Cosan 6-K Current report (foreign)

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Issuer

Pursuant To Rule 13a-16 Or 15d-16

of the Securities Exchange Act of 1934

For the month of August, 2018

Commission File Number: 1-33659

COSAN LIMITED

(Translation of registrant’s name into English)

Av. Brigadeiro Faria Lima, 4100, – 16^th floor

São Paulo, SP 04538-132 Brazil

(Address of principal executive offices)

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

Form 20-F            X             Form 40-F                          

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

Yes                           No            X            

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

Yes                           No            X            

Cosan Limited

Consolidated interim financial statements as of

June 30, 2018

Cosan Limited

Consolidated interim financial statements

June 30, 2018

Contents

Report on review of interim financial information	3
Consolidated statements of financial position	4
Consolidated statements of profit or loss and other comprehensive income	6
Consolidated statements of changes in equity	8
Consolidated statements of cash flows	10
Notes to the consolidated interim financial statements	12

2

Report on Review of Interim Financial Information

To the Management, Board of Directors and Shareholders of

Cosan Limited

Bermuda

Introduction

We have reviewed the accompanying consolidated interim financial information of Cosan Limited (“Company”) contained in the Quarterly Information Form—ITR for the quarter ended June 30, 2018, which comprises the statement of financial position as of June 30, 2018, and the respective statements of profit and loss and comprehensive income for the three andsix-month periods then ended and changes in equity and cash flows for thesix-month period then ended, including the explanatory notes.

The Company’s management is responsible for the preparation and presentation of this interim financial information in accordance with IAS 34—Interim Financial Reporting, issued by the International Accounting Standards Board—IASB. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review engagements of interim financial information (NBC TR 2410—Revisão de Informações Intermediárias Executada pelo Auditor da Entidade and ISRE 2410—Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for the financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with audit standards and, consequently, does not enabled us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on the interim information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the Quarterly Information Form—ITR referred to above has not been prepared, in all material respects, in accordance with IAS 34—Interim Financial Reporting, issued by the International Accounting Standards Board—IASB.

São Paulo, August 9, 2018

KPMG Auditores Independentes

CRC2SP014428/O-6

Rogério Hernandez Garcia

Accountant CRC1SP213431/O-5

3

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais – R$)

	Note		June 30, 2018		December 31, 2017
Assets
Cash and cash equivalents		6		4,073,045		4,555,177
Restricted cash		7		1,394		—
Marketable securities		7		3,804,706		3,853,343
Trade receivables		8		1,546,639		1,277,766
Derivative financial instruments		26		155,437		317,763
Inventories				761,777		663,061
Receivables from related parties		10		62,271		30,059
Income tax receivable				397,796		312,274
Other current tax receivable		9		332,864		327,410
Dividends receivable				19,663		13,466
Other financial assets				—		1,340,000
Other current assets				351,899		343,617
Total current assets				11,507,491		13,033,936
Trade receivables		8		45,623		44,654
Restricted cash		7		166,388		225,634
Deferred tax assets		20		1,553,421		1,636,080
Receivables from related parties		10		89,290		169,755
Income tax receivable				257,516		247,996
Othernon-current tax receivable		9		810,690		778,820
Judicial deposits		21		837,998		766,107
Derivative financial instruments		26		1,585,107		844,450
Othernon-current assets				460,775		472,753
Investments in associates		11		345,215		301,342
Investments in joint ventures		12		8,022,046		8,447,799
Property, plant and equipment		13		12,083,539		11,681,575
Intangible assets and goodwill		14		16,926,467		16,973,610
Totalnon-current assets				43,184,075		42,590,575
Total assets				54,691,566		55,624,511

The accompanying notes are an integral part of these consolidated interim financial statements

4

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais – R$)

	Note		June 30, 2018			December 31, 2017
Liabilities
Loans, borrowings and debentures		15		2,586,255			3,903,392
Leases		16		173,826			261,344
Real estate credit certificates				36,873			86,745
Derivative financial instruments		26		427			1,520
Trade payables		18		2,534,944			2,433,995
Employee benefits payable				240,585			291,080
Income tax payables				10,000			21,146
Other taxes payable		19		313,995			418,878
Concessions payables		17		28,819			27,413
Dividends payable				27,997			191,478
Payables to related parties		10		354,625			328,263
Deferred revenue				10,809			11,529
Other financial liabilities				349,626			382,702
Other current liabilities				613,458			662,835
Total current liabilities				7,282,239			9,022,320
Loans, borrowings and debentures		15		19,756,303			17,785,554
Leases		16		497,444			682,794
Preferred shareholders payable in subsidiaries				1,211,620			1,442,679
Derivative financial instruments		26		31,020			113,565
Other taxes payable		19		156,496			161,637
Provision for legal proceedings		21		1,368,014			1,348,157
Concessions payables		17		3,042,483			2,905,921
Post-employment benefits		27		494,676			485,459
Deferred tax liabilities		20		3,937,035			3,902,310
Deferred revenue				52,356			56,495
Othernon-current liabilities				591,326			658,207
Totalnon-current liabilities				31,138,773			29,542,778
Total liabilities				38,421,012			38,565,098
Shareholders’ equity		22
Share capital				5,328			5,328
Additionalpaid-in capital				3,095,567			3,245,543
Accumulated other comprehensive loss				(646,724	)		(394,212	)
Retained earnings				3,237,514			3,182,098
Equity attributable to:
Owners of the Company				5,691,685			6,038,757
Non-controlling interests		11		10,578,869			11,020,656
Total shareholders’ equity				16,270,554			17,059,413
Total shareholders’ equity and liabilities				54,691,566			55,624,511

The accompanying notes are an integral part of these consolidated interim financial statements

5

Cosan Limited

Consolidated statements of profit or loss and other comprehensive income

For the three and six month period ended June 30, 2018 and 2017

(In thousands of Brazilian Reais – R$, except earnings per share)

	Note		April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
Net sales				4,074,491			7,617,919			3,368,507			6,154,238
Cost of sales				(2,913,297	)		(5,425,976	)		(2,202,172	)		(4,161,613	)
Gross profit				1,161,194			2,191,943			1,166,335			1,992,625
Selling expenses				(247,532	)		(492,601	)		(281,435	)		(539,018	)
General and administrative expenses				(236,354	)		(449,705	)		(202,909	)		(410,283	)
Other income (expenses), net		24		(20,859	)		(43,520	)		(47,720	)		(63,760	)
Operating expenses				(504,745	)		(985,826	)		(532,064	)		(1,013,061	)
Income before interest in earnings of investees and financial results				656,449			1,206,117			634,271			979,564
Interest in earnings of associates		11		18,444			15,638			(1,628	)		1,326
Interest in earnings of joint ventures		12		50,457			348,113			40,397			296,094
Interest in earnings of investees				68,901			363,751			38,769			297,420
Finance expense				(512,419	)		(1,012,302	)		(867,138	)		(1,765,370	)
Finance income				158,242			347,090			234,762			517,771
Foreign exchange, net				(1,391,779	)		(1,467,735	)		(312,621	)		(193,733	)
Derivatives				1,002,121			868,433			260,516			138,458
Finance results, net		25		(743,835	)		(1,264,514	)		(684,481	)		(1,302,874	)
(Loss) profit before taxes				(18,485	)		305,354			(11,441	)		(25,890	)
Income tax (expenses) benefits		20
Current				(36,198	)		16,187			(64,906	)		(41,339	)
Deferred				36,516			(98,921	)		28,926			(38,470	)
				318			(82,734	)		(35,980	)		(79,809	)
(Loss) profit for the period				(18,167	)		222,620			(47,421	)		(105,699	)

6

Cosan Limited

Consolidated statements of profit or loss and other comprehensive income

For the three and six month period ended June 30, 2018 and 2017

(In thousands of Brazilian Reais – R$, except earnings per share)

Other comprehensive income (loss)
Items that will never be reclassified to profit or loss
Actuarial loss on defined benefit plan			(988	)		(1,042	)		—			—
Gain on share subscription of subsidiary			—			—			—			9,000
			(988	)		(1,042	)		—			9,000
Items that are or may subsequently be reclassified to profit or loss:
Foreign currency translation effect			(196,176	)		(220,023	)		(30,302	)		(15,865	)
(Loss) gain on cash flow hedge in joint ventures			(87,271	)		(83,954	)		150,908			322,203
Changes in fair value of available for sale securities			21			53			3,194			3,323
			(283,426	)		(303,924	)		123,800			309,661
Total other comprehensive income, net of tax			(284,414	)		(304,966	)		123,800			318,661
Total comprehensive income			(302,581	)		(82,346	)		76,379			212,962
Total net (loss) income attributable to:
Owners of the Parent			22,683			128,987			(44,781	)		(23,666	)
Non-controlling interests			(40,850	)		93,633			(2,640	)		(82,033	)
			(18,167	)		222,620			(47,421	)		(105,699	)
Total comprehensive (loss) income attributable to:
Owners of the Company			(253,103	)		(123,525	)		25,637			172,401
Non-controlling interests			(49,478	)		41,179			50,742			40,561
			(302,581	)		(82,346	)		76,379			212,962
Basic earnings (losses) per share from:	23
Continuing operations		R$	0.0931		R$	0.5298		R$	(0.1692	)	R$	(0.0894	)
Diluted earnings (losses) per share from:	23
Continuing operations		R$	0.0897		R$	0.5057		R$	(0.2295	)	R$	(0.1502	)

The accompanying notes are an integral part of these consolidated interim financial statements

7

Cosan Limited

Consolidated statements of changes in equity

For the six month period ended June 30, 2018 and 2017

(In thousands of Brazilian Reais – R$)

	Share capital		Additional paid-in capital			Accumulated other comprehensive loss			Retained earnings			Equity attributable to owners of the Company			Non-controlling interest			Total equity
At December 31, 2017		5,328		3,245,543			(394,212	)		3,182,098			6,038,757			11,020,656			17,059,413
New standards, interpretations and changes adopted by the Company—Note 3.2		—		—			—			(3,950	)		(3,950	)		(4,738	)		(8,688	)
At January 1, 2018		5,328		3,245,543			(394,212	)		3,178,148			6,034,807			11,015,918			17,050,725
Profit for the period		—		—			—			128,987			128,987			93,633			222,620
Other comprehensive income:
Loss on cash flow hedge in joint ventures		—		—			(49,783	)		—			(49,783	)		(34,171	)		(83,954	)
Foreign currency translation effects		—		—			(202,551	)		—			(202,551	)		(17,472	)		(220,023	)
Actuarial loss on defined benefit plan		—		—			(215	)		—			(215	)		(827	)		(1,042	)
Change in fair value of available for sale securities		—		—			37			—			37			16			53
Total comprehensive income for the period		—		—			(252,512	)		128,987			(123,525	)		41,179			(82,346	)
Contributions by and distributions to owners of the Company:
Dividends—non-controlling interests		—		(7,106	)		—			—			(7,106	)		7,106			—
Share options exercised – Subsidiaries		—		11,071			—			—			11,071			7,427			18,498
Dividends		—		—			—			(69,621	)		(69,621	)		(71,216	)		(140,837	)
Business combination		—		—			—			—			—			2,209			2,209
Share-based payment transactions		—		21,006			—			—			21,006			4,418			25,424
Total contributions by and distributions to owners of the Company		—		24,971			—			(69,621	)		(44,650	)		(50,056	)		(94,706	)
Transactions with owners of the Company
Change of shareholding interest in subsidiary		—		(174,947	)		—			—			(174,947	)		(428,172	)		(603,119	)
at June 30, 2018		5,328		3,095,567			(646,724	)		3,237,514			5,691,685			10,578,869			16,270,554

The accompanying notes are an integral part of these consolidated interim financial statements

8

Cosan Limited

Consolidated statements of changes in equity

For the six month period ended June 30, 2018 and 2017

(In thousands of Brazilian Reais – R$)

	Share capital		Additional paid-in capital			Accumulated other comprehensive loss			Retained earnings			Equity attributable to owners of the Company			Non-controlling interest			Total equity
At January 01, 2017		5,328		4,051,591			(480,454	)		2,695,998			6,272,463			9,737,286			16,009,749
Loss for the period		—		—			—			(23,666	)		(23,666	)		(82,033	)		(105,699	)
Other comprehensive income:
Gain on cash flow hedge in joint ventures		—		—			200,523			—			200,523			121,680			322,203
Foreign currency translation effects		—		—			(12,122	)		—			(12,122	)		(3,744	)		(15,866	)
Gain on share subscription of an subsidiary		—		—			5,598			—			5,598			3,402			9,000
Change in fair value of available for sale securities		—		—			2,068			—			2,068			1,256			3,324
Total comprehensive income for the period		—		—			196,067			(23,666	)		172,401			40,561			212,962
Contributions by and distributions to owners of the Company:
Share options exercised – Subsidiaries		—		10,425			—			—			10,425			6,057			16,482
Dividends—non-controlling interests		—		(13,274	)		—			—			(13,274	)		13,274			—
Increase capital		—		—			—			—			—			2,815			2,815
Dividends		—		—			—			(64,921	)		(64,921	)		(292,020	)		(356,941	)
Share-based payment transactions		—		2,814			—			—			2,814			3,378			6,192
Total contributions by and distributions to owners of the Company		—		(35	)		—			(64,921	)		(64,956	)		(266,496	)		(331,452	)
Transactions with owners of the Company
Change of shareholding interest in subsidiary		—		(124,699	)		—			—			(124,699	)		(106,282	)		(230,981	)
At June 30, 2017		5,328		3,926,857			(284,387	)		2,607,411			6,255,209			9,405,069			15,660,278

The accompanying notes are an integral part of these consolidated interim financial statements

9

Cosan Limited

Consolidated statements of cash flows

For the six month period ended June 30, 2018 and 2017

(In thousands of Brazilian Reais – R$)

	Note		June 30, 2018			June 30, 2017
Cash flows from operating activities
Profit (loss) before taxes				305,354			(25,890	)
Adjustments for:
Depreciation and amortization				987,951			897,360
Lease and concession				100,631			95,223
Interest in earnings of associates		11		(15,638	)		(1,326	)
Interest in earnings of joint ventures		12		(348,113	)		(296,094	)
Losses on disposals of assets				869			16,791
Share-based payments				25,973			6,192
Legal proceedings provision				56,087			41,528
Indexation charges, interest and exchange, net				1,329,278			1,386,044
Provisions for employee benefits				83,579			62,067
Allowance for doubtful accounts				6,657			21,143
Deferred revenue				(4,860	)		(8,223	)
Other				(11,739	)		(13,525	)
			2,516,029			2,181,290
Changes in:
Trade receivables				(206,513	)		(6,707	)
Inventories				(63,411	)		51,831
Other taxes, net				(175,195	)		(101,345	)
Related parties				(58,274	)		9,534
Trade payables				23,307			(91,189	)
Other financial liabilities				(8,511	)		50,332
Employee benefits				(142,426	)		(99,586	)
Provision for legal proceedings				(56,191	)		(37,985	)
Judicial deposits				(31,715	)		(15,849	)
Post-employment benefits				(16,043	)		(13,209	)
Cash received on sale of credit rights				1,340,000			—
Concessions payable				(53,310	)		(55,579	)
Other assets and liabilities, net				(173,699	)		39,479
				378,019			(270,273	)
Net cash generated by operating activities				2,894,048			1,911,017
Cash flows from investing activities
Capital contribution in associates				(6,162	)		(3,967	)
Marketable securities				130,832			(1,284,457	)
Restricted cash				59,150			(18,720	)
Dividends received from associates				11,251			6,279
Dividends received from joint ventures				723,651			576,675
Put option exercised paid				—			(275,780	)
Acquisition of subsidiary, net of cash acquired				(72,985	)		—
Acquisition of property, plant and equipment and intangible assets				(1,313,437	)		(1,130,752	)
Cash received on sale of fixed assets, and intangible assets				1,369			8,097
Net cash used in investing activities				(466,331	)		(2,122,625	)

10

Cosan Limited

Consolidated statements of cash flows

For the six month period ended June 30, 2018 and 2017

(In thousands of Brazilian Reais – R$)

Cash flows from financing activities
Loans and borrowings and debentures raised	15	2,721,150		2,549,576
Amortization of principal on loans, borrowings and debentures	15	(3,821,208	)	(919,914	)
Payment of interest on loans, borrowings and debentures	15	(663,800	)	(757,662	)
Derivative financial instruments		166,524		(144,837	)
Amortization of principal on financing leases	16	(299,126	)	(210,265	)
Payment of interest on financing leases	16	(76,790	)	(159,160	)
Real estate credit certificates		(53,580	)	(64,936	)
Proceeds from issuing shares		—		1,891
Non-controlling interest subscription		4,163		20,375
Dividends paid		(579,025	)	(687,306	)
Acquisition ofnon-controlling interest		—		(10,192	)
Payments to redeem entity’s shares		(607,932	)	(25,922	)
Share options exercised—subsidiaries		18,498		16,346
Net cash used in financing activities		(3,191,126	)	(392,006	)
Decrease in cash and cash equivalents		(763,409	)	(603,614	)
Cash and cash equivalents at beginning of the period		4,555,177		4,499,588
Effect of exchange rate fluctuations on cash held		281,277		40,981
Cash and cash equivalents at end of the period		4,073,045		3,936,955
Supplemental cash flow information
Income taxes paid		59,940		10,661

The accompanying notes are an integral part of these consolidated interim financial statements

11

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

1 Operations

Cosan Limited (“Cosan”) was incorporated in Bermuda on April 30, 2007. Cosan’s class A common shares are traded on the New York Stock Exchange (NYSE) (ticker—CZZ). The BDRs (Brazilian Depositary Receipts) representing Cosan’s class A common shares are listed on the Brazilian Stock Exchange (“B3”) (ticker—CZLT33). Mr. Rubens Ometto Silveira Mello is the ultimate controlling shareholder of Cosan. Cosan controls its subsidiaries Cosan S.A.(“Cosan S.A.”) and Cosan Logística S.A. (“Cosan Logística”) through a 60.29% and 72.51% interest, respectively. Cosan, Cosan S.A., Cosan Logística and its subsidiaries are collectively referred to as the “Company.”

The Company’s primary activities are in the following business segments: (i) Piped natural gas distribution to part of the State of São Paulo through its subsidiary Companhia de Gás de São Paulo – Comgás (“Comgás”); (ii) Logistics services including transportation, port loading and storage of sugar, leasing or lending of locomotives, wagons and other railway equipment, through its indirect subsidiaries Rumo S.A. (“Rumo”), logistic segment (“Logistic”); (iii) Production and distribution of lubricants under the Mobil licensed trademark in Brazil, Bolivia, Uruguay, Paraguay and Europe market through its indirect subsidiaries Cosan Lubrificantes e Especialidades S.A. (“CLE”), Stanbridge Group Limited (“Stanbridge”), TTA—SAS Techniques et Technologie Appliquées, LubrigrupoII, S.A., Cosan Lubrificantes S.R.L, and Comma Oil & Chemicals Ltd. (“Comma”) under the Comma’s brand to the Europe and Asian market and corporate activities (“Moove”); and (iv) Other investments, in addition to the corporate structures of the Company (“Cosan Corporate”).

The Company also holds interests in two joint ventures (“JVs”): (i) Raízen Combustíveis S.A. (“Raízen Combustíveis”), a fuel distribution business, and (ii) Raízen Energia S.A. (“Raízen Energia”), which operates in the production and marketing of sugar, ethanol and energy cogeneration, produced from sugar cane bagasse.

On January 31, 2018, the Company received the amount of 1,340,000 related to sales of credit rights, as stated in the financial statements as of December 31, 2017.

On March 19, 2018, the Subsidiary Cosan S.A entered into a new agreement with ExxonMobil Lubricants Trading Company which grants our subsidiary Moove the exclusive production, import, distribution and marketing rights in Brazil, Bolivia, Paraguay and Uruguay of lubricants and certain other related products under the Mobil brand until November 30, 2038. This agreement will come into force on December 1, 2018.

On April 20, 2018, the General Meeting approved the merger of Brado Holding S.A., Rumo Malha Norte Holding Ltda. and Tezza Consultoria de Negócios Ltda. by “Rumo”, so that the merged companies will be extinguished and “Rumo” will succeed the merged ones. This transaction serves the interest of the parties and their shareholders, generating benefits to the parties by providing administrative efficiency and reducing operating costs. In addition, the incorporation of PGT S.A. was approved by ALL Armazéns Gerais Ltda.

On April 24, 2018, Raízen Combustíveis and its subsidiary Raízen Argentina Holdings S.A.U. entered into a contract for the acquisition of Shell’s downstream business in Argentina through the acquisition of 100% of the shares issued by Shell Compañía Argentina de Petróleo S.A and Energina Compañía Argentina de Petróleo S.A (“Shell Argentina”) for the amount of US$ 950,000 thousands. The consideration to be paid assumes that Shell Argentina has no indebtedness and is subject to usual adjustments, including changes in working capital and net debt, up to the closing date.

12

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Shell Argentina operates in the petroleum refining, fuel distribution, fuel reseller operations, manufacturing and commercialization of automotive and industrial lubricants, and the manufacture and sale of liquefied petroleum gas, among others.

The closing of the transaction is subject to the fulfillment of certain previous conditions, among which thecarve-out of the assets related to the operation of oil exploration and production, as well as other usual for operations of this nature.

During thesix-month period ended June 30, 2018, Raízen Combustíveis made a partial advance for the acquisition of Shell Argentina in the amount of R$ 341,000, equivalent to U.S.$ 100,000 thousand.

At May 31, 2018, Cosan through its subsidiary Comma, acquired control of the companies TTA—SAS Techniques et Technologies Appliquées and LubrigrupoII, S.A in the preliminary amount of R$ 42,650 and R$ 5,933 respectively, generating an additional goodwill in the Lubricants segment of R$ 17,131 and R$ 2,383 (Note 14), respectively. The transferred consideration, net of cash received, totaled R$ 32,583 and R$ 4,533, respectively.

On June 30, 2018, the Company, through its subsidiary Comma, supplemented the price paid on account of compliance with certain contractual conditions in which it generated an increase in consideration in the amount of R$ 31,726 (Note 14), R$ 8,111 on March 31, 2018, relating to the acquisition of the full control of Stanbridge Group Limited. In addition, after fulfilling the contractual conditions and reviewing the fair value of the transaction, the remaining balance and the additional preliminary consideration in the amount of R$ 35,869 were settled in cash. On May 31, 2018, Management made part of the allocation of the purchase price under “Customer Relations” in the amount of R$ 136,499 (Note 14).

As announced to the market, on August 2, 2018, the Civil Police of the State of Paraná lauched on July 31, 2018, the Operation “Controlled Margin” to investigate the alleged involvement of Raízen Combustíveis S.A. (“Raízen”), a joint venture formed by Cosan and Shell, in practices to control the final price of fuel sold in gas stations located in such region. On the same date, search and seizure warrants were executed and three of Raízen’s employees were temporarily arrested and on August 3, 2018, the court determined the release of them. To this moment, in view of the existing information, no irregular conduct may be attributed to Raízen or its employees. No complaints were filed against any employees of Raízen, and no court order was issued determining the freeze of any assets or funds in its bank accounts.

In parallel, also on July 31, 2018, in connection with theso-called Operation Dubai, the Prosecution Office of the Federal District filed a complaint against, among other parties, Raízen and one employee on the grounds of alleged anticompetitive practice. In said complaint, the Prosecution Office requested freeze of assets and funds of Raízen of approximately R$120,000, and such request is under analysis. Raízen is taking the necessary steps to bring the appropriate remedies against that decision. According to analysis of the Company and Raízen, based on the information available so far, the above-mentioned allegations have no factual or legal grounds the prices charged in the gas stations are set exclusively by resellers, with no interference of Raízen.

At the present date there is no definitive decision or material impact on the business and financial statements of Raízen, and for the time being, there is no evidence to show that in the future, there will be a material impact on the financial statements of Raízen.

2 Basis of preparation

2.1 Statement of compliance

The consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, as issued by the International Accounting Standards Board (IASB). They do not include all the information required for a complete set of IFRS financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Company’s financial position and performance since the last annual consolidated financial statements as at and for the year ended December 31, 2017.

13

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

The significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements as at and for the year ended December 31, 2017, except for the adoption of new standards and interpretations effective as of January 1, 2018. The Company has not early adopted any other standard, interpretation or amendment that has been issued.

All own relevant information of the interim financial statements, and only they, are being highlighted, and these correspond to those used by management in its management.

These consolidated interim financial statements were authorized for issue by the Board of Directors on August 3, 2018.

Certain amounts of the comparative balances in the statements of cash flows and in the notes 3, 5, 10, 20, 21 and 26, were reclassified to improve the level of details of disclosures in these consolidated interim financial statements. These reclassifications had inconsequential impacts on the Company´s consolidated interim financial statements.

3 Significant accounting policies

The accounting policies set out below have been applied consistently by the Company to all periods presented in this consolidated interim financial statements.

3.1 Basis of consolidation

The consolidated statements include the accounts of Cosan and its subsidiaries. Cosan’s subsidiaries are listed below:

	June 30, 2018			December 31, 2017
Directly owned subsidiaries
Cosan Logística S.A.		72.51	%		72.53	%
Cosan S.A.		60.29	%		58.21	%
Interest of Cosan S.A. in its subsidiaries
Companhia de Gás de São Paulo – Comgás(ii)		80.12	%		79.87	%
Cosan Biomassa S.A.(i)		100.00	%		100.00	%
Cosan Cayman II Limited		100.00	%		100.00	%
Cosan Global Limited		100.00	%		100.00	%
Cosan Investimentos e Participações S.A.		100.00	%		100.00	%
Cosan Lubes Investments Limited(i)		100.00	%		100.00	%
Comma Oil Chemicals Limited		100.00	%		100.00	%
Airport Energy Limited		100.00	%		100.00	%
Airport Energy Services Limited		100.00	%		100.00	%
Wessesx Petroleum Limited		100.00	%		100.00	%
Stanbridge Group Limited		100.00	%		100.00	%
TTA—SAS Techniques et Technologies Appliquées(iv)		75.00	%		—
Cosan Lubrificantes S.R.L(iv)		100,00	%		—
LubrigrupoII, S.A(iv)		100,00	%		—
Cosan Lubrificantes e Especialidades S.A.		100.00	%		100.00	%
Cosan Luxembourg S.A.		100.00	%		100.00	%
Cosan Overseas Limited		100.00	%		100.00	%
Cosan Paraguay S.A.		100.00	%		100.00	%
Cosan U.S., Inc.		100.00	%		100.00	%
Ilha Terminal Distribuição de Produtos Químicos		100.00	%		100.00	%
Pasadena Empreendimentos e Participações S.A.(i)		100.00	%		100.00	%
Zip Lube S.A.		100.00	%		100.00	%
Rumo S.A.		1.71	%		1.71	%

14

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	June 30, 2018		December 31, 2017
Interest of Cosan Logística S.A. in its subsidiaries
Rumo S.A.	28.47	%	28.47	%
Logispot Armazéns Gerais S.A.	14.52	%	14.52	%
Elevações Portuárias S.A.	28.47	%	28.47	%
Rumo Luxembourg Sarl	28.47	%	28.47	%
Rumo Intermodal S.A.	28.47	%	28.47	%
Rumo Malha Oeste S.A.	28.47	%	28.47	%
Rumo Malha Paulista S.A.	28.47	%	28.47	%
Rumo Malha Sul S.A.	28.47	%	28.47	%
Rumo Malha Norte S.A.	28.33	%	28.33	%
Boswells S.A.	28.47	%	28.47	%
Brado Holding S.A.(iii)	—		28.47	%
ALL Serviços Ltda.(iii)	—		28.47	%
ALL Argentina S.A.	28.47	%	28.47	%
Paranaguá S.A.	28.47	%	28.47	%
ALL Armazéns Gerais Ltda.	28.47	%	28.47	%
Portofer Ltda.	28.47	%	28.47	%
Brado Logística e Participações S.A.	17.71	%	17.71	%
Brado Logística S.A.	17.71	%	17.71	%
ALL Mesopotâmica S.A.	20.09	%	20.09	%
ALL Central S.A.	20.94	%	20.94	%
Servicios de Inversion Logistica Integrales S.A.	28.47	%	28.47	%
PGT S.A.(iii)	—		28.47	%

(i) Management has concluded that there are no material uncertainties that cast doubt on the continuity of the subsidiaries. Although they had a combined amount of uncovered liabilities of R$ 155,618 as of June 30, 2018, no events or conditions were identified that individually or collectively could raise significant doubts related to their ability to maintain their operational continuity. The subsidiaries have the financial support of the subsidiary Cosan S.A.

(ii) As of June 30, 2018, the Company increased its interest, in Comgás to 80.12% due to the capital increase arising from the partial use of the goodwill tax benefit, according to Ordinary / Extraordinary General Meeting of April 25, 2018, of the subsidiary Comgás. As a consequence, a loss in shareholders’ equity was recognized in the total amount of R$ 7,888.

(iii) As mentioned in Note 1, the merger of Brado Holding S.A., Rumo Malha Norte Holding Ltda. and Tezza Consultoria de Negócios Ltda. (“ALL Serviços Ltda.”) By “Rumo.” In addition, the incorporation of PGT S.A. by ALL Armazéns Gerais Ltda.

(iv) Acquisition of control of companies in the Lubricants segment as described in the note 1.

3.2 New standards, interpretations and changes adopted by the Company

Although these new standards and amendment below apply for the first time in 2018, they do not have a material impact on the Company’s annual or interim consolidated financial statements. The nature and impact of each new standard or change are described below:

a) IFRS 15—Customer Contract Revenue

IFRS 15 includes as a fundamental principle the recognition of revenue when goods or services are transferred to customers at the transaction price. Revenue is recognized according to this principle by applying a 5 step model:

• Step 1: Identify the contracts with the costumer;

• Step 2: Identify the performance obligations defined in the contract;

15

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

• Step 3: Determine the price of the transaction;

• Step 4: Allocate the price of the transaction to the performance obligations provided for in the agreement; and

• Step 5: Recognize revenue when (or as) the entity meets each performance obligation.

When evaluating contracts with customers, the Company uses judgment to identify whether contracts can be combined, whether there are contract modifications, determine different goods and services, and whether performance obligations are satisfied over time or at a point in time, if there are implicit rebates on the contact and determine significant funding components. In addition, the Company uses estimates when determining the variable consideration and its individual sales prices when using the allocation methodology.

The Company records all its sales of goods and services only when a firm sales contract is in effect, delivery occurred or services were rendered and collection of the fixed or determinable sales price is reasonably estimate. Agreements for the sale of goods and services sometimes include multiple components. Most of the Company’s multi-component agreements involve the sale of goods and services in the Lubricants segment. The multi-component agreements usually involve an initial supply of finished products and basic oil and territorial concession and storage services. In such agreements, the selling price is determined for each component and any difference between the total of the separate selling prices and the total consideration of the contract (ie discount) is allocated proportionally in each of the components of the agreement. The value attributed to each component is determined objectively and is obtained, primarily, from sources such as the separate selling price for the same item, a similar item or competing prices for similar items. If such evidence is not available, we use our best estimate of selling price, which is set according to the pricing strategy of the business and considers product configuration, geography, customer type and other specific market factors. In agreements which the Company sells products that give the customer a right of return, we use our experience to estimate and arrange those returns when we record the sale. In situations where sales include customer acceptance forecasts based on objective vendor or customer criteria, we recognize revenue when we reliably demonstrate that all specified acceptance criteria have been met or when formal acceptance occurs respectively. Unless stated otherwise, we do not estimate anticipated losses before recording sales.

The Company recognizes revenue from contracts of gas distribution services, construction revenue (under IFRIC 12) and logistics solutions. We estimate total contract revenue net of price concessions, as well as the total contract costs. For the construction revenues that are related to concession contracts, we recognize the revenue and costs at the moment of completion of the work. We routinely update our forward cost estimates for ongoing contracts and report any cumulative effects of such adjustments on current operations. We record any expected loss in these agreements when such loss it is probable. The Company recognizes revenue from logistics services in the issuance of the invoice, which is at the time of delivery of the products to Rumo to perform the service. Significant components of our revenue and cost estimates include prices and guarantees related to performance, as well as material, labor, and overhead costs. We record any expected loss in these agreements when such loss it is probable.

The Company has applied IFRS 15 in accordance with the retrospective method with cumulative transitional effect. In the evaluation of the Company, no effects of the adoption of IFRS 15, which affected these interim financial statements, were identified, except for the reclassification of commission’s expenses in the amount of R$ 37,813 to reduce the revenue previously recorded in selling expenses. In the period ended June 30, 2017, the amount of R$ 46,836 was recorded as selling expenses.

16

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) IFRS 9—Financial Instruments

IFRS 9 Financial Instruments replaces IAS 39 Financial Instruments: Recognition and Measurement for annual periods beginning on or after January 1, 2018, bringing together all three aspects of accounting for financial instruments: (i) classification and measurement; (ii) impairment; and (iii) hedge accounting.

The Company applied IFRS 9 with the initial application date of January 1, 2018, retrospectively, except as described below:

• The Company has adopted the exception of notre-presenting comparative information from previous periods regarding the classification and measurement requirements (including impairment). Differences in the balances of financial assets and liabilities arising from the adoption of IFRS9 were recorded in retained earnings and reserves on January 1, 2018. Thus, the information presented for 2017 generally does not reflect the requirements of IFRS 9, but the requirements of IAS 39.

• Certain definitions were made based on the facts and circumstances existing at the date of initial application: i) determination of the business model in which a financial asset is held; ii) the designation and revocation of prior designations of certain financial assets and liabilities as measured at fair value through profit or loss.

• All hedge relationship designations in accordance with IAS 39 existing as of December 31, 2017 meet the hedging criteria in accordance with IFRS 9 as of January 1, 2018 and are therefore designated as continuing hedge relationships.

The effect of the adoption of IFRS 9 is as follows:

Assets
Trades receivables	R$	(11,520	)
Investments in joint ventures	R$	(1,340	)
Deferred tax	R$	4,172
Equity
Retained earnings	R$	8,688

(a) Classification and measurement

The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Under IFRS 9, debt financial instruments are subsequently measured at fair value through profit or loss (FVPL), amortized cost, or fair value through other comprehensive income (FVOCI).

The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the “SPPI criterion”).

The Company recognizes its financial assets at amortized cost for financial assets that are kept within a business model with the objective of obtaining contractual cash flows that meet the “SPPI criterion.” This category includes trade accounts receivable, cash and cash equivalents, restricted cash, receivables from related parties, other financial assets and dividends and interest on shareholders’ equity receivable. No new measurement of financial assets was carried out.

17

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

The evaluation of the Company’s business models was carried out from the date of initial application on January 1, 2018 and retrospectively applied to financial assets that were not derecognized before January 1, 2018. The assessment of whether cash flows contractual debt instruments are solely composed of principal and interest were made based on the facts and circumstances as in the initial recognition of the assets.

The accounting of the Company’s financial liabilities remains basically the same as those of IAS 39. Similar to the requirements of IAS 39, IFRS 9 requires contingent consideration to be treated as financial instruments measured at fair value with changes in fair value recognized in profit or loss.

The embedded derivatives are not separated from the related financial asset. Instead, financial assets are classified based on their contractual terms and the Company’s business model.

The accounting of embedded derivatives in financial liabilities and innon-financial related contracts did not change from that required by IAS 39.

(b) Impairment

The adoption of IFRS 9 has fundamentally changed the Company’s accounting for impairment losses for financial assets by replacing IAS 39’s incurred loss approach with a forward-looking expected credit loss (ECL) approach.

The Company recognizes a provision for expected credit loss for its accounts receivable. The simplified standard approach is applied and the expected credit losses for the entire life of the asset are calculated. The Company has established a provisioning matrix that is based on the historical experience of credit loss of each business segment, adjusted for specific prospective factors for the debtors and for the economic environment.

The adoption of the expected credit loss requirements of IFRS 9 resulted in a rise in the Company’s provisions for losses of R$ 11,520. The rise in the provision resulted in adjustment to retained earnings in the amount of R$ 8,688.

(c) Hedge accounting

The Company applied the changes of hedge accounting prospectively. At the date of initial application, all of the Company’s existing hedging relationships were eligible to be treated as continuing hedging relationships. Consistent with previous periods, the Company continued to designate the change in the fair value of the entire forward contract in the Company’s cash flow hedge relationships and, as such, the adoption of the hedge accounting requirements of IFRS 9 had no significant impact on the Company’s consolidated interim financial statements.

According to IAS 39, all gains and losses arising from the Company’s cash flow hedge relationships were eligible to be subsequently reclassified to income. However, in accordance with IFRS 9, the gains and losses resulting from cash flow hedge of the expected purchases ofnon-financial assets need to be incorporated into the initial book values ofnon-financial assets. Therefore, after the adoption of IFRS 9, the net cash flow hedge gain or loss was presented under “Other comprehensive income not being reclassified to income”. This amendment applies only prospectively from the date of initial application of IFRS 9 and has no impact on the presentation of comparative figures.

In the evaluation of the Company, in terms of hedge accounting, no effects of its adoption were identified in this interim financial statement.

18

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

3.3 Non-cash transaction

During the period ended June 30, 2018, the Company carried out the following transactions that did not involve cash and are therefore not reflected in the statement of cash flows:

• Capital increase in subsidiary Moove, with payment in installments, to be settle during the year, in the amount of R$ 65,000; and

• Forward purchase of property, plant and equipment in the amount of R$ 2,431.

4 New standards and interpretations not yet effective

The follow standard is effective for annual periods beginning after January 1, 2019, however The Company has not early adopted it in preparing these consolidated interim financial statements.

a) IFRS 16 Leases

IFRS 16 introduces a single model for the accounting of leases in the balance sheet for tenants. A lessee recognizes a right of use asset that represents his right to use the leased asset and a lease liability that represents his obligation to make lease payments. Optional exemptions are available for short-term leases and low value items. The lessor’s accounting remains similar to the current standard, that is, lessors continue to classify leases as financial or operating.

IFRS 16 replaces existing lease standards, including IAS 17 Leasing Operations and IFRIC 4, SIC 15 and SIC 27 Complementary Aspects of Leasing Operations.

The standard is effective for annual periods beginning on or after January 1, 2019. Early adoption is permitted only for financial statements in accordance with IFRSs and only for entities that apply IFRS 15 Revenue from Contracts with Customers or before the date of initial application of IFRS 16.

The Company began an assessment of the potential impact on its financial statements. So far, was identified that the subsidiary Rumo and Comgás will recognize new assets and liabilities for its operating leases. In the jointly-owned subsidiary Raízen, it is expected to have significant impacts on land leases. In addition, the nature of the expenses related to these leases will be changed, since IFRS 16 replaces the line operating lease expense due to depreciation of the right of use and interest on the lease liabilities. The Company has not yet decided whether to use the optional exemptions.

As a lessee, the Company may apply the standard using a:

i. Retrospective approach; or

ii. Modified retrospective approach with optional practical expedients.

The lessee will apply this choice consistently to all of its leases. The Company should apply IFRS 16 initially on January 1, 2019. The Company has not yet determined which transition approach to apply.

The Company has not yet quantified the impact of adopting IFRS 16 on its assets and liabilities. The quantitative effect of the adoption of IFRS 16 will depend specifically on the transition method chosen, the use of practical expedients and recognition exemptions, and any additional leases that the Company will enter into. The Company expects to disclose its transition approach and quantitative information prior to adoption.

There are no other IFRS standards or IFRIC interpretations that have not come into effect and are expected to have a material impact on the Company.

19

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

5 Operating segments

The following segment information is used by Cosan’s senior management (the “Chief Operating Decision Maker”) to assess the performance of the operating segments and to make decisions with regards to the allocation of resources. This information is prepared on a basis consistent with the accounting policies used in the preparation of the financial statements. Cosan evaluates the performance of its operating segments based on the measure of Earnings Before Interest Tax, Depreciation and Amortization (“EBITDA”). A reconciliation of EBITDA to profit (loss) is presented below.

Reported segments

i. Raízen Energia: production and marketing of a variety of products derived from sugar cane, including raw sugar (VHP), anhydrous and hydrated ethanol, and activities related to energy cogeneration from sugarcane bagasse. In addition, this segment holds interests in companies engaged in research and development on new technology;

ii. Raízen Combustíveis: distribution and marketing of fuels, mainly through a franchised network of service stations under the brand Shell throughout Brazil;

iii. Comgás: distribution of piped natural gas to part of the State of São Paulo (approximately 180 municipalities, including the region called Greater São Paulo) to customers in the industrial, residential, commercial, automotive, thermo generation and cogeneration sectors;

iv. Logistic: logistics services for transport, storage and port loading of commodities, mainly for sugar products, leasing or lending of locomotives, wagons and other railway equipment; and

v. Moove: production and distribution of lubricants, through its indirect subsidiaries Cosan Lubrificantes e Especialidades S.A. (“CLE”), Stanbridge Group Limited (“Stanbridge”), TTA—SAS Techniques et Technologies Appliquées, LubrigrupoII, S.A. e Cosan Lubrificantes S.R.L, under the Mobil licensed trademark in Brazil, Bolivia, Uruguay, Paraguay and Europe market, and Comma Oil & Chemicals Ltd. (“Comma”) under the Comma’s brand to the Europe and Asian market and corporate activities (“Moove”).

Reconciliation

vi. Cosan Corporate:other investments, in addition to the corporate activities of the Company. The Cosan Corporate segment’s includes the subsidiaries responsible for raising funds for the group.

Although Raízen Energia and Raízen Combustíveis are equity accounted joint ventures and are no longer proportionally consolidated since adoption of IFRS 11, senior management continues to review segment information. A reconciliation of these segments is presented in the column “Deconsolidated effects IFRS 11.”

The following statement of financial position and profit or loss selected information by segment was prepared on the same basis as the accounting practices used in the preparation of consolidated information:

20

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	April 1, 2018 to June 30, 2018
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of income or loss:
Net sales		4,091,556			19,594,604			1,592,803			826,673			1,664,545			29			(23,686,160	)		(9,559	)		4,074,491			2,419,504			1,664,545
Domestic market		2,616,400			19,594,604			1,592,803			804,300			1,574,137			29			(22,211,004	)		(9,559	)		3,961,710			2,397,131			1,574,137
External market		1,475,156			—			—			22,373			90,408			—			(1,475,156	)		—			112,781			22,373			90,408
Cost of sales		(3,790,328	)		(18,824,974	)		(1,140,367	)		(666,065	)		(1,116,424	)		—			22,615,302			9,559			(2,913,297	)		(1,806,431	)		(1,116,424	)
Gross profit		301,228			769,630			452,436			160,608			548,121			29			(1,070,858	)		—			1,161,194			613,073			548,121
Selling expenses		(184,954	)		(339,826	)		(152,090	)		(93,034	)		(2,407	)		(1	)		524,780			—			(247,532	)		(245,125	)		(2,407	)
General and administrative expenses		(155,960	)		(115,004	)		(81,824	)		(36,792	)		(68,180	)		(49,558	)		270,964			—			(236,354	)		(152,865	)		(68,180	)
Other income (expense), net		50,838			97,412			(4,065	)		(2,987	)		(4,144	)		(9,663	)		(148,250	)		—			(20,859	)		(16,716	)		(4,144	)
Financial results		(115,652	)		(260,074	)		(65,925	)		5,336			(459,566	)		(223,680	)		375,726			—			(743,835	)		(361,636	)		(459,566	)
Finance expense		(246,890	)		(41,680	)		(135,020	)		(10,162	)		(297,915	)		(71,058	)		288,570			1,736			(512,419	)		(208,129	)		(297,915	)
Finance income		171,292			49,830			69,402			2,305			51,287			36,984			(221,122	)		(1,736	)		158,242			129,538			51,287
Foreign exchange losses, net		(141,466	)		(767,074	)		(93,241	)		(17,457	)		(620,168	)		(660,913	)		908,540			—			(1,391,779	)		(752,669	)		(620,168	)
Derivatives		101,412			498,850			92,934			30,650			407,230			471,307			(600,262	)		—			1,002,121			469,624			407,230
Interest in earnings of associates		(1,402	)		—			—			9,236			3,785			56,527			1,402			(51,104	)		18,444			14,659			3,785
Interest in earnings of joint ventures		—			—			—			—			—			50,457			—			—			50,457			50,457			—
Income tax expense benefit		82,052			(22,308	)		(54,641	)	��	(7,846	)		(52,642	)		115,447			(59,744	)		—			318			52,707			(52,642	)
(Loss) profit from continuing operations		(23,850	)		129,830			93,891			34,521			(35,033	)		(60,442	)		(105,980	)		(51,104	)		(18,167	)		(45,446	)		(35,033	)
Total net income attributable to:
Owners of the Parent		(23,832	)		124,646			75,147			34,365			(10,675	)		(60,602	)		(100,814	)		(15,552	)		22,683			(64,345	)		(10,675	)
Non-controlling interests		(18	)		5,184			18,744			156			(24,358	)		160			(5,166	)		(35,552	)		(40,850	)		18,899			(24,358	)
		(23,850	)		129,830			93,891			34,521			(35,033	)		(60,442	)		(105,980	)		(51,104	)		(18,167	)		(45,446	)		(35,033	)
Other selected data:
Depreciation and amortization		430,106			30,590			116,356			28,479			365,937			3,886			(460,696	)		—			514,658			148,640			365,937
EBITDA		439,856			442,802			330,813			65,510			843,112			51,677			(882,658	)		(51,104	)		1,240,008			412,123			843,112
Additions to PP&E, intangible and biological assets		480,470			496,982			123,312			10,136			556,122			388			(977,452	)		—			689,958			111,916			556,122
Reconciliation of EBITDA:
(Loss) profit for the period		(23,850	)		129,830			93,891			34,521			(35,033	)		(60,442	)		(105,980	)		(51,104	)		(18,167	)		(45,446	)		(35,033	)
Income tax and social contribution		(82,052	)		22,308			54,641			7,846			52,642			(115,447	)		59,744			—			(318	)		(52,707	)		52,642
Financial result, net		115,652			260,074			65,925			(5,336	)		459,566			223,680			(375,726	)		—			743,835			361,636			459,566
Depreciation and amortization		430,106			30,590			116,356			28,479			365,937			3,886			(460,696	)		—			514,658			148,640			365,937
EBITDA		439,856			442,802			330,813			65,510			843,112			51,677			(882,658	)		(51,104	)		1,240,008			412,123			843,112

21

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	January 1, 2018 to June 30, 2018
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of profit or loss:
Net sales		8,604,494			39,089,576			3,023,679			1,551,245			3,061,228			430			(47,694,070	)		(18,663	)		7,617,919			4,575,346			3,061,228
Domestic market		5,543,056			39,089,576			3,023,679			1,514,594			2,924,889			430			(44,632,632	)		(18,663	)		7,444,929			4,538,695			2,924,889
External market		3,061,438			—			—			36,651			136,339			—			(3,061,438	)		—			172,990			36,651			136,339
Cost of sales		(7,735,380	)		(37,346,658	)		(2,082,799	)		(1,244,562	)		(2,117,138	)		(140	)		45,082,038			18,663			(5,425,976	)		(3,327,493	)		(2,117,138	)
Gross profit		869,114			1,742,918			940,880			306,683			944,090			290			(2,612,032	)		—			2,191,943			1,247,853			944,090
Selling expenses		(340,048	)		(684,928	)		(306,555	)		(179,811	)		(6,234	)		(1	)		1,024,976			—			(492,601	)		(486,366	)		(6,234	)
General and administrative expenses		(329,374	)		(250,332	)		(158,596	)		(59,435	)		(137,795	)		(93,879	)		579,706			—			(449,705	)		(281,666	)		(137,795	)
Other income (expense), net		159,296			196,796			(4,318	)		(4,094	)		(8,539	)		(26,569	)		(356,092	)		—			(43,520	)		(34,981	)		(8,539	)
Financial results		(151,946	)		(332,440	)		(87,555	)		(3,696	)		(808,392	)		(364,871	)		484,386			—			(1,264,514	)		(469,093	)		(808,392	)
Finance expense		(445,772	)		(35,710	)		(231,884	)		(17,290	)		(640,820	)		(125,583	)		481,482			3,275			(1,012,302	)		(320,668	)		(640,820	)
Finance income		310,068			98,626			142,733			5,272			126,885			75,475			(408,694	)		(3,275	)		347,090			245,228			126,885
Foreign exchange losses, net		(135,124	)		(854,154	)		(87,826	)		(19,290	)		(633,141	)		(727,478	)		989,278			—			(1,467,735	)		(790,755	)		(633,141	)
Derivatives		118,882			458,798			89,422			27,612			338,684			412,715			(577,680	)		—			868,433			397,102			338,684
Interest in earnings of associates		(5,560	)		—			—			4,176			5,165			383,527			5,560			(377,230	)		15,638			10,469			5,165
Interest in earnings of joint ventures		—			—			—			—			—			348,113			—			—			348,113			348,113			—
Income tax (expense) benefit		9,658			(165,164	)		(130,989	)		(16,325	)		(81,028	)		145,608			155,506			—			(82,734	)		(2,062	)		(81,028	)
Profit (loss) from continuing operations		211,140			506,850			252,867			47,498			(92,733	)		392,218			(717,990	)		(377,230	)		222,620			332,267			(92,733	)
Total net income attributable to:
Owners of the Company		211,146			486,452			202,127			47,342			(26,900	)		387,501			(697,598	)		(481,083	)		128,987			281,371			(26,900	)
Non-controlling interests		(6	)		20,398			50,740			156			(65,833	)		4,717			(20,392	)		103,853			93,633			50,896			(65,833	)
		211,140			506,850			252,867			47,498			(92,733	)		392,218			(717,990	)		(377,230	)		222,620			332,267			(92,733	)
Other selected data:
Depreciation and amortization		1,041,694			100,790			233,772			49,335			697,057			7,787			(1,142,484	)		—			987,951			290,741			697,057
EBITDA		1,395,122			1,105,244			705,183			116,854			1,493,744			619,268			(2,500,366	)		(377,230	)		2,557,819			1,094,163			1,493,744
Additions to PP&E, intangible and biological assets		1,496,676			585,750			251,627			21,334			1,039,864			612			(2,082,426	)		—			1,313,437			273,639			1,039,864
Reconciliation of EBITDA:
Profit (loss) for the period		211,140			506,850			252,867			47,498			(92,733	)		392,218			(717,990	)		(377,230	)		222,620			332,267			(92,733	)
Income tax and social contribution		(9,658	)		165,164			130,989			16,325			81,028			(145,608	)		(155,506	)		—			82,734			2,062			81,028
Financial result, net		151,946			332,440			87,555			3,696			808,392			364,871			(484,386	)		—			1,264,514			469,093			808,392
Depreciation and amortization		1,041,694			100,790			233,772			49,335			697,057			7,787			(1,142,484	)		—			987,951			290,741			697,057
EBITDA		1,395,122			1,105,244			705,183			116,854			1,493,744			619,268			(2,500,366	)		(377,230	)		2,557,819			1,094,163			1,493,744

22

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	April 1, 2017 to June 30, 2017
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			COMGÁS			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of income or loss:
Net sales		3,105,914			17,264,040			1,359,665			511,466			1,506,143			183			(20,369,954	)		(8,950	)		3,368,507			1,871,281			1,506,143
Domestic market		1,726,017			17,264,040			1,359,665			399,717			1,426,995			183			(18,990,057	)		(8,950	)		3,177,610			1,759,532			1,426,995
External market		1,379,897			—			—			111,749			79,148			—			(1,379,897	)		—			190,897			111,749			79,148
Cost of sales		(3,095,884	)		(16,499,280	)		(866,811	)		(354,429	)		(989,334	)		(548	)		19,595,164			8,950			(2,202,172	)		(1,221,755	)		(989,334	)
Gross profit		10,030			764,760			492,854			157,037			516,809			(365	)		(774,790	)		—			1,166,335			649,526			516,809
Selling expenses		(186,415	)		(327,978	)		(164,243	)		(99,902	)		(17,285	)		(5	)		514,393			—			(281,435	)		(264,150	)		(17,285	)
General and administrative expenses		(128,491	)		(102,422	)		(81,081	)		(21,175	)		(65,877	)		(34,776	)		230,913			—			(202,909	)		(137,210	)		(65,877	)
Other (expense) income, net		(7,733	)		225,052			(9,308	)		(314	)		(2,211	)		(35,887	)		(217,319	)		—			(47,720	)		(45,509	)		(2,211	)
Financial results		(98,083	)		(71,169	)		(41,192	)		(4,377	)		(432,864	)		(206,048	)		169,252			—			(684,481	)		(256,940	)		(432,864	)
Finance expense		(231,311	)		(69,598	)		(141,297	)		(11,097	)		(459,653	)		(255,091	)		300,909			—			(867,138	)		(383,937	)		(459,653	)
Finance income		206,246			25,989			100,180			8,739			78,996			46,847			(232,235	)		—			234,762			157,169			78,996
Foreign exchange losses, net		(13,790	)		(159,127	)		(42,378	)		(7,547	)		(128,958	)		(133,738	)		172,917			—			(312,621	)		(213,937	)		(128,958	)
Derivatives		(59,228	)		131,567			42,303			5,528			76,751			135,934			(72,339	)		—			260,516			183,765			76,751
Interest in earnings of associates		(10,494	)		—			—			(2,568	)		1,412			43,411			10,494			(43,883	)		(1,628	)		(3,042	)		1,412
Interest in earnings of joint ventures		—			—			—			—			—			40,397			—			—			40,397			40,397			—
Income tax expense benefit		171,283			(143,768	)		(70,815	)		(10,775	)		(30,808	)		76,418			(27,515	)		—			(35,980	)		(12,220	)		(30,808	)
(Loss) profit from continuing operations		(249,903	)		344,475			126,215			17,926			(30,824	)		(116,855	)		(94,572	)		(43,883	)		(47,421	)		(29,148	)		(30,824	)
Total net income attributable to:
Owners of the Parent		(249,903	)		329,889			80,018			17,926			(9,550	)		(117,181	)		(79,986	)		(15,994	)		(44,781	)		(76,041	)		(9,550	)
Non-controlling interests		—			14,586			46,197			—			(21,274	)		326			(14,586	)		(27,889	)		(2,640	)		46,893			(21,274	)
		(249,903	)		344,475			126,215			17,926			(30,824	)		(116,855	)		(94,572	)		(43,883	)		(47,421	)		(29,148	)		(30,824	)
Other selected data:
Depreciation and amortization		505,515			162,420			128,070			19,901			298,739			4,095			(667,935	)		—			450,805			152,066			298,739
EBITDA		182,412			721,832			366,292			52,979			731,587			16,870			(904,244	)		(43,883	)		1,123,845			392,078			731,587
Additions to PP&E, intangible and biological assets		410,813			159,978			102,727			5,034			478,181			2,163			(570,791	)		—			588,105			109,215			478,181
Reconciliation of EBITDA:
(Loss) profit for the period		(249,903	)		344,475			126,215			17,926			(30,824	)		(116,855	)		(94,572	)		(43,883	)		(47,421	)		(29,148	)		(30,824	)
Income tax and social contribution		(171,283	)		143,768			70,815			10,775			30,808			(76,418	)		27,515			—			35,980			12,220			30,808
Financial result, net		98,083			71,169			41,192			4,377			432,864			206,048			(169,252	)		—			684,481			256,940			432,864
Depreciation and amortization		505,515			162,420			128,070			19,901			298,739			4,095			(667,935	)		—			450,805			152,066			298,739
EBITDA		182,412			721,832			366,292			52,979			731,587			16,870			(904,244	)		(43,883	)		1,123,845			392,078			731,587

23

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	January 1, 2017 to June 30, 2017
	Reported segments															Reconciliation												Additional information
	Raízen Energia			Raízen Combustíveis			Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment eliminations / adjustments			Total consolidated			Cosan S.A			Cosan Logística
Statement of profit or loss:
Net sales		6,019,148			34,962,194			2,505,932			958,162			2,705,317			362			(40,981,342	)		(15,535	)		6,154,238			3,464,422			2,705,317
Domestic market		3,343,013			34,962,194			2,505,932			757,911			2,577,951			362			(38,305,207	)		(15,535	)		5,826,621			3,264,171			2,577,951
External market		2,676,135			—			—			200,251			127,366			—			(2,676,135	)		—			327,617			200,251			127,366
Cost of sales		(5,328,028	)		(33,246,205	)		(1,586,931	)		(668,415	)		(1,920,186	)		(1,615	)		38,574,233			15,534			(4,161,613	)		(2,256,929	)		(1,920,186	)
Gross profit		691,120			1,715,989			919,001			289,747			785,131			(1,254	)		(2,407,109	)		—			1,992,625			1,207,493			785,131
Selling expenses		(330,717	)		(642,079	)		(332,030	)		(187,291	)		(19,640	)		(57	)		972,796			—			(539,018	)		(519,378	)		(19,640	)
General and administrative expenses		(287,252	)		(218,664	)		(158,194	)		(41,394	)		(129,185	)		(81,510	)		505,916			—			(410,283	)		(274,127	)		(129,185	)
Other (expense) income, net		(93,027	)		179,275			(9,889	)		(168	)		(4,405	)		(49,298	)		(86,248	)		—			(63,760	)		(59,354	)		(4,405	)
Financial results		36,980			(243,286	)		(82,616	)		(24,175	)		(884,077	)		(312,006	)		206,306			—			(1,302,874	)		(391,977	)		(884,077	)
Finance expense		(451,555	)		(119,869	)		(356,319	)		(18,386	)		(948,040	)		(442,625	)		571,424			—			(1,765,370	)		(807,496	)		(948,040	)
Finance income		380,211			70,589			273,956			12,663			122,641			108,511			(450,800	)		—			517,771			423,895			122,641
Foreign exchange losses, net		(39,177	)		(49,907	)		(13,664	)		(3,625	)		(128,464	)		(47,980	)		89,084			—			(193,733	)		(77,048	)		(128,464	)
Derivatives		147,501			(144,099	)		13,411			(14,827	)		69,786			70,088			(3,402	)		—			138,458			68,672			69,786
Interest in earnings of associates		(47,771	)		—			—			(4,147	)		3,158			181,244			47,771			(178,929	)		1,326			(1,834	)		3,158
Interest in earnings of joint ventures		—			—			—			—			—			296,094			—			—			296,094			296,094			—
Income tax (expense) benefit		93,711			(233,167	)		(126,529	)		(13,513	)		(30,633	)		90,866			139,456			—			(79,809	)		(49,562	)		(30,633	)
Profit (loss) from continuing operations		63,044			558,068			209,743			19,059			(279,651	)		124,079			(621,112	)		(178,929	)		(105,699	)		207,355			(279,651	)
Total net income attributable to:
Owners of the Company		63,044			529,784			132,359			19,059			(80,473	)		117,445			(592,828	)		(212,056	)		(23,666	)		129,273			(80,473	)
Non-controlling interests		—			28,284			77,384			—			(199,178	)		6,634			(28,284	)		33,127			(82,033	)		78,082			(199,178	)
		63,044			558,068			209,743			19,059			(279,651	)		124,079			(621,112	)		(178,929	)		(105,699	)		207,355			(279,651	)
Other selected data:
Depreciation and amortization		954,248			312,590			260,818			39,553			588,704			8,285			(1,266,838	)		—			897,360			308,657			588,704
EBITDA		886,601			1,347,111			679,706			96,300			1,223,763			353,504			(2,233,712	)		(178,929	)		2,174,344			957,551			1,223,763
Additions to PP&E, intangible and biological assets		1,300,558			418,803			171,447			6,770			950,064			2,471			(1,719,361	)		—			1,130,752			179,979			950,064
Reconciliation of EBITDA:
Profit (loss) for the period		63,044			558,068			209,743			19,059			(279,651	)		124,079			(621,112	)		(178,929	)		(105,699	)		207,355			(279,651	)
Income tax and social contribution		(93,711	)		233,167			126,529			13,513			30,633			(90,866	)		(139,456	)		—			79,809			49,562			30,633
Financial result, net		(36,980	)		243,286			82,616			24,175			884,077			312,006			(206,306	)		—			1,302,874			391,977			884,077
Depreciation and amortization		954,248			312,590			260,818			39,553			588,704			8,285			(1,266,838	)		—			897,360			308,657			588,704
EBITDA		886,601			1,347,111			679,706			96,300			1,223,763			353,504			(2,233,712	)		(178,929	)		2,174,344			957,551			1,223,763

24

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	June 30, 2018
	Reported segments															Reconciliation												Additional information
Statement of financial position:	Raízen Energia			Raízen Combustíveis			Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan S.A			Cosan Logística
Cash and cash equivalents		2,351,476			691,695			1,376,192			146,742			83,907			2,466,204			(3,043,171	)		—			4,073,045			3,144,354			83,907
Marketable securities		—			—			1,090,901			8,993			2,488,020			216,792			—			—			3,804,706			1,316,650			2,488,020
Trade receivables		822,618			2,504,378			752,655			437,479			402,122			6			(3,326,996	)		—			1,592,262			1,190,140			402,122
Derivative financial instruments		813,830			506,483			408,245			27,427			480,484			824,388			(1,320,313	)		—			1,740,544			1,251,159			480,484
Inventories		2,001,259			2,427,576			69,142			336,171			354,188			2,276			(4,428,835	)		—			761,777			407,589			354,188
Other financial assets		395,887			—			—			—			—			—			(395,887	)		—			—			376,925			—
Other current assets		3,605,787			2,284,918			291,585			95,358			490,644			592,095			(5,890,705	)		(303,795	)		1,165,887			714,495			490,644
Othernon-current assets		4,065,011			3,524,472			347,822			77,776			2,692,563			1,059,352			(7,589,483	)		(1,435	)		4,176,078			1,483,512			2,692,563
Investments in associates		357,967			341,010			—			18,052			39,357			11,924,957			(698,977	)		(11,637,151	)		345,215			305,858			39,357
Investments in joint ventures		—			—			—			—			—			8,022,046			—			—			8,022,046			8,022,046			—
Biological assets		838,770			—			—			—			—			—			(838,770	)		—			—			—			—
Property, plant and equipment		11,358,109			2,280,671			—			276,783			11,667,811			138,945			(13,638,780	)		—			12,083,539			412,969			11,667,811
Intangible assets and goodwill		3,586,709			2,073,704			8,469,686			894,923			7,557,415			4,443			(5,660,413	)		—			16,926,467			9,369,013			7,557,415
Loans, borrowings and debentures		(11,579,392	)		(3,024,509	)		(4,262,973	)		(747,665	)		(10,147,713	)		(7,184,207	)		14,603,901			—			(22,342,558	)		(10,274,857	)		(10,147,713	)
Derivative financial instruments		(679,450	)		(167,253	)		—			(427	)		—			(31,020	)		846,703			—			(31,447	)		(24,116	)		—
Trade payables		(3,007,310	)		(1,271,947	)		(1,606,452	)		(439,184	)		(484,687	)		(4,621	)		4,279,257			—			(2,534,944	)		(2,050,235	)		(484,687	)
Real estate credit certificates		—			—			—			—			(36,873	)		—			—			—			(36,873	)		—			(36,873	)
Employee benefits payable		(502,204	)		(132,784	)		(42,275	)		(28,194	)		(147,840	)		(22,276	)		634,988			—			(240,585	)		(92,569	)		(147,840	)
Preferred shareholders payable in subsidiaries		—			—			—			—			—			(1,211,620	)		—			—			(1,211,620	)		(1,211,621	)		—
Lease		—			—			—			—			(671,270	)		—			—			—			(671,270	)		—			(671,270	)
Other current liabilities		(1,628,569	)		(2,221,448	)		(161,797	)		(200,685	)		(743,437	)		(908,637	)		3,850,017			305,227			(1,709,329	)		(965,284	)		(743,437	)
Othernon-current liabilities		(1,430,169	)		(4,853,183	)		(1,946,475	)		(207,162	)		(6,083,299	)		(1,530,537	)		6,283,352			125,087			(9,642,386	)		(3,616,919	)		(6,083,299	)
Total assets (net of liabilities) allocated by segment		11,370,329			4,963,783			4,786,256			696,387			7,941,392			14,358,586			(16,334,112	)		(11,512,067	)		16,270,554			9,759,109			7,941,392
Total assets		30,197,423			16,634,907			12,806,228			2,319,704			26,256,511			25,251,504			(46,832,330	)		(11,942,381	)		54,691,566			27,994,710			26,256,511
					��
Equity attributable to owners of the Company		11,371,316			4,739,442			3,874,016			694,026			2,189,087			14,358,228			(16,110,758	)		(15,423,672	)		5,691,685			8,844,508			2,189,087
Non-controlling interests		(987	)		224,341			912,240			2,361			5,752,305			358			(223,354	)		3,911,605			10,578,869			914,601			5,752,305
Total shareholders’ equity		11,370,329			4,963,783			4,786,256			696,387			7,941,392			14,358,586			(16,334,112	)		(11,512,067	)		16,270,554			9,759,109			7,941,392

25

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	December 31, 2017
	Reported segments															Reconciliation												Additional information
Statement of financial position:	Raízen Energia			Raízen Combustíveis			Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects IFRS 11			Segment elimination			Total consolidated			Cosan S.A			Cosan Logística
Cash and cash equivalents		2,069,357			1,221,890			1,727,521			192,115			179,909			2,455,632			(3,291,247	)		—			4,555,177			3,150,328			179,909
Marketable securities		—			—			509,544			5,439			3,153,160			185,200			—			—			3,853,343			700,035			3,153,160
Trade receivables		688,235			2,679,114			640,682			310,006			371,718			14			(3,367,349	)		—			1,322,420			950,701			371,718
Derivative financial instruments		453,775			88,496			458,476			2,581			110,107			591,049			(542,271	)		—			1,162,213			1,052,105			110,107
Inventories		2,804,223			2,416,833			76,548			301,850			282,291			2,372			(5,221,056	)		—			663,061			380,770			282,291
Other financial assets		476,181			—			—			—			—			1,340,000			(476,181	)		—			1,340,000			1,686,718			—
Other current assets		2,114,733			1,406,945			155,815			98,419			438,369			900,345			(3,521,678	)		(566,122	)		1,026,826			626,672			438,369
Othernon-current assets		3,373,565			1,335,986			356,962			70,055			2,770,618			1,100,740			(4,709,551	)		(1,230	)		4,297,145			1,521,810			2,770,618
Investments in associates		348,523			—			—			12,113			41,930			11,862,366			(348,523	)		(11,615,067	)		301,342			259,412			41,930
Investments in joint ventures		—			—			—			—			—			8,447,799			—			—			8,447,799			8,447,799			—
Biological assets		880,668			—			—			—			—			—			(880,668	)		—			—			—			—
Investment property		10,753,205			2,329,858			—			270,229			11,266,278			145,068			(13,083,063	)		—			11,681,575			412,325			11,266,278
Intangible assets and goodwill		3,669,903			4,600,777			8,471,087			873,924			7,622,969			5,630			(8,270,680	)		—			16,973,610			9,350,598			7,622,969
Loans, borrowings and debentures		(10,853,768	)		(2,741,312	)		(4,212,504	)		(589,292	)		(9,670,946	)		(7,216,204	)		13,595,080			—			(21,688,946	)		(9,674,994	)		(9,670,946	)
Derivative financial instruments		(250,033	)		(218,888	)		—			(8,293	)		—			(106,792	)		468,921			—			(115,085	)		(114,531	)		—
Trade payables		(1,341,867	)		(2,124,538	)		(1,444,835	)		(353,474	)		(628,597	)		(7,089	)		3,466,405			—			(2,433,995	)		(1,805,385	)		(628,597	)
Real estate credit certificates		—			—			—			—			(86,745	)		—			—			—			(86,745	)		—			(86,745	)
Employee benefits payable		(356,155	)		(94,158	)		(59,059	)		(34,125	)		(166,864	)		(31,032	)		450,313			—			(291,080	)		(124,017	)		(166,864	)
Preferred shareholders payable in subsidiaries		—			—			—			—			—			(1,442,679	)		—			—			(1,442,679	)		(1,442,679	)		—
Leases		—			—			—			—			(944,138	)		—			—			—			(944,138	)		—			(944,138	)
Other current liabilities		(1,412,872	)		(1,387,037	)		(358,430	)		(237,302	)		(778,049	)		(1,237,815	)		2,799,909			567,352			(2,044,244	)		(1,449,477	)		(778,049	)
Othernon-current liabilities		(1,345,322	)		(4,392,359	)		(1,782,718	)		(212,710	)		(5,938,422	)		(1,663,907	)		5,737,681			79,571			(9,518,186	)		(3,630,926	)		(5,938,422	)
Total assets (net of liabilities) allocated by segment		12,072,351			5,121,607			4,539,089			701,535			8,023,588			15,330,697			(17,193,958	)		(11,535,496	)		17,059,413			10,297,264			8,023,588
Total assets		27,632,368			16,079,899			12,396,635			2,136,731			26,237,349			27,036,215			(43,712,267	)		(12,182,419	)		55,624,511			28,539,273			26,237,349
Equity attributable to owners of the Company		12,073,314			4,888,966			3,688,494			701,535			2,211,005			15,330,321			(16,962,280	)		(15,892,598	)		6,038,757			9,446,669			2,211,005
Non-controlling interests		(963	)		232,641			850,595			—			5,812,583			376			(231,678	)		4,357,102			11,020,656			850,595			5,812,583
Total shareholders’ equity		12,072,351			5,121,607			4,539,089			701,535			8,023,588			15,330,697			(17,193,958	)		(11,535,496	)		17,059,413			10,297,264			8,023,588

26

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Net sales by segment:

	April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
Reported segment
Raízen Energia
Ethanol		1,624,324			4,048,018			1,614,698			3,145,257
Sugar		729,444			2,079,694			1,221,516			2,513,242
Gas		275,069			396,791			—			—
Diesel		1,122,690			1,122,690			—			—
Cogeneration		303,939			412,934			198,677			239,775
Other		36,090			544,367			71,023			120,874
		4,091,556			8,604,494			3,105,914			6,019,148
Raízen Combustíveis
Fuels		19,594,604			39,089,576			17,264,040			34,962,194
		19,594,604			39,089,576			17,264,040			34,962,194
Comgás
Industrial		1,017,538			1,959,418			840,938			1,601,201
Residential		238,830			429,026			228,418			379,903
Cogeneration		71,850			130,525			50,754			98,477
Automotive		62,957			118,151			54,733			105,989
Commercial		90,735			172,285			79,305			146,984
Construction revenue		96,177			185,670			86,787			143,114
Other		14,716			28,604			18,730			30,264
		1,592,803			3,023,679			1,359,665			2,505,932
Moove
Finished goods		738,030			1,384,111			425,491			806,714
Basic oil		79,057			150,066			78,650			136,171
Services		9,586			17,068			7,325			15,277
		826,673			1,551,245			511,466			958,162
Logistics
Northern operations		1,210,680			2,264,025			1,116,347			2,030,515
Southern operations		389,195			677,345			332,963			570,052
Container operations		64,670			119,858			56,833			104,750
		1,664,545			3,061,228			1,506,143			2,705,317
Reconciliation
Cosan Corporate		29			430			183			362
IFRS 11—Deconsolidated of adjustments/eliminations joint ventures and eliminations		(23,695,719	)		(47,712,733	)		(20,378,904	)		(40,996,877	)
Total		4,074,491			7,617,919			3,368,507			6,154,238

27

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

In the following table, revenue is disaggregated by products and service lines and timing of revenue recognition:

	April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
At a point in time
Fuels		22,616,687			44,657,075			18,878,738			38,107,451
Sugar		729,444			2,079,694			1,221,516			2,513,242
Gas distribution		1,410,060			2,678,880			1,203,394			2,234,077
Lubricants and basic oil		426,025			1,143,114			504,141			942,885
Cogeneration		375,789			543,459			249,431			338,252
Construction revenue		96,177			185,670			86,787			143,114
Other		441,868			964,033			89,753			151,138
		26,096,050			52,251,926			22,233,760			44,430,159
Over time
Transportation		71,902			131,798			82,560			143,104
Port Elevation		1,484,365			2,717,843			1,307,316			2,339,662
Other services		117,893			229,085			123,775			238,190
		1,674,160			3,078,726			1,513,651			2,720,956
IFRS 11—Deconsolidated of adjustments/eliminations joint ventures and eliminations		(23,695,719	)		(47,712,733	)		(20,378,904	)		(40,996,877	)
Total of net sales		4,074,491			7,617,919			3,368,507			6,154,238

6 Cash and cash equivalents

	June 30, 2018		December 31, 2017
Cash and bank deposits		117,349		53,525
Savings account		595,882		2,115,562
Financial investments		3,359,814		2,386,090
	4,073,045		4,555,177

Financial investments are composed as follows:

	June 30, 2018		December 31, 2017
Investment fund
Repurchase agreements		1,647,264		1,474,509
Bank certificate of deposits—CDB		355,802		377,605
	2,003,066		1,852,114
Bank investments
Repurchase agreements		116,083		160,124
Bank certificate of deposits—CDB		401,239		367,988
Other		839,426		5,864
	1,356,748		533,976
	3,359,814		2,386,090

28

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

7 Marketable securities and Restricted cash

Marketable securities
	June 30, 2018		December 31, 2017
Government security		3,744,928		3,640,726
Bank certificate of deposits—CDB		59,778		212,617
	3,804,706		3,853,343
Restricted cash
	June 30, 2018		December 31, 2017
Investments linked to loans		71,920		93,251
Securities pledged as collateral		95,862		132,383
		167,782		225,634
Current		1,394		—
Non-current		166,388		225,634

8 Trade receivables

	June 30, 2018			December 31, 2017
Domestic – Brazilian Reais		1,604,059			1,388,837
Export – Foreign currency		108,744			54,635
Allowance for doubtful accounts		(120,541	)		(121,052	)
		1,592,262			1,322,420
Current		1,546,639			1,277,766
Non-current		45,623			44,654

9 Other current tax receivables

	June 30, 2018		December 31, 2017
ICMS—State VAT		519,470		477,160
ICMS CIAP—State VAT		175,068		214,745
Credit installment		39,597		38,926
PIS—Revenue tax		86,391		73,214
COFINS—Revenue tax		292,018		278,512
Other		31,010		23,673
		1,143,554		1,106,230
Current		332,864		327,410
Non-Current		810,690		778,820

29

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

10 Related parties

a) Receivables from and payables to related parties:

	June 30, 2018		December 31, 2017
Current Asset
Commercial operation
Raízen Energia S.A.		49,121		22,283
Aguassanta Participações S.A.		32		17
Raízen Combustíveis S.A.		11,349		6,094
Other		1,769		1,665
		62,271		30,059
Non-current assets
Commercial operations
Raízen Combustíveis S.A.		22,534		18,086
Receivables under the framework agreement
Janus Brasil Participações S.A		—		30,423
Raízen Energia S.A.		37,099		87,969
	37,099		118,392
Financial and corporation operations
Rezende Barbosa		27,744		31,444
Other		1,913		1,833
	29,657		33,277
	89,290		169,755

	June 30, 2018		December 31, 2017
Current liabilities
Corporate operations
Raízen Energia S.A.		221,456		198,198
Raízen Combustíveis S.A.		131,796		128,189
Other		1,373		1,876
		354,625		328,263

30

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) Related party transactions:

	April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
Sales of goods and services
Raízen Combustíveis S.A		40,794			79,364			32,959			68,776
Raízen Energia S.A.		89,006			174,287			98,320			176,060
	129,800			253,651			131,279			244,836
Purchase of goods / Inputs
Raízen Energia S.A.		(119	)		(186	)		(143	)		(291	)
Raízen Combustíveis S.A.		(302,968	)		(555,419	)		(238,573	)		(442,290	)
		(303,087	)		(555,605	)		(238,716	)		(442,581	)
Shared expense
Raízen Energia S.A.		(17,964	)		(36,490	)		(20,963	)		(38,097	)
		(17,964	)		(36,490	)		(20,963	)		(38,097	)
Financial result
Usina Santa Luiza		(60	)		(119	)		(57	)		(261	)
Raízen Energia S.A.		2,481			4,449			3,499			3,784
Other		19			101			—			—
		2,440			4,431			3,442			3,523

c) Officers’ and directors’ compensation

	April 1, 2018 to June 30, 2018		January 1, 2018 to June 30, 2018		April 1, 2017 to June 30, 2017		January 1, 2017 to June 30, 2017
Short-term benefits to officers and directors		18,335		34,484		16,989		42,547
Post-employment benefits		91		162		196		461
Other long-term benefits		35		70		141		271
Benefits from termination of employment contract		677		677		—		—
Share-based payment transactions		2,559		13,914		3,347		6,192
		21,697		49,307		20,673		49,471

31

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

11 Investments in associates

a) Information in associates of the Company and the Company´s ownership:

	Shares issued by the associate		Shares held by Cosan			Cosan ownership interest			Economic benefits %
Tellus Brasil Participações S.A.		120,920,492		61,359,624			50.74	%		5.00	%
Novvi Limited Liability Company		1,011,000		202,200			20.00	%		20.00	%
Janus Brasil Participações S.A.		142,202,486		72,200,370			50.77	%		5.00	%
Radar Propriedades Agrícolas S.A		1,735,703		531,125			51.00	%		3.00	%
Radar II Propriedades Agrícolas S.A		81,440,221		24,920,708			51.00	%		3.00	%
Usina Santa Luiza S.A		28,553,200		9,516,782			33.33	%		33.33	%
	January 1, 2018		Interest in earnings (losses) of associates			Other comprehensive income			Dividends			Capital increase		June 30, 2018		Interest in earnings (losses) of associates in June 30, 2017
Investments in associates
Tellus Brasil Participações S.A.		98,723		1,670			—			(1,855	)		—		98,538		2,799
Novvi Limited Liability Company		11,756		4,204			1,718			—			—		17,678		(4,147	)
Janus Brasil Participações S.A.		51,426		3,873			—			(2,754	)		36,585		89,130		588
Radar Propriedades Agrícolas S.A		57,532		613			53			—			—		58,198		924
Radar II Propriedades Agrícolas S.A		31,126		441			12			(184	)		—		31,395		564
Usina Santa Luiza S.A		4,389		(457	)		—			—			1,833		5,765		—
Other		46,390		5,294			565			(7,738	)		—		44,511		598
Total		301,342		15,638			2,348			(12,531	)		38,418		345,215		1,326

32

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) Information in thenon-controlling interests in subsidiaries of the Company:

	Shares issued by the associate		Shares held by non-controlling shareholders			Non-controlling interest
Cosan S.A.		407,904,353		155,759,721			38.19	%
Cosan Logística S.A.		463,224,241		127,265,347			27.47	%
Companhia de Gás de São Paulo—Comgás		132,023,251		26,243,394			19.88	%
Rumo S.A.		1,559,015,898		1,088,431,798			69.82	%
Logispot Armazéns Agrícolas S.A.		2,040,816		1,000,000			49.00	%
	January 1, 2018		Interest in earnings (losses) of associates			Change of shareholding interest in subsidiary			Other comprehensive income (losses)			Dividends			New standards adopted by the Company—Note 3.2			Business combination		Other		June 30, 2018		Interest in earnings (losses) of associates in June 30, 2017
Cosan S.A.		3,795,050		111,248			(440,817	)		(58,960	)		(57,426	)		(2,646	)		—		8,530		3,354,979		54,611
Cosan Logística S.A.		607,284		(7,396	)		594			628			—			(77	)		—		827		601,860		(22,182	)
Companhia de Gás de São Paulo—Comgás		850,595		51,052			12,051			130			—			(1,280	)		—		—		912,548		78,082
Rumo S.A.		5,732,763		(65,543	)		—			5,748			(1,947	)		(735	)		—		2,488		5,672,774		(198,603	)
Logispot Armazéns Agrícolas S.A.		34,588		(290	)		—			—			—			—			—		—		34,298		(575	)
Other		376		4,562			—			—			(4,737	)		—			2,209		—		2,410		6,634
Total		11,020,656		93,633			(428,172	)		(52,454	)		(64,110	)		(4,738	)		2,209		11,845		10,578,869		(82,033	)

33

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

12 Investments in joint ventures

The Company entered into an agreement to form two joint ventures, accounting for 50% of the economic benefits of the companies. They are:

	Raízen Combustíveis S.A.			Raízen Energia S.A.			Total
Ordinary shares issued by the joint venture		1,661,418,472			7,243,283,198
Shares held by Cosan		830,709,236			3,621,641,599
Cosan ownership interest		50	%		50	%
Interest in earnings of joint ventures at June 30, 2017		264,447			31,647			296,094
January 1, 2018		3,185,988			5,261,811			8,447,799
Interest in earnings of joint ventures		243,276			104,837			348,113
Other comprehensive income		28,727			(185,743	)		(157,016	)
Interest on capital		(39,500	)		—			(39,500	)
Dividends		(307,340	)		(270,010	)		(577,350	)
June 30, 2018		3,111,151			4,910,895			8,022,046

The statement of financial position and statement of profit or loss of the joint ventures are disclosed in Note 5, Segments.

On June 30, 2018, the Company was in compliance with the covenants of the agreements governing the Joint Ventures.

34

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

13 Property, plant and equipment

	Land, buildings and improvements			Machinery, equipment and facilities			Railcars and locomotives (ii)			Permanent railways (i)			Construction in progress			Other			Total
Cost
At January 1, 2018		1,070,095			874,398			6,095,595			5,136,116			986,102			340,576			14,502,882
Additions		(13	)		62			—			—			1,051,104			5,012			1,056,165
Disposals		(2,317	)		(2,436	)		(45,036	)		—			(164	)		(30,014	)		(79,967	)
Transfers		126,924			135,410			190,742			498,723			(973,394	)		29,462			7,867
Business combinations(iii)		—			—			—			—			—			5,699			5,699
At June 30, 2018		1,194,689			1,007,434			6,241,301			5,634,839			1,063,648			350,735			15,492,646
Depreciation
At January 1, 2018		(297,499	)		(344,146	)		(1,245,651	)		(949,777	)		—			15,766			(2,821,307	)
Additions		(23,553	)		(60,146	)		(314,862	)		(228,028	)		—			(15,360	)		(641,949	)
Disposals		2,317			2,436			44,679			—			—			25,028			74,460
Transfers		204			—			—			—			—			(20,515	)		(20,311	)
At June 30, 2018		(318,531	)		(401,856	)		(1,515,834	)		(1,177,805	)		—			4,919			(3,409,107	)
At January 1, 2018		772,596			530,252			4,849,944			4,186,339			986,102			356,342			11,681,575
At June 30, 2018		876,158			605,578			4,725,467			4,457,034			1,063,648			355,654			12,083,539

(i) Leasehold improvements and finance leases included.

(ii) On June 30, 2018, wagons and locomotives in the amount of R$ 745,203 (R$ 743,203 on December 31, 2017) were placed on bail to guarantee bank loans (Note 15).

(iii) Property, plant and equipment acquired on the acquisition of the full control of the company TTA—SAS Techniques & Technologie Appliques as detailed in Note 01

35

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

14 Intangible assets and goodwill

	Goodwill			Concession rights			Operating license			Trademarks			Customer relationships			Other			Total
Cost:
At January 1, 2018		851,885			17,433,267			435,624			252,474			989,387			426,948			20,389,585
Additions		—			189,815			—			—			36,854			22,401			249,070
Disposals		—			(33,752	)		—			—			(2,685	)		(70	)		(36,507	)
Transfers		—			740			—			—			(765	)		8,514			8,489
Business combination(i)		(85,259	)		—			—			—			136,499			—			51,240
At June 30, 2018		766,626			17,590,070			435,624			252,474			1,159,290			457,793			20,661,877
Amortization
At January 1, 2018		—			(2,004,657	)		(212,616	)		(205,443	)		(787,426	)		(205,833	)		(3,415,975	)
Additions		—			(239,526	)		(5,870	)		(11,414	)		(58,888	)		(30,854	)		(346,552	)
Disposals		—			24,778			—			—			2,268			66			27,112
Transfers		—			(360	)		—			—			360			5			5
At June 30, 2018		—			(2,219,765	)		(218,486	)		(216,857	)		(843,686	)		(236,616	)		(3,735,410	)
At January 1, 2018		851,885			15,428,610			223,008			47,031			201,961			221,115			16,973,610
At June 30, 2018		766,626			15,370,305			217,138			35,617			315,604			221,177			16,926,467

(i) Acquisition of control of companies in the Lubricants segment and allocation of the purchase price of the acquisition of Stambridge Group Limited (Note 1).

Capitalization of borrowing costs

Capitalized borrowing costs for the period ended June 30, 2018, amounted to R$ 4,400 (R$ 5,155 for the period ended June 30, 2017). The weighted average interest rate used to capitalize borrowing costs on the balance of concession right, was 7.51% p.a. for the period ended June 30, 2018 (10.42% p.a. for the period ended June 30, 2017).

36

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Intangible assets (excluding goodwill)	Annual rate of amortization—%		June 30, 2018		December 31, 2017
Gas distribution concession—Comgás(i)		Concession term		8,199,662		8,197,514
Concession rights—Rumo(ii)		Concession term		7,170,643		7,231,096
			15,370,305		15,428,610
Operating license for port terminal(iii)		4.00		217,138		223,008
Trademarks
Mobil		10.00		11,414		22,827
Comma		—		24,203		24,204
			35,617		47,031
Relationship with customers:
Comgás		20.00		160,669		174,458
Lubricants		6.00		154,935		27,503
			315,604		201,961
Other
Software license		20.00		168,147		167,520
Other				53,030		53,595
				221,177		221,115
Total				16,159,841		16,121,725

(i) Refers to the intangible asset for the public gas distribution service concession, which represents the right to charge users for the supply of gas, comprised of: (i) the concession rights recognized in the business combination and (ii) concession assets;

(ii) Refers to the concession right agreement of Rumo Malha Norte, which will be amortized until the end of the concession in 2079;

(iii) Port operating license and customer relationships of Rumo, from the business combinations.

Impairment testing of cash-generating units (“CGU”) goodwill

The Company annually tests recoverable amounts of goodwill arising from business combination operations. Property, plant and equipment and defined-intangible assets that are subject to depreciation and amortization are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

During the period ended June 30, 2018, no impairment indicators were identified that would require the review of the last test conducted at December 31, 2017.

37

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

15 Loans, borrowings and debentures

	Interest
Description(i)	Index at June 30, 2018		Annual interest			June 30, 2018		December 31, 2017		Maturity
Loan and borrowings
BNDES		URTJLP		8.42	%		2,075,279		2,270,055		Jun-29
		Fixed		5.27	%		1,169,296		1,281,416		Feb-25
		TJ462		9.45	%		401,555		485,807		Oct-20
		Selic		8.32	%		188,187		221,222		Oct-20
		Selic		8.49	%		68,779		66,794		Jun-23
		TJLP		8.65	%		119,895		120,573		Jun-23
		Selic		13.65	%		3,543		4,075		Sep-20
		Fixed		3.76	%		2,278		2,695		Jan-24
		IPCA		12.13	%		2,999		2,840		Nov-21
EIB		U.S.$		3.88	%		118,788		127,190		Jun-20
		U.S.$		2.94	%		68,803		70,611		Sep-20
		U.S.$ + LIBOR		3.03	%		137,339		138,778		May-21
		U.S.$ + LIBOR		2.91	%		150,341		149,386		Sep-21
Foreign loans		GBP + Libor		3.95	%		364,334		312,642		Dec-22
		GBP + Libor		2.22	%		179,267		157,432		Nov-19
NCE		112% of CDI		7.18	%		29,919		59,858		Dec-18
		126% of CDI		8.12	%		514,388		—		Dec-23
		CDI + 3.50%		10.11	%		295,554		294,968		Dec-18
		125% of CDI		8.05	%		645,604		644,766		Dec-23
Perpetual Notes		U.S.$		8.25	%		1,952,200		1,674,847		—
Resolution 4131		U.S.$		4.79	%		49,416		68,305		Oct-20
		U.S.$ + Libor		3.47	%		154,633		50,868		Feb-20
		U.S.$		2.40	%		—		415,762		Mar-18
		U.S.$		3.67	%		282,606		—		May-23
Senior Notes Due 2018		Fixed		9.50	%		—		168,052		Mar-18
Senior Notes Due 2023		U.S.$		5.00	%		378,920		339,665		Mar-23
Senior Notes Due 2027		U.S.$		7.00	%		2,761,149		2,530,443		Jan-27
Senior Notes Due 2024		U.S.$		7.38	%		2,891,496		2,570,622		Feb-24
Senior Notes Due 2024		U.S.$		5.95	%		1,919,988		1,664,850		Sep-24
Senior Notes Due 2025		U.S.$		5.88	%		1,861,518		—		Jan-25
FINEP		Fixed		5.00	%		93,165		93,058		Nov-22
Trade banks		CDI + 4.91% p.a.		12.14	%		30		98,117		Jun-19
		Fixed U.S.$		5.33	%		97,662		95,040		Dec-21
Working capital		CDI + 2.80% p.a.		9.88	%		—		391,693		Dec-18
		CDI + 2.95% p.a.		10.04	%		—		286,463		Dec-18
		CDI + 0.31% p.m.		10.93	%		—		1,117		Jan-18
		CDI + 0.33% p.m.		11.20	%		—		3,345		Mar-18
		120% of CDI		7.72	%		20,142		21,221		Jul-18
		120.85% of CDI		7.77	%		10,842		10,440		Jul-18
		120.75% of CDI		7.77	%		20,703		20,879		Jul-18
		122% of CDI		7.85	%		15,400		—		Feb-19
Bank overdrafts		125.5% of CDI		8.08	%		—		94		Jun-18
Prepayment		U.S.$+Libor		3.70	%		11,698		10,039		Apr-19
							19,057,716		16,926,028

38

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	Interest
Description(i)	Index at June 30, 2018		Annual interest			June 30, 2018		December 31, 2017		Maturity
Debentures
Non-convertible debentures		CDI + 2.05% p.a.		8.57	%		—		152,573		—
		CDI + 3.50% p.a.		10.11%			—		1,359,125		—
		IGPM + 6,10%		14.38%			219,523		—		May-28
		IPCA + 5.10%		9.40%			380,232		363,894		Sep-18
		IPCA + 5.57%		9.89%			203,987		197,923		Sep-20
		IPCA + 7.14%		11.52%			310,864		293,312		Dec-20
		IPCA + 7.48%		11.88%			279,916		263,701		Dec-22
		IPCA + 7.36%		11.75%			92,219		86,927		Dec-25
		IPCA + 5.87%		10.20%			737,909		726,827		Dec-23
		IPCA + 4.33%		8.60%			414,945		396,328		Oct-24
		108 % of CDI		6.92%			57,056		171,515		Jul-18
		Fixed		13.13%			—		163,750		—
		128 % of CDI		8.25%			501,108		499,576		Dec-25
		CDI + 0.90%		7.35%			87,083		87,467		Sep-19
							3,284,842		4,762,918
Total							22,342,558		21,688,946
Current							2,586,255		3,903,392
Non-current							19,756,303		17,785,554

(i) The Company’s debts with national and international development agencies have bank guarantees. Guarantees are contracted with first-tier banks guaranteeing the total amount of debt.

The carrying amounts of loans, borrowings and debentures are denominated in the following currencies:

	June 30, 2018		December 31, 2017
Reais (R$)		8,962,369		11,312,466
Dollar (U.S.$)(i)		12,836,588		9,906,406
Pound (GBP)		543,601		470,074
		22,342,558		21,688,946

(i) At June 30, 2018, all dated debts denominated in U.S. Dollars, in the subsidiaries, have currency risk protection through derivatives (Note 26).

Below are the movements that occurred for the period ended June 30, 2018.

At January 1, 2018	21,688,946
Raised	2,721,150
Amortization of principal	(3,821,208	)
Payment of interest	(663,800	)
Interest, exchange rate and fair value	2,417,470
At June 30, 2018	22,342,558

39

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Resolution 4,131

On March 9, 2018, Moove, a wholly-owned subsidiary of the Company, obtained a loan from Bank of America Merril Lynch in the amount of U.S.$ 20,000 thousands with maturity on February 20, 2020 and interest at libor + 1.00%p.a.

On May 29, 2018, Comgás, a wholly-owned subsidiary of the Company, obtained a loan from Scotiabank in the amount US$ 75,000 thousands with maturity on May 30, 2023 andpre-fixed interest at 3.67% p.a.

Working Capital

On February 23, 2018, Cosan Biomassa, a wholly-owned subsidiary of the Company, obtained a loan in the amount of R$ 15,000 from Banco ABC with maturity on February 18, 2019 and a fixed interest rate of 122.00% of CDI.

On May, 9, 2018, Cosan Biomassa, a wholly-owned subsidiary of the Company, loan contract added with Banco Santander in the amount R$ 20,000 that delay the maturity to July, 17, 2018. The interest rate is floating and fixed of CDI.

Senior Notes 2025

On February 9, 2018, through its subsidiary, Rumo Luxembourg, the Company issued debt securities in the international market, Senior Notes due 2025 (“Notes 2025”) in the total amount of U.S.$ 500,000 thousands, with maturity in January 2025 and interest of 5.87% p.a., paid semi-annually. This debt is protected by exchange and interest rate swaps.

NCE Bradesco 2023

On January 26, 2018, through its subsidiary, Rumo Malha Norte SA, the Company raised funds from Banco Bradesco, through an Export Credit Note, in the total amount of R$ 500,000, due in December 2023 with interest of 126% of CDI, paid semi-annually.

Debentures

On May, 15, 2018, Comgás, a wholly-owned subsidiary of the Company, 7th issued debentures.

Resources were captured in a single series, in the amount R$ 215.000 thousands, corrected annuallyIGP-M, interest rate 6.10% p.a and maturity in May, 15, 2028.

Available credit line

Ø BNDES

As of June 30, 2018, the subsidiary Rumo had available credit lines from BNDES, which were not used, in the total amount of R$ 21,325 (R$ 94,220 on December 31, 2017).

As of June 30, 2018, the subsidiary Cosan S.A. had available credit lines, which were not used, in the total amount of R$ 200,458. (R$ 288,000 on December 31, 2017).

Ø Stand by facilities

As of June 30, 2018 and December 31,2017, the subsidiary Cosan S.A had available credit lines from three different Brazilian financial institutions, which were not used, in the total amount of R$ 501,000.

40

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Financial Covenants

The Company is subject to certain restrictive clauses in most of the loan and financing agreements, based on certain financial andnon-financial indicators. The Company evaluates the financial covenants as of December 31, 2018.

At June 30, 2018, the Company was in compliance with all debt financial covenants.

16 Leases

Finance lease liabilities

Finance lease liabilities are payable as follows:

	June 30, 2018												December 31, 2017
	Less than one year			Between one and five years			More than five years			Total			Total
Future value of minimum payments lease payments		238,422			471,205			207,402			917,029			1,250,860
Rolling stock		212,047			393,146			134,205			739,398			1,060,759
Terminal		23,400			76,208			73,197			172,805			184,484
Other		2,975			1,851			—			4,826			5,617
Interests		(64,596	)		(145,017	)		(36,146	)		(245,759	)		(306,722	)
Rolling stock		(51,911	)		(112,404	)		(23,416	)		(187,731	)		(241,509	)
Terminal		(12,370	)		(32,507	)		(12,730	)		(57,607	)		(64,528	)
Other		(315	)		(106	)		—			(421	)		(685	)
Present value of minimum lease payments		173,826			326,188			171,256			671,270			944,138
Current											173,826			261,344
Non-current											497,444			682,794

Below are the movements that occurred for the period ended June 30, 2018.

At January 1, 2018	944,138
Interest, exchange rate and fair value	103,048
Amortization of principal	(299,126	)
Payment of interest	(76,790	)
At June 30, 2018	671,270

41

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Operating leases

At June 30, 2018, the future minimum lease payments undernon-cancellable leases are as follows:

	June 30, 2018								December 31, 2017
	Total future minimum payments
	Less than one year		Between one and five years		More than five years		Total		Total
Locomotives		565		822		—		1,387		1,695
Rail cars		7,330		24,747		3,254		35,331		38,449
Other		2,784		8,008		4,260		15,052		16,058
Total		10,679		33,577		7,514		51,770		56,202

The leases are recognized as expenses (Note 24) on a straight-line basis over the life of the respective agreement.

17 Concessions payable

	June 30, 2018						December 31, 2017
	Leases		Concessions		Total		Total
Payables
Rumo Malha Sul		34,787		30,103		64,890		65,550
Rumo Malha Paulista		—		20,011		20,011		48,139
		34,787		50,114		84,901		113,689
Court Discussion
Rumo Malha Paulista		1,642,004		—		1,642,004		1,535,470
Rumo Malha Oeste		1,265,844		78,553		1,344,397		1,284,175
		2,907,848		78,553		2,986,401		2,819,645
Total		2,942,635		128,667		3,071,302		2,933,334
Current						28,819		27,413
Non-current						3,042,483		2,905,921

Judicial deposits at June 30, 2018 concerning the above claims totaled:

	June 30, 2018		December 31, 2017
Rumo Paulista		119,806		119,806
Rumo Oeste		20,690		20,690
		140,496		140,496

The judicial deposits are recorded in the “regulatory” group, as described in note 21.

42

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

18 Trade payables

	June 30, 2018			December 31, 2017
Natural gas suppliers		1,773,029			1,563,930
Materials and service suppliers		1,050,368			1,162,496
Fuels and lubricants suppliers		807			1,814
Judicial deposits(i)		(294,976	)		(294,976	)
Other		5,716			731
		2,534,944			2,433,995

(i) There are ongoing proceeding between Comgás and its gas supplier. The gas supplier is charging different prices comparing to the gas supply market. At June 30, 2018, the balance of the judicial discussion is R$ 1,165,745 (R$ 1,154,603 on December 31, 2017). The amount is secured by judicial deposit R$ 294,976 (R$ 294,976 on December 31, 2017) and the guaranteed value through surety is of R$ 870,769 (R$ 859,627 on December 31, 2017).

19 Other taxes payable

	June 30, 2018		December 31, 2017
Tax amnesty and refinancing program—Refis		219,653		229,745
ICMS – State VAT		145,480		121,550
COFINS—Revenue tax		75,583		146,641
PIS—Revenue tax		9,955		31,563
INSS—Social security		5,872		7,697
ISS—Services tax		4,031		4,494
IOF—Financial tax		1,577		2,224
Other		8,340		36,601
		470,491		580,515
Current		313,995		418,878
Non-Current		156,496		161,637

43

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

20 Income tax and social contribution

a) Reconciliation of income and social contribution tax expenses:

	April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
(Loss) profit before taxes		(18,485	)		305,354			(11,441	)		(25,890	)
Income tax and social contribution at nominal rate (34%)		6,285			(103,820	)		3,890			8,803
Adjustments to reconcile nominal and effective tax rate
Interest in earnings of investees (non-taxable income)		23,426			123,675			13,181			101,123
Differences in tax rates on earnings / losses of overseas companies		34,771			(599	)		(7,739	)		(44,908	)
Granted income tax incentive		(16,117	)		(11,287	)		10,930			14,965
Share-based payment transactions		(888	)		(1,923	)		(967	)		(1,934	)
Interest on shareholders’ equity		(8,160	)		(13,430	)		(8,500	)		(14,280	)
Non-deductible expenses (donations, gifts, etc.)		(3,435	)		(4,646	)		(2,308	)		(8,400	)
Tax losses not recorded(i)		(28,133	)		(67,383	)		(39,081	)		(127,763	)
Goodwill amortization effect		464			927			—			—
Tax effects of discounts granted —PERT		—			110			—			—
Differences in tax rates on entities under Brazilian presumed profits tax regime		—			—			(114	)		(211	)
Other		(7,895	)		(4,358	)		(5,272	)		(7,204	)
Income tax and social contribution (expense)—current and deferred		318			(82,734	)		(35,980	)		(79,809	)
Effective rate—%		1.72			(27.09	)		N/A			N/A

(i) Refers mainly to tax losses not recorded in subsidiaries of Rumo which under current conditions do not attend the requirements of future taxable profits that justify the recognition of the deferred tax assets. In accordance with Brazilian Federal Taxes rules those losses do not expire.

44

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) Deferred income tax assets and liabilities:

	June 30, 2018			December 31, 2017
Assets credit of:
Income tax loss carry forwards		2,294,193			2,112,707
Social contribution tax loss carry forwards		839,164			772,304
Temporary differences
Foreign exchange—Loans and borrowings		807,589			548,568
Legal proceedings provision		399,778			365,997
Tax deductible goodwill		—			56,276
Impairment provision		234,256			250,236
Provisions for employee benefits		155,788			153,434
Allowance for doubtful accounts		35,161			25,991
Regulatory asset (liability)		62,457			65,318
Impairment of tax credit		62,226			61,324
Share-based payment transactions		2,615			291
Profit sharing		21,975			41,506
Interest on preferred shareholders payable in subsidiaries		231,497			218,599
Property, plant, equipment and intangible—useful life review		225,038			160,490
Contract disputes		87,897			86,482
Provisions		198,378			339,627
Other		60,197			(23,451	)
Total		5,718,209			5,235,699
(-) Deferred taxes assets not recognized		(2,025,988	)		(1,961,325	)
Liabilities credit of:
Temporary differences
Business combination—Property, plant and equipment		86,936			110,149
Tax deductible goodwill		(370,128	)		(351,262	)
Lease		(292,834	)		(277,091	)
Concession contract		(7,713	)		(8,681	)
Unrealized (loss) gains on derivatives instruments		(483,764	)		(115,503	)
Fair value option in loans		(35,803	)		23,855
Income on formation of joint ventures		(1,135,036	)		(1,135,036	)
Business combination—Intangible asset		(3,747,812	)		(3,741,525	)
Other		(89,681	)		(45,510	)
Total		(6,075,835	)		(5,540,604	)
Total of deferred taxes recorded		(2,383,614	)		(2,266,230	)
Deferred income tax—Assets		1,553,421			1,636,080
Deferred income tax—Liabilities		(3,937,035	)		(3,902,310	)

45

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

c) Changes in deferred income taxes, net:

At January 1, 2018	(2,266,230	)
Recorded through income	(98,921	)
Tax loss carryforwards used to settle other tax installments	(2,004	)
Business combinations	(23,615	)
Other(i)	7,156
At June 30, 2018	(2,383,614	)

(i) Exchange variation effect due to the conversion of offshore investments.

21 Provision for legal proceedings

	Provision for legal proceedings				Judicial deposits
	June 30, 2018		December 31, 2017		June 30, 2018		December 31, 2017
Tax		499,513		501,247		431,272		371,703
Civil, regulatory and environmental		393,089		375,561		198,319		196,025
Labor		475,412		471,349		208,407		198,379
		1,368,014		1,348,157		837,998		766,107

Changes in provision for legal proceedings:

	Tax			Civil, regulatory and environmental			Labor			Total
January 1, 2018		501,247			375,561			471,349			1,348,157
Accruals		2,039			30,712			48,681			81,432
Disposal / Reversals		(15,804	)		(18,836	)		(59,542	)		(94,182	)
Transfers		7,178			(7,178	)		—			—
Indexation and interest charges(i)		4,853			12,830			14,924			32,607
June 30, 2018		499,513			393,089			475,412			1,368,014

(i) Includes interest reversal.

The Company’s debts with legal proceedings are secured by assets, cash deposit, bank guarantee or insurance guarantee.

Tax claims

a) Judicial claims deemed to be probable losses, fully accrued

	June 30, 2018		December 31, 2017
Compensation with FINSOCIAL		283,560		280,158
State VAT—ICMS credits		100,884		99,423
INSS—Social security		66,395		65,149
PIS and COFINS		2,082		2,051
Federal income taxes		1,550		1,521
IPI—Excise tax credit—NT		688		678
Other		44,354		52,267
	499,513		501,247

46

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) Judicial claims deemed as possible losses, and therefore not accrued

	June 30, 2018		December 31, 2017
ICMS—State VAT		2,662,047		2,652,709
Federal income taxes		2,915,071		2,766,174
IRRF—Withholding tax		931,115		914,545
PIS and COFINS—Revenue taxes		867,723		838,343
INSS—Social security and other		605,067		556,252
Goodwill Rumo		520,996		512,120
IPI—Excise tax credit—NT		543,553		523,121
Penalties related to tax positions		439,191		429,249
MP 470—Tax installments		294,164		290,389
Foreign financial operation		285,340		280,414
Compensation with IPI—IN 67/98		133,462		132,270
Stock option		66,889		65,776
Financial transactions tax on loan		51,961		51,330
Social security contributions		4,051		45,985
Compensation credit award		42,240		41,350
Other		896,944		902,698
		11,259,814		11,002,725

Civil, labor, regulatory and environmental

a) Judicial claims deemed to be probable losses, fully accrued

• Civil – refers mainly to compensation for material and moral damages, class actions for abstaining from straw burning sugarcane and execution of environmental nature.

• Labor – represent labor claims filed by former employees and employees of service providers who question, among others, payment of overtime, night and dangerous, job reinstatement, compensation for accidents at work and reimbursement of discounts from payroll, such as confederative and assistance contributions, union dues and other.

• Regulatory – mainly refers to fines and discussions with National Authority for Terrestrial Transport (ANTT).

• Environmental – these amounts derive from assessments made by the Environmental Sanitation Technology Company(CETESB-SP), Brazilian Institute of Environment and Natural Resources (IBAMA) and Environment Municipal Departments related to soil contamination and water by the overflow of products andnon-compliance with conditions imposed by such operating license. In all cases, measures are being taken to reduce the existing liabilities, as well as repair and prevention measures.

47

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) Judicial claims deemed as possible losses, and therefore not accrued

The main civil and labor lawsuits, for which an unfavorable outcome is considered possible, are as follows:

	June 30, 2018		December 31, 2017
Civil		3,152,104		2,865,572
Labor		1,031,404		1,061,910
Regulatory		652,860		606,133
Environmental		412,179		378,462
	5,248,547		4,912,077

On July 25, 2018, the Company was aware of the filing of an administrative inquiry with Administrative Council for Economic Defense (CADE) for the determination of representation filed by Agrovia. The Company refutes the arguments presented by Agrovia and emphasizes that most of the facts have already been analyzed and rejected by CADE in another administrative proceeding. The Company assesses as possible the risk that an administrative proceeding will be created and will incur loss in this process. Due to the initial stage of the topic, it is not possible to estimate the value at risk.

22 Shareholders’ equity

a) Share capital

At June 30, 2018, Cosan Limited’s share capital is composed of the following:

Shareholders—Common shares	Class A and / or BDRs		%		Class B1 shares		%
Controlling Group(i)		19,514,418		11.19		96,332,044		100.00
Renaissance Technologies LLC		7,331,699		4.21		—		—
M&G Investment Management Limited		8,111,631		4.65		—		—
Eastspring Investments (Singapore) Limited		4,250,300		2.44		—		—
Free Float		109,135,620		62.59		—		—
Total shares outstanding		148,343,668		85.08		96,332,044		100.00
Treasury shares		26,011,673		14.92		—		—
Total		174,355,341		100.00		96,332,044		100.00

(i) The controlling group is composed by the following companies: (i) Queluz Holdings Limited, (ii) Usina Costa Pinto S.A. (iii) MSOR Participações S.A. and (iv) Usina Bom Jesus S.A. Açúcar e Álcool.

b) Treasury shares

The Company holds 26,011,673 Class A treasury shares as of June 30, 2018 (27,488,204 December 31, 2017) with a market value of U.S.$ 7.63 per share as of June 30, 2018 (U.S.$ 9.70 per share as of December 31, 2017).

In the period ended June 30, 2018, the amount of 1,476,531 treasury shares were delivered to the beneficiaries of the Stock-Grant Plan – Equity-settled – Cosan Limited.

48

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

c) Other comprehensive (loss) income

	December 31, 2017			Comprehensive (loss) income			June 30, 2018
Foreign currency translation effects		(372,343	)		(220,023	)		(592,366	)
Gain (loss) on cash flow hedge in joint ventures and subsidiaries		14,610			(83,954	)		(69,344	)
Actuarial loss on defined benefit plan		(44,937	)		(1,042	)		(45,979	)
Gain on share subscription of a subsidiary		15,000			—			15,000
Changes in fair value of available for sale securities		841			53			894
Total		(386,829	)		(304,966	)		(691,795	)
Attributable to:
Owners of the Company		(394,212	)		(252,512	)		(646,724	)
Non-controlling interests		7,383			(52,454	)		(45,071	)
	December 31, 2016			Comprehensive (loss) income			June 30, 2017
Foreign currency translation effects		(322,258	)		(15,865	)		(338,123	)
(Loss) gain on cash flow hedge in joint ventures and subsidiaries		(190,001	)		322,203			132,202
Actuarial loss on defined benefit plan		(29,017	)		—			(29,017	)
Gain on share subscription of subsidiary		6,000			9,000			15,000
Changes in fair value of available for sale securities		(2,618	)		3,323			705
Total		(537,894	)		318,661			(219,233	)
Attributable to:
Owners of the Company		(480,454	)		196,067			(284,387	)
Non-controlling interests		(57,440	)		122,594			65,154

49

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

23 Earnings per share

The following table sets forth the calculation of earnings per share (in thousands of Brazilian Reais,

except per share amounts):

	April 1, 2018 to June 30, 2018		January 1, 2018 to June 30, 2018		April 1, 2017 to June 30, 2017		January 1, 2017 to June 30, 2017
Profit (loss) attributable from continued operation to ordinary equity holders for basic earnings		22,683		128,987		(44,781)		(23,666)
Effect of dilution:
Dilutive effect of subsidiary’s stock option plan		124		(479)		—		(484)
Dilutive effect of put option		—		—		(15,601)		(15,601)
Share repurchase plan		—		—		(355)		—
Profit (loss) from continued operation attributable to ordinary equity holders adjusted for the effect of dilution		22,807		128,508		(60,737)		(39,751)
Basic number of shares outstanding—In thousands of shares		243,686		243,444		264,691		264,691
Effect of dilution:
Dilutive effect of stock option plan		10,440		10,682		—		—
Diluted number of shares outstanding—In thousands of shares		254,126		254,126		264,691		264,691
Basic earnings (losses) per share from:
Continuing operations	R$	0.0931	R$	0.5298	(R$	0.1692)	(R$	0.0894)
Diluted earnings (losses) per share from:
Continuing operations	R$	0.0897	R$	0.5057	(R$	0.2295)	(R$	0.1502)

Thenon-controlling interests of the indirect subsidiary Brado Logística S.A have the right to exercise a liquidity option provided for in the shareholders’ agreement signed on August 5, 2013. This option would exchange all Brado shares held by such minority shareholders by shares of Rumo. The exchange ratio shall take into account the economic value for both Brado and Rumo shares. At the Company’s exclusive discretion, an equivalent cash payment is also possible.

For the six month period ended at June 30, 2018, 3,558,449 share options from indirect subsidiary Rumo S.A and 18,969,267 share options from indirect subsidiary Brado Logística S.A were excluded from the diluted weighted-average number of ordinary shares calculation because their effect would have been anti-dilutive.

For the six month period ended at June 30, 2018, 656,000 shares related to the share repurchase plan of subsidiary Cosan S.A. have an antidilutive effect, so they were not considered in the diluted earnings per share analysis.

50

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

24 Other income (expenses), net

	April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
Income from sale of scrap / eventual income		12,378			25,325			13,881			20,169
Insurance reimbursement income		1,757			5,345			—			1,181
Gain from port operations		1,544			2,260			1,735			1,735
Rental income		—			—			(833	)		661
Loss on disposal ofnon-current assets and intangibles		(124	)		(869	)		(14,187	)		(14,013	)
Net effect of legal proceedings, recoverable and tax installments		(26,057	)		(57,455	)		(43,840	)		(60,906	)
Other		(10,357	)		(18,126	)		(4,476	)		(12,587	)
		(20,859	)		(43,520	)		(47,720	)		(63,760	)

25 Finance results

	April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018			April 1, 2017 to June 30, 2017			January 1, 2017 to June 30, 2017
Cost of gross debt
Interest on debt		(413,311	)		(846,803	)		(450,955	)		(937,071	)
Monetary and exchange rate variation		(1,349,858	)		(1,406,419	)		(431,052	)		(349,183	)
Derivatives and fair value measurement		1,165,498			1,221,941			180,603			44,941
Amortization of borrowing costs		(25,870	)		(35,845	)		(314	)		(557	)
Guarantees and warranties on debt		(32,791	)		(68,453	)		(7,685	)		(16,360	)
		(656,332	)		(1,135,579	)		(709,403	)		(1,258,230	)
Income from financial investment and exchange rate in cash and cash equivalents		110,939			228,285			277,091			465,023
		110,939			228,285			277,091			465,023
Cost of debt, net		(545,393	)		(907,294	)		(432,312	)		(793,207	)
Other charges and monetary variations
Interest on other receivables		16,587			63,601			31,716			80,615
Monetary variation on leases and concessions agreements		(47,337	)		(92,567	)		(61,864	)		(134,992	)
Monetary variation on leases		(20,176	)		(72,495	)		(32,294	)		(66,539	)
Bank charges and others		(24,192	)		(47,156	)		(63,722	)		(127,459	)
Advances on real state credits		(5,282	)		(6,488	)		(5,625	)		(12,627	)
Interest on contingencies and contracts		(22,600	)		(49,644	)		(16,130	)		(35,921	)
Interest on other liabilities		(59,318	)		(95,529	)		(105,118	)		(208,415	)
Interest on shareholders’ equity		(444	)		277			—			—
Exchange variation		(35,680	)		(57,219	)		868			(4,329	)
		(198,442	)		(357,220	)		(252,169	)		(509,667	)
(=) Finance results, net		(743,835	)		(1,264,514	)		(684,481	)		(1,302,874	)
Finance expense		(512,419	)		(1,012,302	)		(867,138	)		(1,765,370	)
Finance income		158,242			347,090			234,762			517,771
Exchange variation		(1,391,779	)		(1,467,735	)		(312,621	)		(193,733	)
Derivatives		1,002,121			868,433			260,516			138,458
Finance results, net		(743,835	)		(1,264,514	)		(684,481	)		(1,302,874	)

51

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

26 Financial instruments

Financial risk management

Overview

The Company is exposed to the following risks related to the use of financial instruments:

• Credit risk;

• Liquidity risk; and

• Market risk.

This note presents information about the exposure of the Company to the above risks, as well as the objectives of the Company’s risk management policies, these policy and processes for the assessment and management of risks.

The carrying amount of financial assets and financial liabilities are as follows:

	June 30, 2018		December 31, 2017
Assets
Fair value through profit or loss
Investment funds		2,003,066		1,852,114
Marketable securities		3,804,706		3,853,343
Derivate financial instruments		1,740,544		1,162,213
	7,548,316		6,867,670
Amortized cost
Cash and cash equivalents		2,069,979		2,703,063
Trade receivables		1,592,262		1,322,420
Restricted cash		167,782		225,634
Receivables from related parties		151,561		199,814
Other financial assets		—		1,340,000
Dividends receivable		19,663		13,466
		4,001,247		5,804,397
Total		11,549,563		12,672,067

52

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	June 30, 2018		December 31, 2017
Liabilities
Amortized cost
Loans, borrowings and debentures		10,806,876		13,858,709
Leases		671,270		944,138
Real state credit certificates		36,873		86,745
Trade payables		2,534,944		2,433,995
Other financial liabilities		349,626		382,702
Payables to related parties		354,625		328,263
Dividends payable		27,997		191,478
Tax installments—REFIS		219,653		229,745
Trade payables—Corporate operation / Agreements		249,025		210,476
Preferred shareholders payable in subsidiaries		1,211,620		1,442,679
		16,462,509		20,108,930
Fair value through profit or loss
Loans, borrowings and debentures		11,535,682		7,830,237
Contingent consideration		54,494		116,542
Derivative financial instruments		31,447		115,085
		11,621,623		8,061,864
		28,084,132		28,170,794

During the period ended at June 30, 2018, there was no reclassification between the categories fair value through profit or loss and amortized cost.

Risk management structure

	Notional				Fair value
	June 30, 2018		December 31, 2017		June 30, 2018			December 31, 2017
Exchange rate derivatives
Forward agreements		17,013		494,302		2,456			(457	)
Interest rate and exchange rate risk
Swap agreements (interest rate)		2,284,808		2,446,369		242,877			330,712
Swap agreements (exchange and interest rate)		9,980,863		7,217,792		1,463,764			716,873
	12,265,671		9,664,161		1,706,641			1,047,585
Total financial instruments						1,709,097			1,047,128
Assets						1,740,544			1,162,213
Liabilities						(31,447	)		(115,085	)

53

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

Credit risk

	June 30, 2018		December 31, 2017
Cash and cash equivalents		4,073,045		4,555,177
Trade receivables		1,592,262		1,322,420
Derivative financial instruments		1,740,544		1,162,213
Marketable securities		3,804,706		3,853,343
Receivables from related parties		151,561		199,814
Dividends		19,663		13,466
Restricted cash		167,782		225,634
		11,549,563		11,332,067

The credit risk on cash and cash equivalents, marketable securities, restricted cash and derivative financial instruments are determined by rating instruments widely accepted by the market and are arranged as follows:

	June 30, 2018		December 31, 2017
AAA		3,407,691		3,499,345
AA		6,359,905		6,159,553
A+		6,866		—
B		11,615		2,007
BB+		—		4,180
		9,786,077		9,665,085

Liquidity risk

Thenon-derivative financial liabilities of the Company sorted by due dates (based on undiscounted cash flows contracted) are as follows:

	June 30, 2018															December 31, 2017
	Up to 1 year			1—2 years			3—5 years			More than 5 years			Total			Total
Loans, borrowings and debentures		(3,790,783	)		(3,210,144	)		(8,861,726	)		(16,430,709	)		(32,293,362	)		(31,554,560	)
Trade payables		(2,534,944	)		—			—			—			(2,534,944	)		(2,433,995	)
Other financial liabilities		(349,626	)		—			—			—			(349,626	)		(382,702	)
Tax installments—REFIS		(66,854	)		(20,359	)		(40,452	)		(106,579	)		(234,244	)		(244,957	)
Leases		(276,765	)		(172,921	)		(332,874	)		(239,529	)		(1,022,089	)		(1,443,470	)
Derivative financial instruments		139,777			(183,034	)		(1,076,381	)		4,088,657			2,969,019			(110,909	)
Real estate credits certificates		(39,356	)		—			—			—			(39,356	)		(92,844	)
Payables to related parties		(354,625	)		—			—			—			(354,625	)		(328,263	)
Dividends payable		(27,997	)		—			—			—			(27,997	)		(191,478	)
		(7,301,173	)		(3,586,458	)		(10,311,433	)		(12,688,160	)		(33,887,224	)		(36,783,178	)

Market risk

a) Foreign exchange risk

As at June 30, 2018 and December 31, 2017, the Company had the following net exposure to the exchange rate variations on assets and liabilities denominated in Dollar:

54

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

	June 30, 2018			December 31, 2017
Cash and cash equivalents		1,389,144			782,103
Trade receivables		83,828			25,797
Trade payables		(27,117	)		(13,230	)
Loans, borrowings and debentures		(12,831,486	)		(8,919,712	)
Advances from clients		—			(6,310	)
Contingent consideration		(54,494	)		(64,213	)
Payables to related parties		(249,025	)		(210,497	)
Derivative financial instruments(i)		10,366,858			7,323,116
Foreign exchange exposure, net		(1,322,292	)		(1,082,946	)

(i) These balances are equivalent to the notional amount in U.S. Dollars converted to R$ at the Dollar rate of June 30, 2018 and December 31, 2017 respectively.

Sensitivity analysis on changes in foreign exchange rates:

The probable scenario was defined based on the U.S. Dollar market rates as at June 30, 2018, which determines the fair values of the derivatives at that date. Stressed scenarios (positive and negative effects, before tax effects) were defined based on changes of a 25% and 50% to the U.S. Dollar exchange rates used in the probable scenario.

Based on the financial instruments denominated in U.S. Dollars at June 30, 2018, the Company performed a sensitivity analysis by increasing and decreasing the exchange rate for R$/U.S.$ by 25% and 50%. The probable scenario considers the estimated exchange rates, made by a specialized third part, at the due date of the transactions for the companies with functional currency Real (positive and negative, before tax effects), as follows:

	Exchange rate sensitivity analysis (R$/US$)
			Scenario
	June 30, 2018		Probable		25%		50%		-25%		-50%
U.S.$		3.8558		3.4100		4.2625		5.1150		2.5575		1.7050

The external source used by the company for market projections was a specialized consultant.

Considering the above scenario the profit or loss would be impacted as follows:

						Variation scenario
Instrument	Risk factor		Probable			25%			50%			-25%			-50%
Cash and cash equivalents	US$	fluctuation		(62,930	)		120,338			240,679			(120,338	)		(240,678	)
Trade receivables	US$	fluctuation		(9,692	)		18,534			37,069			(18,534	)		(37,069	)
Payables to related parties	US$	fluctuation		28,792			(55,059	)		(110,117	)		55,059			110,117
Trade payables	US$	fluctuation		2,540			(6,144	)		(12,289	)		6,144			12,289
Exchange rate derivatives(i)	US$	fluctuation		(1,308,605	)		2,528,768			5,057,536			(2,528,768	)		(5,057,536	)
Loans, borrowings and debentures	US$	fluctuation		1,336,024			(2,578,210	)		(5,156,421	)		2,578,210			5,156,421
Advances from clients	US$	fluctuation		—			—			—			—			—
Contingent consideration	US$	fluctuation		6,300			(12,049	)		(24,096	)		12,049			24,097
Impacts on profit or loss				(7,571	)		16,178			32,361			(16,178	)		(32,359	)

(i) For sensitivity analysis, it’s only considered exchange rate swaps for Notional.

55

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

b) Interest rate risk

Sensitivity analysis on changes in interest rates:

A sensitivity analysis on the interest rates on loans and borrowings in compensation for the CDI investments withpre-tax increases and decreases of 25% and 50% is presented below:

	June 30, 2018
Exposure interest rate(i)	Probable			25%			50%			-25%			-50%
Cash and cash equivalents		180,544			45,136			90,271			(45,136	)		(90,271	)
Marketable securities		75,971			18,993			37,985			(18,993	)		(37,985	)
Restricted cash		327,998			82,000			163,999			(82,000	)		(163,999	)
Leases		(24,858	)		(6,215	)		(12,429	)		6,215			12,429
Advances on real state credits		(2,128	)		(532	)		(1,064	)		532			1,064
Interest rate derivatives(ii)		379,264			(1,394,194	)		(2,586,197	)		1,707,789			3,739,008
Loans, borrowings and debentures		(830,948	)		(105,767	)		(211,586	)		105,767			211,586
Impacts on profit or loss		105,843			(1,360,579	)		(2,519,021	)		1,674,174			3,671,832

The probable scenario considers the estimated interest rate, made by a specialized third part andBanco Central do Brasil as follows:

	Probable			25%			50%			-25%			-50%
SELIC		6.50	%		8.13	%		9.75	%		4.88	%		3.25	%
CDI		5.77	%		7.21	%		8.66	%		4.33	%		2.89	%
TJ462		8.30	%		10.13	%		11.95	%		6.48	%		4.65	%
TJLP		7.30	%		9.13	%		10.95	%		5.48	%		3.65	%
IPCA		3.33	%		4.16	%		5.00	%		2.50	%		1.67	%
IGPM		3.24	%		4.05	%		4.86	%		2.43	%		1.62	%
FED FUNDS		2.50	%		3.13	%		3.75	%		1.88	%		1.25	%

(i) The external source used by the company for market projections was a specialized consultant.

(ii) The probable scenario for derivative financial instruments represents the currentmark-to-market balance.

Financial instruments fair value

The market value of the Senior Notes and Perpetual Notes are listed on the Luxembourg Stock Exchange (Note 15) is based on their quoted market price are as follows:

Loan	Company	June 30, 2018	December 31, 2017
Senior Notes Due 2018	Cosan S.A	—	100.37%
Senior Notes Due 2023	Cosan S.A	96.27%	101.54%
Senior Notes Due 2024	Rumo S.A	101.50%	107.86%
Senior Notes Due 2025	Rumo S.A	91.91%	—
Senior Notes Due 2027	Cosan S.A	97.50%	108.14%
Senior Notes Due 2024	Cosan Limited	93.44%	102,79%
Perpetual Notes	Cosan S.A	99.53%	102.83%

The fair value of other loans and financing, the respective market values substantially approximate the amounts recorded due to the fact that these financial instruments are subject to variable interest rates (Note 15).

56

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

The carrying amounts and fair value of financial assets and financial liabilities are as follows:

							Assets and liabilities measured at fair value
	Carrying amount						June 30, 2018						December 31, 2017
	June 30, 2018			December 31, 2017			Level 2			Level 3			Level 2			Level 3
Assets
Investment funds		2,003,066			1,852,114			2,003,066			—			1,852,114			—
Marketable securities		3,804,706			3,853,343			3,804,706			—			3,853,343			—
Derivate financial instruments		1,740,544			1,162,213			1,740,544			—			1,162,213			—
Total		7,548,316			6,867,670			7,548,316			—			6,867,670			—
Liabilities
Loans, borrowings and debentures		(11,535,682	)		(7,830,237	)		(11,535,682	)		—			(7,830,237	)		—
Contingent consideration(i)		(54,494	)		(116,542	)		—			(54,494	)		—			(116,542	)
Derivative financial instruments		(31,447	)		(115,085	)		(31,447	)		—			(115,085	)		—
Total		(11,621,623	)		(8,061,864	)		(11,567,129	)		(54,494	)		(7,945,322	)		(116,542	)

(i) The valuation of the contingent consideration considers the present value of expected payment, discounted using a risk-adjusted discount rate. The expected payment is determined by considering the probable scenarios of forecast revenue and EBITDA, the amount to be paid under each scenario and the probability of each scenario. The significant unobservable inputs are the forecast of the annual growth rate of revenue, EBITDA margin forecast and the 13% discount rate adjusted for risk

Hedge accounting

Currently the Company has adopted the hedge accounting of fair value for some its operations that both the hedging instruments and the hedged items are accounted for at fair value through profit or loss. Operations and accounting effects of this adoption are as follows:

	Debt			Derivative		Total
At January 01, 2018		(4,218,221	)		358,706		(3,859,515	)
Initial measurement		(3,478,165	)		—		(3,478,165	)
Interest amortization		99,624			43,211		142,835
Fair value		(795,610	)		379,183		(416,427	)
At June 30, 2018		(8,392,372	)		781,100		(7,611,272	)

In order to protect the Company from possible fluctuations in exchange rates, was designated on June 1, 2018, hedge accounting (fair value hedge) for the amount of USD 400,000 thousand of the loan agreement “Senior Notes due 2024”. The Company used derivative operations, cash flow swaps, to swap the exchange rates and interest rate per percentage of CDI. The company will designate the full notional of the loan agreement for hedge accounting as soon as it closes the swap deal to complete the USD 500,000 thousand notional.

57

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

27 Post-employment benefits

	June 30, 2018		December 31, 2017
Futura		46,731		44,431
Futura II		193		1,237
Comgás		447,752		439,791
		494,676		485,459

Pension plan

During the period ended June 30, 2018, the amount of sponsor contributions to the plans was R$ 16,411 (R$ 13,999 for the period ended June 30, 2017).

58

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

28 Share-based payment

As at June 30, 2018 the Company has two share-based payment plans: (i) Stock Option Plan which provides an option to executives to buy the shares of the Company and (ii) Stock Based Compensation Plan which provides to executives a grant of shares of the Company.

The plans have been administered by the Board of Directors of each Company, at its option, by a Committee, within the limits established in the guidelines for the elaboration and structuring of each plan and in the applicable legislation.

i. Program Features

							Number of instruments on June 30, 2018
Programs	Expected life (years)		Interest rate—%		Expected volatility—%		Granted		Vested or cancelled option			Outstanding		Market price on grant date		Exercise price at June 30, 2018		Fair value at grant date		Expenses recorded in P&L
Stock option programs
08/18/2011—Cosan S.A		1 to 7		12.39%		31.44%		4,825,000		(4,590,000	)		235,000		22.80		25.69		6.80		—
08/18/2011—Cosan S.A		1 to 12		12.39%		30.32%		5,000,000		(2,500,000	)		2,500,000		22.80		25.69		8.15		629
12/12/2012—Cosan S.A		1 to 7		8.78%		31.44%		700,000		(420,000	)		280,000		38.89		47.60		10.10		—
04/24/2013—Cosan S.A		5 to 7		13.35%		27.33%		970,000		(120,000	)		850,000		45.22		54.48		17.95		423
04/25/2014—Cosan S.A		5 to 7		12.43%		29.85%		960,000		(80,000	)		880,000		39.02		43.92		15.67		544
08/31/2015—Cosan S.A		5 to 7		14.18%		33.09%		759,000		(100,000	)		659,000		19.96		18.34		7.67		618
								13,214,000		(7,810,000	)		5,404,000								2,214
Stock-Grant Programs
09/21/2017—Cosan Limited (i)		5		—		—		255,000		—			255,000		8.10—US$		—		8.10—US$		545
08/18/2017—Cosan Limited		10		—		—		2,053,632		(2,053,632	)		—		7.32—US$		—		7.32—US$		17,541
04/27/2017—Cosan S.A		5		15.00%		32.75%		274,000		(53,700	)		220,300		32.11		—		32.11		1,058
07/31/2017—Cosan S.A		5		15.00%		33.70%		298,107		(54,948	)		243,159		36.06		—		36.06		1,263
04/20/2017—Comgás		5		12.16%		27.20%		61,300		—			61,300		47.80		—		37.29		266
12/08/2017—Comgás		5		10.09%		30.00%		97,780		—			97,780		54.25		—		36.37		392
10/01/2015—Rumo S.A		5		11.33%		42.75%		1,485,900		(161,600	)		1,324,300		6.10		—		6.10		1,057
01/02/2017—Rumo S.A		5		11.33%		42.75%		1,476,000		(106,600	)		1,369,400		6.10		—		6.10		1,116
09/01/2017—Rumo S.A		5		9.93%		29.76%		870,900		(17,950	)		852,950		10.42		—		10.42		1,270
								6,872,619		(2,448,430	)		4,424,189								24,508

(i) Cash settled

59

Cosan Limited

Notes to the consolidated financial statements

(In thousands of Brazilian Reais – R$, unless otherwise stated)

ii. Reconciliation of outstanding stocks

	Stock option programs					Stock-Grant Programs
	Quantity			Weighted-average exercise price—R$		Quantity
At January 1, 2018		6,146,000			32.28		4,515,837
Granted(i)		—			—		1,476,531
Vested(i)		(707,000	)		23.41		(1,517,401	)
Cancelled		(35,000	)		—		(50,778	)
At June 30, 2018		5,404,000			33.43		4,424,189

(i) In the period ended June 30, 2018, 1,476,531 shares were granted and vested by the beneficiaries of the Stock-Grant Plan – Equity-settled – Cosan Limited

29 Subsequent events

29.1 Acquisition of WX Energy

On July 5, 2018, Raízen Energia, through its subsidiary Bio Barra, signed a shareholders’ agreement with WX Energy Participações Ltda., which formalized the commitment to invest the approximate amount of R$ 95,000 in the company RWXE Participações S.A, a company incorporated as a result of this business combination and parent company of WX Energy Comercializadora de Energia Ltda. With this transaction, Raízen Energia S.A, 70% of RWXE, expands its presence in electric energy trading, diversifying its portfolio of products.

29.2 Acquisition of Canaviais from Usina Açucareira Furlan S.A (“Usina Furlan”)

On July 5, 2018, Raízen Energia entered into agreements with São Martinho S.A (“São Martinho”), which provide for the acquisition of the biological assets of Usina Furlan S.A, related to the Santa Bárbara D’Oeste (SP) plant, as well as the lease of land owned by Usina Furlan S.A and Agro Pecuária Furlan S.A. Raízen S.A and São Martinho will independently assume 2/3 and 1/3, respectively, of the agricultural and supply contracts totaling approximately 1 million tons of sugarcane in the region. In addition, such agreements provide that the Company and São Martinho must pay the approximate amount of R$ 118,000 in the proportion established above. The conclusion of the Transaction is in line with the strategy of increasing the availability of cane for processing at Raízen mills and is subject to certain conditions, as well as approval by CADE.

29.3 Approval of financial suport in Rumo S.A and its subsidiaries

On August 7, 2018, Rumo S.A., jointly with its subsidiaries Rumo Malha Norte S.A. and Rumo Malha Sul S.A., informed that had received from Brazilian Development Bank (“BNDES”), the information that on the date hereof, the executive officers of the bank had approved financial support for its subsidiaries in the total amount of R$ 2,887,000. The loan from the BNDES will be used to support investments in connection with the rail freight concession and is still subject to the fulfillment of certain conditions precedent.

***

60

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 9, 2018

COSAN LIMITED
By:	/s/ Marcelo Eduardo Martins
	Name: Marcelo Eduardo Martins Title: Chief Financial Officer