6-K/A 1 d525785d6ka.htm 6-K/A 6-K/A

FORM 6-K/A

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 March, 2018

Commission File Number: 1-33659

COSAN LIMITED

(Translation of registrant’s 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            


EXPLANATORY NOTE

Inclusion of Cosan Limited’s Earnings Release, regarding the results of the fourth quarter (October, November and December) of 2017 (4Q17) and Fiscal Year of 2017.


LOGO

 

4Q17 & 2017 Earnings Release

São Paulo, March 1, 2018 COSAN LIMITED (“CZZ” or “Company”) (NYSE: CZZ and B3: CZLT33) announces today its results for the fourth quarter (October, November and December) of 2017 (4Q17) and Fiscal Year of 2017. The results are presented on a consolidated basis, in accordance with the accounting practices adopted in Brazil and with International Financial Reporting Standards (IFRS), Comparisons in this report take into consideration 4Q17 x 4Q16 and 2017 x 2016, except where indicated differently,

Summary of Financial Information

 

 

 

Executive Summary—Cosan Pro forma¹    4Q17     4Q16     Chg.%     3Q17      Chg.%     2017      2016     Chg.%  

BRL mln

   (Oct-Dec)     (Oct-Dec)     4Q17/4Q16     (Jul-Sep)      4Q17/3Q17     (Jan-Dec)      (Jan-Dec)     2017/2016  

Net Revenue

     14,717.2       13,043.7       12.8     14,483.9        1.6     55,016.4        51,889.0       6.0

Gross profit

     1,911.2       1,578.3       21.1     2,322.3        -17.7     7,429.7        7,632.3       -2.7

EBIT

     1,904.0       703.8       n/a       1,403.2        35.7     4,794.1        4,366.6       9.8

EBITDA

     2,879.0       1,696.5       69.7     2,231.3        29.0     8,104.6        7,476.1       8.4

Adjusted EBITDA²

     1,895.1       1,640.2       15.5     2,413.1        -21.5     7,834.3        6,603.2       18.6

Net Income (Loss)

     326.6       (34.9     n/a       248.1        31.6     551.0        277.8       98

Ajusted Net Income² (Loss)

     (203.3     3.6       n/a       267.5        n/a       188.2        (135.3     n/a  

 

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

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

Message from the CEO

 

 

Here we are after another year in Brazil where reality ended up being quite different from expectations. The atmosphere in the beginning of 2017 was of cautious optimism: encouraging initial signs of economic upswing shadowed by question marks on approval reforms required to ensure sustainable improvements. Political uncertainties increased around middle of year. Declining inflation and interest rates trends instead progressed and growth signs spread across wider range of industries. Reforms approval lagged behind expectations and 2018 starts with elections bringing additional challenges to reaching that goal. But Brazil is out of recession, inflation is back on track and interest rates just hit record lows. Quoting English gentlemen, “not bad at all”.

Cosan Limited businesses delivered on guidance across the board for eighth consecutive year, grounded on tireless search for operation excellence. Raízen Combustíveis keeps on outperforming peers and delivering solid EBITDA growth in volatile pricing and supply environment. Raízen Energia concluded 2017/18 crushing season further optimizing its cost structure while optimizing its product mix to offset more challenging commodities price scenario. Comgás and Moove beat guidance leveraging on higher industrial activity, Rumo scored record high EBITDA by managing to overcome operational challenges amid major turnaround to reap rewards of record high crop in Brazil. Last but not least, all our companies ended 2017 with leveraging ratios hovering close to 2,5x Net EBITDA target and strong cash generation. Our portfolio has been tested against stressed economic environments over the last decade and succeeded.

Capital allocation. CZZ issued USD 500 million in bonds aimed at funding our participation in timely BRL 2.6 billion follow on at Rumo, reducing funding costs while de-risking further our portfolio. In line with our commitment to simplifying our corporate structure, CZZ sold Comgás shares to Cosan S/A (from the exercise of a put option by Shell, under the exact same conditions), strengthening CZZ cash liquidity. Then, we called for a successful tender offer resulting on buy back of USD 212 million worth of CZZ shares as part of capital allocation strategy, reflecting high conviction in the value of our portfolio. CZZ outperformed underlying listed assets by approximately 10%.

We released our guidance for 2018, calling for another year of pro-forma EBITDA expansion. Raizen Combustíveis is expected to continue leveraging on strong relationship with its retailers, strengthened across economic downturn, and supply and commercialization strategy. Raizen Energia efficiency journey will allow it to endeavor a year of more challenging commodity prices with robust returns. Comgas is set to keep on benefiting from higher economic activity and conversion of new residential and commercial clients. Moove is well positioned to benefit from upturn in Brazil while international expansion continues. And Rumo remains committed to execution of its business plan to deliver continued EBITDA growth and cash generation.

2017 has been another amazing year for Cosan Limited and we expect 2018 to be the same.

Marcos Marinho Lutz, CZZ’s CEO.

 

Investor Relations

   LOGO

E-mail: ri@cosan.com.br

Tel: +55 11 3897-9797

Website: ri.cosanlimited.com

  

 

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COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Business Units

 

 

Cosan S/A Indústria e Comércio (B3: CSAN3) and Cosan Logística S/A (B3: RLOG3), companies controlled by the Company, reported its results in February 22, 2018 and February 27, 2018, respectively. Its Earnings Releases containing the comments from the main financial and operational information, besides its Financial Statements, can be found at the websites below:

 

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

 

    Cosan Logística (RLOG3 e RAIL3): http://ri.rumolog.com.br

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

 

•  Cosan S.A. (CSAN3) (57.9%)

  

Raízen Combustíveis (50%)

   Fuel Distribution

Raízen Energia (50%)

   Sugar, Ethanol and Cogeneration

Comgás (79.9%)

   Natural Gas Distribution

Moove (100%)

   Lubricants, Basic Oils and Specialties

Cosan Corporativo (100%)

   Corporate Structure and Other Investments

 

•  Cosan Logística S.A. (RLOG3) (72.5%)

  

Rumo S.A. (RAIL3)

   Logistics Operator

Executive Summary 4Q17 & 2017

 

 

Cosan S.A. (CSAN3):

Cosan S/A Proforma: Adjusted EBITDA reached R$ 1.2 billion in 4Q17 (-7%) and R$ 5.1 billion in 2017, in line with the guidance for the 8th consecutive year. Adjusted Net income for the year was R$ 953 million (+53%), reflecting better operational performance across all businesses. Raízen Combustíveis continues to reap the rewards of consistent supply optimization and commercialization strategies combined with solid long-term relationship with retailers resellers, once again out performing performance the market. At Raízen Energia, we concluded 2017/18 crushing season with 61 million tons of sugar cane (+2%), yet less favorable commodity prices negatively affected quarter results. Higher industrial activity and connection of new customers supported another strong quarter at Comgás. Moove sales volumes increased in Brazil and international operations. Leverage (ratio net debt / pro forma EBITDA) remained stable at 2,0x at the end of the period and free cash flow (FCFE) reached R$ 643 million, impacted by R$833 million disbursement related to the acquisition of Comgás shares.

Raízen Combustíveis: Adjusted EBITDA was R$ 806 million in 4Q17 (-10%), lower supply-related gains in the quarter when compared to the previous year offset higher sales volumes. Total sales volume increased 4% while the market expanded by 2% in 4Q17 (ANP source) when compared to 4Q16. Otto cycle sales grew 1% (-1% in gasoline equivalent), affected by a greater share of ethanol in sales mix. Raizen diesel sales was 9% higher than 4Q16, driven by higher demand from the agricultural segment and new customers, while market grew by 4% (ANP source). In 2017 Raízen Combustíveis adjusted EBITDA reached R$ 2.9 billion (+5%), in line with guidance, with 3% growth in total sales volume compared to 1% market growth based on ANP figures and 1% market reduction based on Plural figures, former Sindicom.

Raízen Energia: Adjusted EBITDA in 4Q17, third quarter of 2017/18 crop year, reached R$ 891 million (-11%), reflecting lower average sugar and ethanol prices in the market, partially offset by better bioenergy results. Crushing totaled 13 million tons of sugarcane (+17%) in the quarter due to drier climate and greater availability of raw material. 4Q17 productivity index of was 8,4 Kg ATR/hectare (-4%) and the production mix was 48% for sugar (versus 56% in 4Q16), due to the increase of ethanol profitability in the period. Raízen crushed 61 million tons of sugarcane (+ 2%) in first nine-months of 2017/18 harvest with a production mix of 55% for sugar.

 

 

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COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Comgás: EBITDA normalized by regulatory current account effect reached R$ 416 million in the quarter (+16%), impacted by the higher volume sold (+4%) and margins inflation correction in May 2017. Natural gas sales in industrial and commercial segments increased by 3% and 6% respectively in 4Q17, reflecting gradual recovery of the economic activity. Residential segment volumes remained stable compared to 4Q16, affected by higher average temperature in the period. Normalized EBITDA exceeded the guidance for 2017 and reached R$ 1.7 billion (+19%), due to higher sales volumes and lower operating expenses due to efficiency gains. Sales volume increased across all segments in 2017 (+4% versus 2016), supported by connection of new clients over last 12 months and higher demand for natural gas.

Moove: 4Q17 EBITDA reached R$ 34 million (-27%) and R$ 175 million in 2017 (+29%), beating guidance. Better results for the year are due to higher sales volumes (+6%) and better mix of products across all markets.

Cosan Logística S.A. (RLOG3):

Rumo achieved EBITDA growth higher than 100% in 4Q17, coming to R$ 730 million. In 2017, Rumo reached EBITDA of R$ 2,757 million, up 36% year-on-year and within guidance. Investments continue to yield capacity increase and operational improvements, allowing Rumo to capture higher volumes and reach 13.4 billion RTK (+79%) during 4T17 and 49.7 billion RTK in 2017 (+23%). Grains transportation, which is Rumo’s most profitable operation, grew 39% in 2017 reaching 71% market in Santos Port in 4Q17. Productivity gains enabled operational records throughout the year, diluting fixed costs, while diesel consumption per GKB is down 8.6%. EBITDA margin reached 46% in 4Q17 and in the average of the year (versus 34% in 4Q16 and 40% in 2016). Rumo closed 4Q17 with broad net debt/LTM EBITDA of 2.6x, from 4.0x in previous quarter, on the back of higher EBITDA and R$ 2.6 billion capital increase in October. In January of 2018, company issued USD 500 million in bonds with maturity date in January of 2025 and a 5.875% annual interest rate, considerably below the cost of the first issue in the international market in February 2017, as part of its commitment to reducing cost of debt. Scenario for 2017/2018 grains crops is encouraging and 2017 performance reinforces confidence on achieving long term objectives.

The following tables present the key operating and financial metrics of our businesses. Historical data for the information presented can be found on our Investor Relations website (ir.cosanlimited.com.) in the Results Center.

 

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COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Main Operational and Financial Metrics

 

 

Raízen Combustíveis

 

     4Q17      4Q16      Chg.%     3Q17      Chg.%     2017      2016      Chg.%  
     (Oct-Dec)      (Oct-Dec)      4Q17/4Q16     (Jul-Sep)      4Q17/3Q17     (Jan-Dec)      (Jan-Dec)      2017/2016  

Otto Cycle Volume (Gasoline+ Ethanol) (‘000 cbm)

     3,078        3,060        1     2,958        4     11,878        11,614        2

Gasoline Equivalent3Volume (‘000 cbm)

     2,840        2,883        -1     2,760        3     11,129        10,840        3

Diesel Volume (‘000 cbm)

     2,885        2,638        9     3,028        -5     11,295        10,688        6

Adjusted EBITDA Margin4 (BRL/cbm)

     123        142        -13     136        -10     115        113        2

Adjusted EBIT4 (BRL/cbm)

     99        115        -14     110        -10     90        88        2

 

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

Note 4: Excludes effects from asset sale and other non-recurring items.

Raízen Energia

 

     4Q17      4Q16      Chg.%     2017/18      2015/16      Var.%  
     (Oct-Dec)      (Oct-Dec)      4Q17/4Q16     (Oct-Dec)      (Oct-Dec)      17/18x15/16  

Sugarcane Crushed (mln mt)

     13,3        11,3        17     60,7        59,4        2

TRS/ha

     8,4        8,7        -4     9,8        10,3        -5

Sugar/Ethanol Production Mix

     48% x 52%        56% x 44%        n/a       55% x 45%        57% x 43%        n/a  

Adjusted EBITDA5 (BRL mln)

     891        1,003        -11     3,089        2,768        12

Adjusted EBIT5/TRS sold (BRL/ton)

     115        184        -38     171        170        1

 

Note 5: Excludes effects from biological assets variation, debt hedge accounting effects, foreign exchange hedge on sugar exports and nonrecurring gains/losses where applicable.

Note 6: TRS sold represents the total volume sold measured in sugar equivalent (tons).

Comgás

 

     4Q17      4Q16      Chg.%     3Q17      Chg.%     2017      2016      Chg.%  
     (Oct-Dec)      (Oct-Dec)      4Q17/4Q16     (Jul-Sep)      4Q17/3Q17     (Jan-Dec)      (Jan-Dec)      2017/2016  

Total Sales Volume (cbm) Ex-Thermal

     1,089        1,047        4     1,114        -2     4,291        4,119        4

Normalized EBITDA7 (BRL mln)

     416        359        16     477        -13     1,737        1,465        19

IFRS EBITDA (BRL mln)

     375        308        22     463        -19     1,518        1,965        -23

 

Note 7: Includes the effect from the regulatory Current Account.

Moove

 

     4Q17      4Q16      Chg.%     3Q17      Chg.%     2017      2016      Chg.%  
     (Oct-Dec)      (Oct-Dec)      4Q17/4Q16     (Jul-Sep)      4Q17/3Q17     (Jan-Dec)      (Jan-Dec)      2017/2016  

Total Sales Volume (‘000 cbm)

     81        81        0     93        -13     348        329        6

EBITDA (BRL mln)

     34        46        -27     44        -24     175        136        29

Rumo

 

     4Q17      4Q16      Chg.%
     (Oct-Dec)      (Oct-Dec)     

4Q17/4Q16

Consolidated

        

Operating Ratio8

     82.0      95.0    -13%

Diesel Comsuption (Liters 000’ TKB)

     4.3        4.9      -13%

North Operation

        

Grains from Rondonópolis (MT) to Port of Santos (SP)

Average number of freight cars loaded per day (units)

     476        97      n/a%

Transit time (hours)

     107        97      10%

Cycle time of freight cars (days)

     10        11      -11%

Operação Sul

        

Grains from terminals in North of Paraná to Port of Paranaguá (PR) and São Francisco do Sul (SC)

Average number of freight cars loaded per day (units)

     276        36      n/a%

Transit time (hours)

     48        48      0%

Cycle time of freight cars (days)

     8        8      -0%

 

Note 8: Operating Ratio calculation considers proportional allocation of part of 4Q16 depreciation in prior quarters from the same year.

 

 

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COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Cosan Corporate Results

The following table provides a breakdown of the 4Q17 results by business unit for all segments detailed previously. All information reflects 100% of their financial performance, regardless of the interest held by Cosan. For the purpose of reconciling EBITDA in the column “Cosan S/A Accounting”, the “Adjustments & Eliminations” column reflects the eliminations from operations among all Cosan subsidiaries for consolidation purposes.

 

Earnings by Business Unit

4Q17

   Raízen
Combustíveis
    Raízen
Energia
    Comgás     Moove     Cosan
Corporate
    Desconsolidation
Raízen
    Adjustments
and
Elimination
    Cosan S/A
Accounting
    Cosan
Logistica
    Cosan
Limited
(Parent
Company)
    Adjustments
and
Elimination
    CZZ  

Net Revenue

     19,374.2       3,293.6       1,496.8       637.0       1.1       (22,667.8     0.0       2,135.0       1,592.1       —         (9.9     3,717.2  

Cost of Goods and Services Sold

     (18,304.1     (2,645.8     (969.5     (493.1     (1.9     20,949.9       -0.0       (1,464.5     (1,210.4     —         9.9       (2,665.0

Gross Profit

     1,070.1       647.8       527.3       144.0       (0.8     (1,717.9     —         670.5       381.7       —         —         1,052.2  

Gross Margin (%)

     5.5     19.7     35.2     22.6     -71.0     7.6     —         31.4     24.0     n/a       —         28.3

Selling Expenses

     (349.9     (197.5     (166.4     (102.8     (0.0     547.4       —         (269.2     (5.2     —         —         (274.4

General and Administrative Expenses

     (123.2     (165.8     (98.5     (29.2     (44.0     289.1       —         (171.8     (95.6     (41.7     —         (309.1

Other Operating Income (Expenses)

     62.1       (16.9     (4.9     0.2       973.4       (45.3     —         968.8       3.1       (0.0     —         971.9  

Equity Pick-up

     —         (6.4     —         (2.1     399.1       6.4       (105.1     292.0       (3.0     382.2       (382.2     289.0  

Depreciation and Amortization

     153.1       594.3       117.4       23.8       4.9       (747.4     —         146.0       448.3       0.0       —         594.4  

EBITDA

     812.1       855.4       375.0       33.9       1,332.6       (1,667.6     (105.1     1,636.4       729.4       340.5       (382.2     2,324.0  

EBITDA Margin (%)

     4.2     26.0     25.1     5.3     n/a       7.4     n/a       76.6     45.8     n/a       n/a       62.5

Financial result

     (44.4     (112.3     (85.7     (17.7     (392.3     156.8       —         (495.7     (393.7     (13.7     (22,8     (925.8

Income and Social Contribution Taxes

     (168.9     (22.4     (9.8     (1.6     (249.0     191.3       —         (260.5     52.8       (0.1     8,1       (199.7

Non-controlling Interest

     (14.5     —         —         —         —         14.5       (47.8     (47.8     41.3       (0.1     (271.0     (277.6

Net Income

     431.2       126.4       162.1       (9.2     686.4       (557.6     (152.9     686.4       (18.5     326.6       (667.8     326.6  

Earnings by Business Unit

2017

   Raízen
Combustíveis
    Raízen
Energia
    Comgás     Moove     Cosan
Corporate
    Desconsolidation
Raízen
    Adjustments
and
Elimination
    Cosan S/A
Accounting
    Cosan
Logistica
   

 

Cosan
Limited
(Parent
Company)

    Adjustments
and
Elimination
    CZZ  

Net Revenue

     72,789.1       13,152.7       5,537.9       2,129.5       3.4       (85,941.8     -0.0       7,670.8       5,946.3       —         (34.7     13,582.5  

Cost of Goods and Services Sold

     (68,875.3     (10,907.7     (3,492.4     (1,545.7     (7.9     79,782.9       0.0       (5,045.9     (4,221.0     —         34.7       (9,232.2

Gross Profit

     3,913.9       2,245.0       2,045.5       583.9       (4.5     (6,158.9     —         2,624.9       1,725.4       —         (0.0     4,350.3  

Gross Margin (%)

     5.4     17.1     36.9     27.4     n/a       7.2     —         34.2     29.0     n/a       —         32.0

Selling Expenses

     (1,345.8     (803.2     (652.9     (386.7     (0.2     2,149.0       —         (1,039.8     (28.8     —         —         (1,068.7

General and Administrative Expenses

     (455.7     (618.1     (345.0     (94.0     (158.4     1,073.8       —         (597.4     (285.4     (52.5     —         (935.3

Other Operating Income (Expenses)

     312.2       (108.0     (26.4     (3.7     911.1       (204.2     —         881.0       (3.3     (0.1     —         877.6  

Equity Pick-up

     —         (54.5     —         (7.7     1,387.4       54.5       (381.8     998.0       4.2       710.4       (710.4     1,002.3  

Depreciation and Amortization

     635.9       2,131.1       496.8       82.9       17.0       (2,767.0     —         596.7       1,341.3       0.0       —         1,938.0  

EBITDA

     3,060.4       2,792.4       1,517.9       174.7       2,152.5       (5,852.8     (381.8     3,463.3       2,753.3       657.9       (710.4     6,164.1  

EBITDA Margin (%)

     4.2     21.2     27.4     8.2     n/a       6.8     n/a       45.1     46.3     n/a       n/a       45.4

Financial result

     (359.8     0.1       (225.5     (54.4     (618.5     359.6       —         (898.4     (1,665.8     (101.6     (85.7     (2,751.5

Income and Social Contribution Taxes

     (615.8     (78.9     (236.0     (20.1     (201.6     694.7       —         (457.7     (10.2     1.7       37.9       (428.4

Non-controlling Interest

     (59.6     —         —         —         —         59.6       (195.2     (195.2     184.5       (7.0     (477.6     (495.3

Net Income

     1,389.3       582.5       559.7       17.3       1,315.3       (1,971.8     (577.0     1,315.3       (79.5     551.0       (1,235.8     551.0  

 

5 of 9

 

 


COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Loans and Financing

In December 31, 2017, Cosan Limited’s (CZZ Corporate) gross debt totalized R$ 2.4 billion, reflecting the USD 500 million Bond 2024 issuance in September of 2017.

Cash and cash equivalents came to R$ 1.2 billion in 4Q17, compared to R$ 1.9 billion at the close of the 3Q17, due to the following events: (i) investment of R$ 545 million related to the participation in the capital increase of its subsidiary Cosan Logística and (ii) conclusion of Share Buyback Program in the amount of US$ 212 million, partially offset by the sale of Comgás shares (resulting from Shell’s exercise) to Cosan S/A in the amount of R$ 833 million.

CZZ Corporate’s net debt ended the period at R$ 1.2 billion, higher than the Company’s net debt of R$ 428 million at the end of 3Q17.

 

Loans and Financing 4Q17

BRL mln

   Comgás     Moove     Cosan
Corporate
    Consolidated     Raízen
Energia
    Raízen
Combustíveis
    Consolidated
Pro forma
    Cosan
Logística
    Cosan
Limited
(Parent
Company)
    CZZ
Pro
forma
 

Opening balance of pro forma net debt

     1,010.0       297.0       2,602.6       3,909.7       3,790.2       534.6       8,234.5       8,411.7       378.3       17,024.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and marketable securities

     2,454.6       133.1       1,659.6       4,247.3       1,119.1       103.1       5,469.4       1,706.9       1,891.3       9,067.6  

Gross Debt

     3,464.6       430.1       4,262.2       8,157.0       4,909.3       637.7       13,704.0       10,118.5       2,269.6       26,092.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash items

     193.9       137.8       (40.6     291.0       (194.5     821.8       918.3       (838.9     (43.8     35.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funding

     404.3       235.0       12.7       652.1       100.0       828.5       1,580.9       1,296.3       (5.0     2,871.9  

Payment of principal on loans and borrowings

     (108.6     (85.2     (38.3     (232.0     (181.9     (2.0     (415.9     (1,865.4     —         (2,281.3

Payment of Interest on loans borrowings

     (107.8     (3.0     (35.6     (146.4     (112.6     (4.7     (263.7     (269.6     (38.7     (572.1

Derivatives

     5.9       (9.1     20.5       17.4       —         —         17.4       (0.2     —         17.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncash items

     95.6       28.9       150.6       275.1       166.5       (51.0     390.7       281.8       117.7       790.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Provision for interest (accrual)

     57.9       4.9       82.3       145.1       67.8       6.6       219.5       205.8       41.2       466.5  

Monetary variation and MTM adjustment of debt

     23.4       9.3       38.2       70.9       18.8       1.5       91.2       67.2       6.0       164.4  

Exchange variation, net of derivatives

     14.3       14.7       30.1       59.2       79.9       (59.1     79.9       8.8       70.5       159.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Closing balance of gross debt

     3,754.0       596.8       4,372.2       8,723.1       4,881.4       1,408.5       15,012.9       9,561.5       2,343.6       26,918.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and marketable securities

     2,237.1       197.6       1,415.7       3,850.4       1,034.7       610.9       5,496.0       3,333.1       1,225.1       10,054.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Closing balance of pro forma net debt

     1,517.0       399.3       2,956.5       4,872.7       3,846.7       797.6       9,517.0       6,228.4       1,118.5       16,863.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Obligations due to preferred shareholders of subsidiaries

     —         —         1,442.7       1,442.7       —         —         1,442.7       —         —         1,442.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,517.0       399.3       4,399.2       6,315.4       3,846.7       797.6       10,959.6       6,228.4       1,118.5       18,306.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

6 of 9

 

 


COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Cash Flow Reconciliation

 

Cash Flow Statement 4Q17

                                                                        

BRL mln

   Comgás     Moove     Cosan
Corporate
    Eliminations     Cosan
S/A
    Raízen
Combined
    Eliminations     Cosan
S/A

Pro
forma
    Cosan
Logística
    Cosan
Limited
(Parent
Company)
    Eliminations/
Adjusted
    CZZ
Pro
forma
 

EBITDA

     375.0       33.9       1,332.6       (105.1     1,636.4       833.8       (278.8     2,191.3       729.4       340.5       (382.2     2,879.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noncash impacts on EBITDA

     63.4       12.3       (1,362.8     105.1       (1,182.0     (51.5     278.8       (954.7     78.5       (340.3     382.2       (834.2

Changes in assets and liabilities

     (81.3     (8.6     (69.1     —         (159.0     (167.9     —         (326.9     (180.6     0.1       (3.0     (510.5

Operating financial result

     39.8       (1.1     16.0       —         54.7       (3.6     —         51.2       12.8       3.2       —         67.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Cash Flow

     396.9       36.5       (83.4     —         350.1       610.8       —         960.9       640.1       3.5       (3.0     1,601.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPEX

     (108.4     (26.2     (1.5     —         (136.1     (386.7     —         (522.9     (621.6     (1.6     —         (1,146.0

Other

     —         (116.5     (87.0     30.4       (173.1     24.2       —         (148.9     (0.6     (548.0     593.3       (104.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flow from Investing Activities

     (108.4     (142.7     (88.5     30.4       (309.3     (362.5     —         (671.8     (622.2     (549.6     593.3       (1,250.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funding

     404.3       235.0       12.7       —         652.1       928.5       —         1,580.6       1,296.3       (5.0     —         2,871.9  

Loans amortization (Principal)

     (108.6     (85.2     (38.3     —         (232.0     (183.9     —         (415.9     (1,954.5     —         —         (2,370.4

Loans amortization (Interest)

     (107.8     (3.0     (35.6     —         (146.4     (125.4     —         (271.8     (322.0     (38.7     —         (632.5

Derivatives

     6.0       (9.1     20.5       —         17.4       —         —         17.4       (0.2     —         —         17.2  

Other

     —         29.7       (791.8     (30.4     (792.4     (1.7     —         (794.1     2,586.4       (136.3     (590.3     1,065.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flow from Financing Activities

     193.9       167.5       (832.4     (30.4     (501.4     617.5       —         116.1       1,606.0       (180.0     (590.3     951.9  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Dividends received

     —         —         883.7       (434.8     448.9       —         (444.3     4.7       1.6       —         —         6.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Free Cash Flow to Equity

     482.3       61.3       (120.5     (434.8     (11.7     865.8       (444.3     409.9       1,625.6       (726.1     0.0       1,309.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cosan S.A

     —         —         (134.7     —         (134.7     —         444.3       309.5       —         (0.5     —         309.5  

Comgás

     (699.8     —         —         434.8       (265.0     —         —         (265.0     —         —         —         (265.0

Others

     —         —         —         —         —         (450.3     —         (450.3     —         (0.5     —         (450.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Dividends paid

     (699.8     —         (134.7     434.8       (399.7     (450.3     444.3       (405.7     —         (0.5     —         (406.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Exchange variation impact on cash and cash equivalents

     —         3.1       11.4       —         14.5       7.9       —         22.4       0.7       60.3       —         83.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash Generation (Burn) in the Period

     (217.5     64.5       (243.8     —         (396.9     423.5       —         26.6       1,626.2       (666.2     0.0       986.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

7 of 9

 

 


COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Financial Statements

Cosan Limited—Accounting

 

Indicators

   4Q17      4Q16      Chg.%     3Q17      Chg.%     2017      2016      Chg.%  

BRL mln

   (Oct-Dec)      (Oct-Dec)      4Q17/4Q16     (Jul-Sep)      4Q17/3Q17     (Jan-Dec)      (Jan-Dec)      2017/2016  

EBITDA

     2,324.0        1,080.0        n/a       1,665.7        39.5     6,164.1        5,347.1        15.3

CAPEX

     910.7        600.0        51.8     627.2        45.2     2,678.9        2,278.9        17.5

 

Income Statement for the Period

   4Q17     4Q16     Chg.%     3Q17     Chg.%     2017     2016     Chg.%  

BRL mln

   (Oct-Dec)     (Oct-Dec)     4Q17/4Q16     (Jul-Sep)     4Q17/3Q17     (Jan-Dec)     (Jan-Dec)     2017/2016  

Net Revenue

     3,717.2       2,785.9       33.4     3,711.0       0.2     13,582.5       12,518.1       8.5

Cost of Goods and Services Sold

     (2,665.0     (2,219.7     20.1     (2,405.6     10.8     (9,232.2     (8,317.5     11.0

Gross profit

     1,052.2       566.2       85.8     1,305.4       -19.4     4,350.3       4,200.6       3.6

Selling, general & administrative expenses

     (583.4     (548.8     6.3     (471.2     23.8     (2,004.0     (2,038.3     -1.7

Other net operating income (expenses)

     971.9       (33.1     n/a       (30.5     n/a       877.6       (116.3     n/a  

Financial results

     (925.8     (718.2     28.9     (522.8     77.1     (2,751.5     (3,055.8     -10.0

Equity Pick-up

     289.0       464.3       -37.8     415.8       -30.5     1,002.3       1,565.7       -36.0

Expenses with income and social
contribution taxes

     (199.7     87.7       n/a       (148.9     34.1     (428.4     (61.7     n/a  

Non-controlling interest

     (277.6     241.2       n/a       (299.7     -7.4     (495.3     (181.2     n/a  

Discontinued operations

     —         (94.1     -100.0     —         n/a       —         (35.3     -100.0

Net Income (Loss)

     326.6       (34.9     n/a       248.1       31.6     551.0       277.8       98.3

 

Balance Sheet

   4Q17    3Q17

BRL mln

   12/31/2017    09/30/2017

Cash and cash equivalents

   4,555    5,802

Marketable Securities

   3,853    2,044

Trade accounts receivable

   1,278    1,206

Inventories

   663    614

Derivative financial instruments

   1,162    1,042

Other current assets

   2,367    784

Other non-current assets

   4,342    4,733

Investments

   8,749    8,982

Property, plant and equipment

   11,682    11,330

Intangible assets

   16,974    16,849

Total Assets

   55,625    53,386

Loans and borrowings

   21,689    21,316

Financial instruments and derivatives

   115    271

Trade accounts payable

   2,434    2,189

Payroll

   291    268

Other current liabilities

   2,392    1,817

Other non-current liabilities

   11,644    11,367

Shareholders’ Equity

   17,059    16,157

Total Liabilities

   55,625    53,386

 

8 of 9

 

 


COSAN LIMITED    Earnings Release
    

4rd Quarter and Fiscal Year of 2017

 

 

Financial Statement including Raízen

Cosan Limited Proforma (including 50% of Raízen)

 

Indicators

   4Q17      4Q16      Chg.%     3Q17      Chg.%     2017      2016      Chg.%  

BRL mln

   (Oct-Dec)      (Oct-Dec)      4Q17/4Q16     (Jul-Sep)      4Q17/3Q17     (Jan-Dec)      (Jan-Dec)      2017/2016  

EBITDA

     2,879.0        1,696.5        69.7     2,231.3        29.0     8,104.6        7,476.1        8.4

Adjusted EBITDA

     1,895.1        1,640.2        15.5     2,413.1        -21.5     7,834.3        6,603.2        18.6

CAPEX

     1,161.5        858.8        35.2     815.9        42.4     3,904.8        3,338.5        17.0

 

Income Statement for the Period

   4Q17     4Q16     Chg.%     3Q17     Chg.%     2017     2016     Chg.%  

BRL mln

   (Oct-Dec)     (Oct-Dec)     4Q17/4Q16     (Jul-Sep)     4Q17/3Q17     (Jan-Dec)     (Jan-Dec)     2017/2016  

Net Revenue

     14,717.2       13,043.7       12.8     14,483.9       1.6     55,016.4       51,889.0       6.0

Cost of Goods and Services Sold

     (12,806.1     (11,465.4     11.7     (12,161.6     5.3     (47,586.7     (44,256.7     7.5

Gross profit

     1,911.2       1,578.3       21.1     2,322.3       -17.7     7,429.7       7,632.3       -2.7

Selling, general & administrative expenses

     (1,001.7     (942.6     6.3     (925.0     8.3     (3,615.4     (3,563.9     1.4

Other net operating income (expenses)

     994.5       68.1       n/a       5.9       n/a       979.7       298.2       n/a  

Financial results

     (1,004.2     (774.9     29.6     (521.1     92.7     (2,931.3     (3,082.5     -4.9

Equity Pick-up

     7.0       13.2       -47.0     5.4       28.3     (10.9     (34.1     -68.0

Expenses with income and social contribution taxes

     (295.3     (82.6     n/a       (330.9     -10.8     (775.7     (727.7     6.6

Non-controlling interest

     (284.9     199.8       n/a       (308.6     -7.7     (525.1     (209.3     n/a  

Discontinued operations

     —         (94.1     -100.0     —         n/a       —         (35.3     -100.0

Net Income (Loss)

     326.6       (34.9     n/a       248.1       31.6     551.0       277.8       98.3

 

Balance Sheet

   4Q17      3Q17  

BRL mln

   12/31/2017      09/30/2017  

Cash and cash equivalents

     6,201        7,024  

Marketable Securities

     3,853        2,044  

Trade accounts receivable

     2,746        2,455  

Inventories

     3,274        2,903  

Derivative financial instruments

     1,433        1,242  

Other current assets

     4,064        2,523  

Other non-current assets

     5,838        6,181  

Investments

     451        420  

Property, plant and equipment

     18,215        17,941  

Intangible assets

     21,109        20,999  

Total Assets

     67,184        63,732  

Loans and borrowings

     28,486        27,259  

Financial instruments and derivatives

     350        502  

Trade accounts payable

     4,167        3,715  

Payroll

     516        496  

Other current liabilities

     3,283        2,581  

Other non-current liabilities

     13,206        12,913  

Shareholders’ Equity

     17,175        16,266  

Total Liabilities

     67,184        63,732  

 

9 of 9

 

 


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: March 2, 2018

 

COSAN LIMITED
By:   /s/ Marcelo Eduardo Martins
 

Name: Marcelo Eduardo Martins

Title: Chief Financial Officer