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 November 2017
Commission File Number: 1-33659
COSAN LIMITED
(Translation of registrants name into English)
Av. Brigadeiro Faria Lima, 4100, 16th floor
São Paulo, SP 04538-132 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
Consolidated interim financial statements as of
September 30, 2017
Cosan Limited
Consolidated interim financial statements
1 | ||||
2 | ||||
Consolidated statements of profit or loss and other comprehensive income |
4 | |||
6 | ||||
8 | ||||
10 |
Report on Review of Interim Financial Information
To the Board of Directors and Shareholders of
Cosan Limited
Bermuda
Introduction
We have reviewed the accompanying consolidated interim financial information of Cosan Limited (Company) contained in the Quarterly Information FormITR for the quarter ended September 30, 2017, which comprises the statement of financial position as of September 30, 2017, and the respective statements of profit and loss and comprehensive income (loss) for the three and nine-month periods then ended and changes in equity and cash flows for the nine-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, November 13, 2017
KPMG Auditores Independentes
CRC 2SP014428/O-6
Rogério Hernandez Garcia
Contador CRC 1SP213431/O-5
1
Consolidated statements of financial position
(In thousands of Brazilian Reais - R$)
Note | September 30, 2017 | December 31, 2016 | ||||||||||
Assets |
||||||||||||
Cash and cash equivalents |
7 | 5,801,811 | 4,499,588 | |||||||||
Marketable securities |
8 | 2,043,625 | 1,291,580 | |||||||||
Trade receivables |
9 | 1,206,074 | 1,130,624 | |||||||||
Derivative financial instruments |
27 | 275,160 | 20,654 | |||||||||
Inventories |
614,102 | 630,752 | ||||||||||
Receivables from related parties |
11 | 66,760 | 58,517 | |||||||||
Income tax receivable |
186,948 | 364,980 | ||||||||||
Other current tax receivable |
10 | 281,238 | 178,856 | |||||||||
Dividends receivable |
6,559 | 144,160 | ||||||||||
Other current assets |
242,300 | 449,298 | ||||||||||
|
|
|
|
|||||||||
Total current assets |
10,724,577 | 8,769,009 | ||||||||||
Trade receivables |
9 | 45,855 | 54,806 | |||||||||
Restricted cash |
8 | 225,695 | 200,999 | |||||||||
Deferred tax assets |
21 | 1,591,713 | 1,490,002 | |||||||||
Receivables from related parties |
11 | 150,618 | 183,740 | |||||||||
Income tax receivable |
248,958 | 121,376 | ||||||||||
Other non-current tax receivable |
10 | 800,967 | 739,849 | |||||||||
Judicial deposits |
22 | 757,583 | 714,684 | |||||||||
Derivative financial instruments |
27 | 767,005 | 730,426 | |||||||||
Other non-current assets |
911,696 | 835,730 | ||||||||||
Investments in associates |
12 | 287,345 | 286,947 | |||||||||
Investments in joint ventures |
13 | 8,695,007 | 8,506,395 | |||||||||
Property, plant and equipment |
14 | 11,330,005 | 10,726,448 | |||||||||
Intangible assets and goodwill |
15 | 16,848,508 | 17,109,439 | |||||||||
|
|
|
|
|||||||||
Total non-current assets |
42,660,955 | 41,700,841 | ||||||||||
|
|
|
|
|||||||||
Total assets |
53,385,532 | 50,469,850 | ||||||||||
|
|
|
|
The accompanying notes are an integral part of these consolidated interim financial statements
2
Cosan Limited
Consolidated statements of financial position
(In thousands of Brazilian Reais - R$)
Note | September 30, 2017 | December 31, 2016 | ||||||||||
Liabilities |
||||||||||||
Loans, borrowings and debentures |
16 | 3,182,679 | 2,404,009 | |||||||||
Leases |
17 | 286,849 | 472,632 | |||||||||
Real estate credit certificates |
100,350 | 105,422 | ||||||||||
Derivative financial instruments |
27 | 9,504 | 40,526 | |||||||||
Trade payables |
19 | 2,189,246 | 2,032,542 | |||||||||
Employee benefits payable |
267,503 | 238,159 | ||||||||||
Income tax payables |
38,118 | 83,113 | ||||||||||
Other taxes payable |
20 | 278,049 | 261,169 | |||||||||
Concessions payables |
18 | 26,955 | 27,662 | |||||||||
Dividends payable |
26,818 | 93,500 | ||||||||||
Payables to related parties |
11 | 316,922 | 237,081 | |||||||||
Deferred revenue |
12,775 | 14,167 | ||||||||||
Other financial liabilities |
330,602 | 203,303 | ||||||||||
Other current liabilities |
400,044 | 415,782 | ||||||||||
|
|
|
|
|||||||||
Total current liabilities |
7,466,414 | 6,629,067 | ||||||||||
|
|
|
|
|||||||||
Loans, borrowings and debentures |
16 | 18,133,743 | 15,934,488 | |||||||||
Leases |
17 | 727,402 | 924,911 | |||||||||
Real estate credit certificates |
15,472 | 90,323 | ||||||||||
Preferred shareholders payable in subsidiaries |
1,555,517 | 1,769,427 | ||||||||||
Derivative financial instruments |
27 | 261,275 | 255,318 | |||||||||
Trade payables |
19 | | 568 | |||||||||
Other taxes payable |
20 | 162,837 | 153,776 | |||||||||
Income tax payables |
13,749 | | ||||||||||
Provision for legal proceedings |
22 | 1,248,738 | 1,268,564 | |||||||||
Concessions payables |
18 | 2,835,348 | 2,580,144 | |||||||||
Post-employment benefits |
28 | 460,609 | 441,480 | |||||||||
Deferred tax liabilities |
21 | 3,677,400 | 3,550,565 | |||||||||
Deferred revenue |
58,546 | 62,207 | ||||||||||
Provision for uncovered liability of associates |
12 | 6,139 | | |||||||||
Other non-current liabilities |
605,040 | 799,263 | ||||||||||
|
|
|
|
|||||||||
Total non-current liabilities |
29,761,815 | 27,831,034 | ||||||||||
|
|
|
|
|||||||||
Total liabilities |
37,228,229 | 34,460,101 | ||||||||||
|
|
|
|
|||||||||
Shareholders equity |
23 | |||||||||||
Share capital |
5,328 | 5,328 | ||||||||||
Additional paid-in capital |
3,924,608 | 4,051,591 | ||||||||||
Accumulated other comprehensive loss |
(297,508 | ) | (480,454 | ) | ||||||||
Retained earnings |
2,855,521 | 2,695,998 | ||||||||||
|
|
|
|
|||||||||
Equity attributable to: |
||||||||||||
Owners of the Company |
6,487,949 | 6,272,463 | ||||||||||
Non-controlling interests |
12 | 9,669,354 | 9,737,286 | |||||||||
|
|
|
|
|||||||||
Total shareholders equity |
16,157,303 | 16,009,749 | ||||||||||
|
|
|
|
|||||||||
Total shareholders equity and liabilities |
53,385,532 | 50,469,850 | ||||||||||
|
|
|
|
The accompanying notes are an integral part of these consolidated interim financial statements
3
Consolidated statements of profit or loss and other comprehensive income
For the three and nine month period ended September 30, 2017 and 2016
(In thousands of Brazilian Reais R$, except earnings per share)
Note | July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 (Restated) |
January 1, 2016 to September 30, 2016 (Restated) |
||||||||||||||||
Net sales |
3,711,023 | 9,865,262 | 3,272,803 | 9,732,259 | ||||||||||||||||
Cost of sales |
(2,405,635 | ) | (6,567,249 | ) | (2,036,006 | ) | (6,097,797 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Gross profit |
1,305,388 | 3,298,013 | 1,236,797 | 3,634,462 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Selling expenses |
(255,269 | ) | (794,287 | ) | (265,564 | ) | (760,199 | ) | ||||||||||||
General and administrative expenses |
(215,948 | ) | (626,231 | ) | (231,196 | ) | (729,258 | ) | ||||||||||||
Other expenses, net |
25 | (30,510 | ) | (94,269 | ) | (16,902 | ) | (83,220 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses |
(501,727 | ) | (1,514,787 | ) | (513,662 | ) | (1,572,677 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income before interest in earnings of investees and finance results |
803,661 | 1,783,226 | 723,135 | 2,061,785 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Interest in earnings of associates |
12 | 5,658 | 6,984 | 8,393 | 3,235 | |||||||||||||||
Interest in earnings of joint ventures |
13 | 410,178 | 706,272 | 404,245 | 1,098,183 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Interest in earnings of investees |
415,836 | 713,256 | 412,638 | 1,101,418 | ||||||||||||||||
Finance expense |
(841,177 | ) | (2,606,547 | ) | (1,142,850 | ) | (2,867,121 | ) | ||||||||||||
Finance income |
177,290 | 695,061 | 263,408 | 834,976 | ||||||||||||||||
Foreign exchange, net |
293,593 | 99,860 | (47,689 | ) | 1,011,866 | |||||||||||||||
Derivatives |
(152,484 | ) | (14,026 | ) | 156,206 | (1,317,265 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Finance results, net |
26 | (522,778 | ) | (1,825,652 | ) | (770,925 | ) | (2,337,544 | ) | |||||||||||
Profit before taxes |
696,719 | 670,830 | 364,848 | 825,659 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Income tax expenses |
21 | |||||||||||||||||||
Current |
(96,976 | ) | (138,315 | ) | (2,593 | ) | (216,540 | ) | ||||||||||||
Deferred |
(51,917 | ) | (90,387 | ) | (66,490 | ) | 67,151 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(148,893 | ) | (228,702 | ) | (69,083 | ) | (149,389 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Profit from continuing operations |
547,826 | 442,128 | 295,765 | 676,270 | ||||||||||||||||
Profit from discontinued operation, net of tax |
| | 18,312 | 58,860 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Profit for the period |
547,826 | 442,128 | 314,077 | 735,130 | ||||||||||||||||
|
|
|
|
|
|
|
|
4
Cosan Limited
Consolidated statements of profit or loss and other comprehensive income
For the three and nine month period ended September 30, 2017 and 2016
(In thousands of Brazilian Reais R$, except earnings per share)
Other comprehensive income Items that will never be reclassified to profit or loss |
||||||||||||||||||||
Financial instrumentscommon transactions |
| 9,000 | | 6,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
| 9,000 | | 6,000 | |||||||||||||||||
Items that are or may subsequently be reclassified to profit or loss: |
||||||||||||||||||||
Foreign currency translation effect |
19,676 | 3,811 | (4,009 | ) | 141,946 | |||||||||||||||
(Loss) gain on cash flow hedge in joint ventures |
(50,067 | ) | 272,136 | (34,006 | ) | (174,743 | ) | |||||||||||||
Changes in fair value of available for sale securities |
48 | 3,371 | 1,501 | 391 | ||||||||||||||||
Taxes |
| | (1,541 | ) | 342 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
(30,343 | ) | 279,318 | (38,055 | ) | (32,064 | ) | ||||||||||||||
Total other comprehensive income, net of tax |
(30,343 | ) | 288,318 | (38,055 | ) | (26,064 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive incomeContinued operation |
517,483 | 730,446 | 276,022 | 709,066 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Comprehensive incomeDiscontinued operation |
| | 398 | 201 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total comprehensive income |
517,483 | 730,446 | 276,420 | 709,267 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Profit attributable to: |
||||||||||||||||||||
Owners of the Parent |
248,110 | 224,444 | 157,151 | 312,729 | ||||||||||||||||
Non-controlling interests |
299,716 | 217,684 | 156,926 | 422,401 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
547,826 | 442,128 | 314,077 | 735,130 | |||||||||||||||||
Total comprehensive income attributable to: |
||||||||||||||||||||
Owners of the Company |
234,989 | 407,390 | 129,230 | 320,311 | ||||||||||||||||
Non-controlling interests |
282,494 | 323,056 | 147,190 | 388,956 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
517,483 | 730,446 | 276,420 | 709,267 | |||||||||||||||||
Basic earnings per share from: |
24 | |||||||||||||||||||
Continuing operations |
R$ | 0.9367 | R$ | 0.8478 | R$ | 0.5782 | R$ | 1.1230 | ||||||||||||
Discontinuing operations |
| | R$ | 0.0155 | R$ | 0.0585 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
R$ | 0.9367 | R$ | 0.8478 | R$ | 0.5937 | R$ | 1.1815 | |||||||||||||
Diluted earnings per share from: |
24 | |||||||||||||||||||
Continuing operations |
R$ | 0.8294 | R$ | 0.7426 | R$ | 0.5153 | R$ | 1.0554 | ||||||||||||
Discontinuing operations |
| | R$ | 0.0155 | R$ | 0.0583 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
R$ | 0.8294 | R$ | 0.7426 | R$ | 0.5308 | R$ | 1.1137 |
The accompanying notes are an integral part of these consolidated interim financial statements
5
Consolidated statements of changes in equity
For the nine month period ended September 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, 2017 |
5,328 | 4,051,591 | (480,454 | ) | 2,695,998 | 6,272,463 | 9,737,286 | 16,009,749 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net profit for the period |
| | | 224,444 | 224,444 | 217,684 | 442,128 | |||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||
Gain on cash flow hedge in joint ventures |
| | 169,237 | | 169,237 | 102,899 | 272,136 | |||||||||||||||||||||
Foreign currency translation effects |
| | 6,014 | | 6,014 | (2,203 | ) | 3,811 | ||||||||||||||||||||
Financial instrumentscommon transactions |
| | 5,598 | | 5,598 | 3,402 | 9,000 | |||||||||||||||||||||
Change in fair value of available for sale securities |
| | 2,097 | | 2,097 | 1,274 | 3,371 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total comprehensive income for the period |
| | 182,946 | 224,444 | 407,390 | 323,056 | 730,446 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Contributions by and distributions to owners of the Company: |
||||||||||||||||||||||||||||
Capital increase in subsidiary |
| | | | | 2,815 | 2,815 | |||||||||||||||||||||
Dividendsnon-controlling interests |
| (13,815 | ) | | | (13,815 | ) | 13,815 | | |||||||||||||||||||
Share options exercisedSubsidiaries |
| 21,933 | | | 21,933 | 13,097 | 35,030 | |||||||||||||||||||||
Dividends |
| | | (64,921 | ) | (64,921 | ) | (294,158 | ) | (359,079 | ) | |||||||||||||||||
Share-based payment transactions |
| 17,346 | | | 17,346 | 5,216 | 22,562 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total contributions by and distributions to owners of the Company |
| 25,464 | | (64,921 | ) | (39,457 | ) | (259,215 | ) | (298,672 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Transactions with owners of the Company |
||||||||||||||||||||||||||||
Change of shareholding interest in subsidiary |
| (152,447 | ) | | | (152,447 | ) | (131,773 | ) | (284,220 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
5,328 | 3,924,608 | (297,508 | ) | 2,855,521 | 6,487,949 | 9,669,354 | 16,157,303 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these consolidated interim financial statements
6
Cosan Limited
Consolidated statements of changes in equity
For the nine month period ended September 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 |
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) |
| | | 312,729 | 312,729 | 422,401 | 735,130 | |||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||
Loss on cash flow hedge in joint ventures |
| | (108,393 | ) | | (108,393 | ) | (65,807 | ) | (174,200 | ) | |||||||||||||||||
Foreign currency translation effects |
| | 112,249 | | 112,249 | 29,697 | 141,946 | |||||||||||||||||||||
Financial instrumentscommon transactions |
| | 3,751 | | 3,751 | 2,249 | 6,000 | |||||||||||||||||||||
Change in fair value of available for sale securities |
| | (25 | ) | | (25 | ) | 416 | 391 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total comprehensive income for the period |
| | 7,582 | 312,729 | 320,311 | 388,956 | 709,267 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Contributions by and distributions to owners of the Company: |
||||||||||||||||||||||||||||
Share options exercisedSubsidiaries |
| 10,917 | | | 10,917 | 6,268 | 17,185 | |||||||||||||||||||||
Dividendsnon-controlling interests |
| (7,091 | ) | | | (7,091 | ) | 7,091 | | |||||||||||||||||||
Dividends |
| | | (86,470 | ) | (86,470 | ) | (687,799 | ) | (774,269 | ) | |||||||||||||||||
Share-based payment transactions |
| 4,742 | | | 4,742 | 4,101 | 8,843 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total contributions by and distributions to owners of the Company |
| 8,568 | | (86,470 | ) | (77,902 | ) | (670,339 | ) | (748,241 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Transactions with owners of the Company |
||||||||||||||||||||||||||||
Change of shareholding interest in subsidiary |
| 37,553 | | | 37,553 | 1,710,109 | 1,747,662 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Transactions with owners of the Company |
| 37,553 | | | 37,553 | 1,710,109 | 1,747,662 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2016 (Restated) |
5,328 | 4,052,683 | (470,625 | ) | 2,606,294 | 6,193,680 | 11,704,258 | 17,897,938 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these consolidated interim financial statements
7
Consolidated statements of cash flows
For the nine month period ended September 30, 2017 and 2016
(In thousands of Brazilian Reais - R$)
Note | September 30, 2017 | September 31, 2016 (Restated) |
||||||||||
Cash flows from operating activities |
||||||||||||
Profit before taxes |
670,830 | 825,659 | ||||||||||
Adjustments for: |
||||||||||||
Depreciation and amortization |
1,343,593 | 1,103,936 | ||||||||||
Lease and concession |
143,277 | 148,449 | ||||||||||
Interest in earnings of associates |
12 | (6,984 | ) | (3,235 | ) | |||||||
Interest in earnings of joint ventures |
13 | (706,272 | ) | (1,098,183 | ) | |||||||
Losses on disposals of assets |
33,841 | 12,347 | ||||||||||
Share-based payments |
10,929 | 8,843 | ||||||||||
Legal proceedings provision |
70,020 | 79,431 | ||||||||||
Indexation charges, interest and exchange, net |
1,938,691 | 2,558,071 | ||||||||||
Provisions for employee benefits |
108,505 | 75,770 | ||||||||||
Allowance for doubtful accounts |
23,381 | 13,546 | ||||||||||
Deferred revenue |
(12,735 | ) | (13,574 | ) | ||||||||
Other |
(22,191 | ) | (123,301 | ) | ||||||||
|
|
|
|
|||||||||
3,594,885 | 3,587,759 | |||||||||||
Changes in: |
||||||||||||
Trade receivables |
(142,457 | ) | (77,551 | ) | ||||||||
Inventories |
13,674 | (46,070 | ) | |||||||||
Recoverable taxes |
(110,782 | ) | 190,280 | |||||||||
Related parties |
48,458 | 13,322 | ||||||||||
Trade payables |
69,611 | (71,390 | ) | |||||||||
Other financial liabilities |
60,530 | (49,327 | ) | |||||||||
Employee benefits |
(89,069 | ) | (90,094 | ) | ||||||||
Provision for legal proceedings |
(59,906 | ) | (58,224 | ) | ||||||||
Judicial deposits |
(30,438 | ) | (14,361 | ) | ||||||||
Post-employment benefits |
(20,120 | ) | (20,744 | ) | ||||||||
Income tax and other tax |
(94,985 | ) | (83,328 | ) | ||||||||
Discontinued operation |
| 14,309 | ||||||||||
Concessions payable |
(84,039 | ) | (80,714 | ) | ||||||||
Other assets and liabilities, net |
9,172 | (207,127 | ) | |||||||||
|
|
|
|
|||||||||
(430,351 | ) | (581,019 | ) | |||||||||
|
|
|
|
|||||||||
Net cash generated by operating activities |
3,164,534 | 3,006,740 | ||||||||||
|
|
|
|
|||||||||
Cash flows from investing activities |
||||||||||||
Capital contribution in associates |
(3,967 | ) | (14,333 | ) | ||||||||
Non-controlling interest acquisition |
| (54,122 | ) | |||||||||
Marketable securities |
(594,602 | ) | (876,444 | ) | ||||||||
Restricted cash |
(24,696 | ) | 64,700 | |||||||||
Dividends received from associates |
7,629 | 10,392 | ||||||||||
Dividends received from joint ventures |
902,210 | 658,392 | ||||||||||
Discontinued operation |
| (5,393 | ) | |||||||||
Put option exercised paid |
| (186,052 | ) | |||||||||
Acquisition of property, plant and equipment, intangible assets and investments |
(1,698,159 | ) | (1,596,174 | ) | ||||||||
Related parties |
| 11,338 | ||||||||||
Cash received on sale of fixed assets, and intangible assets |
8,097 | | ||||||||||
|
|
|
|
|||||||||
Net cash used in investing activities |
(1,403,488 | ) | (1,987,696 | ) | ||||||||
|
|
|
|
8
Cosan Limited
Consolidated statements of cash flows
For the nine month period ended September 30, 2017 and 2016
(In thousands of Brazilian Reais - R$)
Cash flows from financing activities |
||||||||||||
Loans and borrowings and debentures raised |
16 | 4,305,339 | 5,933,587 | |||||||||
Amortization of principal on loans, borrowings and debentures |
16 | (1,742,219 | ) | (6,218,311 | ) | |||||||
Payment of interest on loans, borrowings and debentures |
16 | (1,147,271 | ) | (1,104,575 | ) | |||||||
Derivative financial instruments |
(291,891 | ) | (248,663 | ) | ||||||||
Payment of principal on financing leases |
(290,881 | ) | (322,455 | ) | ||||||||
Payment of interest on financing leases |
(231,351 | ) | (266,173 | ) | ||||||||
Real estate credit certificates |
(97,334 | ) | (95,739 | ) | ||||||||
Proceeds from issuing shares |
1,895 | 1,979,894 | ||||||||||
Non-controlling interest subscription |
20,375 | 28,764 | ||||||||||
Dividends paid |
(689,656 | ) | (968,778 | ) | ||||||||
Acquisition of non-controlling interest |
(285,972 | ) | | |||||||||
Payments to redeem entitys shares |
(79,447 | ) | | |||||||||
Share options exercisedsubsidiaries |
34,500 | 17,185 | ||||||||||
|
|
|
|
|||||||||
Net cash used in financing activities |
(493,913 | ) | (1,265,264 | ) | ||||||||
|
|
|
|
|||||||||
Increase (decrease) in cash and cash equivalents |
1,267,133 | (246,220 | ) | |||||||||
|
|
|
|
|||||||||
Cash and cash equivalents at beginning of the period |
4,499,588 | 3,505,824 | ||||||||||
|
|
|
|
|||||||||
Effect of exchange rate fluctuations on cash held |
35,090 | (101,708 | ) | |||||||||
|
|
|
|
|||||||||
Cash and cash equivalents at end of the period |
5,801,811 | 3,157,896 | ||||||||||
|
|
|
|
|||||||||
Supplemental cash flow information |
||||||||||||
Income taxes paid |
37,080 | 51,062 |
The accompanying notes are an integral part of these consolidated interim financial statements
9
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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 (B3) (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 62.45% and 72.40% 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. (CLE) 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 Commas brand and corporate activities (Moove); and (iv) Other investments, in addition to the corporate structures of the Company (Cosan Corporate).
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.
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 November 10, 2017.
10
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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:
September 30, 2017 |
December 31, 2016 |
|||||||
Directly owned subsidiaries |
||||||||
Cosan Logística S.A. |
72.40 | % | 72.42 | % | ||||
Cosan S.A. Indústria e Comércio |
62.45 | % | 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 Produtos 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 | % |
11
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
September 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 | % | ||||
Rumo 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. |
28.33 | % | 28.22 | % | ||||
Boswells S.A. |
28.47 | % | 28.37 | % | ||||
Brado Holding S.A. |
28.47 | % | 28.37 | % | ||||
ALL Serviços Ltda. |
28.47 | % | 28.37 | % | ||||
ALL Argentina S.A. |
28.47 | % | 25.81 | % | ||||
Paranaguá S.A. |
28.47 | % | 28.32 | % | ||||
ALL Rail Management Ltda. |
14.24 | % | 14.19 | % | ||||
ALL Armazéns Gerais Ltda. |
28.47 | % | 28.37 | % | ||||
Portofer Ltda. |
28.47 | % | 28.37 | % | ||||
Brado Logística e Participações S.A. |
17.71 | % | 17.65 | % | ||||
Brado Logística S.A. |
17.71 | % | 17.65 | % | ||||
ALL Mesopotâmica S.A. |
20.09 | % | 20.02 | % | ||||
ALL Central S.A. |
20.94 | % | 20.87 | % | ||||
PGT S.A. |
28.47 | % | 28.37 | % |
(i) | As of September 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 Comgás. |
(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. |
Management has concluded that there are no material uncertainties that cast doubt on the continuity of the subsidiaries. Although they had a combined amount of uncovered liabilities of R$ 101,363 (Note 12) as of September 30, 2017, no events or conditions were identified that individually or collectively could raise significant doubts related to their ability to maintain their operational continuity. The subsidiaries have the financial support of the Company.
12
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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 |
This standard combines, enhances and replaces specific guidance on recognizing revenue with a single standard. It defines a new five-step model to recognize revenue from customer contracts. The Company has undertaken a review of the main types of commercial arrangements used with customers under this model and has tentatively concluded that the application of IFRS 15 will not have a material impact on the consolidated results or financial position. The effects identified so far are as follows
(i) | Recognition of incremental costs to obtain a contract as an intangible asset; and |
(ii) | Presentation of revenue from sales of lubricants segregated from services rendered, previously disclosed in other income items in note 6Operating segment. |
This standard is mandatory for the accounting period beginning on January 1, 2018. The Company is planning to apply the standard retrospectively, utilizing the practical expedient to not restate contracts that begin and end within the same annual accounting period.
IFRS | 9Financial instruments |
The standard addresses the accounting principles for the financial reporting of financial assets and financial liabilities, including classification, measurement, impairment, derecognition and hedge accounting. It will be mandatory for the accounting period beginning on January 1, 2018.
In order to measure the consequences of this new standard, the Group has engaged a review of the business model corresponding to the different portfolios of financial assets and of the characteristics of these financial assets, such as equity instruments and instruments whose cash flows are solely payments of principal and interest (SPPI). This review will also support the designation of equity instruments at fair value through other comprehensive income when appropriate as per the business objective.
There is no expected impact on the Company accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss attributable to changes in its liquidity risk, and the Company does not have any such liabilities.
The impact of the new impairment model is also under review. This analysis requires the identification of the credit risk associated with the counterparties and, considering that the majority of Companys financial assets are trade receivables, integrates as well some statistical data reflecting the actual past experience of occurred loss for default.
In addition, the Company is reviewing the definition of a hedge relationship in accordance with risk management activities and policies.
The Company plans to apply the standard retrospectively, using the practical file with cumulative effect of the initial application.
13
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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.
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.
14
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
5 | Changes adopted |
The changes below were applied for the first time in 2016 and did not result in a significant impact on the Companys annual consolidated financial statements or in the interim financial statements.
Correction of immaterial errors Tax installments
During the year of 2016, the Company identified an error in the accounting record of tax installment liabilities, related to others federal taxes than income tax, referring to prior years.
Management concluded that the effect of the correction of error had no material impact on the Companys interim financial statements for the three and nine months periods ended September 30, 2016.
The impacts of the restatement for the three and nine months periods ended September 30, 2016 are as follows:
15
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
July 1, 2016 to September 30, 2016 | January 1, 2016 to September 30, 2016 | |||||||||||||||||||||||
As issued | Tax installment |
Restated | As issued | Tax installment |
Restated | |||||||||||||||||||
Net sales |
3,272,803 | | 3,272,803 | 9,732,259 | | 9,732,259 | ||||||||||||||||||
Cost of sales |
(2,036,006 | ) | | (2,036,006 | ) | (6,097,797 | ) | | (6,097,797 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross profit |
1,236,797 | | 1,236,797 | 3,634,462 | | 3,634,462 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expense |
(513,662 | ) | | (513,662 | ) | (1,572,677 | ) | | (1,572,677 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income before interest in earnings of investees and finance results |
723,135 | | 723,135 | 2,061,785 | | 2,061,785 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest in earnings of associates and joint ventures |
412,638 | | 412,638 | 1,101,418 | | 1,101,418 | ||||||||||||||||||
Finance results |
(768,387 | ) | (2,538 | ) | (770,925 | ) | (2,329,930 | ) | (7,614 | ) | (2,337,544 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit before taxes |
367,386 | (2,538 | ) | 364,848 | 833,273 | (7,614 | ) | 825,659 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income tax expense |
(69,946 | ) | 863 | (69,083 | ) | (151,978 | ) | 2,589 | (149,389 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit from continuing operations |
297,440 | (1,675 | ) | 295,765 | 681,295 | (5,025 | ) | 676,270 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit from discontinued operations, net of tax |
18,312 | | 18,312 | 58,860 | | 58,860 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit for the period |
315,752 | (1,675 | ) | 314,077 | 740,155 | (5,025 | ) | 735,130 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income attributable to: |
||||||||||||||||||||||||
Owners of the Parent |
158,193 | (1,042 | ) | 157,151 | 315,865 | (3,136 | ) | 312,729 | ||||||||||||||||
Non-controlling interests |
157,559 | (633 | ) | 156,926 | 424,290 | (1,889 | ) | 422,401 |
16
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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 Deconsolidated effects 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:
17
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
July 1, 2017 to September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
Reported segments | Reconciliation | Additional information | ||||||||||||||||||||||||||||||||||||||||||
Raízen Energia |
Raízen Combustíveis |
Comgás | Moove | Logistics | Cosan Corporate |
Deconsolidated effects IFRS 11 |
Segment eliminations / adjustments |
Total consolidated |
Cosan S.A | Cosan Logística |
||||||||||||||||||||||||||||||||||
Statement of income or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Net sales |
3,839,928 | 18,452,780 | 1,535,083 | 534,319 | 1,648,910 | 1,963 | (22,292,708 | ) | (9,252 | ) | 3,711,023 | 2,071,360 | 1,648,910 | |||||||||||||||||||||||||||||||
Domestic market |
1,779,983 | 18,452,780 | 1,535,083 | 412,277 | 1,570,567 | 1,963 | (20,232,763 | ) | (9,252 | ) | 3,510,638 | 1,949,318 | 1,570,567 | |||||||||||||||||||||||||||||||
External market |
2,059,945 | | | 122,042 | 78,343 | | (2,059,945 | ) | | 200,385 | 122,042 | 78,343 | ||||||||||||||||||||||||||||||||
Cost of sales |
(2,933,820 | ) | (17,324,968 | ) | (935,951 | ) | (384,190 | ) | (1,090,373 | ) | (4,373 | ) | 20,258,788 | 9,252 | (2,405,635 | ) | (1,324,509 | ) | (1,090,373 | ) | ||||||||||||||||||||||||
Gross profit |
906,108 | 1,127,812 | 599,132 | 150,129 | 558,537 | (2,410 | ) | (2,033,920 | ) | | 1,305,388 | 746,851 | 558,537 | |||||||||||||||||||||||||||||||
Selling expenses |
(274,891 | ) | (353,871 | ) | (154,513 | ) | (96,630 | ) | (3,983 | ) | (143 | ) | 628,762 | | (255,269 | ) | (251,286 | ) | (3,983 | ) | ||||||||||||||||||||||||
General and administrative expenses |
(164,978 | ) | (113,835 | ) | (88,301 | ) | (23,364 | ) | (60,617 | ) | (43,666 | ) | 278,813 | | (215,948 | ) | (151,540 | ) | (60,617 | ) | ||||||||||||||||||||||||
Other income (expense), net |
1,933 | 70,798 | (11,635 | ) | (3,739 | ) | (2,043 | ) | (13,093 | ) | (72,731 | ) | | (30,510 | ) | (28,422 | ) | (2,043 | ) | |||||||||||||||||||||||||
Finance results |
75,498 | (72,060 | ) | (57,266 | ) | (12,472 | ) | (388,064 | ) | (64,976 | ) | (3,438 | ) | | (522,778 | ) | (10,744 | ) | (388,064 | ) | ||||||||||||||||||||||||
Finance expense |
(234,085 | ) | (63,007 | ) | (132,868 | ) | (9,134 | ) | (492,646 | ) | (206,531 | ) | 297,092 | | (841,179 | ) | (330,543 | ) | (492,646 | ) | ||||||||||||||||||||||||
Finance income |
166,089 | 27,914 | 75,617 | 3,254 | 63,542 | 34,878 | (194,003 | ) | | 177,291 | 191,299 | 63,542 | ||||||||||||||||||||||||||||||||
Foreign exchange losses, net |
23,242 | 98,999 | 41,436 | 3,603 | 110,390 | 138,165 | (122,241 | ) | | 293,594 | 211,634 | 110,390 | ||||||||||||||||||||||||||||||||
Derivatives |
120,252 | (135,966 | ) | (41,451 | ) | (10,195 | ) | (69,350 | ) | (31,488 | ) | 15,714 | | (152,484 | ) | (83,134 | ) | (69,350 | ) | |||||||||||||||||||||||||
Interest in earnings of associates |
(388 | ) | | | (1,459 | ) | 4,043 | 429,909 | 388 | (426,835 | ) | 5,658 | 1,616 | 4,043 | ||||||||||||||||||||||||||||||
Interest in earnings of joint ventures |
| | | | | 410,178 | | | 410,178 | 410,178 | | |||||||||||||||||||||||||||||||||
Income tax expense benefit |
(150,269 | ) | (213,747 | ) | (99,607 | ) | (5,014 | ) | (32,423 | ) | (11,849 | ) | 364,016 | | (148,893 | ) | (147,669 | ) | (32,423 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Profit (loss) from continuing operations |
393,013 | 445,097 | 187,810 | 7,451 | 75,450 | 703,950 | (838,110 | ) | (426,835 | ) | 547,826 | 568,984 | 75,450 | |||||||||||||||||||||||||||||||
Total net income attributable to: |
||||||||||||||||||||||||||||||||||||||||||||
Owners of the Parent |
393,013 | 428,280 | 118,518 | 7,451 | 19,472 | 703,709 | (821,293 | ) | (601,040 | ) | 248,110 | 499,692 | 19,472 | |||||||||||||||||||||||||||||||
Non-controlling interests |
| 16,817 | 69,292 | | 55,978 | 241 | (16,817 | ) | 174,205 | 299,716 | 69,292 | 55,978 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
393,013 | 445,097 | 187,810 | 7,451 | 75,450 | 703,950 | (838,110 | ) | (426,835 | ) | 547,826 | 568,984 | 75,450 | ||||||||||||||||||||||||||||||||
Other selected data: |
||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
582,589 | 170,225 | 118,570 | 19,537 | 304,240 | 3,892 | (752,814 | ) | | 446,239 | 141,999 | 304,240 | ||||||||||||||||||||||||||||||||
EBITDA |
1,050,373 | 901,129 | 463,253 | 44,474 | 800,177 | 784,667 | (1,951,502 | ) | (426,835 | ) | 1,665,736 | 869,396 | 800,177 | |||||||||||||||||||||||||||||||
Additions to PP&E, intangible and biological assets |
414,925 | 171,897 | 73,083 | 15,645 | 473,771 | 4,907 | (586,822 | ) | | 567,406 | 92,383 | 473,771 | ||||||||||||||||||||||||||||||||
Reconciliation of EBITDA: |
||||||||||||||||||||||||||||||||||||||||||||
Profit (loss) for the period |
393,013 | 445,097 | 187,810 | 7,451 | 75,450 | 703,950 | (838,110 | ) | (426,835 | ) | 547,826 | 568,984 | 75,450 | |||||||||||||||||||||||||||||||
Income tax and social contribution |
150,269 | 213,747 | 99,607 | 5,014 | 32,423 | 11,849 | (364,016 | ) | | 148,893 | 147,669 | 32,423 | ||||||||||||||||||||||||||||||||
Finance result, net |
(75,498 | ) | 72,060 | 57,266 | 12,472 | 388,064 | 64,976 | 3,438 | | 522,778 | 10,744 | 388,064 | ||||||||||||||||||||||||||||||||
Depreciation and amortization |
582,589 | 170,225 | 118,570 | 19,537 | 304,240 | 3,892 | (752,814 | ) | | 446,239 | 141,999 | 304,240 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
EBITDA |
1,050,373 | 901,129 | 463,253 | 44,474 | 800,177 | 784,667 | (1,951,502 | ) | (426,835 | ) | 1,665,736 | 869,396 | 800,177 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
January 1, 2017 to September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||
Reported segments | Reconciliation | Additional information | ||||||||||||||||||||||||||||||||||||||||||
Raízen Energia |
Raízen Combustíveis |
Comgás | Moove | Logistics | Cosan Corporate |
Deconsolidated effects IFRS 11 |
Segment eliminations / adjustments |
Total consolidated |
Cosan S.A | Cosan Logística |
||||||||||||||||||||||||||||||||||
Statement of income or loss: |
||||||||||||||||||||||||||||||||||||||||||||
Net sales |
9,859,076 | 53,414,974 | 4,041,014 | 1,492,481 | 4,354,227 | 2,326 | (63,274,050 | ) | (24,786 | ) | 9,865,262 | 5,535,783 | 4,354,227 | |||||||||||||||||||||||||||||||
Domestic market |
5,122,996 | 53,414,974 | 4,041,014 | 1,170,189 | 4,148,518 | 2,326 | (58,537,970 | ) | (24,786 | ) | 9,337,261 | 5,213,491 | 4,148,518 | |||||||||||||||||||||||||||||||
External market |
4,736,080 | | | 322,292 | 205,709 | | (4,736,080 | ) | | 528,001 | 322,292 | 205,709 | ||||||||||||||||||||||||||||||||
Cost of sales |
(8,261,849 | ) | (50,571,173 | ) | (2,522,881 | ) | (1,052,605 | ) | (3,010,559 | ) | (5,990 | ) | 58,833,022 | 24,786 | (6,567,249 | ) | (3,581,438 | ) | (3,010,559 | ) | ||||||||||||||||||||||||
Gross profit |
1,597,227 | 2,843,801 | 1,518,133 | 439,876 | 1,343,668 | (3,664 | ) | (4,441,028 | ) | | 3,298,013 | 1,954,345 | 1,343,668 | |||||||||||||||||||||||||||||||
Selling expenses |
(605,608 | ) | (995,950 | ) | (486,543 | ) | (283,921 | ) | (23,623 | ) | (200 | ) | 1,601,558 | | (794,287 | ) | (770,664 | ) | (23,623 | ) | ||||||||||||||||||||||||
General and administrative expenses |
(452,230 | ) | (332,499 | ) | (246,495 | ) | (64,758 | ) | (189,803 | ) | (125,175 | ) | 784,729 | | (626,231 | ) | (425,667 | ) | (189,803 | ) | ||||||||||||||||||||||||
Other income (expense), net |
(91,094 | ) | 250,073 | (21,523 | ) | (3,906 | ) | (6,445 | ) | (62,395 | ) | (158,979 | ) | | (94,269 | ) | (87,776 | ) | (6,445 | ) | ||||||||||||||||||||||||
Finance results |
112,478 | (315,346 | ) | (139,883 | ) | (36,648 | ) | (1,272,141 | ) | (376,980 | ) | 202,868 | | (1,825,652 | ) | (402,721 | ) | (1,272,141 | ) | |||||||||||||||||||||||||
Finance expense |
(685,640 | ) | (182,876 | ) | (489,187 | ) | (27,519 | ) | (1,440,686 | ) | (649,155 | ) | 868,516 | | (2,606,547 | ) | (1,138,039 | ) | (1,440,686 | ) | ||||||||||||||||||||||||
Finance income |
546,300 | 98,503 | 349,573 | 15,917 | 186,183 | 143,387 | (644,803 | ) | | 695,060 | 615,194 | 186,183 | ||||||||||||||||||||||||||||||||
Foreign exchange losses, net |
(15,935 | ) | 49,092 | 27,771 | (23 | ) | (18,074 | ) | 90,187 | (33,157 | ) | | 99,861 | 134,586 | (18,074 | ) | ||||||||||||||||||||||||||||
Derivatives |
267,753 | (280,065 | ) | (28,040 | ) | (25,023 | ) | 436 | 38,601 | 12,312 | | (14,026 | ) | (14,462 | ) | 436 | ||||||||||||||||||||||||||||
Interest in earnings of associates |
(48,159 | ) | | | (5,606 | ) | 7,200 | 611,154 | 48,159 | (605,764 | ) | 6,984 | (218 | ) | 7,200 | |||||||||||||||||||||||||||||
Interest in earnings of joint ventures |
| | | | | 706,272 | | | 706,272 | 706,272 | | |||||||||||||||||||||||||||||||||
Income tax expense benefit |
(56,558 | ) | (446,914 | ) | (226,136 | ) | (18,527 | ) | (63,056 | ) | 79,017 | 503,472 | | (228,702 | ) | (197,229 | ) | (63,056 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Profit (loss) from continuing operations |
456,056 | 1,003,165 | 397,553 | 26,510 | (204,200 | ) | 828,029 | (1,459,221 | ) | (605,764 | ) | 442,128 | 776,342 | (204,200 | ) | |||||||||||||||||||||||||||||
Total net income attributable to: |
||||||||||||||||||||||||||||||||||||||||||||
Owners of the Company |
456,056 | 958,065 | 250,177 | 26,510 | (60,999 | ) | 821,154 | (1,414,121 | ) | (812,398 | ) | 224,444 | 628,966 | (60,999 | ) | |||||||||||||||||||||||||||||
Non-controlling interests |
| 45,100 | 147,376 | | (143,201 | ) | 6,875 | (45,100 | ) | 206,634 | 217,684 | 147,376 | (143,201 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
456,056 | 1,003,165 | 397,553 | 26,510 | (204,200 | ) | 828,029 | (1,459,221 | ) | (605,764 | ) | 442,128 | 776,342 | (204,200 | ) | ||||||||||||||||||||||||||||||
Other selected data: |
||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
1,536,836 | 482,815 | 379,388 | 59,089 | 892,940 | 12,176 | (2,019,651 | ) | | 1,343,593 | 450,653 | 892,940 | ||||||||||||||||||||||||||||||||
EBITDA |
1,936,972 | 2,248,240 | 1,142,960 | 140,774 | 2,023,937 | 1,138,168 | (4,185,212 | ) | (605,764 | ) | 3,840,075 | 1,826,945 | 2,023,937 | |||||||||||||||||||||||||||||||
Additions to PP&E, intangible and biological assets |
1,715,483 | 591,200 | 244,530 | 22,415 | 1,423,835 | 7,379 | (2,306,683 | ) | | 1,698,159 | 272,362 | 1,423,835 | ||||||||||||||||||||||||||||||||
Reconciliation of EBITDA: |
||||||||||||||||||||||||||||||||||||||||||||
Profit (loss) for the period |
456,056 | 1,003,165 | 397,553 | 26,510 | (204,200 | ) | 828,029 | (1,459,221 | ) | (605,764 | ) | 442,128 | 776,342 | (204,200 | ) | |||||||||||||||||||||||||||||
Income tax and social contribution |
56,558 | 446,914 | 226,136 | 18,527 | 63,056 | (79,017 | ) | (503,472 | ) | | 228,702 | 197,229 | 63,056 | |||||||||||||||||||||||||||||||
Finance result, net |
(112,478 | ) | 315,346 | 139,883 | 36,648 | 1,272,141 | 376,980 | (202,868 | ) | | 1,825,652 | 402,721 | 1,272,141 | |||||||||||||||||||||||||||||||
Depreciation and amortization |
1,536,836 | 482,815 | 379,388 | 59,089 | 892,940 | 12,176 | (2,019,651 | ) | | 1,343,593 | 450,653 | 892,940 | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
EBITDA |
1,936,972 | 2,248,240 | 1,142,960 | 140,774 | 2,023,937 | 1,138,168 | (4,185,212 | ) | (605,764 | ) | 3,840,075 | 1,826,945 | 2,023,937 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
July 1, 2016 to September 30, 2016 (Restated) | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Reported segments | Reconciliation | Additional information |
||||||||||||||||||||||||||||||||||||||||||||||
Raízen Energia |
Raízen Combustíveis |
Comgás | Radar | Moove | Logistics | Cosan Corporate |
Deconsolidated effects IFRS 11 |
Segment eliminations / adjustments |
Total consolidated |
Cosan S.A |
Cosan Logística |
|||||||||||||||||||||||||||||||||||||
Statement of income or loss: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net sales |
3,148,411 | 17,380,867 | 1,379,129 | | 463,582 | 1,437,783 | 48 | (20,529,278 | ) | (7,739 | ) | 3,272,803 | 1,842,759 | 1,437,783 | ||||||||||||||||||||||||||||||||||
Domestic market |
1,274,667 | 17,380,867 | 1,379,129 | | 355,192 | 1,346,120 | 48 | (18,655,534 | ) | (7,739 | ) | 3,072,750 | 1,734,369 | 1,346,120 | ||||||||||||||||||||||||||||||||||
External market |
1,873,744 | | | | 108,390 | 91,663 | | (1,873,744 | ) | | 200,053 | 108,390 | 91,663 | |||||||||||||||||||||||||||||||||||
Cost of sales |
(2,480,327 | ) | (16,425,140 | ) | (763,700 | ) | | (339,903 | ) | (939,011 | ) | (1,131 | ) | 18,905,467 | 7,739 | (2,036,006 | ) | (1,104,735 | ) | (939,011 | ) | |||||||||||||||||||||||||||
Gross profit |
668,084 | 955,727 | 615,429 | | 123,679 | 498,772 | (1,083 | ) | (1,623,811 | ) | | 1,236,797 | 738,024 | 498,772 | ||||||||||||||||||||||||||||||||||
Selling expenses |
(199,486 | ) | (308,615 | ) | (170,632 | ) | | (92,089 | ) | (2,829 | ) | (14 | ) | 508,101 | | (265,564 | ) | (262,735 | ) | (2,829 | ) | |||||||||||||||||||||||||||
General and administrative expenses |
(127,330 | ) | (103,440 | ) | (84,632 | ) | | (17,742 | ) | (87,337 | ) | (41,485 | ) | 230,770 | | (231,196 | ) | (141,080 | ) | (87,337 | ) | |||||||||||||||||||||||||||
Other income (expense), net |
(20,404 | ) | 412,126 | 726 | | 182 | 4,763 | (22,573 | ) | (391,722 | ) | | (16,902 | ) | (21,665 | ) | 4,763 | |||||||||||||||||||||||||||||||
Finance results |
70,315 | (146,529 | ) | (55,670 | ) | | (15,563 | ) | (423,959 | ) | (257,192 | ) | 76,214 | (18,541 | ) | (770,925 | ) | (306,040 | ) | (423,959 | ) | |||||||||||||||||||||||||||
Finance expense |
(223,405 | ) | (152,843 | ) | (190,177 | ) | | (16,161 | ) | (501,198 | ) | (416,773 | ) | 376,248 | (18,541 | ) | (1,142,850 | ) | (592,909 | ) | (501,198 | ) | ||||||||||||||||||||||||||
Finance income |
172,270 | 63,215 | 134,545 | | 1,157 | 76,981 | 50,725 | (235,485 | ) | | 263,408 | 186,353 | 76,981 | |||||||||||||||||||||||||||||||||||
Foreign exchange losses, net |
2,706 | (45,351 | ) | (12,528 | ) | | 1,219 | (2,914 | ) | (33,466 | ) | 42,645 | | (47,689 | ) | (52,518 | ) | (2,914 | ) | |||||||||||||||||||||||||||||
Derivatives |
118,744 | (11,550 | ) | 12,490 | | (1,778 | ) | 3,172 | 142,322 | (107,194 | ) | | 156,206 | 153,034 | 3,172 | |||||||||||||||||||||||||||||||||
Interest in earnings of associates |
(10,305 | ) | (2,830 | ) | | | (1,553 | ) | 2,628 | 310,316 | 13,135 | (302,998 | ) | 8,393 | 6,277 | 2,628 | ||||||||||||||||||||||||||||||||
Interest in earnings of joint ventures |
| | | | | | 404,245 | | | 404,245 | 404,245 | | ||||||||||||||||||||||||||||||||||||
Income tax expense benefit |
(105,808 | ) | (258,783 | ) | (109,356 | ) | | (92 | ) | (51,174 | ) | 85,235 | 364,591 | 6,304 | (69,083 | ) | (24,214 | ) | (51,174 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Profit (loss) from continuing operations |
275,066 | 547,656 | 195,865 | | (3,178 | ) | (59,136 | ) | 477,449 | (822,722 | ) | (315,235 | ) | 295,765 | 392,812 | (59,136 | ) | |||||||||||||||||||||||||||||||
Profit from discontinued operation, net of tax |
| | | 18,312 | | | 6,584 | | (6,584 | ) | 18,312 | 18,312 | | |||||||||||||||||||||||||||||||||||
Total net income attributable to: |
||||||||||||||||||||||||||||||||||||||||||||||||
Owners of the Parent |
274,978 | 534,943 | 122,306 | 6,582 | (3,178 | ) | (17,764 | ) | 484,033 | (809,921 | ) | (434,828 | ) | 157,151 | 325,837 | (17,764 | ) | |||||||||||||||||||||||||||||||
Non-controlling interests |
88 | 12,713 | 73,559 | 11,730 | | (41,372 | ) | | (12,801 | ) | 113,009 | 156,926 | 85,287 | (41,372 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
275,066 | 547,656 | 195,865 | 18,312 | (3,178 | ) | (59,136 | ) | 484,033 | (822,722 | ) | (321,819 | ) | 314,077 | 411,124 | (59,136 | ) | ||||||||||||||||||||||||||||||||
Other selected data: |
||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
477,902 | 145,552 | 134,064 | | 23,748 | 226,384 | 3,423 | (623,454 | ) | | 387,619 | 161,235 | 226,384 | |||||||||||||||||||||||||||||||||||
EBITDA |
788,461 | 1,098,520 | 494,955 | | 36,225 | 642,381 | 652,829 | (1,886,981 | ) | (302,998 | ) | 1,523,392 | 884,301 | 642,381 | ||||||||||||||||||||||||||||||||||
Additions to PP&E, intangible and biological assets |
354,163 | 191,632 | 89,291 | | 11,188 | 440,858 | 5,956 | (545,795 | ) | | 547,293 | 106,435 | 440,858 | |||||||||||||||||||||||||||||||||||
Reconciliation of EBITDA: |
||||||||||||||||||||||||||||||||||||||||||||||||
Profit (loss) for the period |
275,066 | 547,656 | 195,865 | | (3,178 | ) | (59,136 | ) | 477,449 | (822,722 | ) | (315,235 | ) | 295,765 | 392,812 | (59,136 | ) | |||||||||||||||||||||||||||||||
Income tax and social contribution |
105,808 | 258,783 | 109,356 | | 92 | 51,174 | (85,235 | ) | (364,591 | ) | (6,304 | ) | 69,083 | 24,214 | 51,174 | |||||||||||||||||||||||||||||||||
Finance result, net |
(70,315 | ) | 146,529 | 55,670 | | 15,563 | 423,959 | 257,192 | (76,214 | ) | 18,541 | 770,925 | 306,040 | 423,959 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization |
477,902 | 145,552 | 134,064 | | 23,748 | 226,384 | 3,423 | (623,454 | ) | | 387,619 | 161,235 | 226,384 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
EBITDA |
788,461 | 1,098,520 | 494,955 | | 36,225 | 642,381 | 652,829 | (1,886,981 | ) | (302,998 | ) | 1,523,392 | 884,301 | 642,381 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
20
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
January 1, 2016 to September 30, 2016 (Restated) | ||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||
Reported segments | Reconciliation | Additional information | ||||||||||||||||||||||||||||||||||||||||||||||
Raízen Energia |
Raízen Combustíveis |
Comgás | Radar | Moove | Logistics | Cosan Corporate |
Deconsolidated effects IFRS 11 |
Segment eliminations / adjustments |
Total consolidated |
Cosan S.A |
Cosan Logística |
|||||||||||||||||||||||||||||||||||||
Statement of income or loss: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net sales |
9,657,588 | 50,252,193 | 4,333,163 | | 1,431,697 | 3,999,921 | 425 | (59,909,781 | ) | (32,947 | ) | 9,732,259 | 5,765,284 | 3,999,922 | ||||||||||||||||||||||||||||||||||
Domestic market |
3,955,267 | 50,252,193 | 4,333,163 | | 1,096,072 | 3,804,610 | 425 | (54,207,460 | ) | (32,947 | ) | 9,201,323 | 5,429,659 | 3,804,611 | ||||||||||||||||||||||||||||||||||
External market |
5,702,321 | | | | 335,625 | 195,311 | | (5,702,321 | ) | | 530,936 | 335,625 | 195,311 | |||||||||||||||||||||||||||||||||||
Cost of sales |
(7,364,106 | ) | (47,690,919 | ) | (2,321,714 | ) | | (1,081,183 | ) | (2,717,621 | ) | (10,226 | ) | 55,055,025 | 32,947 | (6,097,797 | ) | (3,413,123 | ) | (2,717,621 | ) | |||||||||||||||||||||||||||
Gross profit |
2,293,482 | 2,561,274 | 2,011,449 | | 350,514 | 1,282,300 | (9,801 | ) | (4,854,756 | ) | | 3,634,462 | 2,352,161 | 1,282,301 | ||||||||||||||||||||||||||||||||||
Selling expenses |
(568,201 | ) | (965,232 | ) | (485,102 | ) | | (271,431 | ) | (3,553 | ) | (113 | ) | 1,533,433 | | (760,199 | ) | (756,647 | ) | | ||||||||||||||||||||||||||||
General and administrative expenses |
(405,951 | ) | (324,245 | ) | (242,585 | ) | | (53,482 | ) | (260,066 | ) | (173,125 | ) | 730,196 | | (729,258 | ) | (417,730 | ) | (263,620 | ) | |||||||||||||||||||||||||||
Other income (expense), net |
16,544 | 610,196 | (1,930 | ) | | 2,037 | (3,033 | ) | (80,294 | ) | (626,740 | ) | | (83,220 | ) | (80,187 | ) | (3,033 | ) | |||||||||||||||||||||||||||||
Finance results |
486,213 | (426,235 | ) | (197,677 | ) | | (59,827 | ) | (1,257,677 | ) | (917,302 | ) | (59,978 | ) | 94,939 | (2,337,544 | ) | (1,018,250 | ) | (1,257,677 | ) | |||||||||||||||||||||||||||
Finance expense |
(697,432 | ) | (208,240 | ) | (564,425 | ) | | (38,841 | ) | (1,448,311 | ) | (910,483 | ) | 905,672 | 94,939 | (2,867,121 | ) | (1,435,305 | ) | (1,448,311 | ) | |||||||||||||||||||||||||||
Finance income |
500,169 | 177,425 | 366,171 | | 2,967 | 212,632 | 253,206 | (677,594 | ) | | 834,976 | 621,960 | 212,632 | |||||||||||||||||||||||||||||||||||
Foreign exchange losses, net |
(57,513 | ) | 736,752 | 230,033 | | 46,567 | 79,144 | 656,122 | (679,239 | ) | | 1,011,866 | 1,018,309 | 79,144 | ||||||||||||||||||||||||||||||||||
Derivatives |
740,989 | (1,132,172 | ) | (229,456 | ) | | (70,520 | ) | (101,142 | ) | (916,147 | ) | 391,183 | | (1,317,265 | ) | (1,223,214 | ) | (101,142 | ) | ||||||||||||||||||||||||||||
Interest in earnings of associates |
(59,080 | ) | (310 | ) | | | (4,575 | ) | 8,751 | 926,981 | 59,390 | (927,922 | ) | 3,235 | (5,515 | ) | 8,751 | |||||||||||||||||||||||||||||||
Interest in earnings of joint ventures |
| | | | | | 1,098,183 | | | 1,098,183 | 1,098,183 | | ||||||||||||||||||||||||||||||||||||
Income tax expense benefit |
(553,720 | ) | (443,006 | ) | (377,118 | ) | | 4,553 | (43,871 | ) | 299,326 | 996,726 | (32,279 | ) | (149,389 | ) | (73,238 | ) | (43,871 | ) | ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Profit (loss) from continuing operations |
1,209,287 | 1,012,442 | 707,037 | | (32,211 | ) | (277,149 | ) | 1,143,855 | (2,221,729 | ) | (865,262 | ) | 676,270 | 1,098,777 | (277,149 | ) | |||||||||||||||||||||||||||||||
Profit from discontinued operation, net of tax |
| | | 58,860 | | | 24,788 | | (24,788 | ) | 58,860 | 58,860 | | |||||||||||||||||||||||||||||||||||
Total net income attributable to: |
||||||||||||||||||||||||||||||||||||||||||||||||
Owners of the Company |
1,209,199 | 977,481 | 436,250 | 24,788 | (32,211 | ) | (76,814 | ) | 1,168,643 | (2,186,680 | ) | (1,207,928 | ) | 312,729 | 852,779 | (76,814 | ) | |||||||||||||||||||||||||||||||
Non-controlling interests |
88 | 34,961 | 270,787 | 34,072 | | (200,335 | ) | | (35,049 | ) | 317,878 | 422,401 | 304,858 | (200,335 | ) | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
1,209,287 | 1,012,442 | 707,037 | 58,860 | (32,211 | ) | (277,149 | ) | 1,168,643 | (2,221,729 | ) | (890,050 | ) | 735,130 | 1,157,637 | (277,149 | ) | ||||||||||||||||||||||||||||||||
Other selected data: |
||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization |
1,662,345 | 457,824 | 374,871 | | 66,334 | 651,817 | 10,914 | (2,120,169 | ) | | 1,103,936 | 452,119 | 651,817 | |||||||||||||||||||||||||||||||||||
EBITDA |
2,939,139 | 2,339,507 | 1,656,703 | | 89,397 | 1,676,216 | 1,772,745 | (5,278,646 | ) | (927,922 | ) | 4,267,139 | 2,642,384 | 1,676,216 | ||||||||||||||||||||||||||||||||||
Additions to PP&E, intangible and biological assets |
1,522,527 | 596,643 | 292,751 | | 29,876 | 1,264,952 | 8,595 | (2,119,170 | ) | | 1,596,174 | 331,222 | 1,264,952 | |||||||||||||||||||||||||||||||||||
Reconciliation of EBITDA: |
||||||||||||||||||||||||||||||||||||||||||||||||
Profit (loss) for the period |
1,209,287 | 1,012,442 | 707,037 | | (32,211 | ) | (277,149 | ) | 1,143,855 | (2,221,729 | ) | (865,262 | ) | 676,270 | 1,098,777 | (277,149 | ) | |||||||||||||||||||||||||||||||
Income tax and social contribution |
553,720 | 443,006 | 377,118 | | (4,553 | ) | 43,871 | (299,326 | ) | (996,726 | ) | 32,279 | 149,389 | 73,238 | 43,871 | |||||||||||||||||||||||||||||||||
Finance result, net |
(486,213 | ) | 426,235 | 197,677 | | 59,827 | 1,257,677 | 917,302 | 59,978 | (94,939 | ) | 2,337,544 | 1,018,250 | 1,257,677 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization |
1,662,345 | 457,824 | 374,871 | | 66,334 | 651,817 | 10,914 | (2,120,169 | ) | | 1,103,936 | 452,119 | 651,817 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
EBITDA |
2,939,139 | 2,339,507 | 1,656,703 | | 89,397 | 1,676,216 | 1,772,745 | (5,278,646 | ) | (927,922 | ) | 4,267,139 | 2,642,384 | 1,676,216 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
September 30, 2017 |
|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||
Reported segments | Reconciliation | Additional information | ||||||||||||||||||||||||||||||||||||||||||
Statement of financial position: |
Raízen Energia |
Raízen Combustíveis |
Comgás | Moove | Logistics | Cosan Corporate |
Deconsolidated effects IFRS 11 |
Segment elimination |
Total consolidated |
Cosan S.A | Cosan Logística |
|||||||||||||||||||||||||||||||||
Cash and cash equivalents |
2,238,194 | 206,143 | 2,141,061 | 132,169 | 189,999 | 3,338,582 | (2,444,337 | ) | | 5,801,811 | 3,720,495 | 189,999 | ||||||||||||||||||||||||||||||||
Marketable securities |
| | 313,503 | 927 | 1,516,869 | 212,326 | | | 2,043,625 | 526,757 | 1,516,869 | |||||||||||||||||||||||||||||||||
Trade receivables |
649,176 | 2,271,337 | 641,128 | 283,656 | 326,417 | 728 | (2,920,513 | ) | | 1,251,929 | 925,512 | 326,417 | ||||||||||||||||||||||||||||||||
Derivative financial instruments |
383,897 | 15,128 | 433,546 | | 39,978 | 568,641 | (399,025 | ) | | 1,042,165 | 1,002,188 | 39,978 | ||||||||||||||||||||||||||||||||
Inventories |
2,593,328 | 1,984,880 | 92,010 | 260,849 | 258,591 | 2,652 | (4,578,208 | ) | | 614,102 | 355,511 | 258,591 | ||||||||||||||||||||||||||||||||
Other financial assets |
757,857 | | | | | | (757,857 | ) | | | 277,586 | | ||||||||||||||||||||||||||||||||
Other current assets |
2,717,880 | 1,620,337 | 84,906 | 115,458 | 416,951 | 256,437 | (4,338,217 | ) | (89,947 | ) | 783,805 | 404,564 | 416,951 | |||||||||||||||||||||||||||||||
Other non-current assets |
3,043,082 | 1,219,038 | 355,579 | 80,161 | 2,749,434 | 1,503,954 | (4,262,120 | ) | (1,898 | ) | 4,687,230 | 1,933,280 | 2,749,434 | |||||||||||||||||||||||||||||||
Investments in associates |
314,948 | | | 13,627 | 42,481 | 11,386,105 | (314,948 | ) | (11,154,868 | ) | 287,345 | 244,864 | 42,481 | |||||||||||||||||||||||||||||||
Investments in joint ventures |
| | | | | 8,695,007 | | | 8,695,007 | 8,695,007 | | |||||||||||||||||||||||||||||||||
Biological assets |
786,566 | | | | | | (786,566 | ) | | | | | ||||||||||||||||||||||||||||||||
Property, plant and equipment |
10,902,109 | 2,337,036 | | 237,114 | 10,945,776 | 147,115 | (13,239,145 | ) | | 11,330,005 | 382,314 | 10,945,776 | ||||||||||||||||||||||||||||||||
Intangible assets and goodwill |
3,681,932 | 4,619,618 | 8,444,333 | 738,762 | 7,659,407 | 6,006 | (8,301,550 | ) | | 16,848,508 | 9,189,055 | 7,659,407 | ||||||||||||||||||||||||||||||||
Loans, borrowings and debentures |
(10,873,300 | ) | (1,012,686 | ) | (3,898,129 | ) | (409,431 | ) | (10,127,207 | ) | (6,881,655 | ) | 11,885,986 | | (21,316,422 | ) | (8,919,607 | ) | (10,127,207 | ) | ||||||||||||||||||||||||
Derivative financial instruments |
(184,425 | ) | (277,705 | ) | | (22,197 | ) | (29,748 | ) | (218,834 | ) | 462,130 | | (270,779 | ) | (241,031 | ) | (29,748 | ) | |||||||||||||||||||||||||
Trade payables |
(1,565,037 | ) | (1,485,747 | ) | (1,413,704 | ) | (281,461 | ) | (488,960 | ) | (5,121 | ) | 3,050,784 | | (2,189,246 | ) | (1,700,274 | ) | (488,960 | ) | ||||||||||||||||||||||||
Real estate credit certificates |
| | | | (115,822 | ) | | | | (115,822 | ) | | (115,822 | ) | ||||||||||||||||||||||||||||||
Employee benefits payable |
(388,531 | ) | (69,419 | ) | (54,701 | ) | (31,350 | ) | (157,624 | ) | (23,828 | ) | 457,950 | | (267,503 | ) | (109,705 | ) | (157,624 | ) | ||||||||||||||||||||||||
Preferred shareholders payable in subsidiaries |
| | | | | (1,555,517 | ) | | | (1,555,517 | ) | (1,555,516 | ) | | ||||||||||||||||||||||||||||||
Lease |
| | | | (1,014,251 | ) | | | | (1,014,251 | ) | | (1,014,251 | ) | ||||||||||||||||||||||||||||||
Other current liabilities |
(1,323,492 | ) | (1,890,172 | ) | (200,869 | ) | (174,708 | ) | (773,239 | ) | (372,593 | ) | 3,213,664 | 91,126 | (1,430,283 | ) | (660,027 | ) | (773,239 | ) | ||||||||||||||||||||||||
Other non-current liabilities |
(1,368,835 | ) | (4,229,282 | ) | (1,677,131 | ) | (217,478 | ) | (5,955,846 | ) | (1,273,090 | ) | 5,598,117 | 55,139 | (9,068,406 | ) | (3,156,079 | ) | (5,955,846 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total assets (net of liabilities) allocated by segment |
12,365,349 | 5,308,506 | 5,261,532 | 726,098 | 5,483,206 | 15,786,915 | (17,673,855 | ) | (11,100,448 | ) | 16,157,303 | 11,314,894 | 5,483,206 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total assets |
28,068,969 | 14,273,517 | 12,506,066 | 1,862,723 | 24,145,903 | 26,117,553 | (42,342,486 | ) | (11,246,713 | ) | 53,385,532 | 27,657,133 | 24,145,903 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Equity attributable to owners of the Company |
12,366,312 | 5,090,385 | 5,261,532 | 726,098 | 1,489,692 | 15,786,436 | (17,456,697 | ) | (16,775,810 | ) | 6,487,949 | 9,436,611 | 1,489,692 | |||||||||||||||||||||||||||||||
Non-controlling interests |
(963 | ) | 218,121 | | | 3,993,514 | 479 | (217,158 | ) | 5,675,362 | 9,669,354 | 1,878,283 | 3,993,514 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total shareholders equity |
12,365,349 | 5,308,506 | 5,261,532 | 726,098 | 5,483,206 | 15,786,915 | (17,673,855 | ) | (11,100,448 | ) | 16,157,303 | 11,314,894 | 5,483,206 |
22
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
December 31, 2016 |
|
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||
Reported segments | Reconciliation | Additional information | ||||||||||||||||||||||||||||||||||||||||||
Statement of financial position: |
Raízen Energia |
Raízen Combustíveis |
Comgás | Moove | Logistics | Cosan Corporate |
Deconsolidated effects IFRS 11 |
Segment elimination |
Total consolidated |
Cosan S.A | Cosan Logística |
|||||||||||||||||||||||||||||||||
Cash and cash equivalents |
2,787,588 | 757,140 | 2,108,253 | 203,855 | 260,542 | 1,926,938 | (3,544,728 | ) | | 4,499,588 | 3,990,930 | 260,542 | ||||||||||||||||||||||||||||||||
Marketable securities |
| | 202,568 | 10,958 | 920,413 | 157,641 | | | 1,291,580 | 371,167 | 920,413 | |||||||||||||||||||||||||||||||||
Trade receivables |
682,813 | 2,518,713 | 513,423 | 240,059 | 431,461 | 487 | (3,201,526 | ) | | 1,185,430 | 753,969 | 431,461 | ||||||||||||||||||||||||||||||||
Derivative financial instruments |
1,243,260 | 178,060 | 437,137 | | 3,669 | 310,274 | (1,421,320 | ) | | 751,080 | 747,411 | 3,669 | ||||||||||||||||||||||||||||||||
Inventories |
2,293,492 | 2,108,825 | 114,745 | 228,941 | 284,579 | 2,487 | (4,402,317 | ) | | 630,752 | 346,173 | 284,579 | ||||||||||||||||||||||||||||||||
Other financial assets |
711,453 | | | | | 70,487 | (711,453 | ) | (70,487 | ) | | 70,487 | | |||||||||||||||||||||||||||||||
Other current assets |
3,030,674 | 1,456,418 | 80,758 | 141,972 | 422,458 | 658,550 | (4,487,092 | ) | (107,927 | ) | 1,195,811 | 793,861 | 422,458 | |||||||||||||||||||||||||||||||
Other non-current assets |
2,852,423 | 1,089,809 | 307,306 | 26,036 | 2,549,631 | 1,436,632 | (3,942,232 | ) | (33,225 | ) | 4,286,380 | 1,761,857 | 2,549,631 | |||||||||||||||||||||||||||||||
Investments in associates |
393,159 | | | 19,400 | 46,847 | 11,153,390 | (393,159 | ) | (10,932,690 | ) | 286,947 | 240,100 | 46,847 | |||||||||||||||||||||||||||||||
Investments in joint ventures |
| | | | | 8,506,395 | | | 8,506,395 | 8,506,395 | | |||||||||||||||||||||||||||||||||
Biological assets |
1,119,623 | | | | | | (1,119,623 | ) | | | | | ||||||||||||||||||||||||||||||||
Investment property |
10,525,166 | 2,379,438 | | 238,346 | 10,337,119 | 150,983 | (12,904,604 | ) | | 10,726,448 | 389,329 | 10,337,119 | ||||||||||||||||||||||||||||||||
Intangible assets and goodwill |
3,224,303 | 4,532,282 | 8,550,984 | 770,118 | 7,781,289 | 7,048 | (7,756,585 | ) | | 17,109,439 | 9,328,150 | 7,781,289 | ||||||||||||||||||||||||||||||||
Loans, borrowings and debentures |
(11,556,950 | ) | (1,043,995 | ) | (4,070,076 | ) | (471,661 | ) | (8,523,175 | ) | (5,273,585 | ) | 12,600,945 | | (18,338,497 | ) | (9,138,129 | ) | (8,523,175 | ) | ||||||||||||||||||||||||
Derivative financial instruments |
(789,193 | ) | (648,070 | ) | | (35,155 | ) | (12,303 | ) | (248,386 | ) | 1,437,263 | | (295,844 | ) | (283,541 | ) | (12,303 | ) | |||||||||||||||||||||||||
Trade payables |
(1,147,089 | ) | (1,148,013 | ) | (1,226,634 | ) | (232,690 | ) | (565,539 | ) | (8,247 | ) | 2,295,102 | | (2,033,110 | ) | (1,467,570 | ) | (565,539 | ) | ||||||||||||||||||||||||
Real estate credit certificates |
| | | | (195,745 | ) | | | | (195,745 | ) | | (195,745 | ) | ||||||||||||||||||||||||||||||
Employee benefits payable |
(314,989 | ) | (92,573 | ) | (63,904 | ) | (30,187 | ) | (117,149 | ) | (26,919 | ) | 407,562 | | (238,159 | ) | (121,009 | ) | (117,149 | ) | ||||||||||||||||||||||||
Preferred shareholders payable in subsidiaries |
| | | | | (1,769,427 | ) | | | (1,769,427 | ) | (1,769,427 | ) | | ||||||||||||||||||||||||||||||
Leases |
| | | | (1,397,543 | ) | | | | (1,397,543 | ) | | (1,397,543 | ) | ||||||||||||||||||||||||||||||
Other current liabilities |
(1,507,193 | ) | (2,245,227 | ) | (211,900 | ) | (168,995 | ) | (663,083 | ) | (407,835 | ) | 3,752,420 | 116,036 | (1,335,777 | ) | (662,235 | ) | (663,083 | ) | ||||||||||||||||||||||||
Other non-current liabilities |
(1,367,686 | ) | (4,714,035 | ) | (1,549,441 | ) | (132,414 | ) | (5,881,195 | ) | (1,408,841 | ) | 6,081,721 | 115,892 | (8,855,999 | ) | (3,065,579 | ) | (5,881,195 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total assets (net of liabilities) allocated by segment |
12,180,854 | 5,128,772 | 5,193,219 | 808,583 | 5,682,276 | 15,238,072 | (17,309,626 | ) | (10,912,401 | ) | 16,009,749 | 10,792,339 | 5,682,276 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total assets |
28,863,954 | 15,020,685 | 12,315,174 | 1,879,685 | 23,038,008 | 24,381,312 | (43,884,639 | ) | (11,144,329 | ) | 50,469,850 | 27,299,829 | 23,038,008 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Equity attributable to owners of the Company |
12,181,817 | 4,920,333 | 5,193,219 | 808,583 | 1,540,225 | 15,238,072 | (17,102,150 | ) | (16,507,636 | ) | 6,272,463 | 8,965,606 | 1,540,225 | |||||||||||||||||||||||||||||||
Non-controlling interests |
(963 | ) | 208,439 | | | 4,142,051 | | (207,476 | ) | 5,595,235 | 9,737,286 | 1,826,733 | 4,142,051 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Total shareholders equity |
12,180,854 | 5,128,772 | 5,193,219 | 808,583 | 5,682,276 | 15,238,072 | (17,309,626 | ) | (10,912,401 | ) | 16,009,749 | 10,792,339 | 5,682,276 |
23
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Net sales by segment:
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 |
January 1, 2016 to September 30, 2016 |
|||||||||||||
Reported segment |
||||||||||||||||
Raízen Energia |
||||||||||||||||
Ethanol |
1,729,109 | 4,874,368 | 1,400,772 | 4,600,024 | ||||||||||||
Sugar |
1,643,065 | 4,156,307 | 1,443,030 | 4,404,639 | ||||||||||||
Cogeneration |
364,848 | 604,623 | 206,557 | 401,876 | ||||||||||||
Other |
102,906 | 223,778 | 98,052 | 251,049 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
3,839,928 | 9,859,076 | 3,148,411 | 9,657,588 | |||||||||||||
Raízen Combustíveis |
||||||||||||||||
Fuels |
18,452,780 | 53,414,974 | 17,380,867 | 50,252,193 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
18,452,780 | 53,414,974 | 17,380,867 | 50,252,193 | |||||||||||||
Comgás |
||||||||||||||||
Industrial |
961,160 | 2,562,361 | 865,824 | 2,868,654 | ||||||||||||
Residential |
255,855 | 635,758 | 237,425 | 590,679 | ||||||||||||
Thermogeneration |
| | 6,713 | 68,307 | ||||||||||||
Cogeneration |
59,587 | 158,064 | 51,505 | 163,414 | ||||||||||||
Automotive |
57,623 | 163,612 | 53,130 | 151,107 | ||||||||||||
Commercial |
86,308 | 233,293 | 78,325 | 224,626 | ||||||||||||
Construction revenue |
95,996 | 239,110 | 77,582 | 231,869 | ||||||||||||
Other |
18,554 | 48,816 | 8,625 | 34,507 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,535,083 | 4,041,014 | 1,379,129 | 4,333,163 | |||||||||||||
Moove |
||||||||||||||||
Finished goods |
391,934 | 1,088,521 | 404,882 | 1,256,067 | ||||||||||||
Basic oil |
76,191 | 211,649 | 54,725 | 163,558 | ||||||||||||
Other |
66,194 | 192,311 | 3,975 | 12,072 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
534,319 | 1,492,481 | 463,582 | 1,431,697 | |||||||||||||
Logistics |
||||||||||||||||
North operations |
1,197,157 | 3,227,690 | 1,051,377 | 2,945,356 | ||||||||||||
South operations |
387,921 | 957,973 | 322,391 | 849,719 | ||||||||||||
Container operations |
63,832 | 168,564 | 64,015 | 204,846 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,648,910 | 4,354,227 | 1,437,783 | 3,999,921 | |||||||||||||
Reconciliation |
||||||||||||||||
Cosan Corporate |
||||||||||||||||
Other |
1,963 | 2,326 | 48 | 425 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,963 | 2,326 | 48 | 425 | |||||||||||||
IFRS 11Deconsolidated of adjustments/eliminations joint ventures and eliminations |
(22,301,960 | ) | (63,298,836 | ) | (20,537,017 | ) | (59,942,728 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
3,711,023 | 9,865,262 | 3,272,803 | 9,732,259 | ||||||||||||
|
|
|
|
|
|
|
|
24
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
7 | Cash and cash equivalents |
September 30, 2017 |
December 31, 2016 |
|||||||
Cash and bank deposits |
54,777 | 376,029 | ||||||
Savings account |
2,220,032 | 409,333 | ||||||
Financial investments |
3,527,002 | 3,714,226 | ||||||
|
|
|
|
|||||
5,801,811 | 4,499,588 | |||||||
|
|
|
|
Financial investments are composed as follows:
September 30, 2017 |
December 31, 2016 |
|||||||
Investment fund |
||||||||
Repurchase agreements |
2,627,718 | 2,840,760 | ||||||
Bank certificate of depositsCDB |
371,065 | 363,147 | ||||||
Other |
53 | | ||||||
|
|
|
|
|||||
2,998,836 | 3,203,907 | |||||||
Bank investments |
||||||||
Repurchase agreements |
20,593 | 26,719 | ||||||
Bank certificate of depositsCDB |
506,573 | 468,384 | ||||||
Other |
1,000 | 15,216 | ||||||
|
|
|
|
|||||
528,166 | 510,319 | |||||||
|
|
|
|
|||||
3,527,002 | 3,714,226 | |||||||
|
|
|
|
8 | Marketable securities and Restricted cash |
Marketable securities | ||||||||
September 30, 2017 |
December 31, 2016 |
|||||||
Government security (i) |
1,821,421 | 1,004,388 | ||||||
Bank certificate of depositsCDB (ii) |
222,204 | 287,192 | ||||||
|
|
|
|
|||||
2,043,625 | 1,291,580 | |||||||
|
|
|
|
|||||
Restricted cash |
||||||||
September 30, 2017 |
December 31, 2016 |
|||||||
Investments linked to loans |
91,811 | 63,474 | ||||||
Securities pledged as collateral |
131,730 | 137,525 | ||||||
Government bonds |
2,154 | | ||||||
|
|
|
|
|||||
225,695 | 200,999 | |||||||
|
|
|
|
(i) | Sovereign debt securities classified as held-for-trading have stated interest connected to SELIC and mature in two to five years. |
(ii) | Bank certificates of deposits classified as held-for-trading have stated interest rates connected to CDI and mature in two to five years. |
25
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
9 | Trade receivables |
September 30, 2017 |
December 31, 2016 |
|||||||
DomesticBrazilian Reais |
1,302,009 | 1,248,270 | ||||||
ExportForeign currency |
62,936 | 27,446 | ||||||
Allowance for doubtful accounts |
(113,016 | ) | (90,286 | ) | ||||
|
|
|
|
|||||
1,251,929 | 1,185,430 | |||||||
Current |
1,206,074 | 1,130,624 | ||||||
|
|
|
|
|||||
Non-current |
45,855 | 54,806 | ||||||
|
|
|
|
10 | Other current tax receivables |
September 30, 2017 |
December 31, 2016 |
|||||||
ICMSState VAT (ii) |
461,754 | 422,627 | ||||||
ICMS CIAPState VAT (i)/(ii) |
204,443 | 185,707 | ||||||
Tax credit installment |
38,363 | 36,708 | ||||||
PISRevenue tax |
69,845 | 48,220 | ||||||
COFINSRevenue tax |
281,802 | 209,700 | ||||||
Other |
25,998 | 15,743 | ||||||
|
|
|
|
|||||
1,082,205 | 918,705 | |||||||
Current |
281,238 | 178,856 | ||||||
|
|
|
|
|||||
Non-Current |
800,967 | 739,849 | ||||||
|
|
|
|
(i) | ICMS Tax credit arising from acquisition of fixed assets. |
(ii) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
26
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
11 | Related parties |
a) | Receivables from and payables to related parties: |
September 30, 2017 |
December 31, 2016 |
|||||||
Current Asset |
||||||||
Commercial operation |
||||||||
Raízen Energia S.A. |
39,707 | 37,249 | ||||||
Aguassanta Participações S.A. |
| 6,342 | ||||||
Radar Propriedades Agrícolas S.A. |
| 517 | ||||||
Raízen Combustíveis S.A. |
22,859 | 4,206 | ||||||
Other |
4,194 | 531 | ||||||
|
|
|
|
|||||
66,760 | 48,845 | |||||||
Corporate operation / Agreements |
||||||||
Raízen Energia S.A. |
| 9,672 | ||||||
|
|
|
|
|||||
66,760 | 58,517 | |||||||
|
|
|
|
|||||
Non-current assets |
||||||||
Receivables under the framework agreement |
||||||||
Janus Brasil Participações S.A |
30,423 | 28,705 | ||||||
Raízen Energia S.A. |
87,751 | 114,473 | ||||||
|
|
|
|
|||||
118,174 | 143,178 | |||||||
Financial and corporation operations |
||||||||
Rezende Barbosa |
31,444 | 38,944 | ||||||
Other |
1,000 | 1,618 | ||||||
|
|
|
|
|||||
32,444 | 40,562 | |||||||
|
|
|
|
|||||
150,618 | 183,740 | |||||||
|
|
|
|
September 30, 2017 |
December 31, 2016 |
|||||||
Current liabilities |
||||||||
Corporate operations |
||||||||
Raízen Energia S.A. |
182,679 | 160,030 | ||||||
Raízen Combustíveis S.A. |
128,938 | 75,624 | ||||||
Other |
5,305 | 1,427 | ||||||
|
|
|
|
|||||
316,922 | 237,081 |
27
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
b) | Related party transactions: |
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 |
January 1, 2016 to September 30, 2016 |
|||||||||||||
Sales of goods and services |
||||||||||||||||
Raízen Combustíveis S.A |
40,777 | 109,553 | 38,007 | 100,219 | ||||||||||||
Raízen Energia S.A. |
131,503 | 307,563 | 113,211 | 328,531 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
172,280 | 417,116 | 151,218 | 428,750 | |||||||||||||
Purchase of goods / Inputs |
||||||||||||||||
Raízen Energia S.A. (i) |
(866 | ) | (1,158 | ) | (79 | ) | (415 | ) | ||||||||
Raízen Combustíveis S.A. |
(276,155 | ) | (718,445 | ) | (235,843 | ) | (662,894 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(277,021 | ) | (719,603 | ) | (235,922 | ) | (663,309 | ) | |||||||||
Discontinued operation |
||||||||||||||||
Raízen Energia S.A. |
| | 19,179 | 50,664 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
| | 19,179 | 50,664 | |||||||||||||
Shared expense |
||||||||||||||||
Raízen Energia S.A. (i) |
(17,170 | ) | (55,267 | ) | (20,194 | ) | (53,868 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(17,170 | ) | (55,267 | ) | (20,194 | ) | (53,868 | ) | |||||||||
Finance result |
||||||||||||||||
Usina Santa Luiza (i) |
(58 | ) | (320 | ) | (54 | ) | (124 | ) | ||||||||
Raízen Energia S.A. |
1,868 | 5,651 | 501 | 1,495 | ||||||||||||
Other (i) |
(6 | ) | (6 | ) | 3 | | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,804 | 5,325 | 450 | 1,371 |
(i) | The amount of the three and nine months period ended September 30, 2016 was restated between items to improve the statement. |
c) | Officers and directors compensation |
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 |
January 1, 2016 to September 30, 2016 |
|||||||||||||
Short-term benefits to employees and managers (i) |
16,511 | 59,058 | 16,630 | 107,019 | ||||||||||||
Post-employment benefits (i) |
217 | 678 | 151 | 1,485 | ||||||||||||
Other long-term benefits (i) |
358 | 629 | 115 | 194 | ||||||||||||
Benefits from termination of employment contract (i) |
| | 2,367 | 2,367 | ||||||||||||
Share-based payment transactions |
16,380 | 22,562 | 2,947 | 8,843 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
33,466 | 82,927 | 22,210 | 119,908 | |||||||||||||
|
|
|
|
|
|
|
|
(i) | The amount of the three and nine months period ended September 30, 2016 was restated between items to improve the statement. |
28
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
12 | Investments in associates |
a) | Information in associates of the Company and the Companys ownership: |
Shares issued by the associate |
Shares held by Cosan |
Cosan ownership interest |
Economic benefits % |
|||||||||||||||||||||||||||||
Tellus Brasil Participações S.A. |
65,957,282 | 33,638,214 | 51% | 5% | ||||||||||||||||||||||||||||
Novvi Limited Liability Company |
620,002 | 200,000 | 32% | 32% | ||||||||||||||||||||||||||||
Janus Brasil Participações S.A. |
1,907,000 | 934,430 | 51% | 5% | ||||||||||||||||||||||||||||
Radar Propriedades Agrícolas S.A |
1,735,703 | 531,125 | 51% | 3% | ||||||||||||||||||||||||||||
Radar II Propriedades Agrícolas S.A |
81,440,221 | 24,920,708 | 51% | 3% | ||||||||||||||||||||||||||||
Usina Santa Luiza S.A |
28,553,200 | 9,516,782 | 33% | 33% | ||||||||||||||||||||||||||||
January 01, 2017 |
Interest in earnings (losses) of associates |
Other comprehensive income |
Dividends | Capital increase |
Other | September 30, 2017 |
Interest in |
|||||||||||||||||||||||||
Investments in associates |
||||||||||||||||||||||||||||||||
Tellus Brasil Participações S.A. |
97,002 | 3,838 | | (1,307 | ) | | | 99,533 | (160 | ) | ||||||||||||||||||||||
Novvi Limited Liability Company |
18,838 | (5,606 | ) | 38 | | | | 13,270 | (4,575 | ) | ||||||||||||||||||||||
Janus Brasil Participações S.A. |
33,969 | 2,000 | 3,181 | (765 | ) | 1,719 | | 40,104 | 4,808 | |||||||||||||||||||||||
Radar Propriedades Agrícolas S.A |
55,148 | 1,279 | 159 | | | | 56,586 | | ||||||||||||||||||||||||
Radar II Propriedades Agrícolas S.A |
30,537 | 926 | 31 | (493 | ) | | | 31,001 | | |||||||||||||||||||||||
Other (i) |
51,453 | 6,096 | | (11,566 | ) | | 868 | 46,851 | 11,517 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
286,947 | 8,533 | 3,409 | (14,131 | ) | 1,719 | 868 | 287,345 | 11,590 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Investments in associates with negative equity |
||||||||||||||||||||||||||||||||
Usina Santa Luiza S.A (i) |
| (1,549 | ) | | | 1,433 | (6,023 | ) | (6,139 | ) | (8,355 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total of net investments |
286,947 | 6,984 | 3,409 | (14,131 | ) | 3,152 | (5,155 | ) | 281,206 | 3,235 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
29
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
b) | Information in the non-controlling interests in subsidiaries of the Company: |
Shares issued by the associate |
Shares held by non-controlling shareholders |
Non-controlling interest |
||||||||||||||||||||||||||||||||||
Cosan S.A. Indústria e Comércio |
407,904,353 | 152,967,891 | 38% | |||||||||||||||||||||||||||||||||
Cosan Logística S.A. |
368,046,576 | 101,257,374 | 28% | |||||||||||||||||||||||||||||||||
Companhia de Gás de São PauloComgás |
130,038,279 | 47,977,400 | 37% | |||||||||||||||||||||||||||||||||
Rumo S.A. |
1,339,015,898 | 934,838,098 | 70% | |||||||||||||||||||||||||||||||||
Logispot Armazéns Agrícolas S.A. |
2,040,816 | 1,000,000 | 49% | |||||||||||||||||||||||||||||||||
January 01, 2017 |
Interest in earnings (losses) of associates |
Sales or purchase of interests |
Other comprehensive income (losses) |
Dividends | Capital increase |
Other | September 30, 2017 |
Interest in |
||||||||||||||||||||||||||||
Cosan S.A. Indústria e Comércio (i) |
3,343,719 | 223,468 | (153,734 | ) | 103,712 | (143,636 | ) | | 12,454 | 3,385,983 | 343,388 | |||||||||||||||||||||||||
Cosan Logística S.A. (i) |
424,784 | (16,833 | ) | | 164 | | 2,815 | 167 | 411,097 | (25,510 | ) | |||||||||||||||||||||||||
Companhia de Gás de São PauloComgás |
1,826,733 | 147,376 | 27,107 | | (127,094 | ) | | 4,160 | 1,878,282 | 270,787 | ||||||||||||||||||||||||||
Rumo S.A. |
4,105,962 | (142,517 | ) | (5,146 | ) | 1,496 | (4,483 | ) | | 2,795 | 3,958,107 | (199,458 | ) | |||||||||||||||||||||||
Logispot Armazéns Agrícolas S.A. |
36,088 | (684 | ) | | | | | | 35,404 | (877 | ) | |||||||||||||||||||||||||
Outros |
| 6,874 | | | (18,945 | ) | | 12,552 | 481 | | ||||||||||||||||||||||||||
Radar Discontinued operation |
| | | | | | | | 34,071 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total |
9,737,286 | 217,684 | (131,773 | ) | 105,372 | (294,158 | ) | 2,815 | 32,128 | 9,669,354 | 422,401 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
30
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
13 | Investments in joint ventures |
Changes to investments in joint ventures were as follows:
Raízen Combustíveis S.A. |
Raízen Energia S.A. |
Total | ||||||||||
Shares issued by the joint venture |
3,303,168,484 | 5,902,595,634 | ||||||||||
Shares held by Cosan |
1,651,584,242 | 2,951,297,817 | ||||||||||
Cosan ownership interest |
50% | 50% | ||||||||||
|
|
|
|
|||||||||
Interest in earnings of joint ventures September 30, 2016 |
488,223 | 609,960 | 1,098,183 | |||||||||
December 31, 2016 |
3,190,822 | 5,315,573 | 8,506,395 | |||||||||
Interest in earnings of joint ventures |
478,417 | 227,855 | 706,272 | |||||||||
Other comprehensive income |
13,460 | 258,379 | 271,839 | |||||||||
Interest on capital |
(42,000 | ) | | (42,000 | ) | |||||||
Dividends |
(354,000 | ) | (393,499 | ) | (747,499 | ) | ||||||
|
|
|
|
|
|
|||||||
September 30, 2017 |
3,286,699 | 5,408,308 | 8,695,007 | |||||||||
|
|
|
|
|
|
The statement of financial position and statement of profit or loss of the joint ventures are disclosed in Note 6, Segments.
Pursuant to the terms of the Raízen Joint VentureFramework Agreement, Cosan is responsible for certain legal proceedings that existed prior to the formation of Raízen, net of judicial deposits as of April 1, 2011, as well as tax installments under the REFIS (tax amnesty and refinancing program), recorded in Other taxes payable. Additionally, Cosan granted access to Raízen a credit line (stand-by facility) in the amount of US$ 350,000 thousand, which was unused at September 30, 2017.
31
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
14 | Property, plant and equipment |
Land, buildings and improvements |
Machinery, equipment and facilities |
Railcars and locomotives (i) |
Permanent railways (i) |
Construction in progress |
Other | Total | ||||||||||||||||||||||
Cost |
||||||||||||||||||||||||||||
At January 01, 2017 |
1,043,437 | 716,310 | 5,270,469 | 4,474,856 | 708,580 | 326,361 | 12,540,013 | |||||||||||||||||||||
Additions |
46 | | 14,965 | 3,729 | 1,416,294 | 6,648 | 1,441,682 | |||||||||||||||||||||
Disposals |
(2,239 | ) | (2,159 | ) | | (3,695 | ) | | (35,728 | ) | (43,821 | ) | ||||||||||||||||
Transfers |
14,177 | 344,013 | 711,296 | 387,469 | (1,352,065 | ) | (135,735 | ) | (30,845 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
1,055,421 | 1,058,164 | 5,996,730 | 4,862,359 | 772,809 | 161,546 | 13,907,029 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Depreciation |
||||||||||||||||||||||||||||
At January 01, 2017 |
(255,893 | ) | (287,745 | ) | (742,297 | ) | (542,228 | ) | | 14,598 | (1,813,565 | ) | ||||||||||||||||
Additions |
(29,950 | ) | (54,311 | ) | (372,139 | ) | (302,109 | ) | | (53,848 | ) | (812,357 | ) | |||||||||||||||
Disposals |
234 | 471 | | 749 | | 21,925 | 23,379 | |||||||||||||||||||||
Transfers |
(599 | ) | (802 | ) | 40,575 | (12,621 | ) | | (1,034 | ) | 25,519 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
(286,208 | ) | (342,387 | ) | (1,073,861 | ) | (856,209 | ) | | (18,359 | ) | (2,577,024 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At January 01, 2017 |
787,544 | 428,565 | 4,528,172 | 3,932,628 | 708,580 | 340,959 | 10,726,448 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
769,213 | 715,777 | 4,922,869 | 4,006,150 | 772,809 | 143,187 | 11,330,005 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) | Leasehold improvements and finance leases included. |
32
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
15 Intangible assets and goodwill
Goodwill | Concession rights |
Right of way and operating license |
Trademarks | Customer relationships |
Other | Total | ||||||||||||||||||||||
Cost: |
||||||||||||||||||||||||||||
At January 01, 2017 |
715,259 | 16,912,506 | 435,624 | 252,474 | 946,824 | 376,669 | 19,639,356 | |||||||||||||||||||||
Additions |
| 246,357 | | | 45,095 | 27,602 | 319,054 | |||||||||||||||||||||
Disposals |
| (159,620 | ) | | | (11,157 | ) | (4,220 | ) | (174,997 | ) | |||||||||||||||||
Transfers |
| 341,518 | | | (11,695 | ) | (5,068 | ) | 324,755 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
715,259 | 17,340,761 | 435,624 | 252,474 | 969,067 | 394,983 | 20,108,168 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Amortization |
||||||||||||||||||||||||||||
At January 01, 2017 |
| (1,319,980 | ) | (200,876 | ) | (182,616 | ) | (668,695 | ) | (157,750 | ) | (2,529,917 | ) | |||||||||||||||
Additions |
| (318,025 | ) | (62,442 | ) | (17,120 | ) | (97,975 | ) | (36,069 | ) | (531,631 | ) | |||||||||||||||
Disposals |
| 128,148 | | | 7,863 | 4,218 | 140,229 | |||||||||||||||||||||
Transfers |
| (337,991 | ) | | | 720 | (1,070 | ) | (338,341 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
| (1,847,848 | ) | (263,318 | ) | (199,736 | ) | (758,087 | ) | (190,671 | ) | (3,259,660 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At January 01, 2017 |
715,259 | 15,592,526 | 234,748 | 69,858 | 278,129 | 218,919 | 17,109,439 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
At September 30, 2017 |
715,259 | 15,492,913 | 172,306 | 52,738 | 210,980 | 204,312 | 16,848,508 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalization of borrowing costs
Capitalized borrowing costs for the period ended September 30, 2017, amounted to R$ 7,268 (R$ 13,026 for the period ended September 30, 2016). The weighted average interest rate used to capitalize borrowing costs on the balance of concession right, was 9.02% p.a. for the period ended September 30, 2017 (12.55% p.a. for the period ended September 30, 2016).
33
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Intangible assets (excluding goodwill) |
Annual rate of amortization% |
September 30, 2017 |
December 31, 2016 |
|||||||
Gas distribution concessionComgás (i) |
Concession term | 8,177,942 | 8,240,521 | |||||||
Concession rightsRumo (ii) |
Concession term | 7,314,971 | 7,352,005 | |||||||
|
|
|
|
|||||||
15,492,913 | 15,592,526 | |||||||||
Operating license for port terminal (iii) |
4.00 | 172,306 | 234,748 | |||||||
Trademarks |
||||||||||
Mobil |
10.00 | 28,534 | 45,654 | |||||||
Comma |
| 24,204 | 24,204 | |||||||
|
|
|
|
|||||||
52,738 | 69,858 | |||||||||
Relationship with customers: |
||||||||||
Comgás |
30.00 | 181,358 | 233,971 | |||||||
Lubricants |
6.00 | 29,622 | 44,158 | |||||||
|
|
|
|
|||||||
210,980 | 278,129 | |||||||||
Other |
||||||||||
Software license |
20.00 | 156,716 | 146,210 | |||||||
Other |
47,596 | 72,709 | ||||||||
|
|
|
|
|||||||
204,312 | 218,919 | |||||||||
Total |
16,133,249 | 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 S.A, 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 in the year-end. 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 September 30, 2017, no impairment indicators were identified that would trigger the need for an impairment test.
34
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
16 Loans, borrowings and debentures
Interest | ||||||||||||||||||||
Description (i) |
Index | Annual interest at September 30, 2017 |
September 30, 2017 |
December 31, 2016 |
Maturity | |||||||||||||||
Loan and borrowings |
||||||||||||||||||||
BNDES (ii) |
URTJLP | 8.80% | 2,253,640 | 2,663,073 | Jun-29 | |||||||||||||||
Fixed | 5.24% | 1,322,581 | 1,233,476 | Feb-25 | ||||||||||||||||
TJ462 | 9.89% | 527,157 | 650,581 | Oct-18 | ||||||||||||||||
Selic | 10.13% | 236,517 | 271,926 | Oct-20 | ||||||||||||||||
Selic | 10.27% | 61,179 | 41,650 | Jun-23 | ||||||||||||||||
TJLP | 9.05% | 111,674 | 137,739 | Jun-23 | ||||||||||||||||
Selic | 13.65% | 4,314 | 5,277 | Sep-20 | ||||||||||||||||
Fixed | 3.93% | 2,212 | 3,930 | Jan-24 | ||||||||||||||||
IPCA | 10.91% | 3,721 | 3,453 | Nov-21 | ||||||||||||||||
URTJLP | 11.40% | | 17 | Jan-17 | ||||||||||||||||
EIB (ii) |
USD | 3.88% | 146,085 | 170,848 | Jun-20 | |||||||||||||||
USD | 2.94% | 67,982 | 89,899 | Sep-20 | ||||||||||||||||
USD + LIBOR6M | 0.48% | 151,103 | 172,263 | May-21 | ||||||||||||||||
USD + LIBOR6M | 2.62% | 140,056 | 179,952 | Sep-21 | ||||||||||||||||
Foreign loans |
GBP + Libor | 1.91% | 85,170 | | Jul-19 | |||||||||||||||
GBP + Libor | 3.62% | 193,861 | 218,232 | Dec-19 | ||||||||||||||||
NCE |
112% of CDI | 9.16% | 92,293 | 120,069 | Dec-18 | |||||||||||||||
129.62% CDI | 10.68% | 567,657 | 552,576 | Jun-23 | ||||||||||||||||
CDI + 3.50% | 11.92% | 294,854 | 294,516 | Dec-18 | ||||||||||||||||
CDI + 3.47% | 11.89% | 81,272 | 80,486 | Nov-17 | ||||||||||||||||
Perpetual Notes |
US$ | 8.25% | 1,603,965 | 1,650,089 | | |||||||||||||||
Resolution 4131 |
US$ | 2.99% | 72,838 | 133,957 | Oct-20 | |||||||||||||||
US$ | 2.40% | 397,309 | 407,306 | Mar-18 | ||||||||||||||||
US$+ Libor | 4.79% | 57,503 | 32,798 | Nov-17 | ||||||||||||||||
Senior Notes Due 2018 |
Fixed | 9.50% | 164,184 | 168,163 | Mar-18 | |||||||||||||||
Senior Notes Due 2023 |
US$ | 5.00% | 319,527 | 322,062 | Mar-23 | |||||||||||||||
Senior Notes Due 2027 |
US$ | 7.00% | 2,340,137 | 2,304,384 | Jan-27 | |||||||||||||||
Senior Notes Due 2024 |
US$ | 7.38% | 2,381,777 | | Feb-24 | |||||||||||||||
Senior Notes Due 2024 |
Fixed | 5.95% | 1,570,461 | | Sep-24 | |||||||||||||||
FINEP |
Fixed | 5.00% | 92,986 | 109,233 | Nov-22 | |||||||||||||||
Trade banks |
CDI + 4.91% p.a. | 13.45% | 114,545 | 163,815 | Jun-19 | |||||||||||||||
Fixed US$ | 5.49% | 95,072 | 86,140 | Dec-21 | ||||||||||||||||
Working capital |
CDI + 2.80% p.a. | 11.17% | 403,567 | 390,023 | Dec-18 | |||||||||||||||
CDI + 2.95% p.a. | 11.33% | 295,580 | 287,168 | Dec-18 | ||||||||||||||||
CDI + 0.28% p.m. | 12.23% | 6,693 | 9,988 | Jan-18 | ||||||||||||||||
CDI + 0.33% p.m. | 12.50% | 6,695 | | Mar-18 | ||||||||||||||||
120% of CDI | 9.85% | 20,767 | | May-18 | ||||||||||||||||
120% of CDI | 9.92% | 10,222 | | Jul-18 | ||||||||||||||||
120% of CDI | 9.91% | 20,443 | | Jul-18 | ||||||||||||||||
Bank overdrafts |
118% of CDI | 118% of CDI | 16,768 | 22,605 | Oct-17 | |||||||||||||||
Prepayment |
US$+Libor | 3.66% | 9,661 | 55,641 | Apr-18 | |||||||||||||||
FINIMP |
US$+Libor | 3.52% | | 40,798 | Jun-17 | |||||||||||||||
|
|
|
|
|||||||||||||||||
16,344,027 | 13,074,133 |
35
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Interest | ||||||||||||||||||||
Description (i) |
Index | Annual interest at September 30, 2017 |
September 30, 2017 |
December 31, 2016 |
Maturity | |||||||||||||||
Debentures |
||||||||||||||||||||
Non-convertible debentures (ii) |
CDI + 2.05% p.a. | 10.36% | 153,186 | 154,284 | Apr-18 | |||||||||||||||
CDI + 1.30% p.a. | 11.57% | | 300,183 | Oct-17 | ||||||||||||||||
CDI + 3.50% p.a. | 11.92% | 2,423,240 | 2,347,271 | Jun-23 | ||||||||||||||||
IPCA | 8.38% | 553,181 | 529,465 | Dec-25 | ||||||||||||||||
108 % of CDI | 8.82% | 167,867 | 350,852 | Jul-18 | ||||||||||||||||
IPCA | 9.71% | 1,420,119 | 1,284,982 | Sep-20 | ||||||||||||||||
Fixed | 13.13% | 169,036 | 163,862 | Oct-20 | ||||||||||||||||
CDI | 9.11% | 85,766 | 133,465 | Sep-19 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
4,972,395 | 5,264,364 | |||||||||||||||||||
Total |
21,316,422 | 18,338,497 | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Current |
3,182,679 | 2.404.009 | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Non-current |
18,133,743 | 15.934.488 | ||||||||||||||||||
|
|
|
|
(i) | The Companys debts with national and international development agencies have bank guarantees. Guarantees are contracted with first-tier banks guaranteeing the total amount of debt. |
(ii) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
Senior Notes 2024
On September 20, 2017, the Company, issued a foreign debt, Senior Notes Due 2024 (2024 Notes) in the total amount of US$ 500,000 thousands maturing on September 2024 with coupon of 5.95% p.a., paid semiannually.
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.
Working Capital
On July 17, 2017, Cosan Biomassa, an indirect wholly-owned subsidiary of the Company, raised a two loans in the amount of R$ 10,000 and R$ 20,000 from Santander and Banco ABC respectively, with maturity on July 17, 2018 and interest of 120.85% and 120.75% of CDI respectively.
Foreign loans
On August 4, 2017, Comma Oil, an indirect wholly-owned subsidiary of the Company, raised a total loan of £ 20 million from Bank of America Merrill Lynch with maturity on July 26, 2019 and interest at libor + 1.50 % paid semiannually.
36
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
The carrying amounts of loans, borrowings and debentures are denominated in the following currencies:
September 30, 2017 | December 31, 2016 | |||||||
Reais (R$) |
11,683,915 | 12,474,129 | ||||||
Dollar (USD) (i) |
9,353,476 | 5,646,136 | ||||||
Pound (GBP) |
279,031 | 218,232 | ||||||
|
|
|
|
|||||
21,316,422 | 18,338,497 | |||||||
|
|
|
|
(i) | At September 30, 2017, all dated debts denominated in US Dollars, in the subsidiaries, have currency risk protection through derivatives (Note 27). |
Below are the movements that occurred for the nine-month period ended September 30, 2017.
At January 01, 2017 |
18,338,497 | |||
|
|
|||
Raised |
4,305,339 | |||
Payment |
(2,889,490 | ) | ||
Interest, exchange rate and fair value |
1,562,076 | |||
|
|
|||
At September 30, 2017 |
21,316,422 | |||
|
|
Available credit line
As of September 30, 2017, the subsidiary Cosan Logística had available credit lines from BNDES, which were not used, in the total amount of R$ 287,170 (R$ 541,639 on December 31, 2016).
As of September 30, 2017, the subsidiary Cosan S.A had available credit lines from three different Brazilian financial institution, which were not used, in the total amount of R$ 501,000.
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 September 30, 2017, the Company and its subsidiaries were in compliance with all debt financial covenants.
37
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
17 Leases
Finance lease liabilities
Finance lease liabilities are payable as follows:
September 30, 2017 | December 31, 2016 | |||||||||||||||||||
Less than one year |
Between one and five years |
More than five years |
Total | Total | ||||||||||||||||
Future minimum payments |
||||||||||||||||||||
lease payments |
380,181 | 694,481 | 271,525 | 1,346,187 | 1,837,441 | |||||||||||||||
Rolling stock |
352,970 | 610,838 | 184,603 | 1,148,411 | 1,616,719 | |||||||||||||||
Terminal |
23,400 | 80,022 | 86,922 | 190,344 | 207,950 | |||||||||||||||
Other |
3,811 | 3,621 | | 7,432 | 12,772 | |||||||||||||||
Interests |
(93,332 | ) | (184,951 | ) | (53,653 | ) | (331,936 | ) | (439,898 | ) | ||||||||||
Rolling stock |
(78,961 | ) | (147,758 | ) | (36,180 | ) | (262,899 | ) | (358,158 | ) | ||||||||||
Terminal |
(13,834 | ) | (36,835 | ) | (17,473 | ) | (68,142 | ) | (79,611 | ) | ||||||||||
Other |
(537 | ) | (358 | ) | | (895 | ) | (2,129 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Present value of minimum lease payments |
286,849 | 509,530 | 217,872 | 1,014,251 | 1,397,543 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Current |
286,849 | 472,632 | ||||||||||||||||||
|
|
|
|
|||||||||||||||||
Non-current |
727,402 | 924,911 | ||||||||||||||||||
|
|
|
|
Lease agreements have varying expirations, the last due to expire in June 2043. The amounts are adjusted annually for inflation rates (as IGPM and IPCA) or may incur interest based on the TJLP or CDI and some contracts have renewal or purchase options that were considered in determining the classification as financial lease.
Operating leases
At September 30, 2017, the future minimum lease payments under non-cancellable leases are as follows:
September 30, 2017 | December 31, 2016 | |||||||||||||||||||
Total future minimum payments | ||||||||||||||||||||
Less than one year |
Between one and five years |
More than five years |
Total | Total | ||||||||||||||||
Locomotives (i) |
573 | 1,303 | | 1,876 | 2,346 | |||||||||||||||
Rail cars (i) |
6,875 | 26,619 | 6,915 | 40,409 | 47,120 | |||||||||||||||
Other (i) |
1,856 | 843 | | 2,699 | 3,705 |
(i) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
The rentals are recognized as expenses (Note 25) on a straight-line basis over the life of the respective agreement.
38
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
18 | Concessions payable |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Leases | Concessions | Total | Total | |||||||||||||
Payables |
||||||||||||||||
Rumo Malha Sul |
37,027 | 29,290 | 66,317 | 73,707 | ||||||||||||
Rumo Malha Paulista |
29,148 | 19,268 | 48,416 | 52,979 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
66,175 | 48,558 | 114,733 | 126,686 | |||||||||||||
Court Discussion |
||||||||||||||||
Rumo Malha Paulista |
1,375,430 | 119,694 | 1,495,124 | 1,345,722 | ||||||||||||
Rumo Malha Oeste |
1,178,768 | 73,678 | 1,252,446 | 1,135,398 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
2,554,198 | 193,372 | 2,747,570 | 2,481,120 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
2,620,373 | 241,930 | 2,862,303 | 2,607,806 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Current |
26,955 | 27,662 | ||||||||||||||
|
|
|
|
|||||||||||||
Non-current |
2,835,348 | 2,580,144 | ||||||||||||||
|
|
|
|
Judicial deposits at September 30, 2017 concerning the above claims totaled:
September 30, 2017 | December 31, 2016 | |||||||
Malha Paulista |
119,694 | 118,820 | ||||||
Malha Oeste |
20,137 | 19,464 | ||||||
|
|
|
|
|||||
139,831 | 138,284 | |||||||
|
|
|
|
39
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
19 Trade payables
September 30, 2017 | December 31, 2016 | |||||||
Natural gas suppliers |
1,553,686 | 1,377,528 | ||||||
Materials and service suppliers |
833,105 | 789,675 | ||||||
Fuels and lubricants suppliers |
737 | 706 | ||||||
Judicial deposits (i) |
(294,976 | ) | (294,976 | ) | ||||
Other |
96,694 | 160,177 | ||||||
|
|
|
|
|||||
2,189,246 | 2,033,110 | |||||||
|
|
|
|
|||||
Current |
2,189,246 | 2.032.542 | ||||||
|
|
|
|
|||||
Non-current |
| 568 | ||||||
|
|
|
|
(i) | There is a judicial discussion between the subsidiary Comgás and its gas supplier. The gas supplier is charging different prices comparing to the gas supply market. At September 30, 2017, the balance of judicial discussion is R$ 1,141,571 (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$ 846,595 (R$ 750,335 on December 31, 2016). |
20 Other taxes payable
September 30, 2017 | December 31, 2016 | |||||||
Tax amnesty and refinancing programREFIS |
230,175 | 215,565 | ||||||
ICMS State VAT |
130,891 | 84,700 | ||||||
COFINSRevenue tax |
44,354 | 54,208 | ||||||
PISRevenue tax |
9,343 | 11,337 | ||||||
INSSSocial security |
6,335 | 7,033 | ||||||
ISSServices tax (i) |
6,294 | 3,364 | ||||||
IOFFinancial tax (i) |
2,085 | 2,992 | ||||||
Other (i) |
11,409 | 35,746 | ||||||
|
|
|
|
|||||
440,886 | 414,945 | |||||||
|
|
|
|
|||||
Current |
278,049 | 261,169 | ||||||
|
|
|
|
|||||
Non-Current |
162,837 | 153,776 | ||||||
|
|
|
|
(i) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
40
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
21 Income tax and social contribution
a) | Reconciliation of income and social contribution tax expenses: |
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 (Restated) |
January 1, 2016 to September 30, 2016 (Restated) |
|||||||||||||
Profit before taxes |
696,719 | 670,830 | 364,848 | 825,659 | ||||||||||||
Income tax and social contribution at nominal rate (34%) |
(236,884 | ) | (228,082 | ) | (124,048 | ) | (280,724 | ) | ||||||||
Adjustments to reconcile nominal to effective tax rate |
||||||||||||||||
Interest in earnings of investees (non-taxable income) |
141,384 | 242,507 | 140,297 | 374,482 | ||||||||||||
Credit claims for damages |
| | 1,346 | 3,652 | ||||||||||||
Differences in tax rates on earnings / losses of overseas companies |
(19,911 | ) | (64,819 | ) | (12,303 | ) | (115,272 | ) | ||||||||
Operating profit from activity |
31,347 | 46,312 | 10,221 | 27,473 | ||||||||||||
Share-based payment transactions |
(1,001 | ) | (2,936 | ) | (1,002 | ) | (3,007 | ) | ||||||||
Interest on capital (net received) |
(2,873 | ) | (17,153 | ) | (8,330 | ) | (21,590 | ) | ||||||||
Non-deductible expenses (donations, gifts, etc.) |
(28,938 | ) | (37,339 | ) | (7,274 | ) | (12,926 | ) | ||||||||
Tax losses not recorded (i) |
(35,520 | ) | (163,283 | ) | (64,167 | ) | (134,317 | ) | ||||||||
Costs of issuing equity instruments |
| | 1,022 | 22,329 | ||||||||||||
Other (ii) |
3,503 | (3,909 | ) | (4,845 | ) | (9,489 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Income tax and social contribution benefit (expense)current and deferred |
(148,893 | ) | (228,702 | ) | (69,083 | ) | (149,389 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Effective rate% |
21.37 | 34.09 | 18.93 | 18.09 | ||||||||||||
|
|
|
|
|
|
|
|
(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. |
(ii) | The amount of the three and nine months period ended September 30, 2016 was restated between items to improve the statement. |
41
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
b) | Deferred income tax assets and liabilities: |
September 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 |
8,845,771 | 2,211,443 | | 2,211,443 | 1,900,366 | |||||||||||||||
Social contribution tax loss carry forwards |
8,977,410 | | 807,967 | 807,967 | 704,480 | |||||||||||||||
Temporary differences |
||||||||||||||||||||
Foreign exchangeLoans and borrowings |
1,606,802 | 401,701 | 144,612 | 546,313 | 590,582 | |||||||||||||||
Legal proceedings provision |
1,151,921 | 287,980 | 103,673 | 391,653 | 401,413 | |||||||||||||||
Impairment of fixed assets |
826,890 | 206,722 | 74,421 | 281,143 | 290,470 | |||||||||||||||
Business combinationProperty, plant and equipment |
(121,266 | ) | (30,317 | ) | (10,913 | ) | (41,230 | ) | 151,060 | |||||||||||
Tax deductible goodwill |
(741,792 | ) | (185,448 | ) | (66,761 | ) | (252,209 | ) | (107,520 | ) | ||||||||||
Provisions for employee benefits |
423,018 | 105,754 | 38,072 | 143,826 | 138,655 | |||||||||||||||
Allowance for doubtful accounts (i) |
334,953 | 83,738 | 30,146 | 113,884 | 105,949 | |||||||||||||||
Regulatory asset |
196,318 | 49,080 | 17,669 | 66,748 | 71,039 | |||||||||||||||
Impairment of tax credit (i) |
174,324 | 43,581 | 15,689 | 59,270 | 50,767 | |||||||||||||||
Lease (i) |
(747,880 | ) | (186,970 | ) | (67,309 | ) | (254,279 | ) | (138,511 | ) | ||||||||||
Share-based payment transactions |
2,825 | 706 | 254 | 960 | | |||||||||||||||
Profit sharing |
77,831 | 19,458 | 7,005 | 26,463 | 28,923 | |||||||||||||||
Concession contract |
(26,955 | ) | (6,739 | ) | (2,426 | ) | (9,165 | ) | (10,616 | ) | ||||||||||
Business combinationOther fair value adjustments |
(123,367 | ) | (30,842 | ) | (11,103 | ) | (41,945 | ) | (42,360 | ) | ||||||||||
Property, plant and equipment |
(40,216 | ) | (10,054 | ) | (3,619 | ) | (13,674 | ) | (55,861 | ) | ||||||||||
Unrealized gains on derivatives instruments |
(281,720 | ) | (70,430 | ) | (25,355 | ) | (95,785 | ) | (992 | ) | ||||||||||
Temporary differences (i) |
667,372 | 166,843 | 60,063 | 226,906 | 219,944 | |||||||||||||||
Gain on formation of joint ventures |
(3,338,342 | ) | (834,586 | ) | (300,451 | ) | (1,135,036 | ) | (1,135,037 | ) | ||||||||||
Business combinationIntangible assets |
(10,352,818 | ) | (2,588,205 | ) | (931,754 | ) | (3,519,958 | ) | (3,743,218 | ) | ||||||||||
(-) Non-recordable net operating loss |
(5,779,372 | ) | (1,444,843 | ) | (520,143 | ) | (1,964,986 | ) | (1,753,070 | ) | ||||||||||
Other (i) |
1,079,306 | 269,120 | 96,884 | 366,004 | 272,974 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total net liability |
(1,542,308 | ) | (543,379 | ) | (2,085,687 | ) | (2,060,563 | ) | ||||||||||||
Deferred income taxAssets |
1,591,713 | 1,490,002 | ||||||||||||||||||
Deferred income taxLiabilities |
(3,677,400 | ) | (3,550,565 | ) | ||||||||||||||||
|
|
|
|
|||||||||||||||||
Total net deferred taxes |
(2,085,687 | ) | (2,060,563 | ) | ||||||||||||||||
|
|
|
|
(i) | The amount of December 31, 2016 was reclassified between items to improve the disclosure. |
c) | Changes in deferred income taxes, net: |
At January 01, 2017 |
(2,060,563 | ) | ||
|
|
|||
Recorded through income |
(90,387 | ) | ||
Tax loss carryforwards used to settle other tax installments |
3,555 | |||
Tax loss carryforwards over change of shareholding interest in subsidiary |
60,583 | |||
Other (i) |
1,125 | |||
|
|
|||
At September 30, 2017 |
(2,085,687 | ) | ||
|
|
(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$, unless otherwise stated)
22 Provision for legal proceedings
Provision for legal proceedings | Judicial deposits | |||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||
Tax |
507,979 | 479,532 | 382,686 | 376,454 | ||||||||||||
Civil, regulatory and environmental |
310,166 | 344,048 | 180,042 | 173,884 | ||||||||||||
Labor |
430,593 | 444,984 | 194,855 | 164,346 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,248,738 | 1,268,564 | 757,583 | 714,684 | |||||||||||||
|
|
|
|
|
|
|
|
Changes in provision for legal proceedings:
Tax | Civil, regulatory and environmental |
Labor | Total | |||||||||||||
At January 01, 2017 |
479,532 | 344,048 | 444,984 | 1,268,564 | ||||||||||||
Accruals |
13,660 | 12,361 | 86,701 | 112,722 | ||||||||||||
Disposal / Reversals |
(6,710 | ) | (34,876 | ) | (110,334 | ) | (151,920 | ) | ||||||||
Indexation and interest charges (i) |
21,497 | (11,367 | ) | 9,242 | 19,372 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
September 30, 2017 |
507,979 | 310,166 | 430,593 | 1,248,738 | ||||||||||||
|
|
|
|
|
|
|
|
(i) | It is included interest reversal. |
The Companys debts with legal proceedings are secured by assets, cash deposit, bank guarantee or insurance guarantee.
Tax claims
a) | Judicial claims deemed to be probable losses, fully accrued |
September 30, 2017 | December 31, 2016 | |||||||
Compensation with FINSOCIAL |
278,167 | 269,275 | ||||||
State VATICMS credits |
98,499 | 84,778 | ||||||
INSSSocial security |
65,605 | 63,103 | ||||||
PIS and COFINS |
11,746 | 2,449 | ||||||
IPIExcise tax creditNT |
671 | 1,155 | ||||||
Federal income taxes |
465 | 329 | ||||||
Other |
52,826 | 58,443 | ||||||
|
|
|
|
|||||
507,979 | 479,532 | |||||||
|
|
|
|
43
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
b) | Judicial claims deemed as possible losses, and therefore not accrued |
September 30, 2017 | December 31, 2016 | |||||||
ICMSState VAT (i) |
2,575,259 | 2,136,241 | ||||||
Federal income taxes (iv) |
2,527,804 | 2,188,011 | ||||||
Foreign financial operation |
1,032,493 | 986,179 | ||||||
PIS and COFINSRevenue taxes |
856,109 | 850,063 | ||||||
IRRFWithholding tax |
904,844 | 861,531 | ||||||
INSSSocial security and other |
586,913 | 615,403 | ||||||
IPIExcise tax creditNT |
520,302 | 512,209 | ||||||
Goodwill Rumo |
506,924 | 483,723 | ||||||
Penalties related to tax positions |
423,738 | 397,441 | ||||||
Compensation with IPIIN 67/98 |
131,572 | 128,456 | ||||||
MP 470Tax installments (ii) |
288,179 | 120,132 | ||||||
Rumo Intermodal (iii) |
| 81,247 | ||||||
Stock option |
65,124 | 62,216 | ||||||
Financial transactions tax on loan |
50,961 | 54,896 | ||||||
Social security contributions |
45,578 | 43,764 | ||||||
Compensation credit award |
40,830 | 38,505 | ||||||
Other |
1,043,922 | 992,682 | ||||||
|
|
|
|
|||||
11,600,552 | 10,552,699 | |||||||
|
|
|
|
(i) | Tax assessment notice issued by the São Paulo State Treasury Department, 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. The amount of this judicial claim is R$ 304,730.
The subsidiary CLE has been discussing administratively the ICMS tax credits arising from the transfer of excess credits to its centralizing unit in the period from May 2012 to January 2013 in the amount of R$ 36,879.
(ii) | The Tax Authority partially rejected the Company requests for payment of its federal tax debts, on the ground that the tax loss offered is not sufficient to settle the respective debts. The likelihood of loss is considered as possible since the results are indicated existed and are available for such use. |
(iii) | Decrease related to favorable decisions from administrative sphere. |
(iv) | During the nine month period ended September 30, 2017, the subsidiary CLE received a tax assessment notice of R$ 113,979, demanding Income Tax and Social Contribution on net income related to the amortization of goodwill from business combination. |
In 2017 the subsidiary Comgás was aware of the non-approval of compensation of tax debts made in 2015, using credits arising from Income Tax (IRPJ). The updated possible amount questioned in administrative sphere is R$ 72,797.
44
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Civil, labor, regulatory and environmental
a) | Judicial claims deemed to be probable losses, fully accrued |
| Civil refers mainly to compensation for material and moral damages, class actions for abstaining from straw burning sugarcane and execution of environmental nature. |
| Labor represent labor claims filed by former employees and employees of service providers who question, among others, payment of overtime, night and dangerous, job reinstatement, compensation for accidents at work and reimbursement of discounts from payroll, such as confederative and assistance contributions, union dues and other. |
| Regulatory mainly refers to fines and discussions with National Authority for Terrestrial Transport (ANTT). |
| Environmental these amounts derive from assessments made by the Environmental Sanitation Technology Company (CETESB-SP), Brazilian Institute of Environment and Natural Resources (IBAMA) and Environment Municipal Departments related to soil contamination and water by the overflow of products and non-compliance with conditions imposed by such operating license. In all cases, measures are being taken to reduce the existing liabilities, as well as repair and prevention measures. |
b) | Judicial claims deemed as possible losses, and therefore not accrued |
The main civil and labor lawsuits, for which the unfavorable outcome is considered possible, are as follows:
September 30, 2017 |
December 31, 2016 |
|||||||
Civil |
2,849,028 | 2,831,407 | ||||||
Labor |
990,548 | 1,089,119 | ||||||
Regulatory |
486,217 | 397,414 | ||||||
Environmental |
377,949 | 351,915 | ||||||
|
|
|
|
|||||
4,703,742 | 4,669,855 | |||||||
|
|
|
|
45
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
23 Shareholders equity
a) | Share capital |
At September 30, 2017, Cosan Limiteds share capital is composed of the following:
Class A and / or BDRs |
% | Class B1 shares |
% | |||||||||||||
ShareholdersCommon shares |
||||||||||||||||
Group |
14,514,418 | 8.35 | 96,332,044 | 100.00 | ||||||||||||
Skagen AS |
16,220,419 | 9.33 | | | ||||||||||||
M&G Investment Management Limited |
6,056,705 | 3.48 | | | ||||||||||||
Eastspring Investments (Singapore) Limited |
2,715,398 | 1.56 | | | ||||||||||||
Free Float |
128,851,899 | 74.13 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total shares outstanding |
168,358,839 | 96.86 | 96,332,044 | 100.00 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Treasury shares |
5,462,956 | 3.14 | | | ||||||||||||
Total |
173,821,795 | 100.00 | 96,332,044 | 100.00 | ||||||||||||
|
|
|
|
|
|
|
|
b) | Treasury shares |
The Company holds 5,462,956 Class A treasury shares as of September 30, 2017 (5.996.502 as of December 31, 2016) with a market value of U.S.$8.13 per share as of September 30, 2017 (U.S.$7.51 per share as of December 31, 2016).
46
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
c) | Other comprehensive (loss) income |
December 31, 2016 | Comprehensive (loss) income |
September 30, 2017 | ||||||||||
Foreign currency translation effects |
(322,258 | ) | 3,811 | (318,447 | ) | |||||||
(Loss) gain on cash flow hedge in joint ventures and subsidiaries |
(190,001 | ) | 272,136 | 82,135 | ||||||||
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 | ) | 3,371 | 753 | ||||||||
|
|
|
|
|
|
|||||||
Total |
(537,894 | ) | 288,318 | (249,576 | ) | |||||||
|
|
|
|
|
|
|||||||
Attributable to: |
||||||||||||
Owners of the Company |
(480,454 | ) | 182,946 | (297,508 | ) | |||||||
Non-controlling interests |
(57,440 | ) | 105,372 | 47,932 | ||||||||
December 31, 2015 | Comprehensive (loss) income |
September 30, 2016 | ||||||||||
Foreign currency translation effects |
(468,350 | ) | 141,946 | (326,404 | ) | |||||||
Loss on cash flow hedge in joint ventures and subsidiaries |
(235,779 | ) | (174,200 | ) | (409,979 | ) | ||||||
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 | 391 | 7,139 | |||||||||
|
|
|
|
|
|
|||||||
Total |
(478,614 | ) | (25,863 | ) | (504,477 | ) | ||||||
|
|
|
|
|
|
|||||||
Attributable to: |
||||||||||||
Owners of the Company |
(478,207 | ) | 7,582 | (470,625 | ) | |||||||
Non-controlling interests |
(407 | ) | (33,445 | ) | (33,852 | ) |
47
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
24 Earnings per share
The following table sets forth the calculation of earnings per share (in thousands of Brazilian Reais, except per share amounts):
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 (Restated) |
January 1, 2016 to September 30, 2016 (Restated) |
|||||||||||||
Profit attributable from continued operation to ordinary equity holders for basic earnings |
248,110 | 224,444 | 153,039 | 297,238 | ||||||||||||
Profit attributable from discontinued operation to ordinary equity holders for basic earnings |
| | 4,112 | 15,491 | ||||||||||||
Effect of dilution: |
||||||||||||||||
Bradoss dilutive options |
(46 | ) | | | | |||||||||||
Dilutive effect of subsidiarys stock option plan |
(1,702 | ) | (2,239 | ) | (1,038 | ) | (2,284 | ) | ||||||||
Dilutive effect of subsidiarys stock option planDiscontinued operation |
| | (22 | ) | (64 | ) | ||||||||||
Dilutive effect of put option |
(15,601 | ) | (15,601 | ) | (15,601 | ) | (15,601 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Profit from continued operation attributable to ordinary equity holders adjusted for the effect of dilution |
230,761 | 206,604 | 136,400 | 279,353 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Profit from discontinued operation attributable to ordinary equity holders adjusted for the effect of dilution |
| | 4,090 | 15,427 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic number of shares outstandingIn thousands of shares |
264,869 | 264,750 | 264,691 | 264,691 | ||||||||||||
Effect of dilution: |
||||||||||||||||
Dilutive effect of stock option plan |
13,342 | 13,470 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted number of shares outstandingIn thousands of shares |
278,211 | 278,220 | 264,691 | 264,691 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic earnings per share from: |
||||||||||||||||
Continuing operations |
R$ | 0.9367 | R$ | 0.8478 | R$ | 0.5782 | R$ | 1.1230 | ||||||||
Discontinuing operations |
| | R$ | 0.0155 | R$ | 0.0585 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
R$ | 0.9367 | R$ | 0.8478 | R$ | 0.5937 | R$ | 1.1815 | |||||||||
Diluted earnings per share from: |
||||||||||||||||
Continuing operations |
R$ | 0.8294 | R$ | 0.7426 | R$ | 0.5153 | R$ | 1.0554 | ||||||||
Discontinuing operations |
| | R$ | 0.0155 | R$ | 0.0583 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
R$ | 0.8294 | R$ | 0.7426 | R$ | 0.5308 | R$ | 1.1137 |
The non-controlling interests of the indirect subsidiary Brado Logística S.A 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.
48
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
For the nine month period ended on At September 30, 2017, 3,390,200 share options from indirect subsidiary RUMO S.A and 22,122,967 share options from indirect subsidiary Brado Logística S.A were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive.
For the three and nine-month period ended September 30, 2017, 1,628,300 shares related to the share repurchase plan of subsidiary Cosan S.A have an antidilutive effect, so they were not considered in the diluted earnings per share analysis.
25 Other expenses, net
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 |
January 1, 2016 to September 30, 2016 |
|||||||||||||
Income from sale of scrap / eventual |
9,097 | 29,267 | | | ||||||||||||
Insurance reimbursement income |
12,745 | 13,926 | 3,240 | 10,808 | ||||||||||||
(Loss) gain from port operations |
(1,212 | ) | 523 | | | |||||||||||
Rental income |
959 | 1,620 | 800 | 2,016 | ||||||||||||
Loss on disposal of non-current assets and intangibles |
(12,034 | ) | (23,735 | ) | (6,281 | ) | (15,505 | ) | ||||||||
Net effect of legal proceedings, recoverable and tax installments |
(28,464 | ) | (89,369 | ) | (17,954 | ) | (94,147 | ) | ||||||||
Other (i) |
(11,601 | ) | (26,501 | ) | 3,293 | 13,608 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
(30,510 | ) | (94,269 | ) | (16,902 | ) | (83,220 | ) | |||||||||
|
|
|
|
|
|
|
|
(i) | The amount of the three and nine months period ended September 30, 2016 was restated between items to improve the statement. |
49
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
26 Finance results
July 1, 2017 to September 30, 2017 |
January 1, 2017 to September 30, 2017 |
July 1, 2016 to September 30, 2016 (Restated) |
January 1, 2016 to September 30, 2016 (Restated) |
|||||||||||||
Cost of gross debt |
||||||||||||||||
Interest on debt |
(472,477 | ) | (1,402,021 | ) | (480,142 | ) | (1,383,622 | ) | ||||||||
Monetary and exchange rate variation |
303,348 | 100,434 | (55,842 | ) | 943,902 | |||||||||||
Derivatives and fair value measurement |
(222,542 | ) | (180,104 | ) | (66,464 | ) | (1,431,499 | ) | ||||||||
Amortization of borrowing costs |
(5,068 | ) | (13,133 | ) | (7,272 | ) | (69,781 | ) | ||||||||
Discounts obtained from financial operations |
| | 688 | 85,962 | ||||||||||||
Guarantees and warranties on debt |
(8,293 | ) | (24,653 | ) | (12,797 | ) | (35,774 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
(405,032 | ) | (1,519,477 | ) | (621,829 | ) | (1,890,812 | ) | |||||||||
Income from financial investment and exchange rate in cash and cash equivalents |
123,760 | 435,339 | 131,646 | 395,580 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
123,760 | 435,339 | 131,646 | 395,580 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost of debt, net |
(281,272 | ) | (1,084,138 | ) | (490,183 | ) | (1,495,232 | ) | ||||||||
Other charges and monetary variations |
||||||||||||||||
Interest on other receivables |
31,491 | 112,955 | 52,524 | 184,477 | ||||||||||||
Monetary variation on leases and concessions agreements |
(60,267 | ) | (195,259 | ) | (76,089 | ) | (221,671 | ) | ||||||||
Monetary variation on leases |
(32,086 | ) | (98,626 | ) | (55,981 | ) | (158,074 | ) | ||||||||
Bank charges |
(54,098 | ) | (182,437 | ) | (55,230 | ) | (165,953 | ) | ||||||||
Advances on real state credits |
(4,441 | ) | (17,069 | ) | (9,372 | ) | (21,378 | ) | ||||||||
Interest on contingencies and contracts (i) |
(18,458 | ) | (54,376 | ) | (19,350 | ) | (48,141 | ) | ||||||||
Interest on other liabilities (i) |
(104,130 | ) | (308,365 | ) | (125,415 | ) | (467,637 | ) | ||||||||
Interest on other financial assets (i) |
| | 2,334 | 2,334 | ||||||||||||
Exchange variation |
483 | 1,663 | 5,837 | 53,731 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
(241,506 | ) | (741,514 | ) | (280,742 | ) | (842,312 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
(=) Finance results, net |
(522,778 | ) | (1,825,652 | ) | (770,925 | ) | (2,337,544 | ) | ||||||||
Finance expense |
(841,177 | ) | (2,606,547 | ) | (1,142,850 | ) | (2,867,121 | ) | ||||||||
Finance income |
177,290 | 695,061 | 263,408 | 834,976 | ||||||||||||
Exchange variation |
293,593 | 99,860 | (47,689 | ) | 1,011,866 | |||||||||||
Derivatives |
(152,484 | ) | (14,026 | ) | 156,206 | (1,317,265 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Finance results, net |
(522,778 | ) | (1,825,652 | ) | (770,925 | ) | (2,337,544 | ) | ||||||||
|
|
|
|
|
|
|
|
(i) | The amount of the three and nine months period ended September 30, 2016 was restated between items to improve the statement. |
50
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
27 Financial instruments
Financial risk management
Overview
The Company is exposed to the following risks related to the use of financial instruments:
| Credit risk; |
| Liquidity risk; and |
| Market risk. |
This note presents information about the exposure of the Company and its subsidiaries to the above risks, as well as the objectives of the Companys risk management policies, these policy and processes for the assessment and management of risks.
The carrying amount of financial assets and financial liabilities are as follows:
September 30, 2017 | December 31, 2016 | |||||||
Assets |
||||||||
Fair value through profit or loss |
||||||||
Investment funds |
2,998,836 | 3,203,907 | ||||||
Marketable securities |
2,043,625 | 1,291,580 | ||||||
Derivate financial instruments |
1,042,165 | 751,080 | ||||||
|
|
|
|
|||||
6,084,626 | 5,246,567 | |||||||
Loans and receivables |
||||||||
Cash and cash equivalents |
2,802,975 | 1,295,681 | ||||||
Trade receivables |
1,251,929 | 1,185,430 | ||||||
Restricted cash |
225,695 | 200,999 | ||||||
Receivables from related parties |
217,378 | 242,257 | ||||||
Dividends receivable |
6,559 | 144,160 | ||||||
|
|
|
|
|||||
4,504,536 | 3,068,527 | |||||||
Total |
10,589,162 | 8,315,094 | ||||||
|
|
|
|
51
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
September 30, 2017 |
December 31, 2016 |
|||||||
Liabilities |
||||||||
Liabilities amortized cost |
||||||||
Loans, borrowings and debentures |
15,147,032 | 14,525,030 | ||||||
Leases |
1,014,251 | 1,397,543 | ||||||
Real state credit certificates |
115,822 | 195,745 | ||||||
Trade payables |
2,189,246 | 2,033,110 | ||||||
Other financial liabilities |
330,602 | 203,303 | ||||||
Payables to related parties |
316,922 | 237,081 | ||||||
Dividends payable |
26,818 | 93,500 | ||||||
Tax installmentsREFIS |
230,175 | 215,565 | ||||||
Preferred shareholders payable in subsidiaries |
1,555,517 | 1,769,427 | ||||||
|
|
|
|
|||||
20,926,385 | 20,670,304 | |||||||
Fair value through profit or loss |
||||||||
Loans, borrowings and debentures |
6,169,390 | 3,813,467 | ||||||
Contingent consideration |
114,570 | 166,807 | ||||||
Derivative financial instruments |
270,779 | 295,844 | ||||||
|
|
|
|
|||||
6,554,739 | 4,276,118 | |||||||
27,481,124 | 24,946,422 | |||||||
|
|
|
|
During the period ended at September 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 September 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 | |||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||
Exchange rate derivatives |
||||||||||||||||
Forward agreements |
44,639 | 438,689 | (1,493 | ) | (14,983 | ) | ||||||||||
Interest rate and exchange rate risk |
||||||||||||||||
Swap agreements (interest rate) |
2,639,277 | 1,988,540 | 368,355 | 104,491 | ||||||||||||
Swap agreements (exchange and interest rate) |
7,388,804 | 4,315,575 | 404,524 | 365,728 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
10,028,081 | 6,304,115 | 772,879 | 470,219 | |||||||||||||
Total financial instruments |
|
771,386 | 455,236 | |||||||||||||
|
|
|
|
|||||||||||||
Assets |
1,042,165 | 751,080 | ||||||||||||||
|
|
|
|
|||||||||||||
Liabilities |
(270,779 | ) | (295,844 | ) | ||||||||||||
|
|
|
|
52
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Credit risk
September 30, 2017 | December 31, 2016 | |||||||
Cash and cash equivalents (i) |
5,801,811 | 4,499,588 | ||||||
Trade receivables (ii) |
1,251,929 | 1,185,430 | ||||||
Derivative financial instruments (i) |
1,042,165 | 751,080 | ||||||
Marketable securities (i) |
2,043,625 | 1,291,580 | ||||||
Restricted cash (i) |
225,695 | 200,999 | ||||||
|
|
|
|
|||||
10,365,225 | 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: |
September 30, 2017 | December 31, 2016 | |||||||
AAA |
1,939,567 | | ||||||
AA |
4,878,202 | 5,499,565 | ||||||
A |
2,290,407 | 983,384 | ||||||
B |
3,869 | | ||||||
BB+ |
1,253 | | ||||||
BBB |
| 260,298 | ||||||
|
|
|
|
|||||
9,113,298 | 6,743,247 | |||||||
|
|
|
|
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.
(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.
53
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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:
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
Up to 1 year | 12 years | 35 years | More than 5 years |
Total | Total | |||||||||||||||||||
Loans, borrowings and debentures |
(4,839,140 | ) | (4,169,100 | ) | (10,252,345 | ) | (12,658,493 | ) | (31,919,078 | ) | (29,957,136 | ) | ||||||||||||
Trade payables |
(2,189,246 | ) | | | | (2,189,246 | ) | (2,033,110 | ) | |||||||||||||||
Other financial liabilities |
(330,602 | ) | | | | (330,602 | ) | (203,303 | ) | |||||||||||||||
Tax installmentsREFIS |
(28,475 | ) | (12,741 | ) | (12,615 | ) | (192,532 | ) | (246,363 | ) | (235,919 | ) | ||||||||||||
Leases |
(459,132 | ) | (327,678 | ) | (460,402 | ) | (306,562 | ) | (1,553,774 | ) | (1,824,890 | ) | ||||||||||||
Derivative financial instruments |
35,603 | (78,540 | ) | (574,988 | ) | 1,180,529 | 562,604 | | ||||||||||||||||
Real estate credits certificates |
(101,732 | ) | (23,847 | ) | | | (125,579 | ) | (243,628 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
(7,912,724 | ) | (4,611,906 | ) | (11,300,350 | ) | (11,977,058 | ) | (35,802,038 | ) | (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.
54
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
a) | Foreign exchange risk |
As at September 30, 2017 and December 31, 2016, the Company and its subsidiaries had the following net exposure to the exchange rate variations on assets and liabilities denominated in Dollar:
September 30, 2017 | December 31, 2016 | |||||||
Cash and cash equivalents |
271,156 | 424,334 | ||||||
Trade receivables |
40,939 | 11,940 | ||||||
Advances to suppliers |
12,672 | 58,866 | ||||||
Trade payables |
(20,277 | ) | (22,005 | ) | ||||
Loans, borrowings and debentures |
(8,479,175 | ) | (6,323,330 | ) | ||||
Advances from clients |
(6,603 | ) | | |||||
Contingent consideration |
(48,087 | ) | (68,388 | ) | ||||
Derivative financial instruments (i) |
6,506,516 | 6,413,619 | ||||||
|
|
|
|
|||||
Foreign exchange exposure, net |
(1,722,859 | ) | 495,036 | |||||
|
|
|
|
(i) | These balances are equivalent to the notional amount in US Dollars converted to R$ at the Dollar rate of September 30, 2017 and December 31, 2016 respectively. |
Sensitivity analysis on changes in foreign exchange rates:
The probable scenario was defined based on the U.S. Dollar market rates as at September 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 September 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$/US$) | ||||||||||||||||||||||||
September 30, 2017 | Scenario | |||||||||||||||||||||||
Probable | 25% | 50% | -25% | -50% | ||||||||||||||||||||
USD |
3.1680 | 3.3700 | 4.2125 | 5.0550 | 2.5275 | 1.6850 |
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$, unless otherwise stated)
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 | 14,139 | 58,968 | 117,937 | (58,969 | ) | (117,937 | ) | ||||||||||||||||
Trade receivables |
USD fluctuation | 2,775 | 10,929 | 21,858 | (10,927 | ) | (21,857 | ) | ||||||||||||||||
Advances to suppliers |
USD fluctuation | 808 | 3,370 | 6,740 | (3,370 | ) | (6,740 | ) | ||||||||||||||||
Trade payables |
USD fluctuation | (1,996 | ) | (5,568 | ) | (11,136 | ) | 5,568 | 11,136 | |||||||||||||||
Exchange rate derivatives (i) |
USD fluctuation | 419,122 | 1,905,653 | 3,811,339 | (1,905,618 | ) | (3,811,198 | ) | ||||||||||||||||
Loans, borrowings and debentures |
USD fluctuation | (354,847 | ) | (1,479,995 | ) | (2,959,989 | ) | 1,479,995 | 2,959,990 | |||||||||||||||
Advances from clients |
USD fluctuation | (421 | ) | (1,756 | ) | (3,512 | ) | 1,756 | 3,512 | |||||||||||||||
Contingent consideration |
USD fluctuation | (3,066 | ) | (12,787 | ) | (25,577 | ) | 12,788 | 25,576 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Impacts on profit or loss |
76,514 | 478,814 | 957,660 | (478,777 | ) | (957,518 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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:
September 30, 2017 | ||||||||||||||||||||
Exposure interest rate (i) |
Probable | 25% | 50% | -25% | -50% | |||||||||||||||
Cash and cash equivalents |
239,964 | 59,991 | 119,983 | (59,991 | ) | (119,983 | ) | |||||||||||||
Marketable securities |
31,605 | 7,901 | 15,803 | (7,901 | ) | (15,803 | ) | |||||||||||||
Leases |
(29,891 | ) | (7,473 | ) | (14,945 | ) | 7,473 | 14,945 | ||||||||||||
Advances on real state credits |
(6,236 | ) | (1,559 | ) | (3,118 | ) | 1,559 | 3,118 | ||||||||||||
Interest rate derivatives |
640,055 | (978,925 | ) | (1,812,866 | ) | 1,164,783 | 2,551,933 | |||||||||||||
Loans, borrowings and debentures |
(981,748 | ) | (150,960 | ) | (301,987 | ) | 150,961 | 301,988 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Impacts on profit or loss |
(106,251 | ) | (1,071,025 | ) | (1,997,130 | ) | 1,256,884 | 2,736,198 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
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 |
6.75% | 8.44% | 10.13% | 5.06% | 3.38% | |||||||||||||||
CDI |
6.00% | 7.50% | 9.00% | 4.50% | 3.00% | |||||||||||||||
TJ462 |
8.00% | 9.75% | 11.50% | 6.25% | 4.50% | |||||||||||||||
TJLP |
7.00% | 8.75% | 10.50% | 5.25% | 3.50% | |||||||||||||||
IPCA |
4.68% | 5.90% | 7.00% | 3.50% | 2.30% |
(i) | The external source used by the company for market projections was a specialized consultant. |
56
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
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 |
September 30, 2017 | December 31, 2016 | ||||||
2018 |
99.75 | % | 95.68 | % | ||||
2023 |
101.93 | % | 96.05 | % | ||||
2024 |
108.81 | % | | |||||
2027 |
108.46 | % | 100.65 | % |
| The fair value of Perpetual Notes listed on the Luxembourg Stock Exchange (Note 16) is based on their quoted market price as September 30, 2017 of 102,02% (100.03% at December 31, 2016) of the face value of obligations at September 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.
57
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
The carrying amounts and fair value of financial assets and financial liabilities are as follows:
Assets and liabilities measured at fair value | ||||||||||||||||||||||||
Carrying amount | September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
September 30, 2017 |
December 31, 2016 |
Level 2 | Level 3 | Level 2 | Level 3 | |||||||||||||||||||
Assets |
||||||||||||||||||||||||
Investment funds |
2,998,836 | 3,203,907 | 2,998,836 | | 3,203,907 | | ||||||||||||||||||
Marketable securities |
2,043,625 | 1,291,580 | 2,043,625 | | 1,291,580 | | ||||||||||||||||||
Derivate financial instruments |
1,042,165 | 751,080 | 1,042,165 | | 751,080 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
6,084,626 | 5,246,567 | 6,084,626 | | 5,246,567 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Liabilities |
||||||||||||||||||||||||
Loans, borrowings and debentures |
(6,169,390 | ) | (3,813,467 | ) | (6,169,390 | ) | | (3,813,467 | ) | | ||||||||||||||
Contingent consideration (i) |
(114,570 | ) | (166,807 | ) | | (114,570 | ) | | (166,807 | ) | ||||||||||||||
Derivative financial instruments |
(270,779 | ) | (295,844 | ) | (270,779 | ) | | (295,844 | ) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
(6,554,739 | ) | (4,276,118 | ) | (6,440,169 | ) | (114,570 | ) | (4,109,311 | ) | (166,807 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(i) | The valuation of the contingent consideration considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected payment is determined by considering the probable scenarios of forecast revenue and EBITDA, the amount to be paid under each scenario and the probability of each scenario. The significant unobservable inputs are the forecast of the annual growth rate of revenue, EBITDA margin forecast and the 13% discount rate adjusted for risk. |
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 January 01, 2017 |
1,534,072 | (146,697 | ) | 1,387,375 | ||||||||
Initial measurement |
2,461,836 | | 2,461,836 | |||||||||
Interest amortization |
(134,173 | ) | (48,460 | ) | (182,633 | ) | ||||||
Fair value |
160,328 | (48,172 | ) | 112,156 | ||||||||
|
|
|
|
|
|
|||||||
At September 30, 2017 |
4,022,063 | (243,329 | ) | 3,778,734 | ||||||||
|
|
|
|
|
|
In May 2017 the indirect subsidiary Comgás designated hedge accounting of fair value for its Debentures 5th issuance loan agreement. Using derivative operations, Comgás 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.
58
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
28 | Post-employment benefits |
September 30, 2017 |
December 31, 2016 |
|||||||
Futura |
47,330 | 43,401 | ||||||
Futura II |
154 | 163 | ||||||
Comgás |
413,125 | 397,916 | ||||||
|
|
|
|
|||||
460,609 | 441,480 | |||||||
|
|
|
|
During the nine month period ended September 30, 2017, the expense recognized in relation to the actuarial contributions was R$20,796 (R$ 18,934 for the nine month period ended September 30, 2016).
29 | Share-based payment |
Ø | Cosan Limited |
In August 2016, Cosan Limited established a Long-term Retention Plan (Plan), targeting remuneration and retention of certain executives with a high level of strategic importance for the Company. The executives would receive, during the term of the Plan (10 years), 1% each, of the shares of Cosan Limited.
In August 2017, the Board of Directors reviewed the existing to become a discretionary Plan based on the following characteristics, which are: (i) The Board of Directors will decide the number of shares to be granted, up to 1% of the shares of Cosan Limited for each executive; (ii) The Board of Directors may decide whether or not to deliver shares or cash in certain years, which may or may not be compensated in subsequent years.
On the same date, the Board of Directors approved the first granting of shares to executives participating in the Plan. (I) 533,546 shares, previously held in treasury, were granted and (ii) US$ 316,425 settled in cash.
Ø | Subsidiary Cosan S.A |
On April 27, 2017 and July 31, 2017, two new share-based compensation plans was approved at the Assembly of the subsidiary Cosan S.A, which became effective as of the granting.
Cosan S.A granted 274,000 and 412,031 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, service condition of the beneficiary in 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. Given the characteristics of the Plan, the fair value is equivalent to the value of the share on the grant date (R$ 32.11 and R$ 36.06).
59
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
The assumptions for fair value measurement of share option plans were as follows
Number of instruments on September 30, 2017 |
||||||||||||||||||||||||||||||||||||
Share option programs |
Expected life (years) |
Interest rate |
Expected volatility |
Granted | Exercisable options |
Outstanding | Market price on grant date |
Exercise price at September 30, 2017 |
Fair value at grant dateR$(i) |
|||||||||||||||||||||||||||
August 18, 2011 (A) |
1 to 7 | 12.39 | 31.44 | 4,825,000 | (3,908,000 | ) | 522,000 | 22.80 | 25.81 | 6.80 | ||||||||||||||||||||||||||
August 18, 2011 (B) |
1 to 12 | 12.39 | 30.32 | 5,000,000 | (2,000,000 | ) | 3,000,000 | 22.80 | 25.81 | 8.15 | ||||||||||||||||||||||||||
December 12, 2012 (C) |
1 to 7 | 8.78 | 31.44 | 700,000 | (48,000 | ) | 652,000 | 38.89 | 46.50 | 10.10 | ||||||||||||||||||||||||||
April 24, 2013 |
5 to 7 | 13.35 | 27.33 | 970,000 | | 860,000 | 45.22 | 53.54 | 17.95 | |||||||||||||||||||||||||||
April 25, 2014 |
5 to 7 | 12.43 | 29.85 | 960,000 | | 945,000 | 39.02 | 43.25 | 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 | | 37.02 | |||||||||||||||||||||||||||
July 31, 2017 |
5 | 15.00 | 33.70 | 412,031 | | 412,031 | 36.10 | | 36.06 | |||||||||||||||||||||||||||
August 31, 2017 |
10 | | | 533,546 | (533,546 | ) | | | | | ||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
14,433,577 | (6,489,546 | ) | 7,339,031 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
(i) | The fair value of the employee share options has been measured using the Black-Scholes formula. |
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 |
686,031 | | ||||||
Cancellation or settlements |
(4,160,238 | ) | | |||||
Share options exercised |
(1,325,000 | ) | 26.08 | |||||
|
|
|
|
|||||
At September 30, 2017 |
7,339,031 | 34.11 | ||||||
|
|
|
|
Ø | Subsidiary Cosan Logística. |
On December 21, 2016, a new share-based compensation model was approved at the Assembly of the subsidiary Cosan Logística, which became effective as of the granting
Plan of 2017
On September 1, 2017 Rumo S.A, granted 691.900 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, service condition of the beneficiary in the Rumo S.A, 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. Given the characteristics of the Plan, the fair value on the grant date is R$ 10.42.
60
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Plan of 2016
On January 2, 2017 Rumo S.A, granted 1,513,180 shares of the share-based compensation plan, which will be transferred in full and free of charge after 5 years, from the approval of the grant, in a quantity adjusted by the number proportional to the dividends paid in the period, service condition of the beneficiary in the Rumo S.A, under the terms of each Share granting Program.
The Black and Scholes methodology was used to calculate the fair value of the shares granted under the terms of the share-based compensation plan. Given the characteristics of the Plan, the fair value of the share on the grant date is R$ 6.10.
Ø | Subsidiary Comgás. |
On April 207, 2017, a new share-based compensation plan was approved at the Assembly of the subsidiary Comgás, which became effective as of the granting.
Comgás issued 61,300 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, service condition of the beneficiary in 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. Given the characteristics of the Plan, the fair value on the grant date is R$37.29.
The expenses related to the plans described above are being disclosed in note 11 line item c) Officers and directors compensation
61
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
30 | Subsequent events |
Ø | Exercise of put option on Comgás |
On October 10, 2017 Shell Gas B.V, Integral Investments B.V and Shell Brazil Holding B.V. (jointly referred to as Shell) exercised their put option on the shares issued by Comgás against the Company. The option was exercised in compliance with the agreement between Shell and the Company executed on November 5, 2012 and amended on this date (Option Agreement).
According to Option Agreement, Shell will transfer to CZZ, on the transaction date, 21,805,645 common shares issued by Comgás, which, on this date, correspond to 16.77% of the total equity of Comgás, at an implicit price of R$53.05 per Comgás Share.
In return, Cosan Limited:
1) | Will deliver to Shell, on the Transaction Date, 20,349,395 common shares issued by Cosan S.A and held by the Company, which correspond to 4.99% of the equity of Cosan S.A on this date; |
2) | Pay the equivalent of R$208,650 on the Transaction Date; and |
3) | Will pay Shell, one year after the Transaction Date, R$214,910. |
In conclusion of the process above, the Company approved the sale of the same interest, previously bought, to its subsidiary Cosan S.A. The interest sold of 16,77% of the equity of Comgás will be received in two installments, the first equivalent to R$948,201 and the second equivalent to R$214,910, which will be converted into U.S. dollar and received on the same date when the Company will makes the payments to Shell.
The consummation of the Acquisition will depend on the fulfillment of all conditions precedent established in the option agreement, including approval from Brazils antitrust agency CADE (Conselho Administrativo de Defesa Econômica).
Ø | Increase in share capitalCosan Logística |
On September 22, 2017, in a meeting of the Cosan Logísticas Board of Directors, was approved the increase of the its share capital in the amount of R$750,000, through the public offering of 95,177,665 common shares issued by Cosan Logística. Consequently, Cosan Logísticas new share capital increased to R$2,284,893, divided into 463,224,241 common shares.
The Cosan Logísticas Board of Directors will approve the capital increase after the closing of the period of Preemptive Right and Remainder Subscription to be held on October 26, 2017.
The Company has pledged to exercise its Preemptive Right to subscribe the shares in the amount of its interest in the share capital of the subsidiary.
62
Cosan Limited
Notes to the consolidated financial statements
(In thousands of Brazilian Reais R$, unless otherwise stated)
Ø | Increase in share capitalRumo S.A |
On October 4, 2017, in a meeting of the Rumos Board of Directors, was approved the increase of the Rumos share capital in the amount of R$ 2,640,000, through the public offering of 220,000,000 common shares issued by Rumo. Consequently, Rumos new share capital increased to R$ 9,654,897, divided into 1,559,015,898 common shares.
The financial settlement of the transaction occurred on October 10, 2017.
Ø | Debentures issuance Comgás |
On October 4, 2017, was approved at a Comgáss Meeting of the Board of Directors, the issuance of 400,000 debentures, of R$ 1 each, totaling R$ 400,000. The conclusion of the offer will be subject to, among other factors, market conditions.
Ø | Dividends paymentComgás |
On November 7, 2017, the Board of Directors approved the interim dividends payment of R$ 700,000, distributed based on the profits of the Comgás for the year 2017. Payment is expected to occur as of November 23 2017.
Ø | Business CombinationStanbridge Group Limited |
On 31 October 2017, the Company acquired, through its indirect subsidiary Comma, the control of the company Stanbridge Group Limited in the amount of 40 million pounds sterling. The investment aims to expand the business in the European market.
***
63
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 14, 2017
COSAN LIMITED | ||
By: | /s/ Marcelo Eduardo Martins | |
Name: Marcelo Eduardo Martins Title: Chief Financial Officer |