Form
20-F
|
X
|
Form
40-F
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Yes
|
No
|
X
|
Item
|
||
1.
|
Communication regarding 2Q09
earnings release.
|
Quarterly Financial
Letter
|
||
2nd Quarter of Fiscal Year
2009 – August, September and
October
|
Devaluation of the real pushes up operating results | |||
§
|
This section
provides a summary of the quarterly performance of Cosan Ltd. (NYSE: CZZ),
the parent company of the Cosan Group. The financial information in this
section is therefore expressed in U.S. dollars and in accordance with U.S.
GAAP. For comparative purposes, the figures for the period prior to the
constitution of Cosan Ltd were prepared on a pro-forma basis based on
those of Cosan S.A. as if Cosan Ltd. had existed before the date of its
constitution. More information on the financial statements of Cosan Ltd.
is provided at the end of the section.
|
||
§
|
The 2Q’09 was
strongly impacted by the hefty devaluation of the Real and its effects on
Cosan’s exports. Thus, despite the sugar and ethanol stockpiling strategy
and the consequent year-on-year reduction in sales volume (5.9% for
ethanol and 9.2% for sugar), Cosan recorded net operating revenue of
US$383.8 million, 17.0% up on the 2Q’08.
|
||
§
|
While ethanol
prices remained flat over the 1Q’09 at US$1.66 per gallon, 41.6% up
year-on-year, sugar prices increased by 24.7% over the 2Q’08 to an average
13.52 ¢US$/lb.
|
||
ri@cosan.com.br
www.cosan.com.br
|
§
|
As revenue
growth was based entirely on higher prices and the behavior of the
exchange rate, the impact of the improved operating result was more than
proportional. Thus, while 2Q’09 gross profit moved up by 95.9%
year-on-year to US$63.6 million, period EBITDA jumped by 183.2% to
US$118.5 million, with a margin of
30.9%.
|
Summary of Financial and Operating
Information
|
||||
2Q'08
|
2Q'09
|
(In millions of U.S.
dollars)
|
YTD'08
|
YTD'09
|
2Q'08
|
2Q'09
|
(In millions of U.S.
dollars)
|
YTD'08
|
YTD'09
|
79.1
|
74.4
|
Ethanol Sold
(millions of gallons)
|
142.1
|
163.8
|
815.1
|
739.9
|
Sugar Sold
(thousand tonnes)
|
1,647.8
|
1,531.5
|
328.0
|
383.8
|
Net
sales
|
629.3
|
777.8
|
32.5
|
63.6
|
●
Gross profit
|
45.6
|
58.7
|
9.9%
|
16.6%
|
Gross Margin
|
7.2%
|
7.5%
|
(42.0)
|
(20.3)
|
●
Operating income (loss)
|
(91.0)
|
(114.6)
|
-12.8%
|
-5.3%
|
Operating margin
|
-14.5%
|
-14.7%
|
41.9
|
118.5
|
●
EBITDA
|
67.6
|
133.1
|
12.8%
|
30.9%
|
EBITDA Margin
|
10.7%
|
17.1%
|
23.8
|
(163.5)
|
●
Income (loss) before minority interest
|
26.0
|
(211.4)
|
17.7
|
(114.1)
|
● Net
income (loss)
|
18.9
|
(143.4)
|
5.4%
|
-29.7%
|
Profit (loss) Margin
|
3.0%
|
-18.4%
|
90.5
|
146.7
|
Capex
|
184.9
|
316.0
|
(215.4)
|
157.4
|
● Net
Debt
|
(215.4)
|
157.4
|
2,242.3
|
2,463.0
|
●
Shareholders' & Minorities Equity
|
2,242.3
|
2,463.0
|
§
|
Although the
devaluation had a substantial positive impact on the operating result, it
also led to non-cash adjustments from the restatement of
dollar-denominated debt, most of which is perpetual or with a 10-year
maturity. Thus, the higher EBITDA was more than offset by exchange-related
financial expenses of US$274.5 million, generating a net loss of US$114.1
million, versus net income of US$17.7 million in the
2Q’08.
|
||
§
|
Capex totaled
US$146.7 million, 62.2% up year-on-year, fueled by progress in Jataí,
Cosan’s first greenfield project, which is expected to begin operations in
the next harvest. Final work on the Bonfim and Gasa co-generation projects
also moved ahead, the latter having been completed in the quarter with the
initiation of energy billing.
|
Definitions:
FY’09
- fiscal year begun May 1, 2008 and
ending March 31, 2009
FY’08
- fiscal year begun May 1, 2008 and ending
April 30, 2008
2Q’09
- quarter ended October 31, 2008
4Q’08
- quarter ended October 31, 2007
YTD’09
- period begun on the same date as the
FY’09 and ended at the close of
the 2Q’09
YTD’08
- period begun on the same date as the
FY’08 and ended at the close of
the 2Q’08
|
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
§
|
In terms of
capital structure, Cosan closed the 2Q’09 with net debt of US$157.4
million, a negligible amount when set against shareholders’ equity and
minority interests of US$2.5 billion, and an exceptionally comfortable
cash position of US$969.5 million.
|
||
§
|
After the
close of the quarter, the Company successfully completed the transition
period for the acquisition of Esso’s Brazilian assets, which are now under
Cosan’s management. Consequently, the Company’s 3Q’09 figures will
consolidate the results of fuel and lubricant distribution and sales under
the Esso brand throughout Brazil beginning on the December 31, 2008
closing date of the transaction.
|
||
The major
asset of Cosan Ltd. on its constitution was its equity interest in Cosan
S.A. Its operating results are therefore substantially based on those of
its subsidiary, Cosan S.A.
Cosan Ltd.
uses the US$ as its reporting currency and the R$ as its functional
currency..
The financial
statements of Cosan Ltd. are drawn up primarily in US GAAP, while those of
its subsidiary Cosan S.A. are drawn up primarily in BR GAAP. The main
differences between the accounting practices of US GAAP and BR GAAP that
affect the results of Cosan Ltd. are::
·
evaluation of acquired companies at their fair market value instead
of their book value, increasing the value of fixed assets and,
consequently, depreciation expenses;
·
the non-existence of asset revaluation and, consequently,
depreciation of the revalued portion;
·
the non-existence of amortization of goodwill;
·
capitalization of interest on financings for fixed assets under
construction;
·
mark-to-market of hedge instruments recorded directly in the
result;
·
the booking of remuneration from the executives’ stock option plan
under general and administrative expenses;
·
the non-existence of deferred expenses; and
·
the booking of goods acquired through leasing under
assets
|
2 of 19
|
Quarterly Financial
Letter
|
||
2nd Quarter of Fiscal Year
2009 – August, September and
October
|
Paulo
Diniz,
CFO
& IRO
Luiz
Felipe Jansen de Mello,
Investor
Relations
Guilherme
A. Prado,
Treasury
Mauricio
Sartorelli,
Controller
|
EBITDA
grows 2.3 times in the wake of the currency
devaluation
|
||
§
|
Following the
guidance revision disclosed on October 9 last, the revenue of Cosan S.A.
(BOVESPA: CSAN3) was fueled by the devaluation of the Real, substantially
improving the operating results.
|
||
§
|
Despite the
continuation of the stockpiling strategy and, consequently, the
year-on-year reduction in sugar and ethanol sales volume of 10.2% and 7.8%
respectively, net operating revenue moved up by 14.0%, including the first
revenue from the Gasa electricity co-generation plant. However, the
biggest contribution came from the higher average sales prices, fueled by
the conversion of dollar prices to Reais. In the 2Q’09, ethanol averaged
R$826 per thousand liters, 30.3% up on the 2Q’08 average. Similarly,
average sugar prices moved up by 23.4% to R$554/t.
|
||
ri@cosan.com.br
www.cosan.com.br
|
§
|
The
reduction in the cost of goods sold was less than the drop in sales
volume, due mainly to the increase in depreciation. As a result EBITDA
jumped by 131.0% year-on-year to R$175.3 million, while the EBITDA margin
more than doubled to 24.5%. EBITDAH (adjusted for price locking and
currency hedges) moved up by a less spectacular but nonetheless healthy
24.9%, reaching R$178.3 million, accompanied by an EBITDAH margin of
24.8%.
|
|||||
2Q'08
|
2Q'09
|
Financial Highlights
(R$MM)
|
YTD'08
|
YTD'09
|
|||
627.5
|
715.1
|
Net
Operating Revenue
|
1,219.2
|
1,354.7
|
|||
76.4
|
167.9
|
Gross
Profit
|
120.1
|
181.5
|
|||
12.2%
|
23.5%
|
Gross
Margin
|
9.8%
|
13.4%
|
|||
75.9
|
175.3
|
EBITDA
|
125.4
|
200.0
|
|||
12.1%
|
24.5%
|
EBITDA
Margin
|
10.3%
|
14.8%
|
|||
142.7
|
178.3
|
EBITDAH
(Adjusted by Hedge)
|
276.1
|
248.2
|
|||
20.6%
|
24.8%
|
EBITDAH
Margin
|
20.2%
|
17.7%
|
|||
15.2
|
(380.7)
|
Net
Profit (Loss)
|
28.9
|
(438.8)
|
|||
2.4%
|
-53.2%
|
Net
Margin
|
2.4%
|
-32.4%
|
§
|
However, in
accounting terms, this exceptional operating result was more than offset
by non-cash financial expenses from the impact of the exchange variation
on dollar-denominated debt which totaled R$501.4 million, generating a
negative bottom-line of R$380.7 million. Of the total negative exchange
variation, R$219.5 million came from the US$400 million bond issue
maturing in 2017, and R$246.9 million from the US$450 million perpetual
bond issue. If we compare future export flows (around US$0.8 billion p.a.)
with the gross dollar debt, considering the latter’s long-term profile, we
can see that export flows are much higher, generating operating gains that
are substantially greater than this current non-cash
result.
|
Definitions:
FY’09
- fiscal year begun May 1, 2008 and
ending March 31, 2009
FY’08
- fiscal year begun May 1, 2008 and ending
April 30, 2008
2Q’09
- quarter ended October 31, 2008
4Q’08
- quarter ended October 31, 2007
YTD’09
- period begun on the same date as the
FY’09 and ended at the close of
the 2Q’09
YTD’08
- period begun on the same date as the
FY’08 and ended at the close of
the 2Q’08
|
3 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
A. Market Overview |
2008/09
harvest nears end with record crushing volume and maintenance of ethanol
bias
|
§
|
According to the
latest figures from UNICA, the sugarcane growers’ association, crushed
cane volume in the Central-South totaled 469 million tonnes by November
30, 12.31% up on the same period in 2007. Period
sugar production amounted to 25.36 million tonnes, 0.98% down
year-on-year, while ethanol output moved up by 18% to more than 23.08
billion liters. Of this total, hydrous accounted for 15.09 billion liters,
22.5% up year-on-year, and anhydrous reached 8 billion liters, up by
10.63%. Priority
was still being given to ethanol, which accounted for 61.92% of crushed
cane volume, while sugar accounted for 38.08%. The
harvest period is nearing its end and 43 plants had already concluded
crushing through November 30, versus 99 in the same period in the previous
season.
|
|
§
|
The 08/09
harvest recently got under way in India with expectations of a substantial
reduction in sugar output. The more conservative
estimates point to production of around 21 million tonnes while the more
aggressive ones are forecasting 19 million, versus 26 million in the
previous season.
Consequently, India‘s exports are likely to be well below the more
than 4 million tonnes shipped in the 07/08 harvest, creating more space
for Brazil’s sugar exports to the Middle East, where it faced strong
competition last year.
|
||
§
|
International
raw sugar prices averaged 12.54 ¢US$/lb in the 2Q’09, 29% up year-on-year
and 7.3% up on the 11.68 ¢US$/lb recorded in the 1Q’09. However, it is
worth noting that the depreciation of the Real more than offset the
international price slide caused by the worsening of the international
financial crisis. Raw sugar prices in Reais closed the 2Q’09 at
approximately 25.43 ¢R$/lb, 16.51% higher than in the 1Q’09, versus the
7.3% upturn in dollars. This tendency was further intensified recently as
a result of the continuous depreciation of the Real, as shown in the
adjacent chart.
|
||
Raw Sugar Prices – Last 24 Months
(NY11)
|
|||
Source: NYBOT & CFTC (Commodities Futures Trading Commission) |
Big
reduction in the number of open contracts due
to flight from the commodities market
|
§
|
In the 2Q’09,
major hedge funds, plus smaller funds and speculators, maintained the
previous quarter’s trend, reducing their net long positions by 33%, from
130,000 lots at the beginning of August to around 87,000 at the close of
October, equivalent to 14% of all open contracts. It is also worth noting
that the number of open contracts fell substantially, from around 780,000
lots to 640,000, a drop of around 18%, higher than the 15% reduction
recorded in the previous
|
4 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
|
quarter. This
decline was chiefly due to the increase in the number of redemptions in
recent months by holders of shares in commodity funds, especially index
funds, which had to liquidate their
positions.
|
Funds Position (volume%) vs. Price
NY11 (cents/pound)
|
|||
Source: NYBOT & CFTC (Commodities Futures Trading Commission) |
§
|
Refined sugar
prices on the international market averaged US$369.18/t, 32.4% up on the
U$278.73/t recorded in the 2Q’08 and 3.6% higher than the quarter before.
The white premium closed the 2Q’09 at U$68/t, 20% down on the
1Q’09.
|
||
Strong
reduction in international freight charges thanks to the slide in oil
prices
|
§
|
International
freight costs dropped sharply as a result of the decline in oil prices and
the global credit crisis. The Baltic Exchange Dry Index fell to less than
1,000 points, versus 3,000 in October and a peak of 11,500 in mid-March,
fueling Brazilian sugar exports in the past two months, particularly to
Southeast Asia which had been primarily supplied by
Thailand.
|
Refined Sugar Prices – Last 24
Months (LIFFE no
5)
|
|||
Source: LIFFE |
§
|
Domestic
crystal sugar prices (ESALQ) averaged R$30.35/50kg bag (or R$606.98/t) in
the 2Q’09, versus R$24.71/50kg bag (or R$494.16/t) in the 2Q’08. In
relation to the previous quarter, crystal sugar prices moved up by
13.5%.
|
5 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Crystal Sugar Prices - Last 24
Months (ESALQ 50kg bags)
|
|||
Source: ESALQ |
§
|
Domestic
hydrous ethanol prices (ESALQ) averaged R$0.732/liter in the 2Q’09, 26% up
on the R$0.889/liter recorded in the same period the year before, while
anhydrous prices climbed 34.2% year-on-year to R$0.890/liter. In relation
to the previous three months, hydrous moved up by 4.7% and anhydrous by
8.2%.
|
||
§
|
The gap
between hydrous and anhydrous prices widened in the 2Q’09 and reached more
than R$190/m3 in
the first week of November. This was due to the huge volume of anhydrous
exports in the second half of this year and the heavy harvest rainfall,
which favored hydrous output to the detriment of
anhydrous.
|
||
§
|
Ethanol
exports through October totaled 3.4 billion liters, a hefty 74% up
year-on-year, led by the US, with 1.2 billion liters, followed by the EU,
with 867 million liters, and the CBI countries, with 630 million liters.
Exports should reach a new record this harvest, exceeding 4 billion
liters.
|
Ethanol Prices - Last 24
Months (ESALQ)
|
|||
Source: ESALQ |
Ethanol
remains competitive vis-à-vis gasoline in most Brazilian
states
|
§
|
According to
Brazil’s National Petroleum Agency (ANP), domestic retail gasoline prices
averaged R$2.4780/liter at the end of the 2Q’09, while hydrous ethanol
averaged R$1.540/liter, giving a parity of 62.1%. Ethanol prices only
exceeded 75% of gasoline prices in four Brazilian states (Amapá, Roraima,
Pará and Sergipe). In São Paulo state, the country’s largest consumption
center, the ratio stood at only
54.5%.
|
6 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
§
|
Ethanol
consumption remains buoyant throughout the country. According to the ANP,
hydrous consumption moved up 45% year-on-year between January and October,
while 2Q’09 sales totaled 5.1 billion liters – 3.5 billion liters of
hydrous and 1.6 billion liters of anhydrous – versus 4.9 billion liters of
gasoline in the same period last year.
|
||
§
|
Flex-fuel
vehicle sales through October exceeded the total for the entire year of
2007, reflecting the excellent performance of Brazil’s auto manufacturing
industry in 2008. However, sales figures for the first half of November
are already indicating a strong decline due to the economic uncertainties
and the credit squeeze. As a result, the government has allocated R$4
billion to the industry to facilitate financing and prop up
sales.
|
||
§
|
According to
Anfavea, the auto manufacturers’ association, new car sales totaled
710,000 units in the 2Q’09, while those of flex-fuel cars exceeded 616,00
units, equivalent to 87% of the total. The current flex-fuel fleet exceeds
7 million vehicles, 27% of the total
fleet.
|
Exchange Rate Evolution - Last 24
Months (R$/US$)
|
|||
Source: BACEN |
Depreciation
of the Real exceeds 35% in the quarter
|
§
|
The global
financial crisis put an end to the downward price trajectory of the U.S.
dollar against the world’s other leading currencies. The dollar closed the
2Q’09 at R$2.1153 / US$, 35% up on the end of the previous quarter, and
moved up even further thereafter, occasionally exceeding R$2.50 /
US$.
|
|
B. Operating Performance | |||
§
|
Cosan closed
the 2Q’09 with an EBITDAH margin of 24.8%, although the bottom line was
still negative due to financial expenses with exchange variation caused by
the strong period depreciation of the Real against the U.S. dollar.
However, this devaluation also led to a substantial improvement in the
quarterly operating result due to better sugar and ethanol
prices.
|
7 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
2Q'08
|
2Q'09
|
Income
Statement (R$MM)
|
YTD'08
|
YTD'09
|
627.5
|
715.1
|
Net
Operating Revenue
|
1,219.2
|
1,354.7
|
(551.1)
|
(547.1)
|
Cost of Goods
Sold
|
(1,099.1)
|
(1,173.2)
|
(139.0)
|
(176.7)
|
with
Depreciation & Amortization
|
(264.4)
|
(333.9)
|
76.4
|
167.9
|
Gross
Profit
|
120.1
|
181.5
|
12.2%
|
23.5%
|
Gross
Margin
|
9.8%
|
13.4%
|
(91.9)
|
(88.6)
|
Selling
Expenses
|
(153.0)
|
(174.3)
|
(45.5)
|
(66.5)
|
General &
Adm. Expenses
|
(102.5)
|
(126.2)
|
(2.0)
|
(14.2)
|
Other
Operating Expenses
|
(3.5)
|
(14.8)
|
75.9
|
175.3
|
EBITDA
|
125.4
|
200.0
|
12.1%
|
24.5%
|
EBITDA
Margin
|
10.3%
|
14.8%
|
142.7
|
178.3
|
EBITDAH
(Adjusted by Hedge)
|
276.1
|
248.2
|
20.6%
|
24.8%
|
EBITDAH
Margin
|
20.2%
|
17.7%
|
144.3
|
(540.8)
|
Net Financial
Expenses
|
295.2
|
(453.8)
|
0.0
|
1.2
|
Equity
Income
|
0.1
|
1.4
|
(56.6)
|
(40.4)
|
Goodwill
Amortization
|
(112.6)
|
(80.8)
|
2.3
|
(15.8)
|
Other
Non-Operat.Result/Extraordinary
|
5.2
|
(11.3)
|
26.9
|
(597.1)
|
Profit
Before Income Tax
|
49.0
|
(678.4)
|
(12.3)
|
210.0
|
Income
Tax
|
(21.4)
|
232.4
|
0.7
|
6.5
|
Minority
Interests
|
1.3
|
7.3
|
15.2
|
(380.7)
|
Net
Profit (Loss)
|
28.9
|
(438.8)
|
2.4%
|
-53.2%
|
Net
Margin
|
2.4%
|
-32.4%
|
Quarterly
exports boosted by exchange rate
|
§
|
Following
several quarters of appreciation, the Real fell sharply in the 2Q’09. As a
result, the revenue share of exports in Reais reversed its previous
downward trajectory, increasing from 56.4%, in the 2Q’08, to 70.2%. In
terms of product mix, however, there was very little change, with 57.3% of
revenue coming from sugar sales, 32.6% from ethanol sales and 10.1% from
the sale of other products and
services
|
2Q'08
|
2Q'09
|
Sales Composition
(R$MM)
|
YTD'08
|
YTD'09
|
627.5
|
715.1
|
Net
Operating Revenue
|
1,219.2
|
1,354.7
|
369.7
|
409.7
|
Sugar
Revenue
|
741.5
|
762.1
|
65.7
|
57.2
|
Local
|
123.0
|
115.1
|
304.0
|
352.5
|
Export
|
618.5
|
647.0
|
193.8
|
232.8
|
Ethanol
Revenue
|
362.7
|
474.6
|
148.3
|
89.3
|
Local
|
268.4
|
249.3
|
45.5
|
143.5
|
Export
|
94.3
|
225.2
|
64.0
|
72.6
|
Other
Revenue
|
115.0
|
118.0
|
59.8
|
66.3
|
Local
|
106.5
|
108.2
|
4.2
|
6.4
|
Export
|
8.5
|
9.9
|
§
|
Sugar sales in
the 2Q’09 grew by 10.8%, with domestic sales recording a decline and
exports moving up. This result was achieved despite a 10.2% year-on-year
reduction in sales volume to 739.900t, thanks to the substantial increase
in prices. The combined effect of the appreciation of the Real and the
market price hikes pushed up sugar prices to an average R$554/t
(12.54 ¢US$/lb), 23.4% up on the R$449/t (9.72 ¢US$/lb) recorded in the
2Q’08. Sugar
inventories closed the 2Q’09 at 1,173 thousand tones, 6.6% up
year-on-year.
|
2Q'08
|
2Q'09
|
Sugar
Business
|
YTD'08
|
YTD'09
|
||
Volume
Sold (thousand tons)
|
||||||
823.9
|
739.9
|
Total
Local & Export
|
1,666.0
|
1,531.5
|
||
130.2
|
92.2
|
Local
|
234.5
|
196.4
|
||
693.7
|
647.7
|
Export
|
1,431.6
|
1,335.1
|
||
Average
Unit Price (R$/ton)
|
||||||
449
|
554
|
Total
Local & Export
|
445
|
498
|
||
505
|
620
|
Local
|
525
|
586
|
||
438
|
544
|
Export
|
432
|
485
|
8 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Ethanol
exports exceed
domestic sales for the first time
|
§
|
Ethanol
revenue climbed by 20.1%, leveraged by record exports. For the first time,
foreign sales exceeded domestic sales, accounting for 61.6% of the total,
a massive year-on-year upturn of 215.4%. As with sugar, this outstanding
result was generated thanks to higher prices, given that sales volume fell
by 7.8% to 281.7 million liters, leading to closing stocks of 817.8
million liters, 14.1% up on the end of the 2Q’08. Thanks to the exchange
rate and domestic anhydrous prices, ethanol averaged R$826 per 1,000
liters, 30.3% higher than the 2Q'08
average.
|
2Q'08
|
2Q'09
|
Ethanol
Business
|
YTD'08
|
YTD'09
|
||
Volume
Sold (million liters)
|
||||||
305.6
|
281.7
|
Total
Local & Export
|
550.6
|
620.2
|
||
242.4
|
114.3
|
Local
|
416.9
|
337.9
|
||
63.2
|
167.4
|
Export
|
133.7
|
282.3
|
||
Average
Unit Price (R$/thousand liters)
|
||||||
634
|
826
|
Total
Local & Export
|
659
|
765
|
||
612
|
781
|
Local
|
644
|
738
|
||
720
|
857
|
Export
|
705
|
798
|
§
|
Revenue from
other products and services totaled R$72.6 million, 13.5% up on the R$64.0
million recorded in the 2Q’08. Growth was mainly fueled by R$6.1 million
in energy sales by the Gasa unit’s new company-generation
plant.
|
||
Stable COGS, with lower
volume offset by higher unit cost
|
§
|
The cost of
goods sold and services rendered dipped by 0.7% to R$547.1 million, mainly
due to lower sales volume (-9.1% in sugar-equivalent terms compared with
the 2Q’08), despite pressure from the 7.2% unit cost
increase.
|
|
§
|
Most of the
latter variation came from the 3.9% reduction in sucrose content (ATR) in
cane production, from 143.7 kg per tonne of cane in the 07/08
harvest to 138.7 kg/t in the 08/09 season. In addition, the price of the
ATR acquired from third parties moved up by 6.0%, from R$0.2420/kg at the
end of October 2008 to R$0.2566/kg at the close of the 2Q’09, due to the
increase in the Consecana price caused by the recovery of sugar and
ethanol prices. This raised total cane costs by 3%, from R$ 44.92/t to
R$46.31/t.
|
||
§
|
Another
important factor was the reduction in processed cane volume from 17.6
million tonnes to 16.8 million, chiefly due to more time lost to rain in
the 2Q’09.
|
2Q'08
|
2Q'09
|
COGS per
Product
|
YTD'08
|
YTD'09
|
(551.1)
|
(547.1)
|
Cost
of Good Sold (R$MM)
|
(1,099.1)
|
(1,173.2)
|
(310.6)
|
(299.2)
|
Sugar
|
(663.5)
|
(639.7)
|
(190.9)
|
(189.4)
|
Ethanol
|
(354.8)
|
(432.1)
|
(49.6)
|
(58.5)
|
Other
Products/Services
|
(80.8)
|
(101.4)
|
Average
Unit Cost (R$)
|
||||
377
|
404
|
Unit
COGS of Sugar (R$/ton)
|
398
|
418
|
625
|
672
|
Unit
COGS of Ethanol (R$/thousand liters)
|
644
|
697
|
n.a.
|
n.a.
|
Unit
COGS of Other Produtcs/Services
|
n.a.
|
n.a.
|
Selling
expenses move up due to higher ethanol exports
|
§
|
Selling
expenses totaled R$88.6 million, 3.6% down year-on-year. In unit
sugar-equivalent terms, however, this corresponds to R$73/t, 6.0% up on
the R$69/t recorded in the 2Q’08, basically due to the alteration in the
ethanol sales mix from 80:20 in favor of the domestic market in the 2Q’08
to 60:40 in favor of the export market in the 2Q’09. As a result, ethanol
export logistics expenses played a major role in increasing the unit cost
of freight to the port by R$60/m3
and port loading costs by R$21.7/m3.
|
2Q'08
|
2Q'09
|
Selling
Expenses
|
YTD'08
|
YTD'09
|
(91.9)
|
(88.6)
|
Expenses
(R$MM)
|
(153.0)
|
(174.3)
|
1,328.4
|
1,207.7
|
Volume
(10³ tons of sugar-equivalent)
|
2,574.6
|
2,559.9
|
69
|
73
|
Unitary
Expense (R$/ton)
|
59
|
68
|
9 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
§
|
G&A
expenses totaled R$66.5 million in the 2Q’09, representing 9.3% of net
revenue, 49.9% up on the R$45.5 million recorded in the 2Q’08, chiefly due
to the hiring of the entire cane-cutting workforce directly by Cosan under
the CLT (registered salary) system, thereby cutting out sub-contractors;
and improvements to the Company’s IT and telecommunications
systems.
|
2Q'08
|
2Q'09
|
General & Administrative
Expenses
|
YTD'08
|
YTD'09
|
(45.5)
|
(66.5)
|
Expenses
(R$MM)
|
(102.5)
|
(126.2)
|
1,328.4
|
1,207.7
|
Volume
(10³ tons of sugar-equivalent)
|
2,574.6
|
2,559.9
|
34
|
55
|
Unitary
Expense (R$/ton)
|
40
|
49
|
§
|
Other
operating expenses amounted to R$13.6 million, mainly non-cash provisions
for tax contingencies.
|
||
Exchange
variation influences the 2Q’09 financial result
|
§
|
The Company
posted a negative net financial result, chiefly due to the big devaluation
of the Real against the US dollar. The resulting restatement of
dollar-denominated debt generated exchange losses of around R$501.4
million, versus revenue of R$146.0 million in the
2Q’08.
|
2Q'08
|
2Q'09
|
Financial Expenses, Net
(R$MM)
|
YTD'08
|
YTD'09
|
(55.0)
|
(43.2)
|
Interest
on Financial Debt
|
(110.5)
|
(81.0)
|
20.8
|
27.0
|
Financial
Investments Income
|
44.1
|
47.0
|
(34.2)
|
(16.1)
|
Sub-total:
Interest on Net Financial Debt
|
(66.4)
|
(34.1)
|
2.8
|
(25.8)
|
Other
interest and monetary variation
|
(20.9)
|
(67.4)
|
146.0
|
(501.4)
|
Exchange
Variation
|
274.5
|
(399.8)
|
66.8
|
3.0
|
Gains
(losses) with Derivatives
|
150.6
|
48.2
|
(18.5)
|
(0.4)
|
CPMF
Taxes, Banking Fees and Other
|
(24.1)
|
(0.8)
|
(30.2)
|
-
|
Premium
Paid in Bond Tender Offer
|
(30.2)
|
-
|
11.5
|
-
|
Interest
on Indemnity from Government
|
11.5
|
-
|
144.3
|
(540.8)
|
Net
Financial Expenses
|
295.2
|
(453.8)
|
§
|
Unlike in the
2Q’08, derivative transactions only made a very limited contribution to
financial revenue. Commodity derivatives generated gains of R$17.5
million, versus gains of R$56.9 million last year, while FX derivatives
generated losses of R$14.5 million, versus gains of R$40.1 million in the
2Q’08. In addition, in the 2Q’08 the Company recorded losses of R$30.1
million in derivatives from the accounting reclassification, subsequently
adjusted in the 3Q’08.
|
||
§
|
At the close
of the 2Q’09, Cosan had 1,130.4 thousand tonnes of VHP sugar tied to the
NY11, hedged at an average price of 13.68 ¢US$/lb, position that,
marked-to-market, results in an estimated positive value of R$84.9
million. It also had US$233.4 million hedged at an average exchange rate
of R$1.90/US$, with an estimated negative market value of R$97.9 million.
This includes a US$694.8 million short position at an average price of
R$1.93/US$ and an estimated negative market value of R$196.5 million, to
protect future export flows, and a US$461.2 million long position at an
average price of R$1.95 and an estimated positive market value of R$98.6
million to settle dollar-denominated debt, especially that related to the
Esso acquisition.
|
|
§
|
The increase
in expenses from other interest and monetary variations on contingent and
fiscal liabilities chiefly reflected the above-mentioned R$30.1 million
accounting reclassification of derivative losses in the 2Q’08,
subsequently corrected in the 3Q08.
|
|
§
|
Expenses from
goodwill amortizations fell by 28.6% in line with the amortization
schedules in the financial statements. The positive income and social
contribution tax result reflected the appropriation of tax credits,
chiefly on exchange expenses which contaminated the
result.
|
|
§
|
All in all,
Cosan recorded a 2Q’09 net loss of R$380.7 million. However, it is worth
noting that this figure includes R$501.4 million in losses from the impact
of
|
10 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
|
the exchange
variation on dollar-denominated debt, most of which long-term or
perpetual, which had no effect on the Company’s cash.
|
||
C.
Financial Situation
|
§
|
The Company
closed the 2Q’09 with gross financial debt of R$2,400.3 million, well
above the R$1,778.0 million reported at the end of the 2Q’08, chiefly due
to the 21.3% year-on-year increase in the end-of-period exchange rate,
BNDES funding to finance the co-generation programs and advances on export
contracts (ACCs) to strengthen liquidity. However, net debt, taking cash
and cash equivalents into consideration, fell by 48.8%, from R$1,636.4
million, in the 2Q’08, to R$837.5
million.
|
Debt per Type
(R$MM)
|
2Q'08
|
%
|
2Q'09
|
%
|
Var.
|
BNDES
|
-
|
-
|
191.7
|
8.0
|
191.7
|
Senior
Notes 2009
|
71.4
|
4.0
|
75.7
|
3.2
|
4.4
|
Senior
Notes 2017
|
709.7
|
39.9
|
860.8
|
35.9
|
151.1
|
Perpetual
Notes
|
800.2
|
45.0
|
970.6
|
40.4
|
170.4
|
FX
Advances
|
-
|
-
|
127.6
|
5.3
|
127.6
|
Finame
(BNDES)
|
12.5
|
0.7
|
10.1
|
0.4
|
(2.3)
|
Working
Capital
|
38.6
|
2.2
|
28.5
|
1.2
|
(10.1)
|
IFC
|
114.2
|
6.4
|
116.0
|
4.8
|
1.8
|
Pre-Export
Contracts
|
31.5
|
1.8
|
19.3
|
0.8
|
(12.2)
|
Promissory
Notes
|
-
|
-
|
-
|
-
|
-
|
Gross
Debt
|
1,778.0
|
100.0
|
2,400.3
|
100.0
|
622.3
|
Cash
& Marketable Securities
|
141.6
|
8.0
|
1,562.8
|
65.1
|
1,421.2
|
Net
Debt
|
1,636.4
|
92.0
|
837.5
|
34.9
|
(798.9)
|
§
|
Thanks to the
two new funding operations (BNDES loan and the ACCs), the profile of the
debt changed, with the short-term portion increasing to 12.4% at the close
of the quarter, although still low. Most of the debt was still
dollar-denominated, but the Real-indexed portion moved up due to the BNDES
funding.
|
Debt Profile
(R$MM)
|
2Q'08
|
%
|
2Q'09
|
%
|
Var.
|
Total
Debt
|
1,778.0
|
100.0
|
2,400.3
|
100.0
|
622.3
|
Short-Term
|
99.6
|
5.6
|
298.6
|
12.4
|
199.1
|
Long-Term
|
1,678.5
|
94.4
|
2,101.7
|
87.6
|
423.2
|
Real
- R$
|
51.1
|
2.9
|
357.9
|
14.9
|
306.8
|
Dollar
- US$
|
1,726.9
|
97.1
|
2,042.4
|
85.1
|
315.5
|
D.
Investments
|
§
|
Cosan’s 2Q’09
operating capex totaled R$304.7 million, 122.8% up year-on-year.
Non-operating investments came to R$19.9 million, primarily R$15.4 million
in deferred assets from pre-operating expenses in the
bioenergy facilities, in Jataí, and in preparations for the
acquisition of Esso.
|
2Q'08
|
2Q'09
|
Capex (R$MM)
|
YTD'08
|
YTD'09
|
0.3
|
4.4
|
New
Investments, including Goodwill
|
4.2
|
5.2
|
0.4
|
15.4
|
Deferred
Charges & Other
|
0.6
|
26.9
|
49.6
|
24.6
|
Sugar
Cane Planting Costs
|
105.8
|
79.5
|
26.5
|
127.3
|
Co-generation
Projects
|
54.0
|
168.9
|
-
|
14.7
|
Inter-harvest
Maintenance Costs
|
3.6
|
14.7
|
60.6
|
138.1
|
Investments
in P,P&E
|
143.8
|
294.9
|
137.5
|
324.6
|
Capex
|
311.9
|
590.1
|
136.8
|
304.7
|
Operating
Capex
|
307.1
|
558.1
|
11 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
§
|
The Company
reduced its new planted area to 5,739 hectares, 52% less than in the
1Q’08; consequently, planting capex fell from R$49.8 million to R$ 24.6
million in the same period.
|
||
§
|
Co-generation
absorbed R$128.9 million, most of which went to the Gasa and Bonfim units.
The Gasa plant already sold energy during the quarter, generating revenue
of R$6.1 million. Cosan is finalizing the Costa Pinto, Rafard, Bonfim and
Gasa projects and is planning the initiation of investments in Diamante,
Univalem and Barra, all of which already have energy sale
contracts.
|
||
§
|
Inter-harvest
maintenance costs refer to the advanced purchase of equipment to be used
for industrial maintenance in the inter-harvest period beginning in
January 2009. These acquisitions were brought forward in order to prevent
possible equipment delivery delays and a subsequent postponement of the
beginning of the next harvest as well as to reduce the risk of crushing
stoppages due to lack of maintenance. In addition, thanks to the state of
the market, purchase bargaining conditions were exceptionally
favorable.
|
||
§
|
Investments in
fixed assets included R$113.3 million in the Jataí greenfield project,
corresponding to the initiation of the electro-mechanical assembly work
and the advanced stage of construction. By the close of the quarter, the
project had absorbed a total of R$275.5 million.
|
||
§
|
Other
important investments included: (i) R$8.0 million in the conclusion of new
ethanol tankage assets in Ipaussu, Bonfim, Barra and Gasa; (ii) R$3.0
million in the construction of pipelines to carry vignasse to
the plantations for environmental reasons and to reduce dependence on
fertilizers; (iii) R$8.6 million in mechanization, including new
harvesters, tractors, implements and trucks for agricultural operations in
the various units; (iv) the conclusion of the installation of a boiler in
Univalem, allowing the supply of steam to third parties (fixed client and
contracted steam); and (v) the renewal and upgrading of fermentation tanks
in Univalem, reducing process costs and
losses.
|
E.
Material Facts
|
§
|
In the 2Q’09,
the Company entered into 7 new energy trading contracts through its Gasa,
Bonfim, Barra, Jataí, Univalem, Diamante and Paraúna units. These biomass
co-generation contracts will last for 15-years and were established by
bilateral agreements and through energy auctions held by the federal
government. Including previous contracts by the Costa Pinto, Rafard and
Bonfim units, the total volume of energy contacted from the Company comes
to approximately 28,000,000 MWh, equivalent to around R$ 4.3 billion at
current values.
|
||
§
|
On December 1,
2008, Cosan became the first integrated renewable energy company by
finalizing the acquisition of Esso Brasileira de Petróleo Ltda.
("Essobrás"), which holds the marketing and distribution of fuels and
production and marketing of lubes and specialties assets of ExxonMobil in
Brazil. Ranked among the four largest fuel distribution companies in
Brazil, Essobrás has a nationwide network of more than 1,500 gas stations
and 40 distribution centers and annual sales of more than 5 billion liters
of ethanol, gasoline and diesel, 160 million m3 of
VNG and 127,000 m3 of lubricants. The
acquisition was concluded through the payment of US$ 715 million to
ExxonMobil International Holdings B.V., which retained 100% of the
companies holding ExxonMobil’s downstream assets in Brazil, plus the
assumption of US$ 175 million in debt.
|
||
§
|
In order to
finance the acquisition of Esso Brasileira Petróleo Ltda., on September 19
a stand-by loan of US$ 500 million from Banco Bradesco S.A. was approved
(in R$ equivalent). The funds were accessed through a public
|
12 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
|
issue of
commercial promissory notes in the amount of R$ 1.1 billion, entirely
subscribed by the agent bank at the rate of DI + 3% p.a. for 360
days.
|
§
|
On September
19, the Company announced a Cosan S.A. capital increase in the amount of
R$ 880 million through the issue of 55,000,000 new shares at R$ 16.00
each. In addition, subscribers were granted 1 common stock warrant
for each new share subscribed, entitling their holders the right to
subscribe to 0.6 common shares each up to the end of 2009. On the same
date, Cosan Limited declared its intention of subscribing all the shares,
respecting minority interests. The issue was wound up on November 10,
Cosan Limited having subscribed 54,993,482 shares, equivalent to R$
879,895,712.00. Minority shareholders manifesting an interest in
subscribing to the unsubscribed shares could, together with Cosan Limited,
increase their holdings in the Company.
|
||
§
|
In October, a
private subscription was announced involving US$ 50 million by the
controlling shareholder, Rubens Ometto Silveira Mello, and up to US$ 150
million by the funds managed by Gávea Investimentos Ltda, at US$ 4.50 per
class A share or BDR subscribed. The offering was extended to all class A
share or BDR holders, respecting the respective legislation of each
jurisdiction. The offering was concluded on October 27, with the issue of
44,444,529 new class A shares and/or BDRs subscribed by the Gávea funds,
Rubens Ometto Silveira Mello and other class A share and/or BDR holders.
As a result, the controlling group retained 41.5% of the Company’s total
capital and 86.1% of its voting capital. The proceeds from the placement
will be used to strengthen the Cosan group‘s capital structure, providing
a platform for its expansion projects, possible future acquisitions and
other corporate ends.
|
F.
Guidance for the
FY’09
|
§
This guidance was
prepared without considering the effects of Esso’s possible
consolidation on Cosan’s
financial statements.
§
Also excluded is
the anticipation of the end of Cosan’s fiscal year to March 31
approved by the Annual and Extraordinary General Meeting of August
29,resulting in an FY’09 of only 11
months.
|
§
|
This section
presents guidance by range of variation for the same key parameters for
the company, including non-relevant variations below 5%, medium variations
of up to 15%, material variations of up to 30% and significant variations
of over 30%. In addition, other statements within this letter may be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Act of 1934 as
well as amendments to same. Such forward-looking statements are only
predictions and are not guarantees of future performance. Investors are
cautioned that any such forward-looking statements are subject to various
risks, uncertainties and factors related to the market and operations of
Cosan and its subsidiaries that may cause the actual results of the
Company to be significantly different from any future results expressed or
implied by such predictions. Although Cosan believes that the expectations
and assumptions reflected in the forward-looking statements are fair,
based on information currently available to its management, it cannot
guarantee future results or events. Cosan also expressly disclaims any
responsibility for updating any of the forward-looking
statements.
|
13 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Guidance
|
2007FY
|
2008FY
|
2009FY
|
Changes
from previous guidance |
||
FX Rate - EoP
(R$:US$)
|
2.0339
|
1.6872
|
▲▲▲
|
=
|
||
Crushed Cane
Volume (thousand tons)
|
36,157
|
40,315
|
▲
|
▲
|
||
Sugar Volume
Sold (thousand tons)
|
3,241
|
3,147
|
▲
|
▲
|
||
Ethanol Volume
Sold (million liters)
|
1,322
|
1,568
|
▲
|
▲
|
||
Avg. Sugar
Price (R$/ton)
|
683
|
454
|
▲▲▲
|
▲
|
||
Avg Ethanol
Price (R$/thousand liter)
|
897
|
714
|
▲▲
|
▲
|
||
Revenues
(R$MM)
|
3,605
|
2,736
|
▲▲▲
|
▲▲
|
||
COGS
(R$MM)
|
2,481
|
2,387
|
▲▲
|
▲▲
|
||
EBITDA
(R$MM)
|
928
|
173
|
▲▲▲
|
▲▲▲
|
||
EBITDAH
(R$MM)
|
854
|
398
|
▲▲▲
|
▲
|
||
Net
Profit/Loss (R$MM)
|
357
|
(48)
|
▼▼▼
|
▼▼▼
|
||
Operating
Capex (R$MM)
|
684
|
1,051
|
▲
|
▲▲
|
14 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Income
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In million of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Gross
Operating Revenue
|
2,702.4 | 3,902.9 | 2,978.6 | 1,048.5 | 755.4 | 636.4 | 678.3 | 747.5 | 916.4 | 692.7 | 760.1 | |||||||||||||||||||||||||||||||||
(-)
Sales
Taxes and Deductions
|
(224.5 | ) | (297.8 | ) | (242.5 | ) | (77.7 | ) | (73.3 | ) | (44.7 | ) | (50.8 | ) | (73.5 | ) | (73.4 | ) | (53.1 | ) | (45.0 | ) | ||||||||||||||||||||||
(=)
Net Operating Revenue
|
2,477.9 | 3,605.1 | 2,736.2 | 970.8 | 682.1 | 591.7 | 627.5 | 674.0 | 843.0 | 639.6 | 715.1 | |||||||||||||||||||||||||||||||||
(-) Cost of Goods Sold and Services Rendered | (1,721.3 | ) | (2,481.1 | ) | (2,387.1 | ) | (680.2 | ) | (511.8 | ) | (548.0 | ) | (551.1 | ) | (594.4 | ) | (693.6 | ) | (626.0 | ) | (547.1 | ) | ||||||||||||||||||||||
(=) Gross Profit | 756.6 | 1,123.9 | 349.0 | 290.6 | 170.3 | 43.7 | 76.4 | 79.6 | 149.4 | 13.6 | 167.9 | |||||||||||||||||||||||||||||||||
Margin
|
30.5 | % | 31.2 | % | 12.8 | % | 29.9 | % | 25.0 | % | 7.4 | % | 12.2 | % | 11.8 | % | 17.7 | % | 2.1 | % | 23.5 | % | ||||||||||||||||||||||
(-) Operating Income (Expenses): | (819.1 | ) | (558.6 | ) | (428.0 | ) | (196.7 | ) | 98.9 | (24.6 | ) | (51.8 | ) | (186.1 | ) | (165.5 | ) | (99.4 | ) | (771.3 | ) | |||||||||||||||||||||||
(-) Selling | (217.1 | ) | (282.0 | ) | (301.3 | ) | (71.2 | ) | (75.2 | ) | (61.1 | ) | (91.9 | ) | (73.4 | ) | (74.9 | ) | (85.7 | ) | (88.6 | ) | ||||||||||||||||||||||
(-) General and Administrative | (150.0 | ) | (246.2 | ) | (210.2 | ) | (52.8 | ) | (97.7 | ) | (57.0 | ) | (45.5 | ) | (49.9 | ) | (57.7 | ) | (59.7 | ) | (66.5 | ) | ||||||||||||||||||||||
(-) Financial Income (Expenses), Net | (245.2 | ) | 158.0 | 284.3 | (17.6 | ) | 333.6 | 150.8 | 144.3 | (11.9 | ) | 1.0 | 86.9 | (540.8 | ) | |||||||||||||||||||||||||||||
(±) Earnings (Losses) on Equity Investments | 0.6 | (0.1 | ) | 6.6 | 0.1 | (0.5 | ) | 0.1 | 0.0 | 0.1 | 6.4 | 0.2 | 1.2 | |||||||||||||||||||||||||||||||
(-) Goodwill Amortization | (142.8 | ) | (223.7 | ) | (201.4 | ) | (55.9 | ) | (55.9 | ) | (56.0 | ) | (56.6 | ) | (48.2 | ) | (40.6 | ) | (40.4 | ) | (40.4 | ) | ||||||||||||||||||||||
(±) Other Operating Income (Expenses), Net | (11.8 | ) | 35.3 | (6.0 | ) | 0.7 | (5.4 | ) | (1.5 | ) | (2.0 | ) | (2.7 | ) | 0.3 | (0.6 | ) | (14.2 | ) | |||||||||||||||||||||||||
(-) Expenses with Placement of Shares | (52.8 | ) | - | - | - | - | - | - | - | - | - | (22.1 | ) | |||||||||||||||||||||||||||||||
(=) Operating Income (Loss) | (62.5 | ) | 565.3 | (79.0 | ) | 93.9 | 269.1 | 19.1 | 24.6 | (106.6 | ) | (16.1 | ) | (85.8 | ) | (603.4 | ) | |||||||||||||||||||||||||||
Margin
|
-2.5 | % | 15.7 | % | -2.9 | % | 9.7 | % | 39.5 | % | 3.2 | % | 3.9 | % | -15.8 | % | -1.9 | % | -13.4 | % | -84.4 | % | ||||||||||||||||||||||
(±) Non-operating Result, Net | (1.0 | ) | 2.0 | 10.0 | 0.1 | 0.4 | 3.0 | 2.3 | 1.1 | 3.7 | 4.5 | 6.2 | ||||||||||||||||||||||||||||||||
(=) Income (Loss) before Taxes | (63.5 | ) | 567.3 | (69.0 | ) | 94.0 | 269.5 | 22.1 | 26.9 | (105.5 | ) | (12.4 | ) | (81.3 | ) | (597.1 | ) | |||||||||||||||||||||||||||
(±) Income and Social Contribution Taxes | 5.8 | (203.9 | ) | 18.7 | (30.0 | ) | (102.5 | ) | (9.0 | ) | (12.3 | ) | 33.5 | 6.6 | 22.4 | 210.0 | ||||||||||||||||||||||||||||
(±) Minority Interest | (6.9 | ) | (6.2 | ) | 2.5 | (0.6 | ) | (2.3 | ) | 0.6 | 0.7 | 0.6 | 0.5 | 0.8 | 6.5 | |||||||||||||||||||||||||||||
(=) Net Income (Loss) for the Year | (64.6 | ) | 357.3 | (47.8 | ) | 63.4 | 164.7 | 13.7 | 15.2 | (71.4 | ) | (5.3 | ) | (58.1 | ) | (380.7 | ) | |||||||||||||||||||||||||||
Margin
|
-2.6 | % | 9.9 | % | -1.7 | % | 6.5 | % | 24.2 | % | 2.3 | % | 2.4 | % | -10.6 | % | -0.6 | % | -9.1 | % | -53.2 | % | ||||||||||||||||||||||
● EBITDA | 517.7 | 928.0 | 172.9 | 197.9 | 128.4 | 49.5 | 75.9 | 1.3 | 46.2 | 24.7 | 175.3 | |||||||||||||||||||||||||||||||||
Margin
|
20.9 | % | 25.7 | % | 6.3 | % | 20.4 | % | 18.8 | % | 8.4 | % | 12.1 | % | 0.2 | % | 5.5 | % | 3.9 | % | 24.5 | % | ||||||||||||||||||||||
●
EBITDAH (Ebitda
adjusted by Hedge)
|
308.6 | 853.7 | 397.8 | 233.2 | 136.4 | 133.3 | 142.7 | 94.4 | 27.3 | 69.9 | 178.3 | |||||||||||||||||||||||||||||||||
Margin
|
13.6 | % | 24.2 | % | 13.4 | % | 23.2 | % | 19.8 | % | 19.7 | % | 20.6 | % | 12.3 | % | 3.3 | % | 10.2 | % | 24.8 | % | ||||||||||||||||||||||
●
Depreciation & Amortization
|
139.9 | 297.0 | 341.3 | 30.6 | 136.5 | 125.4 | 139.0 | 47.8 | 29.1 | 157.2 | 176.7 | |||||||||||||||||||||||||||||||||
Balance
Sheet
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In million of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Cash and Cash
Equivalents
|
61.0 | 643.8 | 65.8 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | 134.6 | |||||||||||||||||||||||||||||||||
Marketable
Securities
|
770.5 | 573.3 | 944.2 | 303.7 | 573.3 | 237.4 | 6.5 | 1,332.5 | 944.2 | 543.5 | 1,428.2 | |||||||||||||||||||||||||||||||||
Derivative
Financial Instruments
|
288.6 | 37.6 | 86.5 | 8.5 | 37.6 | 94.0 | 3.6 | 67.3 | 86.5 | 88.4 | 8.8 | |||||||||||||||||||||||||||||||||
Trade Accounts
Receivable
|
212.6 | 112.3 | 215.2 | 212.1 | 112.3 | 140.4 | 107.3 | 105.4 | 215.2 | 115.5 | 215.9 | |||||||||||||||||||||||||||||||||
Inventories
|
390.8 | 503.4 | 570.5 | 857.9 | 503.4 | 790.2 | 1,194.8 | 1,019.7 | 570.5 | 905.6 | 1,439.9 | |||||||||||||||||||||||||||||||||
Advances to
Suppliers
|
132.7 | 211.4 | 226.1 | 184.0 | 211.4 | 308.6 | 304.5 | 243.1 | 226.1 | 252.3 | 287.0 | |||||||||||||||||||||||||||||||||
Related
Parties
|
0.0 | - | 16.3 | 0.1 | - | - | - | - | 16.3 | 1.1 | 26.5 | |||||||||||||||||||||||||||||||||
Deferred
Income and Social Contribution Taxes
|
41.4 | 38.1 | - | 144.9 | 38.1 | 26.9 | 24.2 | 26.0 | - | - | - | |||||||||||||||||||||||||||||||||
Other
Assets
|
115.7 | 104.9 | 158.8 | 121.7 | 104.9 | 94.2 | 75.1 | 79.7 | 158.8 | 143.2 | 200.0 | |||||||||||||||||||||||||||||||||
Current
Assets
|
2,013.4 | 2,224.7 | 2,283.6 | 2,809.6 | 2,224.7 | 2,270.8 | 1,851.1 | 2,989.4 | 2,283.6 | 2,140.0 | 3,740.9 | |||||||||||||||||||||||||||||||||
Accounts
Receivable from Federal Government
|
- | 318.4 | 342.2 | - | 318.4 | 318.4 | 331.4 | 339.2 | 342.2 | 342.2 | 342.2 | |||||||||||||||||||||||||||||||||
CTN's-Restricted
Brazilian Treasury Bills
|
104.9 | 123.3 | 151.7 | 119.2 | 123.3 | 127.8 | 135.9 | 144.9 | 151.7 | 164.8 | 170.9 | |||||||||||||||||||||||||||||||||
Deferred
Income and Social Contribution Taxes
|
361.8 | 242.5 | 357.0 | 214.0 | 242.5 | 261.6 | 277.1 | 297.9 | 357.0 | 386.7 | 571.9 | |||||||||||||||||||||||||||||||||
Other
Assets
|
99.5 | 112.4 | 201.7 | 113.0 | 112.4 | 108.1 | 105.8 | 151.8 | 201.7 | 212.3 | 217.6 | |||||||||||||||||||||||||||||||||
Investments
|
13.4 | 93.2 | 120.3 | 13.7 | 93.2 | 13.8 | 13.9 | 14.0 | 120.3 | 124.2 | 129.2 | |||||||||||||||||||||||||||||||||
Property,
Plant and Equipment
|
1,656.4 | 2,013.1 | 2,771.4 | 1,732.1 | 2,013.1 | 2,076.7 | 2,070.3 | 2,293.3 | 2,771.4 | 2,864.7 | 2,993.2 | |||||||||||||||||||||||||||||||||
Goodwill
|
1,353.0 | 1,133.2 | 1,160.7 | 1,189.1 | 1,133.2 | 1,146.6 | 1,090.2 | 1,042.4 | 1,160.7 | 1,115.6 | 1,074.5 | |||||||||||||||||||||||||||||||||
Deferred
Charges
|
2.3 | 2.6 | 4.9 | 2.2 | 2.6 | 3.2 | 3.6 | 3.7 | 4.9 | 18.0 | 33.4 | |||||||||||||||||||||||||||||||||
Permanent
Assets
|
3,591.3 | 4,038.6 | 5,109.9 | 3,383.2 | 4,038.6 | 4,056.2 | 4,028.1 | 4,287.1 | 5,109.9 | 5,228.5 | 5,532.9 | |||||||||||||||||||||||||||||||||
(=) Total Assets | 5,604.8 | 6,263.4 | 7,393.5 | 6,192.8 | 6,263.4 | 6,327.0 | 5,879.2 | 7,276.4 | 7,393.5 | 7,368.5 | 9,273.7 | |||||||||||||||||||||||||||||||||
Loans and
Financings
|
68.8 | 89.0 | 83.3 | 75.9 | 89.0 | 116.5 | 105.1 | 74.9 | 83.3 | 66.4 | 301.7 | |||||||||||||||||||||||||||||||||
Derivatives
Financial Instruments
|
65.4 | 35.5 | 41.9 | 2.5 | 35.5 | 48.0 | 31.2 | 20.5 | 41.9 | 13.1 | 105.3 | |||||||||||||||||||||||||||||||||
Trade Accounts
Payable
|
201.7 | 113.8 | 191.0 | 197.2 | 113.8 | 315.2 | 373.3 | 196.3 | 191.0 | 331.6 | 492.0 | |||||||||||||||||||||||||||||||||
Salaries
Payable
|
49.7 | 63.3 | 80.7 | 37.5 | 63.3 | 91.7 | 113.4 | 51.7 | 80.7 | 119.0 | 143.0 | |||||||||||||||||||||||||||||||||
Taxes and
Social Contributions Payable
|
111.1 | 126.2 | 116.1 | 114.8 | 126.2 | 131.5 | 101.0 | 93.3 | 116.1 | 115.0 | 109.7 | |||||||||||||||||||||||||||||||||
Advances from
Customers
|
79.2 | 49.4 | 26.3 | 83.2 | 49.4 | 41.0 | 28.7 | 30.0 | 26.3 | 25.5 | 32.1 | |||||||||||||||||||||||||||||||||
Promissory
Notes
|
55.8 | 1.3 | - | 3.7 | 1.3 | 1.3 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Related
Parties
|
0.1 | 0.7 | - | - | 0.7 | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred
Income and Social Contribution Taxes
|
5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | |||||||||||||||||||||||||||||||||
Other
Liabilities
|
32.8 | 107.2 | 32.9 | 27.2 | 107.2 | 87.3 | 12.3 | 8.3 | 32.9 | 17.5 | 26.6 | |||||||||||||||||||||||||||||||||
Current
Liabilities
|
670.0 | 591.7 | 577.7 | 547.5 | 591.7 | 838.1 | 770.5 | 480.5 | 577.7 | 693.4 | 1,215.8 | |||||||||||||||||||||||||||||||||
Loans and
Financing
|
2,002.7 | 2,770.4 | 2,136.2 | 2,868.7 | 2,770.4 | 2,591.1 | 2,178.8 | 2,196.8 | 2,136.2 | 2,047.9 | 2,679.3 | |||||||||||||||||||||||||||||||||
Taxes and
Social Contributions Payable
|
446.9 | 338.5 | 359.3 | 346.2 | 338.5 | 336.5 | 345.0 | 340.1 | 359.3 | 351.5 | 346.1 | |||||||||||||||||||||||||||||||||
Promissory
Notes
|
12.7 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Provision for
Contingencies
|
907.4 | 728.0 | 832.4 | 717.4 | 728.0 | 741.0 | 757.5 | 775.3 | 832.4 | 849.8 | 873.1 | |||||||||||||||||||||||||||||||||
Advances from
Customers
|
86.9 | 49.5 | - | 42.5 | 49.5 | 15.6 | 14.5 | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred Taxes
on Revaluation Reserves
|
40.8 | 33.4 | 27.6 | 35.4 | 33.4 | 30.9 | 28.3 | 27.4 | 27.6 | 24.5 | 21.9 | |||||||||||||||||||||||||||||||||
Other
Liabilities
|
67.9 | 100.6 | 116.8 | 62.4 | 100.6 | 109.6 | 105.9 | 107.0 | 116.8 | 116.8 | 116.5 | |||||||||||||||||||||||||||||||||
Noncurrent
Liabilities
|
3,565.4 | 4,020.4 | 3,472.3 | 4,072.5 | 4,020.4 | 3,824.7 | 3,429.9 | 3,446.7 | 3,472.3 | 3,390.5 | 4,037.0 | |||||||||||||||||||||||||||||||||
Minority
Shareholders' Interest
|
14.0 | 20.2 | 17.7 | 17.9 | 20.2 | 19.6 | 18.9 | 18.2 | 17.7 | 17.0 | 258.1 | |||||||||||||||||||||||||||||||||
Capital
|
1,185.8 | 1,192.7 | 2,935.3 | 1,192.7 | 1,192.7 | 1,192.7 | 1,192.7 | 2,935.3 | 2,935.3 | 2,935.3 | 3,815.3 | |||||||||||||||||||||||||||||||||
Profits
Reserve
|
- | 227.3 | 180.2 | - | 227.3 | 227.3 | 227.3 | 227.3 | 180.2 | 180.2 | 180.2 | |||||||||||||||||||||||||||||||||
Legal
Reserve
|
- | 16.0 | 16.0 | - | 16.0 | 16.0 | 16.0 | 16.0 | 16.0 | 16.0 | 16.0 | |||||||||||||||||||||||||||||||||
Stock in
Treasury
|
(4.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Revaluation
Reserves
|
195.9 | 195.0 | 194.4 | 195.2 | 195.0 | 194.7 | 194.5 | 194.4 | 194.4 | 194.2 | 193.8 | |||||||||||||||||||||||||||||||||
Accumulated
losses
|
(26.2 | ) | - | - | 167.0 | - | 13.9 | 29.4 | (41.9 | ) | - | (57.9 | ) | (438.2 | ) | |||||||||||||||||||||||||||||
Shareholders'
Equity
|
1,355.4 | 1,631.0 | 3,325.8 | 1,554.9 | 1,631.0 | 1,644.7 | 1,659.9 | 3,331.1 | 3,325.8 | 3,267.7 | 3,762.8 | |||||||||||||||||||||||||||||||||
(=) Total Liabilities & Shareholders' Equity | 5,604.8 | 6,263.4 | 7,393.5 | 6,192.8 | 6,263.4 | 6,327.0 | 5,879.2 | 7,276.4 | 7,393.5 | 7,368.5 | 9,273.7 |
15 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Cash Flow
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Net
Income (Loss) for the Year
|
(64.6 | ) | 357.3 | (47.8 | ) | 63.4 | 164.7 | 13.7 | 15.2 | (71.4 | ) | (5.3 | ) | (58.1 | ) | (380.7 | ) | |||||||||||||||||||||||||||
Non-cash
Adjustments:
|
||||||||||||||||||||||||||||||||||||||||||||
Earnings
(Losses) from Equity Investments
|
(0.6 | ) | 0.1 | (6.6 | ) | (0.1 | ) | 0.5 | (0.1 | ) | (0.0 | ) | (0.1 | ) | (6.4 | ) | (0.2 | ) | (1.2 | ) | ||||||||||||||||||||||||
Depreciation
& Amortization
|
139.9 | 297.0 | 341.3 | 30.6 | 136.5 | 125.4 | 139.0 | 47.8 | 29.1 | 157.2 | 176.7 | |||||||||||||||||||||||||||||||||
Residual Value
of Permanent Assets Disposals
|
6.7 | 8.4 | 11.0 | 1.0 | 3.8 | 2.6 | 4.2 | 0.1 | 4.1 | 2.8 | 3.0 | |||||||||||||||||||||||||||||||||
Goodwill
Amortization
|
142.8 | 223.7 | 201.4 | 55.9 | 55.9 | 56.0 | 56.6 | 48.2 | 40.6 | 40.4 | 40.4 | |||||||||||||||||||||||||||||||||
Accrued
Financial Expenses
|
48.7 | (190.6 | ) | (116.0 | ) | 65.0 | (344.9 | ) | (103.0 | ) | (63.2 | ) | 87.5 | (37.2 | ) | (26.2 | ) | 572.0 | ||||||||||||||||||||||||||
Other Non-cash
Items
|
(25.6 | ) | 119.7 | (52.7 | ) | (7.3 | ) | 117.0 | (9.9 | ) | (17.0 | ) | (17.6 | ) | (8.2 | ) | (24.5 | ) | (181.7 | ) | ||||||||||||||||||||||||
(=)
Adjusted Net Profit (Loss)
|
247.4 | 815.5 | 330.7 | 208.4 | 133.5 | 84.5 | 134.8 | 94.5 | 16.8 | 91.4 | 228.4 | |||||||||||||||||||||||||||||||||
(±) Decrease
(Increase) in Assets
|
(366.5 | ) | 165.0 | (352.8 | ) | 356.6 | 342.1 | (441.8 | ) | (272.1 | ) | 31.9 | 329.2 | (251.0 | ) | (659.2 | ) | |||||||||||||||||||||||||||
(±) Increase
(Decrease) in Liabilities
|
51.7 | (313.0 | ) | 2.9 | (264.3 | ) | (20.6 | ) | 217.1 | (34.6 | ) | (184.5 | ) | 4.9 | 113.8 | 271.6 | ||||||||||||||||||||||||||||
(=)
Cash Flow from Operating Activities
|
(67.4 | ) | 667.5 | (19.2 | ) | 300.7 | 455.1 | (140.2 | ) | (171.8 | ) | (58.1 | ) | 350.9 | (45.8 | ) | (159.1 | ) | ||||||||||||||||||||||||||
Marketable
Securities
|
(766.6 | ) | 197.2 | (361.8 | ) | 42.0 | (269.6 | ) | 338.7 | 230.9 | (1,326.0 | ) | 394.6 | 400.8 | (884.7 | ) | ||||||||||||||||||||||||||||
Goodwill Paid
in Equity Investment Acquisitions
|
(536.1 | ) | (3.7 | ) | - | - | - | (1.8 | ) | (0.3 | ) | (0.4 | ) | 2.5 | 3.0 | (0.7 | ) | |||||||||||||||||||||||||||
Acquisition of
Investments
|
- | (80.0 | ) | (169.6 | ) | (0.0 | ) | (80.0 | ) | (2.1 | ) | - | (0.0 | ) | (167.5 | ) | (3.8 | ) | (3.8 | ) | ||||||||||||||||||||||||
Acquisition of
Property, Plant and Equipment
|
(208.9 | ) | (683.5 | ) | (1,050.5 | ) | (111.2 | ) | (365.1 | ) | (170.3 | ) | (136.8 | ) | (270.8 | ) | (472.6 | ) | (253.3 | ) | (304.7 | ) | ||||||||||||||||||||||
Additions to
Deferred Charges and Other
|
0.2 | (0.6 | ) | (2.6 | ) | (0.0 | ) | (0.4 | ) | (0.1 | ) | (0.4 | ) | (0.2 | ) | (1.8 | ) | (11.5 | ) | (15.4 | ) | |||||||||||||||||||||||
(=)
Cash Flow from Investment Activities
|
(1,511.4 | ) | (570.7 | ) | (1,584.5 | ) | (69.3 | ) | (715.1 | ) | 164.3 | 93.4 | (1,597.4 | ) | (244.8 | ) | 135.2 | (1,209.3 | ) | |||||||||||||||||||||||||
Additions of
Debt
|
1,878.8 | 854.7 | 198.3 | 852.1 | (47.0 | ) | 1.9 | 8.8 | 213.0 | (25.5 | ) | 3.0 | 315.8 | |||||||||||||||||||||||||||||||
Payments of
Principal and Interest on Debt
|
(1,159.9 | ) | (375.6 | ) | (839.4 | ) | (170.3 | ) | (25.9 | ) | (97.7 | ) | (370.0 | ) | (319.6 | ) | (52.2 | ) | (67.8 | ) | (26.7 | ) | ||||||||||||||||||||||
Capital
Increase
|
885.8 | 6.9 | 1,742.6 | 6.9 | - | - | - | 1,742.6 | - | - | 880.0 | |||||||||||||||||||||||||||||||||
Treasury
Stock
|
- | - | - | - | - | - | - | - | - | - | (4.2 | ) | ||||||||||||||||||||||||||||||||
Capital
Increase at subsidiaries
|
- | - | - | - | - | - | - | - | - | - | 247.7 | |||||||||||||||||||||||||||||||||
Dividends
|
- | - | (75.8 | ) | - | - | - | - | - | (75.8 | ) | - | - | |||||||||||||||||||||||||||||||
Other
|
- | - | - | - | - | 6.8 | (4.4 | ) | - | (2.4 | ) | - | - | |||||||||||||||||||||||||||||||
(=)
Cash Flows from Financing Activities
|
1,604.6 | 486.0 | 1,025.7 | 688.7 | (72.9 | ) | (88.9 | ) | (365.5 | ) | 1,636.0 | (155.9 | ) | (64.8 | ) | 1,412.6 | ||||||||||||||||||||||||||||
(=)
Total Cash Flow
|
25.8 | 582.8 | (578.0 | ) | 920.1 | (333.0 | ) | (64.8 | ) | (443.9 | ) | (19.4 | ) | (49.8 | ) | 24.6 | 44.1 | |||||||||||||||||||||||||||
(+) Cash
& Equivalents, Beginning
|
35.2 | 61.0 | 643.8 | 56.7 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | |||||||||||||||||||||||||||||||||
(=)
Cash & Equivalents, Closing
|
61.0 | 643.8 | 65.8 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | 134.6 | |||||||||||||||||||||||||||||||||
Credit Statistics
(LTM)
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In million of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Net
Operating Revenues
|
2,477.9 | 3,605.1 | 2,736.2 | 3,670.4 | 3,605.1 | 3,252.7 | 2,872.1 | 2,575.2 | 2,736.2 | 2,784.1 | 2,871.6 | |||||||||||||||||||||||||||||||||
●
Gross
Profit
|
756.6 | 1,123.9 | 349.0 | 1,193.9 | 1,123.9 | 799.5 | 580.9 | 369.9 | 349.0 | 318.9 | 410.5 | |||||||||||||||||||||||||||||||||
●
EBITDA
|
517.7 | 928.0 | 172.9 | 968.1 | 928.0 | 648.5 | 451.8 | 255.1 | 172.9 | 148.1 | 247.5 | |||||||||||||||||||||||||||||||||
●
EBIT
|
377.8 | 631.1 | (168.4 | ) | 782.6 | 631.1 | 296.4 | 20.3 | (193.6 | ) | (168.4 | ) | (225.1 | ) | (163.3 | ) | ||||||||||||||||||||||||||||
●
Net
Financial Expenses
|
245.2 | (158.0 | ) | (284.3 | ) | 261.0 | (158.0 | ) | (494.5 | ) | (611.1 | ) | (616.9 | ) | (284.3 | ) | (220.4 | ) | 464.7 | |||||||||||||||||||||||||
●
Net
Profit
|
(64.6 | ) | 357.3 | (47.8 | ) | 191.7 | 357.3 | 365.6 | 257.0 | 122.2 | (47.8 | ) | (119.6 | ) | (515.5 | ) | ||||||||||||||||||||||||||||
Liquid
Funds
|
831.5 | 1,217.1 | 1,010.1 | 1,280.5 | 1,217.1 | 816.4 | 141.6 | 1,448.2 | 1,010.1 | 633.9 | 1,562.8 | |||||||||||||||||||||||||||||||||
●
Cash and
Cash Equivalents
|
61.0 | 643.8 | 65.8 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | 134.6 | |||||||||||||||||||||||||||||||||
●
Marketable
Securities
|
770.5 | 573.3 | 944.2 | 303.7 | 573.3 | 237.4 | 6.5 | 1,332.5 | 944.2 | 543.5 | 1,428.2 | |||||||||||||||||||||||||||||||||
Short-Term
Debt
|
171.3 | 109.0 | 80.5 | 116.4 | 109.0 | 126.3 | 99.6 | 80.2 | 80.5 | 62.9 | 298.6 | |||||||||||||||||||||||||||||||||
●
Loans
and Financings
|
42.9 | 71.1 | 65.7 | 65.8 | 71.1 | 100.7 | 82.6 | 65.1 | 65.7 | 48.8 | 279.3 | |||||||||||||||||||||||||||||||||
●
Pre-Export
Contracts
|
72.6 | 36.7 | 14.8 | 46.8 | 36.7 | 24.4 | 17.0 | 15.1 | 14.8 | 14.0 | 19.3 | |||||||||||||||||||||||||||||||||
●
Promissory
Notes
|
55.8 | 1.3 | - | 3.7 | 1.3 | 1.3 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Long-Term
Debt
|
1,630.0 | 2,324.8 | 1,592.4 | 2,419.3 | 2,324.8 | 2,108.6 | 1,678.5 | 1,663.6 | 1,592.4 | 1,474.9 | 2,101.7 | |||||||||||||||||||||||||||||||||
●
Loans
and Financings
|
1,530.3 | 2,275.3 | 1,592.4 | 2,376.8 | 2,275.3 | 2,092.9 | 1,663.9 | 1,663.6 | 1,592.4 | 1,474.9 | 2,101.7 | |||||||||||||||||||||||||||||||||
●
Pre-Export
Contracts
|
86.9 | 49.5 | - | 42.5 | 49.5 | 15.6 | 14.5 | - | - | - | - | |||||||||||||||||||||||||||||||||
●
Promissory
Notes
|
12.7 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Total
Debt
|
1,801.3 | 2,433.8 | 1,672.9 | 2,535.7 | 2,433.8 | 2,234.9 | 1,778.0 | 1,743.8 | 1,672.9 | 1,537.7 | 2,400.3 | |||||||||||||||||||||||||||||||||
Net
Debt
|
969.8 | 1,216.7 | 662.9 | 1,255.2 | 1,216.7 | 1,418.5 | 1,636.4 | 295.6 | 662.9 | 903.8 | 837.5 | |||||||||||||||||||||||||||||||||
Current
Assets
|
2,013.4 | 2,224.7 | 2,283.6 | 2,809.6 | 2,224.7 | 2,270.8 | 1,851.1 | 2,989.4 | 2,283.6 | 2,140.0 | 3,740.9 | |||||||||||||||||||||||||||||||||
Current
Liabilities
|
670.0 | 591.7 | 577.7 | 547.5 | 591.7 | 838.1 | 770.5 | 480.5 | 577.7 | 693.4 | 1,215.8 | |||||||||||||||||||||||||||||||||
Shareholders'
Equity
|
1,355.4 | 1,631.0 | 3,325.8 | 1,554.9 | 1,631.0 | 1,644.7 | 1,659.9 | 3,331.1 | 3,325.8 | 3,267.7 | 3,762.8 | |||||||||||||||||||||||||||||||||
Capex
- Property, Plant and Equipment
|
744.8 | 767.9 | 1,222.7 | 906.7 | 767.9 | 854.0 | 868.7 | 1,028.8 | 1,222.7 | 1,313.8 | 1,500.9 | |||||||||||||||||||||||||||||||||
●
Capex -
Operational
|
208.9 | 683.5 | 1,050.5 | 427.4 | 683.5 | 769.5 | 783.5 | 943.0 | 1,050.5 | 1,133.5 | 1,301.4 | |||||||||||||||||||||||||||||||||
EBITDA
Margin
|
20.9 | % | 25.7 | % | 6.3 | % | 26.4 | % | 25.7 | % | 19.9 | % | 15.7 | % | 9.9 | % | 6.3 | % | 5.3 | % | 8.6 | % | ||||||||||||||||||||||
●
Gross
Profit Margin
|
30.5 | % | 31.2 | % | 12.8 | % | 32.5 | % | 31.2 | % | 24.6 | % | 20.2 | % | 14.4 | % | 12.8 | % | 11.5 | % | 14.3 | % | ||||||||||||||||||||||
●
EBIT
Margin
|
15.2 | % | 17.5 | % | -6.2 | % | 21.3 | % | 17.5 | % | 9.1 | % | 0.7 | % | -7.5 | % | -6.2 | % | -8.1 | % | -5.7 | % | ||||||||||||||||||||||
●
Net
Profit Margin
|
-2.6 | % | 9.9 | % | -1.7 | % | 5.2 | % | 9.9 | % | 11.2 | % | 8.9 | % | 4.7 | % | -1.7 | % | -4.3 | % | -18.0 | % | ||||||||||||||||||||||
Net
Debt ÷ Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||||||||||
●
Net Debt
%
|
41.7 | % | 42.7 | % | 16.6 | % | 44.7 | % | 42.7 | % | 46.3 | % | 49.6 | % | 8.2 | % | 16.6 | % | 21.7 | % | 18.2 | % | ||||||||||||||||||||||
●
Shareholders'
Equity %
|
58.3 | % | 57.3 | % | 83.4 | % | 55.3 | % | 57.3 | % | 53.7 | % | 50.4 | % | 91.8 | % | 83.4 | % | 78.3 | % | 81.8 | % | ||||||||||||||||||||||
Long-Term
Payable Debt to Equity Ratio
|
1.2 | x | 1.4 | x | 0.5 | x | 1.6 | x | 1.4 | x | 1.3 | x | 1.0 | x | 0.5 | x | 0.5 | x | 0.5 | x | 0.6 | x | ||||||||||||||||||||||
Liquidity
Ratio (Current Assets ÷ Current Liabilities)
|
3.0 | x | 3.8 | x | 4.0 | x | 5.1 | x | 3.8 | x | 2.7 | x | 2.4 | x | 6.2 | x | 4.0 | x | 3.1 | x | 3.1 | x | ||||||||||||||||||||||
Net
Debt ÷ EBITDA
|
1.9 | x | 1.3 | x | 3.8 | x | 1.3 | x | 1.3 | x | 2.2 | x | 3.6 | x | 1.2 | x | 3.8 | x | 6.1 | x | 3.4 | x | ||||||||||||||||||||||
●
Short-Term Net
Debt ÷ EBITDA
|
0.3 | x | 0.1 | x | 0.5 | x | 0.1 | x | 0.1 | x | 0.2 | x | 0.2 | x | 0.3 | x | 0.5 | x | 0.4 | x | 1.2 | x | ||||||||||||||||||||||
Net
Debt ÷ (EBITDA - Capex)
|
-4.3x | 7.6 | x | -0.6x | 20.4 | x | 7.6 | x | -6.9x | -3.9x | -0.4x | -0.6x | -0.8x | -0.7x | ||||||||||||||||||||||||||||||
●
Net Debt
÷ (EBITDA - Operational Capex)
|
3.1 | x | 5.0 | x | -0.8x | 2.3 | x | 5.0 | x | -11.7x | -4.9x | -0.4x | -0.8x | -0.9x | -0.8x | |||||||||||||||||||||||||||||
Interest
Cover (EBITDA ÷ Net Financial Exp.)
|
2.1 | x | -5.9x | -0.6x | 3.7 | x | -5.9x | -1.3x | -0.7x | -0.4x | -0.6x | -0.7x | 0.5 | x | ||||||||||||||||||||||||||||||
●
Interest
Cover (EBITDA - Op.Capes)÷Net Fin.)
|
1.3 | x | -1.5x | 3.1 | x | 2.1 | x | -1.5x | 0.2 | x | 0.5 | x | 1.1 | x | 3.1 | x | 4.5 | x | -2.3x | |||||||||||||||||||||||||
Avg.
Debt Cost (Net.Fin.Exp. ÷ Net Debt)
|
25.3 | % | -13.0 | % | -42.9 | % | 20.8 | % | -13.0 | % | -34.9 | % | -37.3 | % | -208.7 | % | -42.9 | % | -24.4 | % | 55.5 | % |
16 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
H.
Financial Statements of Cosan Ltd – US
GAAP
|
Income
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of U.S.
dollars)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Net
sales
|
1,096.6 | 1,679.1 | 1,491.2 | 463.2 | 328.1 | 301.3 | 328.0 | 376.7 | 485.3 | 394.0 | 383.8 | |||||||||||||||||||||||||||||||||
(-) Cost of
goods sold
|
(796.3 | ) | (1,191.3 | ) | (1,345.6 | ) | (338.7 | ) | (258.7 | ) | (288.2 | ) | (295.5 | ) | (343.5 | ) | (418.4 | ) | (398.9 | ) | (320.2 | ) | ||||||||||||||||||||||
(=)
Gross profit
|
300.3 | 487.8 | 145.6 | 124.4 | 69.4 | 13.1 | 32.5 | 33.2 | 66.9 | (4.9 | ) | 63.6 | ||||||||||||||||||||||||||||||||
(-) Selling
expenses
|
(97.8 | ) | (133.8 | ) | (168.6 | ) | (35.5 | ) | (35.2 | ) | (32.0 | ) | (50.2 | ) | (41.6 | ) | (44.9 | ) | (53.0 | ) | (47.9 | ) | ||||||||||||||||||||||
(-) General
and administrative expenses
|
(72.0 | ) | (121.1 | ) | (115.1 | ) | (26.5 | ) | (48.6 | ) | (30.1 | ) | (24.4 | ) | (30.2 | ) | (30.5 | ) | (36.3 | ) | (36.1 | ) | ||||||||||||||||||||||
(=)
Operating income (loss)
|
130.5 | 232.9 | (138.1 | ) | 62.5 | (14.3 | ) | (49.0 | ) | (42.0 | ) | (38.6 | ) | (8.5 | ) | (94.2 | ) | (20.3 | ) | |||||||||||||||||||||||||
Operating
margin
|
11.9 | % | 13.9 | % | -9.3 | % | 13.5 | % | -4.4 | % | -16.3 | % | -12.8 | % | -10.2 | % | -1.8 | % | -23.9 | % | -5.3 | % | ||||||||||||||||||||||
(-) Other
income (expense):
|
||||||||||||||||||||||||||||||||||||||||||||
Financial
|
(226.6 | ) | 289.4 | 116.8 | (13.4 | ) | 213.4 | 53.7 | 75.6 | (131.8 | ) | 119.3 | 26.5 | (228.4 | ) | |||||||||||||||||||||||||||||
Other
|
(5.5 | ) | 16.3 | (3.7 | ) | 0.5 | (2.6 | ) | (0.5 | ) | 0.1 | (1.4 | ) | (1.8 | ) | (3.5 | ) | (8.1 | ) | |||||||||||||||||||||||||
(=)
Income (loss) before income taxes, equity in income of
affiliates and minority interest
|
(101.6 | ) | 538.5 | (25.0 | ) | 49.6 | 196.5 | 4.2 | 33.7 | (171.9 | ) | 109.0 | (71.2 | ) | (256.8 | ) | ||||||||||||||||||||||||||||
(-) Income
taxes expense (benefit)
|
29.7 | (188.8 | ) | 19.8 | (16.6 | ) | (72.2 | ) | (1.7 | ) | (8.1 | ) | 57.5 | (27.9 | ) | 23.2 | 92.9 | |||||||||||||||||||||||||||
(=)
Income (loss) before equity in income of affiliates and minority
interest
|
(71.8 | ) | 349.7 | (5.2 | ) | 33.1 | 124.2 | 2.5 | 25.6 | (114.3 | ) | 81.1 | (48.0 | ) | (164.0 | ) | ||||||||||||||||||||||||||||
(±) Equity
in income of affiliates
|
1.6 | (0.0 | ) | (0.2 | ) | 0.1 | (0.2 | ) | (0.2 | ) | (1.8 | ) | (0.5 | ) | 2.3 | 0.1 | 0.5 | |||||||||||||||||||||||||||
(±) Minority
interest in net (income) loss of subsidiaries
|
33.1 | (173.0 | ) | 22.0 | (16.4 | ) | (61.4 | ) | (1.0 | ) | (6.1 | ) | 55.2 | (26.1 | ) | 18.6 | 49.4 | |||||||||||||||||||||||||||
(=)
Net income (loss)
|
(37.1 | ) | 176.7 | 16.6 | 16.7 | 62.6 | 1.2 | 17.7 | (59.7 | ) | 57.3 | (29.3 | ) | (114.1 | ) | |||||||||||||||||||||||||||||
Margin
|
-3.4 | % | 10.5 | % | 1.1 | % | 3.6 | % | 19.1 | % | 0.4 | % | 5.4 | % | -15.8 | % | 11.8 | % | -7.4 | % | -29.7 | % | ||||||||||||||||||||||
●
EBITDA
|
223.6 | 436.5 | 94.3 | 76.9 | 73.4 | 25.7 | 41.9 | 11.8 | 15.0 | 14.6 | 118.5 | |||||||||||||||||||||||||||||||||
Margin
|
20.4 | % | 26.0 | % | 6.3 | % | 16.6 | % | 22.4 | % | 8.5 | % | 12.8 | % | 3.1 | % | 3.1 | % | 3.7 | % | 30.9 | % | ||||||||||||||||||||||
●
EBIT
|
125.0 | 249.2 | (141.8 | ) | 63.0 | (17.0 | ) | (49.5 | ) | (41.9 | ) | (40.0 | ) | (10.3 | ) | (97.7 | ) | (28.4 | ) | |||||||||||||||||||||||||
Margin
|
11.4 | % | 14.8 | % | -9.5 | % | 13.6 | % | -5.2 | % | -16.4 | % | -12.8 | % | -10.6 | % | -2.1 | % | -24.8 | % | -7.4 | % | ||||||||||||||||||||||
●
Depreciation
and amortization
|
98.6 | 187.4 | 236.1 | 13.9 | 90.3 | 75.2 | 83.8 | 51.8 | 25.3 | 112.3 | 147.0 | |||||||||||||||||||||||||||||||||
Cash Flow
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of U.S.
dollars)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
●
Cash flow from operating
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Net income
(loss) for the year/quarter
|
(37.1 | ) | 176.7 | 16.6 | 16.7 | 62.6 | 1.2 | 17.7 | (59.7 | ) | 57.3 | (29.3 | ) | (114.1 | ) | |||||||||||||||||||||||||||||
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Depreciation
and amortization
|
98.6 | 187.4 | 236.1 | 13.9 | 90.3 | 75.2 | 83.8 | 51.8 | 25.3 | 112.3 | 147.0 | |||||||||||||||||||||||||||||||||
Deferred
income and social contribution taxes
|
(53.0 | ) | 150.2 | (52.4 | ) | (14.2 | ) | 76.3 | (8.6 | ) | (5.9 | ) | (51.9 | ) | 14.0 | (31.6 | ) | (84.4 | ) | |||||||||||||||||||||||||
Interest,
monetary and exchange variation
|
24.3 | 116.3 | (43.7 | ) | (4.6 | ) | 24.7 | (53.1 | ) | (44.5 | ) | 56.5 | (2.5 | ) | (14.5 | ) | 327.5 | |||||||||||||||||||||||||||
Minority
interest in net income of subsidiaries
|
(33.1 | ) | 173.0 | (22.0 | ) | 16.4 | 61.4 | 1.0 | 6.1 | (55.2 | ) | 26.1 | (18.6 | ) | (49.4 | ) | ||||||||||||||||||||||||||||
Others
|
15.9 | (176.8 | ) | 15.2 | 0.5 | (164.1 | ) | 5.8 | 6.9 | (6.2 | ) | 8.7 | 9.2 | 6.0 | ||||||||||||||||||||||||||||||
15.6 | 626.8 | 149.8 | 28.7 | 151.2 | 21.5 | 63.9 | (64.6 | ) | 128.9 | 27.5 | 232.6 | |||||||||||||||||||||||||||||||||
Decrease/increase
in operating assets and liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||
Trade accounts
receivable, net
|
(35.4 | ) | 48.2 | (57.1 | ) | 29.9 | 47.7 | (16.7 | ) | 15.4 | 6.4 | (62.2 | ) | 63.9 | (63.7 | ) | ||||||||||||||||||||||||||||
Inventories
|
30.9 | (54.1 | ) | (31.7 | ) | 168.7 | 165.6 | (147.8 | ) | (240.5 | ) | 103.1 | 253.5 | (214.0 | ) | (197.2 | ) | |||||||||||||||||||||||||||
Advances to
suppliers
|
(10.7 | ) | (38.7 | ) | (8.4 | ) | (4.7 | ) | (14.6 | ) | (50.9 | ) | (1.3 | ) | 35.2 | 8.6 | (16.8 | ) | (12.1 | ) | ||||||||||||||||||||||||
Trade accounts
payable
|
28.7 | (43.2 | ) | 33.7 | (70.4 | ) | (41.1 | ) | 106.0 | 40.8 | (100.9 | ) | (12.2 | ) | 90.1 | 56.4 | ||||||||||||||||||||||||||||
Derivative
financial instruments
|
83.5 | (155.0 | ) | 90.4 | 15.1 | (38.7 | ) | 33.5 | 9.0 | 127.4 | (79.6 | ) | 11.3 | (4.8 | ) | |||||||||||||||||||||||||||||
Taxes
payable
|
(37.6 | ) | (36.6 | ) | (19.6 | ) | 25.4 | (9.5 | ) | (0.8 | ) | (15.4 | ) | 13.7 | (17.1 | ) | (7.9 | ) | (5.0 | ) | ||||||||||||||||||||||||
Minority
interest
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other assets
and liabilities, net
|
11.0 | (63.4 | ) | (99.4 | ) | (29.0 | ) | 8.2 | 11.1 | (25.6 | ) | (107.9 | ) | 23.0 | 16.2 | (23.6 | ) | |||||||||||||||||||||||||||
70.4 | (342.8 | ) | (92.2 | ) | 135.0 | 117.6 | (65.6 | ) | (217.7 | ) | 77.1 | 114.0 | (57.1 | ) | (249.9 | ) | ||||||||||||||||||||||||||||
(=)
Net cash provided by operating actitivities
|
86.0 | 284.0 | 57.6 | 163.7 | 268.7 | (44.0 | ) | (153.8 | ) | 12.5 | 242.9 | (29.6 | ) | (17.3 | ) | |||||||||||||||||||||||||||||
● Cash flow from investing
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Restricted
cash
|
(62.6 | ) | 47.0 | (25.9 | ) | (0.3 | ) | (12.6 | ) | (30.0 | ) | 48.9 | (33.6 | ) | (11.1 | ) | 0.1 | 37.4 | ||||||||||||||||||||||||||
Marketable
securities
|
(366.9 | ) | 97.0 | (671.0 | ) | 23.1 | (124.4 | ) | 180.8 | (972.6 | ) | (71.0 | ) | 191.8 | (202.4 | ) | (257.7 | ) | ||||||||||||||||||||||||||
Acquisition of
property, plant and equipment
|
(135.2 | ) | (356.2 | ) | (642.9 | ) | (62.5 | ) | (242.6 | ) | (94.4 | ) | (90.5 | ) | (157.3 | ) | (300.8 | ) | (169.3 | ) | (146.7 | ) | ||||||||||||||||||||||
Acquisitions,
net of cash acquired
|
(260.9 | ) | (39.4 | ) | (102.0 | ) | 0.1 | (39.4 | ) | (1.1 | ) | 1.1 | (1.2 | ) | (100.8 | ) | 0.8 | (18.3 | ) | |||||||||||||||||||||||||
Purchase of
goodwill and intangible assets
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other
|
- | - | - | - | - | - | (1.2 | ) | 1.2 | - | - | - | ||||||||||||||||||||||||||||||||
(=)
Net cash used in investing actitivities
|
(825.5 | ) | (251.6 | ) | (1,441.7 | ) | (39.6 | ) | (419.0 | ) | 55.3 | (1,014.3 | ) | (261.9 | ) | (220.8 | ) | (370.8 | ) | (385.3 | ) | |||||||||||||||||||||||
●
Cash flow from financing
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Proceeds from
issuance of common stock
|
383.1 | 3.2 | 1,118.4 | 3.2 | - | - | 1,118.4 | - | - | - | 196.2 | |||||||||||||||||||||||||||||||||
Capital
increase on subsidiary from minority interest
|
- | - | 324.4 | - | - | - | - | 312.7 | 11.7 | - | - | |||||||||||||||||||||||||||||||||
Dividends
Paid
|
- | - | (44.9 | ) | 423.8 | (423.8 | ) | - | - | - | (44.9 | ) | - | - | ||||||||||||||||||||||||||||||
Additions of
long-term debts
|
899.3 | 424.6 | 117.5 | (25.3 | ) | 424.6 | - | - | - | 117.5 | - | 174.5 | ||||||||||||||||||||||||||||||||
Payments of
long-term debts
|
(556.5 | ) | (205.0 | ) | (492.1 | ) | (86.9 | ) | (22.4 | ) | (47.1 | ) | (213.3 | ) | (60.4 | ) | (171.2 | ) | (39.8 | ) | (26.2 | ) | ||||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(=)
Net cash provided by financing actitivities
|
725.9 | 222.8 | 1,023.3 | 314.8 | (21.6 | ) | (47.1 | ) | 905.1 | 252.3 | (86.9 | ) | (39.8 | ) | 344.6 | |||||||||||||||||||||||||||||
Effect of
exchange rate changes on cash and cash equivalents
|
29.6 | 32.1 | 112.6 | (5.6 | ) | 28.7 | 27.0 | 32.2 | 3.6 | 49.8 | 458.1 | 35.5 | ||||||||||||||||||||||||||||||||
(=)
Net increase (decrease) in cash and cash equivalents
|
16.1 | 287.3 | (248.2 | ) | 433.3 | (143.2 | ) | (8.8 | ) | (230.7 | ) | 6.4 | (15.0 | ) | 17.9 | (22.6 | ) | |||||||||||||||||||||||||||
(+) Cash and
cash equivalents at beginning of year
|
13.2 | 29.2 | 316.5 | 26.5 | 459.7 | 316.5 | 307.7 | 77.0 | 83.4 | 68.4 | 86.3 | |||||||||||||||||||||||||||||||||
(=)
Cash and cash equivalents at end of year
|
29.2 | 316.5 | 68.4 | 459.7 | 316.5 | 307.7 | 77.0 | 83.4 | 68.4 | 86.3 | 63.7 |
17 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Balance
Sheet
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of U.S.
dollars)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||||||||||||||||||||||||
Cash and cash
equivalents
|
29.2 | 316.5 | 68.4 | 459.7 | 316.5 | 307.7 | 77.0 | 83.4 | 68.4 | 86.3 | 63.7 | |||||||||||||||||||||||||||||||||
Restricted
cash
|
63.0 | 17.7 | 47.2 | 2.4 | 17.7 | 49.2 | 1.8 | 35.2 | 47.2 | 50.7 | 0.1 | |||||||||||||||||||||||||||||||||
Marketable
securities
|
368.8 | 281.9 | 1,014.5 | 142.9 | 281.9 | 124.5 | 1,131.6 | 1,188.5 | 1,014.5 | 804.2 | 905.8 | |||||||||||||||||||||||||||||||||
Derivative
financial instruments
|
16.7 | 65.2 | 31.5 | 99.8 | 65.2 | 44.1 | 48.4 | 12.7 | 31.5 | 65.3 | 86.8 | |||||||||||||||||||||||||||||||||
Trade accounts
receivable, net
|
101.8 | 55.2 | 126.9 | 99.8 | 55.2 | 74.6 | 61.4 | 59.8 | 126.9 | 73.0 | 101.9 | |||||||||||||||||||||||||||||||||
Inventories
|
187.2 | 247.5 | 337.7 | 403.8 | 247.5 | 415.9 | 677.0 | 571.2 | 337.7 | 577.6 | 680.5 | |||||||||||||||||||||||||||||||||
Advances to
suppliers
|
63.5 | 104.0 | 133.7 | 86.6 | 104.0 | 163.5 | 173.4 | 137.1 | 133.7 | 160.8 | 135.5 | |||||||||||||||||||||||||||||||||
Deferred
income taxes
|
74.8 | - | - | 61.5 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other current
assets
|
55.4 | 51.6 | 103.2 | (6.5 | ) | 51.6 | 49.4 | 42.2 | 44.5 | 103.2 | 99.7 | 133.7 | ||||||||||||||||||||||||||||||||
960.3 | 1,139.5 | 1,863.0 | 1,350.0 | 1,139.5 | 1,228.9 | 2,212.8 | 2,132.6 | 1,863.0 | 1,917.6 | 2,108.0 | ||||||||||||||||||||||||||||||||||
Noncurrent
assets:
|
||||||||||||||||||||||||||||||||||||||||||||
Property,
plant and equipment, net
|
1,008.1 | 1,194.1 | 2,018.1 | 1,009.2 | 1,194.1 | 1,311.0 | 1,405.1 | 1,514.3 | 2,018.1 | 2,217.3 | 1,738.6 | |||||||||||||||||||||||||||||||||
Goodwill
|
497.9 | 491.9 | 772.6 | 475.3 | 491.9 | 527.7 | 562.7 | 626.3 | 772.6 | 823.4 | 623.4 | |||||||||||||||||||||||||||||||||
Intangible
assets, net
|
98.9 | 94.0 | 106.1 | 91.8 | 94.0 | 99.7 | 105.2 | 102.0 | 106.1 | 111.8 | 81.8 | |||||||||||||||||||||||||||||||||
Accounts
Receivable from Federal Government
|
- | 156.5 | 202.8 | - | 156.5 | 169.6 | 190.0 | 192.7 | 202.8 | 218.4 | 161.8 | |||||||||||||||||||||||||||||||||
Other
non-current assets
|
126.6 | 177.5 | 306.4 | 130.4 | 177.5 | 192.3 | 209.0 | 237.9 | 306.4 | 345.3 | 300.4 | |||||||||||||||||||||||||||||||||
1,731.4 | 2,113.9 | 3,406.1 | 1,706.7 | 2,113.9 | 2,300.3 | 2,472.0 | 2,673.3 | 3,406.1 | 3,716.3 | 2,905.9 | ||||||||||||||||||||||||||||||||||
(=)
Total assets
|
2,691.8 | 3,253.4 | 5,269.1 | 3,056.7 | 3,253.4 | 3,529.1 | 4,684.8 | 4,805.9 | 5,269.1 | 5,634.0 | 5,014.0 | |||||||||||||||||||||||||||||||||
Liabilities
and shareholders' equity
|
||||||||||||||||||||||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||
Trade accounts
payable
|
96.6 | 55.9 | 114.4 | 92.8 | 55.9 | 166.6 | 212.0 | 110.5 | 114.4 | 212.0 | 236.8 | |||||||||||||||||||||||||||||||||
Advances from
customers
|
37.9 | 24.3 | 15.6 | 39.1 | 24.3 | 21.9 | 16.4 | 17.0 | 15.6 | 15.3 | 15.2 | |||||||||||||||||||||||||||||||||
Taxes
payable
|
40.0 | 57.5 | 62.9 | 49.0 | 57.5 | 64.8 | 51.7 | 47.1 | 62.9 | 67.4 | 47.4 | |||||||||||||||||||||||||||||||||
Salaries
payable
|
23.8 | 31.1 | 47.8 | 17.7 | 31.1 | 47.9 | 63.8 | 29.2 | 47.8 | 75.8 | 67.5 | |||||||||||||||||||||||||||||||||
Current
portion of long-term debt
|
46.6 | 36.1 | 38.2 | 31.9 | 36.1 | 51.8 | 44.0 | 27.9 | 38.2 | 33.2 | 134.2 | |||||||||||||||||||||||||||||||||
Derivative
financial instruments
|
133.4 | 9.8 | 55.0 | 15.5 | 9.8 | 15.0 | 26.8 | 102.3 | 55.0 | 102.1 | 112.1 | |||||||||||||||||||||||||||||||||
Dividends
payable
|
- | 37.3 | - | - | 37.3 | 40.4 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred
income taxes
|
- | - | - | - | - | - | - | - | - | - | 10.3 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
18.9 | 22.2 | 25.2 | 15.6 | 22.2 | 10.2 | 7.3 | 7.8 | 25.2 | 14.1 | 14.8 | |||||||||||||||||||||||||||||||||
397.1 | 274.2 | 359.1 | 261.7 | 274.2 | 418.5 | 422.0 | 342.0 | 359.1 | 519.8 | 638.3 | ||||||||||||||||||||||||||||||||||
Long-term
liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||
Long-term
debt
|
941.7 | 1,342.5 | 1,249.3 | 1,330.4 | 1,342.5 | 1,357.2 | 1,226.2 | 1,226.5 | 1,249.3 | 1,291.4 | 1,257.4 | |||||||||||||||||||||||||||||||||
Estimated
liability for legal proceedings and labor claims
|
462.2 | 379.2 | 494.1 | 357.0 | 379.2 | 417.8 | 459.8 | 442.0 | 494.1 | 545.0 | 414.1 | |||||||||||||||||||||||||||||||||
Taxes
payable
|
152.4 | 106.9 | 170.4 | 105.1 | 106.9 | 115.7 | 130.5 | 127.7 | 170.4 | 181.9 | 133.4 | |||||||||||||||||||||||||||||||||
Advances from
customers
|
41.6 | 24.3 | - | 20.0 | 24.3 | 8.3 | 8.3 | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred
income taxes
|
81.6 | 141.6 | 101.8 | 143.7 | 141.6 | 142.2 | 144.7 | 85.9 | 101.8 | 83.6 | - | |||||||||||||||||||||||||||||||||
Other
long-term liabilities
|
33.1 | 47.5 | 101.7 | 28.4 | 47.5 | 50.3 | 51.0 | 72.8 | 101.7 | 103.3 | 107.7 | |||||||||||||||||||||||||||||||||
1,712.7 | 2,042.0 | 2,117.4 | 1,984.6 | 2,042.0 | 2,091.5 | 2,020.4 | 1,954.9 | 2,117.4 | 2,205.3 | 1,912.7 | ||||||||||||||||||||||||||||||||||
Minority
interest in consolidated subsidiaries
|
287.6 | 463.6 | 796.8 | 400.6 | 463.6 | 504.0 | 550.0 | 873.4 | 796.8 | 839.7 | 715.3 | |||||||||||||||||||||||||||||||||
Shareholders'
equity:
|
||||||||||||||||||||||||||||||||||||||||||||
Common
stock
|
1.0 | 1.0 | 2.3 | 1.0 | 1.0 | 1.0 | 2.1 | 2.1 | 2.3 | 2.3 | 2.7 | |||||||||||||||||||||||||||||||||
Additional
paid-in capital
|
349.2 | 354.0 | 1,723.1 | 408.8 | 354.0 | 514.2 | 1,473.3 | 1,471.0 | 1,723.1 | 1,724.6 | 1,920.9 | |||||||||||||||||||||||||||||||||
Accumulated
other comprehensive income
|
19.8 | 36.7 | 171.8 | - | 36.7 | - | 116.0 | 121.3 | 171.8 | 273.1 | (130.9 | ) | ||||||||||||||||||||||||||||||||
Retained
earnings (losses)
|
(75.8 | ) | 81.9 | 98.5 | - | 81.9 | - | 100.9 | 41.2 | 98.5 | 69.2 | (44.9 | ) | |||||||||||||||||||||||||||||||
Total
shareholders' equity
|
294.2 | 473.6 | 1,995.7 | 409.8 | 473.6 | 515.2 | 1,692.2 | 1,635.6 | 1,995.7 | 2,069.1 | 1,747.8 | |||||||||||||||||||||||||||||||||
(=)
Total liabilities and shareholders' equity
|
2,691.8 | 3,253.4 | 5,269.1 | 3,056.7 | 3,253.4 | 3,529.1 | 4,684.8 | 4,805.9 | 5,269.1 | 5,634.0 | 5,014.0 |
18 of 19
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Description
|
Cosan S.A. as audited | Santa Luiza | Cosan S.A. as internal books |
GAAP
Adjust-
ments
|
Cosan S.A. | Cosan S.A. | Consolid. into Cosan Ltd. | Cosan Ltd as audited | |||||||||||||||||||||||||||
Currency
|
R$'MM | R$'MM | R$'MM | R$'MM | R$'MM | US$'MM | US$'MM | US$'MM | |||||||||||||||||||||||||||
GAAP
|
BR GAAP | BR GAAP | BR GAAP | US GAAP | US GAAP | US GAAP | US GAAP | ||||||||||||||||||||||||||||
Net
Sales
|
715.1 | (0.3 | ) | 714.8 | 0.7 |
(b)
|
715.5 | 383.8 | (0.0 | ) | 383.8 | ||||||||||||||||||||||||
Cost of goods
sold
|
(547.1 | ) | 0.2 | (546.9 | ) | (49.1 | ) |
(c)
|
(596.0 | ) | (319.7 | ) | (0.4 | ) |
(j)
|
(320.2 | ) | ||||||||||||||||||
Gross
profit
|
167.9 | (0.1 | ) | 167.9 | (48.4 | ) | 119.5 | 64.1 | (0.4 | ) | 63.6 | ||||||||||||||||||||||||
Selling
expenses
|
(88.6 | ) | - | (88.6 | ) | (0.7 | ) |
(b)
|
(89.3 | ) | (47.9 | ) | 0.0 | (47.9 | ) | ||||||||||||||||||||
General and
administrative expenses
|
(60.3 | ) |
(a)
|
1.1 | (59.2 | ) | (4.7 | ) |
(d)
|
(63.9 | ) | (34.3 | ) | (1.8 | ) |
(k)
|
(36.1 | ) | |||||||||||||||||
Operating
income
|
19.1 | 1.0 | 20.0 | (53.8 | ) | (33.8 | ) | (18.1 | ) | (2.2 | ) | (20.3 | ) | ||||||||||||||||||||||
Other income
(expenses):
Financial
income (expenses), net
|
(540.8 | ) | 0.4 | (540.3 | ) | 109.9 |
(e)
|
(430.4 | ) | (230.9 | ) | 2.5 |
(l)
|
(228.4 | ) | ||||||||||||||||||||
Goodwill
amortization
|
(40.4 | ) | 0.1 | (40.3 | ) | 40.3 |
(f)
|
- | - | - | - | ||||||||||||||||||||||||
Other
|
(36.3 | ) | (0.9 | ) | (37.2 | ) | 22.1 |
(n)
|
(15.1 | ) | (8.1 | ) | (0.0 | ) | (8.1 | ) | |||||||||||||||||||
Income (loss)
before income taxes, equity in income of
affiliates and minority interest
|
(598.4 | ) | 0.6 | (597.8 | ) | 118.5 | (479.3 | ) | (257.1 | ) | 0.3 | (256.8 | ) | ||||||||||||||||||||||
Income taxes
(expense) benefit
|
210.0 | (0.3 | ) | 209.7 | (36.6 | ) |
(g)
|
173.1 | 92.9 | - | 92.9 | ||||||||||||||||||||||||
Income (loss)
before equity in income of affiliates and
minority interest
|
(388.4 | ) | 0.3 | (388.1 | ) | 81.9 | (306.2 | ) | (164.3 | ) | 0.3 | (164.0 | ) | ||||||||||||||||||||||
Equity in
income of affiliates
|
1.2 | (0.3 | ) | 0.9 | - | 0.9 | 0.5 | 0.0 | 0.5 | ||||||||||||||||||||||||||
Minority
interest in net income of subsidiaries
|
6.5 | - | 6.5 | (9.9 | ) |
(h)
|
(3.4 | ) | (1.8 | ) | 51.3 |
(m)
|
49.4 | ||||||||||||||||||||||
Net income
(loss)
|
(380.7 | ) | - | (380.7 | ) | 71.9 | (308.7 | ) | (165.6 | ) | 51.5 | (114.1 | ) |
|
(a)
|
Includes
G&A, Management fees and Nonoperating
results
|
|
(b)
|
Reclassification
for services between Cosan Port. and Cosan
S.A.
|
|
(c)
|
Mainly
depreciation on 'purchasing price allocation' in past acquisitions, but
also depreciation in capitalized interests and reversion of depreciation
in revaluated portion of
P,P&E
|
|
(d)
|
Mainly effect
of stock option for executives accounting as
expenses
|
|
(e)
|
Mainly effect
of mark-to market on derivatives, but also effect of interest
capitalization on P,P&E under construction, leasing recognition and
'purchasing price allocation' related to PESA/CTN
debt
|
|
(f)
|
No goodwill
amortization in US GAAP
|
|
(g)
|
Recalculation
of income taxes on GAAP
differences
|
|
(h)
|
Mainly related
to minority participation on Expenses with placement of shares at
Radar
|
|
(i)
|
Conversion
rate calculated line by line on a quarterly basis; quarterly average rate
is the arithmetic average of daily PTAX 800 rate; weekends and holidays
using the last business day
quotation
|
|
(j)
|
Depreciation
on 'purchasing price allocation' in the capital increase from Ltd. on S.A.
last Dec/Jan
|
|
(k)
|
Cosan Ltd. own
G&A expenses (management fees and lawyers,
mainly)
|
|
(l)
|
Mainly cash
interest gains in Cosan Ltd
|
|
(m)
|
Bovespa
floating stake of Cosan S.A. participation on Cosan S.A. net
loss
|
|
(n)
|
Mainly related
to Expenses with placement of shares charged directly to capital increase
in US GAAP
|
19 of 19
|
Unconsolidated
and Consolidated Quarterly Financial Information
|
Cosan S.A. Indústria e
Comércio
|
October 31,
2008
|
Special review
report of independent auditors
|
1
|
Unaudited
quarterly financial information
|
|
Unaudited
Balance sheets
|
3
|
Unaudited
statements of operations
|
5
|
Notes to the
unaudited quarterly financial information
|
7
|
Report on
company’s performance (consolidated)
|
48
|
Other
company’s relevant information
|
69
|
1.
|
We have
performed a special review of the accompanying Quarterly Financial
Information of Cosan S.A. Indústria e Comércio (parent company and
consolidated) for the quarter and six-month periods ended October 31,
2008, including the balance sheets, statements of operations and cash
flows, report on the Company’s performance and explanatory notes, prepared
under the management’s
responsibility.
|
2.
|
Our review was
conducted in accordance with the specific procedures determined by the
Brazilian Institute of Independent Auditors (IBRACON) and the Federal
Board of Accountancy (CFC), which comprised principally: (a) inquiries of
and discussions with the management responsible for the Company’s
accounting, financial and operational areas about the criteria adopted for
the preparation of the Quarterly Financial Information; and (b) review of
information and subsequent events which have, or could have, significant
effects on the Company’s operations and financial
position.
|
3.
|
Based on our
special review, we are not aware of any material modification that should
be made to the Quarterly Financial Information referred to above for it to
comply with specific standards established by the Brazilian Securities and
Exchange Commission (CVM) applicable to the preparation of the Quarterly
Financial Information, including CVM Ruling No.
469/08.
|
4.
|
As mentioned
in Note 2, Law No. 11638 enacted on December 28, 2007 became effective on
January 1, 2008. This Law has modified, revoked and introduced new rules
to Law No. 6404/76 (Corporation Law), which resulted in changes in
accounting practices adopted in Brazil. While such law has already taken
effect, some changes depend on standards to be set by regulators so that
they can be applied by companies. Accordingly, in this transition phase,
CVM Ruling No. 469/08 allowed non-application of the provisions of Law No.
11638/07 for preparation of Quarterly Financial Information (ITR). As a
consequence, the accounting information contained in the Quarterly
Financial Information (ITR) for the quarter and six-month periods ended
October 31, 2008 was prepared in accordance with specific CVM rulings and
do not reflect all the changes in accounting practices introduced by Law
No. 11638/07. As described in Note 2, the application of supplementary CVM
rulings on the adoption of Law No. 11638/07 did not significantly affect
the Company’s financial statements for the quarter ended October 31, 2008
or for any other prior periods
presented.
|
5.
|
The balance
sheets as of July 31, 2008 and notes thereto, presented for comparative
purposes, were reviewed by us, and our special review report was issued on
August 29, 2008. The statements of income and cash flows and notes thereto
for the quarter and six-month periods ended October 31, 2007, presented
for comparative purposes, were reviewed by us, and our special review
report issued on December 11, 2007 did not contain any
qualification.
|
Parent
Company
|
Consolidated
|
||||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
||||||||||||||
Assets
|
|||||||||||||||||
Current
assets
|
|||||||||||||||||
Cash
and cash equivalents
|
Note 4
|
94,436 | 34,303 | 134,596 | 90,449 | ||||||||||||
Marketable
securities
|
Note 5
|
224,780 | 479,774 | 1,428,225 | 543,478 | ||||||||||||
Trade
accounts receivable
|
108,497 | 46,469 | 215,910 | 115,483 | |||||||||||||
Derivative
financial instruments
|
8,758 | 88,404 | 8,758 | 88,404 | |||||||||||||
Inventories
|
Note 6
|
615,712 | 360,158 | 1,439,902 | 905,595 | ||||||||||||
Advances
to suppliers
|
Note 7
|
101,751 | 93,964 | 286,951 | 252,326 | ||||||||||||
Related
parties
|
Note 8
|
1,169,458 | 842,602 | 26,543 | 1,115 | ||||||||||||
Other
assets
|
93,071 | 56,593 | 199,968 | 143,169 | |||||||||||||
Total current
assets
|
2,416,463 | 2,002,267 | 3,740,853 | 2,140,019 | |||||||||||||
Noncurrent
assets
|
|||||||||||||||||
Long-term
receivables
|
|||||||||||||||||
Accounts
receivable from federal government
|
Note
15
|
- | - | 342,201 | 342,201 | ||||||||||||
CTNs-Restricted
Brazilian Treasury Bills
|
Note
14
|
26,283 | 25,348 | 170,879 | 164,811 | ||||||||||||
Deferred
income and social contribution taxes
|
Note
13.b
|
243,988 | 73,692 | 571,890 | 386,698 | ||||||||||||
Advances
to suppliers
|
Note 7
|
31,142 | 23,988 | 93,636 | 88,171 | ||||||||||||
Other
assets
|
16,257 | 23,986 | 123,955 | 124,095 | |||||||||||||
Permanent
assets
|
|||||||||||||||||
Investments
|
Note 9
|
2,721,274 | 1,908,696 | 129,213 | 124,225 | ||||||||||||
Property,
plant and equipment
|
Note
10
|
822,258 | 854,015 | 2,993,156 | 2,864,722 | ||||||||||||
Intangible
|
Note
11
|
404,922 | 421,410 | 1,074,496 | 1,115,561 | ||||||||||||
Deferred
charges
|
17,591 | 11,018 | 33,436 | 18,043 | |||||||||||||
Total
noncurrent assets
|
4,283,715 | 3,342,153 | 5,532,862 | 5,228,527 | |||||||||||||
Total
assets
|
6,700,178 | 5,344,420 | 9,273,715 | 7,368,546 |
Parent
Company
|
Consolidated
|
||||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
||||||||||||||
Liabilities
and shareholders’ equity
|
|||||||||||||||||
Current
liabilities
|
|||||||||||||||||
Loans and
financing
|
Note
14
|
266,998 | 46,910 | 301,650 | 66,367 | ||||||||||||
Derivative
financial instruments
|
105,306 | 13,088 | 105,306 | 13,088 | |||||||||||||
Trade accounts
payable
|
196,269 | 136,633 | 492,007 | 331,567 | |||||||||||||
Salaries
payable
|
60,666 | 50,284 | 142,966 | 118,968 | |||||||||||||
Taxes and
social contributions payable
|
Note
12
|
28,785 | 30,653 | 109,725 | 114,951 | ||||||||||||
Advances from
customers
|
4,782 | 4,007 | 32,123 | 25,488 | |||||||||||||
Related
parties
|
Note 8
|
78,753 | 36,270 | - | - | ||||||||||||
Deferred
income and social contribution taxes on revaluation
reserve
|
- | - | 5,486 | 5,486 | |||||||||||||
Other
liabilities
|
7,617 | 6,691 | 26,564 | 17,464 | |||||||||||||
Total current
liabilities
|
749,176 | 324,536 | 1,215,827 | 693,379 | |||||||||||||
Noncurrent
liabilities
|
|||||||||||||||||
Loans and
financing
|
Note
14
|
1,136,133 | 920,429 | 2,679,347 | 2,047,935 | ||||||||||||
Taxes and
social contributions payable
|
Note
12
|
60,617 | 48,841 | 346,112 | 351,532 | ||||||||||||
Related
parties
|
Note 8
|
779,488 | 577,292 | - | - | ||||||||||||
Provision for
judicial demands
|
Note
15
|
208,811 | 202,366 | 873,113 | 849,797 | ||||||||||||
Deferred
income and social contribution taxes on revaluation
reserve
|
- | - | 21,910 | 24,493 | |||||||||||||
Other
liabilities
|
3,153 | 3,299 | 116,475 | 116,787 | |||||||||||||
Total
noncurrent liabilities
|
2,188,202 | 1,752,227 | 4,036,957 | 3,390,544 | |||||||||||||
Minority
shareholders’ interest
|
- | 258,131 | 16,966 | ||||||||||||||
Shareholders’
equity
|
Note
16
|
||||||||||||||||
Capital
|
3,815,268 | 2,935,268 | 3,815,268 | 2,935,268 | |||||||||||||
Treasury
stock
|
(4,186 | ) | - | (4,186 | ) | - | |||||||||||
Revaluation
reserves
|
193,801 | 194,153 | 193,801 | 194,153 | |||||||||||||
Legal
reserve
|
15,954 | 15,954 | 15,954 | 15,954 | |||||||||||||
Reserve for
new investments and upgrading
|
180,210 | 180,210 | 180,210 | 180,210 | |||||||||||||
Accumulated
losses
|
(438,247 | ) | (57,928 | ) | (438,247 | ) | (57,928 | ) | |||||||||
Total
shareholders’ equity
|
3,762,800 | 3,267,657 | 3,762,800 | 3,267,657 | |||||||||||||
Total
liabilities and shareholders’ equity
|
6,700,178 | 5,344,420 | 9,273,715 | 7,368,546 |
Quarter
|
|||||||||||||||||
Parent
Company
|
Consolidated
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||||||
Gross
operating revenue
|
|||||||||||||||||
Sales of goods
and services
|
385,614 | 383,749 | 760,101 | 678,331 | |||||||||||||
Taxes and
sales deductions
|
(18,488 | ) | (21,676 | ) | (45,025 | ) | (50,842 | ) | |||||||||
Net operating
revenue
|
367,126 | 362,073 | 715,076 | 627,489 | |||||||||||||
Cost of goods
sold and services rendered
|
(317,626 | ) | (326,667 | ) | (547,135 | ) | (551,112 | ) | |||||||||
Gross
profit
|
49,500 | 35,406 | 167,941 | 76,377 | |||||||||||||
Operating
income (expenses)
|
|||||||||||||||||
Selling
expenses
|
(29,242 | ) | (38,616 | ) | (88,606 | ) | (91,944 | ) | |||||||||
General and
administrative expenses
|
(42,012 | ) | (28,319 | ) | (65,118 | ) | (43,858 | ) | |||||||||
Management
fees
|
Note
17
|
(1,397 | ) | (1,245 | ) | (1,397 | ) | (1,681 | ) | ||||||||
Financial
income (expenses), net
|
Note
18
|
(523,949 | ) | 160,810 | (540,768 | ) | 144,314 | ||||||||||
Earnings
(losses) on equity investments
|
Note 9
|
(19,664 | ) | (51,535 | ) | 1,234 | 23 | ||||||||||
Goodwill
amortization
|
(16,488 | ) | (36,119 | ) | (40,405 | ) | (56,626 | ) | |||||||||
Expenses with
placement of shares
|
- | - | (22,059 | ) | - | ||||||||||||
Other
operating income (expenses), net
|
4,946 | 11,595 | (14,198 | ) | (2,018 | ) | |||||||||||
(627,806 | ) | 16,571 | (771,317 | ) | (51,790 | ) | |||||||||||
Operating
income (loss)
|
(578,306 | ) | 51,977 | (603,376 | ) | 24,587 | |||||||||||
Nonoperating
result
|
4,964 | 148 | 6,235 | 2,294 | |||||||||||||
Income (loss)
before income and social contribution taxes
|
(573,342 | ) | 52,125 | (597,141 | ) | 26,881 | |||||||||||
Income and
social contribution taxes
|
Note
13
|
192,671 | (36,902 | ) | 209,960 | (12,330 | ) | ||||||||||
Minority
shareholders’ interest
|
- | - | 6,510 | 672 | |||||||||||||
Net income
(loss) for the period
|
(380,671 | ) | 15,223 | (380,671 | ) | 15,223 | |||||||||||
Earnings
(loss) per share – in Reais
|
(1.16 | ) | 0.08 |
Six-month
periods
|
|||||||||||||||||
Parent
Company
|
Consolidated
|
||||||||||||||||
2008
|
2007
|
2008
|
2007
|
||||||||||||||
Gross
operating revenue
|
|||||||||||||||||
Sales of goods
and services
|
745,378 | 760,013 | 1,452,770 | 1,314,775 | |||||||||||||
Taxes and
sales deductions
|
(43,107 | ) | (37,926 | ) | (98,104 | ) | (95,573 | ) | |||||||||
Net operating
revenue
|
702,271 | 722,087 | 1,354,666 | 1,219,202 | |||||||||||||
Cost of goods
sold and services rendered
|
(648,818 | ) | (658,383 | ) | (1,173,162 | ) | (1,099,122 | ) | |||||||||
Gross
profit
|
53,453 | 63,704 | 181,504 | 120,080 | |||||||||||||
Operating
income (expenses)
|
|||||||||||||||||
Selling
expenses
|
(64,397 | ) | (65,920 | ) | (174,314 | ) | (153,027 | ) | |||||||||
General and
administrative expenses
|
(77,219 | ) | (62,290 | ) | (123,394 | ) | (98,684 | ) | |||||||||
Management
fees
|
Note
17
|
(2,849 | ) | (2,963 | ) | (2,849 | ) | (3,856 | ) | ||||||||
Financial
income (expenses), net
|
Note
18
|
(385,265 | ) | 331,910 | (453,831 | ) | 295,156 | ||||||||||
Earnings
(losses) on equity investments
|
Note 9
|
(109,546 | ) | (100,640 | ) | 1,394 | 141 | ||||||||||
Goodwill
amortization
|
(32,977 | ) | (72,238 | ) | (80,790 | ) | (112,594 | ) | |||||||||
Expenses with
placement of shares
|
- | - | (22,059 | ) | - | ||||||||||||
Other
operating income (expenses), net
|
3,112 | 7,792 | (14,836 | ) | (3,499 | ) | |||||||||||
(669,141 | ) | 35,651 | (870,679 | ) | (76,363 | ) | |||||||||||
Operating
income (loss)
|
(615,688 | ) | 99,355 | (689,175 | ) | 43,717 | |||||||||||
Nonoperating
result
|
5,933 | 1,016 | 10,737 | 5,248 | |||||||||||||
Income (loss)
before income and social contribution taxes
|
(609,755 | ) | 100,371 | (678,438 | ) | 48,965 | |||||||||||
Income and
social contribution taxes
|
Note
13
|
170,941 | (71,481 | ) | 232,364 | (21,377 | ) | ||||||||||
Minority
shareholders’ interest
|
- | - | 7,260 | 1,302 | |||||||||||||
Net income
(loss) for the period
|
(438,814 | ) | 28,890 | (438,814 | ) | 28,890 | |||||||||||
Earnings
(loss) per share – in Reais
|
(1.34 | ) | 0.15 |
1.
|
Operations
|
1.
|
Operations
(Continued)
|
2.
|
Basis
of preparation and presentation of the financial
statements
|
2.
|
Basis of preparation and
presentation of the financial statements
(Continued)
|
2.
|
Basis of preparation and
presentation of the financial statements
(Continued)
|
a) |
Intercompany
assets and liabilities are eliminated;
|
|
b) | Equity investments in subsidiaries, proportionate to the parent company interest in the shareholders’ equity of subsidiaries, are eliminated; | |
c) | Intercompany revenues and expenses are eliminated; and | |
d) | Significant unearned intercompany income is eliminated, when relevant. |
2.
|
Basis of preparation and
presentation of the financial statements
(Continued)
|
Interest
as of
|
||||||||||||||||
October
31, 2008
|
July
31, 2008
|
|||||||||||||||
Direct
|
Indirect
|
Direct
|
Indirect
|
|||||||||||||
Cosan
Operadora Portuária S.A.
|
90.00 | % | - | 90.00 | % | - | ||||||||||
Administração
de Participações Aguassanta Ltda.
|
91.50 | % | - | 91.50 | % | - | ||||||||||
Agrícola Ponte
Alta S.A.
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Cosan
Distribuidora de Combustíveis Ltda.
|
99.99 | % | - | 99.99 | % | - | ||||||||||
Cosan S.A.
Bioenergia
|
100.00 | % | - | - | - | |||||||||||
Barra
Bioenergia S.A.
|
- | 99.10 | % | 100.00 | % | 99.10 | % | |||||||||
Cosan
International Universal Corporation
|
100.00 | % | - | 100.00 | % | - | ||||||||||
Cosan Finance
Limited
|
100.00 | % | - | 100.00 | % | - | ||||||||||
DaBarra
Alimentos Ltda.
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Bonfim Nova
Tamoio – BNT Agrícola Ltda.
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Usina da Barra
S.A. Açúcar e Álcool
|
89.91 | % | 9.20 | % | 89.91 | % | 9.20 | % | ||||||||
Grançucar S.A.
Refinadora de Açúcar
|
99.99 | % | 0.01 | % | 99.99 | % | 0.01 | % | ||||||||
Cosan
Centroeste S.A. Açúcar e Álcool
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Usina Santa
Luiza S.A.
|
- | 33.03 | % | - | 33.03 | % | ||||||||||
Benálcool
Açúcar e Álcool S.A.
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Barrapar
Participações Ltda.
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Aliança
Indústria e Comércio de Açúcar e Álcool Ltda.
|
- | 99.10 | % | - | 99.10 | % | ||||||||||
Santa Cecília
Agro-industrial S.A.
|
- | 33.03 | % | - | 33.03 | % | ||||||||||
Radar
Propriedades Agrícolas S.A. (1)
|
18.92 | % | - | - | ||||||||||||
Cosanpar
Participações S.A. (2)
|
99.99 | % | 0.01 | % | - | - |
2.
|
Basis of preparation and
presentation of the financial statements
(Continued)
|
|
·
|
Compensation based on executive
and employee stock purchase options. The Company disclosed in Note 21, the
terms of its Stock Purchase Option Plan and possible accounting effects
existing as of the date of the quarterly
information;
|
|
·
|
The concept of discount to present
value is now applied to long-term assets and liabilities, as well as to
short-term assets and liabilities having a significant effect on financial
reporting. The Company did not identify any operations that could have
significant effects on the quarterly information for the periods reported
as far as discount to present value is
concerned;
|
|
·
|
The balances of the revaluation
reserve, as determined by CVM Ruling No. 469, may be maintained through
their effective realization date or reserved. The Company decided to
present to the Board the revertion of whole revaluation reserve
in the amount
as shown on Note
10;
|
2.
|
Basis of preparation and
presentation of the financial statements
(Continued)
|
|
·
|
Requirements that investments in
financial instruments, including derivatives, should be recorded: (i) at
their market or equivalent value, whenever it involves investments for
trading or available to sale; and (ii) at the acquisition cost or issue
value, updated in accordance with the legal or contractual provisions,
adjusted to the probable realizable value, whenever it is lower. The
Company and its subsidiaries will apply these changes when a specific
standard is issued on the matter. At present, for disclosure purposes
only, the Company records its derivative financial instruments at market,
as set out in Note 19; and,
|
|
·
|
Inclusion of the Statement of
Value Added (SVA) in the set of financial statements. Company
management will present this statement when preparing its annual financial
statements as of March 31,
2009.
|
3.
|
Summary
of significant accounting practices
|
4.
|
Cash
and cash equivalents
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Cash
|
100 | 46 | 160 | 107 | ||||||||||||
“Overnight” investments
|
- | - | 17,274 | 12,743 | ||||||||||||
Bank checking
accounts
|
6,655 | 11,272 | 11,044 | 39,435 | ||||||||||||
Amounts
pending foreign exchange closing
|
87,681 | 22,985 | 106,118 | 38,164 | ||||||||||||
94,436 | 34,303 | 134,596 | 90,449 |
4.
|
Cash and cash
equivalents (Continued)
|
5.
|
Marketable
securities
|
6.
|
Inventories
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Finished
goods:
|
||||||||||||||||
Sugar
|
226,119 | 90,742 | 459,259 | 229,013 | ||||||||||||
Ethanol
|
221,122 | 91,766 | 547,173 | 235,781 | ||||||||||||
Other
|
2,966 | 3,443 | 5,766 | 5,768 | ||||||||||||
Harvest
costs
|
109,831 | 121,207 | 288,680 | 305,443 | ||||||||||||
Supplies and
other
|
59,689 | 57,015 | 147,615 | 138,991 | ||||||||||||
Provision for
inventory realization and obsolescence
|
(4,015 | ) | (4,015 | ) | (8,591 | ) | (9,401 | ) | ||||||||
615,712 | 360,158 | 1,439,902 | 905,595 |
7.
|
Advances
to suppliers
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Sugarcane
suppliers
|
117,366 | 114,554 | 334,087 | 329,779 | ||||||||||||
Equipment,
material and service suppliers
|
15,527 | 3,398 | 46,500 | 10,718 | ||||||||||||
132,893 | 117,952 | 380,587 | 340,497 | |||||||||||||
Current
|
(101,751 | ) | (93,964 | ) | (286,951 | ) | (252,326 | ) | ||||||||
Noncurrent
|
31,142 | 23,988 | 93,636 | 88,171 |
8.
|
Related
parties
|
Assets
|
||||||||||||||||
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Usina da Barra
S.A. Açúcar e Álcool
|
1,143,508 | 812,382 | - | - | ||||||||||||
Cosan
International Universal Corporation
|
12,199 | - | - | - | ||||||||||||
Vertical UK
LLP
|
5,738 | - | 26,543 | 1,115 | ||||||||||||
Cosan
Operadora Portuária S.A.
|
3,949 | 15,239 | - | - | ||||||||||||
Cosan
International Universal Corporation
|
- | 13,004 | - | - | ||||||||||||
Other
|
4,064 | 1,977 | - | - | ||||||||||||
1,169,458 | 842,602 | 26,543 | 1,115 |
Liabilities
|
|||||||||
Parent
Company
|
|||||||||
10/31/08
|
07/31/08
|
||||||||
Cosan Finance
Limited
|
846,605 | 613,562 | |||||||
11,636 | - | ||||||||
858,241 | 613,562 | ||||||||
Current
|
(78,753 | ) | (36,270 | ) | |||||
Noncurrent
|
779,488 | 577,292 |
8.
|
Related parties
(Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
|||||||||||||
Transactions
involving assets
|
||||||||||||||||
Remittance of
financial resources, net of receipts and credit
assignments
|
48,966 | 117,252 | (56,378 | ) | (32 | ) | ||||||||||
Advance for
future capital increase
|
172,428 | - | - | - | ||||||||||||
Transfer from
advances for future capital increase to investment
|
- | (556,566 | ) | - | - | |||||||||||
Sale of
finished goods and services
|
104,360 | 184,639 | 81,806 | - | ||||||||||||
Purchase of
finished goods and services
|
(28,688 | ) | (102,721 | ) | - | - | ||||||||||
Financial
income
|
29,790 | 4,215 | - | - | ||||||||||||
Transactions
involving liabilities
|
||||||||||||||||
Proceeds
received as financial resources, net of payments
|
11,636 | 363,948 | - | - | ||||||||||||
Financial
expenses
|
233,043 | (52,200 | ) | - | - |
8.
|
Related parties
(Continued)
|
9.
|
Investments
|
Parent
Company
|
|||||||||||||||||||||||||||||||||||||
Investee
|
Investor
|
||||||||||||||||||||||||||||||||||||
Equity
|
Profit
(loss) of the period
|
Interest
%
|
Investments
|
Earnings
(losses) on equity investments
|
|||||||||||||||||||||||||||||||||
10/31/08
|
05/01/08
to
10/31/08
|
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
||||||||||||||||||||||||||||
Administração
de Participações Aguassanta Ltda.
|
145,962 | (12,388 | ) | 91.5 | 91.5 | 133,553 | 135,559 | (2,006 | ) | (11,335 | ) | (8,271 | ) | (16,446 | ) | ||||||||||||||||||||||
Usina da Barra
S.A. Açúcar e Álcool
|
1,453,279 | (123,159 | ) | 89.9 | 89.9 | 1,306,570 | 1,326,139 | (19,569 | ) | (110,733 | ) | (42,457 | ) | (84,419 | ) | ||||||||||||||||||||||
Cosan
Operadora Portuária S.A.
|
72,270 | 2,221 | 90.0 | 90.0 | 65,040 | 33,221 | 536 | 1,997 | 1,232 | 2,764 | |||||||||||||||||||||||||||
TEAS -
Terminal Exportador de Álcool de Santos S.A.
|
45,403 | 1,062 | 32.0 | 32.0 | 14,529 | 14,292 | 237 | 397 | 23 | 141 | |||||||||||||||||||||||||||
Cosan S.A.
Bioenergia(2)
|
139,854 | (721 | ) | 100.0 | 100.0 | 139,854 | 265,561 | (721 | ) | (721 | ) | - | - | ||||||||||||||||||||||||
Cosan
International Universal Corporation
|
11,918 | 4,586 | 100.0 | 100.0 | 11,917 | 9,011 | (191 | ) | 4,586 | - | - | ||||||||||||||||||||||||||
Cosan Finance
Limited
|
23,146 | 6,802 | 100.0 | 100.0 | 23,146 | 14,948 | 2,554 | 6,802 | 1,424 | 1,424 | |||||||||||||||||||||||||||
Radar
Propriedades Agrícolas S.A.
|
293,318 | (7,860 | ) | 18.9 | - | 55,493 | - | (1,487 | ) | (1,487 | ) | - | - | ||||||||||||||||||||||||
Cosanpar
Participações S.A.
|
557,379 | - | 100.0 | - | 854,793 | - | - | - | - | - | |||||||||||||||||||||||||||
Rezende
Barbosa S.A. Administração e Participações(1)
|
- | - | - | - | 100,000 | 100,000 | - | - | - | - | |||||||||||||||||||||||||||
Other
|
- | - | - | - | 16,379 | 9,965 | 983 | 948 | (3,486 | ) | (4,104 | ) | |||||||||||||||||||||||||
2,721,274 | 1,908,696 | (19,664 | ) | (109,546 | ) | (51,535 | ) | (100,640 | ) |
|
(1)
|
Refers to
advance for future acquisition of investment;
and,
|
|
(2)
|
Due to caption
of proceeding through BNDES (Note 14), the subsidiary paid whole balance
of advances for future capital increase stated as of July 31, 2008, in the
amount of R$124.986.
|
9.
|
Investments
(Continued)
|
Parent
Company
|
Consolidated
|
|||||||
Opening
balances
|
1,908,696 | 124,225 | ||||||
Earnings
(losses) on equity investments
|
(19,664 | ) | 1,234 | |||||
Acquisition of
investments
|
649,396 | 3,754 | ||||||
Advances for
future capital increase
|
297,414 | - | ||||||
Payment of
advances for future capital increase (2)
|
(124,986 | ) | - | |||||
Currency
translation adjustment
|
8,741 | - | ||||||
Other
|
1,677 | - | ||||||
Closing
balances
|
2,721,274 | 129,213 |
10.
|
Property,
plant and equipment
|
Parent
Company
|
||||||||||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||||||||||
Average
annual depreciation
rates
(%)
|
Cost
|
Revaluation
|
Accumulated
depreciation/
amortization
|
Net
|
Net
|
|||||||||||||||||||
Land and rural
properties
|
- | 73,121 | 108,150 | - | 181,271 | 181,271 | ||||||||||||||||||
Machinery,
equipment and installations
|
10.83 | 388,112 | - | (217,100 | ) | 171,012 | 169,668 | |||||||||||||||||
Vehicles
|
21.74 | 44,877 | - | (30,566 | ) | 14,311 | 15,103 | |||||||||||||||||
Furniture,
fixtures and computer equipment
|
18.43 | 62,053 | - | (22,889 | ) | 39,164 | 41,020 | |||||||||||||||||
Buildings and
improvements
|
4.00 | 150,817 | - | (26,150 | ) | 124,667 | 122,468 | |||||||||||||||||
Construction
in progress
|
- | 54,467 | - | - | 54,467 | 54,995 | ||||||||||||||||||
Sugarcane
planting costs
|
20.00 | 366,731 | - | (151,237 | ) | 215,494 | 227,213 | |||||||||||||||||
Parts and
components to be periodically replaced
|
100.00 | 72,579 | - | (53,600 | ) | 18,979 | 39,539 | |||||||||||||||||
Other
|
- | 2,893 | - | - | 2,893 | 2,738 | ||||||||||||||||||
1,215,650 | 108,150 | (501,542 | ) | 822,258 | 854,015 |
Consolidated
|
||||||||||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||||||||||
Average
annual depreciation
rates
(%)
|
Cost
|
Revaluation
|
Accumulated
depreciation/
amortization
|
Net
|
Net
|
|||||||||||||||||||
Land and rural
properties
|
- | 224,417 | 362,502 | - | 586,919 | 586,966 | ||||||||||||||||||
Machinery,
equipment and installations
|
12.41 | 1,172,457 | 141,452 | (863,217 | ) | 450,692 | 415,927 | |||||||||||||||||
Vehicles
|
21.34 | 118,132 | 8,979 | (93,039 | ) | 34,072 | 35,212 | |||||||||||||||||
Furniture,
fixtures and computer equipment
|
17.39 | 91,094 | 107 | (43,163 | ) | 48,038 | 50,654 | |||||||||||||||||
Buildings and
improvements
|
4.09 | 398,333 | 54,264 | (129,059 | ) | 323,538 | 292,652 | |||||||||||||||||
Construction
in progress
|
- | 695,763 | - | - | 695,763 | 582,241 | ||||||||||||||||||
Sugarcane
planting costs
|
20.00 | 1,073,289 | - | (468,426 | ) | 604,863 | 631,687 | |||||||||||||||||
Parts and
components to be periodically replaced
|
100.00 | 159,717 | - | (119,987 | ) | 39,730 | 91,035 | |||||||||||||||||
Advances for
fixed asset purchases
|
- | 207,571 | - | - | 207,571 | 179,680 | ||||||||||||||||||
Other
|
- | 1,970 | - | - | 1,970 | 1,885 | ||||||||||||||||||
Property,
plant and equipment impairment loss
|
- | - | - | - | (3,217 | ) | ||||||||||||||||||
4,142,743 | 567,304 | (1,716,891 | ) | 2,993,156 | 2,864,722 |
10.
|
Property, plant and equipment
(Continued)
|
11.
|
Intangible
|
|
Refers
substantially to goodwill paid on expected profit. Balances at October 31,
2008 and July 31, 2008 are as
follows:
|
Average
annual amortization
rates
(%)
|
Parent Company | |||||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||||||
Cost
|
Accumulated
amortization
|
Net
|
Net
|
|||||||||||||||||
Goodwill on
the acquisition of JVM Participações S.A.
|
20
|
63,720 | (47,790 | ) | 15,930 | 19,116 | ||||||||||||||
Goodwill on
the acquisition of Grupo Mundial
|
10
|
127,953 | (35,187 | ) | 92,766 | 95,965 | ||||||||||||||
Goodwill on
the payment of capital of Mundial
|
10
|
21,142 | (5,461 | ) | 15,681 | 16,209 | ||||||||||||||
Goodwill on
the acquisition of Corona (ABC 125 and ABC 126)
|
10
|
267,824 | (73,652 | ) | 194,172 | 200,866 | ||||||||||||||
Goodwill on
the acquisition of Usina Açucareira Bom Retiro S.A.
|
10
|
115,165 | (28,792 | ) | 86,373 | 89,254 | ||||||||||||||
595,804 | (190,882 | ) | 404,922 | 421,410 |
Consolidated | ||||||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||||||
Average
annual amortization
rates
(%)
|
Cost
|
Accumulated
amortization
|
Net
|
Net
|
||||||||||||||||
Goodwill on
the acquisition of JVM Participações S.A.
|
20
|
63,720 | (47,790 | ) | 15,930 | 19,116 | ||||||||||||||
Goodwill on
the acquisition of Usina da Barra
|
20
|
35,242 | (31,747 | ) | 3,495 | 5,258 | ||||||||||||||
Goodwill on
the constitution of FBA
|
10
|
22,992 | (17,627 | ) | 5,365 | 5,939 | ||||||||||||||
Goodwill on
the acquisition of Univalem S.A. Açúcar e Álcool
|
10
|
24,118 | (18,095 | ) | 6,023 | 6,626 | ||||||||||||||
Goodwill on
the acquisition of Grupo Destivale
|
10
|
69,918 | (24,510 | ) | 45,408 | 47,155 | ||||||||||||||
Goodwill on
the acquisition of Grupo Mundial
|
10
|
127,953 | (35,187 | ) | 92,766 | 95,965 | ||||||||||||||
Goodwill on
the payment of capital of Mundial
|
10
|
21,142 | (5,461 | ) | 15,681 | 16,209 | ||||||||||||||
Goodwill on
the acquisition of Corona
|
10
|
818,831 | (221,697 | ) | 597,134 | 617,604 | ||||||||||||||
Goodwill on
the acquisition of Usina Açucareira Bom Retiro S.A.
|
10
|
115,165 | (28,792 | ) | 86,373 | 89,254 | ||||||||||||||
Goodwill on
the acquisition of Usina Santa Luiza
|
10
|
55,787 | (7,517 | ) | 48,270 | 50,879 | ||||||||||||||
Goodwill on
the acquisition of Benálcool
|
10
|
167,300 | (11,109 | ) | 156,191 | 159,696 | ||||||||||||||
Goodwill on
the acquisition of Aliança (1)
|
-
|
1,860 | - | 1,860 | 1,860 | |||||||||||||||
1,524,028 | (449,532 | ) | 1,074,496 | 1,115,561 |
12.
|
Taxes
and social contributions payable
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
ICMS – State
VAT
|
81 | 901 | 8,116 | 9,561 | ||||||||||||
INSS – Social
Security
|
6,904 | 8,538 | 22,617 | 24,054 | ||||||||||||
PIS – Social
Integration Program
|
2,475 | 431 | 3,666 | 3,755 | ||||||||||||
COFINS –
Social Security Financing
|
11,178 | 1,984 | 16,671 | 17,078 | ||||||||||||
Tax Recovery
Program – REFIS
|
- | - | 281,108 | 282,693 | ||||||||||||
Special Tax
Payment Program – PAES
|
54,287 | 56,176 | 75,710 | 78,599 | ||||||||||||
Income and
social contribution taxes payable
|
1,838 | 3,225 | 27,270 | 27,916 | ||||||||||||
Other
|
12,639 | 8,239 | 20,679 | 22,827 | ||||||||||||
89,402 | 79,494 | 455,837 | 466,483 | |||||||||||||
Current
liabilities
|
(28,785 | ) | (30,653 | ) | (109,725 | ) | (114,951 | ) | ||||||||
Noncurrent
liabilities
|
60,617 | 48,841 | 346,112 | 351,532 |
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
13 to 24
months
|
15,773 | 11,324 | 40,471 | 40,394 | ||||||||||||
25 to 36
months
|
15,295 | 11,032 | 39,019 | 39,386 | ||||||||||||
37 to 48
months
|
15,056 | 10,624 | 38,565 | 38,493 | ||||||||||||
49 to 60
months
|
9,379 | 10,479 | 31,398 | 35,851 | ||||||||||||
61 to 72
months
|
987 | 1,056 | 20,168 | 20,458 | ||||||||||||
73 to 84
months
|
987 | 976 | 20,168 | 20,378 | ||||||||||||
85 to 96
months
|
987 | 976 | 20,168 | 20,378 | ||||||||||||
Above 97
months
|
2,153 | 2,374 | 136,155 | 136,194 | ||||||||||||
60,617 | 48,841 | 346,112 | 351,532 |
12.
|
Taxes and social contributions
payable (Continued)
|
Consolidated
|
||||||||
10/31/08
|
07/31/08
|
|||||||
Original
amount:
|
||||||||
Principal
|
166,921 | 166,921 | ||||||
Penalty
|
50,714 | 50,714 | ||||||
Interest
|
81,358 | 81,358 | ||||||
Legal fees and
charges
|
17,212 | 17,212 | ||||||
Offset of
income and social contribution tax loss carryforward against the
debt
|
(23,977 | ) | (23,977 | ) | ||||
292,228 | 292,228 | |||||||
Charges based
upon TJLP variation
|
119,958 | 117,465 | ||||||
Payments
made
|
(131,078 | ) | (127,000 | ) | ||||
281,108 | 282,693 | |||||||
Current
liabilities
|
(18,464 | ) | (18,705 | ) | ||||
Noncurrent
liabilities
|
262,644 | 263,988 |
12.
|
Taxes and social contributions
payable (Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Tax debts
including restatement up to the date of adherence to the
program:
|
||||||||||||||||
SRF/FNDE
taxes
|
62,093 | 62,093 | 83,914 | 83,914 | ||||||||||||
INSS
contributions
|
13,216 | 13,216 | 24,709 | 24,709 | ||||||||||||
Amortization
|
(46,932 | ) | (44,435 | ) | (69,940 | ) | (66,201 | ) | ||||||||
Monetary
restatement
|
25,910 | 25,302 | 37,027 | 36,177 | ||||||||||||
54,287 | 56,176 | 75,710 | 78,599 | |||||||||||||
Current
installments
|
(10,283 | ) | (10,171 | ) | (15,267 | ) | (15,101 | ) | ||||||||
Noncurrent
installments
|
44,004 | 46,005 | 60,443 | 63,498 |
13.
|
Income
and social contribution taxes
|
Parent
Company
|
Consolidated
|
|||||||||||||||||||||||||||||||
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
|||||||||||||||||||||||||
Income (loss)
before income and social contribution taxes
|
(573,342 | ) | (609,755 | ) | 52,125 | 100,371 | (597,141 | ) | (678,438 | ) | 26,881 | 48,965 | ||||||||||||||||||||
Income and
Social Contribution taxes at nominal rate (34%)
|
194,936 | 207,316 | (17,723 | ) | (34,126 | ) | 203,027 | 230,668 | (9,140 | ) | (16,648 | ) | ||||||||||||||||||||
Adjustments to
calculate effective rate:
|
||||||||||||||||||||||||||||||||
Earnings
(losses) on equity investments
|
(6,686 | ) | (37,246 | ) | (17,522 | ) | (34,218 | ) | 420 | 474 | 8 | 48 | ||||||||||||||||||||
Non-deductible
goodwill amortization
|
(569 | ) | (1,138 | ) | (838 | ) | (1,676 | ) | (1,415 | ) | (2,830 | ) | (838 | ) | (1,676 | ) | ||||||||||||||||
Non-deductible
donations and contributions
|
(1,015 | ) | (1,595 | ) | (409 | ) | (830 | ) | (1,220 | ) | (2,283 | ) | (681 | ) | (1,545 | ) | ||||||||||||||||
Non-deductible
currency translation adjustment
|
2,972 | 2,491 | (51 | ) | 253 | 2,972 | 2,491 | (51 | ) | 253 | ||||||||||||||||||||||
Inventories
adjustments
|
3,174 | 424 | 255 | 255 | 4,199 | 789 | 413 | 564 | ||||||||||||||||||||||||
Other
|
(141 | ) | 689 | (614 | ) | (1,139 | ) | 1,977 | 3,055 | (2,041 | ) | (2,373 | ) | |||||||||||||||||||
Total current
and deferred taxes
|
192,671 | 170,941 | (36,902 | ) | (71,481 | ) | 209,960 | 232,364 | (12,330 | ) | (21,377 | ) | ||||||||||||||||||||
Effective
rate
|
- | - | 70.80 | % | 71.22 | % | - | - | 45.87 | % | 43.66 | % |
Parent
Company
|
||||||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||||||
Base
|
IRPJ
25%
|
CSSL
9%
|
Total
|
Total
|
||||||||||||||||
Provision for
judicial demands and other temporary differences
|
152,660 | 38,165 | 13,739 | 51,904 | 42,530 | |||||||||||||||
Income tax
losses
|
564,925 | 141,231 | - | 141,231 | 22,907 | |||||||||||||||
Social
contribution tax losses
|
565,026 | - | 50,853 | 50,853 | 8,255 | |||||||||||||||
Deferred taxes
- noncurrent assets
|
179,396 | 64,592 | 243,988 | 73,692 |
Consolidated
|
||||||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||||||
Base
|
IRPJ
25%
|
CSSL
9%
|
Total
|
Total
|
||||||||||||||||
Provision for
judicial demands and other temporary differences
|
817,638 | 204,409 | 73,587 | 277,996 | 260,406 | |||||||||||||||
Income tax
losses
|
864,369 | 216,092 | - | 216,092 | 92,855 | |||||||||||||||
Social
contribution tax losses
|
864,470 | - | 77,802 | 77,802 | 33,437 | |||||||||||||||
Deferred taxes
– noncurrent assets
|
420,501 | 151,389 | 571,890 | 386,698 |
13.
|
Income and social contribution
taxes (Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
2011
|
- | - | 13,320 | 14,264 | ||||||||||||
2012
|
6,650 | 5,994 | 35,050 | 37,955 | ||||||||||||
From 2013 to
2015
|
132,320 | 55,704 | 291,800 | 248,900 | ||||||||||||
From 2016 to
2018
|
105,108 | 11,994 | 231,720 | 85,579 | ||||||||||||
243,988 | 73,692 | 571,890 | 386,698 |
14.
|
Loans
and financing
|
Financial
charges
|
Parent
Company
|
Consolidated
|
Guarantees
(2)
|
||||||||||||||||||||||||||||
Purpose
|
Index
|
Average
annual
interest
rate
|
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
Final
maturity
|
10/31/08
|
07/31/08
|
||||||||||||||||||||||
Senior Notes
Due 2009
|
Dollar
(US)
|
9.0% | 75,745 | 57,539 | 75,745 | 57,539 |
November/2009
|
- | - | ||||||||||||||||||||||
Senior Notes
Due 2017
|
Dollar
(US)
|
7.0% | - | - | 860,763 | 626,640 |
February/2017
|
- | - | ||||||||||||||||||||||
Perpetual Notes | Dollar (US) | 8.25% | 970,583 | 718,818 | 970,583 | 718,818 | - | - | |||||||||||||||||||||||
- | |||||||||||||||||||||||||||||||
IFC | Dollar (US) | 7.44% | 116,045 | 85,008 | 116,045 | 85,008 | January/2013 | Chattel mortagage | Chattel mortagage | ||||||||||||||||||||||
ACC | Dollar (US) | 6.25% | 127,555 | - | 127,555 | - | August/2009 | - | - | ||||||||||||||||||||||
BNDES
(3)
|
TJLP
|
2.61%
|
-
|
-
|
191,660
|
-
|
Janeiro/2022
|
Credit rights
from contracts of energy trading
|
-
|
||||||||||||||||||||||
Resolution 247
(1)
|
IGP-M
Corn price
variation
|
3.95%
12.5%
|
97,928
137
|
96,572
137
|
589,931
137
|
583,637
738
|
December/2020
October/2025
|
National
Treasury Securities and land mortagage
|
- | ||||||||||||||||||||||
- | |||||||||||||||||||||||||||||||
Others
|
Several
|
15,138 | 9,265 | 48,578 | 41,922 |
Several
|
Mortagage,
inventories and chattel mortagage on financial assets
|
Mortagage,
inventories and chattel mortagage on financial assets
|
|||||||||||||||||||||||
1,403,131 | 967,339 | 2,980,997 | 2,114,302 | ||||||||||||||||||||||||||||
Current
|
(266,998 | ) | (46,910 | ) | (301,650 | ) | (66,367 | ) | |||||||||||||||||||||||
Non
current
|
1,136,133 | 920,429 | 2,679,347 | 2,047,935 |
(1)
|
Financial
charges at October 31, 2008, except when otherwise
indicated;
|
(2)
|
All loans and
financing are guaranteed by promissory notes and surety of the Company,
subsidiaries and shareholder’s, in addition to the securities described
above.
|
(3)
|
Refers to
proceedings received by Cosan S.A. Bioenergia to be used on co-generation
energy project.
|
14.
|
Loans and Financing
(Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
13 to 24
months
|
18,575 | 71,232 | 36,460 | 76,626 | ||||||||||||
25 to 36
months
|
18,276 | 15,212 | 40,547 | 20,724 | ||||||||||||
37 to 48
months
|
9,463 | 7,639 | 31,218 | 13,152 | ||||||||||||
49 to 60
months
|
41,028 | 25,222 | 60,438 | 28,561 | ||||||||||||
61 to 72
months
|
8 | 8 | 18,713 | 2,543 | ||||||||||||
73 to 84
months
|
8 | 8 | 17,183 | 1,698 | ||||||||||||
85 to 96
months
|
8 | 8 | 16,091 | 8 | ||||||||||||
Thereafter
|
1,048,767 | 801,100 | 2,458,697 | 1,904,623 | ||||||||||||
1,136,133 | 920,429 | 2,679,347 | 2,047,935 |
14.
|
Loans and Financing
(Continued)
|
|
·
|
restriction on
transactions with shareholders and affiliate
companies;
|
|
·
|
restriction on
payment of dividends and other payment restrictions affecting
subsidiaries;
|
|
·
|
restriction on
guarantees granted on assets.
|
15.
|
Provision
for judicial demands
|
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Tax
|
212,414 | 205,784 | 818,951 | 795,961 | ||||||||||||
Civil and
labor
|
8,943 | 8,796 | 102,284 | 101,751 | ||||||||||||
221,357 | 214,580 | 921,235 | 897,712 | |||||||||||||
Judicial
deposits
|
(12,546 | ) | (12,214 | ) | (48,122 | ) | (47,915 | ) | ||||||||
208,811 | 202,366 | 873,113 | 849,797 |
15.
|
Provision for judicial
demands (Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
Description
|
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
||||||||||||
Credit premium
– IPI
|
142,685 | 140,153 | 260,971 | 256,004 | ||||||||||||
PIS and
Cofins
|
18,614 | 19,505 | 142,762 | 142,907 | ||||||||||||
IPI credits
(NT)
|
- | - | 89,621 | 87,015 | ||||||||||||
Contribution
to IAA
|
- | - | 81,096 | 80,340 | ||||||||||||
IPI – Federal
VAT
|
9,341 | 9,224 | 53,443 | 52,676 | ||||||||||||
ICMS
credits
|
14,705 | 13,644 | 46,482 | 45,472 | ||||||||||||
Income tax and
social contribution
|
5,379 | 5,327 | 42,558 | 41,956 | ||||||||||||
Other
|
21,690 | 17,931 | 102,018 | 89,591 | ||||||||||||
212,414 | 205,784 | 818,951 | 795,961 |
Parent
Company
|
Consolidated
|
|||||||||||||||
Description
|
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
||||||||||||
Withholding
income tax
|
158,373 | 156,502 | 158,373 | 156,502 | ||||||||||||
IPI Premium
Credit (RP 67/98)
|
- | - | 154,364 | 152,414 | ||||||||||||
ICMS – State
VAT
|
7,758 | 7,614 | 94,833 | 79,211 | ||||||||||||
IAA – Sugar
and Ethanol Institute
|
- | - | 72,421 | 47,383 | ||||||||||||
IPI – Federal
VAT
|
15,178 | 14,957 | 76,192 | 74,182 | ||||||||||||
INSS
|
11 | 11 | 14,624 | 14,369 | ||||||||||||
Civil and
labor
|
38,047 | 37,285 | 73,623 | 72,359 | ||||||||||||
PIS/Cofins on
CIDE
|
10,216 | - | 32,903 | - | ||||||||||||
Others
|
34,699 | 29,939 | 77,167 | 57,156 | ||||||||||||
264,282 | 246,308 | 754,500 | 653,576 |
15.
|
Provision for judicial
demands (Continued)
|
|
i)
|
IPI Premium
Credit - BEFIEX
|
|
ii)
|
Accounts
receivable from Federal
Government
|
16.
|
Shareholders’
equity
|
16.
|
Shareholders’ equity
(Continued)
|
17.
|
Management
fees
|
18.
|
Financial
income (expenses), net
|
Parent
Company
|
Consolidated
|
|||||||||||||||||||||||||||||||
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
|||||||||||||||||||||||||
Financial
expenses
|
||||||||||||||||||||||||||||||||
Interest (1)
|
(57,260 | ) | (107,857 | ) | (69,860 | ) | (124,838 | ) | (76,656 | ) | (145,593 | ) | (55,828 | ) | (145,501 | ) | ||||||||||||||||
Monetary
variation losses
|
(784 | ) | (5,755 | ) | (2,798 | ) | (3,283 | ) | (4,756 | ) | (34,704 | ) | (17,090 | ) | (20,064 | ) | ||||||||||||||||
Exchange
variation losses
|
(522,441 | ) | (410,299 | ) | 161,312 | 293,239 | (527,302 | ) | (415,469 | ) | 163,692 | 298,229 | ||||||||||||||||||||
Results from
derivatives (3)
|
(67,643 | ) | (103,102 | ) | (1,096 | ) | (8,337 | ) | (69,378 | ) | (104,837 | ) | (31,256 | ) | (38,497 | ) | ||||||||||||||||
CPMF (tax on
financial transactions
|
- | - | (5,079 | ) | (8,024 | ) | - | - | (6,561 | ) | (11,681 | ) | ||||||||||||||||||||
Premium on
payment of Senior Notes 2009
|
- | - | (30,160 | ) | (30,160 | ) | - | - | (30,160 | ) | (30,160 | ) | ||||||||||||||||||||
Others
|
(147 | ) | (229 | ) | (139 | ) | (280 | ) | (461 | ) | (952 | ) | (463 | ) | (873 | ) | ||||||||||||||||
(648,275 | ) | (627,242 | ) | 52,180 | 118,317 | (678,553 | ) | (701,555 | ) | 22,334 | 51,453 | |||||||||||||||||||||
Financial
income
|
||||||||||||||||||||||||||||||||
Interest (1)
|
33,714 | 54,636 | 7,809 | 12,292 | 11,128 | 22,274 | 4,630 | 18,234 | ||||||||||||||||||||||||
Exchange
variation gains
|
200 | 1,485 | 666 | 778 | 1,296 | 9,639 | 15,826 | 16,552 | ||||||||||||||||||||||||
Monetary
variation gains
(2)
|
3,951 | 116 | (17,644 | ) | (23,651 | ) | 25,942 | 15,642 | (17,663 | ) | (23,686 | ) | ||||||||||||||||||||
Results from
derivatives (3)
|
72,344 | 153,027 | 98,069 | 189,135 | 72,344 | 153,027 | 98,070 | 189,136 | ||||||||||||||||||||||||
Earnings from
marketable securities
|
14,094 | 32,628 | 19,640 | 34,875 | 27,018 | 46,963 | 20,817 | 44,084 | ||||||||||||||||||||||||
Others
|
23 | 85 | 90 | 164 | 57 | 179 | 300 | (617 | ) | |||||||||||||||||||||||
124,326 | 241,977 | 108,630 | 213,593 | 137,785 | 247,724 | 121,980 | 243,703 | |||||||||||||||||||||||||
(523,949 | ) | (385,265 | ) | 160,810 | 331,910 | (540,768 | ) | (453,831 | ) | 144,314 | 295,156 |
19.
|
Financial
instruments
|
a)
|
Risk
management
|
Current
assets
|
||||||||||||||||
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Margin
deposits
|
198 | 79,449 | 198 | 79,449 | ||||||||||||
Unrealized
losses (non allocated)
|
8,560 | 8,955 | 8,560 | 8,955 | ||||||||||||
8,758 | 88,404 | 8,758 | 88,404 |
Current
liabilities
|
||||||||||||||||
Parent
Company
|
Consolidated
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Credit lines
in using
|
82,580 | - | 82,580 | - | ||||||||||||
Option
premium
|
12,791 | 9,909 | 12,791 | 9,909 | ||||||||||||
Unrealized
gains (non allocated)
|
9,935 | 3,179 | 9,935 | 3,179 | ||||||||||||
105,306 | 13,088 | 105,306 | 13,088 |
19.
|
Financial instruments
(Continued)
|
a)
|
Risk management
(Continued)
|
Parent
Company and Consolidated
|
||||||||||||||||
Notional
amounts
|
Fair
Value
|
|||||||||||||||
10/31/08
|
07/31/08
|
10/31/08
|
07/31/08
|
|||||||||||||
Price
risk
|
||||||||||||||||
Commodity
derivatives
|
||||||||||||||||
Futures contracts:
|
||||||||||||||||
Sale agreements
|
720,867 | 921,131 | 84,934 | (97,995 | ) | |||||||||||
Options:
|
||||||||||||||||
Sold
|
136,154 | 118,086 | (7,431 | ) | (16,526 | ) | ||||||||||
77,503 | (114,521 | ) | ||||||||||||||
Foreign exchange rate
risk
|
||||||||||||||||
Exchange
rate derivatives
|
||||||||||||||||
Forward contracts:
|
||||||||||||||||
Sale agreements
|
1,341,772 | 940,398 | (196,467 | ) | 102,358 | |||||||||||
Purchase agreements
|
898,804 | - | 98,593 | - | ||||||||||||
Swap contracts
|
570,700 | 570,700 | (33,198 | ) | (45,368 | ) | ||||||||||
(131,072 | ) | 56,990 | ||||||||||||||
(53,569 | ) | (57,531 | ) | |||||||||||||
Maturities:
|
||||||||||||||||
Within 12 months
|
(35,810 | ) | (17,421 | ) | ||||||||||||
13 to 24 months
|
(17,759 | ) | (38,567 | ) | ||||||||||||
25 to 36 months
|
- | (1,543 | ) | |||||||||||||
(53,569 | ) | (57,531 | ) |
19.
|
Financial instruments
(Continued)
|
a)
|
Risk management
(Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||||||||||||||||||
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
08/01/08
to
10/31/08
|
05/01/08
to
10/31/08
|
08/01/07
to
10/31/07
|
05/01/07
to
10/31/07
|
|||||||||||||||||||||||||
Commodity
derivatives:
|
||||||||||||||||||||||||||||||||
Futures
contracts
|
(4,737 | ) | 10,770 | 44,038 | 92,475 | (4,737 | ) | 10,770 | 44,038 | 92,475 | ||||||||||||||||||||||
Options
|
(2,688 | ) | (3,887 | ) | 10,749 | 10,749 | (2,688 | ) | (3,887 | ) | 10,749 | 10,749 | ||||||||||||||||||||
Brokerage and
commissions
|
(704 | ) | (1,047 | ) | (297 | ) | (556 | ) | (704 | ) | (1,047 | ) | (297 | ) | (556 | ) | ||||||||||||||||
Exchange
variation
|
25,633 | 19,524 | 2,427 | (1,703 | ) | 25,633 | 19,524 | 2,427 | (1,703 | ) | ||||||||||||||||||||||
Exchange rate
derivatives:
|
||||||||||||||||||||||||||||||||
Forward
contracts
|
(16,418 | ) | 20,950 | 40,056 | 79,833 | (18,153 | ) | 19,215 | 40,056 | 79,833 | ||||||||||||||||||||||
Options
|
3,615 | 3,615 | - | - | 3,615 | 3,615 | - | - | ||||||||||||||||||||||||
Accounting
reclassification
|
- | - | - | - | - | - | (30,159 | ) | (30,159 | ) | ||||||||||||||||||||||
4,701 | 49,925 | 96,973 | 180,798 | 2,966 | 48,190 | 66,814 | 150,639 | |||||||||||||||||||||||||
Exchange and
interest rate derivatives:
|
||||||||||||||||||||||||||||||||
Swap contract
(1)
|
(3,687 | ) | (9,868 | ) | (5,665 | ) | (10,567 | ) | (3,687 | ) | (9,868 | ) | (5,665 | ) | (10,567 | ) | ||||||||||||||||
Derivatives
net effect
|
1,014 | 40,057 | 91,308 | 170,231 | (721 | ) | 38,322 | 61,149 | 140,072 | |||||||||||||||||||||||
Derivatives
effect on financial income (expenses), net:
|
||||||||||||||||||||||||||||||||
Financial
income
|
72,344 | 153,027 | 98,069 | 189,135 | 72,344 | 153,027 | 98,070 | 189,136 | ||||||||||||||||||||||||
Financial
expenses
|
(67,643 | ) | (103,102 | ) | (1,096 | ) | (8,337 | ) | (69,378 | ) | (104,837 | ) | (31,256 | ) | (38,497 | ) | ||||||||||||||||
4,701 | 49,925 | 96,973 | 180,798 | 2,966 | 48,190 | 66,814 | 150,639 |
|
(1)
|
Exchange rate
swap result is recorded in financial expenses, in Financial income
(expenses), net account.
|
b)
|
Price
risk
|
19.
|
Financial instruments
(Continued)
|
b)
|
Price risk
(Continued)
|
c)
|
Foreign exchange
risk
|
19.
|
Financial instruments
(Continued)
|
c)
|
Foreign exchange
risk (Continued)
|
Consolidated
|
||||||||||||||||
10/31/08
|
07/31/08
|
|||||||||||||||
$R
|
US$
(in
thousands)
|
$R
|
US$
(in
thousands)
|
|||||||||||||
Amounts
pending foreign exchange closing
|
106,118 | 50,167 | 38,164 | 24,361 | ||||||||||||
Overnight
|
17,274 | 8,166 | 12,743 | 8,134 | ||||||||||||
Derivative
financial instruments – assets (i)
|
198 | 94 | 79,449 | 50,714 | ||||||||||||
Notes
receivable from foreigns
|
133,196 | 62,968 | 33,627 | 21,465 | ||||||||||||
Related
parties
|
26,543 | 12,548 | 1,115 | 712 | ||||||||||||
Loans in
foreign currency
|
(243,600 | ) | (115,161 | ) | (85,008 | ) | (54,263 | ) | ||||||||
Advances from
customers
|
(19,305 | ) | (9,126 | ) | (13,728 | ) | (8,763 | ) | ||||||||
Senior Notes
due in 2009
|
(75,745 | ) | (35,808 | ) | (57,539 | ) | (36,729 | ) | ||||||||
Senior Notes
due in 2017
|
(860,763 | ) | (406,922 | ) | (626,640 | ) | (400,000 | ) | ||||||||
Perpetual
notes
|
(970,583 | ) | (458,839 | ) | (718,818 | ) | (458,840 | ) | ||||||||
Derivative
financial instruments – liabilities (i)
|
(95,371 | ) | (45,086 | ) | (9,909 | ) | (6,325 | ) | ||||||||
Net foreign
exchange exposure
|
(1,982,038 | ) | (936,999 | ) | (1,346,544 | ) | (859,534 | ) |
|
(i)
|
Refer to
amount classified as derivative financial instruments, except for
unrealized gains (losses)
non-allocated.
|
19.
|
Financial instruments
(Continued)
|
d)
|
Interest rate
risk
|
e)
|
Credit
risk
|
f)
|
Debt acceleration
risk
|
g)
|
Market
values
|
19.
|
Financial instruments
(Continued)
|
g)
|
Market values
(Continued)
|
20.
|
Insurance
(Not reviewed by the independent
auditors)
|
21.
|
Stock
option plan
|
21.
|
Stock option plan
(Continued)
|
21.
|
Stock option plan
(Continued)
|
Options
granted on September 22, 2005
|
Options
granted on September 11, 2007
|
|||||||
Grant price –
R$
|
6.11 | 6.11 | ||||||
Expected
exercise (in years)
|
7.5 | 7.5 | ||||||
Interest
rate
|
14.52 | % | 9.34 | % | ||||
Volatility
|
34.00 | % | 46.45 | % | ||||
Dividend
yield
|
1.25 | % | 1.47 | % | ||||
Weighted
average fair value at grant date – R$
|
12.35 | 18.19 |
22.
|
Subsequent
event
|
23.
|
Additional
information
|
Parent
Company
|
Consolidated
|
|||||||||||||||
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net income
(loss) for the period
|
(380,671 | ) | 15,223 | (380,671 | ) | 15,223 | ||||||||||
Adjustments to
reconcile net income (loss) for the period to cash used in operating
activities
|
||||||||||||||||
Depreciation
and amortization
|
69,123 | 59,220 | 176,818 | 139,027 | ||||||||||||
Losses
(earnings) on equity investments
|
19,664 | 51,535 | (1,234 | ) | (23 | ) | ||||||||||
Net book value
of permanent assets disposed of
|
180 | 1,256 | 2,848 | 4,245 | ||||||||||||
Goodwill
amortization
|
16,488 | 36,119 | 40,405 | 56,626 | ||||||||||||
Deferred
income and social contribution taxes
|
(170,296 | ) | 11,016 | (187,775 | ) | (14,118 | ) | |||||||||
Set-up
(reversal) of provision for legal claims, net
|
3,372 | 1,045 | 15,230 | (2,257 | ) | |||||||||||
Set-up
(reversal) of provision for devaluation of permanent equity
interest
|
- | (10,493 | ) | 21 | 23 | |||||||||||
Minority
interest
|
- | - | (6,510 | ) | (672 | ) | ||||||||||
Interest,
monetary and exchange variation, net
|
526,827 | (42,012 | ) | 571,968 | (63,234 | ) | ||||||||||
Others
|
(3,342 | ) | - | (2,022 | ) | - | ||||||||||
Decrease
(increase) in assets
|
||||||||||||||||
Trade accounts
receivables
|
(55,589 | ) | 11,576 | (82,346 | ) | 30,846 | ||||||||||
Inventories
|
(255,554 | ) | (216,612 | ) | (534,307 | ) | (404,632 | ) | ||||||||
Derivative
financial instruments
|
79,646 | 90,475 | 79,646 | 90,475 | ||||||||||||
Advances to
suppliers
|
(14,941 | ) | (7,558 | ) | (40,090 | ) | 4,155 | |||||||||
Other
assets
|
(34,487 | ) | 22,327 | (82,087 | ) | 7,106 | ||||||||||
Decrease
(increase) in liabilities
|
||||||||||||||||
Trade accounts
payables
|
59,636 | 33,500 | 160,440 | 58,088 | ||||||||||||
Salaries
payable
|
10,382 | 10,497 | 23,998 | 21,723 | ||||||||||||
Taxes and
social contributions payables
|
(9,140 | ) | (9,534 | ) | (14,864 | ) | (25,828 | ) | ||||||||
Derivative
financial instruments
|
92,218 | (16,777 | ) | 92,218 | (16,777 | ) | ||||||||||
Other
liabilities
|
11,810 | (76,020 | ) | 9,199 | (71,803 | ) | ||||||||||
Net
cash used in operating activities
|
(34,674 | ) | (35,217 | ) | (159,115 | ) | (171,807 | ) | ||||||||
Cash
flows from investments activities
|
||||||||||||||||
Application in
investments
|
(649,396 | ) | - | (3,754 | ) | - | ||||||||||
Advance for
future capital increase
|
(172,428 | ) | - | - | - | |||||||||||
Application in
property, plant and equipment
|
(37,421 | ) | (31,602 | ) | (304,713 | ) | (136,780 | ) | ||||||||
Application in
deferred charges
|
(6,573 | ) | - | (15,438 | ) | - | ||||||||||
Marketable
securities
|
254,994 | 229,399 | (884,747 | ) | 230,937 | |||||||||||
Others
|
- | - | (660 | ) | (721 | ) | ||||||||||
Net
cash provided by (used in) investments activities
|
(610,824 | ) | 197,797 | (1,209,312 | ) | 93,436 |
23.
|
Additional information
(Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
|||||||||||||
Cash
flows from financial activities
|
||||||||||||||||
Capital
increase
|
880,000 | - | 880,000 | - | ||||||||||||
Purchase of
treasury stocks
|
(4,186 | ) | - | (4,186 | ) | - | ||||||||||
Capital
increase in subsidiaries by minority shareholders
|
- | - | 247,675 | - | ||||||||||||
Financial
funding
|
123,275 | - | 315,808 | 4,451 | ||||||||||||
Amortization
of principal and interest on loans and financing, advances from
customers.
|
(21,435 | ) | (334,704 | ) | (26,723 | ) | (369,953 | ) | ||||||||
Related
parties
|
(272,023 | ) | 108,363 | - | - | |||||||||||
Net
cash provide by (used in) financing activities
|
705,631 | (226,341 | ) | 1,412,574 | (365,502 | ) | ||||||||||
Net
cash increase (decrease) in cash and cash equivalents
|
60,133 | (63,761 | ) | 44,147 | (443,873 | ) | ||||||||||
Cash
and cash equivalents at the beginning of the period
|
34,303 | 145,442 | 90,449 | 578,973 | ||||||||||||
Cash
and cash equivalents at the end of the period
|
94,436 | 81,681 | 134,596 | 135,100 | ||||||||||||
Supplementary
information about cash flows
|
||||||||||||||||
Interest paid
on loans and financing, advances from customers
|
21,249 | 35,381 | 24,530 | 65,556 | ||||||||||||
Income and
social contribution taxes
|
- | 17,969 | - | 18,275 |
23.
|
Additional information
(Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
|||||||||||||
Cash
flows from operating activities
|
||||||||||||||||
Net income
(loss) for the period
|
(438,814 | ) | 28,890 | (438,814 | ) | 28,890 | ||||||||||
Adjustments to
reconcile net income (loss) for the period to cash provide by used in
operating activities
|
||||||||||||||||
Depreciation
and amortization
|
135,586 | 110,301 | 334,044 | 264,406 | ||||||||||||
Losses
(earnings) on equity investments
|
109,546 | 100,640 | (1,394 | ) | (141 | ) | ||||||||||
Net book value
of permanent assets disposed of
|
1,509 | 4,422 | 5,648 | 6,798 | ||||||||||||
Goodwill
amortization
|
32,977 | 72,238 | 80,790 | 112,594 | ||||||||||||
Deferred
income and social contribution taxes
|
(162,244 | ) | 22,437 | (223,856 | ) | (25,061 | ) | |||||||||
Set-up
(reversal) of provision for legal claims, net
|
5,484 | 1,840 | 25,859 | (587 | ) | |||||||||||
Set-up
(reversal) of provision for devaluation of permanent equity
interest
|
- | (7,725 | ) | 40 | 47 | |||||||||||
Minority
interest
|
- | - | (7,260 | ) | (1,302 | ) | ||||||||||
Interest,
monetary and exchange variation, net
|
451,822 | (108,505 | ) | 545,746 | (166,270 | ) | ||||||||||
Others
|
(3,342 | ) | - | (302 | ) | - | ||||||||||
Decrease
(increase) in assets
|
||||||||||||||||
Trade accounts
receivables
|
(59,076 | ) | 14,450 | 8,133 | 1,773 | |||||||||||
Inventories
|
(386,026 | ) | (342,071 | ) | (869,384 | ) | (684,260 | ) | ||||||||
Derivative
financial instruments
|
77,775 | 34,024 | 77,775 | 34,024 | ||||||||||||
Advances to
suppliers
|
(34,988 | ) | (34,614 | ) | (77,126 | ) | (91,976 | ) | ||||||||
Other
assets
|
(18,198 | ) | 45,926 | (49,630 | ) | 26,546 | ||||||||||
Decrease
(increase) in liabilities
|
||||||||||||||||
Trade accounts
payables
|
136,969 | 105,550 | 301,017 | 257,951 | ||||||||||||
Salaries
payable
|
27,683 | 22,693 | 62,262 | 48,829 | ||||||||||||
Taxes and
social contributions payables
|
(14,432 | ) | (8,082 | ) | (27,927 | ) | (27,227 | ) | ||||||||
Derivative
financial instruments
|
63,454 | (4,352 | ) | 63,454 | (4,352 | ) | ||||||||||
Other
liabilities
|
5,015 | (90,663 | ) | (13,978 | ) | (92,654 | ) | |||||||||
Net
cash used in operating activities
|
(69,300 | ) | (32,601 | ) | (204,903 | ) | (311,972 | ) | ||||||||
Cash
flows from investments activities
|
||||||||||||||||
Application in
investments
|
(653,149 | ) | (4,655 | ) | (7,507 | ) | (2,105 | ) | ||||||||
Advance for
future capital increase
|
(214,080 | ) | - | - | - | |||||||||||
Application in
property, plant and equipment
|
(78,342 | ) | (77,512 | ) | (558,058 | ) | (307,129 | ) | ||||||||
Application in
deferred charges
|
(15,920 | ) | - | (26,916 | ) | - | ||||||||||
Marketable
securities
|
683,260 | 513,687 | (483,980 | ) | 569,616 | |||||||||||
Others
|
- | - | 2,344 | (2,682 | ) | |||||||||||
Net
cash provided by (used in) investments activities
|
(278,231 | ) | 431,520 | (1,074,117 | ) | 257,700 |
23.
|
Additional information
(Continued)
|
|
23.1 STATEMENTS OF CASH
FLOWS (Continued)
|
Parent
Company
|
Consolidated
|
|||||||||||||||
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
08/01/08
to 10/31/08
|
08/01/07
to 10/31/07
|
|||||||||||||
Cash
flows from financial activities
|
||||||||||||||||
Capital
increase
|
880,000 | - | 880,000 | - | ||||||||||||
Purchase of
treasury stocks
|
(4,186 | ) | - | (4,186 | ) | - | ||||||||||
Capital
increase in subsidiaries by minority shareholders
|
- | - | 247,675 | - | ||||||||||||
Financial
funding
|
123,826 | - | 318,776 | 6,387 | ||||||||||||
Amortization
of principal and interest on loans and financing, advances from
customers.
|
(63,649 | ) | (426,432 | ) | (94,492 | ) | (467,617 | ) | ||||||||
Related
parties
|
(511,141 | ) | 77,623 | - | - | |||||||||||
Others
|
- | - | - | 6,787 | ||||||||||||
Net
cash provide by (used in) financing activities
|
424,850 | (348,809 | ) | 1,347,773 | (454,443 | ) | ||||||||||
Net
cash increase (decrease) in cash and cash equivalents
|
77,319 | 50,110 | 68,753 | (508,715 | ) | |||||||||||
Cash
and cash equivalents at the beginning of the period
|
17,117 | 31,571 | 65,843 | 643,815 | ||||||||||||
Cash
and cash equivalents at the end of the period
|
94,436 | 81,681 | 134,596 | 135,100 | ||||||||||||
Supplementary
information about cash flows
|
||||||||||||||||
Interest paid
on loans and financing, advances from customers
|
52,984 | 75,174 | 78,905 | 106,021 | ||||||||||||
Income and
social contribution taxes
|
- | 19,145 | - | 23,608 |
[Missing Graphic Reference]
|
||
Quarterly Financial
Letter
|
||
2nd Quarter of Fiscal Year 2009 –
August, September and
October
|
Devaluation
of the real pushes up operating results
|
|||
▪ |
This section
provides a summary of the quarterly performance of Cosan Ltd. (NYSE: CZZ),
the parent company of the Cosan Group. The financial information in this
section is therefore expressed in U.S. dollars and in accordance with U.S.
GAAP. For comparative purposes, the figures for the period prior to the
constitution of Cosan Ltd were prepared on a pro-forma basis based on
those of Cosan S.A. as if Cosan Ltd. had existed before the date of its
constitution. More information on the financial statements of Cosan Ltd.
is provided at the end of the section.
|
||
▪ |
The 2Q’09 was
strongly impacted by the hefty devaluation of the Real and its effects on
Cosan’s exports. Thus, despite the sugar and ethanol stockpiling strategy
and the consequent year-on-year reduction in sales volume (5.9% for
ethanol and 9.2% for sugar), Cosan recorded net operating revenue of
US$383.8 million, 17.0% up on the 2Q’08.
|
||
▪ |
While ethanol
prices remained flat over the 1Q’09 at US$1.66 per gallon, 41.6% up
year-on-year, sugar prices increased by 24.7% over the 2Q’08 to an average
13.52 ¢US$/lb.
|
||
ri@cosan.com.br
www.cosan.com.br
|
▪ |
As revenue
growth was based entirely on higher prices and the behavior of the
exchange rate, the impact of the improved operating result was more than
proportional. Thus, while 2Q’09 gross profit moved up by 95.9%
year-on-year to US$63.6 million, period EBITDA jumped by 183.2% to
US$118.5 million, with a margin of
30.9%.
|
Definitions:
FY’09
- fiscal year begun May 1,
2008
and ending March
31,
2009
FY’08 - fiscal
year begun May 1,
2008 and
ending April 30,
2008
2Q’09 -
quarter ended October
31,
2008
2Q’08 -
quarter ended October
31,
2007
YTD’09-period
begun on the
same
date as the FY’09
and
ended at the close
of the
2Q’09
YTD’08-period
begun on the
same
date as the FY’08
and
ended at the close
of the
2Q’08
|
Summary
of Financial and Operating Information
|
|||||||
2Q'08
|
2Q'09
|
(In millions of U.S. dollars) | YTD'08 | YTD'09 | ||||
79.1
|
74.4
|
Ethanol Sold (millions of gallons) |
142.1
|
163.8
|
||||
815.1
|
739.9
|
Sugar Sold (thousand tonnes) |
1,647.8
|
1,531.5
|
||||
328.0
|
383.8
|
Net sales |
629.3
|
777.8
|
||||
32.5
|
63.6
|
● |
Gross
profit
|
45.6
|
58.7
|
|||
9.9%
|
16.6%
|
Gross
Margin
|
7.2%
|
7.5%
|
||||
(42.0)
|
(20.3)
|
● |
Operating income
(loss)
|
(91.0)
|
(114.6)
|
|||
-12.8%
|
-5.3%
|
Operating
margin
|
-14.5%
|
-14.7%
|
||||
41.9
|
118.5
|
● |
EBITDA
|
67.6
|
133.1
|
|||
12.8%
|
30.9%
|
EBITDA
Margin
|
10.7%
|
17.1%
|
||||
23.8
|
(163.5)
|
● |
Income (loss) before minority
interest
|
26.0
|
(211.4)
|
|||
17.7
|
(114.1)
|
● |
Net income
(loss)
|
18.9
|
(143.4)
|
|||
5.4%
|
-29.7%
|
Profit (loss)
Margin
|
3.0%
|
-18.4%
|
||||
90.5
|
146.7
|
Capex |
184.9
|
316.0
|
||||
(215.4)
|
157.4
|
● |
Net Debt
|
(215.4)
|
157.4
|
|||
2,242.3
|
2,463.0
|
● |
Shareholders' & Minorities
Equity
|
2,242.3
|
2,463.0
|
§
|
Although the
devaluation had a substantial positive impact on the operating result, it
also led to non-cash adjustments from the restatement of
dollar-denominated debt, most of which is perpetual or with a 10-year
maturity. Thus, the higher EBITDA was more than offset by exchange-related
financial expenses of US$274.5 million, generating a net loss of US$114.1
million, versus net income of US$17.7 million in the
2Q’08.
|
§
|
Capex totaled
US$146.7 million, 62.2% up year-on-year, fueled by progress in Jataí,
Cosan’s first greenfield project, which is expected to begin operations in
the next harvest. Final work on the Bonfim and Gasa co-generation projects
also moved ahead, the latter having been completed in the quarter with the
initiation of energy billing.
|
§
|
In terms of
capital structure, Cosan closed the 2Q’09 with net debt of US$157.4
million, a negligible amount when set against shareholders’ equity and
minority interests of US$2.5 billion, and an exceptionally comfortable
cash position of US$969.5 million.
|
§
|
After the
close of the quarter, the Company successfully completed the transition
period for the acquisition of Esso’s Brazilian assets, which are now under
Cosan’s management. Consequently, the Company’s 3Q’09 figures will
consolidate the results of fuel and lubricant distribution and sales under
the Esso brand throughout Brazil.
|
The major
asset of Cosan Ltd. on its constitution was its equity interest in Cosan
S.A. Its operating results are therefore substantially based on those of
its subsidiary, Cosan S.A.
Cosan Ltd.
uses the US$ as its reporting currency and the R$ as its functional
currency..
The financial
statements of Cosan Ltd. are drawn up primarily in US GAAP, while those of
its subsidiary Cosan S.A. are drawn up primarily in BR GAAP. The main
differences between the accounting practices of US GAAP and BR GAAP that
affect the results of Cosan Ltd. are::
· evaluation of
acquired companies at their fair market value instead of their book value,
increasing the value of fixed assets and, consequently, depreciation
expenses;
· the
non-existence of asset revaluation and, consequently, depreciation of the
revalued portion;
· the
non-existence of amortization of goodwill;
· capitalization
of interest on financings for fixed assets under construction;
· mark-to-market
of hedge instruments recorded directly in the result;
· the booking of
remuneration from the executives’ stock option plan under general and
administrative expenses;
· the
non-existence of deferred expenses; and
· the booking of
goods acquired through leasing under
assets
|
Paulo
Diniz,
CFO
& IRO
|
EBITDA
grows 2.3 times in the wake of the currency devaluation
|
||
Luiz
Felipe Jansen de Mello,
Investor
Relations
|
▪ |
Following the
guidance revision disclosed on October 9 last, the revenue of Cosan S.A.
(BOVESPA: CSAN3) was fueled by the devaluation of the Real, substantially
improving the operating results.
|
|
Guilherme
A. Prado,
Treasury
|
▪ |
Despite the
continuation of the stockpiling strategy and, consequently, the
year-on-year reduction in sugar and ethanol sales volume of 10.2% and 7.8%
respectively, net operating revenue moved up by 14.0%, including the first
revenue from the Gasa electricity co-generation plant. However, the
biggest contribution came from the higher average sales prices, fueled by
the conversion of dollar prices to Reais. In the 2Q’09, ethanol averaged
R$826 per thousand liters, 30.3% up on the 2Q’08 average. Similarly,
average sugar prices moved up by 23.4% to R$554/t.
|
|
Mauricio
Sartorelli,
Controller
|
▪ |
The reduction
in the cost of goods sold was less than the drop in sales volume, due
mainly to the increase in depreciation. As a result EBITDA jumped by
131.0% year-on-year to R$175.3 million, while the EBITDA margin more than
doubled to 24.5%. EBITDAH (adjusted for price locking and currency hedges)
moved up by a less spectacular but nonetheless healthy 24.9%, reaching
R$178.3 million, accompanied by an EBITDAH margin of 24.8%.
|
|
|||||||
2Q'08
|
2Q'09
|
Financial
Highlights (R$MM)
|
YTD'08 | YTD'09 | |||
627.5
|
715.1
|
Net Operating
Revenue
|
1,219.2
|
1,354.7
|
|||
76.4
|
167.9
|
Gross
Profit
|
120.1
|
181.5
|
|||
12.2%
|
23.5%
|
Gross
margin
|
9.8%
|
13.4
|
|||
75.9
|
175.3
|
EBITDA
|
125.4
|
200.0
|
|||
12.1%
|
24.5%
|
EBITDA
Margin
|
10.3%
|
14.8%
|
|||
142.7
|
178.3
|
EBITDAH
(Adjusted by Hedge)
|
276.1
|
248.2)
|
|||
20.6%
|
24.8%
|
EBITDAH
Margin
|
20.2%
|
17.7%
|
|||
15.2
|
(380.7)
|
Net Profit
(Loss)
|
28.9
|
(438.8)
|
|||
ri@cosan.com.br
www.cosan.com.br
|
2.4%
|
-53.2%
|
Net Margin
|
3.4%
|
-32.4%
|
Definitions:
FY’09
- fiscal year begun May 1,
2008
and ending March
31,
2009
FY’08 - fiscal
year begun May 1,
2008 and
ending April 30,
2008
2Q’09 -
quarter ended October
31,
2008
2Q’08 -
quarter ended October
31,
2007
YTD’09-period
begun on the
same
date as the FY’09
and
ended at the close
of the
2Q’09
YTD’08-period
begun on the
same
date as the FY’08
and
ended at the close
of the
2Q’08
|
▪ |
However, in
accounting terms, this exceptional operating result was more than offset
by non-cash financial expenses from the impact of the exchange variation
on dollar-denominated debt which totaled R$501.4 million, generating a
negative bottom-line of R$380.7 million. Of the total negative exchange
variation, R$219.5 million came from the US$400 million bond issue
maturing in 2017, and R$246.9 million from the US$450 million perpetual
bond issue. If we compare future export flows (around US$0.8 billion p.a.)
with the gross dollar debt, considering the latter’s long-term profile, we
can see that export flows are much higher, generating operating gains that
are substantially greater than this current non-cash
result.
|
|
A.
Market Overview
|
|||
2008/09
harvest nears end with record crushing volume and maintenance of ethanol
bias
|
▪ |
According to
the latest figures from UNICA, the sugarcane growers’ association, crushed
cane volume in the Central-South totaled 469 million tonnes by November
30, 12.31% up on the same period in 2007. Period sugar
production amounted to 25.36 million tonnes, 0.98% down year-on-year,
while ethanol output moved up by 18% to more than 23.08 billion liters. Of
this total, hydrous accounted for 15.09 billion liters, 22.5% up
year-on-year, and anhydrous reached 8 billion liters, up by 10.63%. Priority was still
being given to ethanol, which accounted for 61.92% of crushed cane volume,
while sugar accounted for 38.08%. The harvest period is
nearing its end and 43 plants had already concluded crushing through
November 30, versus 99 in the same period in the previous
season.
|
|
▪ |
The 08/09
harvest recently got under way in India with expectations of a substantial
reduction in sugar output. The more conservative
estimates point to production of around 21 million tonnes while the more
aggressive ones are forecasting 19 million, versus 26 million in the
previous season.
Consequently, India‘s exports are likely to be well below the more
than 4 million tonnes shipped in the 07/08 harvest, creating more space
for Brazil’s sugar exports to the Middle East, where it faced strong
competition last year.
|
||
▪ |
International
raw sugar prices averaged 12.54 ¢US$/lb in the 2Q’09, 29% up year-on-year
and 7.3% up on the 11.68 ¢US$/lb recorded in the 1Q’09. However, it is
worth noting that the depreciation of the Real more than offset the
international price slide caused by the worsening of the international
financial crisis. Raw sugar prices in Reais closed the 2Q’09 at
approximately 25.43 ¢R$/lb, 16.51% higher than in the 1Q’09, versus the
7.3% upturn in dollars. This tendency was further intensified recently as
a result of the continuous depreciation of the Real, as shown in the
adjacent chart.
|
||
Big
reduction in the number of open contracts due
to flight from the commodities market
|
▪ |
In the 2Q’09,
major hedge funds, plus smaller funds and speculators, maintained the
previous quarter’s trend, reducing their net long positions by 33%, from
130,000 lots at the beginning of August to around 87,000 at the close of
October, equivalent to 14% of all open contracts. It is also worth noting
that the number of open contracts fell substantially, from around 780,000
lots to 640,000, a drop of around 18%, higher than the 15% reduction
recorded in the previous quarter. This decline was chiefly due to the
increase in the number of redemptions in recent months by holders of
shares in commodity funds, especially index funds, which had to liquidate
their positions.
|
|
Refined sugar
prices on the international market averaged US$369.18/t, 32.4% up on the
U$278.73/t recorded in the 2Q’08 and 3.6% higher than the quarter before.
The white premium closed the 2Q’09 at U$68/t, 20% down on the
1Q’09.
|
|||
Strong
reduction in international freight charges thanks to the slide in oil
prices
|
International
freight costs dropped sharply as a result of the decline in oil prices and
the global credit crisis. The Baltic Exchange Dry Index fell to less than
1,000 points, versus 3,000 in October and a peak of 11,500 in mid-March,
fueling Brazilian sugar exports in the past two months, particularly to
Southeast Asia which had been primarily supplied by
Thailand.
|
▪ |
Domestic
crystal sugar prices (ESALQ) averaged R$30.35/50kg bag (or R$606.98/t) in
the 2Q’09, versus R$24.71/50kg bag (or R$494.16/t) in the 2Q’08. In
relation to the previous quarter, crystal sugar prices moved up by
13.5%.
|
||
▪ |
Domestic
hydrous ethanol prices (ESALQ) averaged R$0.732/liter in the 2Q’09, 26% up
on the R$0.889/liter recorded in the same period the year before, while
anhydrous prices climbed 34.2% year-on-year to R$0.890/liter. In relation
to the previous three months, hydrous moved up by 4.7% and anhydrous by
8.2%.
|
▪ |
The gap
between hydrous and anhydrous prices widened in the 2Q’09 and reached more
than R$190/m3 in
the first week of November. This was due to the huge volume of anhydrous
exports in the second half of this year and the heavy harvest rainfall,
which favored hydrous output to the detriment of
anhydrous.
|
||
Ethanol
exports through October totaled 3.4 billion liters, a hefty 74% up
year-on-year, led by the US, with 1.2 billion liters, followed by the EU,
with 867 million liters, and the CBI countries, with 630 million liters.
Exports should reach a new record this harvest, exceeding 4 billion
liters.
|
|||
Ethanol
remains competitive vis-à-vis gasoline in most Brazilian
states
|
▪ |
According to
Brazil’s National Petroleum Agency (ANP), domestic retail gasoline prices
averaged R$2.4780/liter at the end of the 2Q’09, while hydrous ethanol
averaged R$1.540/liter, giving a parity of 62.1%. Ethanol prices only
exceeded 75% of gasoline prices in four Brazilian states (Amapá, Roraima,
Pará and Sergipe). In São Paulo state, the country’s largest consumption
center, the ratio stood at only 54.5%.
|
|
▪ |
Ethanol
consumption remains buoyant throughout the country. According to the ANP,
hydrous consumption moved up 45% year-on-year between January and October,
while 2Q’09 sales totaled 5.1 billion liters – 3.5 billion liters of
hydrous and 1.6 billion liters of anhydrous – versus 4.9 billion liters of
gasoline in the same period last year.
|
||
▪ |
Flex-fuel
vehicle sales through October exceeded the total for the entire year of
2007, reflecting the excellent performance of Brazil’s auto manufacturing
industry in 2008. However, sales figures for the first half of November
are already indicating a strong decline due to the economic uncertainties
and the credit squeeze. As a result, the government has allocated R$4
billion to the industry to facilitate financing and prop up
sales.
|
▪ |
According to
Anfavea, the auto manufacturers’ association, new car sales totaled
710,000 units in the 2Q’09, while those of flex-fuel cars exceeded 616,00
units, equivalent to 87% of the total. The current flex-fuel fleet exceeds
7 million vehicles, 27% of the total fleet.
|
||
Depreciation
of the Real exceeds 35% in the quarter
|
▪ |
The global
financial crisis put an end to the downward price trajectory of the U.S.
dollar against the world’s other leading currencies. The dollar closed the
2Q’09 at R$2.1153 / US$, 35% up on the end of the previous quarter, and
moved up even further thereafter, occasionally exceeding R$2.50 /
US$.
|
|
B.
Operating Performance
|
|||
▪ |
Cosan closed
the 2Q’09 with an EBITDAH margin of 24.8%, although the bottom line was
still negative due to financial expenses with exchange variation caused by
the strong period depreciation of the Real against the U.S. dollar.
However, this devaluation also led to a substantial improvement in the
quarterly operating result due to better sugar and ethanol
prices.
|
||
2Q'08
|
2Q'09
|
Income
Statement (R$MM)
|
YTD'08 | YTD'09 |
627.5
|
715.1
|
Net Operating
Revenue
|
1,219.2
|
1,354.7
|
|
(551.1)
|
(547.1)
|
Cost of Goods
Sold
|
(1,099.1)
|
(1,173.2)
|
|
(139.0)
|
(176.7)
|
with Depreciation &
Amortization
|
(264.4)
|
(333.9)
|
|
76.4
|
167.9
|
Gross
Profit
|
120.1
|
181.5
|
|
12.2%
|
23.5%
|
Gross
Margin
|
9.8%
|
13.4%
|
|
(91.9)
|
(88.6)
|
Selling
Expenses
|
(153.0)
|
(174.3)
|
|
(45.5)
|
(66.5)
|
General & Adm.
Expenses
|
(102.5)
|
(126.2)
|
|
(2.0)
|
(14.2)
|
Other Operating
Expenses
|
(3.5)
|
(14.8)
|
|
75.9
|
175.3
|
EBITDA
|
125.4
|
200.0
|
|
12.1%
|
24.5
|
EBITDA Margin | 10.3% | 14.8% | |
142.7
|
178.3
|
EBITDAH
(Adjusted by Hedge)
|
276.1 | 248.2 | |
20.6%
|
24.8%
|
EBITDAH
Margin
|
20.2% | 17.7% | |
144.3
|
(540.8)
|
Net
Financial Expenses
|
295.2 | (453.8) | |
0.0
|
1.2
|
Equity
Income
|
0.1 | 1.4 | |
(56.6)
|
(40.4)
|
Goodwill
Amortization
|
(112.6) | (80.8) | |
2.3
|
(15.8)
|
Other
Non-Operat. Result/Extraordinary
|
5.2 | 11.3 | |
26.9
|
(597.1)
|
Profit
Before Income Tax
|
49.0 | (678.4) | |
(12.3)
|
210.0
|
Income
Tax
|
(21.4) | 232.4 | |
0.7
|
6.5
|
Minority
Interest
|
1.3 | 7.3 | |
15.2
|
(380.7)
|
Net
Profit (Loss)
|
28.9 | (438.8) | |
2.4%
|
-53.2%
|
Net
Margin
|
2.4% | -32.4% |
Quarterly
exports boosted by exchange rate
|
▪ |
Following
several quarters of appreciation, the Real fell sharply in the 2Q’09. As a
result, the revenue share of exports in Reais reversed its previous
downward trajectory, increasing from 56.4%, in the 2Q’08, to 70.2%. In
terms of product mix, however, there was very little change, with 57.3% of
revenue coming from sugar sales, 32.6% from ethanol sales and 10.1% from
the sale of other products and
services
|
2Q'08
|
2Q'09
|
Sales
Composition (R$MM)
|
YTD'08 | YTD'09 |
627.5
|
715.1
|
Net Operating
Revenue
|
1,219.2
|
1,354.7
|
|
369.7
|
409.7)
|
Sugar
Revenue
|
741.5
|
762.1
|
|
65.7
|
57.2
|
Local
|
123.0
|
115.1
|
|
340.0
|
352.5
|
Export
|
618.5
|
647.0
|
|
193.8
|
232.8
|
Ethanol
Revenue
|
362.7
|
474.6
|
|
148.3
|
89.3
|
Local
|
268.4
|
249.3
|
|
(45.5)
|
143.5
|
Export
|
94.3
|
225.2
|
|
64.0
|
72.6
|
Other
Revenue
|
115.0
|
118.0
|
|
59.8
|
66.3
|
Local
|
106.5
|
108.2
|
|
4.2%
|
6.4
|
Export | 8.5% | 9.9 |
▪ |
Sugar sales in
the 2Q’09 grew by 10.8%, with domestic sales recording a decline and
exports moving up. This result was achieved despite a 10.2% year-on-year
reduction in sales volume to 739.900t, thanks to the substantial increase
in prices. The combined effect of the appreciation of the Real and the
market price hikes pushed up sugar prices to an average R$554/t
(12.54 ¢US$/lb), 23.4% up on the R$449/t (9.72 ¢US$/lb) recorded in the
2Q’08. Sugar
inventories closed the 2Q’09 at 1,173 thousand tones, 6.6% up
year-on-year.
|
2Q'08
|
2Q'09
|
Sugar
Business
|
YTD'08 | YTD'09 |
Volume Sold (thousand
tons)
|
|||||
823.9
|
739.9
|
Sugar
Revenue
|
1,666.0
|
1,531.5
|
|
130.2
|
92.2
|
Local
|
234.5
|
196.4
|
|
693.7
|
647.7
|
Export
|
1,431.6
|
1335.1
|
|
Average Unit
Price (R$/ton)
|
|||||
449
|
554
|
Total Local
& Export
|
445
|
498
|
|
505
|
620
|
Local
|
525
|
586
|
|
438
|
544
|
Export
|
432
|
485
|
Ethanol
exports exceed domestic sales for the first time
|
▪ |
Ethanol
revenue climbed by 20.1%, leveraged by record exports. For the first time,
foreign sales exceeded domestic sales, accounting for 61.6% of the total,
a massive year-on-year upturn of 215.4%. As with sugar, this outstanding
result was generated thanks to higher prices, given that sales volume fell
by 7.8% to 281.7 million liters, leading to closing stocks of 817.8
million liters, 14.1% up on the end of the 2Q’08. Thanks to the exchange
rate and domestic anhydrous prices, ethanol averaged R$826 per 1,000
liters, 30.3% higher than the 2Q'08
average.
|
2Q'08
|
2Q'09
|
Ethanol Business
|
YTD'08 | YTD'09 |
Volume Sold (million
leters)
|
|||||
305.6
|
281.7
|
Total Local
& Export
|
550.6
|
620.2
|
|
242.4
|
114.3
|
Local
|
416.9
|
337.9
|
|
63.2
|
167.4
|
Export
|
133.7
|
282.3
|
|
Average Unit
Price (R$/thousand liters)
|
|||||
634
|
826
|
Total Local
& Export
|
659
|
765
|
|
612
|
781
|
Local
|
644
|
738
|
|
720
|
857
|
Export
|
705
|
798
|
▪ |
Revenue from
other products and services totaled R$72.6 million, 13.5% up on the R$64.0
million recorded in the 2Q’08. Growth was mainly fueled by R$6.1 million
in energy sales by the Gasa unit’s new company-generation
plant.
|
||
Stable
COGS, with lower volume offset by higher unit cost
|
▪ |
The cost of
goods sold and services rendered dipped by 0.7% to R$547.1 million, mainly
due to lower sales volume (-9.1% in sugar-equivalent terms compared with
the 2Q’08), despite pressure from the 7.2% unit cost
increase.
|
|
▪ |
Most of the
latter variation came from the 3.9% reduction in sucrose content (ATR) in
cane production, from 143.7 kg per tonne of cane in the 07/08
harvest to 138.7 kg/t in the 08/09 season. In addition, the price of the
ATR acquired from third parties moved up by 6.0%, from R$0.2420/kg at the
end of October 2008 to R$0.2566/kg at the close of the 2Q’09, due to the
increase in the Consecana price caused by the recovery of sugar and
ethanol prices. This raised total cane costs by 3%, from R$ 44.92/t to
R$46.31/t.
|
▪ |
Another
important factor was the reduction in processed cane volume from 17.6
million tonnes to 16.8 million, chiefly due to more time lost to rain in
the 2Q’09.
|
2Q'08
|
2Q'09
|
COGS
per Product
|
YTD'08 | YTD'09 |
(551.1)
|
547.1
|
Cost of Good
Sold (R$MM)
|
(1,099.1)
|
(1,173.2)
|
|
(310.6)
|
(299.2)
|
Sugar
|
(663.5)
|
(639.7)
|
|
(190.9)
|
(189.4)
|
Ethanol
|
(354.8)
|
432.1
|
|
(49.6) | (58.5) |
Other
Products/Service
|
(80.8) | (101.4) | |
Average Unit
Cost (R$)
|
|||||
377
|
404
|
Unit COGS of
Suger (R$/ton)
|
398
|
418
|
|
625
|
672
|
Unit COGS of
Ethanol (R$/thousand liters)
|
644
|
697
|
|
n.a.
|
n.a.
|
Unit COGS of
Other Productcs/Services
|
n.a.
|
n.a.
|
Selling
expenses move up due to higher ethanol exports
|
▪ |
Selling
expenses totaled R$88.6 million, 3.6% down year-on-year. In unit
sugar-equivalent terms, however, this corresponds to R$73/t, 6.0% up on
the R$69/t recorded in the 2Q’08, basically due to the alteration in the
ethanol sales mix from 80:20 in favor of the domestic market in the 2Q’08
to 60:40 in favor of the export market in the 2Q’09. As a result, ethanol
export logistics expenses played a major role in increasing the unit cost
of freight to the port by R$60/m3
and port loading costs by R$21.7/m3.
|
2Q'08
|
2Q'09
|
Selling
Expenses
|
YTD'08 | YTD'09 |
(91.9)
|
(88.6)
|
Expenses
(R$MM)
|
(153.0)
|
(174.3)
|
|
1,328.4
|
1,207.7
|
Volume
(103 tons of
sugar-equivalent)
|
2,574.6
|
2,559.9
|
|
69 | 73 |
Unitary
Expense (R$/ton)
|
59 | 68 |
▪ |
G&A
expenses totaled R$66.5 million in the 2Q’09, representing 9.3% of net
revenue, 49.9% up on the R$45.5 million recorded in the 2Q’08, chiefly due
to the hiring of the entire cane-cutting workforce directly by Cosan under
the CLT (registered salary) system, thereby cutting out sub-contractors;
and improvements to the Company’s IT and telecommunications
systems.
|
2Q'08
|
2Q'09
|
General
& Administrative Expenses
|
YTD'08 | YTD'09 |
(45.5)
|
(66.5)
|
Expenses
(R$MM)
|
(102.5)
|
(126.2)
|
|
1,328.4
|
1,207.7
|
Volume
(103 tons of
sugar-equivalent)
|
2,574.6
|
2,559.9
|
|
34 | 55 |
Unitary
Expense (R$/ton)
|
40 | 49 |
▪ |
Other
operating expenses amounted to R$13.6 million, mainly non-cash provisions
for tax contingencies.
|
||
Exchange variation influences
the 2Q’09 financial result
|
▪ |
The Company posted a
negative net financial result, chiefly due to the big devaluation of the
Real against the US dollar. The resulting restatement of
dollar-denominated debt generated
exchange losses of around R$501.4 million, versus revenue of
R$146.0 million in the
2Q’08.
|
2Q'08
|
2Q'09
|
Financial
Expenses, Net (R$MM)
|
YTD'08 | YTD'09 |
(55.0)
|
(43.2)
|
Interest on
Financial Debt
|
(110.5)
|
(81.0)
|
|
20.8
|
27.0
|
Financial
Investments Income
|
44.1
|
47.0
|
|
34.2
|
(16.1)
|
Sub-total:
Interest on Net Financial Debt
|
(66.4)
|
(34.1)
|
|
2.8
|
(25.8)
|
Other
interest and monetary variation
|
(20.9)
|
(67.4)
|
|
146.0
|
501.4
|
Exchange
Variation
|
274.5
|
(399.8)
|
|
66.8
|
3.0
|
Gains
(losses) with Derivatives
|
150.6
|
48.2
|
|
(18.5)
|
(0.4)
|
CPMF
Taxes, Banking Fees and Other
|
(24.1)
|
(0.8)
|
|
(30.2)
|
-
|
Premium
Paid in Bond Tender Offer
|
(30.2)
|
-
|
|
11.5
|
-
|
Interest on Indemnity from Government | 11.5 | - | |
144.3 | (540.8) |
Net
Financial Expenses
|
295.2 | (453.8) |
▪ |
Unlike in the
2Q’08, derivative transactions only made a very limited contribution to
financial revenue. Commodity derivatives generated gains of R$17.5
million, versus gains of R$56.9 million last year, while FX derivatives
generated losses of R$14.5 million, versus gains of R$40.1 million in the
2Q’08. In addition, in the 2Q’08 the Company recorded losses of R$30.1
million in derivatives from the accounting reclassification, subsequently
adjusted in the 3Q’08.
|
||
▪ |
At the close
of the 2Q’09, Cosan had 1,130.4 thousand tonnes of VHP sugar tied to the
NY11, hedged at an average price of 13.68 ¢US$/lb, position that,
marked-to-market, results in an estimated positive value of R$84.9
million. It also had US$233.4 million hedged at an average exchange rate
of R$1.90/US$, with an estimated negative market value of R$97.9 million.
This includes a US$694.8 million short position at an average price of
R$1.93/US$ and an estimated negative market value of R$196.5 million, to
protect future export flows, and a US$461.2 million long position at an
average price of R$1.95 and an estimated positive market value of R$98.6
million to settle dollar-denominated debt, especially that related to the
Esso acquisition.
|
||
▪ |
The increase
in expenses from other interest and monetary variations on contingent and
fiscal liabilities chiefly reflected the above-mentioned R$30.1 million
accounting reclassification of derivative losses in the 2Q’08,
subsequently corrected in the 3Q08.
|
||
▪ |
Expenses from
goodwill amortizations fell by 28.6% in line with the amortization
schedules in the financial statements. The positive income and social
contribution tax result reflected the appropriation of tax credits,
chiefly on exchange expenses which contaminated the
result.
|
||
▪ |
All in all,
Cosan recorded a 2Q’09 net loss of R$380.7 million. However, it is worth
noting that this figure includes R$501.4 million in losses from the impact
of the exchange variation on dollar-denominated debt, most of which
long-term or perpetual, which had no effect on the Company’s
cash.
|
C.
Financial Situation
|
|||
▪ |
The Company
closed the 2Q’09 with gross financial debt of R$2,400.3 million, well
above the R$1,778.0 million reported at the end of the 2Q’08, chiefly due
to the 21.3% year-on-year increase in the end-of-period exchange rate,
BNDES funding to finance the co-generation programs and advances on export
contracts (ACCs) to strengthen liquidity. However, net debt, taking cash
and cash equivalents into consideration, fell by 48.8%, from R$1,636.4
million, in the 2Q’08, to R$837.5
million.
|
Debt
per Type (R$MM)
|
2Q'08 | % | 2Q'09 | % | Var. | ||||||||||||||||
BNDES
|
- | - | 191.7 | 8.0 | 191.7 | ||||||||||||||||
Senior Notes
2009
|
71.4 | 4.0 | 75.7 | 3.2 | 4.4 | ||||||||||||||||
Senior Notes
2017
|
709.7 | 39.9 | 860.8 | 35.9 | 151.1 | ||||||||||||||||
Perpetual
Notes
|
800.2 | 45.0 | 970.6 | 40.4 | 170.4 | ||||||||||||||||
FX Advances
|
- | - | 127.6 | 5.3 | 127.6 |
Finame
(BNDES)
|
12.5 | 0.7 | 10.1 | 0.4 | (2.3) | ||||||||||||||||
Working
Capital
|
38.6 | 2.2 | 28.5 | 1.2 | (10.1) | ||||||||||||||||
IFC
|
114.2 | 6.4 | 116.0 | 4.8 | 1.8 | ||||||||||||||||
Pre-Export
Contracts
|
31.5 | 1.8 | 19.3 | 0.8 | (12.2) | ||||||||||||||||
Promissory
Notes
|
- | - | - | - | - | ||||||||||||||||
Gross
Debt
|
1,778.0 | 100.0 | 2,400.3 | 100.0 | 622.3 | ||||||||||||||||
Cash &
Marketable Securities
|
141.6 | 8.0 | 1,562.8 | 65.1 | 1,421.2 | ||||||||||||||||
Net
Debt
|
1,636.4 | 92.0 | 837.5 | 34.9 | (798.9) |
▪ |
Thanks to the
two new funding operations (BNDES loan and the ACCs), the profile of the
debt changed, with the short-term portion increasing to 12.4% at the close
of the quarter, although still low. Most of the debt was still
dollar-denominated, but the Real-indexed portion moved up due to the BNDES
funding.
|
Debt
Profile (R$MM)
|
2Q'08 | % | 2Q'09 | % | Var. | ||||||||||||||||
Total
Debt
|
1,778.0 | 100.0 | 2,400.3 | 100.0 | 622.3 | ||||||||||||||||
Short-Term
|
99.6 | 5.6 | 298.6 | 12.4 | 199.1 | ||||||||||||||||
Long-Term
|
1,678.5 | 94.4 | 2,101.7 | 87.6 | 423.2 | ||||||||||||||||
Real - R$
|
51.1 | 2.9 | 357.9 | 14.9 | 306.8 | ||||||||||||||||
Dollar -
US$
|
1,726.9 | 97.1 | 2,042.4 | 85.1 | 315.5 |
D.
Investments
|
|||
▪ |
Cosan’s 2Q’09
operating capex totaled R$304.7 million, 122.8% up year-on-year.
Non-operating investments came to R$19.9 million, primarily R$15.4 million
in deferred assets from pre-operating expenses in the
bioenergy facilities, in Jataí, and in preparations for the
acquisition of Esso.
|
2Q'08
|
2Q'09
|
Capex
(R$MM)
|
YTD'08 | YTD'09 |
0.3
|
4.4
|
New
Investment, including Goodwill
|
4.2
|
5.2
|
|
0.4
|
15.4
|
Deferred
Charges & Other
|
0.6
|
26.9
|
|
49.6
|
24.6
|
Sugar
Cane Planting Costs
|
105.8
|
79.5
|
|
26.5 | 127.3 |
Co-generation
Projects
|
54.0 | 168.9 | |
-
|
14.7
|
Inter-harvest
Maintenance Costs
|
3.6 | 14.7 | |
60.6
|
138.1
|
Investments
in P,P&E
|
143.8
|
294.9
|
|
137.5
|
324.6
|
Capex
|
311.9
|
590.1
|
|
136.8
|
304.7
|
Operating
Capex
|
307.1
|
558.1
|
§
|
The Company
reduced its new planted area to 5,739 hectares, 52% less than in the
1Q’08; consequently, planting capex fell from R$49.8 million to R$ 24.6
million in the same period.
|
§
|
Co-generation
absorbed R$128.9 million, most of which went to the Gasa and Bonfim units.
The Gasa plant already sold energy during the quarter, generating revenue
of R$6.1 million. Cosan is finalizing the Costa Pinto, Rafard, Bonfim and
Gasa projects and is planning the initiation of investments in Diamante,
Univalem and Barra, all of which already have energy sale
contracts.
|
§
|
Inter-harvest
maintenance costs refer to the advanced purchase of equipment to be used
for industrial maintenance in the inter-harvest period beginning in
January 2009. These acquisitions were brought forward in order to prevent
possible equipment delivery delays and a subsequent postponement of the
beginning of the next harvest as well as to reduce the risk of crushing
stoppages due to lack of maintenance. In addition, thanks to the state of
the market, purchase bargaining conditions were exceptionally
favorable.
|
§
|
Investments in
fixed assets included R$113.3 million in the Jataí greenfield project,
corresponding to the initiation of the electro-mechanical assembly work
and the advanced stage of construction. By the close of the quarter, the
project had absorbed a total of R$275.5
million.
|
§
|
Other
important investments included: (i) R$8.0 million in the conclusion of new
ethanol tankage assets in Ipaussu, Bonfim, Barra and Gasa; (ii) R$3.0
million in the construction of pipelines to carry vignasse to
the plantations for environmental reasons and to reduce dependence on
fertilizers; (iii) R$8.6 million in mechanization, including new
harvesters, tractors, implements and trucks for agricultural operations in
the various units; (iv) the conclusion of the installation of a boiler in
Univalem, allowing the supply of steam to third parties (fixed client and
contracted steam); and (v) the renewal and upgrading of fermentation tanks
in Univalem, reducing process costs and
losses.
|
|
E.
Material Facts
|
§
|
In the 2Q’09,
the Company entered into 7 new energy trading contracts through its Gasa,
Bonfim, Barra, Jataí, Univalem, Diamante and Paraúna units. These biomass
co-generation contracts will last for 15-years and were established by
bilateral agreements and through energy auctions held by the federal
government. Including previous contracts by the Costa Pinto, Rafard and
Bonfim units, the total volume of energy contacted from the Company comes
to approximately 28,000,000 MWh, equivalent to around R$ 4.3 billion at
current values.
|
§
|
On December 1,
2008, Cosan became the first integrated renewable energy company by
finalizing the acquisition of Esso Brasileira de Petróleo Ltda.
("Essobrás"), which holds the marketing and distribution of fuels and
production and marketing of lubes and specialties assets of ExxonMobil in
Brazil. Ranked among the four largest fuel distribution companies in
Brazil, Essobrás has a nationwide network of more than 1,500 gas stations
and 40 distribution centers and annual sales of more than 5 billion liters
of ethanol, gasoline and diesel, 160 million m3 of
VNG and 127,000 m3 of lubricants. The
acquisition was concluded through the payment of US$ 715 million to
ExxonMobil International Holdings B.V., which retained 100% of the
companies holding ExxonMobil’s downstream assets in Brazil, plus the
assumption of US$ 175 million in
debt.
|
§
|
In order to
finance the acquisition of Esso Brasileira Petróleo Ltda., on September 19
a stand-by loan of US$ 500 million from Banco Bradesco S.A. was approved
(in R$ equivalent). The funds were accessed through a public issue of
commercial promissory notes in the amount of R$ 1.1 billion, entirely
subscribed by the agent bank at the rate of DI + 3% p.a. for 360
days.
|
§
|
On September
19, the Company announced a Cosan S.A. capital increase in the amount of
R$ 880 million through the issue of 55,000,000 new shares at R$ 16.00
each. In addition, subscribers were granted 1 subscription bonus for each
new share subscribed, entitling their holders the right to subscribe to
0.6 common shares each up to the end of 2009. On the same date, Cosan
Limited declared its intention of subscribing all the shares, respecting
minority interests. The issue was wound up on November 10, Cosan Limited
having subscribed 54,993,482 shares, equivalent to R$ 879,895,712.00.
Minority shareholders manifesting an interest in subscribing to the
unsubscribed shares could, together with Cosan Limited, increase their
holdings in the Company.
|
§
|
In October, a
private subscription was announced involving US$ 50 million by the
controlling shareholder, Rubens Ometto Silveira Mello, and up to US$ 150
million by the funds managed by Gávea Investimentos Ltda, at US$ 4.50 per
class A share or BDR subscribed. The offering was extended to all class A
share or BDR holders, respecting the respective legislation of each
jurisdiction. The offering was concluded on October 27, with the issue of
44,444,529 new class A shares and/or BDRs subscribed by the Gávea funds,
Rubens Ometto Silveira Mello and other class A share and/or BDR holders.
As a result, the controlling group retained 41.5% of the Company’s total
capital and 86.1% of its voting capital. The proceeds from the placement
will be used to strengthen the Cosan group‘s capital structure, providing
a platform for its expansion projects, possible future acquisitions and
other corporate ends.
|
F.
Guidance for the FY’09
|
|||
This guidance was prepared without
considering the effects of Esso’s possible consolidation on Cosan’s
financial statements.
Also excluded
is the anticipation of the end of Cosan’s fiscal year to March
31 approved by the Annual and Extraordinary General Meeting of August 29,
resulting in an FY’09 of only 11 months.
|
This section
presents guidance by range of variation for the same key parameters for
the company, including non-relevant variations below 5%, medium variations
of up to 15%, material variations of up to 30% and significant variations
of over 30%. In addition, other statements within this letter may be
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Act of 1934 as
well as amendments to same. Such forward-looking statements are only
predictions and are not guarantees of future performance. Investors are
cautioned that any such forward-looking statements are subject to various
risks, uncertainties and factors related to the market and operations of
Cosan and its subsidiaries that may cause the actual results of the
Company to be significantly different from any future results expressed or
implied by such predictions. Although Cosan believes that the expectations
and assumptions reflected in the forward-looking statements are fair,
based on information currently available to its management, it cannot
guarantee future results or events. Cosan also expressly disclaims any
responsibility for updating any of the forward-looking
statements.
|
December 2008
|
Cosan | Renewable Energy for
a Better World
|
Guidance
|
2007FY
|
2008FY
|
2009FY
|
Changes
from previous guidance |
||
FX Rate - EoP
(R$:US$)
|
2.0339
|
1.6872
|
▲▲▲
|
=
|
||
Crushed Cane
Volume (thousand tons)
|
36,157
|
40,315
|
▲
|
▲
|
||
Sugar Volume
Sold (thousand tons)
|
3,241
|
3,147
|
▲
|
▲
|
||
Ethanol Volume
Sold (million liters)
|
1,322
|
1,568
|
▲
|
▲
|
||
Avg. Sugar
Price (R$/ton)
|
683
|
454
|
▲▲▲
|
▲
|
||
Avg Ethanol
Price (R$/thousand liter)
|
897
|
714
|
▲▲
|
▲
|
||
Revenues
(R$MM)
|
3,605
|
2,736
|
▲▲▲
|
▲▲
|
||
COGS
(R$MM)
|
2,481
|
2,387
|
▲▲
|
▲▲
|
||
EBITDA
(R$MM)
|
928
|
173
|
▲▲▲
|
▲▲▲
|
||
EBITDAH
(R$MM)
|
854
|
398
|
▲▲▲
|
▲
|
||
Net
Profit/Loss (R$MM)
|
357
|
(48)
|
▼▼▼
|
▼▼▼
|
||
Operating
Capex (R$MM)
|
684
|
1,051
|
▲
|
▲▲
|
Income
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In million of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Gross
Operating Revenue
|
2,702.4 | 3,902.9 | 2,978.6 | 1,048.5 | 755.4 | 636.4 | 678.3 | 747.5 | 916.4 | 692.7 | 760.1 | |||||||||||||||||||||||||||||||||
(-)
Sales
Taxes and Deductions
|
(224.5 | ) | (297.8 | ) | (242.5 | ) | (77.7 | ) | (73.3 | ) | (44.7 | ) | (50.8 | ) | (73.5 | ) | (73.4 | ) | (53.1 | ) | (45.0 | ) | ||||||||||||||||||||||
(=)
Net Operating Revenue
|
2,477.9 | 3,605.1 | 2,736.2 | 970.8 | 682.1 | 591.7 | 627.5 | 674.0 | 843.0 | 639.6 | 715.1 | |||||||||||||||||||||||||||||||||
(-) Cost of Goods Sold and Services Rendered | (1,721.3 | ) | (2,481.1 | ) | (2,387.1 | ) | (680.2 | ) | (511.8 | ) | (548.0 | ) | (551.1 | ) | (594.4 | ) | (693.6 | ) | (626.0 | ) | (547.1 | ) | ||||||||||||||||||||||
(=) Gross Profit | 756.6 | 1,123.9 | 349.0 | 290.6 | 170.3 | 43.7 | 76.4 | 79.6 | 149.4 | 13.6 | 167.9 | |||||||||||||||||||||||||||||||||
Margin
|
30.5 | % | 31.2 | % | 12.8 | % | 29.9 | % | 25.0 | % | 7.4 | % | 12.2 | % | 11.8 | % | 17.7 | % | 2.1 | % | 23.5 | % | ||||||||||||||||||||||
(-) Operating Income (Expenses): | (819.1 | ) | (558.6 | ) | (428.0 | ) | (196.7 | ) | 98.9 | (24.6 | ) | (51.8 | ) | (186.1 | ) | (165.5 | ) | (99.4 | ) | (771.3 | ) | |||||||||||||||||||||||
(-) Selling | (217.1 | ) | (282.0 | ) | (301.3 | ) | (71.2 | ) | (75.2 | ) | (61.1 | ) | (91.9 | ) | (73.4 | ) | (74.9 | ) | (85.7 | ) | (88.6 | ) | ||||||||||||||||||||||
(-) General and Administrative | (150.0 | ) | (246.2 | ) | (210.2 | ) | (52.8 | ) | (97.7 | ) | (57.0 | ) | (45.5 | ) | (49.9 | ) | (57.7 | ) | (59.7 | ) | (66.5 | ) | ||||||||||||||||||||||
(-) Financial Income (Expenses), Net | (245.2 | ) | 158.0 | 284.3 | (17.6 | ) | 333.6 | 150.8 | 144.3 | (11.9 | ) | 1.0 | 86.9 | (540.8 | ) | |||||||||||||||||||||||||||||
(±) Earnings (Losses) on Equity Investments | 0.6 | (0.1 | ) | 6.6 | 0.1 | (0.5 | ) | 0.1 | 0.0 | 0.1 | 6.4 | 0.2 | 1.2 | |||||||||||||||||||||||||||||||
(-) Goodwill Amortization | (142.8 | ) | (223.7 | ) | (201.4 | ) | (55.9 | ) | (55.9 | ) | (56.0 | ) | (56.6 | ) | (48.2 | ) | (40.6 | ) | (40.4 | ) | (40.4 | ) | ||||||||||||||||||||||
(±) Other Operating Income (Expenses), Net | (11.8 | ) | 35.3 | (6.0 | ) | 0.7 | (5.4 | ) | (1.5 | ) | (2.0 | ) | (2.7 | ) | 0.3 | (0.6 | ) | (14.2 | ) | |||||||||||||||||||||||||
(-) Expenses with Placement of Shares | (52.8 | ) | - | - | - | - | - | - | - | - | - | (22.1 | ) | |||||||||||||||||||||||||||||||
(=) Operating Income (Loss) | (62.5 | ) | 565.3 | (79.0 | ) | 93.9 | 269.1 | 19.1 | 24.6 | (106.6 | ) | (16.1 | ) | (85.8 | ) | (603.4 | ) | |||||||||||||||||||||||||||
Margin
|
-2.5 | % | 15.7 | % | -2.9 | % | 9.7 | % | 39.5 | % | 3.2 | % | 3.9 | % | -15.8 | % | -1.9 | % | -13.4 | % | -84.4 | % | ||||||||||||||||||||||
(±) Non-operating Result, Net | (1.0 | ) | 2.0 | 10.0 | 0.1 | 0.4 | 3.0 | 2.3 | 1.1 | 3.7 | 4.5 | 6.2 | ||||||||||||||||||||||||||||||||
(=) Income (Loss) before Taxes | (63.5 | ) | 567.3 | (69.0 | ) | 94.0 | 269.5 | 22.1 | 26.9 | (105.5 | ) | (12.4 | ) | (81.3 | ) | (597.1 | ) | |||||||||||||||||||||||||||
(±) Income and Social Contribution Taxes | 5.8 | (203.9 | ) | 18.7 | (30.0 | ) | (102.5 | ) | (9.0 | ) | (12.3 | ) | 33.5 | 6.6 | 22.4 | 210.0 | ||||||||||||||||||||||||||||
(±) Minority Interest | (6.9 | ) | (6.2 | ) | 2.5 | (0.6 | ) | (2.3 | ) | 0.6 | 0.7 | 0.6 | 0.5 | 0.8 | 6.5 | |||||||||||||||||||||||||||||
(=) Net Income (Loss) for the Year | (64.6 | ) | 357.3 | (47.8 | ) | 63.4 | 164.7 | 13.7 | 15.2 | (71.4 | ) | (5.3 | ) | (58.1 | ) | (380.7 | ) | |||||||||||||||||||||||||||
Margin
|
-2.6 | % | 9.9 | % | -1.7 | % | 6.5 | % | 24.2 | % | 2.3 | % | 2.4 | % | -10.6 | % | -0.6 | % | -9.1 | % | -53.2 | % | ||||||||||||||||||||||
● EBITDA | 517.7 | 928.0 | 172.9 | 197.9 | 128.4 | 49.5 | 75.9 | 1.3 | 46.2 | 24.7 | 175.3 | |||||||||||||||||||||||||||||||||
Margin
|
20.9 | % | 25.7 | % | 6.3 | % | 20.4 | % | 18.8 | % | 8.4 | % | 12.1 | % | 0.2 | % | 5.5 | % | 3.9 | % | 24.5 | % | ||||||||||||||||||||||
●
EBITDAH (Ebitda
adjusted by Hedge)
|
308.6 | 853.7 | 397.8 | 233.2 | 136.4 | 133.3 | 142.7 | 94.4 | 27.3 | 69.9 | 178.3 | |||||||||||||||||||||||||||||||||
Margin
|
13.6 | % | 24.2 | % | 13.4 | % | 23.2 | % | 19.8 | % | 19.7 | % | 20.6 | % | 12.3 | % | 3.3 | % | 10.2 | % | 24.8 | % | ||||||||||||||||||||||
●
Depreciation & Amortization
|
139.9 | 297.0 | 341.3 | 30.6 | 136.5 | 125.4 | 139.0 | 47.8 | 29.1 | 157.2 | 176.7 | |||||||||||||||||||||||||||||||||
Balance
Sheet
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In million of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Cash and Cash
Equivalents
|
61.0 | 643.8 | 65.8 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | 134.6 | |||||||||||||||||||||||||||||||||
Marketable
Securities
|
770.5 | 573.3 | 944.2 | 303.7 | 573.3 | 237.4 | 6.5 | 1,332.5 | 944.2 | 543.5 | 1,428.2 | |||||||||||||||||||||||||||||||||
Derivative
Financial Instruments
|
288.6 | 37.6 | 86.5 | 8.5 | 37.6 | 94.0 | 3.6 | 67.3 | 86.5 | 88.4 | 8.8 | |||||||||||||||||||||||||||||||||
Trade Accounts
Receivable
|
212.6 | 112.3 | 215.2 | 212.1 | 112.3 | 140.4 | 107.3 | 105.4 | 215.2 | 115.5 | 215.9 | |||||||||||||||||||||||||||||||||
Inventories
|
390.8 | 503.4 | 570.5 | 857.9 | 503.4 | 790.2 | 1,194.8 | 1,019.7 | 570.5 | 905.6 | 1,439.9 | |||||||||||||||||||||||||||||||||
Advances to
Suppliers
|
132.7 | 211.4 | 226.1 | 184.0 | 211.4 | 308.6 | 304.5 | 243.1 | 226.1 | 252.3 | 287.0 | |||||||||||||||||||||||||||||||||
Related
Parties
|
0.0 | - | 16.3 | 0.1 | - | - | - | - | 16.3 | 1.1 | 26.5 | |||||||||||||||||||||||||||||||||
Deferred
Income and Social Contribution Taxes
|
41.4 | 38.1 | - | 144.9 | 38.1 | 26.9 | 24.2 | 26.0 | - | - | - | |||||||||||||||||||||||||||||||||
Other
Assets
|
115.7 | 104.9 | 158.8 | 121.7 | 104.9 | 94.2 | 75.1 | 79.7 | 158.8 | 143.2 | 200.0 | |||||||||||||||||||||||||||||||||
Current
Assets
|
2,013.4 | 2,224.7 | 2,283.6 | 2,809.6 | 2,224.7 | 2,270.8 | 1,851.1 | 2,989.4 | 2,283.6 | 2,140.0 | 3,740.9 | |||||||||||||||||||||||||||||||||
Accounts
Receivable from Federal Government
|
- | 318.4 | 342.2 | - | 318.4 | 318.4 | 331.4 | 339.2 | 342.2 | 342.2 | 342.2 | |||||||||||||||||||||||||||||||||
CTN's-Restricted
Brazilian Treasury Bills
|
104.9 | 123.3 | 151.7 | 119.2 | 123.3 | 127.8 | 135.9 | 144.9 | 151.7 | 164.8 | 170.9 | |||||||||||||||||||||||||||||||||
Deferred
Income and Social Contribution Taxes
|
361.8 | 242.5 | 357.0 | 214.0 | 242.5 | 261.6 | 277.1 | 297.9 | 357.0 | 386.7 | 571.9 | |||||||||||||||||||||||||||||||||
Other
Assets
|
99.5 | 112.4 | 201.7 | 113.0 | 112.4 | 108.1 | 105.8 | 151.8 | 201.7 | 212.3 | 217.6 | |||||||||||||||||||||||||||||||||
Investments
|
13.4 | 93.2 | 120.3 | 13.7 | 93.2 | 13.8 | 13.9 | 14.0 | 120.3 | 124.2 | 129.2 | |||||||||||||||||||||||||||||||||
Property,
Plant and Equipment
|
1,656.4 | 2,013.1 | 2,771.4 | 1,732.1 | 2,013.1 | 2,076.7 | 2,070.3 | 2,293.3 | 2,771.4 | 2,864.7 | 2,993.2 | |||||||||||||||||||||||||||||||||
Goodwill
|
1,353.0 | 1,133.2 | 1,160.7 | 1,189.1 | 1,133.2 | 1,146.6 | 1,090.2 | 1,042.4 | 1,160.7 | 1,115.6 | 1,074.5 | |||||||||||||||||||||||||||||||||
Deferred
Charges
|
2.3 | 2.6 | 4.9 | 2.2 | 2.6 | 3.2 | 3.6 | 3.7 | 4.9 | 18.0 | 33.4 | |||||||||||||||||||||||||||||||||
Permanent
Assets
|
3,591.3 | 4,038.6 | 5,109.9 | 3,383.2 | 4,038.6 | 4,056.2 | 4,028.1 | 4,287.1 | 5,109.9 | 5,228.5 | 5,532.9 | |||||||||||||||||||||||||||||||||
(=) Total Assets | 5,604.8 | 6,263.4 | 7,393.5 | 6,192.8 | 6,263.4 | 6,327.0 | 5,879.2 | 7,276.4 | 7,393.5 | 7,368.5 | 9,273.7 | |||||||||||||||||||||||||||||||||
Loans and
Financings
|
68.8 | 89.0 | 83.3 | 75.9 | 89.0 | 116.5 | 105.1 | 74.9 | 83.3 | 66.4 | 301.7 | |||||||||||||||||||||||||||||||||
Derivatives
Financial Instruments
|
65.4 | 35.5 | 41.9 | 2.5 | 35.5 | 48.0 | 31.2 | 20.5 | 41.9 | 13.1 | 105.3 | |||||||||||||||||||||||||||||||||
Trade Accounts
Payable
|
201.7 | 113.8 | 191.0 | 197.2 | 113.8 | 315.2 | 373.3 | 196.3 | 191.0 | 331.6 | 492.0 | |||||||||||||||||||||||||||||||||
Salaries
Payable
|
49.7 | 63.3 | 80.7 | 37.5 | 63.3 | 91.7 | 113.4 | 51.7 | 80.7 | 119.0 | 143.0 | |||||||||||||||||||||||||||||||||
Taxes and
Social Contributions Payable
|
111.1 | 126.2 | 116.1 | 114.8 | 126.2 | 131.5 | 101.0 | 93.3 | 116.1 | 115.0 | 109.7 | |||||||||||||||||||||||||||||||||
Advances from
Customers
|
79.2 | 49.4 | 26.3 | 83.2 | 49.4 | 41.0 | 28.7 | 30.0 | 26.3 | 25.5 | 32.1 | |||||||||||||||||||||||||||||||||
Promissory
Notes
|
55.8 | 1.3 | - | 3.7 | 1.3 | 1.3 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Related
Parties
|
0.1 | 0.7 | - | - | 0.7 | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred
Income and Social Contribution Taxes
|
5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | 5.5 | |||||||||||||||||||||||||||||||||
Other
Liabilities
|
32.8 | 107.2 | 32.9 | 27.2 | 107.2 | 87.3 | 12.3 | 8.3 | 32.9 | 17.5 | 26.6 | |||||||||||||||||||||||||||||||||
Current
Liabilities
|
670.0 | 591.7 | 577.7 | 547.5 | 591.7 | 838.1 | 770.5 | 480.5 | 577.7 | 693.4 | 1,215.8 | |||||||||||||||||||||||||||||||||
Loans and
Financing
|
2,002.7 | 2,770.4 | 2,136.2 | 2,868.7 | 2,770.4 | 2,591.1 | 2,178.8 | 2,196.8 | 2,136.2 | 2,047.9 | 2,679.3 | |||||||||||||||||||||||||||||||||
Taxes and
Social Contributions Payable
|
446.9 | 338.5 | 359.3 | 346.2 | 338.5 | 336.5 | 345.0 | 340.1 | 359.3 | 351.5 | 346.1 | |||||||||||||||||||||||||||||||||
Promissory
Notes
|
12.7 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Provision for
Contingencies
|
907.4 | 728.0 | 832.4 | 717.4 | 728.0 | 741.0 | 757.5 | 775.3 | 832.4 | 849.8 | 873.1 | |||||||||||||||||||||||||||||||||
Advances from
Customers
|
86.9 | 49.5 | - | 42.5 | 49.5 | 15.6 | 14.5 | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred Taxes
on Revaluation Reserves
|
40.8 | 33.4 | 27.6 | 35.4 | 33.4 | 30.9 | 28.3 | 27.4 | 27.6 | 24.5 | 21.9 | |||||||||||||||||||||||||||||||||
Other
Liabilities
|
67.9 | 100.6 | 116.8 | 62.4 | 100.6 | 109.6 | 105.9 | 107.0 | 116.8 | 116.8 | 116.5 | |||||||||||||||||||||||||||||||||
Noncurrent
Liabilities
|
3,565.4 | 4,020.4 | 3,472.3 | 4,072.5 | 4,020.4 | 3,824.7 | 3,429.9 | 3,446.7 | 3,472.3 | 3,390.5 | 4,037.0 | |||||||||||||||||||||||||||||||||
Minority
Shareholders' Interest
|
14.0 | 20.2 | 17.7 | 17.9 | 20.2 | 19.6 | 18.9 | 18.2 | 17.7 | 17.0 | 258.1 | |||||||||||||||||||||||||||||||||
Capital
|
1,185.8 | 1,192.7 | 2,935.3 | 1,192.7 | 1,192.7 | 1,192.7 | 1,192.7 | 2,935.3 | 2,935.3 | 2,935.3 | 3,815.3 | |||||||||||||||||||||||||||||||||
Profits
Reserve
|
- | 227.3 | 180.2 | - | 227.3 | 227.3 | 227.3 | 227.3 | 180.2 | 180.2 | 180.2 | |||||||||||||||||||||||||||||||||
Legal
Reserve
|
- | 16.0 | 16.0 | - | 16.0 | 16.0 | 16.0 | 16.0 | 16.0 | 16.0 | 16.0 | |||||||||||||||||||||||||||||||||
Stock in
Treasury
|
(4.2 | ) | ||||||||||||||||||||||||||||||||||||||||||
Revaluation
Reserves
|
195.9 | 195.0 | 194.4 | 195.2 | 195.0 | 194.7 | 194.5 | 194.4 | 194.4 | 194.2 | 193.8 | |||||||||||||||||||||||||||||||||
Accumulated
losses
|
(26.2 | ) | - | - | 167.0 | - | 13.9 | 29.4 | (41.9 | ) | - | (57.9 | ) | (438.2 | ) | |||||||||||||||||||||||||||||
Shareholders'
Equity
|
1,355.4 | 1,631.0 | 3,325.8 | 1,554.9 | 1,631.0 | 1,644.7 | 1,659.9 | 3,331.1 | 3,325.8 | 3,267.7 | 3,762.8 | |||||||||||||||||||||||||||||||||
(=) Total Liabilities & Shareholders' Equity | 5,604.8 | 6,263.4 | 7,393.5 | 6,192.8 | 6,263.4 | 6,327.0 | 5,879.2 | 7,276.4 | 7,393.5 | 7,368.5 | 9,273.7 |
Cash Flow
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Net
Income (Loss) for the Year
|
(64.6 | ) | 357.3 | (47.8 | ) | 63.4 | 164.7 | 13.7 | 15.2 | (71.4 | ) | (5.3 | ) | (58.1 | ) | (380.7 | ) | |||||||||||||||||||||||||||
Non-cash
Adjustments:
|
||||||||||||||||||||||||||||||||||||||||||||
Earnings
(Losses) from Equity Investments
|
(0.6 | ) | 0.1 | (6.6 | ) | (0.1 | ) | 0.5 | (0.1 | ) | (0.0 | ) | (0.1 | ) | (6.4 | ) | (0.2 | ) | (1.2 | ) | ||||||||||||||||||||||||
Depreciation
& Amortization
|
139.9 | 297.0 | 341.3 | 30.6 | 136.5 | 125.4 | 139.0 | 47.8 | 29.1 | 157.2 | 176.7 | |||||||||||||||||||||||||||||||||
Residual Value
of Permanent Assets Disposals
|
6.7 | 8.4 | 11.0 | 1.0 | 3.8 | 2.6 | 4.2 | 0.1 | 4.1 | 2.8 | 3.0 | |||||||||||||||||||||||||||||||||
Goodwill
Amortization
|
142.8 | 223.7 | 201.4 | 55.9 | 55.9 | 56.0 | 56.6 | 48.2 | 40.6 | 40.4 | 40.4 | |||||||||||||||||||||||||||||||||
Accrued
Financial Expenses
|
48.7 | (190.6 | ) | (116.0 | ) | 65.0 | (344.9 | ) | (103.0 | ) | (63.2 | ) | 87.5 | (37.2 | ) | (26.2 | ) | 572.0 | ||||||||||||||||||||||||||
Other Non-cash
Items
|
(25.6 | ) | 119.7 | (52.7 | ) | (7.3 | ) | 117.0 | (9.9 | ) | (17.0 | ) | (17.6 | ) | (8.2 | ) | (24.5 | ) | (181.7 | ) | ||||||||||||||||||||||||
(=)
Adjusted Net Profit (Loss)
|
247.4 | 815.5 | 330.7 | 208.4 | 133.5 | 84.5 | 134.8 | 94.5 | 16.8 | 91.4 | 228.4 | |||||||||||||||||||||||||||||||||
(±) Decrease
(Increase) in Assets
|
(366.5 | ) | 165.0 | (352.8 | ) | 356.6 | 342.1 | (441.8 | ) | (272.1 | ) | 31.9 | 329.2 | (251.0 | ) | (659.2 | ) | |||||||||||||||||||||||||||
(±) Increase
(Decrease) in Liabilities
|
51.7 | (313.0 | ) | 2.9 | (264.3 | ) | (20.6 | ) | 217.1 | (34.6 | ) | (184.5 | ) | 4.9 | 113.8 | 271.6 | ||||||||||||||||||||||||||||
(=)
Cash Flow from Operating Activities
|
(67.4 | ) | 667.5 | (19.2 | ) | 300.7 | 455.1 | (140.2 | ) | (171.8 | ) | (58.1 | ) | 350.9 | (45.8 | ) | (159.1 | ) | ||||||||||||||||||||||||||
Marketable
Securities
|
(766.6 | ) | 197.2 | (361.8 | ) | 42.0 | (269.6 | ) | 338.7 | 230.9 | (1,326.0 | ) | 394.6 | 400.8 | (884.7 | ) | ||||||||||||||||||||||||||||
Goodwill Paid
in Equity Investment Acquisitions
|
(536.1 | ) | (3.7 | ) | - | - | - | (1.8 | ) | (0.3 | ) | (0.4 | ) | 2.5 | 3.0 | (0.7 | ) | |||||||||||||||||||||||||||
Acquisition of
Investments
|
- | (80.0 | ) | (169.6 | ) | (0.0 | ) | (80.0 | ) | (2.1 | ) | - | (0.0 | ) | (167.5 | ) | (3.8 | ) | (3.8 | ) | ||||||||||||||||||||||||
Acquisition of
Property, Plant and Equipment
|
(208.9 | ) | (683.5 | ) | (1,050.5 | ) | (111.2 | ) | (365.1 | ) | (170.3 | ) | (136.8 | ) | (270.8 | ) | (472.6 | ) | (253.3 | ) | (304.7 | ) | ||||||||||||||||||||||
Additions to
Deferred Charges and Other
|
0.2 | (0.6 | ) | (2.6 | ) | (0.0 | ) | (0.4 | ) | (0.1 | ) | (0.4 | ) | (0.2 | ) | (1.8 | ) | (11.5 | ) | (15.4 | ) | |||||||||||||||||||||||
(=)
Cash Flow from Investment Activities
|
(1,511.4 | ) | (570.7 | ) | (1,584.5 | ) | (69.3 | ) | (715.1 | ) | 164.3 | 93.4 | (1,597.4 | ) | (244.8 | ) | 135.2 | (1,209.3 | ) | |||||||||||||||||||||||||
Additions of
Debt
|
1,878.8 | 854.7 | 198.3 | 852.1 | (47.0 | ) | 1.9 | 8.8 | 213.0 | (25.5 | ) | 3.0 | 315.8 | |||||||||||||||||||||||||||||||
Payments of
Principal and Interest on Debt
|
(1,159.9 | ) | (375.6 | ) | (839.4 | ) | (170.3 | ) | (25.9 | ) | (97.7 | ) | (370.0 | ) | (319.6 | ) | (52.2 | ) | (67.8 | ) | (26.7 | ) | ||||||||||||||||||||||
Capital
Increase
|
885.8 | 6.9 | 1,742.6 | 6.9 | - | - | - | 1,742.6 | - | - | 880.0 | |||||||||||||||||||||||||||||||||
Treasury
Stock
|
- | - | - | - | - | - | - | - | - | - | (4.2 | ) | ||||||||||||||||||||||||||||||||
Capital
Increase at subsidiaries
|
- | - | - | - | - | - | - | - | - | - | 247.7 | |||||||||||||||||||||||||||||||||
Dividends
|
- | - | (75.8 | ) | - | - | - | - | - | (75.8 | ) | - | - | |||||||||||||||||||||||||||||||
Other
|
- | - | - | - | - | 6.8 | (4.4 | ) | - | (2.4 | ) | - | - | |||||||||||||||||||||||||||||||
(=)
Cash Flows from Financing Activities
|
1,604.6 | 486.0 | 1,025.7 | 688.7 | (72.9 | ) | (88.9 | ) | (365.5 | ) | 1,636.0 | (155.9 | ) | (64.8 | ) | 1,412.6 | ||||||||||||||||||||||||||||
(=)
Total Cash Flow
|
25.8 | 582.8 | (578.0 | ) | 920.1 | (333.0 | ) | (64.8 | ) | (443.9 | ) | (19.4 | ) | (49.8 | ) | 24.6 | 44.1 | |||||||||||||||||||||||||||
(+) Cash
& Equivalents, Beginning
|
35.2 | 61.0 | 643.8 | 56.7 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | |||||||||||||||||||||||||||||||||
(=)
Cash & Equivalents, Closing
|
61.0 | 643.8 | 65.8 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | 134.6 | |||||||||||||||||||||||||||||||||
Credit Statistics
(LTM)
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In million of
reais)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Net
Operating Revenues
|
2,477.9 | 3,605.1 | 2,736.2 | 3,670.4 | 3,605.1 | 3,252.7 | 2,872.1 | 2,575.2 | 2,736.2 | 2,784.1 | 2,871.6 | |||||||||||||||||||||||||||||||||
●
Gross
Profit
|
756.6 | 1,123.9 | 349.0 | 1,193.9 | 1,123.9 | 799.5 | 580.9 | 369.9 | 349.0 | 318.9 | 410.5 | |||||||||||||||||||||||||||||||||
●
EBITDA
|
517.7 | 928.0 | 172.9 | 968.1 | 928.0 | 648.5 | 451.8 | 255.1 | 172.9 | 148.1 | 247.5 | |||||||||||||||||||||||||||||||||
●
EBIT
|
377.8 | 631.1 | (168.4 | ) | 782.6 | 631.1 | 296.4 | 20.3 | (193.6 | ) | (168.4 | ) | (225.1 | ) | (163.3 | ) | ||||||||||||||||||||||||||||
●
Net
Financial Expenses
|
245.2 | (158.0 | ) | (284.3 | ) | 261.0 | (158.0 | ) | (494.5 | ) | (611.1 | ) | (616.9 | ) | (284.3 | ) | (220.4 | ) | 464.7 | |||||||||||||||||||||||||
●
Net
Profit
|
(64.6 | ) | 357.3 | (47.8 | ) | 191.7 | 357.3 | 365.6 | 257.0 | 122.2 | (47.8 | ) | (119.6 | ) | (515.5 | ) | ||||||||||||||||||||||||||||
Liquid
Funds
|
831.5 | 1,217.1 | 1,010.1 | 1,280.5 | 1,217.1 | 816.4 | 141.6 | 1,448.2 | 1,010.1 | 633.9 | 1,562.8 | |||||||||||||||||||||||||||||||||
●
Cash and
Cash Equivalents
|
61.0 | 643.8 | 65.8 | 976.8 | 643.8 | 579.0 | 135.1 | 115.7 | 65.8 | 90.4 | 134.6 | |||||||||||||||||||||||||||||||||
●
Marketable
Securities
|
770.5 | 573.3 | 944.2 | 303.7 | 573.3 | 237.4 | 6.5 | 1,332.5 | 944.2 | 543.5 | 1,428.2 | |||||||||||||||||||||||||||||||||
Short-Term
Debt
|
171.3 | 109.0 | 80.5 | 116.4 | 109.0 | 126.3 | 99.6 | 80.2 | 80.5 | 62.9 | 298.6 | |||||||||||||||||||||||||||||||||
●
Loans
and Financings
|
42.9 | 71.1 | 65.7 | 65.8 | 71.1 | 100.7 | 82.6 | 65.1 | 65.7 | 48.8 | 279.3 | |||||||||||||||||||||||||||||||||
●
Pre-Export
Contracts
|
72.6 | 36.7 | 14.8 | 46.8 | 36.7 | 24.4 | 17.0 | 15.1 | 14.8 | 14.0 | 19.3 | |||||||||||||||||||||||||||||||||
●
Promissory
Notes
|
55.8 | 1.3 | - | 3.7 | 1.3 | 1.3 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Long-Term
Debt
|
1,630.0 | 2,324.8 | 1,592.4 | 2,419.3 | 2,324.8 | 2,108.6 | 1,678.5 | 1,663.6 | 1,592.4 | 1,474.9 | 2,101.7 | |||||||||||||||||||||||||||||||||
●
Loans
and Financings
|
1,530.3 | 2,275.3 | 1,592.4 | 2,376.8 | 2,275.3 | 2,092.9 | 1,663.9 | 1,663.6 | 1,592.4 | 1,474.9 | 2,101.7 | |||||||||||||||||||||||||||||||||
●
Pre-Export
Contracts
|
86.9 | 49.5 | - | 42.5 | 49.5 | 15.6 | 14.5 | - | - | - | - | |||||||||||||||||||||||||||||||||
●
Promissory
Notes
|
12.7 | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Total
Debt
|
1,801.3 | 2,433.8 | 1,672.9 | 2,535.7 | 2,433.8 | 2,234.9 | 1,778.0 | 1,743.8 | 1,672.9 | 1,537.7 | 2,400.3 | |||||||||||||||||||||||||||||||||
Net
Debt
|
969.8 | 1,216.7 | 662.9 | 1,255.2 | 1,216.7 | 1,418.5 | 1,636.4 | 295.6 | 662.9 | 903.8 | 837.5 | |||||||||||||||||||||||||||||||||
Current
Assets
|
2,013.4 | 2,224.7 | 2,283.6 | 2,809.6 | 2,224.7 | 2,270.8 | 1,851.1 | 2,989.4 | 2,283.6 | 2,140.0 | 3,740.9 | |||||||||||||||||||||||||||||||||
Current
Liabilities
|
670.0 | 591.7 | 577.7 | 547.5 | 591.7 | 838.1 | 770.5 | 480.5 | 577.7 | 693.4 | 1,215.8 | |||||||||||||||||||||||||||||||||
Shareholders'
Equity
|
1,355.4 | 1,631.0 | 3,325.8 | 1,554.9 | 1,631.0 | 1,644.7 | 1,659.9 | 3,331.1 | 3,325.8 | 3,267.7 | 3,762.8 | |||||||||||||||||||||||||||||||||
Capex
- Property, Plant and Equipment
|
744.8 | 767.9 | 1,222.7 | 906.7 | 767.9 | 854.0 | 868.7 | 1,028.8 | 1,222.7 | 1,313.8 | 1,500.9 | |||||||||||||||||||||||||||||||||
●
Capex -
Operational
|
208.9 | 683.5 | 1,050.5 | 427.4 | 683.5 | 769.5 | 783.5 | 943.0 | 1,050.5 | 1,133.5 | 1,301.4 | |||||||||||||||||||||||||||||||||
EBITDA
Margin
|
20.9 | % | 25.7 | % | 6.3 | % | 26.4 | % | 25.7 | % | 19.9 | % | 15.7 | % | 9.9 | % | 6.3 | % | 5.3 | % | 8.6 | % | ||||||||||||||||||||||
●
Gross
Profit Margin
|
30.5 | % | 31.2 | % | 12.8 | % | 32.5 | % | 31.2 | % | 24.6 | % | 20.2 | % | 14.4 | % | 12.8 | % | 11.5 | % | 14.3 | % | ||||||||||||||||||||||
●
EBIT
Margin
|
15.2 | % | 17.5 | % | -6.2 | % | 21.3 | % | 17.5 | % | 9.1 | % | 0.7 | % | -7.5 | % | -6.2 | % | -8.1 | % | -5.7 | % | ||||||||||||||||||||||
●
Net
Profit Margin
|
-2.6 | % | 9.9 | % | -1.7 | % | 5.2 | % | 9.9 | % | 11.2 | % | 8.9 | % | 4.7 | % | -1.7 | % | -4.3 | % | -18.0 | % | ||||||||||||||||||||||
Net
Debt ÷ Shareholders' Equity
|
||||||||||||||||||||||||||||||||||||||||||||
●
Net Debt
%
|
41.7 | % | 42.7 | % | 16.6 | % | 44.7 | % | 42.7 | % | 46.3 | % | 49.6 | % | 8.2 | % | 16.6 | % | 21.7 | % | 18.2 | % | ||||||||||||||||||||||
●
Shareholders'
Equity %
|
58.3 | % | 57.3 | % | 83.4 | % | 55.3 | % | 57.3 | % | 53.7 | % | 50.4 | % | 91.8 | % | 83.4 | % | 78.3 | % | 81.8 | % | ||||||||||||||||||||||
Long-Term
Payable Debt to Equity Ratio
|
1.2 | x | 1.4 | x | 0.5 | x | 1.6 | x | 1.4 | x | 1.3 | x | 1.0 | x | 0.5 | x | 0.5 | x | 0.5 | x | 0.6 | x | ||||||||||||||||||||||
Liquidity
Ratio (Current Assets ÷ Current Liabilities)
|
3.0 | x | 3.8 | x | 4.0 | x | 5.1 | x | 3.8 | x | 2.7 | x | 2.4 | x | 6.2 | x | 4.0 | x | 3.1 | x | 3.1 | x | ||||||||||||||||||||||
Net
Debt ÷ EBITDA
|
1.9 | x | 1.3 | x | 3.8 | x | 1.3 | x | 1.3 | x | 2.2 | x | 3.6 | x | 1.2 | x | 3.8 | x | 6.1 | x | 3.4 | x | ||||||||||||||||||||||
●
Short-Term Net
Debt ÷ EBITDA
|
0.3 | x | 0.1 | x | 0.5 | x | 0.1 | x | 0.1 | x | 0.2 | x | 0.2 | x | 0.3 | x | 0.5 | x | 0.4 | x | 1.2 | x | ||||||||||||||||||||||
Net
Debt ÷ (EBITDA - Capex)
|
-4.3x | 7.6 | x | -0.6x | 20.4 | x | 7.6 | x | -6.9x | -3.9x | -0.4x | -0.6x | -0.8x | -0.7x | ||||||||||||||||||||||||||||||
●
Net Debt
÷ (EBITDA - Operational Capex)
|
3.1 | x | 5.0 | x | -0.8x | 2.3 | x | 5.0 | x | -11.7x | -4.9x | -0.4x | -0.8x | -0.9x | -0.8x | |||||||||||||||||||||||||||||
Interest
Cover (EBITDA ÷ Net Financial Exp.)
|
2.1 | x | -5.9x | -0.6x | 3.7 | x | -5.9x | -1.3x | -0.7x | -0.4x | -0.6x | -0.7x | 0.5 | x | ||||||||||||||||||||||||||||||
●
Interest
Cover (EBITDA - Op.Capes)÷Net Fin.)
|
1.3 | x | -1.5x | 3.1 | x | 2.1 | x | -1.5x | 0.2 | x | 0.5 | x | 1.1 | x | 3.1 | x | 4.5 | x | -2.3x | |||||||||||||||||||||||||
Avg.
Debt Cost (Net.Fin.Exp. ÷ Net Debt)
|
25.3 | % | -13.0 | % | -42.9 | % | 20.8 | % | -13.0 | % | -34.9 | % | -37.3 | % | -208.7 | % | -42.9 | % | -24.4 | % | 55.5 | % |
H.
Financial Statements of Cosan Ltd – US
GAAP
|
Income
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of U.S.
dollars)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Net
sales
|
1,096.6 | 1,679.1 | 1,491.2 | 463.2 | 328.1 | 301.3 | 328.0 | 376.7 | 485.3 | 394.0 | 383.8 | |||||||||||||||||||||||||||||||||
(-) Cost of
goods sold
|
(796.3 | ) | (1,191.3 | ) | (1,345.6 | ) | (338.7 | ) | (258.7 | ) | (288.2 | ) | (295.5 | ) | (343.5 | ) | (418.4 | ) | (398.9 | ) | (320.2 | ) | ||||||||||||||||||||||
(=)
Gross profit
|
300.3 | 487.8 | 145.6 | 124.4 | 69.4 | 13.1 | 32.5 | 33.2 | 66.9 | (4.9 | ) | 63.6 | ||||||||||||||||||||||||||||||||
(-) Selling
expenses
|
(97.8 | ) | (133.8 | ) | (168.6 | ) | (35.5 | ) | (35.2 | ) | (32.0 | ) | (50.2 | ) | (41.6 | ) | (44.9 | ) | (53.0 | ) | (47.9 | ) | ||||||||||||||||||||||
(-) General
and administrative expenses
|
(72.0 | ) | (121.1 | ) | (115.1 | ) | (26.5 | ) | (48.6 | ) | (30.1 | ) | (24.4 | ) | (30.2 | ) | (30.5 | ) | (36.3 | ) | (36.1 | ) | ||||||||||||||||||||||
(=)
Operating income (loss)
|
130.5 | 232.9 | (138.1 | ) | 62.5 | (14.3 | ) | (49.0 | ) | (42.0 | ) | (38.6 | ) | (8.5 | ) | (94.2 | ) | (20.3 | ) | |||||||||||||||||||||||||
Operating
margin
|
11.9 | % | 13.9 | % | -9.3 | % | 13.5 | % | -4.4 | % | -16.3 | % | -12.8 | % | -10.2 | % | -1.8 | % | -23.9 | % | -5.3 | % | ||||||||||||||||||||||
(-) Other
income (expense):
|
||||||||||||||||||||||||||||||||||||||||||||
Financial
|
(226.6 | ) | 289.4 | 116.8 | (13.4 | ) | 213.4 | 53.7 | 75.6 | (131.8 | ) | 119.3 | 26.5 | (228.4 | ) | |||||||||||||||||||||||||||||
Other
|
(5.5 | ) | 16.3 | (3.7 | ) | 0.5 | (2.6 | ) | (0.5 | ) | 0.1 | (1.4 | ) | (1.8 | ) | (3.5 | ) | (8.1 | ) | |||||||||||||||||||||||||
(=)
Income (loss) before income taxes, equity in income of
affiliates and minority interest
|
(101.6 | ) | 538.5 | (25.0 | ) | 49.6 | 196.5 | 4.2 | 33.7 | (171.9 | ) | 109.0 | (71.2 | ) | (256.8 | ) | ||||||||||||||||||||||||||||
(-) Income
taxes expense (benefit)
|
29.7 | (188.8 | ) | 19.8 | (16.6 | ) | (72.2 | ) | (1.7 | ) | (8.1 | ) | 57.5 | (27.9 | ) | 23.2 | 92.9 | |||||||||||||||||||||||||||
(=)
Income (loss) before equity in income of affiliates and minority
interest
|
(71.8 | ) | 349.7 | (5.2 | ) | 33.1 | 124.2 | 2.5 | 25.6 | (114.3 | ) | 81.1 | (48.0 | ) | (164.0 | ) | ||||||||||||||||||||||||||||
(±) Equity
in income of affiliates
|
1.6 | (0.0 | ) | (0.2 | ) | 0.1 | (0.2 | ) | (0.2 | ) | (1.8 | ) | (0.5 | ) | 2.3 | 0.1 | 0.5 | |||||||||||||||||||||||||||
(±) Minority
interest in net (income) loss of subsidiaries
|
33.1 | (173.0 | ) | 22.0 | (16.4 | ) | (61.4 | ) | (1.0 | ) | (6.1 | ) | 55.2 | (26.1 | ) | 18.6 | 49.4 | |||||||||||||||||||||||||||
(=)
Net income (loss)
|
(37.1 | ) | 176.7 | 16.6 | 16.7 | 62.6 | 1.2 | 17.7 | (59.7 | ) | 57.3 | (29.3 | ) | (114.1 | ) | |||||||||||||||||||||||||||||
Margin
|
-3.4 | % | 10.5 | % | 1.1 | % | 3.6 | % | 19.1 | % | 0.4 | % | 5.4 | % | -15.8 | % | 11.8 | % | -7.4 | % | -29.7 | % | ||||||||||||||||||||||
●
EBITDA
|
223.6 | 436.5 | 94.3 | 76.9 | 73.4 | 25.7 | 41.9 | 11.8 | 15.0 | 14.6 | 118.5 | |||||||||||||||||||||||||||||||||
Margin
|
20.4 | % | 26.0 | % | 6.3 | % | 16.6 | % | 22.4 | % | 8.5 | % | 12.8 | % | 3.1 | % | 3.1 | % | 3.7 | % | 30.9 | % | ||||||||||||||||||||||
●
EBIT
|
125.0 | 249.2 | (141.8 | ) | 63.0 | (17.0 | ) | (49.5 | ) | (41.9 | ) | (40.0 | ) | (10.3 | ) | (97.7 | ) | (28.4 | ) | |||||||||||||||||||||||||
Margin
|
11.4 | % | 14.8 | % | -9.5 | % | 13.6 | % | -5.2 | % | -16.4 | % | -12.8 | % | -10.6 | % | -2.1 | % | -24.8 | % | -7.4 | % | ||||||||||||||||||||||
●
Depreciation
and amortization
|
98.6 | 187.4 | 236.1 | 13.9 | 90.3 | 75.2 | 83.8 | 51.8 | 25.3 | 112.3 | 147.0 | |||||||||||||||||||||||||||||||||
Cash Flow
Statement
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of U.S.
dollars)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
●
Cash flow from operating
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Net income
(loss) for the year/quarter
|
(37.1 | ) | 176.7 | 16.6 | 16.7 | 62.6 | 1.2 | 17.7 | (59.7 | ) | 57.3 | (29.3 | ) | (114.1 | ) | |||||||||||||||||||||||||||||
Adjustments to
reconcile net income (loss) to cash provided by operating
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Depreciation
and amortization
|
98.6 | 187.4 | 236.1 | 13.9 | 90.3 | 75.2 | 83.8 | 51.8 | 25.3 | 112.3 | 147.0 | |||||||||||||||||||||||||||||||||
Deferred
income and social contribution taxes
|
(53.0 | ) | 150.2 | (52.4 | ) | (14.2 | ) | 76.3 | (8.6 | ) | (5.9 | ) | (51.9 | ) | 14.0 | (31.6 | ) | (84.4 | ) | |||||||||||||||||||||||||
Interest,
monetary and exchange variation
|
24.3 | 116.3 | (43.7 | ) | (4.6 | ) | 24.7 | (53.1 | ) | (44.5 | ) | 56.5 | (2.5 | ) | (14.5 | ) | 327.5 | |||||||||||||||||||||||||||
Minority
interest in net income of subsidiaries
|
(33.1 | ) | 173.0 | (22.0 | ) | 16.4 | 61.4 | 1.0 | 6.1 | (55.2 | ) | 26.1 | (18.6 | ) | (49.4 | ) | ||||||||||||||||||||||||||||
Others
|
15.9 | (176.8 | ) | 15.2 | 0.5 | (164.1 | ) | 5.8 | 6.9 | (6.2 | ) | 8.7 | 9.2 | 6.0 | ||||||||||||||||||||||||||||||
15.6 | 626.8 | 149.8 | 28.7 | 151.2 | 21.5 | 63.9 | (64.6 | ) | 128.9 | 27.5 | 232.6 | |||||||||||||||||||||||||||||||||
Decrease/increase
in operating assets and liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||
Trade accounts
receivable, net
|
(35.4 | ) | 48.2 | (57.1 | ) | 29.9 | 47.7 | (16.7 | ) | 15.4 | 6.4 | (62.2 | ) | 63.9 | (63.7 | ) | ||||||||||||||||||||||||||||
Inventories
|
30.9 | (54.1 | ) | (31.7 | ) | 168.7 | 165.6 | (147.8 | ) | (240.5 | ) | 103.1 | 253.5 | (214.0 | ) | (197.2 | ) | |||||||||||||||||||||||||||
Advances to
suppliers
|
(10.7 | ) | (38.7 | ) | (8.4 | ) | (4.7 | ) | (14.6 | ) | (50.9 | ) | (1.3 | ) | 35.2 | 8.6 | (16.8 | ) | (12.1 | ) | ||||||||||||||||||||||||
Trade accounts
payable
|
28.7 | (43.2 | ) | 33.7 | (70.4 | ) | (41.1 | ) | 106.0 | 40.8 | (100.9 | ) | (12.2 | ) | 90.1 | 56.4 | ||||||||||||||||||||||||||||
Derivative
financial instruments
|
83.5 | (155.0 | ) | 90.4 | 15.1 | (38.7 | ) | 33.5 | 9.0 | 127.4 | (79.6 | ) | 11.3 | (4.8 | ) | |||||||||||||||||||||||||||||
Taxes
payable
|
(37.6 | ) | (36.6 | ) | (19.6 | ) | 25.4 | (9.5 | ) | (0.8 | ) | (15.4 | ) | 13.7 | (17.1 | ) | (7.9 | ) | (5.0 | ) | ||||||||||||||||||||||||
Minority
interest
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other assets
and liabilities, net
|
11.0 | (63.4 | ) | (99.4 | ) | (29.0 | ) | 8.2 | 11.1 | (25.6 | ) | (107.9 | ) | 23.0 | 16.2 | (23.6 | ) | |||||||||||||||||||||||||||
70.4 | (342.8 | ) | (92.2 | ) | 135.0 | 117.6 | (65.6 | ) | (217.7 | ) | 77.1 | 114.0 | (57.1 | ) | (249.9 | ) | ||||||||||||||||||||||||||||
(=)
Net cash provided by operating actitivities
|
86.0 | 284.0 | 57.6 | 163.7 | 268.7 | (44.0 | ) | (153.8 | ) | 12.5 | 242.9 | (29.6 | ) | (17.3 | ) | |||||||||||||||||||||||||||||
● Cash flow from investing
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Restricted
cash
|
(62.6 | ) | 47.0 | (25.9 | ) | (0.3 | ) | (12.6 | ) | (30.0 | ) | 48.9 | (33.6 | ) | (11.1 | ) | 0.1 | 37.4 | ||||||||||||||||||||||||||
Marketable
securities
|
(366.9 | ) | 97.0 | (671.0 | ) | 23.1 | (124.4 | ) | 180.8 | (972.6 | ) | (71.0 | ) | 191.8 | (202.4 | ) | (257.7 | ) | ||||||||||||||||||||||||||
Acquisition of
property, plant and equipment
|
(135.2 | ) | (356.2 | ) | (642.9 | ) | (62.5 | ) | (242.6 | ) | (94.4 | ) | (90.5 | ) | (157.3 | ) | (300.8 | ) | (169.3 | ) | (146.7 | ) | ||||||||||||||||||||||
Acquisitions,
net of cash acquired
|
(260.9 | ) | (39.4 | ) | (102.0 | ) | 0.1 | (39.4 | ) | (1.1 | ) | 1.1 | (1.2 | ) | (100.8 | ) | 0.8 | (18.3 | ) | |||||||||||||||||||||||||
Purchase of
goodwill and intangible assets
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other
|
- | - | - | - | - | - | (1.2 | ) | 1.2 | - | - | - | ||||||||||||||||||||||||||||||||
(=)
Net cash used in investing actitivities
|
(825.5 | ) | (251.6 | ) | (1,441.7 | ) | (39.6 | ) | (419.0 | ) | 55.3 | (1,014.3 | ) | (261.9 | ) | (220.8 | ) | (370.8 | ) | (385.3 | ) | |||||||||||||||||||||||
●
Cash flow from financing
activities:
|
||||||||||||||||||||||||||||||||||||||||||||
Proceeds from
issuance of common stock
|
383.1 | 3.2 | 1,118.4 | 3.2 | - | - | 1,118.4 | - | - | - | 196.2 | |||||||||||||||||||||||||||||||||
Capital
increase on subsidiary from minority interest
|
- | - | 324.4 | - | - | - | - | 312.7 | 11.7 | - | - | |||||||||||||||||||||||||||||||||
Dividends
Paid
|
- | - | (44.9 | ) | 423.8 | (423.8 | ) | - | - | - | (44.9 | ) | - | - | ||||||||||||||||||||||||||||||
Additions of
long-term debts
|
899.3 | 424.6 | 117.5 | (25.3 | ) | 424.6 | - | - | - | 117.5 | - | 174.5 | ||||||||||||||||||||||||||||||||
Payments of
long-term debts
|
(556.5 | ) | (205.0 | ) | (492.1 | ) | (86.9 | ) | (22.4 | ) | (47.1 | ) | (213.3 | ) | (60.4 | ) | (171.2 | ) | (39.8 | ) | (26.2 | ) | ||||||||||||||||||||||
Other
|
- | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
(=)
Net cash provided by financing actitivities
|
725.9 | 222.8 | 1,023.3 | 314.8 | (21.6 | ) | (47.1 | ) | 905.1 | 252.3 | (86.9 | ) | (39.8 | ) | 344.6 | |||||||||||||||||||||||||||||
Effect of
exchange rate changes on cash and cash equivalents
|
29.6 | 32.1 | 112.6 | (5.6 | ) | 28.7 | 27.0 | 32.2 | 3.6 | 49.8 | 458.1 | 35.5 | ||||||||||||||||||||||||||||||||
(=)
Net increase (decrease) in cash and cash equivalents
|
16.1 | 287.3 | (248.2 | ) | 433.3 | (143.2 | ) | (8.8 | ) | (230.7 | ) | 6.4 | (15.0 | ) | 17.9 | (22.6 | ) | |||||||||||||||||||||||||||
(+) Cash and
cash equivalents at beginning of year
|
13.2 | 29.2 | 316.5 | 26.5 | 459.7 | 316.5 | 307.7 | 77.0 | 83.4 | 68.4 | 86.3 | |||||||||||||||||||||||||||||||||
(=)
Cash and cash equivalents at end of year
|
29.2 | 316.5 | 68.4 | 459.7 | 316.5 | 307.7 | 77.0 | 83.4 | 68.4 | 86.3 | 63.7 |
Balance
Sheet
|
Apr'06
|
Apr'07
|
Apr'08
|
Jan'07
|
Apr'07
|
Jul'07
|
Oct'07
|
Jan'08
|
Apr'08
|
Jul'08
|
Oct'08
|
|||||||||||||||||||||||||||||||||
(In millions of U.S.
dollars)
|
FY'06
|
FY'07
|
FY'08
|
3Q'07
|
4Q'07
|
1Q'08
|
2Q'08
|
3Q'08
|
4Q'08
|
1Q'09
|
2Q'09
|
|||||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||||||||||||||||||||||||
Cash and cash
equivalents
|
29.2 | 316.5 | 68.4 | 459.7 | 316.5 | 307.7 | 77.0 | 83.4 | 68.4 | 86.3 | 63.7 | |||||||||||||||||||||||||||||||||
Restricted
cash
|
63.0 | 17.7 | 47.2 | 2.4 | 17.7 | 49.2 | 1.8 | 35.2 | 47.2 | 50.7 | 0.1 | |||||||||||||||||||||||||||||||||
Marketable
securities
|
368.8 | 281.9 | 1,014.5 | 142.9 | 281.9 | 124.5 | 1,131.6 | 1,188.5 | 1,014.5 | 804.2 | 905.8 | |||||||||||||||||||||||||||||||||
Derivative
financial instruments
|
16.7 | 65.2 | 31.5 | 99.8 | 65.2 | 44.1 | 48.4 | 12.7 | 31.5 | 65.3 | 86.8 | |||||||||||||||||||||||||||||||||
Trade accounts
receivable, net
|
101.8 | 55.2 | 126.9 | 99.8 | 55.2 | 74.6 | 61.4 | 59.8 | 126.9 | 73.0 | 101.9 | |||||||||||||||||||||||||||||||||
Inventories
|
187.2 | 247.5 | 337.7 | 403.8 | 247.5 | 415.9 | 677.0 | 571.2 | 337.7 | 577.6 | 680.5 | |||||||||||||||||||||||||||||||||
Advances to
suppliers
|
63.5 | 104.0 | 133.7 | 86.6 | 104.0 | 163.5 | 173.4 | 137.1 | 133.7 | 160.8 | 135.5 | |||||||||||||||||||||||||||||||||
Deferred
income taxes
|
74.8 | - | - | 61.5 | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other current
assets
|
55.4 | 51.6 | 103.2 | (6.5 | ) | 51.6 | 49.4 | 42.2 | 44.5 | 103.2 | 99.7 | 133.7 | ||||||||||||||||||||||||||||||||
960.3 | 1,139.5 | 1,863.0 | 1,350.0 | 1,139.5 | 1,228.9 | 2,212.8 | 2,132.6 | 1,863.0 | 1,917.6 | 2,108.0 | ||||||||||||||||||||||||||||||||||
Noncurrent
assets:
|
||||||||||||||||||||||||||||||||||||||||||||
Property,
plant and equipment, net
|
1,008.1 | 1,194.1 | 2,018.1 | 1,009.2 | 1,194.1 | 1,311.0 | 1,405.1 | 1,514.3 | 2,018.1 | 2,217.3 | 1,738.6 | |||||||||||||||||||||||||||||||||
Goodwill
|
497.9 | 491.9 | 772.6 | 475.3 | 491.9 | 527.7 | 562.7 | 626.3 | 772.6 | 823.4 | 623.4 | |||||||||||||||||||||||||||||||||
Intangible
assets, net
|
98.9 | 94.0 | 106.1 | 91.8 | 94.0 | 99.7 | 105.2 | 102.0 | 106.1 | 111.8 | 81.8 | |||||||||||||||||||||||||||||||||
Accounts
Receivable from Federal Government
|
- | 156.5 | 202.8 | - | 156.5 | 169.6 | 190.0 | 192.7 | 202.8 | 218.4 | 161.8 | |||||||||||||||||||||||||||||||||
Other
non-current assets
|
126.6 | 177.5 | 306.4 | 130.4 | 177.5 | 192.3 | 209.0 | 237.9 | 306.4 | 345.3 | 300.4 | |||||||||||||||||||||||||||||||||
1,731.4 | 2,113.9 | 3,406.1 | 1,706.7 | 2,113.9 | 2,300.3 | 2,472.0 | 2,673.3 | 3,406.1 | 3,716.3 | 2,905.9 | ||||||||||||||||||||||||||||||||||
(=)
Total assets
|
2,691.8 | 3,253.4 | 5,269.1 | 3,056.7 | 3,253.4 | 3,529.1 | 4,684.8 | 4,805.9 | 5,269.1 | 5,634.0 | 5,014.0 | |||||||||||||||||||||||||||||||||
Liabilities
and shareholders' equity
|
||||||||||||||||||||||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||
Trade accounts
payable
|
96.6 | 55.9 | 114.4 | 92.8 | 55.9 | 166.6 | 212.0 | 110.5 | 114.4 | 212.0 | 236.8 | |||||||||||||||||||||||||||||||||
Advances from
customers
|
37.9 | 24.3 | 15.6 | 39.1 | 24.3 | 21.9 | 16.4 | 17.0 | 15.6 | 15.3 | 15.2 | |||||||||||||||||||||||||||||||||
Taxes
payable
|
40.0 | 57.5 | 62.9 | 49.0 | 57.5 | 64.8 | 51.7 | 47.1 | 62.9 | 67.4 | 47.4 | |||||||||||||||||||||||||||||||||
Salaries
payable
|
23.8 | 31.1 | 47.8 | 17.7 | 31.1 | 47.9 | 63.8 | 29.2 | 47.8 | 75.8 | 67.5 | |||||||||||||||||||||||||||||||||
Current
portion of long-term debt
|
46.6 | 36.1 | 38.2 | 31.9 | 36.1 | 51.8 | 44.0 | 27.9 | 38.2 | 33.2 | 134.2 | |||||||||||||||||||||||||||||||||
Derivative
financial instruments
|
133.4 | 9.8 | 55.0 | 15.5 | 9.8 | 15.0 | 26.8 | 102.3 | 55.0 | 102.1 | 112.1 | |||||||||||||||||||||||||||||||||
Dividends
payable
|
- | 37.3 | - | - | 37.3 | 40.4 | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred
income taxes
|
- | - | - | - | - | - | - | - | - | - | 10.3 | |||||||||||||||||||||||||||||||||
Other
liabilities
|
18.9 | 22.2 | 25.2 | 15.6 | 22.2 | 10.2 | 7.3 | 7.8 | 25.2 | 14.1 | 14.8 | |||||||||||||||||||||||||||||||||
397.1 | 274.2 | 359.1 | 261.7 | 274.2 | 418.5 | 422.0 | 342.0 | 359.1 | 519.8 | 638.3 | ||||||||||||||||||||||||||||||||||
Long-term
liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||
Long-term
debt
|
941.7 | 1,342.5 | 1,249.3 | 1,330.4 | 1,342.5 | 1,357.2 | 1,226.2 | 1,226.5 | 1,249.3 | 1,291.4 | 1,257.4 | |||||||||||||||||||||||||||||||||
Estimated
liability for legal proceedings and labor claims
|
462.2 | 379.2 | 494.1 | 357.0 | 379.2 | 417.8 | 459.8 | 442.0 | 494.1 | 545.0 | 414.1 | |||||||||||||||||||||||||||||||||
Taxes
payable
|
152.4 | 106.9 | 170.4 | 105.1 | 106.9 | 115.7 | 130.5 | 127.7 | 170.4 | 181.9 | 133.4 | |||||||||||||||||||||||||||||||||
Advances from
customers
|
41.6 | 24.3 | - | 20.0 | 24.3 | 8.3 | 8.3 | - | - | - | - | |||||||||||||||||||||||||||||||||
Deferred
income taxes
|
81.6 | 141.6 | 101.8 | 143.7 | 141.6 | 142.2 | 144.7 | 85.9 | 101.8 | 83.6 | - | |||||||||||||||||||||||||||||||||
Other
long-term liabilities
|
33.1 | 47.5 | 101.7 | 28.4 | 47.5 | 50.3 | 51.0 | 72.8 | 101.7 | 103.3 | 107.7 | |||||||||||||||||||||||||||||||||
1,712.7 | 2,042.0 | 2,117.4 | 1,984.6 | 2,042.0 | 2,091.5 | 2,020.4 | 1,954.9 | 2,117.4 | 2,205.3 | 1,912.7 | ||||||||||||||||||||||||||||||||||
Minority
interest in consolidated subsidiaries
|
287.6 | 463.6 | 796.8 | 400.6 | 463.6 | 504.0 | 550.0 | 873.4 | 796.8 | 839.7 | 715.3 | |||||||||||||||||||||||||||||||||
Shareholders'
equity:
|
||||||||||||||||||||||||||||||||||||||||||||
Common
stock
|
1.0 | 1.0 | 2.3 | 1.0 | 1.0 | 1.0 | 2.1 | 2.1 | 2.3 | 2.3 | 2.7 | |||||||||||||||||||||||||||||||||
Additional
paid-in capital
|
349.2 | 354.0 | 1,723.1 | 408.8 | 354.0 | 514.2 | 1,473.3 | 1,471.0 | 1,723.1 | 1,724.6 | 1,920.9 | |||||||||||||||||||||||||||||||||
Accumulated
other comprehensive income
|
19.8 | 36.7 | 171.8 | - | 36.7 | - | 116.0 | 121.3 | 171.8 | 273.1 | (130.9 | ) | ||||||||||||||||||||||||||||||||
Retained
earnings (losses)
|
(75.8 | ) | 81.9 | 98.5 | - | 81.9 | - | 100.9 | 41.2 | 98.5 | 69.2 | (44.9 | ) | |||||||||||||||||||||||||||||||
Total
shareholders' equity
|
294.2 | 473.6 | 1,995.7 | 409.8 | 473.6 | 515.2 | 1,692.2 | 1,635.6 | 1,995.7 | 2,069.1 | 1,747.8 | |||||||||||||||||||||||||||||||||
(=)
Total liabilities and shareholders' equity
|
2,691.8 | 3,253.4 | 5,269.1 | 3,056.7 | 3,253.4 | 3,529.1 | 4,684.8 | 4,805.9 | 5,269.1 | 5,634.0 | 5,014.0 |
Description
|
Cosan S.A. as audited | Santa Luiza | Cosan S.A. as internal books |
GAAP
Adjust-
ments
|
Cosan S.A. | Cosan S.A. | Consolid. into Cosan Ltd. | Cosan Ltd as audited | |||||||||||||||||||||||||||
Currency
|
R$'MM | R$'MM | R$'MM | R$'MM | R$'MM | US$'MM | US$'MM | US$'MM | |||||||||||||||||||||||||||
GAAP
|
BR GAAP | BR GAAP | BR GAAP | US GAAP | US GAAP | US GAAP | US GAAP | ||||||||||||||||||||||||||||
Net
Sales
|
715.1 | (0.3 | ) | 714.8 | 0.7 |
(b)
|
715.5 | 383.8 | (0.0 | ) | 383.8 | ||||||||||||||||||||||||
Cost of goods
sold
|
(547.1 | ) | 0.2 | (546.9 | ) | (49.1 | ) |
(c)
|
(596.0 | ) | (319.7 | ) | (0.4 | ) |
(j)
|
(320.2 | ) | ||||||||||||||||||
Gross
profit
|
167.9 | (0.1 | ) | 167.9 | (48.4 | ) | 119.5 | 64.1 | (0.4 | ) | 63.6 | ||||||||||||||||||||||||
Selling
expenses
|
(88.6 | ) | - | (88.6 | ) | (0.7 | ) |
(b)
|
(89.3 | ) | (47.9 | ) | 0.0 | (47.9 | ) | ||||||||||||||||||||
General and
administrative expenses
|
(60.3 | ) |
(a)
|
1.1 | (59.2 | ) | (4.7 | ) |
(d)
|
(63.9 | ) | (34.3 | ) | (1.8 | ) |
(k)
|
(36.1 | ) | |||||||||||||||||
Operating
income
|
19.1 | 1.0 | 20.0 | (53.8 | ) | (33.8 | ) | (18.1 | ) | (2.2 | ) | (20.3 | ) | ||||||||||||||||||||||
Other income
(expenses):
Financial
income (expenses), net
|
(540.8 | ) | 0.4 | (540.3 | ) | 109.9 |
(e)
|
(430.4 | ) | (230.9 | ) | 2.5 |
(l)
|
(228.4 | ) | ||||||||||||||||||||
Goodwill
amortization
|
(40.4 | ) | 0.1 | (40.3 | ) | 40.3 |
(f)
|
- | - | - | - | ||||||||||||||||||||||||
Other
|
(36.3 | ) | (0.9 | ) | (37.2 | ) | 22.1 |
(n)
|
(15.1 | ) | (8.1 | ) | (0.0 | ) | (8.1 | ) | |||||||||||||||||||
Income (loss)
before income taxes, equity in income of
affiliates and minority interest
|
(598.4 | ) | 0.6 | (597.8 | ) | 118.5 | (479.3 | ) | (257.1 | ) | 0.3 | (256.8 | ) | ||||||||||||||||||||||
Income taxes
(expense) benefit
|
210.0 | (0.3 | ) | 209.7 | (36.6 | ) |
(g)
|
173.1 | 92.9 | - | 92.9 | ||||||||||||||||||||||||
Income (loss)
before equity in income of affiliates and
minority interest
|
(388.4 | ) | 0.3 | (388.1 | ) | 81.9 | (306.2 | ) | (164.3 | ) | 0.3 | (164.0 | ) | ||||||||||||||||||||||
Equity in
income of affiliates
|
1.2 | (0.3 | ) | 0.9 | - | 0.9 | 0.5 | 0.0 | 0.5 | ||||||||||||||||||||||||||
Minority
interest in net income of subsidiaries
|
6.5 | - | 6.5 | (9.9 | ) |
(h)
|
(3.4 | ) | (1.8 | ) | 51.3 |
(m)
|
49.4 | ||||||||||||||||||||||
Net income
(loss)
|
(380.7 | ) | - | (380.7 | ) | 71.9 | (308.7 | ) | (165.6 | ) | 51.5 | (114.1 | ) |
|
(a)
|
Includes
G&A, Management fees and Nonoperating
results
|
|
(b)
|
Reclassification
for services between Cosan Port. and Cosan
S.A.
|
|
(c)
|
Mainly
depreciation on 'purchasing price allocation' in past acquisitions, but
also depreciation in capitalized interests and reversion of depreciation
in revaluated portion of
P,P&E
|
|
(d)
|
Mainly effect
of stock option for executives accounting as
expenses
|
|
(e)
|
Mainly effect
of mark-to market on derivatives, but also effect of interest
capitalization on P,P&E under construction, leasing recognition and
'purchasing price allocation' related to PESA/CTN
debt
|
|
(f)
|
No goodwill
amortization in US GAAP
|
|
(g)
|
Recalculation
of income taxes on GAAP
differences
|
|
(h)
|
Mainly related
to minority participation on Expenses with placement of shares at
Radar
|
|
(i)
|
Conversion
rate calculated line by line on a quarterly basis; quarterly average rate
is the arithmetic average of daily PTAX 800 rate; weekends and holidays
using the last business day
quotation
|
|
(j)
|
Depreciation
on 'purchasing price allocation' in the capital increase from Ltd. on S.A.
last Dec/Jan
|
|
(k)
|
Cosan Ltd. own
G&A expenses (management fees and lawyers,
mainly)
|
|
(l)
|
Mainly cash
interest gains in Cosan Ltd
|
|
(m)
|
Bovespa
floating stake of Cosan S.A. participation on Cosan S.A. net
loss
|
|
(n)
|
Mainly related
to Expenses with placement of shares charged directly to capital increase
in US GAAP
|
Name
of subsidiary
|
CNPJ
|
Classification
|
Ownership
interest in investee
%
|
Net
worth of investor
%
|
Type
of company
|
Number
of shares held in current quarter (thousand)
|
Number
of shares held in prior quarter (thousand)
|
|||||||
Usina da Barra
S.A. Açúcar e Álcool
|
08.070.508/0001-78
|
Unlisted
subsidiary
|
89.91
|
65.11
|
Commercial,
industrial and
others
|
1,366,039
|
717,538
|
|||||||
1.
|
Shareholding
structure at October 31, 2008 (Not reviewed by our independent
auditors)
|
Cosan
S.A. Indústria e Comércio
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Cosan
Limited
|
226.165.734 | 69,05 | - | - | 226.165.734 | 69,05 | ||||||||||||||||||
Cosan Limited
(temporary investment)
|
1.046.000 | 0,32 | - | - | 1.046.000 | 0,32 | ||||||||||||||||||
Credit Suisse
Hedging-Griffo Corretora de Valores S.A. (*)
|
28.445.993 | 8,68 | - | - | 28.445.993 | 8,68 | ||||||||||||||||||
Others
|
71.890.305 | 21,95 | - | - | 71.890.305 | 21,95 | ||||||||||||||||||
327.548.032 | 100,00 | - | - | 327.548.032 | 100,00 |
Cosan
Limited
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Queluz
Holdings Limited
|
77.432.877 | 28,61 | - | - | 77.432.877 | 28,61 | ||||||||||||||||||
Fundos Gávea
(*)
|
39.445.393 | 14,57 | - | - | 39.445.393 | 14,57 | ||||||||||||||||||
Usina Costa
Pinto S.A. Açúcar e Álcool
|
30.010.278 | 11,09 | - | - | 30.010.278 | 11,09 | ||||||||||||||||||
Janus Capital
Group (1)
|
17.141.850 | 6,33 | - | - | 17.141.850 | 6,33 | ||||||||||||||||||
FMR LLC
(1)
|
15.792.300 | 5,83 | - | - | 15.792.300 | 5,83 | ||||||||||||||||||
Wellington
Management Company (1)
|
13.938.700 | 5,15 | - | - | 13.938.700 | 5,15 | ||||||||||||||||||
Others
|
76.925.987 | 28,42 | - | - | 76.925.987 | 28,42 | ||||||||||||||||||
270.687.385 | 100,00 | - | - | 270.687.385 | 100,00 |
Queluz
Holdings Limited
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Queluz
Holdings II GmbH
|
10,000 | 100.00 | - | - | 10,000 | 100.00 | ||||||||||||||||||
10,000 | 100.00 | - | - | 10,000 | 100.00 |
Queluz
Holdings II GmbH
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Queluz S.A.
Adm. e Participações
|
10,000 | 100.00 | - | - | 10,000 | 100.00 | ||||||||||||||||||
10,000 | 100.00 | - | - | 10,000 | 100.00 |
Queluz
S.A. Adm. e Participações
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Aguassanta
Participações S.A.
|
66,321,766 | 100.00 | - | - | 66,321,766 | 100.00 | ||||||||||||||||||
66,321,766 | 100.00 | - | - | 66,321,766 | 100.00 |
1.
|
Shareholding structure at
October 31, 2008 (Not reviewed by our independent auditors)
(Continued)
|
Aguassanta
Participações S.A.
|
||||||||||||||||||||||||
Shareholding
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Usina Bom
Jesus S.A. Açúcar e Álcool
|
1,261,352 | 75.29 | - | - | 1,261,352 | 75.29 | ||||||||||||||||||
Flama
Empreend. e Part. S.A.
|
88,094 | 5.26 | - | - | 88,094 | 5.26 | ||||||||||||||||||
Nova Celisa
S.A.
|
88,081 | 5.26 | - | - | 88,081 | 5.26 | ||||||||||||||||||
Others
|
237,781 | 14.19 | - | - | 237,781 | 14.19 | ||||||||||||||||||
1,675,308 | 100.00 | - | - | 1,675,308 | 100.00 |
Usina
Bom Jesus S.A. Açúcar e Álcool
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Nova Celisa
S.A.
|
3,146,361,418 | 66.94 | - | - | 3,146,361,418 | 66.94 | ||||||||||||||||||
R.A. Coury
Agrícola e Participações Ltda.
|
532,274,315 | 11.32 | - | - | 532,274,315 | 11.32 | ||||||||||||||||||
Others
|
1,021,364,267 | 21.74 | - | - | 1,021,364,267 | 21.74 | ||||||||||||||||||
4,700,000,000 | 100.00 | - | - | 4,700,000,000 | 100.00 |
Nova
Celisa S.A.
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Rio das Pedras
Participações S.A.
|
918,000 | 51.00 | 882,000 | 50.00 | 1,800,000 | 50.51 | ||||||||||||||||||
Isa
Participações Ltda.
|
882,000 | 49.00 | 882,000 | 50.00 | 1,764,000 | 49.49 | ||||||||||||||||||
1,800,000 | 100.00 | 1,764,000 | 100.00 | 3,564,000 | 100.00 |
Rio
das Pedras Participações S.A.
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Rubens Ometto
Silveira Mello
|
1,349,877,943 | 99.91 | - | - | 1,349,877,943 | 99.91 | ||||||||||||||||||
Mônica Mellão
Silveira Mello
|
1,196,078 | 0.09 | - | - | 1,196,078 | 0.09 | ||||||||||||||||||
1,351,074,021 | 100.00 | - | - | 1,351,074,021 | 100.00 |
Isa
Participações Ltda.
|
||||||||||||||||||||||||
Shareholder
|
Units
of interest
|
%
|
Units
of interest
|
%
|
Total
units of interest
|
%
|
||||||||||||||||||
Isaltina
Ometto Silveira Mello
|
999 | 99.90 | - | - | 999 | 99.90 | ||||||||||||||||||
Others
|
1 | 0.10 | - | - | 1 | 0.10 | ||||||||||||||||||
1,000 | 100.00 | - | - | 1,000 | 100.00 |
R.A.
Coury Agrícola e Participações Ltda.
|
||||||||||||||||||||||||
Shareholder
|
Units
of interest
|
%
|
Units
of interest
|
%
|
Total
units of interest
|
%
|
||||||||||||||||||
Raul Coury
Filho
|
9,044,070 | 20.83 | - | - | 9,044,070 | 20.83 | ||||||||||||||||||
Luiz Gustavo
Coury
|
5,999,766 | 13.81 | - | - | 5,999,766 | 13.81 | ||||||||||||||||||
Jorge Coury
Sobrinho
|
5,999,766 | 13.81 | - | - | 5,999,766 | 13.81 | ||||||||||||||||||
Maria Beatriz
Coury
|
5,999,766 | 13.81 | - | - | 5,999,766 | 13.81 | ||||||||||||||||||
Rosana E.
Coury Mac Donell
|
5,999,766 | 13.81 | - | - | 5,999,766 | 13.81 | ||||||||||||||||||
Myrian C.
Coury Meneguel
|
5,999,766 | 13.81 | - | - | 5,999,766 | 13.81 | ||||||||||||||||||
Raul
Coury
|
2,196,050 | 5.06 | - | - | 2,196,050 | 5.06 | ||||||||||||||||||
Anita Cobra
Coury
|
2,196,050 | 5.06 | - | - | 2,196,050 | 5.06 | ||||||||||||||||||
43,435,000 | 100.00 | - | - | 43,435,000 | 100.00 |
1.
|
Shareholding structure at
October 31, 2008 (Not reviewed by our independent auditors)
(Continued)
|
Flama
Empreendimentos e Participações S.A.
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Fernando Luiz
Altério
|
20,842 | 50.01 | 41,675 | 50.00 | 62,517 | 50.00 | ||||||||||||||||||
Ana Maria
Ometto Altério
|
20,833 | 49.99 | 41,675 | 50.00 | 62,508 | 50.00 | ||||||||||||||||||
41,675 | 100.00 | 83,350 | 100.00 | 125,025 | 100.00 |
Usina
Costa Pinto S.A. Açúcar e Álcool
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Pedro Ometto
S.A. Administração e Participações
|
64,998,204 | 100.00 | 49,995,534 | 38.46 | 114,993,738 | 58.97 | ||||||||||||||||||
Hyposwiss
Banco Privado S.A. (Switzerland) (1)
|
- | - | 38,371,510 | 29.52 | 38,371,510 | 19.68 | ||||||||||||||||||
Jaime Michaan
Chalan
|
- | - | 11,245,000 | 8.65 | 11,245,000 | 5.76 | ||||||||||||||||||
Aguassanta
Participações S.A.
|
835 | - | 11,150,069 | 8.58 | 11,150,904 | 5.72 | ||||||||||||||||||
Isaac
Michaan
|
- | - | 10,122,650 | 7.79 | 10,122,650 | 5.19 | ||||||||||||||||||
Others
|
961 | - | 9,115,237 | 7.00 | 9,116,198 | 4.68 | ||||||||||||||||||
65,000,000 | 100.00 | 130,000,000 | 100.00 | 195,000,000 | 100.00 |
Pedro
Ometto S.A. Administração e Participações
|
||||||||||||||||||||||||
Shareholders
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Nova
Aguassanta Administração de Participações Ltda.
|
222,752,725 | 99.99 | - | - | 222,752,725 | 99.99 | ||||||||||||||||||
Others
|
65 | 0.01 | - | - | 65 | 0.01 | ||||||||||||||||||
222,752,790 | 100.00 | - | - | 222,752,790 | 100.00 |
Nova
Aguassanta Administração e Participações Ltda.
|
||||||||||||||||||||||||
Shareholder
|
Units
of interest
|
%
|
Units
of interest
|
%
|
Total
units of interest
|
%
|
||||||||||||||||||
Aguassanta
Participações S.A.
|
1 | 91.50 | - | - | 1 | 91.50 | ||||||||||||||||||
Ometto Moreno
Comércio e Empreendimentos Ltda.
|
4 | 6.25 | - | - | 4 | 6.25 | ||||||||||||||||||
Others
|
4 | 2.25 | - | - | 4 | 2.25 | ||||||||||||||||||
9 | 100.00 | - | - | 9 | 100.00 |
Ometto
Moreno Comércio e Empreendimentos Ltda.
|
||||||||||||||||||||||||
Shareholder
|
Units
of interest
|
%
|
Units
of interest
|
%
|
Total
units of interest
|
%
|
||||||||||||||||||
Fernando
Manoel Ometto Moreno
|
2,351,956 | 100.00 | - | - | 2,351,956 | 100.00 | ||||||||||||||||||
Other
|
1 | 0.00 | - | - | 1 | 0.00 | ||||||||||||||||||
2,351,957 | 100.00 | - | - | 2,351,957 | 100.00 |
1.
|
Shareholding structure at
October 31, 2008 (Not reviewed by our independent auditors)
(Continued)
|
Belga
Empreendimentos e Participações S.A.
|
||||||||||||||||||||||||
Shareholder
|
Common
shares
|
%
|
Preferred
shares
|
%
|
Total
shares
|
%
|
||||||||||||||||||
Rubens Ometto
Silverira Mello
|
4,139 | 99.98 | - | - | 4,139 | 99.98 | ||||||||||||||||||
Mônica Maria
Mellão Silveira Mello
|
1 | 0.02 | - | - | 1 | 0.02 | ||||||||||||||||||
4,140 | 100.00 | - | - | 4,140 | 100.00 |
(1)
|
These
companies, which are headquartered abroad, do not belong to Cosan Group
and do not have information on their shareholders disclosed in the
market.
|
2.
|
Company’s
marketable securities in the hands of controlling shareholders and
management at October 31, 2008 (Not reviewed by our independent
auditors)
|
10/31/08
|
10/31/07
|
||||||||||||||||
Shareholder
|
Type
of share
|
Quantity
|
%
|
Quantity
|
%
|
||||||||||||
Controlling
group
|
Common
|
227,278,789 | 69.39 | 96,826,517 | 51.26 | ||||||||||||
- Cosan
Limited
|
Common
|
226,165,734 | 69.05 | 96,332,044 | 51.00 | ||||||||||||
- Cosan
Limited (temporary investment)
|
Common
|
1,046,000 | 0.32 | - | - | ||||||||||||
-
Aguassanta Participações S.A.
|
Common
|
63,212 | 0.02 | 470,185 | 0.25 | ||||||||||||
- Rio
das Pedras Participações S.A.
|
Common
|
3,375 | 0.00 | 23,820 | 0.01 | ||||||||||||
- Nova
Celisa S.A.
|
Common
|
468 | 0.00 | 468 | 0.00 | ||||||||||||
Board of
Directors
|
Common
|
793,255 | 0.24 | 19,776 | 0.01 | ||||||||||||
Executive
Board
|
Common
|
247,902 | 0.08 | 22,525 | 0.01 | ||||||||||||
228,319,946 | 69.71 | 96,868,818 | 51.28 |
3.
|
Number
of shares outstanding at October 31, 2008 – 99,228,086 (30.29%) (Not
reviewed by our independent
auditors)
|
Cosan
S.A. Indústria e Comércio
|
10/31/08
|
10/31/07
|
||||||||||||||
Shareholder
|
Total
shares
|
%
|
Total
shares
|
%
|
||||||||||||
Cosan
Limited
|
226,165,734 | 69.05 | 96,332,044 | 51.00 | ||||||||||||
Cosan Limited
(temporary investments)
|
1,046,000 | 0.32 | - | - | ||||||||||||
Aguassanta
Participações S.A.
|
63,212 | 0.02 | 470,185 | 0.25 | ||||||||||||
Rio das Pedras
Participações S.A.
|
3,375 | 0.00 | 23,820 | 0.01 | ||||||||||||
Nova Celisa
S.A.
|
468 | 0.00 | 468 | 0.00 | ||||||||||||
Rubens Ometto
Silveira Mello
|
355,699 | 0.11 | 675 | 0.00 | ||||||||||||
Board of
Directors
|
437,556 | 0.13 | 19,101 | 0.01 | ||||||||||||
Executive
Board
|
247,902 | 0.08 | 22,528 | 0.01 | ||||||||||||
Shares
outstanding
|
99,228,086 | 30.29 | 92,017,539 | 48.72 | ||||||||||||
327,548,032 | 100.00 | 188,886,360 | 100.00 |
4.
|
Orders
placed/agreements entered Into (Not reviewed by our independent
auditors)
|
Product
|
Oct/2008
|
Oct/2007
|
||||||
Sugar (in
tons)
|
7,163,000 | 9,152,000 | ||||||
Alcohol (in
cubic meters)
|
544,000 | 115,000 |
Sugar
|
Ethanol
|
|||||||||||||||||
Harvest
|
Oct/2008
|
Oct/2007
|
Oct/2008
|
Oct/2007
|
||||||||||||||
2007/2008
|
- | 1,098,000 | - | 105,000 | ||||||||||||||
2008/2009
|
1,485,000 | 2,376,000 | 134,000 | - | ||||||||||||||
2009/2010
|
2,190,000 | 2,190,000 | 170,000 | - | ||||||||||||||
2010/2011
|
1,744,000 | 1,744,000 | 120,000 | - | ||||||||||||||
2011/2012
|
1,744,000 | 1,744,000 | 120,000 | - | ||||||||||||||
7,163,000 | 9,152,000 | 544,000 | 105,000 |
5.
|
Arbitration
clause
|
05/01/08
to
10/31/08
|
05/01/07
to
10/31/07
|
|||||||
Gross
operating revenue
|
||||||||
Sales of goods
and services
|
795,829 | 671,665 | ||||||
Taxes and
sales deductions
|
(53,962 | ) | (54,144 | ) | ||||
Net operating
revenue
|
741,867 | 617,521 | ||||||
Cost of goods
sold and services rendered
|
(631,856 | ) | (579,736 | ) | ||||
Gross
profit
|
110,011 | 37,785 | ||||||
Operating
income (expenses)
|
||||||||
Selling
expenses
|
(95,177 | ) | (81,339 | ) | ||||
General and
administrative expenses
|
(37,416 | ) | (31,605 | ) | ||||
Financial
expenses, net
|
(85,792 | ) | (39,377 | ) | ||||
Gains (losses)
on equity investments
|
170 | (921 | ) | |||||
Other
operating expenses, net
|
(75,269 | ) | (41,473 | ) | ||||
(293,484 | ) | (194,715 | ) | |||||
Operating
loss
|
(183,473 | ) | (156,930 | ) | ||||
Nonoperating
result
|
3,630 | 3,958 | ||||||
Loss before
income and social contribution taxes
|
(179,843 | ) | (152,972 | ) | ||||
Income and
social contribution taxes
|
||||||||
Current
|
- | 4,402 | ||||||
Deferred
|
56,684 | 46,105 | ||||||
56,684 | 50,507 | |||||||
Loss for the
period
|
(123,159 | ) | (102,465 | ) | ||||
Loss per share
– in Reais
|
(0.08 | ) | (0.12 | ) |
COSAN
LIMITED
|
||||||
Date:
|
December
16, 2008
|
By:
|
/s/
Paulo Sérgio de Oliveira Diniz
|
|||
Name:
|
Paulo
Sérgio de Oliveira Diniz
|
|||||
Title:
|
Chief
Financial Officer and Investors Relations Officer
|