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 registrants name into English)
Av. Juscelino Kubitschek, 1327, 4th 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. |
Consolidated interim financial statements as of
June 30, 2017
Cosan Limited
Consolidated interim financial statements
Contents
Page | ||||
3 | ||||
4 | ||||
Consolidated statements of profit or loss and other comprehensive income |
6 | |||
8 | ||||
10 | ||||
12 |
2
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 FormITR 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 Companys management is responsible for the preparation and presentation of this interim financial information in accordance with IAS 34Interim Financial Reporting, issued by the International Accounting Standards BoardIASB. 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 2410Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410Review 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 FormITR referred to above has not been prepared, in all material respects, in accordance with IAS 34Interim Financial Reporting, issued by the International Accounting Standards BoardIASB.
São Paulo, August 10, 2017
KPMG Auditores Independentes
CRC 2SP014428/O-6
Rogério Hernandez Garcia
Accountant CRC 1SP213431/O-5
3
Cosan Limited
Consolidated statements of financial position
(In thousands of Brazilian Reais R$)
Note | June 30, 2017 | December 31, 2016 | ||||||||||
Assets |
||||||||||||
Cash and cash equivalents |
7 | 3,936,955 | 4,499,588 | |||||||||
Marketable securities |
8 | 2,679,808 | 1,291,580 | |||||||||
Trade receivables |
9 | 1,143,329 | 1,130,624 | |||||||||
Derivative financial instruments |
27 | 230,130 | 20,654 | |||||||||
Inventories |
580,902 | 630,752 | ||||||||||
Receivables from related parties |
11 | 58,970 | 58,517 | |||||||||
Income tax receivable |
209,369 | 364,980 | ||||||||||
Other current tax receivable |
10 | 281,964 | 178,856 | |||||||||
Dividends receivable |
42,523 | 144,160 | ||||||||||
Other current assets |
228,776 | 449,298 | ||||||||||
|
|
|
|
|||||||||
Total current assets |
9,392,726 | 8,769,009 | ||||||||||
Trade receivables |
9 | 47,663 | 54,806 | |||||||||
Restricted cash |
219,719 | 200,999 | ||||||||||
Deferred tax assets |
21 | 1,662,340 | 1,490,002 | |||||||||
Receivables from related parties |
11 | 152,607 | 183,740 | |||||||||
Income tax receivable |
236,002 | 121,376 | ||||||||||
Other non-current tax receivable |
10 | 766,756 | 739,849 | |||||||||
Judicial deposits |
22 | 740,568 | 714,684 | |||||||||
Derivative financial instruments |
27 | 714,768 | 730,426 | |||||||||
Other non-current assets |
850,151 | 835,730 | ||||||||||
Investments in associates |
12 | 286,720 | 286,947 | |||||||||
Investments in joint ventures |
13 | 8,628,851 | 8,506,395 | |||||||||
Property, plant and equipment |
14 | 11,124,766 | 10,726,448 | |||||||||
Intangible assets and goodwill |
15 | 16,923,025 | 17,109,439 | |||||||||
|
|
|
|
|||||||||
Total non-current assets |
42,353,936 | 41,700,841 | ||||||||||
|
|
|
|
|||||||||
Total assets |
51,746,662 | 50,469,850 | ||||||||||
|
|
|
|
The accompanying notes are an integral part of these consolidated interim financial statements
4
Cosan Limited
Consolidated statements of financial position
(In thousands of Brazilian Reais R$)
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 | ||||||||||
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|
|
|||||||||
Total non-current liabilities |
28,944,955 | 27,831,034 | ||||||||||
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|
|
|
|||||||||
Total liabilities |
36,086,384 | 34,460,101 | ||||||||||
|
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|
|
|||||||||
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 | ||||||||||
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|
|||||||||
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 | ||||||||||
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|
|
The accompanying notes are an integral part of these consolidated interim financial statements
5
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) |
||||||||||||||||
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 | ) | ||||||||||||
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|
|||||||||||||
Gross profit |
1,166,335 | 1,992,625 | 1,344,700 | 2,397,664 | ||||||||||||||||
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|
|
|
|
|
|||||||||||||
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 | ||||||||||||||||
|
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|
|
|
|
|
|||||||||||||
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 | ||||||||||||||
|
|
|
|
|
|
|
|
6
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 instrumentscommon 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 | ||||||||||||||||
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|
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|
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|
|||||||||||||
Comprehensive incomeContinued operation |
76,379 | 212,962 | 248,962 | 432,643 | ||||||||||||||||
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|
|||||||||||||
Comprehensive (loss) incomeDiscontinued operation |
| | (218 | ) | 197 | |||||||||||||||
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|
|
|
|
|
|
|||||||||||||
Total comprehensive income |
76,379 | 212,962 | 248,744 | 432,840 | ||||||||||||||||
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|
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|
|||||||||||||
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 | ||||||||||||||
|
|
|
|
|
|
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|
|||||||||||||
(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 | ||||||||||||||||
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|
|||||||||||||
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 | ||||||||||||||
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|
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|
|||||||||||||
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 | ||||||||||||||
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|
|
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|
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|
|||||||||||||
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
7
Cosan Limited
Consolidated 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 | ||||||||||||||||||||
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|
|||||||||||||||
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 instrumentscommon 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 | |||||||||||||||||||||
Dividendsnon-controlling interests |
| (13,274 | ) | | | (13,274 | ) | 13,274 | | |||||||||||||||||||
Share options exercisedSubsidiaries |
| 10,425 | | | 10,425 | 6,057 | 16,482 | |||||||||||||||||||||
Dividends |
| | | (64,921 | ) | (64,921 | ) | (292,020 | ) | (356,941 | ) | |||||||||||||||||
Share-based compensationSubsidiaries |
| 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 | ||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these consolidated interim financial statements
8
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 instrumentscommon 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 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|||||||||||||||
Contributions by and distributions to owners of the Company: |
||||||||||||||||||||||||||||
Exercise of stock options plan |
| 578 | | | 578 | 347 | 925 | |||||||||||||||||||||
Dividendsnon-controlling interests |
| (7,091 | ) | | | (7,091 | ) | 7,091 | | |||||||||||||||||||
Dividends |
| | | (86,470 | ) | (86,470 | ) | (687,799 | ) | (774,269 | ) | |||||||||||||||||
Share-based compensationSubsidiaries |
| 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 | ) | ||||||||||||||||
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|
|||||||||||||||
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
9
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 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 | ) | ||||||||
|
|
|
|
10
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 exercisedsubsidiaries |
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
11
Cosan Limited
Notes 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. Cosans class A common shares are traded on the New York Stock Exchange (NYSE) (tickerCZZ). The BDRs (Brazilian Depositary Receipts) representing Cosans class A common shares are listed on the Brazilian Stock Exchange (BM&FBovespa) (tickerCZLT33). 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 Companys 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 (Cosans 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$950,064, in line with its business plan. The capital increase associated with the debt rescheduling implemented in 2016, as well as the issuance of Senior Notes 2024 in 2017 (note 16), equated the Companys operational continuity risk over a short-term horizon.
12
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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 Companys 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 Companys 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.
13
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
3 | Significant accounting policies |
The accounting policies set out below have been applied consistently by the Company to all periods presented in this consolidated interim financial statements.
3.1 | Basis of consolidation |
The consolidated statements include the accounts of Cosan and its subsidiaries. Cosans subsidiaries are listed below:
June 30, 2017 | December 31, 2016 | |||||||
Directly owned subsidiaries |
||||||||
Cosan Logística S.A. |
72.43 | % | 72.42 | % | ||||
Cosan S.A. Indústria e Comércio |
62.39 | % | 62.29 | % | ||||
Interest of Cosan S.A. in its subsidiaries |
||||||||
Comma Oil Chemicals Limited |
100.00 | % | 100.00 | % | ||||
Companhia de Gás de São Paulo COMGÁS(i) |
63.11 | % | 62.66 | % | ||||
Cosan Biomassa S.A.(ii) |
100.00 | % | 100.00 | % | ||||
Cosan Cayman II Limited |
100.00 | % | 100.00 | % | ||||
Cosan Global Limited |
100.00 | % | 100.00 | % | ||||
Cosan Investimentos e Participações S.A. |
100.00 | % | 100.00 | % | ||||
Cosan Lubes Investments Limited |
100.00 | % | 100.00 | % | ||||
Cosan Lubrificantes e Especialidades S.A. |
100.00 | % | 100.00 | % | ||||
Cosan Luxembourg S.A. |
100.00 | % | 100.00 | % | ||||
Cosan Overseas Limited |
100.00 | % | 100.00 | % | ||||
Cosan Paraguay S.A. |
100.00 | % | 100.00 | % | ||||
Cosan US, Inc. |
100.00 | % | 100.00 | % | ||||
Ilha Terminal Distribuição de Produto Químicos Ltda. |
100.00 | % | 100.00 | % | ||||
Pasadena Empreendimentos e Participações S.A. |
100.00 | % | 100.00 | % | ||||
Zip Lube S.A. |
100.00 | % | 100.00 | % | ||||
Rumo S.A.(iii) |
1.71 | % | 0.86 | % |
14
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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. |
15
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 15Revenue 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 9Financial 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.
16
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 Companys 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 segments shares and as required by IFRS 5Non-current assets available for sale and discontinued operationsthe 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 Companys interim financial statements for the three and six months periods ended June 30, 2016.
17
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 | ) | ||||||||||||||||||||
|
|
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|
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|
|
|||||||||||||||||
Gross profit |
1,368,714 | (24,014 | ) | | 1,344,700 | 2,444,592 | (46,928 | ) | | 2,397,664 | ||||||||||||||||||||||
|
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|
|
|||||||||||||||||
Operating expense |
(555,104 | ) | (1,764 | ) | | (556,868 | ) | (1,065,039 | ) | 6,024 | | (1,059,015 | ) | |||||||||||||||||||
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|
|
|||||||||||||||||
Income before interest in earnings of investees and financial results |
813,610 | (25,778 | ) | | 787,832 | 1,379,553 | (40,904 | ) | | 1,338,649 | ||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
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 | ) | ||||||||||||||||
|
|
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|
|
|
|
|
|
|
|||||||||||||||||
Profit before taxes |
313,940 | (30,142 | ) | (2,538 | ) | 281,260 | 514,916 | (49,031 | ) | (5,077 | ) | 460,808 | ||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income tax expense |
(70,295 | ) | 4,547 | 863 | (64,885 | ) | (90,515 | ) | 8,483 | 1,726 | (80,306 | ) | ||||||||||||||||||||
|
|
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|
|
|
|||||||||||||||||
Profit from continuing operations |
243,645 | (25,595 | ) | (1,675 | ) | 216,375 | 424,401 | (40,548 | ) | (3,351 | ) | 380,502 | ||||||||||||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|||||||||||||||||
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 | ||||||||||||||||||||||
|
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|
|||||||||||||||||
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 |
18
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 Cosans 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 segments 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:
19
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: |
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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 | ) | |||||||||||||||||||||||||
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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: |
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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 | ) | ||||||||||||||||||||||||||||
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(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: |
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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: |
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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 | ||||||||||||||||||||||||||||||||
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EBITDA |
182,412 | 721,832 | 366,292 | 52,979 | 731,587 | 16,870 | (904,244 | ) | (43,883 | ) | 1,123,845 | 392,078 | 731,587 | |||||||||||||||||||||||||||||||
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20
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 |
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Statement of income or loss: |
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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 | ) | ||||||||||||||||||||||||||
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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: |
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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 | ) | |||||||||||||||||||||||||||||
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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: |
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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: |
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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 | ||||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||
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21
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 |
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Statement of income or loss: |
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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 | ) | ||||||||||||||||||||||||||||
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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: |
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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 | ) | |||||||||||||||||||||||||||||||||
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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: |
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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: |
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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 | |||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||
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22
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 |
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Statement of income or loss: |
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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 | ||||||||||||||||||||||||||||||
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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: |
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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 | ) | |||||||||||||||||||||||||||||||||
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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: |
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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: |
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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 | |||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||
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23
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 |
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Statement of financial position: |
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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 | ) | ||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||
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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 |
24
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 |
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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 |
25
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 11Deconsolidated 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 | ||||||||||||
|
|
|
|
|
|
|
|
26
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 depositsCDB |
362,505 | 363,147 | ||||||
|
|
|
|
|||||
2,688,998 | 3,203,907 | |||||||
Bank investments |
||||||||
Repurchase agreements |
36,931 | 26,719 | ||||||
Bank certificate of depositsCDB |
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 depositsCDB(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. |
27
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
9 | Trade receivables |
June 30, 2017 | December 31, 2016 | |||||||
Domestic Brazilian Reais |
1,249,812 | 1,248,270 | ||||||
Export Foreign currency |
52,368 | 27,446 | ||||||
Allowance for doubtful accounts |
(111,188 | ) | (90,286 | ) | ||||
|
|
|
|
|||||
1,190,992 | 1,185,430 | |||||||
Current |
1,143,329 | 1,130,624 | ||||||
|
|
|
|
|||||
Non-current |
47,663 | 54,806 | ||||||
|
|
|
|
10 | Other current tax receivables |
June 30, 2017 | December 31, 2016 | |||||||
ICMSState VAT |
640,875 | 608,334 | ||||||
Credit installment |
37,854 | 36,708 | ||||||
PIS/COFINSRevenue tax |
346,377 | 257,920 | ||||||
Other |
23,614 | 15,743 | ||||||
|
|
|
|
|||||
1,048,720 | 918,705 | |||||||
Current |
281,964 | 178,856 | ||||||
|
|
|
|
|||||
Non-Current |
766,756 | 739,849 | ||||||
|
|
|
|
11 | Related parties |
a) | Receivables from and payables to related parties: |
June 30, 2017 | December 31, 2016 | |||||||
Current Asset |
||||||||
Commercial operation |
||||||||
Raízen Energia S.A. |
41,502 | 37,249 | ||||||
Aguassanta Participações S.A. |
153 | 6,342 | ||||||
Radar Propriedades Agricolas S.A. |
23 | 517 | ||||||
Raízen Combustíveis S.A. |
16,666 | 4,206 | ||||||
Other |
626 | 531 | ||||||
|
|
|
|
|||||
58,970 | 48,845 | |||||||
Corporate operation / Agreements |
||||||||
Raízen Energia S.A. |
| 9,672 | ||||||
|
|
|
|
|||||
58,970 | 58,517 | |||||||
|
|
|
|
|||||
Non-current assets |
||||||||
Receivables under the framework agreement |
||||||||
Janus Brasil Participações S.A |
30,423 | 28,705 | ||||||
Raízen Energia S.A. |
85,407 | 114,473 | ||||||
|
|
|
|
|||||
115,830 | 143,178 | |||||||
Financial and corporation operations |
||||||||
Rezende Barbosa |
35,944 | 38,944 | ||||||
Other |
833 | 1,618 | ||||||
|
|
|
|
|||||
36,777 | 40,562 | |||||||
|
|
|
|
|||||
152,607 | 183,740 | |||||||
|
|
|
|
28
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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 |
b) | 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 |
c) | 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 | |||||||||||||
|
|
|
|
|
|
|
|
29
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
12 | Investments in associates |
a) | Information in associates of the Company and the Company´s ownership: |
Tellus Brasil Participações S.A. |
Novvi Limited Liability Company |
Janus Brasil Participações S.A. |
Radar Propriedades Agricolas S.A |
Radar II Propriedades Agricolas S.A |
Other investments |
Total | ||||||||||||||||||||||
Shares issued by the associate |
65,957,282 | 620,000 | 1,907,000 | 1,735,703 | 81,440,221 | | ||||||||||||||||||||||
Shares held by Cosan |
33,638,214 | 200,000 | 934,430 | 531,125 | 24,920,708 | | ||||||||||||||||||||||
Cosan ownership interest |
51 | % | 33.26 | % | 51 | % | 51 | % | 51 | % | | |||||||||||||||||
Economic benefits % |
5 | % | 33.26 | % | 5 | % | 3 | % | 3 | % | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
December 31, 2016 |
97,002 | 18,838 | 33,998 | 55,148 | 30,537 | 51,424 | 286,947 | |||||||||||||||||||||
Interest in earnings (losses) of associates |
2,799 | (4,147 | ) | 588 | 924 | 564 | 598 | 1,326 | ||||||||||||||||||||
Other comprehensive income |
| 326 | 3,182 | 119 | 23 | | 3,650 | |||||||||||||||||||||
Dividends |
(1,307 | ) | | (765 | ) | | (493 | ) | (6,853 | ) | (9,418 | ) | ||||||||||||||||
Capital increase |
| | 1,718 | | | | 1,718 | |||||||||||||||||||||
Other |
| | | | | 2,497 | 2,497 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
June 30, 2017 |
98,494 | 15,017 | 38,721 | 56,191 | 30,631 | 47,666 | 286,720 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest in earnings (losses) of associates January 1, 2016 to June 30, 2016 |
(1,461 | ) | (3,022 | ) | 3,976 | | | (4,651 | ) | (5,158 | ) |
30
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
b) | 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 PauloCOMGÁS |
Rumo S.A. | Logispot Armazéns Agrícolas S.A. |
Other | RadarDiscontinued 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 |
31
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
13 | Investments in joint ventures |
Changes to investments in joint ventures were as follows:
Raízen Combustíveis S.A. |
Raízen Energia S.A. | Total | ||||||||||
Shares issued by the joint venture |
3,303,168,484 | 5,902,595,634 | ||||||||||
Shares held by Cosan |
1,651,584,242 | 2,951,297,817 | ||||||||||
Cosan ownership interest |
50.00 | % | 50.00 | % | ||||||||
|
|
|
|
|||||||||
Interest in earnings of joint ventures June 30, 2016 |
220,905 | 473,033 | 693,938 | |||||||||
December 31, 2016 |
3,190,822 | 5,315,573 | 8,506,395 | |||||||||
Interest in earnings of joint ventures |
264,447 | 31,647 | 296,094 | |||||||||
Other comprehensive losses |
(3,351 | ) | 324,955 | 321,604 | ||||||||
Interest on capital |
(42,000 | ) | | (42,000 | ) | |||||||
Dividends |
(219,000 | ) | (234,242 | ) | (453,242 | ) | ||||||
|
|
|
|
|
|
|||||||
June 30, 2017 |
3,190,918 | 5,437,933 | 8,628,851 | |||||||||
|
|
|
|
|
|
The statement of financial position and statement of profit or loss of the joint ventures are disclosed in Note 6, Segments.
Pursuant to the terms of the Raízen Joint VentureFramework Agreement, Cosan is responsible for certain legal proceedings that existed prior to the formation of Raízen, net of judicial deposits as of April 1, 2011, as well as tax installments under the REFIS (tax amnesty and refinancing program), recorded in Other taxes payable. Additionally, Cosan granted access to Raízen a credit line (stand-by facility) in the amount of US$ 350,000 thousand, which was unused at June 30, 2017.
32
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
14 | Property, plant and equipment |
Land, buildings and improvements |
Machinery, equipment and facilities |
Railcars and locomotives |
Permanent railways |
Construction in progress |
Other | Total | ||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
At December 31, 2016 |
1,043,437 | 716,310 | 5,270,469 | 4,474,856 | 708,580 | 326,361 | 12,540,013 | |||||||||||||||||||||
Additions |
| | 12,366 | 3,729 | 930,683 | 3,792 | 950,570 | |||||||||||||||||||||
Disposals |
(2,239 | ) | (1,926 | ) | | | | (34,814 | ) | (38,979 | ) | |||||||||||||||||
Transfers |
9,771 | 312,777 | 543,623 | 279,030 | (964,719 | ) | (185,115 | ) | (4,633 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At June 30, 2017 |
1,050,969 | 1,027,161 | 5,826,458 | 4,757,615 | 674,544 | 110,224 | 13,446,971 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Depreciation |
||||||||||||||||||||||||||||
At December 31, 2016 |
(255,893 | ) | (287,745 | ) | (742,297 | ) | (542,228 | ) | | 14,598 | (1,813,565 | ) | ||||||||||||||||
Additions |
(19,148 | ) | (36,804 | ) | (242,805 | ) | (194,787 | ) | | (35,001 | ) | (528,545 | ) | |||||||||||||||
Disposals |
234 | 471 | | | | 21,784 | 22,489 | |||||||||||||||||||||
Transfers |
(702 | ) | (856 | ) | 13,492 | (12,635 | ) | | (1,883 | ) | (2,584 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At June 30, 2017 |
(275,509 | ) | (324,934 | ) | (971,610 | ) | (749,650 | ) | | (502 | ) | (2,322,205 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At December 31, 2016 |
787,544 | 428,565 | 4,528,172 | 3,932,628 | 708,580 | 340,959 | 10,726,448 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At June 30, 2017 |
775,460 | 702,227 | 4,854,848 | 4,007,965 | 674,544 | 109,722 | 11,124,766 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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).
34
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 concessionCOMGÁS(i) |
Concession term | 8,174,515 | 8,240,521 | |||||||||
Concession rightsRumo(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.
35
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 | |||||||||||||||
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 |
36
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 Companys 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$) |
12,192,615 | 12,474,129 | ||||||
Dollar (USD)(i) |
8,113,434 | 5,646,136 | ||||||
Pound (GBP) |
193,694 | 218,232 | ||||||
|
|
|
|
|||||
20,499,743 | 18,338,497 | |||||||
|
|
|
|
(i) | At June 30, 2017, all dated debts denominated in US Dollars have currency risk protection through derivatives (Note 27). |
Below are the movements that occurred for the six-month period ended June 30, 2017.
37
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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.
38
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
Operating leases
At June 30, 2017, the future minimum lease payments under non-cancellable leases are as follows:
June 30, 2017 | December 31, 2016 |
|||||||||||||||||||
Total future minimum payments | ||||||||||||||||||||
Less than one year |
Between one and five years |
More than five years |
Total | Total | ||||||||||||||||
Assets |
11,202 | 29,478 | 8,135 | 48,815 | 53,171 |
The rentals are recognized as expenses (Note 25) on a straight-line basis over the life of the respective agreement.
18 | Concessions payable |
Concessions payable | Judicial deposits | |||||||||||||||
June 30, 2017 |
December 31, 2016 |
June 30, 2017 |
December 31, 2016 |
|||||||||||||
Payables |
||||||||||||||||
Rumo Malha Sul |
68,246 | 73,707 | | | ||||||||||||
Rumo Malha Paulista |
49,551 | 52,979 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
117,797 | 126,686 | | | |||||||||||||
Court Discussion |
||||||||||||||||
Rumo Malha Paulista |
1,448,672 | 1,345,722 | 119,694 | 118,820 | ||||||||||||
Rumo Malha Oeste |
1,215,972 | 1,135,398 | 20,137 | 19,464 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
2,664,644 | 2,481,120 | 139,831 | 138,284 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
2,782,441 | 2,607,806 | 139,831 | 138,284 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current |
26,987 | 27,662 | ||||||||||||||
|
|
|
|
|||||||||||||
Non-current |
2,755,454 | 2,580,144 | ||||||||||||||
|
|
|
|
39
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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 programRefis |
215,163 | 215,565 | ||||||
ICMS State VAT |
122,904 | 84,700 | ||||||
COFINSRevenue tax |
66,221 | 54,208 | ||||||
PISRevenue tax |
14,020 | 11,337 | ||||||
INSSSocial 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 | ||||||
|
|
|
|
40
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. |
41
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 combinationProperty, 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 combinationOther 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 combinationIntangible 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 taxAssets |
1,662,340 | 1,490,002 | ||||||||||||||||||
Deferred income taxLiabilities |
(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. |
42
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
22 | Provision for legal proceedings |
Provision for legal proceedings |
Judicial deposits | |||||||||||||||
June 30, 2017 |
December 31, 2016 |
June 30, 2017 |
December 31, 2016 |
|||||||||||||
Tax |
500,606 | 479,532 | 378,071 | 376,454 | ||||||||||||
Civil, regulatory and environmental |
316,489 | 344,048 | 178,153 | 173,884 | ||||||||||||
Labor |
440,392 | 444,984 | 184,344 | 164,346 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,257,487 | 1,268,564 | 740,568 | 714,684 | |||||||||||||
|
|
|
|
|
|
|
|
Changes in provision for legal proceedings:
Tax | Civil, regulatory and environmental |
Labor | Total | |||||||||||||
December 31, 2016 |
479,532 | 344,048 | 444,984 | 1,268,564 | ||||||||||||
Accruals |
8,362 | 9,004 | 61,129 | 78,495 | ||||||||||||
Disposal / Reversals |
(9,017 | ) | (30,985 | ) | (73,901 | ) | (113,903 | ) | ||||||||
Indexation and interest charges(i) |
21,729 | (5,578 | ) | 8,180 | 24,331 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
June 30, 2017 |
500,606 | 316,489 | 440,392 | 1,257,487 | ||||||||||||
|
|
|
|
|
|
|
|
The Companys debts with legal proceedings are secured by assets, cash deposit, bank guarantee or insurance guarantee.
(i) | It is included interest reversal. |
Tax claims
a) | Judicial claims deemed to be probable losses, fully accrued |
June 30, 2017 | December 31, 2016 | |||||||
Compensation with FINSOCIAL |
275,572 | 269,275 | ||||||
State VATICMS credits |
93,583 | 84,778 | ||||||
INSSSocial security |
65,476 | 63,103 | ||||||
PIS and COFINS |
11,408 | 2,449 | ||||||
IPIExcise tax creditNT |
1,190 | 1,155 | ||||||
Federal income taxes |
329 | 329 | ||||||
Other |
53,048 | 58,443 | ||||||
|
|
|
|
|||||
500,606 | 479,532 | |||||||
|
|
|
|
43
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
b) | Judicial claims deemed as possible losses, and therefore not accrued |
June 30, 2017 | December 31, 2016 | |||||||
ICMSState 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 COFINSRevenue taxes |
848,550 | 850,063 | ||||||
IRRFWithholding tax |
892,207 | 861,531 | ||||||
INSSSocial security and other |
583,008 | 615,403 | ||||||
IPIExcise tax creditNT |
516,371 | 512,209 | ||||||
Goodwill Rumo |
500,155 | 483,723 | ||||||
Penalties related to tax positions |
416,150 | 397,441 | ||||||
Compensation with IPIIN 67/98 |
130,663 | 128,456 | ||||||
MP 470Tax 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: |
a. | Alleged lack of payment of ICMS on railroad services for export; |
b. | Improper ICMS credit due to error in the book entry of values higher than those found in the Fiscal Books; |
c. | 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
a) | 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. |
44
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
b) | Judicial claims deemed as possible losses, and therefore not accrued |
The main civil and labor lawsuits, for which the unfavorable outcome is considered possible, are as follows:
June 30, 2017 | December 31, 2016 | |||||||
Civil |
2,765,273 | 2,831,407 | ||||||
Labor |
295,758 | 1,089,119 | ||||||
Regulatory |
525,326 | 397,414 | ||||||
Environmental |
377,290 | 351,915 | ||||||
|
|
|
|
|||||
3,963,647 | 4,669,855 | |||||||
|
|
|
|
23 | Shareholders equity |
a) | Share capital |
At June 30, 2017, Cosan Limiteds share capital is composed of the following:
ShareholdersCommon shares |
Class A and / or BDRs |
% | Class B1 shares |
% | ||||||||||||
Group |
14,514,418 | 8.32 | 96,332,044 | 100.00 | ||||||||||||
Skagen AS |
16,220,419 | 9.30 | | | ||||||||||||
M&G Investment Management Limited |
6,056,705 | 3.47 | | | ||||||||||||
Eastspring Investments (Singapore) Limited |
2,715,398 | 1.56 | | | ||||||||||||
Free Float |
128,851,899 | 73.90 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shares outstanding |
168,358,839 | 96.56 | 96,332,044 | 100.00 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Treasury shares |
5,996,502 | 3.44 | | | ||||||||||||
Total |
174,355,341 | 100.00 | 96,332,044 | 100.00 | ||||||||||||
|
|
|
|
|
|
|
|
b) | Treasury shares |
The Company holds 5,996,502 Class A treasury shares as of June 30, 2017 and December 31, 2016 with a market value of U.S.6.41 per share at June 30, 2017 (U.S.7.51 per share at December 31, 2016).
45
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, except earnings per share)
c) | 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 | ||||||||||
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 | ) |
46
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 subsidiarys stock option plan |
| (484 | ) | (838 | ) | (1,296 | ) | |||||||||
Dilutive effect of subsidiarys stock option planDiscontinued 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$0.5238 |
The non-controlling interests of the indirect subsidiary Brado have the right to exercise a liquidity option provided for in the shareholders agreement signed on August 5, 2013. This option would exchange all Brado shares held by such minority shareholders by shares of ALL. The exchange ratio shall take into account the economic value for both Brado and ALL shares. At the Companys exclusive discretion, an equivalent cash payment is also possible.
For the six month period ended on At June 30, 2017, 6,212,000 share options were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive.
47
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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 | ) | |||||||||
|
|
|
|
|
|
|
|
48
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 | ) | ||||||||
|
|
|
|
|
|
|
|
49
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 Companys 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 | ||||||
|
|
|
|
50
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 installmentsREFIS |
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 Companys 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 | ) | ||||||||||||
|
|
|
|
51
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 Companys 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 Companys treasury department in accordance with the Companys 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 counterpartys failure to make payments. |
52
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 Companys 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 Companys 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 | 12 years | 35 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 Companys 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.
53
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.
54
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, its 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. |
55
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.
56
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 Companys 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.
57
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 10Share-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 dateR$(i) |
|||||||||||||||||||||||||
August 18, 2011 (A) |
1 to 7 | 12.39 | 31.44 | 4,825,000 | (3,193,000 | ) | 1,237,000 | 22.80 | 24.02 | 6.80 | ||||||||||||||||||||||||
August 18, 2011 (B) |
1 to 12 | 12.39 | 30.32 | 5,000,000 | (2,000,000 | ) | 3,000,000 | 22.80 | 24.02 | 8.15 | ||||||||||||||||||||||||
December 12, 2012 (C) |
1 to 7 | 8.78 | 31.44 | 700,000 | (48,000 | ) | 652,000 | 38.89 | 42.08 | 10.10 | ||||||||||||||||||||||||
April 24, 2013 |
5 to 7 | 13.35 | 27.33 | 970,000 | | 860,000 | 45.22 | 48.23 | 17.95 | |||||||||||||||||||||||||
April 25, 2014 |
5 to 7 | 12.43 | 29.85 | 960,000 | | 945,000 | 39.02 | 39.24 | 15.67 | |||||||||||||||||||||||||
August 31, 2015 |
5 to 7 | 14.18 | 33.09 | 759,000 | | 674,000 | 19.96 | 19.50 | 7.67 | |||||||||||||||||||||||||
April 27, 2017 |
5 | 15.00 | 32.75 | 274,000 | | 274,000 | 38.15 | | 32.11 | |||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||
13,488,000 | (5,241,000 | ) | 7,642,000 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
(i) | The fair value of the employee share options has been measured using the Black-Scholes formula. |
58
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, 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 priceR$ |
|||||||
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.
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 10Share-based Payment. Given the characteristics of the Plan, the fair value is equivalent to the value of the share on the grant date (R$ 6.10).
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.
***
59
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 SummaryCosan Pro forma¹ |
2Q17 | 2Q16 | Chg.% | 1Q17 | Chg.% | |||||||||||||||
BRL mln |
(Apr-Jun) | (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 Raízens 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 teams managerial capacity and focus on operational excellence. Rumos 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
1
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. Cosans 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. Raízens production remains focused on maximizing sugar productionthe 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.
2
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):
Rumos 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 companys 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 Rumos 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, Rumos 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 Equivalent3 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 Margin4 (BRL/cbm) |
89 | 97 | -8% | 111 | -20% | |||||||||||||||
Adjusted EBIT4 (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 EBITDA5 (BRL mln) |
804.4 | 835 | -4% | |||||||||
Adjusted EBIT5/TRS sold (BRL/ton) |
119.8 | 139 | -14% |
Note 5: Excludes non-recurring effects
3
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 EBITDA6 (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 |
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Operating Ratio |
71% | 76% | -6,6% | |||||||||
Diesel Comsuption (Liters 000 TKB) |
4,4 | 4,8 | -8,3% | |||||||||
North Operation |
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Grains from Rondonópolis (MT) to Port of Santos (SP) |
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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 |
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Grains from terminals in North of Paraná to Port of Paranaguá (PR) and São Francisco do Sul (SC) |
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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% |
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 |
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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 | 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 |
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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 | 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 | ) |
5
COSAN LIMITED | Earnings Release 2nd Quarter of the Fiscal Year of 2017 |
Loans and Financing
In June 30, 2017, Cosan Limiteds (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 Corporates 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 |
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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 | ||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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(147.9 | ) | (132.6 | ) | (30.1 | ) | (310.6 | ) | 307.0 | (6.8 | ) | (10.4 | ) | (479.6 | ) | (48.8 | ) | (538.7 | ) | |||||||||||||||||||||
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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 | ||||||||||||||||||||||||||
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Noncash items |
98.6 | 24.9 | 186.3 | 309.7 | 220.5 | (75.7 | ) | 454.5 | 320.4 | 23.0 | 797.9 | |||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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Obligations due to preferred shareholders of subsidiaries |
| | 1,531.2 | 1,531.2 | | | 1,531.2 | | | 1,531.2 | ||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||
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6
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 |
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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 | ||||||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||||
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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 | ) | ||||||||||||||||||||||||||||||||
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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 | ) | ||||||||||||||||||||||||||||||||
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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 | ) | |||||||||||||||||||||||||||||||
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Dividends received |
| | 299.3 | | 299.3 | | (296.8 | ) | 2.6 | | 2.6 | 1.3 | 235.2 | (235.2 | ) | 3.9 | ||||||||||||||||||||||||||||||||||||||||
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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 | ) | ||||||||||||||||||||||||||||||||||||
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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 | ) | ||||||||||||||||||||||||||||||||||||||
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Dividends paid |
| | (686.4 | ) | | (686.4 | ) | (305.3 | ) | 296.8 | (695.0 | ) | | (695.0 | ) | (0.6 | ) | (73.9 | ) | 235.2 | (534.4 | ) | ||||||||||||||||||||||||||||||||||
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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 | |||||||||||||||||||||||||||||||||||||||||
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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 | ) | ||||||||||||||||||||||||||||||||||
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7
COSAN LIMITED | Earnings Release 2nd Quarter of the Fiscal Year of 2017 |
Financial Statements
Cosan LimitedAccounting
Indicators |
2Q17 | 2Q16 | Chg.% | 1Q17 | Chg.% | 6M17 | 6M16 | Chg.% | ||||||||||||||||||||||||
BRL mln |
(Apr-Jun) | (Apr-Jun) | 2Q17/2Q16 | (Jan-Mar) | 2Q17/1Q17 | (Jan-Jun) | (Jan-Jun) | 6M17/6M16 | ||||||||||||||||||||||||
EBITDA |
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 |
8
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) | (Apr-Jun) | 2Q17/2Q16 | (Jan-Mar) | 2Q17/1Q17 | (Jan-Jun) | (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 |
9
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
COSAN LIMITED | ||
By: | /s/ Marcelo Eduardo Martins | |
Name: Marcelo Eduardo Martins Title: Chief Financial Officer |