			(8,855,999	)		(3,065,579	)		(5,881,195	)

Total assets (net of liabilities) allocated by segment		12,180,854			5,128,772			5,193,219			808,583			5,682,276			15,238,072			(17,309,626	)		(10,912,401	)		16,009,749			10,792,339			5,682,276

Total assets		28,863,954			15,020,685			12,315,174			1,879,685			23,038,008			24,381,312			(43,884,639	)		(11,144,329	)		50,469,850			27,299,829			23,038,008

Equity attributable to owners of the Company		12,181,817			4,920,333			5,193,219			808,583			1,540,225			15,238,072			(17,102,150	)		(16,507,636	)		6,272,463			8,965,606			1,540,225
Non-controlling interests		(963	)		208,439			—			—			4,142,051			—			(207,476	)		5,595,235			9,737,286			1,826,733			4,142,051

Total shareholders’ equity		12,180,854			5,128,772			5,193,219			808,583			5,682,276			15,238,072			(17,309,626	)		(10,912,401	)		16,009,749			10,792,339			5,682,276

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Net sales by segment:


	April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
Reported segment
Raízen Energia
Ethanol		1,614,698			3,145,257			1,262,340			3,199,252
Sugar		1,221,516			2,513,242			1,115,321			2,961,609
Cogeneration		198,677			239,775			151,438			195,319
Other		71,023			120,874			113,798			152,996

		3,105,914			6,019,148			2,642,897			6,509,176
Raízen Combustíveis
Fuels		17,264,040			34,962,194			16,479,574			32,871,326

		17,264,040			34,962,194			16,479,574			32,871,326
COMGÁS
Industrial		840,938			1,601,201			996,765			2,002,830
Residential		228,418			379,903			197,848			353,254
Cogeneration		50,754			98,477			57,386			111,909
Automotive		54,733			105,989			50,827			97,977
Commercial		79,305			146,984			75,903			146,301
Construction revenue		86,787			143,114			88,095			154,287
Other		18,730			30,264			27,134			87,476

		1,359,665			2,505,932			1,493,958			2,954,034
Moove
Finished goods		425,491			806,714			425,273			851,185
Basic oil		78,650			136,171			59,891			108,833
Other		7,325			15,277			3,828			8,099

		511,466			958,162			488,992			968,117
Logistics
North operations		1,116,347			2,030,515			998,048			1,893,980
South operations		332,963			570,052			302,500			527,328
Container operations		56,833			104,750			75,700			140,831

		1,506,143			2,705,317			1,376,248			2,562,139
Reconciliation
Cosan Corporate
Other		183			362			341			374

		183			362			341			374
IFRS 11—Deconsolidated of adjustments/eliminations joint ventures and eliminations		(20,378,904	)		(40,996,877	)		(19,141,622	)		(39,405,710	)
Total		3,368,507			6,154,238			3,340,388			6,459,456

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

7	Cash and cash equivalents


	June 30, 2017		December 31, 2016
Cash and bank deposits		59,430		376,029
Savings account		659,273		409,333
Financial investments		3,218,252		3,714,226

		3,936,955		4,499,588

Financial investments are composed as follows:


	June 30, 2017		December 31, 2016
Investment fund
Repurchase agreements		2,326,493		2,840,760
Bank certificate of deposits—CDB		362,505		363,147

		2,688,998		3,203,907
Bank investments
Repurchase agreements		36,931		26,719
Bank certificate of deposits—CDB		486,419		468,384
Other		5,904		15,216

		529,254		510,319

		3,218,252		3,714,226

8	Marketable securities


	June 30, 2017		December 31, 2016
Government security ⁽ⁱ⁾		2,679,414		1,004,388
Bank certificate of deposits—CDB ⁽ⁱⁱ⁾		394		287,192

		2,679,808		1,291,580

⁽ⁱ⁾	Sovereign debt securities classified as held-for-trading have stated interest connected to SELIC and mature in two to five years.

⁽ⁱⁱ⁾	Bank certificates of deposits classified as held-for-trading have stated interest rates connected to CDI and mature in two to five years.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

9	Trade receivables


	June 30, 2017			December 31, 2016
Domestic – Brazilian Reais		1,249,812			1,248,270
Export – Foreign currency		52,368			27,446
Allowance for doubtful accounts		(111,188	)		(90,286	)

		1,190,992			1,185,430
Current		1,143,329			1,130,624

Non-current		47,663			54,806

10	Other current tax receivables


	June 30, 2017		December 31, 2016
ICMS—State VAT		640,875		608,334
Credit installment		37,854		36,708
PIS/COFINS—Revenue tax		346,377		257,920
Other		23,614		15,743

		1,048,720		918,705
Current		281,964		178,856

Non-Current		766,756		739,849

11	Related parties

Receivables from and payables to related parties:


	June 30, 2017		December 31, 2016
Current Asset
Commercial operation
Raízen Energia S.A.		41,502		37,249
Aguassanta Participações S.A.		153		6,342
Radar Propriedades Agricolas S.A.		23		517
Raízen Combustíveis S.A.		16,666		4,206
Other		626		531

		58,970		48,845
Corporate operation / Agreements
Raízen Energia S.A.		—		9,672

		58,970		58,517

Non-current assets
Receivables under the framework agreement
Janus Brasil Participações S.A		30,423		28,705
Raízen Energia S.A.		85,407		114,473

		115,830		143,178
Financial and corporation operations
Rezende Barbosa		35,944		38,944
Other		833		1,618

		36,777		40,562

		152,607		183,740

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	June 30, 2017		December 31, 2016
Current liabilities
Corporate operations
Raízen Energia S.A.		159,295		160,030
Raízen Combustíveis S.A.		106,317		75,624
Other		3,111		1,427

		268,723		237,081

Related party transactions:


	April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
Sales of goods and services
Raízen Combustíveis S.A		32,959			68,776			34,314			62,211
Raízen Energia S.A.		98,320			176,060			100,063			215,320

		131,279			244,836			134,377			277,531
Purchase of goods / Inputs
Raízen Energia S.A.		(143	)		(291	)		(191	)		(335	)
Raízen Combustíveis S.A.		(238,573	)		(442,290	)		(225,956	)		(427,050	)

		(238,716	)		(442,581	)		(226,147	)		(427,385	)
Discontinued operation
Raízen Energia S.A.		—			—			15,314			31,485

		—			—			15,314			31,485
Shared expense
Raízen Energia S.A.		(20,963	)		(38,097	)		(18,640	)		(33,674	)

		(20,963	)		(38,097	)		(18,640	)		(33,674	)
Financial result
Usina Santa Luiza		(57	)		(261	)		131			(70	)
Raízen Energia S.A.		3,499			3,784			470			994
Other		—			—			(3	)		(3	)

		3,442			3,523			598			921

Officers’ and directors’ compensation


	April 1, 2017 to June 30, 2017		January 1, 2017 to June 30, 2017		April 1, 2016 to June 30, 2016		January 1, 2016 to June 30, 2016
Short-term benefits to employees and managers		16,989		42,547		69,277		90,387
Post-employment benefits		196		461		1,143		1,334
Other long-term benefits		141		271		20		79
Stock option expense		3,347		6,192		3,416		5,896

		20,673		49,471		73,856		97,696

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

12	Investments in associates

Information in associates of the Company and the Company´s ownership:


	Tellus Brasil Participações S.A.			Novvi Limited Liability Company			Janus Brasil Participações S.A.			Radar Propriedades Agricolas S.A			Radar II Propriedades Agricolas S.A			Other investments			Total
Shares issued by the associate		65,957,282			620,000			1,907,000			1,735,703			81,440,221			—
Shares held by Cosan		33,638,214			200,000			934,430			531,125			24,920,708			—
Cosan ownership interest		51	%		33.26	%		51	%		51	%		51	%		—
Economic benefits %		5	%		33.26	%		5	%		3	%		3	%

December 31, 2016		97,002			18,838			33,998			55,148			30,537			51,424			286,947
Interest in earnings (losses) of associates		2,799			(4,147	)		588			924			564			598			1,326
Other comprehensive income		—			326			3,182			119			23			—			3,650
Dividends		(1,307	)		—			(765	)		—			(493	)		(6,853	)		(9,418	)
Capital increase		—			—			1,718			—			—			—			1,718
Other		—			—			—			—			—			2,497			2,497

June 30, 2017		98,494			15,017			38,721			56,191			30,631			47,666			286,720

Interest in earnings (losses) of associates January 1, 2016 to June 30, 2016		(1,461	)		(3,022	)		3,976			—			—			(4,651	)		(5,158	)

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Information in the non-controlling interests in subsidiaries of the Company:


	Cosan S.A. Indústria e Comércio			Cosan Logística S.A.			Companhia de Gás de São Paulo—COMGÁS			Rumo S.A.			Logispot Armazéns Agrícolas S.A.			Other			Radar—Discontinued operation		Total
Shares issued by the associate		407,904,353			368,046,576			130,038,279			1,339,015,898			2,040,816			—			—
Shares held by non-controlling shareholders		152,967,891			101,257,374			47,977,400			934,838,098			1,000,000			—			—
Non-controlling interest		37.50	%		27.51	%		36.89	%		69.82	%		49.00	%		—			—

December 31, 2016		3,706,727			61,776			1,826,733			4,105,962			36,088			—			—		9,737,286
Interest in earnings (losses) of associates		54,611			(22,182	)		78,082			(198,603	)		(575	)		6,634			—		(82,033	)
Interest sales		—			—			—			(5,146	)		—			—			—		(5,146	)
Other comprehensive income (losses)		122,021			57			—			516			—			—			—		122,594
Dividends		(143,635	)		—			(127,094	)		(3,246	)		—			(18,045	)		—		(292,020	)
Capital increase		—			2,815			—			—			—			—			—		2,815
Other		(14,674	)		(1,056	)		31,041			(105,748	)		—			12,010			—		(78,427	)

June 30, 2017		3,725,050			41,410			1,808,762			3,793,735			35,513			599			—		9,405,069

Interest in (losses) earnings of associates January 1, 2016 to June 30, 2016 (Restated)		225,635			(20,770	)		197,239			(158,175	)		(788	)		—			22,331		265,472

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

13	Investments in joint ventures

Changes to investments in joint ventures were as follows:


	Raízen Combustíveis S.A.			Raízen Energia S.A.			Total
Shares issued by the joint venture		3,303,168,484			5,902,595,634
Shares held by Cosan		1,651,584,242			2,951,297,817
Cosan ownership interest		50.00	%		50.00	%

Interest in earnings of joint ventures June 30, 2016		220,905			473,033			693,938
December 31, 2016		3,190,822			5,315,573			8,506,395
Interest in earnings of joint ventures		264,447			31,647			296,094
Other comprehensive losses		(3,351	)		324,955			321,604
Interest on capital		(42,000	)		—			(42,000	)
Dividends		(219,000	)		(234,242	)		(453,242	)

June 30, 2017		3,190,918			5,437,933			8,628,851

The statement of financial position and statement of profit or loss of the joint ventures are disclosed in Note 6, Segments.

Pursuant to the terms of the Raízen Joint Venture—Framework Agreement, Cosan is responsible for certain legal proceedings that existed prior to the formation of Raízen, net of judicial deposits as of April 1, 2011, as well as tax installments under the REFIS (tax amnesty and refinancing program), recorded in “Other taxes payable”. Additionally, Cosan granted access to Raízen a credit line (stand-by facility) in the amount of US$ 350,000 thousand, which was unused at June 30, 2017.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

14	Property, plant and equipment


	Land, buildings and improvements			Machinery, equipment and facilities			Railcars and locomotives			Permanent railways			Construction in progress			Other			Total
Cost
At December 31, 2016		1,043,437			716,310			5,270,469			4,474,856			708,580			326,361			12,540,013
Additions		—			—			12,366			3,729			930,683			3,792			950,570
Disposals		(2,239	)		(1,926	)		—			—			—			(34,814	)		(38,979	)
Transfers		9,771			312,777			543,623			279,030			(964,719	)		(185,115	)		(4,633	)

At June 30, 2017		1,050,969			1,027,161			5,826,458			4,757,615			674,544			110,224			13,446,971

Depreciation
At December 31, 2016		(255,893	)		(287,745	)		(742,297	)		(542,228	)		—			14,598			(1,813,565	)
Additions		(19,148	)		(36,804	)		(242,805	)		(194,787	)		—			(35,001	)		(528,545	)
Disposals		234			471			—			—			—			21,784			22,489
Transfers		(702	)		(856	)		13,492			(12,635	)		—			(1,883	)		(2,584	)

At June 30, 2017		(275,509	)		(324,934	)		(971,610	)		(749,650	)		—			(502	)		(2,322,205	)

At December 31, 2016		787,544			428,565			4,528,172			3,932,628			708,580			340,959			10,726,448

At June 30, 2017		775,460			702,227			4,854,848			4,007,965			674,544			109,722			11,124,766

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

15	Intangible assets and goodwill


	Goodwill		Concession rights			Improvements to public concessions and operating licenses			Trademarks			Customer relationships			Other			Total
Cost:
At December 31, 2016		715,259		16,912,506			435,624			252,474			946,824			376,669			19,639,356
Additions		—		144,527			—			—			25,258			16,379			186,164
Disposals		—		(134,717	)		—			—			(3,579	)		(4,220	)		(142,516	)
Transfers		—		341,478			—			—			(11,655	)		27,262			357,085

At June 30, 2017		715,259		17,263,794			435,624			252,474			956,848			416,090			20,040,089

Amortization
At December 31, 2016		—		(1,319,980	)		(200,876	)		(182,616	)		(668,695	)		(157,750	)		(2,529,917	)
Additions		—		(217,950	)		(41,625	)		(11,414	)		(67,179	)		(30,956	)		(369,124	)
Disposals		—		113,958			—			—			2,720			4,218			120,896
Transfers		—		(337,991	)		—			—			720			(1,648	)		(338,919	)

At June 30, 2017		—		(1,761,963	)		(242,501	)		(194,030	)		(732,434	)		(186,136	)		(3,117,064	)

At December 31, 2016		715,259		15,592,526			234,748			69,858			278,129			218,919			17,109,439

At June 30, 2017		715,259		15,501,831			193,123			58,444			224,414			229,954			16,923,025

Capitalization of borrowing costs

Capitalized borrowing costs for the period ended June 30, 2017, amounted to R$ 5,155 (R$ 9,659 for the period ended June 30, 2016). The weighted average interest rate used to capitalize borrowing costs on the balance of concession right, was 10.42% p.a. for the period ended June 30, 2017 (12.98% p.a. for the period ended June 30, 2016).

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


Intangible assets (excluding goodwill)	Annual rate of amortization—%		June 30, 2017		December 31, 2016
Gas distribution concession—COMGÁS ⁽ⁱ⁾		Concession term		8,174,515		8,240,521
Concession rights—Rumo ⁽ⁱⁱ⁾		Concession term		7,327,316		7,352,005

				15,501,831		15,592,526
Operating license for port terminal ⁽ⁱⁱⁱ⁾		4.00		193,123		234,748
Trademarks
Mobil		10.00		34,240		45,654
Comma		—		24,204		24,204

				58,444		69,858
Relationship with customers:
COMGÁS		20.00		193,857		233,971
Lubricants		6.00		30,557		44,158

				224,414		278,129
Other
Software license		20.00		154,927		146,210
Other				75,027		72,709
				229,954		218,919

Total				16,207,766		16,394,180

⁽ⁱ⁾	Refers to the intangible asset for the public gas distribution service concession, which represents the right to charge users for the supply of gas, comprised of: (i) the concession rights recognized in the business combination and (ii) concession assets;

⁽ⁱⁱ⁾	Refers to the concession right agreement of Rumo Malha Norte, which will be amortized until the end of the concession in 2079;

⁽ⁱⁱⁱ⁾

Port operating license and customer relationships of Rumo, from the business combinations.

Impairment testing of cash-generating units (“CGU”) goodwill

The Company tests the recoverable amounts of goodwill arising from business combination transactions annually. Property, plant and equipment and definite life intangible assets that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

During the period ended June 30, 2017, no impairment indicators were identified that would trigger the need for an impairment test.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

16	Loans, borrowings and debentures


	Interest
Description ⁽ⁱⁱ⁾	Index		Annual interest ⁽ⁱ⁾		June 30, 2017		December 31, 2016		Maturity
Description ⁽ⁱⁱ⁾	Index		Annual interest ⁽ⁱ⁾		June 30, 2017		December 31, 2016		Maturity
Loan and borrowings
BNDES		URTJLP		8.79%		2,377,179		2,663,073		Jun-29
		Fixed		5.21%		1,336,172		1,233,476		Feb-25
		TJ462		9.89%		568,635		651,371		Oct-20
		Selic		12.16%		296,889		313,395		Jun-23
		TJLP		9.03%		85,138		137,130		Jun-23
		Selic		13.65%		4,649		5,277		Sep-20
		Fixed		3.96%		3,060		3,930		Jan-24
		IPCA		11.43%		3,646		3,453		Nov-21
		URTJLP		11.40%		—		17		Jan-17
EIB		US$ + Libor		2.57%		557,909		612,961		Sep-21
Foreign loans		GBP + Libor		3.62%		193,694		218,232		Dec-19
NCE		112% of CDI		11.42%		89,947		120,069		Dec-18
		129.62% CDI		13.34%		551,310		552,576		Jun-23
		129.62% CDI		13.99%		294,923		294,516		Dec-18
		129.62% CDI		13.96%		81,462		80,486		Nov-17
Perpetual Notes		US$		8.25%		1,674,949		1,650,089		—
Resolution 4131		US$		3.17%		135,323		133,957		Oct-20
		US$		2.40%		418,755		407,306		Mar-18
		US$ + Libor		4.79%		—		32,798		Apr-17
Senior Notes Due 2018		Fixed		9.50%		168,088		168,163		Mar-18
Senior Notes Due 2023		US$		5.00%		332,497		322,062		Mar-23
Senior Notes Due 2027		US$		7.00%		2,403,066		2,304,384		Jan-27
Senior Notes Due 2024		US$		7.38%		2,489,428		—		Feb-24
FINEP		Fixed		5.00%		95,271		109,233		Nov-20
Trade banks		CDI + 4.91% p.a.		15.55%		130,974		163,815		Jun-19
		Fixed US$		6.33%		91,365		86,140		Dec-21
Working capital		CDI + 2.80% p.a.		13.22%		394,459		390,024		Dec-18
		CDI + 2.95% p.a.		13.39%		283,460		287,168		Dec-18
		CDI + 0.28% p.m.		14.30%		13,390		9,988		Jan-18
		CDI + 0.33% p.m.		14.58%		10,015		—		Mar-18
		120% do CDI		12.29%		20,236		—		May-18
		118% do CDI		—		26,786		22,605		Sep-17
Prepayment		US$+Libor Tri		3.66%		10,142		55,641		Apr-18
FINIMP		US$+Libor Tri		3.52%		—		40,798		Jun-17

						15,142,817		13,074,133

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Interest

Description

Index ⁽ⁱ⁾

Annual
interest ⁽ⁱⁱ⁾

June 30,
2017

December 31,
2016

Maturity

Debentures

Non-convertible debentures

CDI + 2,05% p.a.

12.40%

153,593

154,235

Apr-18

CDI + 1,30% p.a.

11.57%

298,168

300,183

Oct-17

CDI + 3,50% p.a.

13.99%

2,345,895

2,347,271

Jun-23

IPCA

8.88%

557,021

528,340

Dec-25

108 % of CDI

10.99%

347,813

350,852

Jul-18

IPCA

10.24%

1,358,617

1,291,413

Sep-20

Fixed

13.13%

163,806

163,862

Oct-20

CDI

11.13%

132,013

128,208

Sep-19

5,356,926

5,264,364

Total

20,499,743

18,338,497

Current

3,138,701

2,404,009

Non-current

17,361,042

15,934,488

⁽ⁱ ⁾	At June 30, 2017

⁽ⁱⁱ⁾	The Company’s debts with national and international development agencies have bank guarantees. Guarantees are contracted with first-tier banks guaranteeing the total amount of debt.

The Company used for calculating the average rates, on an annual basis, the annual average CDI of 8.75% and TJLP of 6%.

Senior Notes 2024

On February 9, 2017, the indirect subsidiary, “Rumo S.A”, issued a foreign debt, Senior Notes Due 2024 (“2024 Notes”) in the total amount of US $ 750,000 thousands maturing on February 2024 with coupon of 7.38% p.a, paid semiannually. This debt is protected by exchange and interest rate swaps.

The carrying amounts of loans, borrowings and debentures are denominated in the following currencies:


	June 30, 2017		December 31, 2016
Reais (R$)		12,192,615		12,474,129
Dollar (USD) ⁽ⁱ⁾		8,113,434		5,646,136
Pound (GBP)		193,694		218,232

		20,499,743		18,338,497

⁽ⁱ⁾	At June 30, 2017, all dated debts denominated in US Dollars have currency risk protection through derivatives (Note 27).

Below are the movements that occurred for the six-month period ended June 30, 2017.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


At December 31, 2016	18,338,497

Raised	2,549,576
Payment	(1,677,576	)
Interest, exchange rate and fair value	1,289,246

At June 30, 2017	20,499,743

Available credit line

As of June 30, 2017, the Company and its subsidiaries had available credit lines from BNDES, which were not used, in the total amount of R$ 372,230 (R$ 541,639 on December 31, 2016).

Financial Covenants

The Company and its subsidiaries are subject to certain restrictive clauses in most of the loan and financing agreements, based on certain financial and non-financial indicators.

At June 30, 2017, the Company and its subsidiaries were in compliance with all debt financial covenants.

17	Leases

Finance lease liabilities

Finance lease liabilities are payable as follows:


	June 30, 2017												December 31, 2016
	Less than one year			Between one and five years			More than five years			Total			Total
Future minimum lease payments		445,857			745,003			294,390			1,485,250			1,837,441
Rolling stock		417,509			659,462			202,893			1,279,864			1,616,719
Terminal		23,400			81,308			91,497			196,205			207,950
Other		4,948			4,233			—			9,181			12,772
Interests		(103,173	)		(198,383	)		(60,273	)		(361,829	)		(439,898	)
Rolling stock		(88,119	)		(159,459	)		(41,078	)		(288,656	)		(358,158	)
Terminal		(14,343	)		(38,411	)		(19,195	)		(71,949	)		(79,611	)
Other		(711	)		(513	)		—			(1,224	)		(2,129	)

Present value of minimum lease payments		342,684			546,620			234,117			1,123,421			1,397,543

Current											342,684			472,632

Non-current											780,737			924,911

Leases have various expiration dates, the last maturing in June 2043. The amounts are updated annually by Brazilian market price index ( Índice Geral de Preços do Mercado -IGPM) plus TJLP (Long-Term Interest Rate) or CDI.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Operating leases

At June 30, 2017, the future minimum lease payments under non-cancellable leases are as follows:

June 30, 2017

December 31,
2016

Total future minimum payments

Less
than
one
year

Between
one and
five
years

More
than
five
years

Total

Assets

11,202

29,478

8,135

48,815

53,171

The rentals are recognized as expenses (Note 25) on a straight-line basis over the life of the respective agreement.

18	Concessions payable

Concessions payable

Judicial deposits

June 30,
2017

December 31,
2016

June 30,
2017

December 31,
2016

Payables

Rumo Malha Sul

68,246

73,707

—

Rumo Malha Paulista

49,551

52,979

—

117,797

126,686

—

Court Discussion

Rumo Malha Paulista

1,448,672

1,345,722

119,694

118,820

Rumo Malha Oeste

1,215,972

1,135,398

20,137

19,464

2,664,644

2,481,120

139,831

138,284

Total

2,782,441

2,607,806

139,831

138,284

Current

26,987

27,662

Non-current

2,755,454

2,580,144

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

19	Trade payables


	June 30, 2017			December 31, 2016
Natural gas suppliers		1,496,844			1,377,528
Materials and service suppliers		705,449			789,675
Fuels suppliers		862			706
Judicial deposits ⁽ⁱ⁾		(294,976	)		(294,976	)
Other		99,729			160,177

		2,007,908			2,033,110

Current		2,007,650			2.032.542

Non-current		258			568

⁽ⁱ⁾

There is a judicial discussion between the subsidiary COMGÁS and its gas supplier. The gas supplier is charging different prices comparing to the gas supply market. At June 30, 2017, the balance of judicial discussion is R$ 1,068,488 (R$ 1,045,311 on December 31, 2016). The amount is secured by judicial deposit R$ 294,976 (R$ 294,976 on December 31, 2016) and the guaranteed value through surety is of R$ 773,512 (R$ 750,335 on December 31, 2016).

20	Other taxes payable


	June 30, 2017		December 31, 2016
Tax amnesty and refinancing program—Refis		215,163		215,565
ICMS – State VAT		122,904		84,700
COFINS—Revenue tax		66,221		54,208
PIS—Revenue tax		14,020		11,337
INSS—Social security		6,099		7,033
Other		19,030		42,102

		443,437		414,945

Current		287,604		261,169

Non-Current		155,833		153,776

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

21	Income tax and social contribution

a)	Reconciliation of income and social contribution tax expenses:


	April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
(Loss) profit before taxes		(11,441	)		(25,890	)		281,260			460,808
Income tax and social contribution at nominal rate (34%)		3,890			8,803			(95,628	)		(156,675	)
Adjustments to reconcile nominal to effective tax rate
Interest in earnings of investees (non-taxable income)		13,181			101,123			84,658			234,185
Credit claims for damages		—			—			907			2,305
Differences in tax rates on earnings / losses of overseas companies		(7,739	)		(44,908	)		(58,886	)		(102,969	)
Differences in tax rates on entities under Brazilian presumed profits tax regime		(114	)		(211	)		(37	)		(124	)
Operating profit from activity		10,930			14,965			6,562			17,252
Stock options expenses		(967	)		(1,934	)		(1,002	)		(2,005	)
Interest on capital (net received)		(8,500	)		(14,280	)		(7,650	)		(13,260	)
Non-deductible expenses (donations, gifts, etc.)		(2,308	)		(8,400	)		(3,619	)		(5,647	)
Tax losses not recorded ⁽ⁱ⁾		(39,081	)		(127,763	)		(6,377	)		(70,150	)
Costs of issuing equity instruments		—			—			21,307			21,307
Other		(5,271	)		(7,204	)		(5,120	)		(4,525	)

Income tax and social contribution benefit (expense)—current and deferred		(35,980	)		(79,809	)		(64,885	)		(80,306	)

Effective rate—%		N/A			N/A			23.07			17.43

⁽ⁱ⁾	Refers mainly to tax losses not recorded in subsidiaries of Rumo which under current conditions do not attend the requirements of future taxable profits that justify the recognition of the deferred tax assets. In accordance with Brazilian Federal Taxes rules those losses do not expire.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

b)	Deferred income tax assets and liabilities:


	June 30, 2017												December 31, 2016
	Basis			Income taxes (25%)			Social contribution (9%)			Total income taxes (34%)			Total income taxes (34%)
Tax loss carry forwards
Income tax loss carry forwards		8,684,753			2,171,188			—			2,171,188			1,900,366
Social contribution tax loss carry forwards		8,818,635			—			793,677			793,677			704,480
Temporary differences
Foreign currency losses		1,824,166			456,041			164,175			620,216			590,582
Provision for judicial demands		1,158,656			289,664			104,279			393,943			401,413
Impairment		771,302			192,825			69,417			262,243			290,470
Business combination—Property, plant and equipment		442,285			110,571			39,806			150,377			151,060
Tax deductible goodwill		(615,980	)		(153,995	)		(55,438	)		(209,433	)		(107,520	)
Gains or losses on actuarial liabilities		418,122			104,530			37,631			142,161			138,655
Allowance for doubtful accounts		499,304			124,826			44,937			169,763			156,717
Regulatory asset		200,525			50,131			18,047			68,179			71,039
Profit sharing		39,595			9,899			3,564			13,462			28,923
Concession contract		(28,379	)		(7,095	)		(2,554	)		(9,649	)		(10,616	)
Business combination—Other fair value adjustments		(125,087	)		(31,272	)		(11,258	)		(42,529	)		(42,360	)
Property, plant and equipment		(152,285	)		(38,071	)		(13,706	)		(51,777	)		(55,861	)
Unrealized gains on derivatives instruments		(243,531	)		(60,883	)		(21,918	)		(82,801	)		(992	)
Gain on formation of joint ventures		(3,338,342	)		(834,586	)		(300,451	)		(1,135,036	)		(1,135,037	)
Business combination—Intangible assets		(10,949,585	)		(2,737,396	)		(985,463	)		(3,722,859	)		(3,743,218	)
(-) Non-recordable net operating loss and contingencies		(5,591,399	)		(1,397,850	)		(503,226	)		(1,901,076	)		(1,753,070	)
Other		984,083			246,021			88,567			334,588			354,406

Total net liability					(1,505,452	)		(529,914	)		(2,035,363	)		(2,060,563	)
Deferred income tax—Assets											1,662,340			1,490,002
Deferred income tax—Liabilities											(3,697,703	)		(3,550,565	)

Total net deferred taxes											(2,035,363	)		(2,060,563	)

c)	Changes in deferred income taxes, net:


At December 31, 2016	(2,060,563	)

Recorded through income	(38,470	)
Tax loss carryforwards used to settle other tax installments	3,554
Tax loss carryforwards over change of shareholding interest in subsidiary	60,470
Other ⁽ⁱ⁾	(354	)

At June 30, 2017	(2,035,363	)

⁽ⁱ⁾	Exchange variation effect due to conversion of invested balance abroad.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

22	Provision for legal proceedings


	Provision for legal proceedings				Judicial deposits
	June 30, 2017		December 31, 2016		June 30, 2017		December 31, 2016
Tax		500,606		479,532		378,071		376,454
Civil, regulatory and environmental		316,489		344,048		178,153		173,884
Labor		440,392		444,984		184,344		164,346

		1,257,487		1,268,564		740,568		714,684

Changes in provision for legal proceedings:


	Tax			Civil, regulatory and environmental			Labor			Total
December 31, 2016		479,532			344,048			444,984			1,268,564
Accruals		8,362			9,004			61,129			78,495
Disposal / Reversals		(9,017	)		(30,985	)		(73,901	)		(113,903	)
Indexation and interest charges ⁽ⁱ⁾		21,729			(5,578	)		8,180			24,331

June 30, 2017		500,606			316,489			440,392			1,257,487

The Company’s debts with legal proceedings are secured by assets, cash deposit, bank guarantee or insurance guarantee.

⁽ⁱ⁾	It is included interest reversal.

Tax claims

a)	Judicial claims deemed to be probable losses, fully accrued


	June 30, 2017		December 31, 2016
Compensation with FINSOCIAL		275,572		269,275
State VAT—ICMS credits		93,583		84,778
INSS—Social security		65,476		63,103
PIS and COFINS		11,408		2,449
IPI—Excise tax credit—NT		1,190		1,155
Federal income taxes		329		329
Other		53,048		58,443

		500,606		479,532

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Judicial claims deemed as possible losses, and therefore not accrued


	June 30, 2017		December 31, 2016
ICMS—State VAT ⁽ⁱ⁾		2,538,390		2,136,241
Federal income taxes		2,392,247		2,188,011
Foreign financial operation		1,018,980		986,179
PIS and COFINS—Revenue taxes		848,550		850,063
IRRF—Withholding tax		892,207		861,531
INSS—Social security and other		583,008		615,403
IPI—Excise tax credit—NT		516,371		512,209
Goodwill Rumo		500,155		483,723
Penalties related to tax positions		416,150		397,441
Compensation with IPI—IN 67/98		130,663		128,456
MP 470—Tax installments		299,866		120,132
Intermodal		83,824		81,247
Stock option		64,276		62,216
Financial transactions tax on loan		50,480		54,896
Social security contributions		45,049		43,764
Compensation credit award		40,151		38,505
Other		1,025,184		992,682

		11,445,551		10,552,699

⁽ⁱ⁾	ICMS Rumo Malha Paulista: Tax assessment notice issued by the São Paulo State Treasury Department, in the amount of R$ 155,860, against Rumo Malha Paulista S.A, covering the period from February 2011 to July 2015, with the indication of the follow infractions:

Alleged lack of payment of ICMS on railroad services for export;

Improper ICMS credit due to error in the book entry of values higher than those found in the Fiscal Books;

Undue crediting of ICMS for acquisitions supposedly considered as “use and consumption”.

The

Tax authorities also included fines of 50% of the value of the tax and 100% of the amount of the credit considered undue.

Civil, labor, regulatory and environmental

Judicial claims deemed to be probable losses, fully accrued

•

Civil – refers mainly to compensation for material and moral damages, class actions for abstaining from straw burning sugarcane and execution of environmental nature.

•

Labor – represent labor claims filed by former employees and employees of service providers who question, among others, payment of overtime, night and dangerous, job reinstatement, compensation for accidents at work and reimbursement of discounts from payroll, such as confederative and assistance contributions, union dues and other.

•

Regulatory – mainly refers to fines and discussions with National Authority for Terrestrial Transport (ANTT).

•

Environmental – these amounts derive from assessments made by the Environmental Sanitation Technology Company (CETESB-SP), Brazilian Institute of Environment and Natural Resources (IBAMA) and Environment Municipal Departments related to soil contamination and water by the overflow of products and non-compliance with conditions imposed by such operating license. In all cases, measures are being taken to reduce the existing liabilities, as well as repair and prevention measures.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Judicial claims deemed as possible losses, and therefore not accrued

The main civil and labor lawsuits, for which the unfavorable outcome is considered possible, are as follows:


	June 30, 2017		December 31, 2016
Civil		2,765,273		2,831,407
Labor		295,758		1,089,119
Regulatory		525,326		397,414
Environmental		377,290		351,915

		3,963,647		4,669,855

23	Shareholders’ equity

Share capital

At June 30, 2017, Cosan Limited’s share capital is composed of the following:


Shareholders—Common shares	Class A and / or BDRs		%		Class B1 shares		%
Shareholders—Common shares	Class A and / or BDRs		%		Class B1 shares		%
Group		14,514,418		8.32		96,332,044		100.00
Skagen AS		16,220,419		9.30		—		—
M&G Investment Management Limited		6,056,705		3.47		—		—
Eastspring Investments (Singapore) Limited		2,715,398		1.56		—		—
Free Float		128,851,899		73.90		—		—

Total shares outstanding		168,358,839		96.56		96,332,044		100.00

Treasury shares		5,996,502		3.44		—		—
Total		174,355,341		100.00		96,332,044		100.00

Treasury shares

The Company holds 5,996,502 Class A treasury shares as of June 30, 2017 and December 31, 2016 with a market value of U.S.6.41 per share at June 30, 2017 (U.S.7.51 per share at December 31, 2016).

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Other comprehensive (loss) income


	December 31, 2016			Comprehensive (loss) income			June 30, 2017
Foreign currency translation effects		(322,258	)		(15,865	)		(338,123	)
(Loss) gain on cash flow hedge in joint ventures and subsidiaries		(190,001	)		322,203			132,202
Actuarial loss on defined benefit plan		(29,017	)		—			(29,017	)
Financial instrument with subsidiary		6,000			9,000			15,000
Changes in fair value of available for sale securities		(2,618	)		3,323			705

Total		(537,894	)		318,661			(219,233	)

Attributable to:
Owners of the Company		(480,454	)		196,067			(284,387	)
Non-controlling interests		(57,440	)		122,594			65,154

	December 31, 2015			Comprehensive (loss) income			June 30, 2016
	December 31, 2015			Comprehensive (loss) income			June 30, 2016
Foreign currency translation effects		(468,350	)		145,955			(322,395	)
(Loss) on cash flow hedge in joint ventures and subsidiaries		(235,779	)		(139,300	)		(375,079	)
Revaluation of investment properties reclassified from property, plant and equipment		190,735			—			190,735
Actuarial loss on defined benefit plan		28,032			—			28,032
Financial instrument with subsidiary		—			6,000			6,000
Changes in fair value of available for sale securities		6,748			(865	)		5,883

Total		(478,614	)		11,790			(466,824	)

Attributable to:
Owners of the Company		(478,207	)		35,503			(442,704	)
Non-controlling interests		(407	)		(23,713	)		(24,120	)

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

24	Earnings per share

The following table sets forth the calculation of earnings per share (in thousands of Brazilian Reais, except per share amounts):


	April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
(Loss) profit attributable from continued operation to ordinary equity holders for basic earnings		(44,781	)		(23,666	)		19,156			144,199
(Loss) Profit attributable from discontinued operation to ordinary equity holders for basic earnings		—			—			6,160			11,379
Effect of dilution:
Dilutive effect of subsidiary’s stock option plan		—			(484	)		(838	)		(1,296	)
Dilutive effect of subsidiary’s stock option plan—Discontinued operation		—			—			(30	)		(40	)
Dilutive effect of put option		(15,601	)		(15,601	)		(15,601	)		(15,601	)
Share repurchase plan		(355	)		—			—			—

(Loss) profit from continued operation attributable to ordinary equity holders adjusted for the effect of dilution		(60,737	)		(39,751	)		2,717			127,302

Profit from discontinued operation attributable to ordinary equity holders adjusted for the effect of dilution		—			—			6,130			11,339

Weighted average number of shares outstanding		264,690,883			264,690,883			264,690,883			264,690,883
Basic (loss) earnings per share from:
Continuing operations		(R$0.1692	)		(R$0.0894	)		R$0.0724			R$0.5448
Discontinuing operations		—			—			R$0.0233			R$0.0430

		(R$0.1692	)		(R$0.0894	)		R$0.0956			R$0.5878
Diluted (loss) earnings per share from:
Continuing operations		(R$0.2295	)		(R$0.1502	)		R$0.0103			R$0.4809
Discontinuing operations		—			—			R$0.0232			R$0.0428

		(R$0.2295	)		(R$0.1502	)		R$0.0334			R$0.5238

The non-controlling interests of the indirect subsidiary Brado have the right to exercise a liquidity option provided for in the shareholders’ agreement signed on August 5, 2013. This option would exchange all Brado shares held by such minority shareholders by shares of ALL. The exchange ratio shall take into account the economic value for both Brado and ALL shares. At the Company’s exclusive discretion, an equivalent cash payment is also possible.

For the six month period ended on At June 30, 2017, 6,212,000 share options were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

For the three month period ended on At June 30, 2017, 5,316,230 share options from subsidiary Cosan Logística were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive.

25	Other (expense) income, net


	April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
Revenue from sale of scrap / eventual		13,881			20,169			—			—
Insurance reimbursement income		—			1,181			418			7,568
Revenues from port operations		1,735			1,735			—			—
Rental income		(833	)		661			831			1,216
Loss on disposal of non-current assets		(14,187	)		(14,013	)		(2,731	)		(9,225	)
Net effect of legal proceedings, recoverable and tax installments		(43,840	)		(60,906	)		(38,322	)		(76,191	)
Other		(4,476	)		(12,587	)		10,840			10,314

		(47,720	)		(63,760	)		(28,964	)		(66,318	)

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

26	Financial results


	April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017			April 1, 2016 to June 30, 2016 (Restated)			January 1, 2016 to June 30, 2016 (Restated)
Cost of gross debt
Interest on debt		(450,955	)		(937,071	)		(463,055	)		(903,480	)
Monetary and exchange rate variation		(431,052	)		(349,183	)		490,033			999,744
Derivatives		180,603			44,941			(672,126	)		(1,365,035	)
Amortization of borrowing costs		(314	)		(557	)		(62,509	)		(62,509	)
Discounts obtained from financial operations		—			—			85,274			85,274
Guarantees and warranties on debt		(7,685	)		(16,360	)		(9,503	)		(22,976	)

		(709,403	)		(1,258,230	)		(631,886	)		(1,268,982	)
Income from financial investment and exchange variation		277,091			465,023			148,048			263,933

		277,091			465,023			148,048			263,933

Cost of debt, net		(432,312	)		(793,207	)		(483,838	)		(1,005,049	)
Other charges and monetary variations
Interest on other receivables		31,716			80,615			62,841			130,297
Monetary variation on leases and concessions agreements		(61,864	)		(134,992	)		(72,174	)		(145,582	)
Monetary variation on leases		(32,294	)		(66,539	)		(51,389	)		(102,094	)
Bank charges		(63,722	)		(127,459	)		(63,813	)		(110,725	)
Advances on real state credits		(5,625	)		(12,627	)		(9,372	)		(21,378	)
Interest on contingencies and contracts		(16,130	)		(35,921	)		(30,037	)		(59,841	)
Interest on other liabilities		(105,118	)		(208,415	)		(143,098	)		(301,799	)
Exchange variation		868			(4,329	)		35,314			49,550

		(252,169	)		(509,667	)		(271,728	)		(561,572	)

(=) Financial results, net		(684,481	)		(1,302,874	)		(755,566	)		(1,566,621	)
Finance expense		(867,138	)		(1,765,370	)		(845,403	)		(1,724,271	)
Finance income		234,762			517,771			325,016			571,567
Exchange variation		(312,621	)		(193,733	)		534,151			1,059,554
Derivatives		260,516			138,458			(769,330	)		(1,473,471	)

Financial results, net		(684,481	)		(1,302,874	)		(755,566	)		(1,566,621	)

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

27	Financial instruments

Financial risk management

Overview

The Company is exposed to the following risks related to the use of financial instruments:

•

Credit risk;

•

Liquidity risk; and

•

Market risk.

This note presents information about the exposure of the Company and its subsidiaries to the above risks, as well as the objectives of the Company’s risk management policies, these policy and processes for the assessment and management of risks.

The carrying amount of financial assets and financial liabilities are as follows:


	June 30, 2017		December 31, 2016
Assets
Fair value through profit or loss
Investment funds		2,688,998		3,203,907
Marketable securities		2,679,808		1,291,580
Derivate financial instruments		944,898		751,080

		6,313,704		5,246,567
Loans and receivables
Cash and cash equivalents		1,247,957		1,295,681
Trade receivables		1,190,992		1,185,430
Restricted cash		219,719		200,999
Receivables from related parties		211,577		242,257
Dividends receivable		42,523		144,160

		2,912,768		3,068,527
Total		9,226,472		8,315,094

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)


	June 30, 2017		December 31, 2016
Liabilities
Liabilities amortized cost
Loans, borrowings and debentures		14,071,397		14,525,030
Leases		1,123,421		1,397,543
Real state credit certificates		143,696		195,745
Trade payables		2,007,908		2,033,110
Other financial liabilities		275,260		203,303
Payables to related parties		268,723		237,081
Dividends payable		28,227		93,500
Tax installments—REFIS		215,163		215,565
Preferred shareholders payable in subsidiaries		1,531,250		1,769,427

		19,665,045		20,670,304
Fair value through profit or loss
Loans, borrowings and debentures		6,428,346		3,813,467
Contingent consideration		112,097		166,807
Derivative financial instruments		197,033		295,844

		6,737,476		4,276,118
		26,402,521		24,946,422

During the period ended at June 30, 2017, there was no reclassification between categories, fair value through profit or loss, loans and receivables and liabilities at the amortized cost presented above.

Risk management structure

As at June 30, 2017 and December 31, 2016, the fair values relating to transactions involving derivative financial instruments to protect the Company’s risk exposure were using observable inputs such as quoted prices in active markets, or discounted cash flows based on market curves, and are presented below:

Notional

Fair value

June 30, 2017

December 31, 2016

June 30, 2017

December 31, 2016

Exchange rate derivatives

Forward agreements

27,569

438,689

570

(14,983

)

Interest rate and exchange rate risk

Swap agreements (interest rate)

2,667,380

1,988,540

205,613

104,491

Swap agreements (exchange and interest rate)

7,372,596

4,315,575

541,682

365,728

10,039,976

6,304,115

747,295

470,219

Total financial instruments

747,865

455,236

Assets

944,898

751,080

Liabilities

(197,033

)

(295,844

)

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Credit risk


	June 30, 2017		December 31, 2016
Cash and cash equivalents ⁽ⁱ⁾		3,936,955		4,499,588
Trade receivables ⁽ⁱⁱ⁾		1,190,992		1,185,430
Derivative financial instruments ⁽ⁱⁱⁱ⁾		944,898		751,080
Marketable securities ⁽ⁱ⁾		2,679,808		1,291,580
Restricted cash ⁽ⁱ⁾		219,719		200,999

		8,972,372		7,928,677

⁽ⁱ⁾	The credit risk on cash and cash equivalents, marketable securities, restricted cash and assets derivative financial instruments are determined by rating instruments widely accepted by the market and are arranged as follows:


	June 30, 2017		December 31, 2016
AAA		2,324,718		—
AA+		523,512		—
AA		4,030,631		5,499,565
A		737,137		983,384
BB+		1,135		—
B		10,806		—
BBB		—		260,298

⁽ⁱⁱ ⁾

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of the customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

The requirement for impairment is analyzed at each reporting date on an individual basis for major clients. Additionally, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on actual incurred historical data.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. Management considers that the credit risk is covered by the allowance for doubtful accounts.

⁽ⁱⁱⁱ⁾

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed on an annual basis and may be updated throughout the year. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through potential counterparty’s failure to make payments.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. As mentioned in Note 1, Management has been working on measures to enable the subsidiary Cosan Logística to honor its Commitments.

The non-derivative financial liabilities of the Company sorted by due dates (based on undiscounted cash flows contracted) are as follows:


	June 30, 2017															December 31, 2016
	Up to 1 year			1—2 years			3—5 years			More than 5 years			Total			Total
Loans, borrowings and debentures		(4,553,225	)		(5,765,605	)		(9,984,771	)		(11,788,656	)		(32,092,257	)		(29,957,136	)
Trade payables		(2,007,650	)		(258	)		—			—			(2,007,908	)		(2,033,110	)
Other financial liabilities		(275,260	)		—			—			—			(275,260	)		(203,303	)
REFIS		(12,842	)		(12,618	)		(14,488	)		(193,563	)		(233,511	)		(235,919	)
Leases		(544,075	)		(351,488	)		(500,042	)		(330,982	)		(1,726,587	)		(1,824,890	)
Derivative financial instruments		(96,932	)		(100,633	)		(356,894	)		(227,049	)		(781,508	)		—
Real estate credits certificates		(118,788	)		(40,681	)		—			—			(159,469	)		(243,628	)

		(7,608,772	)		(6,271,283	)		(10,856,195	)		(12,540,250	)		(37,276,500	)		(34,497,986	)

Market risk

Market risk is the risk that changes in market prices – such as foreign exchange rates, interest rates and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

The Company uses derivatives to manage market risks. All such transactions are carried out within the guidelines set by the Risk Management Committee. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

a)	Foreign exchange risk

As at June 30, 2017 and December 31, 2016, the Company and its subsidiaries had the following net exposure to the exchange rate variations on assets and liabilities denominated in Brazilian Reais:


	June 30, 2017						December 31, 2016
	R$			US$			R$			US$
Cash and cash equivalents		325,260			98,320			424,334			130,200
Trade receivables		22,119			6,686			11,940			3,664
Advances to suppliers		—			—			58,866			18,062
Trade payables		—			—			(22,005	)		(6,752	)
Loans, borrowings and debentures		(8,791,356	)		(2,657,443	)		(6,323,330	)		(1,940,207	)
Contingent consideration		(31,400	)		(9,492	)		(68,388	)		(20,984	)
Derivative financial instruments ⁽ⁱ⁾		6,778,402			2,048,970			6,413,619			1,967,911

Foreign exchange exposure, net		(1,696,975	)		(512,959	)		495,036			151,894

⁽ⁱ⁾	These balances are equivalent to the notional amount in US Dollars converted to R$ at the Dollar rate of June 30, 2017.

Sensitivity analysis on changes in foreign exchange rates:

The probable scenario was defined based on the U.S. Dollar market rates as at June 30, 2017, which determines the fair values of the derivatives at that date. Stressed scenarios (positive and negative effects, before tax effects) were defined based on changes of a 25% and 50% to the U.S. Dollar exchange rates used in the probable scenario.

Based on the financial instruments denominated in U.S. Dollars at June 30, 2017, the Company performed a sensitivity analysis by increasing and decreasing the exchange rate for R$/US$ by 25% and 50%. The probable scenario considers the estimated exchange rates, made by a specialized third part, at the due date of the transactions for the companies with functional currency Real (positive and negative, before tax effects), as follows:


	Exchange rate sensitivity analysis (R$/US$)
			Scenario
	June 30, 2017		Probable		25%		50%		-25%		-50%
USD		3.3082		3.4100		4.2625		5.1150		2.5575		1.7050

The external source used by the company for market projections was a specialized consultant.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Considering the above scenario the profit or loss would be impacted as follows:


						Variation scenario
Instrument	Risk factor		Probable			25%			50%			-25%			-50%
Cash and cash equivalents		USD fluctuation		8,549			71,588			143,175			(71,588	)		(143,175	)
Trade receivables		USD fluctuation		681			5,699			11,400			(5,700	)		(11,400	)
Exchange rate derivatives ⁽ⁱ⁾		USD fluctuation		97,396			773,375			1,546,750			(773,375	)		(1,546,750	)
Exchange rate		USD and
and interest derivatives ⁽ⁱ⁾		CDI fluctuation		399,301			1,116,759			2,198,379			(1,046,695	)		(2,128,519	)
Loans, borrowings and debentures		USD fluctuation		(180,655	)		(1,512,848	)		(3,025,698	)		1,512,849			3,025,700
Contingent consideration		USD fluctuation		(966	)		(8,091	)		(16,183	)		8,091			16,183

Impacts on profit or loss				324,306			446,482			857,823			(376,418	)		(787,961	)

⁽ⁱ⁾	For sensitivity analysis, it’s only considered exchange rate swaps for Notional.

b) Interest rate risk

The Company and its subsidiaries monitor the fluctuations in variable interest rates in connection with its borrowings, especially those that accrue interest using LIBOR, and uses derivative instruments in order to minimize variable interest rate fluctuation risks.

Sensitivity analysis on changes in interest rates:

A sensitivity analysis on the interest rates on loans and borrowings in compensation for the CDI investments with pre-tax increases and decreases of 25% and 50% is presented below:


	June 30, 2017
Exposure interest rate ⁽ⁱ⁾	Probable			25%			50%			-25%			-50%
Cash and cash equivalents		496,000			124,000			248,000			(124,000	)		(248,000	)
Marketable securities		33,650			8,413			16,825			(8,413	)		(16,825	)
Other financial assets		—			—			—			—			—
Leases		(97,176	)		(24,294	)		(48,588	)		24,294			48,588
Advances on real state credits		(12,430	)		(3,107	)		(6,215	)		3,107			6,215
Interest rate derivatives		207,816			(82,992	)		(44,217	)		269,763			665,382
Loans, borrowings and debentures		(1,928,174	)		(777,232	)		(1,608,388	)		672,947			1,320,847

Impacts on profit or loss		(1,300,314	)		(755,212	)		(1,442,583	)		837,698			1,776,207

The probable scenario considers the estimated interest rate, made by a specialized third part and Banco Central do Brasil as follows:


	Probable		25%		50%		-25%		-50%
SELIC		8.75%		10.94%		13.13%		6.56%		4.38%
CDI		8.65%		10.81%		12.98%		6.49%		4.33%
TJ462		7.00%		8.50%		10.00%		5.50%		4.00%
TJLP		6.00%		7.50%		9.00%		4.50%		3.00%

⁽ⁱ⁾	The external source used by the company for market projections was a specialized consultant.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

Financial instruments fair value

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

•

The cash and cash equivalents, accounts receivable, trade receivables, trade payables and other current liabilities approximate their carrying amount largely due to the short-term maturity of these instruments.

•

The fair values of the quoted notes and bonds are based on price quotations at the reporting date. The fair value of unquoted instruments, loans from banks and other financial liabilities, obligations under finance leases, as well as other non-current financial liabilities is estimated by discounting future cash flows using rates currently available for debt on similar terms, credit risk and remaining maturities.

•

The market value of the Senior Notes are listed on the Luxembourg Stock Exchange (Note 16) is based on their quoted market price are as follows:


Senior Notes Due	June 30, 2017		December 31, 2016
2018		99.50 %		95.68%
2023		99.51 %		96.05%
2024		103.22 %		—
2027		102.54%		—

•

The fair value of Perpetual Notes listed on the Luxembourg Stock Exchange (Note 16) is based on their quoted market price as June 30, 2017 of 100,05% (103.03% at December 31, 2016) of the face value of obligations at June 30, 2017.

•

The fair value of other loans and financing, the respective market values substantially approximate the amounts recorded due to the fact that these financial instruments are subject to variable interest rates (Note 16).

The Company and its subsidiaries enter into derivative financial instruments with various counterparties, principally financial institutions with investment grade credit ratings. Derivatives valued using valuation techniques with observable market data refer mainly to interest rate swaps and foreign exchange forward contracts.

The fair value of derivative financial instruments is determined using valuation techniques and observable market data. The valuation techniques applied more often include pricing models and swaps contracts, with a present value calculation. The models consider various data, including counterparty credit quality, spot exchange rates, forward curves of interest rates and curves of the commodity term rates.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

The carrying amounts and fair value of financial assets and financial liabilities are as follows:


							Assets and liabilities measured at fair value
	Carrying amount						June 30, 2017						December 31, 2016
	June 30, 2017			December 31, 2016			Level 2			Level 3			Level 2			Level 3
Assets
Investment funds		2,688,998			3,203,907			2,688,998			—			3,203,907			—
Marketable securities		2,679,808			1,291,580			2,679,808			—			1,291,580			—
Derivate financial instruments		944,898			751,080			944,898			—			751,080			—

Total		6,313,704			5,246,567			6,313,704			—			5,246,567			—

Liabilities
Loans, borrowings and debentures		(6,428,346	)		(3,813,467	)		(6,428,346	)		—			(3,813,467	)		—
Contingent consideration		(112,097	)		(166,807	)		—			(112,097	)		—			(166,807	)
Derivative financial instruments		(197,033	)		(295,844	)		(197,033	)		—			(295,844	)		—

Total		(6,737,476	)		(4,276,118	)		(6,625,379	)		(112,097	)		(4,109,311	)		(166,807	)

Hedge accounting

Currently the Company has adopted the hedge accounting of fair value for some its operations that both the hedging instruments and the hedged items are accounted for at fair value through profit or loss. Operations and accounting effects of this adoption are as follows:


	Debt			Derivative			Total
At December 31, 2016		1,534,072			(146,697	)		1,387,375
Initial measurement		2,461,836			—			2,461,836
Interest amortization		(9,596	)		(9,067	)		(18,663	)
Fair value		145,172			(45,511	)		99,661

At June 30, 2017		4,131,484			(201,275	)		3,930,209

In May 2017 the indirect subsidiary COMGÁS designated hedge accounting of fair value for its “ Debêntures 5ª issuance ” loan agreement. Using derivative operations, COMGÀS protected its future cash flow by changing the interest risk linked to the IPCA (National Wide Consumer Price Index) by percentages of the CDI (Interbank deposit rate).

Capital management

The Company’s policy is to maintain a robust capital base to promote the confidence of investors, creditors and the market, and to ensure the future development of the business. Management monitors that the return on capital is adequate for each of its businesses.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

28	Post-employment benefits


	June 30, 2017		December 31, 2016
Futura		46,027		43,401
Futura II		157		163
COMGÁS		408,229		397,916

		454,413		441,480

During the period ended June 30, 2017, the expense recognized in relation to the actuarial contributions was R$13,999 (R$ 13,946 for the six month period ended June 30, 2016).

29	Share-based payment

On April 27, 2017, a new share-based compensation model was approved at the Assembly of the subsidiary Cosan S.A, which became effective as of the granting.

Cosan S.A, issued 274,000 shares of the “share-based compensation plan”, which will be transferred in full and free of charge after 5 years, from the approval of the grant, in a quantity adjusted by the number proportional to the dividends paid in the period, conditioned to the exercise of the functions of the beneficiary the Company, under the terms of each Share granting Program.

The Black and Scholes methodology was used to calculate the fair value of the shares granted under the terms of the “share-based compensation plan”, reflecting the determination of Technical Pronouncement CPC 10—Share-based Payment. Given the characteristics of the Plan, the fair value is equivalent to the value of the share on the grant date (R$ 32.11).

The assumptions for fair value measurement of share option plans were as follows:


						Number of instruments on June 30, 2017
Share option programs	Expected life (years)	Interest rate		Expected volatility		Granted		Exercisable options			Outstanding		Market price on grant date		Exercise price at June 30, 2017		Fair value at grant date—R$ ⁽ⁱ⁾
Share option programs	Expected life (years)	Interest rate		Expected volatility		Granted		Exercisable options			Outstanding		Market price on grant date		Exercise price at June 30, 2017		Fair value at grant date—R$ ⁽ⁱ⁾
August 18, 2011 (A)	1 to 7		12.39		31.44		4,825,000		(3,193,000	)		1,237,000		22.80		24.02		6.80
August 18, 2011 (B)	1 to 12		12.39		30.32		5,000,000		(2,000,000	)		3,000,000		22.80		24.02		8.15
December 12, 2012 (C)	1 to 7		8.78		31.44		700,000		(48,000	)		652,000		38.89		42.08		10.10
April 24, 2013	5 to 7		13.35		27.33		970,000		—			860,000		45.22		48.23		17.95
April 25, 2014	5 to 7		12.43		29.85		960,000		—			945,000		39.02		39.24		15.67
August 31, 2015	5 to 7		14.18		33.09		759,000		—			674,000		19.96		19.50		7.67
April 27, 2017	5		15.00		32.75		274,000		—			274,000		38.15		—		32.11

							13,488,000		(5,241,000	)		7,642,000

(i)	The fair value of the employee share options has been measured using the Black-Scholes formula.

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, except earnings per share)

The number and weighted-average exercise prices of share options under the share option programs were as follows:


	Number of options			Weighted- average exercise price—R$
At December 31, 2016		12,138,238			23.96
Granted		274,000			—
Cancellation or settlements		(4,160,238	)		—
Share options exercised		(610,000	)		26.43

At June 30, 2017		7,642,000			33.33

On December 21, 2016, a new share-based compensation plan was approved at the Assembly of the subsidiary Cosan Logística, which became effective as of the granting, which took place on January 2, 2017.

Cosan Logística, issued 1,513,180 shares of the “share-based compensation plan”, which will be transferred in full and free of charge after 5 years, from the approval of the grant, in a quantity adjusted by the number proportional to the dividends paid in the period, conditioned to the exercise of the functions of the beneficiary the Company, under the terms of each Share granting Program.

30	Subsequent events

Repurchase of shares

In the period from July 3, 2017 to August 9, 2017, the subsidiary Cosan S.A repurchased 1,298,000 common shares in the amount of R$ 44,196, with a maximum unit cost of R$ 35.50, a minimum unit cost of R$ 33,08 and average unit cost of R$ 34.10.

***

LOGO

2 Q17 Earnings Release

São Paulo, August 10, 2017 – COSAN LIMITED (“CZZ” or “Company”) (NYSE: CZZ and B3: CZLT33 ) 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.

Summary of Financial Information

Executive Summary—Cosan Pro forma¹

2Q17

2Q16

Chg.%

1Q17

Chg.%

BRL mln

(Apr-Jun)

2Q17/2Q16

(Jan-Mar)

2Q17/1Q17

Net Revenue

13,072.6

12,790.0

2.2%

12,742.7

2.6%

Gross profit

1,553.7

1,969.0

-21.1%

1,642.4

-5.4%

EBIT

757.7

1,097.6

-31.0%

729.2

3.9%

EBITDA

1,535.5

1,797.3

-14.6%

1,458.8

5.3%

Adjusted EBITDA

1,857.5

1,561.7

18.9%

1,668.6

11.3%

Net Income (Loss)

(44.8

)

25.3

n/a

21.1

n/a

Adjusted Net Income (Loss)

55.8

(91.3

)

n/a

48.3

15.3%

Note 1: Considering 50% of the results of Raízen Combustíveis and Raízen Energia

Nota 2: Adjusted EBITDA and Net Income does not include non-recurring effects in Cosan S/A, as detailed in its earnings release.

Message from the CEO

We continue to see improvements in Brazilian macroeconomic environment, with declining inflation and interest rates, as well as signs of recovery in some economic sectors. Our expectations for grain crop development are confirmed for now benefitting exports and trade balance. On the other hand, unemployment index is still high and we look forward to the approval of necessary reforms required to ensure a sustainable economic upturn.

Our energy portfolio keeps on delivering consistently while increasing operational efficiency. We continue to outperform the industry average in fuels distribution segment, as a result of a growth strategy implemented four years earlier, combined with our focus on a long-term relationship with the service stations network. An environment of fuel prices volatility tends to enhance Raízen’s differentials regarding supply and logistics efficiency. While speculation remains high around oil and sugar prices, Raízen Energia continues focused on streamlining further its agricultural and industrial operations, optimizing logistics with projects such as the Pentagon and reducing costs, with a firm commitment to deliver results regardless of commodity prices. The gradual increase in natural gas consumption in the industrial segment continues and we keep on growing in residential and commercial segments by converting new consumers and developing new applications for gas, boosting Comgás’ results. Moove recorded substantial growth in results with higher volume in all countries it which it operates and the launch of new products.

I would like to give special attention to Rumo this quarter. As mentioned, our positive outlook for grains crop has been confirmed, resulting in stronger demand for Rumo. Demand, however, is not necessarily a guarantee of results. The soybean and corn crop shipment dynamics was different this year, with an interchange between the two commodities, significantly increasing the operational complexity for a company which has been investing heavily in capacity expansion, implementing and adjusting processes, reducing accidents and improving the reliability of its services. Once again, our results are evidence of Cosan team’s managerial capacity and focus on operational excellence. Rumo’s results speak for themselves, and we are confident that the best is yet to come.

In summary, we keep on working hard to deliver on our guidance, irrespective of whatever challenges may arise.

Marcos Lutz, CEO

LOGO

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Business Units

Cosan S/A Indústria e Comércio (B3: CSAN3) and Cosan Logística S/A (B3: RLOG3), companies controlled by the Company, reported its results in August 09, 2017. Its Earnings Releases containing the comments from the main financial and operational information, besides its Financial Statements, can be found at the websites below:

•

Cosan S/A (CSAN3): http:/ri.cosan.com.br

•

Cosan Logística (RLOG3 e RUMO3): http://ri.rumolog.com.br

Cosan S/A and Cosan Logística S/A business units that compose Cosan Limited and interest in each reportable segment are shown below:

•

Cosan S.A. (CSAN3)


Raízen Combustíveis (50%)		Fuel Distribution
Raízen Energia (50%)		Sugar, Ethanol and Cogeneration
Comgás (63.1%)		Natural Gas Distribution
Moove (100%)		Lubricants, Basic Oils and Specialties
Cosan Corporativo (100%)		Corporate Structure and Other Investments

•

Cosan Logística S.A. (RLOG3)


Rumo Logística (RUMO3)		Logistics Operator

Executive Summary 2Q17

Cosan S.A. (CSAN3):

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.

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

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. 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.

Cosan Logística S.A. (RLOG3):

Rumo’s EBITDA reached R$733 million in 2Q17, up 24% year-on-year. This increase was mainly related to higher volume transported by Rumo in the quarter, due to higher capacity generated with the execution of the company’s Capex plan, combined with record soybean and corn crops. It is worth noting that grains export schedule was rather atypical this year, adding complexity to Rumo’s operations. Second quarter is usually dedicated to soybean transportation, but volumes were smaller from May onwards following drop in commodity prices, as traders decided to store products while waiting for better market conditions. In the meantime, trading companies decided to anticipate second corn crop exports in June, rather than shifting to corn only in the third quarter. Rumo managed to quickly and smoothly adapt its transportation scheduling, shifting from soybean to corn and maximizing transported volumes of both commodities. Besides Rumo increased cost efficiency. Variable costs grew less than transported volume increase, while fixed costs and SG&A, excluding depreciation and amortization, decreased. Thus, Rumo’s EBITDA margin climbed from 43% in 2Q16 to 49% in 2Q17.

Cosan Limited Pro Forma:

Adjusted EBITDA reached R$1.9 billion this quarter (+19%), due to better results from Comgás, Moove and Rumo, partially offset by lower results from Raízen Combustíveis and Raízen Energia. Cosan Limited closed the quarter with a R$ 109 million net loss – R$ 56 million of net profit if adjusted by non recurring effects.

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.cosanlimited.com) in the Results Center.

Main Operational 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 Equivalent ³ 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 Margin ⁴ (BRL/cbm)		89		97		-8%		111		-20%
Adjusted EBIT ⁴ (BRL/cbm)		63		73		-14%		87		-28%

Note 3: Sum of gasoline and ethanol volumers, adjusted by the energy coefficient of 0,7221.

Note 4: Excludes non-recurring items

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 EBITDA ⁵ (BRL mln)		804.4		835		-4%
Adjusted EBIT ⁵ /TRS sold (BRL/ton)		119.8		139		-14%

Note 5: Excludes non-recurring effects

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Comgás


	2Q17		2Q16		Chg.%		1Q17		Chg.%
	(Apr-Jun)		(Apr-Jun)		2Q17/2Q16		(Jan-Mar)		2Q17/1Q17
Total Sales Volume (cbm) Ex-Thermal		1,080		1,032		5%		1,008		7%
Normalized EBITDA ⁶ (BRL mln)		460		334		38%		384		20%
IFRS EBITDA (BRL mln)		366		641		-43%		313		17%

Note 6: 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%

Rumo Logística


Operational and Financial Performance Indicators	2Q17		2Q16		Chg.%
	(Apr-Jun)		(Apr-Jun)		2Q17/2Q16
Consolidated
Operating Ratio		71%		76%		-6,6%
Diesel Comsuption (Liters 000’ TKB)		4,4		4,8		-8,3%
North Operation
Grains from Rondonópolis (MT) to Port of Santos (SP)
Average number of freight cars loaded per day (units)		408		361		13,0%
Transit time (hours)		102,1		101,4		0,7%
Cycle time of freight cars (days)		9,8		10,4		-5,8%
Operação Sul
Grains from terminals in North of Paraná to Port of Paranaguá (PR) and São Francisco do Sul (SC)
Average number of freight cars loaded per day (units)		342		352		-2,8%
Transit time (hours)		50,0		46,1		8,5%
Cycle time of freight cars (days)		7,0		7,4		-5,4%

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Cosan Corporate 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 Accounting”, the “Adjustments & Eliminations” column reflects the eliminations from operations among all Cosan subsidiaries for consolidation purposes.

Earnings by Business Unit

2Q17

Raízen
Combustíveis

Raízen
Energia

Comgás

Moove

Cosan
Corporate

50%
Raízen

Adjustments
and
Elimination

Cosan S/A
Accounting

Adjustments
CZZ

Consolidated
CZZ
Pro forma

Cosan
Logistica

Cosan
Limited
(Parent
Company)

Adjustments
and
Elimination

Consolidated
Pro forma

Net Revenue

17,264.0

3,105.9

1,359.7

511.5

0.2

(20,370.0

)

0.0

1,871.3

—

1,871.3

1,506.1

—

(8.9

)

3,368.6

Cost of Goods and Services Sold

(16,499.3

)

(3,095.9

)

(866.8

)

(354.4

)

(0.5

)

19,595.2

-0.0

(1,221.8

)

—

(1,221.8

)

(989.3

)

—

8.9

(2,202.2

)

Gross Profit

764.8

10.0

492.9

157.0

(0.4

)

(774.8

)

—

649.5

—

649.5

516.8

—

1,166.3

Gross Margin (%)

4.4%

0.3%

36.2%

30.7%

n/a

3.8%

0.0%

34.7%

n/a

34.7%

34.3%

n/a

—

34.6%

Selling Expenses

(328.0

)

(186.4

)

(164.2

)

(99.9

)

(0.0

)

514.4

—

(264.2

)

—

(264.2

)

(17.3

)

—

(281.4

)

General and Administrative Expenses

(102.4

)

(128.5

)

(81.1

)

(21.2

)

(35.0

)

230.9

—

(137.2

)

—

(137.2

)

(65.9

)

0.2

—

(202.9

)

Other Operating Income (Expenses)

225.1

(7.7

)

(9.3

)

(0.3

)

(35.9

)

(217.3

)

—

(45.5

)

—

(45.5

)

(2.2

)

—

(47.7

)

Equity Pick-up

—

(10.5

)

—

(2.6

)

137.2

10.5

(97.2

)

37.4

(1.2

)

36.1

1.4

(52.1

)

53.4

38.8

Depreciation and Amortization

162.4

505.5

128.1

19.9

4.1

(667.9

)

—

152.1

—

152.1

298.7

0.0

—

450.8

EBITDA

721.8

182.4

366.3

53.0

70.1

(904.2

)

(97.2

)

392.1

(1.2

)

390.8

731.6

(51.9

)

53.4

1,123.8

EBITDA Margin (%)

4.2%

5.9%

26.9%

10.4%

n/a

4.4%

n/a

21.0%

n/a

20.9%

48.6%

n/a

33.4%

Financial result

(71.2

)

(98.1

)

(41.2

)

(4.4

)

(211.4

)

169.3

—

(256.9

)

(2.3

)

(259.2

)

(432.9

)

7.6

—

(684.5

)

Income and Social Contribution Taxes

(143.8

)

171.3

(70.8

)

(10.8

)

69.4

(27.5

)

—

(12.2

)

7.2

(5.0

)

(30.8

)

(0.1

)

—

(36.0

)

Non-controlling Interest

(14.6

)

—

14.6

(46.9

)

(46.9

)

—

(46.9

)

21.3

(0.3

)

28.6

2.6

Net Income

329.9

(249.9

)

126.2

17.9

(76.0

)

(80.0

)

(144.1

)

(76.0

)

3,6

(72,4

)

(9.5

)

(44.8

)

81.9

(44.8

)

Earnings by Business Unit

2016

Raízen
Combustíveis

Raízen
Energia

Comgás

Moove

Cosan
Corporate

50%
Raízen

Adjustments
and
Elimination

Cosan S/A
Accounting

Adjustments
CZZ

Consolidated
CZZ
Pro forma

Cosan
Logistica

Cosan
Limited
(Parent
Company)

Adjustments
and
Elimination

Consolidated
Pro forma

Net Revenue

34,962.2

6,019.1

2,505.9

958.2

0.4

(40,981.3

)

-0.0

3,464.4

—

3,464.4

2,705.3

—

(15.5

)

6,154.2

Cost of Goods and Services Sold

(33,246.2

)

(5,328.0

)

(1,586.9

)

(668.4

)

(1.6

)

38,574.2

0.0

(2,256.9

)

—

(2,256.9

)

(1,920.2

)

—

15.5

(4,161.6

)

Gross Profit

1,716.0

691.1

919.0

289.7

(1.3

)

(2,407.1

)

—

1,207.5

—

1,207.5

785.1

—

0.0

1,992.6

Gross Margin (%)

4.9%

11.5%

36.7%

30.2%

n/a

5.9%

0.0%

34.9%

n/a

34.9%

29.0%

n/a

(0.0

)

32.4%

Selling Expenses

(642.1

)

(330.7

)

(332.0

)

(187.3

)

(0.1

)

972.8

—

(519.4

)

—

(519.4

)

(19.6

)

—

(539.0

)

General and Administrative Expenses

(218.7

)

(287.3

)

(158.2

)

(41.4

)

(74.5

)

505.9

—

(274.1

)

—

(274.1

)

(129.2

)

(7.0

)

—

(410.3

)

Other Operating Income (Expenses)

179.3

(93.0

)

(9.9

)

(0.2

)

(49.3

)

(86.2

)

—

(59.4

)

—

(59.4

)

(4.4

)

—

(63.8

)

Equity Pick-up

—

(47.8

)

—

(4.1

)

449.1

47.8

(150.7

)

294.3

(1.2

)

293.0

3.2

29.5

(28.2

)

297.4

Depreciation and Amortization

312.6

954.2

260.8

39.6

8.3

(1,266.8

)

—

308.7

—

308.7

588.7

0.0

—

897.4

EBITDA

1,347.1

886.6

679.7

96.3

332.3

(2,233.7

)

(150.7

)

957.5

(1.2

)

956.3

1,223.8

22.5

(28.2

)

2,174.3

EBITDA Margin (%)

3.9%

14.7%

27.1%

10.1%

n/a

5.5%

n/a

27.6%

n/a

27.6%

45.2%

n/a

35.3%

Financial result

(243.3

)

37.0

(82.6

)

(24.2

)

(285.2

)

206.3

—

(392.0

)

10.1

(381.9

)

(884.1

)

(36.9

)

—

(1,302.9

)

Income and Social Contribution Taxes

(233.2

)

93.7

(126.5

)

(13.5

)

90.5

139.5

—

(49.6

)

3.0

(46.6

)

(30.6

)

(2.6

)

—

(79.8

)

Non-controlling Interest

(28.3

)

—

28.3

(78.1

)

(78.1

)

—

(78.1

)

199.2

(6.6

)

(32.4

)

82.0

Net Income

529.8

63.0

209.7

19.1

129.3

(592.8

)

(228.8

)

129.3

11.8

141.1

(80.5

)

(23.7

)

(60.6

)

(23.7

)

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Loans and Financing

In June 30, 2017, Cosan Limited’s (CZZ Corporate) gross debt was R$ 678 million (-4%) with no change in the period, except by interest payment/accrual according to the forex variation in the quarter.

Cash and cash equivalents ended the 2Q17 at R$ 335 million, compared to R$ 228 million at the close of the 2Q16, due to the dividend received from its subsidiary Cosan S/A. CZZ Corporate’s net debt ended the quarter at R$ 342 million.


Loans and Financing 2Q17 BRL mln	Comgás			Moove			Cosan Corporate			Consolidated			Raízen Energia			Raízen Combustíveis			Consolidated Pro forma			Cosan Logística			CZZ Corporate			CZZ Pro forma
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			7,758.2			475.8			15,821.4

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			3,133.5			227.8			9,444.6
Gross Debt		3,597.0			449.4			4,298.9			8,345.3			4,624.2			701.2			13,670.7			10,891.7			703.7			25,266.0

Cash items		(147.9	)		(132.6	)		(30.1	)		(310.6	)		307.0			(6.8	)		(10.4	)		(479.6	)		(48.8	)		(538.7	)

Funding		—			—			44.8			44.8			559.2			—			603.9			67.6			—			671.6
Payment of principal on loans and borrowings		(136.9	)		(115.6	)		(33.4	)		(285.9	)		(154.5	)		(2.0	)		(442.4	)		(243.3	)		—			(685.7	)
Payment of Interest on loans borrowings		(24.2	)		(3.4	)		(36.7	)		(64.3	)		(97.7	)		(4.8	)		(166.7	)		(331.4	)		(48.8	)		(546.9	)
Derivatives		13.2			(13.6	)		(4.7	)		(5.2	)		—			—			(5.2	)		27.5			—			22.3

Noncash items		98.6			24.9			186.3			309.7			220.5			(75.7	)		454.5			320.4			23.0			797.9

Provision for interest (accrual)		57.9			4.1			82.0			144.0			78.8			4.7			227.5			260.6			22.6			510.8
Monetary variation and MTM adjustment of debt		33.9			15.2			68.6			117.7			15.6			6.7			140.0			(5.3	)		0.7			135.4
Exchange variation, net of derivatives		6.8			5.5			35.6			48.0			126.0			(87.0	)		87.0			65.0			(0.3	)		151.7

Closing balance of gross debt		3,547.6			341.7			4,455.1			8,344.4			5,151.6			618.8			14,114.8			10,732.5			677.9			25,525.2

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			2,477.1			335.5			8,838.7

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			8,255.4			342.4			16,686.5

Obligations due to preferred shareholders of subsidiaries		—			—			1,531.2			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			8,255.4			342.4			18,217.8

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Cash Flow Reconciliation


Cash Flow Statement	2Q17
BRL mln	Comgás			Moove			Cosan Corporate			Eliminations			Cosan S/A			Raízen Combined			Eliminations			Cosan S/A Pro forma			Adjustments CZZ			Consolidated CZZ Pro forma			Cosan Logística			CZZ Corporate			Eliminations			CZZ Pro forma
EBITDA		366.3			53.0			70.1			(97.2	)		392.1			452.1			(40.0	)		804.2			(1.2	)		803.0			731.6			(51.9	)		52.9			1,535.5

Noncash impacts on EBITDA		26.3			9.1			(121.5	)		97.2			11.2			102.9			40.0			154.2			1.2			155.4			79.5			45.2			(52.9	)		227.2
Changes in assets and liabilities		(26.0	)		17.9			27.8			—			19.7			(123.7	)		—			(104.0	)		—			(104.0	)		(310.8	)		(3.9	)		—			(418.7	)
Operating financial result		47.5			(0.1	)		27.2			—			74.7			72.5			—			147.1			(0.0	)		147.1			26.0			0.3			—			173.4

Operating Cash Flow		414.2			80.0			3.6			—			497.7			503.9			—			1,001.6			(0.0	)		1,001.6			526.2			(10.4	)		—			1,517.4

CAPEX		(102.7	)		(5.0	)		(1.5	)		—			(109.2	)		(285.4	)		—			(394.6	)		—			(394.6	)		(478.2	)		(0.7	)		—			(873.5	)
Other		1.1			(0.2	)		(3.8	)		—			(2.9	)		23.9			—			21.0			—			21.0			5.4			(8.3	)		8.3			26.4

Cash Flow from Investing Activities		(101.6	)		(5.2	)		(5.2	)		—			(112.1	)		(261.5	)		—			(373.6	)		—			(373.6	)		(472.8	)		(9.0	)		8.3			(847.1	)

Funding		—			—			44.8			—			44.8			559.2			—			603.9			—			603.9			67.6			—			—			671.6
Loans amortization (Principal)		(136.9	)		(115.6	)		(33.4	)		—			(285.9	)		(156.5	)		—			(442.4	)		—			(442.4	)		(342.5	)		—			—			(784.9	)
Loans amortization (Interest)		(24.2	)		(3.4	)		(36.7	)		—			(64.3	)		(102.6	)		—			(166.8	)		—			(166.8	)		(410.0	)		(48.8	)		—			(625.6	)
Derivatives		13.2			(13.6	)		(4.7	)		—			(5.2	)		—			—			(5.2	)		—			(5.2	)		27.5			—			—			22.3
Other		(0.0	)		62.3			(67.5	)		(0.0	)		(5.2	)		(1.4	)		—			(6.6	)		—			(6.6	)		(33.2	)		—			(8.3	)		(48.2	)

Cash Flow from Financing Activities		(147.9	)		(70.3	)		(97.5	)		(0.0	)		(315.8	)		298.7			—			(17.1	)		—			(17.1	)		(690.6	)		(48.8	)		(8.3	)		(764.8	)

Dividends received		—			—			299.3			—			299.3			—			(296.8	)		2.6			—			2.6			1.3			235.2			(235.2	)		3.9

Free Cash Flow to Equity		164.6			4.4			200.1			(0.0	)		369.1			541.0			(296.8	)		613.4			(0.0	)		613.4			(635.9	)		167.1			(235.2	)		(90.6	)

Cosan S.A		—			—			(686.4	)		—			(686.4	)		—			296.8			(389.7	)		—			(389.7	)		(0.6	)		(73.9	)		235.2			(229.0	)
Cosan Limited		—			—			—			—			—			—			—			—			—			—			—			—			—			—
Non-controlling Shareholders		—			—			—			—			—			(305.3	)		—			(305.3	)		—			(305.3	)		—			—			—			(305.3	)

Dividends paid		—			—			(686.4	)		—			(686.4	)		(305.3	)		296.8			(695.0	)		—			(695.0	)		(0.6	)		(73.9	)		235.2			(534.4	)

Exchange variation impact on cash and cash equivalents		—			3.2			12.6			—			15.8			8.6			—			24.4			—			24.4			(19.9	)		14.6			—			19.0

Cash Generation (Burn) in the Period		164.6			7.6			(473.8	)		(0.0	)		(301.5	)		244.2			—			(57.3	)		(0.0	)		(57.3	)		(656.4	)		107.7			—			(605.9	)

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Financial Statements

Cosan Limited—Accounting

Indicators

2Q17

2Q16

Chg.%

1Q17

Chg.%

6M17

6M16

Chg.%

BRL mln

(Apr-Jun)

2Q17/2Q16

(Jan-Mar)

2Q17/1Q17

(Jan-Jun)

6M17/6M16

EBITDA

1,123.8

1,400.9

-19.8

1,050.5

7.0

2,174.3

2,743.7

-20.8

CAPEX

591.4

641.4

-7.8

549.5

7.6

1,140.9

1,064.0

7.2


Income Statement for the Period	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
Net Revenue		3,368.5			3,340.4			0.8	%		2,785.7			20.9	%		6,154.2			6,459.5			-4.7	%
Cost of Goods and Services Sold		(2,202.2	)		(1,995.7	)		10.3	%		(1,959.4	)		12.4	%		(4,161.6	)		(4,061.8	)		2.5	%
Gross profit		1,166.3			1,344.7			-13.3	%		826.3			41.2	%		1,992.6			2,397.7			-16.9	%
Selling, general & administrative expenses		(484.3	)		(527.9	)		-8.3	%		(465.0	)		4.2	%		(949.3	)		(992.7	)		-4.4	%
Other net operating income (expenses)		(47.7	)		(29.0	)		64.8	%		(16.0	)		n/a			(63.8	)		(66.3	)		-3.9	%
Financial results		(684.5	)		(755.6	)		-9.4	%		(618.4	)		10.7	%		(1,302.9	)		(1,566.6	)		-16.8	%
Equity Pick-up		38.8			249.0			-84.4	%		258.7			-85.0	%		297.4			688.8			-56.8	%
Expenses with income and social contribution taxes		(36.0	)		(64.9	)		-44.5	%		(43.8	)		-17.9	%		(79.8	)		(80.3	)		-0.6	%
Non-controlling interest		2.6			(216.7	)		n/a			79.4			-96.7	%		82.0			(265.5	)		n/a
Discontinued operations		—			25.6			-100.0	%		—			n/a			—			40.5			-100.0	%
Net Income (Loss)		(44.8	)		25.3			n/a			21.1			n/a			(23.7	)		155.6			n/a


Balance Sheet	2Q17		1Q17
BRL mln	06/30/2017		03/31/2017
Cash and cash equivalents		3,937		6,544
Marketable Securities		2,680		923
Trade accounts receivable		1,143		999
Inventories		581		600
Derivative financial instruments		945		836
Other current assets		822		806
Other non-current assets		4,676		4,447
Investments		8,916		9,021
Investment properties		—		—
Property, plant and equipment		11,125		10,927
Intangible assets		16,923		16,997
Total Assets		51,747		52,099
Loans and borrowings		20,500		20,441
Financial instruments and derivatives		197		337
Trade accounts payable		2,008		1,927
Payroll		209		162
Other current liabilities		1,782		1,718
Other non-current liabilities		11,391		11,763
Shareholders’ Equity		15,660		15,752
Total Liabilities		51,747		52,099

COSAN LIMITED

Earnings Release

2nd Quarter of the Fiscal Year of 2017

Financial Statement including Raízen

Cosan Limited Proforma (including 50% of Raízen)

Indicators

2Q17

2Q16

Chg.%

1Q17

Chg.%

6M17

6M16

Chg.%

BRL mln

(Apr-Jun)

2Q17/2Q16

(Jan-Mar)

2Q17/1Q17

(Jan-Jun)

6M17/6M16

EBITDA

1,535.5

1,797.3

-14.6

1,458.8

5.3

2,994.3

3,751.2

-20.2

Adjusted EBITDA

1,857.5

1,561.7

18.9

1,668.6

11.3

3,526.2

3,091.3

14.1

CAPEX

852.1

860.6

-1.0

1,075.3

-20.8

1,927.4

1,709.2

12.8


Income Statement for the Period	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
Net Revenue		13,072.6			12,790.0			2.2	%		12,742.7			2.6	%		25,815.2			25,737.4			0.3	%
Cost of Goods and Services Sold		(11,518.9	)		(10,821.0	)		6.4	%		(11,100.2	)		3.8	%		(22,619.1	)		(21,724.2	)		4.1	%
Gross profit		1,553.7			1,969.0			-21.1	%		1,642.4			-5.4	%		3,196.2			4,013.3			-20.4	%
Selling, general & administrative expenses		(857.0	)		(885.3	)		-3.2	%		(831.7	)		3.0	%		(1,688.7	)		(1,755.1	)		-3.8	%
Other net operating income (expenses)		60.9			13.9			n/a			(81.6	)		n/a			(20.6	)		51.2			n/a
Financial results		(769.1	)		(725.6	)		6.0	%		(636.9	)		20.8	%		(1,406.0	)		(1,498.5	)		-6.2	%
Equity Pick-up		(6.9	)		(9.2	)		-24.7	%		(16.4	)		-57.9	%		(23.3	)		(22.8	)		2.3	%
Expenses with income and social contribution taxes		(22.2	)		(140.4	)		-84.2	%		(127.3	)		-82.5	%		(149.5	)		(396.4	)		-62.3	%
Non-controlling interest		(4.2	)		(222.7	)		-98.1	%		72.6			n/a			68.3			(276.6	)		n/a
Discontinued operations		—			25.6			-100.0	%		—			n/a			—			40.5			-100.0	%
Net Income (Loss)		(44.8	)		25.3			n/a			21.1			n/a			(23.7	)		155.6			n/a


Balance Sheet	2Q17		1Q17
BRL mln	06/30/2017		03/31/2017
Cash and cash equivalents		6,159		8,522
Marketable Securities		2,680		923
Trade accounts receivable		2,128		1,951
Inventories		2,236		1,771
Derivative financial instruments		1,291		1,154
Other current assets		2,524		2,556
Other non-current assets		6,006		5,785
Investments		379		356
Property, plant and equipment		17,795		17,713
Intangible assets		20,836		20,895
Total Assets		62,034		61,627
Loans and borrowings		26,693		26,107
Financial instruments and derivatives		420		752
Trade accounts payable		3,174		2,930
Payroll		493		396
Other current liabilities		2,719		2,414
Other non-current liabilities		12,765		13,173
Shareholders’ Equity		15,770		15,855
Total Liabilities		62,034		61,627

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 11, 2017