Cosan 6K Current report | SEC 17 Nov 09

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of November 2009

Commission File Number: 1-33659

COSAN LIMITED

(Translation of registrant’s name into English)

Av. Juscelino Kubitschek, 1726 – 6th floor

São Paulo, SP 04543-000 Brazil

(Address of principal executive offices)

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

Form 20-F

Form 40-F

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

Yes

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

Yes

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

COSAN LIMITED

Item
1.	Communication regarding 2Q10 earnings release

Cosan posts new EBITDA record

of R$355.7 millions on 2Q’10

São Paulo, November 12th, 2009 - COSAN LIMITED (NYSE: CZZ; Bovespa: CZLT11) and COSAN S.A. INDÚSTRIA E COMÉRCIO (Bovespa: CSAN3) announce today the Earnings Release for the 2Q’10. The results presented below are consolidated in accordance with Brazilian accounting policies.

Marcelo Martins, CFO & IR Officer Luiz Felipe Jansen de Mello, Investors Relations ri@cosan.com.br www.cosan.com.br	Highlights 2Q’10
		● Net Revenue on 2Q’10 reached R$3.58 billions, 400% higher than the R$715.1 millions posted on 2Q’09. ● EBITDA record on 2Q’10, achieving R$355.7 millions, 95% higher than the 2Q’09 and with an EBITDA margin of 9.9%. ● Net Profit of R$173.4 millions on 2Q’10 and R$510.6 millions on the accumulated until September.

	Summary of Financial and Operating Information (R$MM)
	2Q'09			2Q'10				YTD'09			YTD'10
		281.7			450.7		Ethanol Sold (millions liters)		620.2			1,207.4
		739.9			1,101.1		Sugar Sold (thousand tonnes)		1,531.5			2,089.6
		1,381.8			1,318.2		Fuels Sold (million liters)		2,701.1			2,690.3
Definitions: FY’10 – fiscal year begun Apr 1, 2009 and ending March 31, 2010 FY’09 - fiscal year begun May 1, 2008 and ending March 31, 2010 2Q’10 – quarter ended on September 30, 2009 2Q’09 – quarter ended October 31, 2009 YTD’10 – period begun on the same date as the FY’10 and ended at the close of 2Q’10 YTD’09 - period begun on the same date as the FY’09 and ended at the close of 2Q’09		33.6			34.4		Lubes Sold (million liters)		69.3			64.0
		715.1			3,575.3		Net sales		1,354.7			7,141.4
		167.9			523.8		● Gross profit		181.5			891.5
		23.5	%		14.7	%	Gross Margin		13.4	%		12.5	%
		(586.7	)		277.8		● Operating income (loss)		(668.0	)		763.4
		-82.0	%		7.8	%	Operating margin		-49.3	%		10.7	%
		182.5			355.7		● EBITDA		211.8			666.9
		25.5	%		9.9	%	EBITDA Margin		15.6	%		9.3	%
		185.5			338.9		● EBITDAH		259.9			811.0
		25.8	%		9.5	%	EBITDAH Margin		18.5	%		11.1	%
		(380.8	)		173.9		● Income (loss) before minority interest		(439.7	)		501.7
		(380.7	)		173.4		● Net income (loss)		(438.8	)		510.6
		-53.2	%		4.8	%	Profit (loss) Margin		-32.4	%		7.2	%
		314.3			359.1		Capex		579.1			779.7
		1,124.0			4,160.2		● Net Debt		1,124.0			4,160.2
		3,783.1			4,250.9		● Shareholders' & Minorities Equity		3,783.1			4,250.9

		A. Market Overview According to UNICA, the sugarcane growers’ association, crushed cane volume in Brazil’s Central-South (CS) from the 2009/10 harvest totaled 442.6 million tonnes through November 1, 7.2% up on the same period in the previous harvest, despite the increased rainfall. On the other hand, ATR (total recoverable sugar) was badly affected, falling to 132.6kg/t, 6.4% less than the 141.6kg/t in the previous year. The production mix continued to prioritize sugar, which absorbed 44% of crushed cane, 3.5 p.p. up on the previous season, with 56% going to ethanol. As a result, sugar production came to 24.7 million tonnes, 9.1% up year-on-year, while ethanol output declined by 5.2% to 19.2 billion liters, 14.2 billion liters of which hydrous, up by 6.5%, and 5.0 billion liters anhydrous, down by 28.0%. UNICA has also recently published its revised harvest estimates, given the lower number of available harvest days and the reduced ATR, according to which crushed cane volume in Brazil’s Central-South should reach 529.5 million tonnes, 3.7% down on the initial estimate, but still 4.9% up on the 505.0 million tonnes recorded last year. ATR is now expected to total 134.9 kg/t, 4.5% down on the initial estimate of 141.2 kg/t and 4.3% less than the previous harvest. With the higher-than-expected sugar ratio (43.1%, versus the initially forecast 42% and 40% last year), Central-South sugar output should reach 29.4 million tonnes, 5.6% less than expected, but still 9.7% more than in the previous season. Ethanol production, on the other hand, is expected to total 23.7 billion liters, versus 25.1 billion last year and 9.6% lower than the initial forecast. According to our own estimates, 28 days of crushing were lost through October 31 to rainfall, versus the historical average of 13 days for the same period.

Indian government establishes “fair and remunerative price”		Sugar output from the new Indian harvest is expected to remain close to 16 million tonnes. Cane production was jeopardized by the lack of monsoon rains at the beginning of the inter-harvest period in the main producing regions. The government continues to adopt measures to increase domestic sugar supply, given that prices are close to record levels. The most recent such measure was limiting inventories for industrial consumption to 15 days of demand, having already restricted the inventories of trading companies and dealers to 30 days. Recently, the Indian federal authorities announced a “fair and remunerative price” (FRP) for sugarcane of Rs 1,298.4/t (US$27,9/ton of sugarcane), to remain in force during the 2009/10 harvest (Nov/09– Oct/10, in India), replacing the statutory minimum price (SMP), which had already been raised to Rs 1,077.6/t (US$27.9/tones of sugarcane). However, the FRP is still below sugarcane prices established by certain states, such as Uttar Pradesh (Rs 1,650/t), Tâmil Nadu (Rs 1,437.4/t) and Punjab and Haryana (Rs 1,700 and Rs1,800/t, respectively). Although the Maharashtra state government has not imposed a fixed price, growers there are receiving between Rs 2,000 and Rs 2,500/t. Although this is the highest level for 10 years, it is worth noting that the prices of the major competing crops, such as rice, corn and wheat, have also been increasing.


		Mexican inventories have been dwindling due to last year’s poor harvest and exports to the USA. Up to now, the government has already auctioned sugar import licenses equivalent to 550,000 tonnes, which could well come from Brazil’s Central-South due to the limited capacity of the Central American refineries. In Russia, preliminary figures for the sugar beet harvest point towards a reduction in productivity per hectare, in turn reducing sugar output, which could lead the government to suspend the import surcharge which currently stands at US$165/t. The major hedge funds, plus smaller funds and speculators, maintained their long sugar positions at 200,000 lots, equivalent to 19% of all open contracts, 41.4% up year-on-year.



		Source: NYBOT & CFTC (Commodities Futures Trading Commission)

		International raw sugar prices averaged 20.52 US¢/lb in the 2Q’10, 39.7% up on the previous quarter and 57.7% more than the same period in 2008 (July, August and September). Despite the appreciation of the Real against the dollar in the 2Q’10, the average price of sugar in Reais increased by 25.8% year-on-year to 38.23 R$¢/lb. International refined sugar prices continued their upward trajectory, averaging US$523.26/t in the 2Q’10, 21.9% up on the previous quarter and 35.8% more than the same quarter last year. The white premium, comparing LIFFE#5 and NY#11 maturities in March 2010, closed the quarter at US$105/t, reflecting expected demand for refined sugar. Sugar exports totaled 12.7 million tonnes in the harvest year to date, 26.4% up year-on-year. India was still the main destination, absorbing around 20% of the total, followed by Saudi Arabia (9.4%) and Russia (7.6%). Domestic crystal sugar prices (ESALQ) averaged R$47.37/50kg bag (or R$ 947.34/t) in the 2Q’10, 6.6% up on the previous quarter and 63.3% up on the same quarter in 2008, reflecting the combination of strong sugar exports and the downturn in production due to the atypically high rainfall.




		Source: NYBOT, LIFFE and ESALQ

Ethanol prices begin to recover		Domestic ethanol prices began to recover, with anhydrous moving up 21.9% over 1Q’10 to R$0.838/liter, albeit still 3.7% down year-on-year. Hydrous averaged R$0.736/liter, up by 22.4% and 1.3%, respectively, over the 1Q’10 and the same months in 2008. The upturn is beginning to reflect the expected reduction in closing inventories due to the higher sugar ratio in the production mix, accelerating ethanol sales on the domestic market and the unseasonably high rainfall, which delayed crushing and lowered the sugar content (TSR) in the sugarcane.



		Source: ESALQ

Flex-fuel vehicle sales reach a record high due to the reduction in IPI tax		According to Brazil’s National Petroleum Agency (ANP), parity of hydrous ethanol prices compared to gasoline prices averaged 67.7%, weighted according to consumption. On the same date, the price of ethanol was below 70% that of gasoline in 10 Brazilian states, which jointly accounted for 78% of hydrous consumption in 2008. According to Anfavea, the auto manufacturers’ association, 730,800 flex-fuel vehicles were licensed in the 2Q’10, accounting for 89.4% of total new car sales. Flex-fuel vehicle sales in the first nine months were 7.0% more than the same period in 2008, itself a record at the time, due to the extension of the IPI reduction until September. As of October, IPI (federal VAT) will gradually be increased until it returns to its previous level in December. In October, 245,600 vehicles were licensed, 7.6% less than in September, but still 26.2% higher than in October of last year.




		Source: ANP

		According to the ANP, 2Q’10 diesel sales volume totaled 11.7 billion liters, 8% up on the previous quarter and very close to the 3 months ended on September 2008 total of 11.8 billion liters. Gasoline volume dipped by 2.7% over the 1Q’10 to 4.7 billion liters, slightly below the 4.8 billion recorded in the same quarter last year. Ethanol volume totaled 4.2 billion liters, 4.3% more than the quarter before and 23.3% up year-on-year thanks to the increase in the number of flex-fuel vehicles. The Real appreciated by 9.8% in the quarter, from R$1.95/US$ at the close of the 1Q’10 to R$1.78/US$ in September 2009, averaged R$1.87/US$ for the quarter as a whole, versus R$2.08/US$ in the 1Q’10 and R$1.67/US$ in the same months in 2008.

		B. Operational Performance As already explained in the previous quarter, the FY’10 came with certain changes in the way of looking at Cosan’s operating results, among which it is worth pointing out: (i) on account of the alteration of fiscal year 2009, which brought forward the closing to March 31, 2009, the periods relative to 2Q’09 and 2Q’10 are displaced, i.e., 2Q’09 comprises the months of August, September and October, 2009, while 2Q’10 comprises the months of July, August and September, 2009; (ii) the depreciation presented in the statements and analyses of results had its criterion altered for the fiscal year, reflecting the depreciation included in COGS (Cost of Goods Sold) and in operating expenses (SG&A) as opposed to the previous fiscal year, when depreciation was shown with a production base, i.e., by entry into production of the goods and services provided, in addition to the depreciation assessed in operating expenses. It must be stressed that the depreciation included in operating expenses did not undergo any change of criterion, only production depreciation; (iii) CCL’s only started to be consolidated in December, 2008, therefore CCL figures presented for 2Q’09 are pro-forma only and serve merely for information and comparison purposes; (iv) the 2Q’10 results do not include the aviation business, which was sold in June 2009; (v) the 2Q’10 will be the first with results of 3 full months of NovAmérica operations integrated with the Cosan Group.

2Q'09			2Q'10			Income Statement (R$MM)	YTD'09			YTD'10
	715.1			3,575.3		Net Operating Revenue		1,354.7			7,141.4
	(547.1	)		(3,051.5	)	(-) Cost of Goods Sold		(1,173.2	)		(6,249.9	)
	167.9			523.8		(=) Gross Profit		181.5			891.5
	23.5	%		14.7	%	Gross Margin		13.4	%		12.5	%
	(88.6	)		(211.3	)	(-) Selling Expenses		(174.3	)		(420.9	)
	(65.7	)		(116.2	)	(-) General & Adm. Expenses		(125.4	)		(205.5	)
	(8.0	)		2.5		(±) Other Operating Expenses		(4.1	)		75.0
	176.8			156.8		(+) Depreciation & Amortization		334.0			326.7
	182.5			355.7		(=) EBITDA		211.8			666.9
	25.5	%		9.9	%	EBITDA Margin		15.6	%		9.3	%
	185.5			338.9		(=) EBITDAH (Adjusted by Hedge)		259.9			811.0
	25.8	%		9.5	%	EBITDAH Margin		18.5	%		11.1	%
	(551.8	)		78.9		(±) Net Financial Expenses		(464.8	)		512.3
	(0.3	)		0.0		(±) Equity Income		(0.1	)		(3.5	)
	(40.4	)		-		(-) Goodwill Amortization		(80.8	)		(85.6	)
	(586.7	)		277.8		(=) Profit Before Income Tax		(668.0	)		763.4
	205.9			(103.8	)	(±) Income Tax		228.3			(261.7	)
	0.1			(0.6	)	(±) Minority Interests		0.9			9.0
	(380.7	)		173.4		(=) Net Profit (Loss)		(438.8	)		510.6
	-53.2	%		4.8	%	Net Margin		-32.4	%		7.2	%

		Production

		In the 2Q’10, Cosan crushed 18.5 million tons of sugar cane, out of which approximately 40% of its own and 60% coming from suppliers. Approximately 65% of the harvest in the 2Q’09 was mechanically- conducted. Due to the unseasonal rains in the quarter lowered the number of days available for crushing and the change in fiscal year, the volume of cane crushed in the accumulated up to the 2Q’10 was very similar to 2009 figures, despite the increase of almost 25% in additional capacity. In the quarter, production accounts for 1.4 million tons of sugar, 30% of which being refined sugar and 70% being raw sugar, and 675 million liters of ethanol, out of which 37.2% were anhydrous and 62.8% were hydrated.

2Q'09			2Q'10			Production Highlights	YTD'09			YTD'10
	16,778			18,452		Crushed Cane (thd tons)		34,198			35,905
	7,137			6,998		Own Cane (thd tons)		17,122			17,665
	9,641			11,454		Suppliers (thd tons)		17,076			18,240
						Production
	1,084			993		Raw Sugar (thd tons)		2,070			1,857
	274			421		Refined Sugar (thd tons)		517			720
	293			251		Anhydous Ethanol (thd cbm)		548			395
	396			424		Hydrous Ethanol (thd cbm)		781			899
	50.7	%		65.3	%	Mechanization (%)		50.4	%		63.1	%

		Net Revenues

		Net revenue amounted to R$3.6 billion in the quarter. The major contribution for this increase came from CCL, with revenues of R$2.4 billion in the period, representing 67.5% of net billings. Among the fuels, diesel accounted for 49.2% of the revenues, followed by gasoline with 41.0% and by ethanol with 8.5%. Revenues from Lubricants amounted to R$170.9 million, representing 4.8% of consolidated net revenue. In CAA, sugar and ethanol accounted for 63.1% and 25.9% of total revenue, respectively. Sales to the foreign market represented 48% of CAA’s net revenue in the quarter, versus 70% in the previous

		period, mainly from NovAmérica’s share of sugar sales in the domestic market and the alcohol mix more oriented to the domestic market (65% in the quarter versus 38% in the previous period).

		Consolidated Net Revenue (R$ MM)


		CAA - Sugar

Net Revenue Evolution Sugar (R$ MM)		The 95% growth of sugar revenue, when comparing this year’s quarter to the same quarter of the previous year, going from R$409.7 million in 2Q’09 to R$798.9 million in 2Q’10, results from the greater volume sold and the increase in average unit price. The expectation of sugar production for this harvest is significantly more than the production for the 08/09 harvest, due to a mix aimed more at sugar, in detriment of ethanol, and to the merger of NovAmérica Agroenergia, which added 10.6 million tons of crushing capacity. In this way, the volume of sugar available for sale also rose, which explains the increase of sales in 2Q’10. In addition, sales of sugar by NovAmérica are more concentrated in the domestic market, raising the share of this market from 12.5% in 2Q’09 to 29.3% in the current quarter.
Net Revenue Evolution Sugar (R$ MM)
		Sugar Volume and Average Unit Prices (Thousand tons - R$/ton)


		In the foreign market, the average price of sugar of R$638/ton represented appreciation of 17% when compared to 2Q’09. It is important to clarify that the sugar revenues in the foreign market reflect

		the results from fixation of prices over a period of more than 1 year, and that more than 90% of the shipments made in the period related to forward contracts with maturities in May/09 and July/09 (showing a closing price of approximately ¢US$14.41/lb). Thus, it is very important to bear in mind the horizon of fixation of prices and, although a portion of such benefit has already been secured in the quarter, we project greater impacts for the coming periods, mainly because the increases of price of the commodity ascertained in the prices of forward contracts traded in the New York and London Exchanges are more intense as from the maturity in October, 2009, against which we had shipments of only 8% in the quarter.

		CAA – Ethanol

Net Revenue Evolution Ethanol (R$ MM)		Despite lower market prices, ethanol revenues (R$327.8 million in the quarter) were 40.8% higher to the 2Q’09 revenues due to the 60% growth in volume sold, which jumped from 281.7 million liters in 2Q’09 to 450.7 million liters for 2Q’10. This increase was concentrated in the domestic market, with growing demand from new flex fuel vehicules, and because of the NovAmérica’s merger.

		Ethanol Volume and Average Unit Prices (Million liters - R$/thousand liters)


		Ethanol prices, despite being better than those in the previous quarter, remain 5% shorter than those in the comparison period, however prices in October and beginning of November have already recovered significantly, which will be captured in the next quarters. CAA – Other Products and Services The income from other products and services showed a 91.32% increase, from R$72.6 million to R$138.9 million.

		Other Products and Services (R$ MM)


		Co-generation One of the highlights in this P&L line was the revenue of the energy co-generation units, which contributed with R$39.6 million in 2Q’10 vs. R$ 10.9 million in 2Q’09. The mentioned increase reflects the start of generation from the Costa Pinto and Rafard mills and the incorporation of NovAmérica, which is delivering energy through Tarumã e Maracaí.

Co-generation	2Q'10		YTD'10
Volume Sold (MWh)		223,729		355,540
Price (R$/MWh)		159.09		177.79
Revenues (R$ thd)		35,593		63,210
Revenues - Steam (R$ thd)		2,937		4,649

		Rumo

		Despite the negative impact of the US dollar valuation before the Real in port services and also the high amount of rain in 2Q’10, mainly in July and September, Rumo Logística contributed with a revenue of R$44.2 million in the quarter (out of which R$31.2 million from loading to third parties) and shipped a total of 2.5 million tons of sugar (1.8 million tons from third parties). It is worth pointing out the record of shipped volume, of 891 thousand tons of sugar, in August.


Rumo	2Q'10		YTD'10
Loading (thd tons)		2,501.0		4,585.0
Price (R$/ton)		17.7		18.3
Revenues (R$ thd)		44,268		83,906

		Others Other two important invoicing items in this category are sales of Da Barra Alimentos products (R$10.5 million in 2Q’10) and Diesel Oil (R$12.2 million in 2Q’10).

		CCL – Fuel

Net Revenue Evolution Fuels (R$ MM)		Fall of 12.2 %, when comparing this quarter with the same of the previous year, in the invoicing of fuel distribution (income reduction of R$310.3 million) was mainly due to:

		⇒ Losses of R$ 365.5 million, mainly due to the impact of the sale of the aviation business line in May, 2009 (R$ 286.6 million in the comparison period) and 7% fall in the volume of gasoline (R$78.9 million) caused by greater use of ethanol in flex-fuel cars.

		⇒ Income of R$ 55.2 million resulting from (i) 31.2% increase in ethanol volume derived of increase in flex fuel fleet, or R$30.6 million, reflecting the growth of flex-fuel cars, and (ii) 12.3% or R$24.6 million in diesel, reflecting incoming of new industrial clients.

		Fuel Volumes and Average Unit Prices (Million liters - R$/thousand liters)


		Average fuel prices also suffered small increase q-o-q, which is explained by (i) the sale of the aviation business; (ii) the 8.8% decrease in diesel prices derived of lower prices at the refinery, partially compensated by higher CIDE (tax levied on gasoline and diesel); (iii) and because of the increase of ethanol in the sales mix.

		CCL – Lubricants

Net Revenue Evolution Lubes (R$ MM)		In the lubricants businesss, we can note that the sales returned to the level they were before the financial crisis, and even surpassed by 4.6% the invoicing of 2Q’09, or R$7.7 million, positively affected by the following factors:

		⇒ Income of R$3.7 million, caused by 2.3% raise in volume sold due to retaking of economic activity;

		⇒ Income of R$4.0 million resulting from 2.4% growth due to improvement in product mix.

		Lubricants Volume and Average Unit Prices (Million liters- R$/thousand liters)


		Cost of Products Sold

		Cost of Products Sold (R$ MM)


		The large increment shown in cost of goods sold reflects the consolidation of the CCL business, that increased the COGS by R$2,228.3 million.

2Q'09			2Q'10			Cost of Goods Sold	YTD'09			YTD'10
	(547.1	)		(3,051.5	)	Cost of Goods Sold (R$MM)		(1,173.2	)		(6,249.9	)
	(299.2	)		(522.7	)	Sugar		(639.7	)		(954.1	)
	(189.4	)		(318.8	)	Ethanol		(432.1	)		(864.3	)
	(58.5	)		(84.0	)	Other Products & Services - CA		(101.4	)		(155.9	)
	(2,533.7	)		(2,228.3	)	CCL		(4,913.8	)		(4,486.0	)
	-			102.3		Eliminations from Consolidation		-			210.3
						Average Unit Cost (R$)
	404			475		Unit COGS of Sugar (R$/ton)		418			457
	672			707		Unit COGS of Ethanol (R$/thd liters)		697			716
	1,790			1,647		Unit COGS of CCL (R$/thd liters)		1,774			1,629

		CAA

		The combined costs of sugar and ethanol showed an increase of 72%, or R$353 million, when compared with costs for 2Q’09, mainly affected by the increase of volume sold, since the higher volume of sugar accounted for an increase of R$146.1 million, while the increase in

		ethanol volume of raised COGS by R$113.6 million. With the acquisition of NovAmérica, the increase of production of white sugar to the domestic market justifies the 17.6% increase in average unit cost of sugar to R$475/ton which increased sugar and ethanol COGS in R$77.5 millions. The 5% increase in average unit cost of ethanol, to R$707/cbm, added R$15.8 millions to the mentioned COGS. Other factors negatively influenced the costs of products sold that are common to sugar and ethanol; in short, such effects were:

		⇒ In view of the recovery of sugar prices in both the domestic and foreign markets and also due to the repositioning of ethanol within the domestic market, the price paid by sugar cane from suppliers and for land leases experienced an increase that can be verified by the higher average ATR value by Consecana, which went from R$0.2566 in 2Q’09 to R$0.2996 in 2Q10, a 17.2% increase;

		⇒ Increase in the costs of production and processing of sugar and ethanol, due to the poor yield of sucrose (ATR), which went from 139.3 kg per ton in 2Q’09 to 131.1 kg per ton of sugar cane in 2Q’10;

		⇒ Offsetting part of the negative impacts above, the cutting, loading and transportation costs (CCT) presented the effects of the consolidation of the mechanization process, which covered 63% of the areas harvested up to September 30, 1270 basis point more than the YTD’2Q09. This category of CCT was R$5.22/ton of sugar cane ton lower than the traditional cutting process, which is carried out with the burning of sugarcane husk.

		CCL

		The COGS from CCL totaled R$2,228.3 million, or R$1,647/cbm in the 2Q’10 with a reduction of R$143/cbm when compared to the 2Q’09. This reduction was mainly caused by: (i) the change in the mix of products sold, with the growth of ethanol and diesel and the reduction in gasoline and jet fuel. (ii) lower prices of diesel charged by Petrobras; and (iii) capture of synergies and efficiencies in the acquisition of oil related products and ethanol. Gross Profit With these results, 2Q’10 showed gross profit of R$523.8 million, more than 3 times the total for the same period in the previous year, with a margin of 14.7%. In CAA, ethanol continues to operate with low margins, that is, around 3%, versus the 18.6% of the same comparison period, while sugar showed a positive margin of 34.6%, benefiting in part from the higher prices in the international market and from the greater participation of sugar in the domestic market. In CCL, in turn, lubricants continued to be the most profitable product, followed by gasoline, diesel and, finally, ethanol.

2Q'09			2Q'10			Gross Margin	YTD'09			YTD'10
						Average Unit COGS
	149			251		Sugar (R$/ton)		80			237
	154			20		Ethanol (R$/thd liters)		68			(47	)
	115			136		CCL (R$/thd liters)		113			121
						Gross Margin %
	27.0	%		34.6	%	Sugar		16.1	%		34.2	%
	18.6	%		2.7	%	Ethanol		8.9	%		-7.1	%
	6.0	%		7.7	%	CCL		6.0	%		6.9	%

		Selling Expenses

		Selling expenses of R$211.3 million were 138.5% higher than the R$88.6 million in 2Q’09 mainly due to the absorption of CCL (R$93.7 million) and NovAmérica (R$30.3 million). Excluding these impacts, CAA selling expenses decreased 1.5% (R$87.3 million on the 2Q’10 versus R$88.6 million on the 2Q’09), even despite the 16.6% growth of sugar exports, due to the 12.9% decrease in ethanol volumes exported and to the commercial area strategy in the sense of reducing budget through the review of sugar-related agreements and commercial understandings and the elimination less profitable accounts and the resulting drop in sales volumes of DaBarra products.

2Q'09			2Q'10			Selling Expenses	YTD'09			YTD'10
	(88.6	)		(211.3	)	Selling Expenses (R$MM)		(174.3	)		(420.9	)
	(88.6	)		(117.6	)	CAA		(174.3	)		(232.8	)
	-			(93.7	)	CCL		-			(188.1	)

		Due to different accounting policies and allocation of expenses adopted by Esso Brasileira (currently named CCL) before the acquisition by Cosan, comparison of the 2Q’10 with the 2Q’09 is inadequate for analysis, therefore it is suggested the use of 1Q’10 information. Selling expenses in 1Q’10 amounted R$94.4 million, aligned with the R$93.7 million in the 2Q’10, which is compounded mostly by Salaries and Benefits and Product Delivery Freight.

		General and Administrative Expenses

		General and administrative expenses of R$116.2 million, representing 3.3% of the net income of 2Q’10, showed a significant increase (76.9%) in relation to the R$65.7 million of 2Q’09, mainly due to incoming of CCL expenses (R$13.5 million) and NovAmérica’s (R$8.1 million). Excluding CCL and NovAmérica impacts, general and administrative expenses grew 44%, from R$94.6 million in 2Q’10 versus R$65.7 million in 2Q’09. The growth of general and administrative expenses was leveraged mainly by the following reasons: (i) expenses of R$6.3 million related to the adoption of Stock Options accounting as per Technical Opinion CPC10; (ii) R$3 million expenses referring to labor indemnifications in inactive companies that are part of the group; (iii) R$3.5 million referring to payment of fine to ANEEL due to breach of agreement to supply electric power at the Paraúna Unit; (iv) R$3 million referring to the provisioning of amounts payable on account of variable compensation of the management and employees (v) R$4.5 million with consultancy services.

2Q'09			2Q'10			General & Administrative Expenses	YTD'09			YTD'10
	(65.7	)		(116.2	)	G&A Expenses (R$MM)		(125.4	)		(205.5	)
	(65.7	)		(102.7	)	CAA		(125.4	)		(175.7	)
	-			(13.5	)	CCL		-			(29.8	)

		EBITDA

		Depreciation and amortization of R$156.8 million, 11.3% shorter than those registered in 2Q’09, are mainly due to the change in the criteria determining the depreciation adjusted to EBITDA calculations, as commented previously. As result of this new criterion, part of such reduction is due to the fact that part of the depreciation and amortization from the production remains in inventory before being appropriated to the results at the moment of sale. This impact is partially offset by the beginning of the useful life of goods and equipment included in the Company’s investment plans, including agricultural mechanization and co-generation. Thus, if one were to exclude this non-cash effect of operating costs and expenses, the Company had an EBITDA of R$355.7 million against R$182.5 million in the same period last year, represented by an EBITDA margin of 9.9%.

		Out of this amount, R$269.3 were generated by CAA, 47.6% higher than the same quarter from the previous year due to better sugar prices, higher volumes commercialized, lower depreciation and increase in contribution from cogeneration projects and port services (Rumo). CCL’s EBITDA, even without the contribution from the aviation business, reached R$86.3 million in 2Q’10, maintaining a high margin of 3.6%, or R$63.8/cbm, in view of the growth in sales volumes of diesel and ethanol and due to the increase in gasoline, ethanol, diesel and lubricants unit margins.

		Consolidated EBITDA (R$ MM)


		Financial Results This quarter’s net financial result of positive R$78.9 million, as opposed to a negative result of R$551.8 million in the same period last year, for the reasons below: (i) the positive currency effect of R$200.3 million in this quarter as opposed to a negative currency effect of R$ 501.8 million in the same

		quarter last year, in view of the currency variation over the net exposure of assets and liabilities listed in foreign currency. In the current quarter, the R$ was valued in relation to the USD by 9% (from R$1.9516/US$ on June 30 to R$1.7781/US$ on September 30) whereas in the same quarter last year the Brazilian Real depreciated by 35% (from R$1.5616/US$ on July 31 to R$2.1153/US$ on October 31, 2008). (ii) 100% growth in gross debt charges, occurred in view of greater average indebtedness, considering the new debts made by reason of the acquisitions of CCL in December/08 and of NovAmerica in June/09 and The result with derivatives in 2Q’10 reflects the negative effect generated by the increase in the price of sugar in the commodities futures market, which was partially offset by the positive effect of the currency hedge, in view of the dollar depreciation. Thusly, the net result for derivatives was of R$16.7 million negative this quarter as opposed to an income of R$3.0 million in the same quarter last year.

2Q'09			2Q'10			Financial Expenses, Net (R$MM)	YTD'09			YTD'10
	(43.2	)		(105.9	)	Interest on Financial Debt		(81.0	)		(201.5	)
	15.7			17.0		Financial Investments Income		35.7			27.6
	(27.4	)		(88.9	)	(=) Sub-total: Interest on Net Financial De		(45.4	)		(173.9	)
	(25.5	)		(17.9	)	Other interest and monetary variation		(67.1	)		(41.5	)
	(501.4	)		200.3		Exchange Variation		(399.8	)		578.9
	3.0			(16.7	)	Gains (losses) with Derivatives		48.2			144.1
	(0.4	)		(0.5	)	CPMF Taxes, Banking Fees and Other		(0.8	)		(0.9	)
	-			2.6		Interest on Indemnity from Government		-			5.6
	(551.8	)		78.9		(=) Net Financial Expenses		(464.8	)		512.3

		On September 30rd, 2009, the derivatives portfólio contracted with the purpose of hedging prices of sugar, ethanol, and the currency exchange rate is as follows:

Summary of Hedge on September 30, 2009:	Fiscal Year
		2009/10	2010/11
Sugar
Sugar #11 (NY) - *
Volume (thd tons)		1,121	1,063
Average Price (¢US$/lb)		18.5	20.5
London #5
Volume (thd tons)		14	-
Average Price (US$/ton)		573.7	-
FX
US$
Volume (US$ million)		803	457
Average Price (R$/US$)		1.837	1.931
* - Includes futures, 'in the money' options and commercial contracts of sale at fixed prices.

		EBITDAH The EBITDAH of the quarter was of R$338.9 millions, as opposed to R$182.5 million in the same quarter last year. The results from hedge from these periods are not comparable, since starting on the 4Q’09, according to changes in the Brazilian accounting policies, the results from derivatives began to reflect the adjustments to the portfolio of contracted and open derivative positions at market value in the period,

		which is already performed under US GAAP. Therefore, the results from derivatives no longer reflects the amount of gains or losses with derivatives associated with the volume of operating revenue in the period, but rather the adjustment of open derivative positions to their fair value independent of the objected being hedged by the derivatives. The result of R$338.9 millions was affected by a net derivatives effect of only R$16.7 millions, derived of a negative result of losses with sugar agreements totaling R$242.9 millions, which were partially offset by income of R$ 226.2 millions with derivative exchange agreements, as seen in the building blocks below:

		Consolidated EBITDAH (R$ MM)


		Net Profit As a result of the foregoing, Cosan closed 2Q’09 with a net profit of R$173.4 million, resulting from the non-cash currency exchange variation positive effect and, mainly due to the solid operational performance of the period, caused by good prices for sugar, recovery of ethanol prices and maintenance of good distribution margins.

		Net Profit (R$ MM)


		C. Financial Situation Gross financial indebtedness totaled R$5,258.3 million by the end of 2Q’10, a 13.2% raise, or R$633.9 million, in relation to the R$4,624.4 of 1Q’10. The main events that altered indebtedness were

		procurement of funds made by CCL Finance totaling U$350 million in Senior Notes with maturity set to 2014, with the purpose of extending short-term liabilities, in addition to the partial disbursements of resources made by the National Bank for Economic and Social Development (BNDES) to Jataí’s Greenfield and to the co-generation projects at the Bonfim and Gasa units, amounting R$354.6 millions. Part of this effect in the increase of the indebtedness was offset by the impact, in the dollar debt, of the Real appreciation, which went from R$1.95 to R$1.78/US$. Moreover, we had the amortization of short-term installments of the debt, a result of NovaAmerica’s merger.

Debt per Type (R$MM)	1Q'10			2Q'10			% ST			Var.
Foreign Currency		2,135.2			2,494.4						359.2
Perpetual Notes		888.6			809.6			1.2	%		(79.0	)
Senior Notes 2017		803.3			719.4			1.1	%		(83.9	)
Senior Notes 2009		71.1			66.4			100.0	%		(4.7	)
Senior Notes 2014		-			630.0			1.3	%		630.0
IFC		98.8			83.0			23.2	%		(15.9	)
FX Advances		152.1			91.0			100.0	%		(61.1	)
Pre-Export Contracts		121.3			95.1			40.2	%		(26.3	)
Local Currency		2,489.3			2,764.0						274.7
Promissory Notes		1,198.2			1,233.7			24.5	%		35.5
BNDES		360.1			714.8			3.4	%		354.6
Finame (BNDES)		222.7			210.0			24.5	%		(12.7	)
Working Capital		24.5			20.5			20.5	%		(4.0	)
Overdraft		0.3			37.2			98.5	%		37.0
Credit Banking Note		216.8			217.4			72.4	%		0.6
Debentures		157.8			152.6			100.0	%		(5.2	)
Credit Notes		343.2			222.9			98.8	%		(120.3	)
Expenses with Placement of Debt		(34.3	)		(45.2	)		40.6	%		(10.9	)
Gross Debt		4,624.4			5,258.3			22.3	%		633.9
Cash and Marktable Securities		932.9			1,098.2						165.3
Net Debt		3,691.5			4,160.2			5.4	%		468.7
Short Term		1,115.9			1,171.6						(55.6	)
Long Term		3,508.5			4,086.8						(578.3	)

		By the end of 2Q’10 Cosan’s cash position was of R$1098.2 million, raising its net indebtedness to R$4,160.2 or 3.12 times the EBITDA of 12 months. It is worth pointing out that this EBITDA is calculated by using the last 12 months of CAA, the yearly CCL EBITDA since its acquisition (10 months) and the EBITDA of 4 months of NovAmerica, also on a yearly basis. The debt’s profile had a slight improvement, to 22% of the total of the debt in the short-term, mainly due to the procurement of funds with the BNDES and CCL, which has a long-term profile. The installment of the debt in dollars also suffered a reduction to 47.6% of the total indebtedness, due to the reduction of debts in dollars, caused by the appreciation of the Real and by the BNDES procurement in Reais. D. Investments The total investments flow of R$ 386.8 million in 2Q’10 is mainly reflected by the execution of the greenfield projects, in Jataí and Caarapó and the power co-generation.

2Q'09		2Q'10			Capex(R$MM)	YTD'09		YTD'10
	24.6		44.8		● Sugar Cane Planting Costs		79.5		116.4
	14.7		1.8		● Inter-harvest Maintenance Costs		14.7		26.6
	34.4		57.2		● Projects CAA		134.4		127.9
	-		7.7		● Projects CCL		-		19.3
	73.7		111.5		(=) Operating Capex		228.7		290.2
	127.3		92.4		● Co-generation Projects		168.9		170.9
	113.3		155.2		● Greenfield		181.6		318.6
	314.3		359.1		(=) Capex		579.1		779.7
	61.4		29.2		● Investments		62.1		(29.4	)
	1.6		(1.5	)	● Cash from Sale of Fixed Assets				(119.2	)
	377.3		386.8		(=) Investment Cash Flow		641.3		631.1

		Capex (capital expenditure) for 2Q’10 totaled R$359.1 million, versus R$314.3 million in the same period of the previous year, an increase of 14.3%. On both periods, investments in cogeneration and in the greenfields were very significant to the Company’s capex, followed by the CAA projects aiming to the growth in crushing, internal infrastructure and environmental and processes improvements. Investments in power co-generation were of R$92.4 million in the period, 27.4% shorter than the same period last fiscal year; mainly due to the current stage of works in progress, if compared to the works in the conclusion stage of 2Q’09, which used up great amounts of funds. Capex, in 2Q’10, is mainly associated with the progress in the works at Barra and Bonfim plants, which are budgeted to happen mainly through FY’10. Both plants won the LER (Reserve Power Auction) held in August, 2008, and have a firm supply agreement with ANEEL to last fifteen years, as of FY’11. General operational projects of CAA totaled R$57.2 million versus R$34.4 million of the same period last year, an increase of 66.3%. The capex in the period was mainly made (i) in sugar plants expansion projects (ii) in infrastructure to receive chopped cane (mechanically harvested) and supplementation of the IT infrastructure to shelter the growth of the company with integration of NovAmérica systems (iii) in projects to improve the environment, focused in expansion of the area of application of vinasse. In the second quarter of FY’10 the amount of investments referring to inter-harvest maintenance was reduced, since acquisition of equipments were anticipated to the first quarter, aiming at capturing negotiation gains when suppliers of parts and services have a lower demand. In 2Q’10 the planting area of sugar cane was of approximately 12.0 thousand hectares, comprising renewal and acquisition of crops. In this context, Cosan invested R$44.8 million, 82% more than the resources used last year. In 2Q’10, CCL’s CAPEX reflects investments of R$ 7.7 million in service station improvements, expansion and reformation of terminals and interventions in the lubricants plant. E. Material Facts On October 15, continuing with the process of professionalizing the Company and in-line with corporate governance best practices, Mr.

		Rubens O. Silveira Mello resigned from his position as CEO of Cosan S.A., keeping his position as Chairman of the Board, to fully engage in the Company’s strategic management. As of November 1, 2009, Mr. Marcos Marinho Lutz, former Commercial and Logistic Executive Officer and Vice-President, was appointed as CEO.

		On September 14, 2009, Cosan Limited disposed of 10,000,000 subscription bonuses, part of the 54,993,482 bonuses that had been granted as per capital increase made at Cosan S.A. on November 10, 2008. On October 29, 2009, Cosan Limited exercised 39,589,922 subscription bonuses, equivalent to 23,753,953 new Cosan S.A shares. Cosan Limited further intends to exercise the 5,406,560 remaining bonuses, corresponding to 3,243,936 shares until their date of maturity, on December 31, 2009. F. Guidance This section contains guidance ranges for selected key parameters of the Company. Note that statements in other sections of this letter may also contain projections. These projections and guidance are merely estimates and indicative, and should not be construed as a guarantee of future performance. This guidance takes into consideration the operations held by the Cosan group today, which includes CCL, NovAmérica Agroenergia (10 months) and Rumo Logística, as well as the typical and known sugar, ethanol and cogeneration operations of Cosan.

Guidance	2008FY			2009FY			2010FY
Crushed Cane Volume (thousand tons)		40,315			43,127			+20	%	≤ ∆ ≤ +30%
Sugar Volume Sold (thousand tons)		3,147			3,052			+30	%	≤ ∆ ≤ +50%
Ethanol Volume Sold (million liters)		1,568			1,495			+40	%	≤ ∆ ≤ +60%
Revenues (R$MM)		2,736			6,270			+110	%	≤ ∆ ≤ +140%
EBITDA (R$MM)		183			718			+100	%	≤ ∆ ≤ +120%
Net Profit/Loss (R$MM)		(48	)		(474	)				*
Capex (R$MM)		1,053			1,346			+20	%	≤ ∆ ≤ +30%
* The Net profit (loss) is very sensitive to FX variations. Considering today’s FX rate of R$1.73/US$, it is expected that the FY’09 net loss of R$473.8 million will be reverted to net profit in the next fiscal year.

	G. Attachments 1. Net Revenues

2Q'09		2Q'10			Sales Composition (R$MM)	YTD'09		YTD'10
	715.1		3,575.3		Net Operating Revenue		1,354.7		7,141.4
	409.7		798.9		● Sugar Revenue - CAA		762.1		1,450.0
	57.2		302.2		Local		115.1		438.8
	352.5		496.7		Export		647.0		1,011.2
	232.8		327.8		● Ethanol Revenue - CAA		474.6		807.2
	89.3		212.9		Local		249.3		526.9
	143.5		114.9		Export		225.2		280.3
	72.6		138.9		● Other Revenue - CAA		118.0		237.8
	2,533.5		2,223.2		● Fuels Revenue - CCL		4,908.7		4,498.7
	159.2		189.9		Ethanol		299.8		345.8
	991.0		912.1		Gasoline		1,927.6		1,799.9
	1,069.8		1,094.4		Diesel		2,069.8		2,172.8
	313.4		26.8		Other		611.4		180.2
	163.2		170.9		● Lubes Revenue - CCL		318.3		321.2
	17.2		18.0		● Other Revenue - CCL		34.5		36.8
	-		(102.3	)	● Eliminations from Consolidation		-		(210.3	)

2. Volume Sold

2Q'09		2Q'10		Volume Sold	YTD'09		YTD'10
	739.9		1,101.1	Sugar (thd tons)		1,531.5		2,089.6
	92.2		322.5	Local		196.4		491.8
	647.7		778.6	Export		1,335.1		1,597.8
	281.7		450.7	Ethanol (MM liters)		620.2		1,207.4
	114.3		285.0	Local		337.9		797.7
	167.4		165.6	Export		282.3		409.7
			223,729	Energy (MWh)				355,540
	1,381.8		1,318.2	Fuels (MM liters)		2,701.1		2,690.3
	171.3		224.7	Ethanol		329.7		426.3
	456.7		418.9	Gasoline		891.6		830.8
	568.7		638.5	Diesel		1,110.4		1,227.5
	185.1		36.1	Others		369.4		205.6
	33.6		34.4	Lubes (MM liters)		69.3		64.0
	-		2,501.0	Loading (thd tons)		-		4,585.0

3. Average Prices


2Q'09		2Q'10		Average Price	YTD'09		YTD'10
	554		726	Sugar (R$/ton)		498		694
	620		937	Local		586		892
	544		638	Export		485		633
	826		727	Ethanol (R$/thd liters)		765		669
	781		747	Local		738		661
	857		694	Export		798		684
	1,833		1,686	Fuels (R$/Thd liters)		1,817		1,672
	930		845	Ethanol		909		811
	2,170		2,177	Gasoline		2,162		2,166
	1,881		1,714	Diesel		1,864		1,770
	1,693		741	Others		1,655		876
	4,853		4,968	Lubes (R$/Thd liters)		4,595		5,015

H. Financial Statements of Cosan S.A. – BR GAAP

Income Statement		Apr'07			Apr'08			Mar'09			Jan'08			Apr'08			Jul'08			Oct'08			Jan'09			Mar'09			Jun'09			Sep'09
(In million of reais)		FY'07			FY'08			FY'09			3Q'08			4Q'08			1Q'09			2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
Gross Operating Revenue			3,902.9			2,978.6			6,732.8			747.5			916.4			692.7			760.1			2,746.4			2,533.6			3,843.5			3,907.2
(-)	Sales Taxes and Deductions		(297.8	)		(242.5	)		(462.7	)		(73.5	)		(73.4	)		(53.1	)		(45.0	)		(180.7	)		(183.8	)		(277.4	)		(331.9	)
(=)	Net Operating Revenue		3,605.1			2,736.2			6,270.1			674.0			843.0			639.6			715.1			2,565.6			2,349.8			3,566.1			3,575.3
(-)	Cost of Goods Sold and Services Rendered		(2,481.1	)		(2,387.1	)		(5,470.7	)		(594.4	)		(693.6	)		(626.0	)		(547.1	)		(2,187.6	)		(2,109.9	)		(3,198.4	)		(3,051.5	)
(=)	Gross Profit		1,123.9			349.0			799.4			79.6			149.4			13.6			167.9			378.0			239.9			367.7			523.8
	Margin		31.2	%		12.8	%		12.7	%		11.8	%		17.7	%		2.1	%		23.5	%		14.7	%		10.2	%		10.3	%		14.7	%
(-)	Operating Income (Expenses):		(556.6	)		(418.0	)		(1,508.5	)		(185.1	)		(161.8	)		(94.9	)		(754.7	)		(319.6	)		(339.4	)		117.9			(246.1	)
(-)	Selling		(282.0	)		(301.3	)		(432.6	)		(73.4	)		(74.9	)		(85.7	)		(88.6	)		(156.8	)		(101.5	)		(209.6	)		(211.3	)
(-)	General and Administrative		(246.2	)		(210.2	)		(275.9	)		(49.9	)		(57.7	)		(59.7	)		(65.7	)		(72.3	)		(78.2	)		(89.3	)		(116.2	)
(-)	Financial Income (Expenses), Net		158.0			284.3			(817.4	)		(11.9	)		1.0			86.9			(551.8	)		(159.2	)		(193.4	)		433.4			78.9
(±) Earnings (Losses) on Equity Investments			(0.1	)		6.6			14.0			0.1			6.4			0.2			(0.3	)		13.6			0.5			(3.6	)		0.0
(-)	Goodwill Amortization		(223.7	)		(201.4	)		(196.5	)		(48.2	)		(40.6	)		(40.4	)		(40.4	)		(65.2	)		(50.5	)		(85.6	)		-
(±)	Other Operating Income (Expenses), Net		37.3			4.0			199.9			(1.7	)		4.0			3.9			(8.0	)		120.2			83.7			72.5			2.5
(=)	Operating Income (Loss)		567.3			(69.0	)		(709.1	)		(105.5	)		(12.4	)		(81.3	)		(586.7	)		58.5			(99.5	)		485.6			277.8
	Margin		15.7	%		-2.5	%		-11.3	%		-15.7	%		-1.5	%		-12.7	%		-82.0	%		2.3	%		-4.2	%		13.6	%		7.8	%
(±)	Income and Social Contribution Taxes		(203.9	)		18.7			234.7			33.5			6.6			22.4			205.9			(53.3	)		59.6			(157.9	)		(103.8	)
(±) Minority Interest			(6.2	)		2.5			0.6			0.6			0.5			0.8			0.1			0.0			(0.4	)		9.6			(0.6	)
(=)	Net Income (Loss) for the Year		357.0			(48.0	)		474.0	)		(71.0	)		(5.0	)		(58.0	)		(381.0	)		5.0			(40.0	)		337.3			173.4
	Margin		9.9	%		-1.8	%		-7.6	%		-10.5	%		-0.6	%		-9.1	%		-53.3	%		0.2	%		-1.7	%		9.5	%		4.8	%
● EBITDA			930.0			182.9			718.0			2.3			49.9			29.2			182.5			340.4			165.9			311.2			355.7
	Margin		25.8	%		6.7	%		11.5	%		0.3	%		5.9	%		4.6	%		25.5	%		13.3	%		7.1	%		8.7	%		9.9	%
● EBITDAH (Ebitda adjusted by Hedge)			855.7			407.8			765.7			95.5			31.0			74.4			185.5			465.3			40.4			472.0			338.9
	Margin		24.2	%		13.8	%		12.1	%		12.4	%		3.8	%		10.9	%		25.8	%		17.3	%		1.8	%		12.7	%		9.5	%
● Depreciation & Amortization			297.0			341.3			427.2			47.8			29.1			157.2			176.8			71.1			22.0			169.9			156.8

Cash Flow Statement	Apr'07			Apr'08			Mar'09			Jan'08			Apr'08			Jul'08			Oct'08			Jan'09			Mar'09			Jun'09			Se´p'09
(In millions of reais)	FY'07			FY'08			FY'09			3Q'08			4Q'08			1Q'09			2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
Net Income (Loss) for the Year		357.3			(47.8	)		(473.8	)		(71.4	)		(5.3	)		(58.1	)		(380.7	)		5.2			(40.2	)		337.3			173.4
Non-cash Adjustments:
Earnings (Losses) from Equity Investments		0.1			(6.6	)		(14.0	)		(0.1	)		(6.4	)		(0.2	)		0.3			(13.6	)		(0.5	)		3.6			(0.0	)
Depreciation & Amortization		297.0			341.3			427.2			47.8			29.1			157.2			176.8			71.1			22.0			169.9			156.8
Losses (Gains) in Fixed Assets Disposals		8.4			(1.2	)		(208.9	)		0.1			(8.1	)		1.2			4.5			3.0			(217.6	)		(103.2	)		0.8
Goodwill Amortization		223.7			201.4			196.5			48.2			40.6			40.4			40.4			65.2			50.5			85.6			-
Accrued Financial Expenses		(190.6	)		(116.0	)		932.5			87.5			(37.2	)		(26.2	)		572.0			297.8			89.0			(287.8	)		(84.0	)
Other Non-cash Items		119.7			(42.4	)		(197.9	)		(17.6	)		(0.7	)		(32.2	)		(162.9	)		49.3			(52.1	)		133.1			74.0
(=) Adjusted Net Profit (Loss)		815.5			328.8			661.5			94.5			12.1			82.0			250.4			478.0			(148.9	)		338.5			321.0
(±) Variation on Assets and Liabilities		(148.0	)		(360.1	)		(234.5	)		(152.6	)		323.9			(129.5	)		(399.0	)		(140.7	)		434.7			195.7			(312.9	)
(=) Cash Flow from Operating Activities		667.5			(31.3	)		427.0			(58.1	)		335.9			(47.4	)		(148.6	)		337.3			285.8			534.2			8.7
Additions on Investments, Net of Cash Received		(83.7	)		(160.5	)		(1,823.6	)		(0.4	)		(155.9	)		(0.7	)		(61.4	)		(1,533.7	)		(227.7	)		58.5			(29.2	)
Additions on Property, Plant and Equipment		(684.2	)		(1,053.1	)		(1,346.1	)		(271.0	)		(474.4	)		(264.8	)		(314.3	)		(432.4	)		(334.6	)		(420.6	)		(359.1	)
Cash Received on Sale of Fixed Asset		-			12.2			372.1			-			12.2			1.6			(1.6	)		-			372.1			117.7			1.5
(=) Cash Flow from Investment Activities		(767.9	)		(1,201.4	)		(2,797.6	)		(271.4	)		(618.1	)		(263.9	)		(377.4	)		(1,966.1	)		(190.3	)		(244.3	)		(386.8	)
Additions of Debt		854.7			198.3			1,478.0			213.0			(25.5	)		3.0			315.8			1,196.4			(37.1	)		172.9			1,045.8
Payments of Principal and Interest on Debt		(375.6	)		(839.4	)		(257.2	)		(319.6	)		(52.2	)		(67.8	)		(26.7	)		(148.3	)		(14.4	)		(127.8	)		(317.3	)
Capital Increase		6.9			1,742.6			884.5			1,742.6			-			-			880.0			-			4.5			-			1.4
Treasury Stock		-			-			(4.2	)		-			-			-			(4.2	)		-			-			-			-
Capital Increase at subsidiaries		-			-			15.4			-			-			-			3.5			-			11.9			-			-
Dividends		-			(75.8	)		-			-			(75.8	)		-			-			-			-			-			-
Other		-			-			(36.6	)		-			(2.4	)		-			-			(5.9	)		(30.7	)		(121.4	)		(335.4	)
(=) Cash Flows from Financing Activities		486.0			1,025.7			2,079.9			1,636.0			(155.9	)		(64.8	)		1,168.4			1,042.2			(65.8	)		(76.3	)		393.9
(=) Total Cash Flow		385.6			(207.0	)		(290.7	)		1,306.6			(438.1	)		(376.2	)		642.4			(586.7	)		29.7			213.6			15.7
(+) Cash & Equivalents, Beginning		831.5			1,217.1			1,010.1			141.6			1,448.2			1,010.1			633.9			1,276.3			689.7			719.4			932.9
(=) Cash & Equivalents, Closing		1,217.1			1,010.1			719.4			1,448.2			1,010.1			633.9			1,276.3			689.7			719.4			932.9			948.6

Balance Sheet	Apr'07		Apr'08		Mar'09			Jan'08			Apr'08		Jul'08			Oct'08			Jan'09			Mar'09			Jun'09			Sep'09
(In million of reais)	FY'07		FY'08		FY'09			3Q'08			4Q'08		1Q'09			2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
Cash and Cash Equivalents		1,217.1		1,010.1		719.4			1,448.2			1,010.1		633.9			1,276.3			689.7			719.4			932.9			948.6
Restricted Cash		35.9		79.6		11.8			62.0			79.6		79.4			0.2			11.9			11.8			40.1			149.5
Derivative Financial Instruments		1.6		6.9		17.0			5.4			6.9		9.0			8.6			6.1			17.0			86.6			97.4
Trade Accounts Receivable		112.3		215.2		599.2			105.4			215.2		115.5			215.9			459.0			599.2			585.6			589.7
Inventories		503.4		570.5		1,106.2			1,019.7			570.5		905.6			1,439.9			1,643.7			1,106.2			1,149.9			1,531.5
Advances to Suppliers		211.4		226.1		206.0			243.1			226.1		252.3			287.0			239.9			206.0			386.1			336.7
Related Parties		-		16.3		57.2			-			16.3		1.1			28.4			35.8			57.2			36.1			21.6
Deferred Income and Social Contribution Taxes		38.1		-		42.5			26.0			-		-			-			-			42.5			53.5			48.1
Recoverable Taxes		54.0		129.8		265.4			50.4			129.8		121.3			160.6			240.7			265.4			299.0			342.9
Other Assets		50.9		17.9		50.3			29.3			17.9		21.9			37.1			82.3			50.3			32.7			41.7
Current Assets		2,224.7		2,272.4		3,074.9			2,989.4			2,272.4		2,140.0			3,453.9			3,409.0			3,074.9			3,602.6			4,107.9
Accounts Receivable from Federal Government		318.4		342.2		323.4			339.2			342.2		342.2			342.2			342.2			323.4			326.4			329.0
CTN's-Restricted Brazilian Treasury Bills		123.3		151.7		177.6			144.9			151.7		164.8			170.9			175.5			177.6			184.7			189.3
Deferred Income and Social Contribution Taxes		242.5		357.0		700.0			297.9			357.0		386.7			567.8			665.0			700.0			644.6			551.5
Advances to Suppliers		-		77.3		48.0			44.5			77.3		88.2			93.6			125.3			48.0			55.5			85.1
Related Parties		-		-		-			-			-		-			-			-			-			153.2			151.8
Other Assets		112.4		94.4		132.4			107.2			94.4		124.1			124.0			159.1			132.4			185.4			190.2
Investments		93.2		120.3		278.2			14.0			120.3		124.2			184.7			280.5			278.2			181.3			196.5
Property, Plant and Equipment		2,015.7		2,776.3		3,493.9			2,297.0			2,776.3		2,882.8			3,020.8			3,389.0			3,493.9			4,516.4			4,671.4
Goodwill		1,133.2		1,160.7		2,418.8			1,042.4			1,160.7		1,115.6			1,074.5			2,493.8			2,418.8			2,724.3			2,737.5
Noncurrent Assets		4,038.6		5,079.9		7,572.5			4,287.1			5,079.9		5,228.5			5,578.5			7,630.4			7,572.5			8,971.7			9,102.3
(=) Total Assets		6,263.4		7,352.4		10,647.4			7,276.4			7,352.4		7,368.5			9,032.4			11,039.4			10,647.4			12,574.3			13,210.2
Loans and Financings		117.2		78.2		1,449.5			86.1			78.2		74.2			311.0			1,480.6			1,449.5			1,127.4			1,184.7
Derivatives Financial Instruments		45.3		50.7		66.9			24.5			50.7		19.3			32.6			49.5			66.9			98.9			215.4
Trade Accounts Payable		113.8		191.0		456.1			196.3			191.0		331.6			489.9			518.2			456.1			662.8			712.5
Salaries Payable		63.3		80.7		93.2			51.7			80.7		119.0			143.0			77.7			93.2			152.3			180.9
Taxes and Social Contributions Payable		126.2		116.1		168.6			93.3			116.1		115.0			109.7			163.2			168.6			189.8			230.9
Related Parties		0.7		-		5.2			-			-		-			-			2.5			5.2			4.5			3.8
Other Liabilities		125.4		49.9		85.8			28.6			49.9		34.4			126.1			66.6			85.8			134.1			100.7
Current Liabilities		591.7		566.5		2,325.2			480.5			566.5		693.4			1,212.3			2,358.2			2,325.2			2,369.7			2,629.0
Loans and Financing		2,819.9		2,106.2		2,885.5			2,196.8			2,106.2		2,047.9			2,679.3			2,904.5			2,885.5			4,091.4			4,667.4
Taxes and Social Contributions Payable		338.5		359.3		328.8			340.1			359.3		351.5			346.1			336.0			328.8			335.5			288.9
Provision for Legal Proceedings		728.0		832.4		1,105.9			775.3			832.4		849.8			873.1			1,114.1			1,105.9			1,135.5			1,143.4
Related Parties		-		-		405.2			-			-		-			-			405.3			405.2			341.5			-
Pension Fund		-		-		60.4			-			-		-			-			58.5			60.4			61.0			62.3
Other Liabilities		134.0		144.4		139.9			134.5			144.4		141.3			138.4			134.8			139.9			169.2			168.4
Noncurrent Liabilities		4,020.4		3,442.3		4,925.5			3,446.7			3,442.3		3,390.5			4,037.0			4,953.1			4,925.5			6,134.1			6,330.3
Minority Shareholders' Interest		20.2		17.7		30.9			18.2			17.7		17.0			20.3			31.5			30.9			29.9			30.4
Capital		1,192.7		2,935.3		3,819.8			2,935.3			2,935.3		2,935.3			3,815.3			3,815.3			3,819.8			4,153.9			4,155.3
Capital Reserve		-		-		41.7			-			-		-			(4.2	)		(4.2	)		41.7			45.1			50.2
Profits Reserve		227.3		180.2		-			227.3			180.2		180.2			180.2			180.2			-			-			-
Legal Reserve		16.0		16.0		-			16.0			16.0		16.0			16.0			16.0			-			-			-
Revaluation Reserves		195.0		194.4		-			194.4			194.4		194.2			193.8			93.2			-			-			-
Accumulated losses		-		-		(495.7	)		(41.9	)		-		(57.9	)		(438.2	)		(403.9	)		(495.7	)		(158.4	)		15.0
Shareholders' Equity		1,631.0		3,325.8		3,365.7			3,331.1			3,325.8		3,267.7			3,762.8			3,696.6			3,365.7			4,040.7			4,220.5
(=) Total Liabilities & Shareholders' Equity		6,263.4		7,352.4		10,647.4			7,276.4			7,352.4		7,368.5			9,032.4			11,039.4			10,647.4			12,574.3			13,210.2

Credit Statistics (LTM)	Apr'07			Apr'08			Mar'09			Jan'08			Apr'08			Jul'08			Oct'08			Jan'09			Mar'09			Jun'09			Sep'09
(In million of reais)	FY'07			FY'08			FY'09			3Q'08			4Q'08			1Q'09			2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
Net Operating Revenues		3,605.1			2,736.2			6,270.1			2,575.2			2,736.2			2,784.1			2,871.6			4,763.3			6,270.1			9,196.6			12,056.9
● Gross Profit		1,123.9			349.0			799.4			369.9			349.0			318.9			410.5			708.9			799.4			1,153.6			1,509.4
● EBITDA		930.0			182.9			718.0			261.8			182.9			159.6			264.0			602.1			718.0			1,000.0			1,173.1
● EBIT		633.1			(158.4	)		290.8			(186.9	)		(158.4	)		(213.5	)		(147.0	)		167.7			290.8			560.2			753.3
● Encargos Financeiros da Dívida Líquida		127.8			106.2			179.9			126.2			106.2			91.9			85.2			136.1			179.9			247.0			308.4
● Net Profit		357.3			(47.8	)		(473.8	)		122.2			(47.8	)		(119.6	)		(515.5	)		(438.9	)		(473.8	)		(78.4	)		475.6
Liquid Funds
● Cash and Cash Equivalents		1,217.1			1,010.1			719.4			1,448.2			1,010.1			633.9			1,276.3			689.7			719.4			932.9			1,098.2
Short-Term Debt
● Loans and Financings		109.0			69.3			1,442.7			80.2			69.3			62.9			298.6			1,475.3			1,442.7			1,115.9			1,171.6
Long-Term Debt
● Loans and Financings		2,324.8			1,562.5			2,312.3			1,663.6			1,562.5			1,474.9			2,101.7			2,327.6			2,312.3			3,508.5			4,086.8
Total Debt		2,433.8			1,631.8			3,755.0			1,743.8			1,631.8			1,537.7			2,400.3			3,802.9			3,755.0			4,624.4			5,258.3
Net Debt		1,216.7			621.7			3,035.6			295.6			621.7			903.8			1,124.0			3,113.3			3,035.6			3,691.5			4,160.2
Current Assets		2,224.7			2,272.4			3,074.9			2,989.4			2,272.4			2,140.0			3,453.9			3,409.0			3,074.9			3,602.6			4,107.9
Current Liabilities		591.7			566.5			2,325.2			480.5			566.5			693.4			1,212.3			2,358.2			2,325.2			2,369.7			2,629.0
Shareholders' Equity		1,631.0			3,325.8			3,365.7			3,331.1			3,325.8			3,267.7			3,762.8			3,696.6			3,365.7			4,040.7			4,220.5
Capex - Property, Plant and Equipment		684.2			1,053.1			1,346.1			944.2			1,053.1			1,147.4			1,324.5			1,485.9			1,346.1			1,501.9			1,546.7
● Capex - Operational		598.0			781.9			565.0			798.1			781.9			796.9			762.7			727.5			565.0			588.7			626.5
EBITDA Margin		25.8	%		6.7	%		11.5	%		10.2	%		6.7	%		5.7	%		9.2	%		12.6	%		11.5	%		10.9	%		9.7	%
● Gross Profit Margin		31.2	%		12.8	%		12.7	%		14.4	%		12.8	%		11.5	%		14.3	%		14.9	%		12.7	%		12.5	%		12.5	%
● EBIT Margin		17.6	%		-5.8	%		4.6	%		-7.3	%		-5.8	%		-7.7	%		-5.1	%		3.5	%		4.6	%		6.1	%		6.2	%
● Net Profit Margin		9.9	%		-1.7	%		-7.6	%		4.7	%		-1.7	%		-4.3	%		-18.0	%		-9.2	%		-7.6	%		-0.9	%		3.9	%
Net Debt ÷ Shareholders' Equity
● Net Debt %		42.7	%		15.8	%		47.4	%		8.2	%		15.8	%		21.7	%		23.0	%		45.7	%		47.4	%		47.7	%		50.5	%
● Shareholders' Equity %		57.3	%		84.2	%		52.6	%		91.8	%		84.2	%		78.3	%		77.0	%		54.3	%		52.6	%		52.3	%		49.5	%
Long-Term Payable Debt to Equity Ratio		1.4	x		0.5	x		0.7	x		0.5	x		0.5	x		0.5	x		0.6	x		0.6	x		0.7	x		0.9	x		1.0	x
Liquidity Ratio (Current Assets ÷ Current Liabilities)		3.8	x		4.0	x		1.3	x		6.2	x		4.0	x		3.1	x		2.8	x		1.4	x		1.3	x		1.5	x		1.6	x
Net Debt ÷ EBITDA		1.3	x		3.4	x		4.2	x		1.1	x		3.4	x		5.7	x		4.3	x		5.2	x		4.2	x		3.7	x		3.7	x
● Short-Term Net Debt ÷ EBITDA		0.1	x		0.4	x		2.0	x		0.3	x		0.4	x		0.4	x		1.1	x		2.5	x		2.0	x		1.1	x		1.0	x
Net Debt ÷ (EBITDA - Capex)		4.9	x		-0.7	x		-4.8	x		-0.4	x		-0.7	x		-0.9	x		-1.1	x		-3.5	x		-4.8	x		-7.4	x		-11.5	x
● Net Debt ÷ (EBITDA - Operational Capex)		3.7	x		-1.0	x		19.8	x		-0.6	x		-1.0	x		-1.4	x		-2.3	x		-24.8	x		19.8	x		9.0	x		7.9	x
Interest Cover (EBITDA ÷ Net Financial Exp.)		7.3	x		1.7	x		4.0	x		2.1	x		1.7	x		1.7	x		3.1	x		4.4	x		4.0	x		4.0	x		3.8	x
● Interest Cover (EBITDA - Op.Capes)÷Net Fin.)		2.6	x		-5.6	x		0.9	x		-4.3	x		-5.6	x		-6.9	x		-5.9	x		-0.9	x		0.9	x		1.7	x		1.8	x
Avg. Debt Cost (Net.Fin.Exp. ÷ Net Debt)		10.5	%		17.1	%		5.9	%		42.7	%		17.1	%		10.2	%		7.6	%		4.4	%		5.9	%		6.7	%		7.2	%

I. Financial Statements of Cosan Limited – US GAAP

Income Statement		Apr'07			Apr'08			Apr'09			Jan'08			Apr'08			Jul'08			Oct'08			Jan'09			Apr'09			Jun'09			Sep'09
(In millions of U.S. dollars)		FY'07			FY'08			FY'09			3Q'08			4Q'08			1Q'09			2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
Net sales			1,679.1			1,491.2			2,926.5			376.7			485.3			394.0			383.8			1,103.4			1,045.3			1,720.3			1,915.7
(-)	Cost of goods sold		(1,191.3	)		(1,345.6	)		(2,621.9	)		(343.5	)		(418.4	)		(398.9	)		(320.2	)		(950.3	)		(952.4	)		(1,561.4	)		(1,655.5	)
(=)	Gross profit		487.8			145.6			304.6			33.2			66.9			(4.9	)		63.6			153.0			92.8			158.8			260.1
(-)	Selling expenses		(133.8	)		(168.6	)		(213.3	)		(41.6	)		(44.9	)		(53.0	)		(47.9	)		(67.6	)		(44.7	)		(102.1	)		(115.1	)
(-)	General and administrative expenses		(121.1	)		(115.1	)		(140.1	)		(30.2	)		(30.5	)		(36.3	)		(34.9	)		(42.2	)		(26.8	)		(7.9	)		(62.8	)
(=)	Operating income (loss)		232.9			(138.1)			(48.8	)		(38.6	)		(8.5	)		(94.2	)		(19.2	)		43.2			21.4			48.9			82.3
	Operating margin		13.9	%		-9.3	%		-1.7	%		-10.2	%		-1.8	%		-23.9	%		-5.0	%		3.9	%		2.0	%		2.8	%		4.3	%
(-)	Other income (expense):
	Financial		289.4			116.8			(370.8	)		(131.8	)		119.3			26.5			(234.4	)		(137.2	)		(25.7	)		215.7			64.1
	Other		16.3			(3.7	)		(2.3	)		(1.4	)		(1.8	)		(3.5	)		(8.1	)		6.6			2.7			(7.9	)		0.9
(=) Income (loss) before income taxes			538.5			(25.0	)		(421.9	)		(171.9	)		109.0			(71.2	)		(261.7	)		(87.3	)		(1.6	)		256.7			147.3
(-)	Income taxes expense (benefit)		(188.8	)		19.8			144.7			57.5			(27.9	)		23.2			94.5			(1.7	)		28.7			(76.5	)		(49.4	)
(=)	Income (loss) before equity		349.7			(5.2	)		(277.2	)		(114.3	)		81.1			(48.0)			(167.2	)		(89.1	)		27.1			180.1			97.9
(±)	Equity in income of affiliates		(0.0	)		(0.2	)		6.1			(0.5	)		2.3			0.1			1.2			5.2			(0.3)			(1.7)			0.0
(±)	Minority interest in net (income) loss		(173.0	)		22.0			83.0			55.2			(26.1	)		18.6			52.0			19.3			(6.9)			(55.8	)		(34.0	)
(=)	Net income (loss)		176.7			16.6			(188.1	)		(59.7	)		57.3			(29.3	)		(114.1	)		(64.6	)		19.9			122.6			63.9
	Margin		10.5	%		1.1	%		-6.4	%		-15.8	%		11.8	%		-7.4	%		-29.7	%		-5.9	%		1.9	%		7.1	%		3.3	%
●	EBITDA		436.5			94.3			239.6			11.8			15.0			14.6			72.2			92.2			60.7			140.3			190.9
	Margin		26.0	%		6.3	%		8.2	%		3.1	%		3.1	%		3.7	%		18.8	%		8.4	%		5.8	%		8.2	%		10.0	%
●	EBIT		249.2			(141.8	)		(51.1	)		(40.0	)		(10.3	)		(97.7	)		(27.3	)		49.9			24.1			40.9			83.1
	Margin		14.8	%		-9.5	%		-1.7	%		-10.6	%		-2.1	%		-24.8	%		-7.1	%		4.5	%		2.3	%		2.4	%		4.3	%
● Depreciation and amortization			187.4			236.1			290.7			51.8			25.3			112.3			99.5			42.3			36.6			99.3			107.7

Cash Flow Statement	Apr'07			Apr'08			Mar'09			Jan'08			Apr'08			Jul'08			Oct'08			Jan'09			Mar'09			Jun'09			Se´p'09
(In millions of U.S. dollars)	FY'07			FY'08			FY'09			3Q'08			4Q'08			1Q'09			2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
● Cash flow from operating activities:
Net income (loss) for the year/quarter		176.7			16.6			(188.1	)		(59.7	)		57.3			(29.3	)		(114.1	)		(64.6	)		19.9			122.6			63.9
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization		187.4			236.1			290.7			51.8			25.3			112.3			99.5			42.3			36.6			99.3			107.7
Deferred income and social contribution taxes		150.2			(52.4	)		(145.3	)		(51.9	)		14.0			(31.6	)		(86.7	)		13.9			(40.9	)		66.6			59.3
Interest, monetary and exchange variation		116.3			(43.7	)		497.3			56.5			(2.5	)		(14.5	)		327.5			2.2			182.1			(136.3	)		(67.9	)
Minority interest in net income of subsidiaries		173.0			(22.0	)		(83.0	)		(55.2	)		26.1			(18.6	)		(52.0	)		(19.3	)		6.9			55.8			34.0
Others		(176.8	)		15.2			14.5			(6.2	)		8.7			9.2			5.4			(55.0	)		54.9			12.2			(47.8	)
		626.8			149.8			386.1			(64.6	)		128.9			27.5			179.7			(80.5	)		259.5			220.3			149.3
Decrease/increase in operating assets and liabilities:
Trade accounts receivable, net		48.2			(57.1	)		(23.7	)		6.4			(62.2	)		63.9			(63.7	)		26.5			(50.5	)		56.5			(8.5	)
Inventories		(54.1	)		(31.7	)		(85.9	)		103.1			253.5			(214.0	)		(197.2	)		96.0			229.3			88.4			(178.6	)
Advances to suppliers		(38.7	)		(8.4	)		21.1			35.2			8.6			(16.8	)		(12.1	)		22.8			27.2			(38.8	)		7.3
Trade accounts payable		(43.2	)		33.7			33.4			(100.9	)		(12.2	)		90.1			54.8			(83.8	)		(27.6	)		24.1			30.3
Derivative financial instruments		(155.0	)		90.4			4.4			127.4			(79.6	)		11.3			(4.8	)		56.0			(58.1	)		(16.2	)		57.9
Taxes payable		(36.6	)		(19.6	)		(17.1	)		13.7			(17.1	)		(7.9	)		(5.0	)		(1.2	)		(2.9	)		(29.3	)		(29.7	)
Other assets and liabilities, net		(63.4	)		(99.4	)		(61.8	)		(107.9	)		23.0			16.2			(126.6	)		23.5			25.0			33.0			(12.1	)
		(342.8	)		(92.2	)		(129.6	)		77.1			114.0			(57.1	)		(354.6	)		139.8			142.4			117.7			(133.3	)
(=) Net cash provided by operating actitivities		284.0			57.6			256.6			12.5			242.9			(29.6	)		(174.9	)		59.2			401.9			338.0			16.0
● Cash flow from investing activities:
Restricted cash		47.0			(25.9	)		29.3			(33.6	)		(11.1	)		0.1			37.4			(8.3	)		0.1			(14.5	)		(63.0	)
Marketable securities		97.0			(671.0	)		558.8			(71.0	)		191.8			(202.4	)		(123.4	)		791.6			93.0			-			-
Acquisition of property, plant and equipment		(356.2	)		(642.9	)		(606.2	)		(157.3	)		(300.8	)		(169.3	)		(143.9	)		(131.7	)		(161.2	)		(227.0	)		(211.5	)
Acquisitions, net of cash acquired		(39.4	)		(102.0	)		(930.4	)		(1.2	)		(100.8	)		0.8			(45.2	)		(671.5	)		(214.5	)		(2.1	)		2.1
Other		-			-			160.7			1.2			-			-			-			(65.5	)		226.2			92.4			(8.8	)
(=) Net cash used in investing actitivities		(251.6	)		(1,441.7	)		(787.8	)		(261.9	)		(220.8	)		(370.8	)		(275.2	)		(85.4	)		(56.4	)		(151.2	)		(281.3	)
● Cash flow from financing activities:
Proceeds from issuance of common stock		3.2			1,118.4			200.0			-			-			-			196.2			0.0			3.8			-			0.7
Capital increase on subsidiary from minority		-			324.4			11.2			312.7			11.7			-			-			-			11.2			(62.2	)		(0.3	)
Dividends Paid		-			(44.9	)		-			-			(44.9	)		-			-			-			-			-			-
Additions of financial debt		424.6			117.5			789.5			-			117.5			-			174.5			630.4			(15.4	)		88.6			596.8
Payments of financial debt		(205.0	)		(492.1	)		(111.1	)		(60.4	)		(171.2	)		(39.8	)		(26.2	)		(37.1	)		(8.0	)		(69.2	)		(351.4	)
Other		-			-			(17.8	)		-			-			-			-			-			(17.8	)		-			-
(=) Net cash provided by financing actitivities		222.8			1,023.3			871.9			252.3			(86.9	)		(39.8	)		344.6			593.4			(26.2	)		(42.8	)		245.8
Effect of exchange rate changes on cash and cash		32.1			112.6			99.7			3.6			49.8			458.1			81.8			(529.2	)		89.0			23.5			112.4
(=) Variation in cash & equivalents		287.3			(248.2	)		440.4			6.4			(15.0	)		17.9			(23.7	)		37.9			408.3			167.5			92.9
(+) Cash and cash equivalents at beginning of year		29.2			316.5			68.4			77.0			83.4			68.4			86.3			62.6			100.5			508.8			676.3
(=) Cash and cash equivalents at end of year		316.5			68.4			508.8			83.4			68.4			86.3			62.6			100.5			508.8			676.3			769.1

Balance Sheet	Apr'07		Apr'08		Mar'09			Jan'08		Apr'08		Jul'08		Oct'08			Jan'09			Mar'09			Jun'09			Sep'09
(In millions of U.S. dollars)	FY'07		FY'08		FY'09			3Q'08		4Q'08		1Q'09		2Q'09			3Q'09			4Q'09			1Q'10			2Q'10
Assets
Current assets:
Cash and cash equivalents		316.5		68.4		508.8			83.4		68.4		86.3		62.6			100.5			508.8			676.3			769.1
Restricted cash		17.7		47.2		5.1			35.2		47.2		50.7		0.1			5.1			5.1			20.5			84.1
Marketable securities		281.9		1,014.5		-			1,188.5		1,014.5		804.2		771.5			397.0			-			-			-
Derivative financial instruments		65.2		31.5		7.4			12.7		31.5		65.3		86.8			3.7			7.4			44.4			54.8
Trade accounts receivable, net		55.2		126.9		258.9			59.8		126.9		73.0		101.9			197.9			258.9			300.1			331.6
Inventories		247.5		337.7		477.8			571.2		337.7		577.6		680.5			709.5			477.8			589.2			861.3
Advances to suppliers		104.0		133.7		89.0			137.1		133.7		160.8		135.5			103.5			89.0			200.8			189.4
Deferred income taxes		-		-		114.6			-		-		-		-			25.7			114.6			153.2			192.8
Other current assets		51.6		103.2		66.0			44.5		103.2		99.7		132.6			158.4			66.0			69.0			56.1
		1,139.5		1,863.0		1,527.5			2,132.6		1,863.0		1,917.6		1,971.5			1,701.3			1,527.5			2,053.5			2,539.3
Noncurrent assets:
Property, plant and equipment, net		1,194.1		2,018.1		2,271.8			1,514.3		2,018.1		2,217.3		1,738.6			1,828.8			2,271.8			3,178.1			3,554.3
Goodwill		491.9		772.6		888.8			626.3		772.6		823.4		623.4			1,197.3			888.8			1,464.2			1,592.5
Intangible assets, net		94.0		106.1		230.7			102.0		106.1		111.8		81.8			73.1			230.7			240.5			256.9
Accounts Receivable from Federal Government		156.5		202.8		139.7			192.7		202.8		218.4		161.8			147.7			139.7			167.3			185.1
Other non-current assets		177.5		306.4		362.6			237.9		306.4		345.3		322.0			536.5			362.6			491.7			580.5
		2,113.9		3,406.1		3,893.6			2,673.3		3,406.1		3,716.3		2,927.5			3,783.5			3,893.6			5,541.6			6,169.2
(=) Total assets		3,253.4		5,269.1		5,421.1			4,805.9		5,269.1		5,634.0		4,899.0			5,484.7			5,421.1			7,595.1			8,708.6
Liabilities and shareholders' equity
Current liabilities:
Trade accounts payable		55.9		114.4		197.2			110.5		114.4		212.0		235.8			223.7			197.2			339.8			401.3
Taxes payable		57.5		62.9		69.0			47.1		62.9		67.4		47.4			66.1			69.0			92.9			125.1
Salaries payable		31.1		47.8		40.2			29.2		47.8		75.8		67.5			33.5			40.2			78.0			101.7
Current portion of long-term debt		36.1		38.2		781.7			27.9		38.2		33.2		134.2			786.7			781.7			582.9			673.0
Derivative financial instruments		9.8		55.0		28.9			102.3		55.0		102.1		112.1			83.3			28.9			50.7			121.1
Dividends payable		37.3		-		-			-		-		-		-			-			-			-			-
Deferred income taxes		-		-		-			-		-		-		10.3			-			-			-			-
Other liabilities		46.5		40.8		47.6			24.9		40.8		29.4		28.5			30.2			47.6			87.1			70.7
		274.2		359.1		1,164.7			342.0		359.1		519.8		635.7			1,223.6			1,164.7			1,231.5			1,493.0
Long-term liabilities:
Long-term debt		1,342.5		1,249.3		1,251.1			1,226.5		1,249.3		1,291.4		1,257.4			1,246.5			1,251.1			2,249.1			2,632.3
Estimated liability for legal proceedings		379.2		494.1		497.6			442.0		494.1		545.0		414.1			546.4			497.6			607.5			672.6
Taxes payable		106.9		170.4		151.5			127.7		170.4		181.9		133.4			187.1			151.5			184.7			178.3
Advances from customers		24.3		-		-			-		-		-		-			-			-			-			-
Deferred income taxes		141.6		101.8		40.4			85.9		101.8		83.6		-			-			40.4			84.0			118.3
Other long-term liabilities		47.5		101.7		175.0			72.8		101.7		103.3		107.7			181.6			175.0			213.2			224.6
		2,042.0		2,117.4		2,115.6			1,954.9		2,117.4		2,205.3		1,912.7			2,161.5			2,115.6			3,338.5			3,826.2
Minority interest in consolidated subsidiaries		463.6		796.8		544.5			873.4		796.8		839.7		602.8			530.7			544.5			1,037.8			1,181.8
Shareholders' equity:
Common stock		1.0		2.3		2.7			2.1		2.3		2.3		2.7			2.7			2.7			2.7			2.7
Additional paid-in capital		354.0		1,723.1		1,926.7			1,471.0		1,723.1		1,724.6		1,920.9			1,922.0			1,926.7			1,964.7			1,961.8
Accumulated other comprehensive income		36.7		171.8		(243.6	)		121.3		171.8		273.1		(130.9	)		(246.2	)		(243.6	)		(13.1	)		146.1
Retained earnings (losses)		81.9		98.5		(89.6	)		41.2		98.5		69.2		(44.9	)		(109.5	)		(89.6	)		33.0			96.9
Total shareholders' equity		473.6		1,995.7		1,596.2			1,635.6		1,995.7		2,069.1		1,747.8			1,569.0			1,596.2			1,987.3			2,207.6
(=) Total liabilities and shareholders' equity		3,253.4		5,269.1		5,421.1			4,805.9		5,269.1		5,634.0		4,899.0			5,484.7			5,421.1			7,595.1			8,708.6

Cosan S.A. Indústria e Comércio

Condensed Consolidated Financial Statements

For the six-month periods ended September 30, 2009 and October 31, 2008

Cosan 6-KCurrent report (foreign)