Cosan 6-K Current report (foreign)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

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

of the Securities Exchange Act of 1934

For the month of August, 2019

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

Interim consolidated financial statements

June 30, 2019 and 2018

Contents

Independent Auditors’ 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 interim consolidated financial statements	13

F-2

KPMG Auditores Independentes

Rua Arquiteto Olavo Redig de Campos, 105, 6º andar—Torre A

04711-904—São Paulo/SP—Brasil

Caixa Postal 79518—CEP04707-970—São Paulo/SP—Brasil

Telefone +55 (11) 3940-1500

kpmg.com.br

Independent Auditors’ Report on Review of Interim Financial Information

To the Management, Board of Directors and Shareholders of

Cosan Limited

Bermudas

Introduction

We have reviewed the accompanying June 30, 2019 consolidated interim financial information of Cosan Limited (“the Company”), which comprises the consolidated statement of financial position as at June 30, 2019 and the respective consolidated statements of profit or loss and comprehensive income for the three andsix-month periods then ended and the consolidated statements of changes in equity and cash flows for thesix-month period ended June 30, 2019, and the notes to the interim financial information.

Management is responsible for the preparation and presentation of this consolidated interim financial information in accordance with IAS 34, ‘Interim Financial Reporting. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the Brazilian and International Standard on Review Engagements (NBC TR 2410—Revisão de Informações Intermediárias Executada pelo Auditor da Entidadeand ISRE 2410—Review of Interim Financial Information Performed by the Independent Auditor of the Entity). A review of interim financial information consists of making inquiries, primarily of persons responsible for 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 International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying June 30, 2019 consolidated interim financial information do not present fairly, in all material respects, the financial position, financial performance and cash flows of the entity in accordance with IAS 34, ‘Interim Financial Reporting’.

São Paulo, August 15, 2019

KPMG Auditores Independentes

CRC2SP014428/O-6

Fabian Junqueira Sousa

Accountant CRC1SP235639/O-0

F-3

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais – R$)

	Note		June 30, 2019		December 31, 2018
Assets
Cash and cash equivalents		5.1		5,002,763		3,621,798
Marketable securities		5.2		2,204,385		4,202,835
Trade receivables		5.3		2,064,415		1,545,643
Derivative financial instruments		5.8		158,637		181,815
Inventories		7		808,710		716,290
Receivables from related parties		5.4		51,842		44,680
Income tax receivable				198,085		279,157
Other current tax receivable		6		900,110		796,199
Dividends receivable				36,642		27,320
Other financial assets				70,631		—
Other current assets				456,041		543,853
Total current assets				11,952,261		11,959,590
Tradenon-current receivables		5.3		31,395		42,549
Restricted cash		5.2		167,820		115,124
Deferred tax assets		13		1,665,535		1,540,693
Receivables from related parties		5.4		90,097		90,390
Income taxes receivable				258,437		260,330
Othernon-current tax receivable		6		828,451		851,492
Judicial deposits		14		932,855		878,807
Other financial assets				72,023		—
Derivative financial instruments		5.8		3,059,721		2,367,042
Othernon-current assets				549,026		407,916
Investments in associates		8.1		373,526		378,519
Investments in joint ventures		9		7,580,406		8,077,907
Right-of-use assets		10.3		1,674,828		—
Property, plant and equipment		10.1		11,852,286		12,417,822
Intangible assets and goodwill		10.2		16,903,170		16,972,535
Totalnon-current assets				46,039,576		44,401,126
Total assets				57,991,837		56,360,716
The accompanying notes are an integral part of these interim financial statements.

F-4

Cosan Limited

Consolidated statements of financial position

(In thousands of Brazilian Reais – R$)

	Note		June 30, 2019			December 31, 2018
Liabilities
Loans, borrowings and debentures		5.5		2,982,702			2,115,305
Leases		5.6		198,537			120,491
Derivative financial instruments		5.8		192			3,880
Trade payables		5.7		2,046,251			1,923,920
Employee benefits payable				300,916			339,968
Income tax payables				206,580			36,164
Other taxes payable		12		383,046			245,587
Dividends payable				38,881			187,415
Concessions payable		11		9,530			28,797
Payables to related parties		5.4		392,350			355,971
Deferred revenue				7,548			9,473
Other financial liabilities				397,526			455,702
Other current liabilities				299,049			418,145
Total current liabilities				7,263,108			6,240,818
Loans, borrowings and debentures		5.5		21,503,702			20,459,008
Leases		5.6		1,730,829			432,859
Preferred shareholders payable in subsidiaries				887,602			1,097,490
Derivative financial instruments		5.8		44,204			21,834
Other taxes payable		12		158,515			154,599
Provision for legal proceedings		14		1,439,212			1,363,168
Concessions payable		11		3,299,317			3,179,771
Post-employment benefits		22		592,858			579,870
Deferred tax liabilities		13		4,111,583			4,093,019
Deferred revenue				38,889			42,044
Othernon-current liabilities				730,104			726,880
Totalnon-current liabilities				34,536,815			32,150,542
Total liabilities				41,799,923			38,391,360
Shareholders’ equity		15
Share capital				5,328			5,328
Additionalpaid-in capital				2,017,154			3,112,274
Accumulated other comprehensive loss				(703,496	)		(587,173	)
Retained earnings				3,986,003			4,083,974
Profit for the period				398,617			—
Equity attributable to:
Owners of the Company				5,703,606			6,614,403
Non-controlling interests		8.2		10,488,308			11,354,953
Total shareholders’ equity				16,191,914			17,969,356
Total shareholders’ equity and liabilities				57,991,837			56,360,716
The accompanying notes are an integral part of these interim financial statements.

F-5

Cosan Limited

Consolidated statement of profit or loss

and other comprehensive income

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

	Note		April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Net sales		17		5,072,859			9,793,071			4,074,491			7,617,919
Cost of sales		18		(3,477,346	)		(6,946,673	)		(2,913,297	)		(5,425,976	)
Gross profit				1,595,513			2,846,398			1,161,194			2,191,943
Selling expenses		18		(267,905	)		(531,927	)		(247,532	)		(492,601	)
General and administrative expenses		18		(282,696	)		(541,181	)		(236,354	)		(449,705	)
Other income (expenses), net		19		3,384			(1,684	)		(20,859	)		(43,520	)
Operating expenses				(547,217	)		(1,074,792	)		(504,745	)		(985,826	)
Profit before equity in earnings of investees, financial results and taxes				1,048,296			1,771,606			656,449			1,206,117
Interest in earnings of associates		8		7,086			(19,712	)		18,444			15,638
Interest in earnings of joint ventures		9		58,410			362,243			50,457			348,113
Equity in earnings of investees				65,496			342,531			68,901			363,751
Finance expense				(1,122,793	)		(1,930,174	)		(512,419	)		(1,012,302	)
Finance income				192,074			318,870			158,242			347,090
Foreign exchange, net				178,257			107,113			(1,391,779	)		(1,467,735	)
Derivatives				436,709			665,811			1,002,121			868,433
Finance results, net		20		(315,753	)		(838,380	)		(743,835	)		(1,264,514	)
Profit (loss) before taxes				798,039			1,275,757			(18,485	)		305,354
Income tax (expenses), benefits		13
Current				(253,209	)		(405,479	)		(36,198	)		16,187
Deferred				(4,167	)		66,814			36,516			(98,921	)
				(257,376	)		(338,665	)		318			(82,734	)
Profit (loss) for the period				540,663			937,092			(18,167	)		222,620

F-6

Cosan Limited

Consolidated statement of profit or loss

and other comprehensive income

(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	—		(2	)	(988	)	(1,042	)
	—		(2	)	(988	)	(1,042	)
Items that are or may subsequently be reclassified to profit or loss:
Foreign currency translation effect	(19,152	)	(52,246	)	(196,176	)	(220,023	)
Gain / (loss) on cash flow hedge in joint ventures	27,957		(151,920	)	(87,271	)	(83,954	)
Changes in fair value of financial assets	65		75		21		53
	8,870		(204,091	)	(283,426	)	(303,924	)
Total other comprehensive (loss) income, net of tax	8,870		(204,093	)	(284,414	)	(304,966	)
Total comprehensive income	549,533		732,999		(302,581	)	(82,346	)
Total net income attributable to:
Owners of the Company	208,401		398,617		22,683		128,987
Non-controlling interests	332,262		538,475		(40,850	)	93,633
	540,663		937,092		(18,167	)	222,620
Total comprehensive income attributable to:
Owners of the Company	228,318		282,294		(253,103	)	(123,525	)
Non-controlling interests	321,215		450,705		(49,478	)	41,179
	549,533		732,999		(302,581	)	(82,346	)
Earnings per share from:
Basic earnings per share	R$0.9024		R$1.7279		R$0.0931		R$0.5298
Diluted earnings per share	R$0.8647		R$1.6546		R$0.0897		R$0.5057

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

F-7

Cosan Limited

Consolidated statement of changes in equity

(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, 2018		5,328		3,112,274			(587,173	)		4,083,974			6,614,403			11,354,953			17,969,356
Initial adoption of IFRS 16, net of tax—Note 3.1		—		—			—			(97,971	)		(97,971	)		(377,420	)		(475,391	)
At January 1, 2019		5,328		3,112,274			(587,173	)		3,986,003			6,516,432			10,977,533			17,493,965
Net income for the period		—		—			—			398,617			398,617			538,475			937,092
Other comprehensive income: Note 15
Lose on cash flow hedge in joint ventures		—		—			(91,541	)		—			(91,541	)		(60,379	)		(151,920	)
Foreign currency translation effects		—		—			(24,827	)		—			(24,827	)		(27,419	)		(52,246	)
Actuarial loss on defined benefit plan		—		—			—			—			—			(2	)		(2	)
Change in fair value of financial assets		—		—			45			—			45			30			75
Total comprehensive income for the period		—		—			(116,323	)		398,617			282,294			450,705			732,999
Contributions by and distributions to owners of the Company:
Dividends—non-controlling interests		—		(5,667	)		—			—			(5,667	)		5,667			—
Dividends		—		—			—			—			—			(12,131	)		(12,131	)
Treasury shares acquired		—		(473,456	)		—			—			(473,456	)		—			(473,456	)
Share-based payment transactions		—		23,502			—			—			23,502			5,587			29,089
Total contributions by and distributions to owners of the Company		—		(455,621	)		—			—			(455,621	)		(877	)		(456,498	)
Transactions with owners of the Company
Change of shareholding interest in subsidiary		—		(639,499	)		—			—			(639,499	)		(939,053	)		(1,578,552	)
At June 30, 2019		5,328		2,017,154			(703,496	)		4,384,620			5,703,606			10,488,308			16,191,914
The accompanying notes are an integral part of these interim financial statements.

F-8

Cosan Limited

Consolidated statement of changes in equity

(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
Adjustment on initial application of IFRS 9, net of tax		—		—			—			(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
Net income for the year		—		—			—			128,987			128,987			93,633			222,620
Other comprehensive income: Note 15
Gain 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 financial assets		—		—			37			—			37			16			53
Total comprehensive income for the year		—		—			(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 interim financial statements.

F-9

Cosan Limited

Consolidated statement of cash flows

(In thousands of Brazilian Reais – R$)

	Note		June 30, 2019			June 30, 2018
Cash flows from operating activities
Profit before taxes				1,275,757			305,354
Adjustments for:
Depreciation and amortization				1,118,653			987,951
Lease and concession				—			100,631
Interest in earnings of associates		8.1		19,712			(15,638	)
Interest in earnings of joint ventures		9		(362,243	)		(348,113	)
Loss on disposals assets				7,346			869
Share-based payment				30,091			25,973
Legal proceedings provision				64,775			56,087
Indexation charges, interest and exchange, net				918,090			1,329,278
Deferred revenue				(5,080	)		(4,860	)
Provisions for employee benefits				104,333			83,579
Allowance for doubtful accounts				(6,786	)		6,657
Gas paid and not used				(91,821	)		—
Recovering tax credits				(48,285	)		—
Other				(45,186	)		(11,739	)
				2,979,356			2,516,029
Changes in:
Trade receivables				(442,819	)		(206,513	)
Inventories				(98,383	)		(63,411	)
Other current tax, net				131,396			(87,979	)
Income tax				(120,982	)		(87,216	)
Related parties, net				8,333			(58,274	)
Trade payables				170,589			23,307
Employee benefits				(151,489	)		(142,426	)
Provision for legal proceedings				(59,298	)		(56,191	)
Other financial assets				(67,244	)		(8,511	)
Judicial deposits				(36,295	)		(31,715	)
Cash received on sale of credit rights				—			1,340,000
Post-employment benefits				(16,645	)		(16,043	)
Gas paid and not used				161,463			—
Concessions payable				—			(53,310	)
Other assets and liabilities, net				(259,087	)		(173,699	)
				(780,461	)		378,019
Net cash generated by operating activities				2,198,895			2,894,048
Cash flows from investing activities
Capital contribution in associates		8.1		(26,045	)		(6,162	)
Acquisition of subsidiary, net of cash acquired				(8,785	)		(72,985	)
Marketable securities				2,073,212			130,832
Restricted cash				(52,818	)		59,150
Dividends received from associates				8,246			11,251
Dividends received from joint ventures				688,120			723,651
Acquisition of property, plant and equipment, intangible assets,right-of-use assets and contract assets				(1,315,701	)		(1,313,437	)
Cash received on sale of fixed assets, and intangible assets				8,028			1,369
Net cash generated in investing activities				1,374,257			(466,331	)

F-10

Cosan Limited

Consolidated statement of cash flows

(In thousands of Brazilian Reais – R$)

Cash flows from financing activities
Loans, borrowings and debentures raised	5.5	3,020,332		2,721,150
Amortization of principal on loans, borrowings and debentures	5.5	(1,809,575	)	(3,821,208	)
Payment of interest on loans, borrowings and debentures	5.5	(618,364	)	(663,800	)
Payment of derivative financial instruments		(93,007	)	(628,430	)
Receipt of derivative financial instruments		137,823		794,954
Amortization of principal on leases	5.6	(108,221	)	(299,126	)
Payment of interest on leases	5.6	(85,255	)	(76,790	)
Real estate credit certificates		—		(53,580	)
Capital integralization fromnon-controlling interest	8.2	434,000		—
Payments to redeem entity’s shares	1	(473,456	)	(607,932	)
Non-controlling interest subscription		1,192		4,163
Acquisition ofnon-controlling interests (i)		(2,141,675	)	—
Dividends paid		(414,910	)	(579,025	)
Share options exercised		—		18,498
Net cash used in financing activities		(2,151,116	)	(3,191,126	)
Increase (decrease) in cash and cash equivalents		1,422,036		(763,409	)
Cash and cash equivalents at beginning of period		3,621,798		4,555,177
Effect of exchange rate fluctuations on cash held		(41,071	)	281,277
Cash and cash equivalents at end of period		5,002,763		4,073,045
Additional information
Income tax paid		115,554		59,940
The accompanying notes are an integral part of these interim financial statements.

(i) Acquisition of class A preferred shares issued by Companhia de Gás de São Paulo – Comgás (“Comgás”), where 22,597886 Preferred Shares and 2,479,066 ordinary shares were acquired by subsidiary Cosan S.A., representing 18,99% of Comgás’ capital stock in the amount of R$2,063,210 and the Company acquired class A common shares issued by Cosan Logística S.A. (“Cosan Logística”) in the amount of R$78,657.

F-11

Cosan Limited

Consolidated statement of cash flows

(In thousands of Brazilian Reais – R$)

Non-cash transaction

i. Acquisitions of assets for the construction of the distribution network with payment of term in the amount of R$60,493.

ii. Acquisitions of assets with payment of term in the amount of R$5,949.

iii. Consideration asset in the subsidiary Moove, with a down payment in the amount of R$128,000.

iv. Recognition of indemnity claims in the amount of R$ 50,284 (Note 19) and recognition of tax assets related to the exclusion of ICMS in the PIS and Cofins tax base in the amount of R $ 54,232 (Note 6).

Disclosure of interest and dividends

The Company discloses the dividends and interest on shareholders’ equity received as cash flow from investing activities, with the purpose of avoiding distortions in its cash flows from operation activities.

Interest received or paid is classified as cash flow from financing activities, as it is considered to refer to the costs of obtaining financial resources.

F-12

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

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, or “NYSE,” (ticker—CZZ). Mr. Rubens Ometto Silveira Mello is the ultimate controlling shareholder of Cosan. Cosan controls its subsidiaries Cosan S.A. and Cosan Logística S.A. (“Cosan Logística”) through a 60.25% and 73.46% interest, respectively. Cosan, Cosan S.A., Cosan Logística and its subsidiaries are collectively referred to as the “Company.”

On January 3, 2019, the Company acquired 14,228,134 of our Class A common shares pursuant to a tender offer at a purchase price of U.S.$8.88 per share, for a total cost of approximately R$473,456 excluding fees and other related expenses. These shares represented 9.6% of the issued and outstanding Class A common stock of Cosan Limited as of December 31, 2018. The shares accepted for purchase included 2,966,873 additional shares that Cosan Limited elected to purchase pursuant to its right to purchase up to an additional 2% of its outstanding Class A common shares. After giving effect to the purchase, we had 134,115,534 outstanding Class A common shares remaining.

On March 28, 2019, Rumo S.A. (“Rumo”) announced that it has won the tender (International Bidding No. 02/2018) organized by ANTT to operate the railway network located between the cities of Porto Nacional, in the state of Tocantis and Estrela d’Oeste, in the state of São Paulo. Rumo’s bid was of R$2,719,000. The concession contract guaranteeing the right to operate the railway network will be valid for 30 years from the date of signature which occurred on July 31, 2019 (Note 24.4).

On April 24, 2019, we announced the cancellation of 32,239,807 Class A common shares held in treasury, representing 11.91% of Cosan Limited’s capital stock. After giving effect to the cancellation, we had 142,115,534 total Class A common shares remaining.

On May 31, 2019, the São Paulo State Sanitation and Energy Regulatory Agency (“ARSESP”), resolved on the 4th Ordinary Tariff Review regarding the update of Comgás subsidiary rates, applied from that date, on all segments. The annual adjustment consists essentially of the inflation replacement(IGP-M) and the transfer of the gas and transportation cost variation, as defined by Petrobras. The process of the 3rd Tariff Review, contractually scheduled to take place in May 2014, remains unfinished.

2 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, 2018.

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, 2018, except for the adoption of IFRS 16 Leases, whose effects and changes are disclosed in Note 3.1, effective as of January 1, 2019. 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 interim consolidated financial statements were authorized for issue by the Board of Directors on August 09, 2019.

F-13

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

3 Accounting policies

These interim consolidated financial statements were prepared based on the preparation basis and accounting policies consistent with those adopted in the preparation of the financial statements as of December 31, 2018, except for the adoption of IFRS 16—Leases, whose effects and changes are disclosed in Note 3.1 effective as of January 1, 2019. The Company has not adopted in advance any other standard or interpretation issued that is not yet in force.

3.1 New standards, interpretations and changes adopted by the Company

IFRS 16 Leases

IFRS 16 introduced a single model for the accounting of leases in the balance sheet of lessees. As a result, the Company, as a lessee, recognized the rights to use assets that represent its rights to use the underlying assets and the lease liabilities that represent its obligation to make lease payments. The lessor’s accounting remains similar to previous accounting policies.

The Company has chosen to use the modified retrospective approach in which the cumulative effect of the initial adoption is recognized as an adjustment to the opening balance of retained earnings on January 1, 2019. Therefore, the comparative information presented for the year ended December 31, 2018 has not been restated—or and is presented as previously reported in accordance with IAS 17 and related interpretations. The details of the changes in accounting policies are disclosed below:

(a) In the definition of lease

Previously, the Company determined, at the inception of the agreement, whether it was or contained a lease under IFRIC 4—Complementary Aspects of Leasing Operations. The Company now assesses whether a lease is or contains a lease based on the new lease definition. According to IFRS 16, a contract is or contains a lease if it transfers the right to control the use of an identified asset for a period of time in exchange for consideration.

In the transition to IFRS 16, the Company opted to apply the practical case of maintaining the evaluation of which transactions are leases, to which IFRS 16 applied. The contracts that were not identified as leases in accordance with IAS 17 and IFRIC 4 were not revalued. Accordingly, the new lease definition in accordance with IFRS 16 was applied only to contracts entered into or amended on or after January 1, 2019.

At the inception or revaluation of a lease component, the Company allocates the lease consideration to each lease component rather than lease based on its individual lease price.

(b) In the treatment as a lessee

The company leases assets, including real estate, rail infrastructure, port, rolling stock (locomotives and wagons), vehicles and IT equipment. As a lessee, the Company previously classified operating or financial leases based on its assessment as to whether the lease substantially transferred all the risks and benefits of the property. In accordance with IFRS 16, the Company recognizes the right to use assets and the lease liabilities for most leases—that is, these leases are recorded in the balance sheet.

However, the Company has elected not to recognizeright-of-use assets and lease liabilities for some leases of low value assets (eg IT equipment). The Company recognizes the payments associated with these leases as an expense under the straight-line method over the lease term.

The Company presents the carrying amounts of theright-of-use assets (including assets previously classified as financial leases) in a specific balance sheet line called“Right-of-use assets”. Likewise, it records the liabilities in a separate account called “Leases”.

F-14

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

(i) Accounting policy adopted as of January 1, 2019 meaning:

Previously, the Company determined at the inception of the agreement whether it was or contained a lease under IFRIC 4—Complementary Aspects of Leasing Operations. The company now assesses whether a lease is or contains a lease based on the new lease definition. According to IFRS 16, a contract is or contains a lease if it transfers the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company recognizes aright-of-use assets and a lease liability at the date of commencement of the lease.

Theright-of-use assets is initially measured at cost and subsequently at cost less any accumulated depreciation and impairment, and adjusted for certain measurements of lease liabilities.

The lease liability is initially measured at the present value of the lease payments that were not paid at the commencement date, discounted using the interest rate implied in the lease or, if that rate can not be determined immediately, the incremental loan rate of Company and its subsidiaries. Generally, the Company uses its incremental loan rate as the discount rate.

The Company has applied a judgment to determine the lease term of some contracts that include renewal options. The evaluation of whether the Company is reasonably certain to exercise these options has an impact on the term of the lease, which significantly affects the value of lease liabilities and recognizedright-of-use assets. The extension and termination options are included in several lease agreements throughout the Company. These terms are used to maximize operational flexibility in terms of contract management. Most of the extension and termination options exercised are exercisable by both participants (lessor and lessee).

(ii) Transition

Previously, the Company classified leases of railway infrastructure and rolling stock as operating leases in accordance with IAS 17. Some leases are adjusted by inflation indexes such asIGP-M or IPCA.

Lease liabilities were measured at the present value of the remaining payments, discounted by the incremental loan rate of the Company on January 1, 2019. The rights to use assets are measured:

i. At its book value as if IFRS 16 had been applied since the commencement date, discounted by the lessee’s incremental borrowing rate at the date of initial application—the company applied this approach to its larger property leases infrastructure, port and rolling stock; or

ii. At the amount equivalent to the lease liability, adjusted for the amount of any prepayment or accumulated rent—the Company applied this approach to all other leases.

The Company used the following practical arrangements when applying IFRS 16 to leases previously classified as operating leases in accordance with IAS 17:

i. It applied the exemption for not recognizingrights-of-use assets and liabilities for leases with terms less than 12 months.

ii. Excluded the initial direct costs of measuring the right to use asset at the date of initial application.

iii. It used late perception when determining the term of the lease if the contract contained options to extend or terminate the lease.

Leases classified and previously recorded as finance leases under IAS 17 had the book value of the right to use the asset and the lease liability on January 1, 2019 determined by the carrying amount of the lease and liability assets lease immediately prior to that date. Extension and termination options are included in various lease agreements throughout the Company. These terms are used to maximize operational flexibility in terms of contract management. Most of the extension and termination options exercised are exercisable by both participants (lessor and lessee).

F-15

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

(c) Impact on statement of financial position on January 1, 2019:

	January 1, 2019
Current assets
Other current assets		1,526
Non-current assets
Othernon-current assets		7,878
Deferred tax assets		41,709
Right-of-use assets		888,262
Total onnon-current assets		937,849
Total on assets		939,375
Current liabilities
Leases		(67,823	)
Non-current liabilities
Leases		(1,346,943	)
Total on liabilities		(1,414,766	)
Shareholders’ equity
Retained earnings		475,391
Total on shareholders’ equity		475,391

When measuring lease liabilities for those leases previously classified as operating leases, the Company discounted lease payments using its incremental loan rate on January 1, 2019. The weighted average rates applied follow a range from 4.00% to 8.11% per year.

The joint ventures Raízen Energia S.A. and Raízen Combustíveis S.A. recognized the lease liability and the right to use asset at the date of the initial application for leases previously classified as operating leases, retrospectively, with cumulative effect. These joint ventures used as a practical expedient the use of a single discount rate on the lease portfolio with similar characteristics.

3.2 Other standards and interpretations effective as of January 1, 2019, without effects on the financial statements

IFRIC Interpretation 23 Uncertainty over Income Tax Treatment

The Interpretation addresses the accounting of income taxes when tax treatment involves uncertainty that affects the application of IAS 12 and does not apply to taxes or charges outside the scope of IAS 12, nor does it specifically treatment of interest and penalties associated with uncertain taxes.

The Company is subject to examination by the tax authorities, with the five fiscal years open in general. The Company has audits in progress at various stages of completion, one of which may be completed within the next 12 months. However, at that time, the Company had no uncertainties regarding the treatment of income tax.

The Company has not identified effects of interpretation adoption IFRIC 23 that could affect the Company accounting policies and its interim consolidated financial statements.

F-16

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

4 Segment information

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”).

Reported segments:

i. Raízen Energia: production and marketing of a variety of products derived from sugar cane, including raw sugar (Very High Polarization, or “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 “Shell” brand throughout Brazil, petroleum refining, the operation of fuel resellers, the manufacture and sale of automotive and industrial lubricants, and the production and sale of liquefied petroleum gas throughout Argentina;

iii. Comgás: distribution of piped natural gas to part of the State of São Paulo to customers in the industrial, residential, commercial, automotive and cogeneration sectors;

iv. Logistic: logistics services for rail transportation, storage and port loading of commodities, mainly for grains and sugar, leasing of locomotives, wagons and another railway equipment; and

v. Moove: production and distribution of Mobil brand licensed lubricants in Brazil, Bolivia, Uruguay, Paraguay, Argentina, the United States and the European market, under the Comma brand for the European and Asian markets and corporate activities.

Reconciliation:

i. Cosan Corporate: digital wallet platform and other investments, in addition to the corporate activities of the Company. The Cosan corporate segment includes the financing subsidiaries for the Cosan group.

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

F-17

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	April 1, 2019 to June 30, 2019
	Reported segments																		Reconciliation									Consolidated
	Raízen Energia			Raízen Combustíveis						Comgás			Moove			Logistic			Cosan Corporate			Deconsolidated effects			Segment elimination
				Brazil			Argentina
Statement of profit or loss:
Gross sales		6,414,950			23,106,912			4,361,663			2,956,167			1,255,566			1,821,590			10			(33,883,525	)		828			6,034,161
Domestic market(i)		5,322,458			23,106,912			4,361,663			2,956,167			1,239,762			1,821,590			10			(32,791,033	)		828			6,018,357
External market(i)		1,092,492			—			—			—			15,804			—			—			(1,092,492	)		—			15,804
Net sales		6,084,101			22,026,216			3,084,782			2,338,800			1,004,483			1,728,740			8			(31,195,099	)		828			5,072,859
Cost of sales		(5,690,189	)		(21,209,525	)		(2,806,390	)		(1,550,871	)		(784,921	)		(1,140,694	)		(32	)		29,706,104			(828	)		(3,477,346	)
Gross profit		393,912			816,691			278,392			787,929			219,562			588,046			(24	)		(1,488,995	)		—			1,595,513
Selling expenses		(172,208	)		(386,104	)		(166,731	)		(152,088	)		(120,743	)		7,258			(2,332	)		725,043			—			(267,905	)
General and administrative expenses		(150,989	)		(121,047	)		(31,390	)		(89,503	)		(39,713	)		(88,385	)		(65,095	)		303,426			—			(282,696	)
Other income (expenses), net		423			117,241			28,825			17,450			(972	)		(5,489	)		(7,605	)		(146,489	)		—			3,384
Interest in earnings of associates		—			51,242			—			—			(774	)		3,825			656,209			(51,242	)		(652,174	)		7,086
Interest in earnings of joint ventures		(8,947	)		—			—			—			—			—			58,410			8,947			—			58,410
Financial results		(243,951	)		(106,568	)		(19,125	)		(36,898	)		13,049			(258,617	)		(33,287	)		369,644			—			(315,753	)
Finance expense		(443,947	)		(295,372	)		(14,614	)		(100,418	)		(15,793	)		(624,910	)		(381,672	)		753,933			—			(1,122,793	)
Finance Income		122,308			89,958			7,106			63,480			14,647			45,354			68,593			(219,372	)		—			192,074
Foreign exchange losses, net		27,268			127,255			21,498			9,232			20,685			86,300			62,040			(176,021	)		—			178,257
Derivatives		50,420			(28,409	)		(33,115	)		(9,192	)		(6,490	)		234,639			217,752			11,104			—			436,709
Income tax (expense) benefit		56,939			(94,478	)		(38,729	)		(180,473	)		(17,560	)		(61,621	)		2,278			76,268			—			(257,376	)
Profit (loss) from continuing operations		(124,821	)		276,977			51,242			346,417			52,849			185,017			608,554			(203,398	)		(652,174	)		540,663
Net income attributable to:
Owners of the Parent		(138,456	)		262,621			51,242			335,897			36,302			50,751			606,418			(175,407	)		(820,967	)		208,401
Non-controlling interests		13,635			14,356			—			10,520			16,547			134,266			2,136			(27,991	)		168,793			332,262
		(124,821	)		276,977			51,242			346,417			52,849			185,017			608,554			(203,398	)		(652,174	)		540,663
Other select data:
Depreciation and amortization		626,195			67,620			119,623			115,211			20,597			416,978			3,063			(813,438	)		—			555,849
EBITDA		688,386			545,643			228,719			678,999			77,957			922,233			642,626			(1,462,748	)		(652,174	)		1,669,641
Additions to PP&E, intangible and contracts assets		629,734			66,391			145,082			174,205			6,119			438,729			2,786			(841,207	)		—			621,839
Reconciliation of EBITDA:
Profit (loss) for the period		(124,821	)		276,977			51,242			346,417			52,849			185,017			608,554			(203,398	)		(652,174	)		540,663
Income tax and social contribution		(56,939	)		94,478			38,729			180,473			17,560			61,621			(2,278	)		(76,268	)		—			257,376
Financial results, net		243,951			106,568			19,125			36,898			(13,049	)		258,617			33,287			(369,644	)		—			315,753
Depreciation and amortization		626,195			67,620			119,623			115,211			20,597			416,978			3,063			(813,438	)		—			555,849
EBITDA		688,386			545,643			228,719			678,999			77,957			922,233			642,626			(1,462,748	)		(652,174	)		1,669,641

(i) Domestic markets: sales within the countries where each entity is located; external markets: sales export.

F-18

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	January 1, 2019 to June 30, 2019
	Reported segments																		Reconciliation									Consolidated
	Raízen Energia			Raízen Combustíveis						Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects			Segment elimination
				Brazil			Argentina
Statement of profit or loss:
Gross sales		13,975,948			44,180,317			8,752,357			5,563,600			2,537,914			3,544,027			316			(66,908,622	)		(8,604	)		11,637,253
Domestic market(i)		11,071,665			44,180,317			8,752,357			5,563,600			2,512,321			3,544,027			316			(64,004,339	)		(8,604	)		11,611,660
External market(i)		2,904,283			—			—			—			25,593			—			—			(2,904,283	)		—			25,593
Net sales		13,204,129			42,059,356			6,212,905			4,398,851			2,038,823			3,363,686			315			(61,476,390	)		(8,604	)		9,793,071
Cost of sales		(12,341,464	)		(40,329,972	)		(5,585,410	)		(3,049,798	)		(1,611,279	)		(2,294,168	)		(32	)		58,256,846			8,604			(6,946,673	)
Gross profit		862,665			1,729,384			627,495			1,349,054			427,544			1,069,517			283			(3,219,544	)		—			2,846,398
Selling expenses		(407,658	)		(729,049	)		(330,344	)		(301,326	)		(232,767	)		4,416			(2,250	)		1,467,051			—			(531,927	)
General and administrative expenses		(275,426	)		(251,744	)		(63,264	)		(173,110	)		(77,356	)		(171,610	)		(119,105	)		590,434			—			(541,181	)
Other income (expenses), net		48,453			377,873			48,830			20,920			72			(27,015	)		4,340			(475,156	)		—			(1,684	)
Interest in earnings of associates		—			161,986			—			—			951			8,575			1,020,166			(161,986	)		(1,049,404	)		(19,712	)
Interest in earnings of joint ventures		(4,258	)		1			1			—			—			—			362,243			4,256			—			362,243
Financial results		(399,001	)		(72,700	)		(124,033	)		(89,375	)		9,930			(583,062	)		(175,873	)		595,734			—			(838,380	)
Finance expense		(760,252	)		(472,174	)		(31,905	)		(199,457	)		(26,496	)		(1,060,028	)		(644,193	)		1,264,331			—			(1,930,174	)
Finance Income		247,679			151,653			12,379			110,114			18,156			87,229			103,371			(411,711	)		—			318,870
Foreign exchange losses, net		53,756			185,961			(71,392	)		5,916			11,433			59,355			30,409			(168,325	)		—			107,113
Derivatives		59,816			61,860			(33,115	)		(5,948	)		6,837			330,382			334,540			(88,561	)		—			665,811
Income tax (expense)benefit		63,829			(319,948	)		3,301			(279,805	)		(32,930	)		(89,431	)		63,501			252,818			—			(338,665	)
Profit (loss) from continuing operations		(111,396	)		895,803			161,986			526,357			95,444			211,390			1,153,305			(946,393	)		(1,049,404	)		937,092
Net income attributable to:
Owners of the Parent		(125,811	)		860,635			161,986			495,728			65,693			57,730			1,158,280			(896,810	)		(1,378,814	)		398,617
Non-controlling interests		14,415			35,168			—			30,629			29,751			153,661			(4,976	)		(49,583	)		329,410			538,475
		(111,396	)		895,803			161,986			526,357			95,444			211,391			1,153,305			(946,393	)		(1,049,404	)		937,092
Other select data:
Depreciation and amortization		1,354,792			150,935			222,153			230,605			41,078			839,432			7,538			(1,727,880	)		—			1,118,653
EBITDA		1,578,568			1,439,386			504,871			1,126,142			159,522			1,723,316			1,273,214			(3,522,825	)		(1,049,404	)		3,232,790
Additions to PP&E, intangible and Contracts assets		1,707,755			139,386			163,562			320,387			9,401			981,337			4,576			(2,010,703	)		—			1,315,701
Reconciliation of EBITDA:
Profit (loss) for the period		(111,396	)		895,803			161,986			526,357			95,444			211,390			1,153,305			(946,393	)		(1,049,404	)		937,092
Income tax and social contribution		(63,829	)		319,948			(3,301	)		279,805			32,930			89,431			(63,501	)		(252,818	)		—			338,665
Financial results, net		399,001			72,700			124,033			89,375			(9,930	)		583,062			175,873			(595,734	)		—			838,380
Depreciation and amortization		1,354,792			150,935			222,153			230,605			41,078			839,432			7,538			(1,727,880	)		—			1,118,653
EBITDA		1,578,568			1,439,386			504,871			1,126,142			159,522			1,723,316			1,273,214			(3,522,825	)		(1,049,404	)		3,232,790

F-19

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	April 1, 2018 to June 30, 2018
	Reported segments															Reconciliation									Consolidated
	Raízen Energia			Raízen Combustíveis			Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects			Segment eliminations
Statement of profit or loss:
Gross sales		4,335,714			20,505,098			2,059,872			1,078,758			1,764,201			31			(24,840,812	)		(1	)		4,902,861
Domestic market(i)		3,403,421			20,505,098			2,059,872			1,063,924			1,764,201			31			(23,908,519	)		(1	)		4,888,027
External market(i)		932,293			—			—			14,834			—			—			(932,293	)		—			14,834
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
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	)
Gross profit		301,228			769,630			452,436			160,608			548,121			29			(1,070,858	)		—			1,161,194
Selling expenses		(184,954	)		(339,826	)		(152,090	)		(93,034	)		(2,407	)		(1	)		524,780			—			(247,532	)
General and administrative expenses		(155,960	)		(115,004	)		(81,824	)		(36,792	)		(68,180	)		(49,558	)		270,964			—			(236,354	)
Other income (expense), net		50,838			97,412			(4,065	)		(2,987	)		(4,144	)		(9,663	)		(148,250	)		—			(20,859	)
Financial results		(115,652	)		(260,074	)		(65,925	)		5,336			(459,566	)		(223,680	)		375,726			—			(743,835	)
Finance expense		(246,890	)		(41,680	)		(135,020	)		(10,162	)		(297,915	)		(71,058	)		288,570			1,736			(512,419	)
Finance income		171,292			49,830			69,402			2,305			51,287			36,984			(221,122	)		(1,736	)		158,242
Foreign exchange losses, net		(141,466	)		(767,074	)		(93,241	)		(17,457	)		(620,168	)		(660,913	)		908,540			—			(1,391,779	)
Derivatives		101,412			498,850			92,934			30,650			407,230			471,307			(600,262	)		—			1,002,121
Interest in earnings of associates		(1,402	)		—			—			9,236			3,785			56,527			1,402			(51,104	)		18,444
Interest in earnings of joint ventures		—			—			—			—			—			50,457			—			—			50,457
Income tax expense benefit		82,052			(22,308	)		(54,641	)		(7,846	)		(52,642	)		115,447			(59,744	)		—			318
Profit (loss) from continuing operations		(23,850	)		129,830			93,891			34,521			(35,033	)		(60,442	)		(105,980	)		(51,104	)		(18,167	)
Total net income attributable to:
Owners of the Company		(23,832	)		124,646			75,147			34,365			(10,675	)		(60,602	)		(100,814	)		(15,552	)		22,683
Non-controlling interests		(18	)		5,184			18,744			156			(24,358	)		160			(5,166	)		(35,552	)		(40,850	)
		(23,850	)		129,830			93,891			34,521			(35,033	)		(60,442	)		(105,980	)		(51,104	)		(18,167	)
Other selected data:
Depreciation and amortization		430,106			30,590			116,356			28,479			365,937			3,886			(460,696	)		—			514,658
EBITDA		439,856			442,802			330,813			65,510			843,112			51,677			(882,658	)		(51,104	)		1,240,008
Additions to PP&E, intangible and biological assets		480,470			496,982			123,312			10,136			556,122			388			(977,452	)		—			689,958
Reconciliation of EBITDA:
Profit (loss) for the period		(23,850	)		129,830			93,891			34,521			(35,033	)		(60,442	)		(105,980	)		(51,104	)		(18,167	)
Income tax and social contribution		(82,052	)		22,308			54,641			7,846			52,642			(115,447	)		59,744			—			(318	)
Financial result, net		115,652			260,074			65,925			(5,336	)		459,566			223,680			(375,726	)		—			743,835
Depreciation and amortization		430,106			30,590			116,356			28,479			365,937			3,886			(460,696	)		—			514,658
EBITDA		439,856			442,802			330,813			65,510			843,112			51,677			(882,658	)		(51,104	)		1,240,008

F-20

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	January 1, 2018 to June 30, 2018
	Reported segments															Reconciliation									Consolidated
	Raízen Energia			Raízen Combustíveis			Comgás			Moove			Logistic			Cosan Corporate			Deconsolidated effects			Segment eliminations
Statement of profit or loss:
Gross sales		9,233,103			40,871,892			3,910,209			2,006,970			3,246,798			492			(50,104,995	)		(8	)		9,164,461
Domestic market(i)		6,714,526			40,871,892			3,910,209			1,982,444			3,246,798			492			(47,586,418	)		(8	)		9,139,935
External market(i)		2,518,577			—			—			24,526			—			—			(2,518,577	)		—			24,526
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
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	)
Gross profit		869,114			1,742,918			940,880			306,683			944,090			290			(2,612,032	)		—			2,191,943
Selling expenses		(340,048	)		(684,928	)		(306,555	)		(179,811	)		(6,234	)		(1	)		1,024,976			—			(492,601	)
General and administrative expenses		(329,374	)		(250,332	)		(158,596	)		(59,435	)		(137,795	)		(93,879	)		579,706			—			(449,705	)
Other income (expense), net		159,296			196,796			(4,318	)		(4,094	)		(8,539	)		(26,569	)		(356,092	)		—			(43,520	)
Financial results		(151,946	)		(332,440	)		(87,555	)		(3,696	)		(808,392	)		(364,871	)		484,386			—			(1,264,514	)
Finance expense		(445,772	)		(35,710	)		(231,884	)		(17,290	)		(640,820	)		(125,583	)		481,482			3,275			(1,012,302	)
Finance income		310,068			98,626			142,733			5,272			126,885			75,475			(408,694	)		(3,275	)		347,090
Foreign exchange losses, net		(135,124	)		(854,154	)		(87,826	)		(19,290	)		(633,141	)		(727,478	)		989,278			—			(1,467,735	)
Derivatives		118,882			458,798			89,422			27,612			338,684			412,715			(577,680	)		—			868,433
Interest in earnings of associates		(5,560	)		—			—			4,176			5,165			383,527			5,560			(377,230	)		15,638
Interest in earnings of joint ventures		—			—			—			—			—			348,113			—			—			348,113
Income tax expense benefit		9,658			(165,164	)		(130,989	)		(16,325	)		(81,028	)		145,608			155,506			—			(82,734	)
Profit (loss) from continuing operations		211,140			506,850			252,867			47,498			(92,733	)		392,218			(717,990	)		(377,230	)		222,620
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
Non-controlling interests		(6	)		20,398			50,740			156			(65,833	)		4,717			(20,392	)		103,853			93,633
		211,140			506,850			252,867			47,498			(92,733	)		392,218			(717,990	)		(377,230	)		222,620
Other selected data:
Depreciation and amortization		1,041,694			100,790			233,772			49,335			697,057			7,787			(1,142,484	)		—			987,951
EBITDA		1,395,122			1,105,244			705,183			116,854			1,493,744			619,268			(2,500,366	)		(377,230	)		2,557,819
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
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
Income tax and social contribution		(9,658	)		165,164			130,989			16,325			81,028			(145,608	)		(155,506	)		—			82,734
Financial result, net		151,946			332,440			87,555			3,696			808,392			364,871			(484,386	)		—			1,264,514
Depreciation and amortization		1,041,694			100,790			233,772			49,335			697,057			7,787			(1,142,484	)		—			987,951
EBITDA		1,395,122			1,105,244			705,183			116,854			1,493,744			619,268			(2,500,366	)		(377,230	)		2,557,819

F-21

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	June 30, 2019
	Reported segments																		Reconciliation
				Raízen Combustíveis
	Raízen Energia			Brazil			Argentina			Comgás			Moove			Logístics			Cosan Corporate			Deconsolidated effects			Segment elimination			Consolidated
Statement of financial position:
Cash and cash equivalents		2,804,338			1,540,829			294,796			1,210,338			629,016			1,391,155			1,772,254			(4,639,963	)		—			5,002,763
Marketable securities		—			—			—			946,623			5,351			1,148,475			103,936			—			—			2,204,385
Trade receivables		1,242,338			2,504,626			439,803			1,050,457			521,665			511,181			12,507			(4,186,767	)		—			2,095,810
Derivative financial instruments		1,713,452			733,695			—			387,149			26,335			1,248,624			1,556,250			(2,447,147	)		—			3,218,358
Inventories		2,153,594			2,329,706			1,337,513			64,578			450,961			288,801			4,370			(5,820,813	)		—			808,710
Other financial assets		447,478			—			—			—			—			—			70,631			(447,478	)		—			70,631
Other current assets		4,452,134			4,364,805			1,023,712			416,996			241,542			447,138			803,440			(9,840,651	)		(266,396	)		1,642,720
Othernon-current assets		3,357,476			3,616,527			83,702			407,447			852,505			2,781,443			1,542,781			(7,057,705	)		(1,019,932	)		4,564,244
Investments in associates		—			3,186,989			262			—			14,632			40,210			14,556,419			(3,187,251	)		(14,259,303	)		351,958
Investments in joint ventures		571,676			—			—			—			—			—			7,580,406			(571,676	)		—			7,580,406
Biological assets		856,189			—			—			—			—			—			—			(856,189	)		—			—
Property, plant and equipment		11,684,621			2,602,573			3,151,982			—			304,615			11,382,532			165,139			(17,439,176	)		—			11,852,286
Intangible assets and goodwill		3,618,812			2,514,572			8,975			8,296,973			1,165,763			7,430,644			9,790			(6,142,359	)		—			16,903,170
Right-of-use assets		4,236,538			113,109			373,837			11,544			23,496			1,607,490			32,298			(4,723,484	)		—			1,674,828
Loans, borrowings and debentures		(12,142,435	)		(5,848,106	)		(288,305	)		(3,585,444	)		(762,893	)		(10,665,860	)		(9,472,207	)		18,278,846			—			(24,486,404	)
Derivative financial instruments		(1,172,327	)		(208,119	)		(22,995	)		—			(73	)		—			(44,323	)		1,403,441			—			(44,396	)
Trade payables		(3,947,554	)		(2,582,312	)		(1,490,618	)		(1,058,729	)		(549,358	)		(434,310	)		(3,854	)		8,020,484			—			(2,046,251	)
Employee benefits payable		(489,827	)		(118,101	)		(46,865	)		(47,781	)		(44,818	)		(186,496	)		(21,821	)		654,793			—			(300,916	)
Preferred shareholders payable in subsidiaries		—			—			—			—			—			—			(887,602	)		—			—			(887,602	)
Lease		(3,452,169	)		(117,220	)		(381,988	)		(12,033	)		(33,239	)		(1,851,367	)		(32,727	)		3,951,377			—			(1,929,366	)
Other current liabilities		(3,328,845	)		(5,512,232	)		(588,786	)		(422,303	)		(469,413	)		(635,325	)		(504,739	)		9,429,863			297,270			(1,734,510	)
Othernon-current liabilities		(1,830,891	)		(4,364,305	)		(708,036	)		(1,975,482	)		(661,792	)		(6,465,967	)		(2,256,282	)		6,903,232			989,045			(10,370,478	)
Total assets (net of liabilities) allocated by segment		10,774,598			4,757,036			3,186,989			5,690,333			1,714,295			8,038,368			14,986,666			(18,718,623	)		(14,259,316	)		16,170,346
Total assets		37,138,646			23,507,431			6,714,582			12,792,105			4,235,881			28,277,693			28,210,221			(67,360,659	)		(15,545,631	)		57,970,269
Shareholders’ equity attributable to:
Equity attributable to owners of the Company		10,725,701			4,501,815			3,186,989			5,678,493			1,215,310			1,628,411			14,982,149			(18,414,505	)		(17,822,325	)		5,682,038
Non-controlling interests		48,897			255,221			—			11,840			498,985			6,409,957			4,517			(304,118	)		3,563,009			10,488,308
Total shareholders’ equity		10,774,598			4,757,036			3,186,989			5,690,333			1,714,295			8,038,368			14,986,666			(18,718,623	)		(14,259,316	)		16,170,346

F-22

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	December 31, 2018
	Reported segments																		Reconciliation
				Raízen Combustíveis
	Raízen Energia			Brazil			Argentina			Comgás			Moove			Logistics			Cosan Corporate			Deconsolidated effects			Segment elimination			Consolidated
Statement of financial position:
Cash and cash equivalents		2,437,571			864,105			490,960			602,618			206,702			143,710			2,668,768			(3,792,636	)		—			3,621,798
Marketable securities		—			—			—			1,124,723			13,033			2,843,435			221,644			—			—			4,202,835
Trade receivables		1,061,297			2,747,503			372,202			695,147			446,645			438,062			8,338			(4,181,002	)		—			1,588,192
Derivative financial instruments		1,956,616			639,976			—			368,928			29,976			892,461			1,257,492			(2,596,592	)		—			2,548,857
Inventories		3,618,573			2,078,003			1,284,087			65,259			385,901			263,386			1,744			(6,980,663	)		—			716,290
Other financial assets		516,519			—			—			—			—			—			—			(516,519	)		—			—
Other current assets		3,203,838			3,045,745			1,122,633			641,042			161,076			413,267			1,016,569			(7,372,216	)		(540,745	)		1,691,209
Othernon-current assets		4,141,547			3,508,485			66,117			282,572			750,088			2,693,158			1,536,566			(7,716,149	)		(1,117,633	)		4,144,751
Investments in associates		—			3,056,025			266			—			13,799			44,001			13,111,569			(3,056,291	)		(12,790,850	)		378,519
Investments in joint ventures		567,785			—			—			—			—			—			8,077,907			(567,785	)		—			8,077,907
Biological assets		740,473			—			—			—			—			—			—			(740,473	)		—			—
Property, plant and equipment		10,912,819			2,292,355			3,182,272			—			321,746			11,916,818			179,258			(16,387,446	)		—			12,417,822
Intangible assets and goodwill		3,626,819			2,513,923			8,591			8,279,593			1,191,627			7,493,882			7,434			(6,149,333	)		—			16,972,536
Loans, borrowings and debentures		(12,702,418	)		(4,665,127	)		(971,268	)		(3,651,545	)		(759,169	)		(10,594,381	)		(7,569,218	)		18,338,813			—			(22,574,313	)
Derivative financial instruments		(1,223,260	)		(31,469	)		—			—			(3,880	)		—			(21,834	)		1,254,729			—			(25,714	)
Trade payables		(3,090,299	)		(1,603,481	)		(1,003,917	)		(1,012,895	)		(452,300	)		(451,637	)		(7,088	)		5,697,697			—			(1,923,920	)
Employee benefits payable		(343,670	)		(73,481	)		(36,829	)		(63,520	)		(37,850	)		(207,397	)		(31,201	)		453,980			—			(339,968	)
Preferred shareholders payable in subsidiaries		—			—			—			—			—			—			(1,097,490	)		—			—			(1,097,490	)
Lease		—			—			—			—			—			(553,350	)		—			—			—			(553,350	)
Other current liabilities		(2,448,741	)		(4,520,490	)		(624,633	)		(159,060	)		(499,759	)		(770,695	)		(849,832	)		7,593,864			542,092			(1,737,254	)
Othernon-current liabilities		(1,305,251	)		(5,028,754	)		(834,456	)		(2,009,997	)		(794,110	)		(6,263,836	)		(2,187,599	)		7,168,461			1,116,191			(10,139,351	)
Total assets (net of liabilities) allocated by segment		11,670,218			4,823,318			3,056,025			5,162,865			973,525			8,300,884			16,323,027			(19,549,561	)		(12,790,945	)		17,969,356
Total assets		32,783,857			20,746,119			6,527,128			12,059,882			3,520,593			27,142,180			28,087,289			(60,057,104	)		(14,449,228	)		56,360,716
Equity attributable to owners of the Company		11,632,885			4,589,628			3,056,025			4,175,508			966,465			1,661,512			16,322,616			(19,278,538	)		(16,511,698	)		6,614,403
Non-controlling interests		37,333			233,690			—			987,357			7,060			6,639,372			411			(271,023	)		3,720,753			11,354,953
Total shareholders’ equity		11,670,218			4,823,318			3,056,025			5,162,865			973,525			8,300,884			16,323,027			(19,549,561	)		(12,790,945	)		17,969,356

F-23

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

4.1 Net sales by segment

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Reported segment
Raízen Energia
Ethanol		1,912,101			4,862,646			1,624,324			4,048,018
Sugar		751,317			2,332,914			729,444			2,079,694
Gas		731,409			1,354,939			275,069			396,791
Diesel		1,736,908			2,936,184			1,122,690			1,122,690
Cogeneration		911,268			1,647,148			303,939			412,934
Other		41,098			70,298			36,090			544,367
	6,084,101			13,204,129			4,091,556			8,604,494
Raízen Combustíveis
Fuels		24,745,688			47,551,699			19,594,604			39,089,576
Other		365,310			720,562			—			—
	25,110,998			48,272,261			19,594,604			39,089,576
Comgás
Industrial		1,512,161			2,900,568			1,017,538			1,959,418
Residential		308,026			518,953			238,830			429,026
Cogeneration		110,597			214,120			71,850			130,525
Automotive		87,980			167,950			62,957			118,151
Commercial		125,582			229,508			90,735			172,285
Construction revenue		182,114			342,050			96,177			185,670
Other		12,340			25,702			14,716			28,604
	2,338,800			4,398,851			1,592,803			3,023,679
Moove
Finished goods		839,959			1,810,948			738,030			1,384,111
Basic oil		155,676			212,261			79,057			150,066
Services		8,848			15,614			9,586			17,068
	1,004,483			2,038,823			826,673			1,551,245
Logistics
North operations		1,283,959			2,523,962			1,210,680			2,264,025
South operations		371,811			700,233			389,195			677,354
Container operations		72,970			139,491			64,670			119,858
	1,728,740			3,363,686			1,664,545			3,061,237
Reconciliation
Cosan Corporate		8			315			29			430
Deconsolidated effects and eliminations		(31,194,271	)		(61,484,994	)		(23,695,719	)		(47,712,733	)
Total		5,072,859			9,793,071			4,074,491			7,617,928

F-24

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

5 Financial assets and liabilities

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

	Note		June 30, 2019		December 31, 2018
Assets
Fair value through profit or loss
Cash and cash equivalents		5.1		1,764,038		1,600,590
Marketable securities		5.2		2,204,385		4,202,835
Consideration assets		5.9		142,654		—
Derivate financial instruments		5.8		3,218,358		2,548,857
			7,329,435		8,352,282
Amortized cost
Cash and cash equivalents		5.1		3,238,725		2,021,208
Trade receivables		5.3		2,095,810		1,588,192
Restricted cash		5.2		167,820		115,124
Receivables from related parties		5.4		141,939		135,070
Dividends receivable				36,642		27,320
			5,680,936		3,886,914
Total				13,010,371		12,239,196
	Note		June 30, 2019		December 31, 2018
Liabilities
Amortized cost
Loans, borrowings and debentures		5.5		10,244,292		10,005,187
Leases		5.6		1,929,366		553,350
Trade payables		5.7		2,046,251		1,923,920
Other financial liabilities				397,526		455,702
Payables to related parties		5.4		392,350		355,971
Dividends payable				38,881		187,415
Tax installments—REFIS		12		218,346		216,984
Preferred shareholders payable in subsidiaries				887,602		1,097,490
			16,154,614		14,796,019
Fair value through profit or loss
Loans, borrowings and debentures		5.5		14,242,112		12,569,126
Contingent consideration payable		5.9		77,400		64,969
Derivative financial instruments		5.8		44,396		25,714
			14,363,908		12,659,809
			30,518,522		27,455,828

F-25

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

5.1 Cash and cash equivalents

	June 30, 2019		December 31, 2018
Cash and bank accounts		102,151		111,410
Savings account		1,367,596		1,335,774
Financial investments		3,533,016		2,174,614
	5,002,763		3,621,798

Financial investments are composed as follows:

	June 30, 2019		December 31, 2018
Investment fund
Repurchase agreements		1,229,695		1,179,503
Bank certificate of deposits—CDB		534,343		421,087
	1,764,038		1,600,590
Bank investments
Repurchase agreements		51,096		—
Bank certificate of deposits—CDB		1,716,982		571,840
Other		900		2,184
	1,768,978		574,024
	3,533,016		2,174,614

The Company’s onshore financial investments are remunerated at rates around 100% of the interbank deposit certificate (“CDI”) in June 30, 2019 (100% of CDI in December 31, 2018) and offshore financial investments are remunerated at rates around 100% of Fed Funds. The sensitivity analysis on interest rate risks is in note 21.

5.2 Marketable securities and restricted cash

	June 30, 2019		December 31, 2018
Marketable securities
Government security(i)		2,188,305		4,144,797
Bank certificate of deposit—CDB		16,080		58,038
	2,204,385		4,202,835
Restricted cash
Investments linked to loans		80,381		31,254
Securities pledged as collateral		87,439		83,870
	167,820		115,124

(i) Sovereign debt securities have stated interest connected to Special System for Settlement and Custody (Sistema Especial de Liquidação e de Custódia), or SELIC.

F-26

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

5.3 Trade receivables

	June 30, 2019			December 31, 2018
Domestic – Brazilian Reais		2,141,151			1,609,421
Export – Foreign currency		61,497			104,355
	2,202,648			1,713,776
Allowance for doubtful accounts		(106,838	)		(125,584	)
	2,095,810			1,588,192
Current		2,064,415			1,545,643
Non-current		31,395			42,549

5.4 Related parties

a) Receivables from and payables to related parties

	June 30, 2019		December 31, 2018
Current Asset
Corporate operation / Agreements
Raízen Energia S.A.(i)		42,331		38,205
Aguassanta Participações S.A.		216		29
Raízen Combustíveis S.A.(i)		8,004		6,263
Other		1,291		183
		51,842		44,680
Non-current assets
Preferred shares
Raízen Energia S.A.(i)		37,592		37,470
Raízen Combustíveis S.A.		31,193		27,523
		68,785		64,993
Financial operations
Rezende Barbosa(ii)		21,144		23,144
Other		168		2,253
		21,312		25,397
		90,097		90,390

F-27

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	June 30, 2019		December 31, 2018
Current liabilities
Corporate operations / agreements
Raízen Energia S.A.(i)		242,954		215,582
Raízen Combustíveis S.A.(i)		148,736		136,779
Aguassanta Participações S.A.		131		—
Other		529		3,610
		392,350		355,971

(i) Current andnon-current assets receivable from Raízen Energia and Raízen Combustíveis are, primarily, tax credits which will be reimbursed to the Company when realized. The preferred shares are used to Raízen reimburse Cosan, with preferential dividends, when the net operating loss is consumed in Raízen.

Current liabilities represent reimburse to Raízen Energia and Raízen Combustíveis related to expenses regarding legal disputes and other liabilities, generated before the formation of joint ventures, which are responsibility of Cosan S.A.

(ii) The Company has receivables with Rezende Barbosa for the repayment of loans taken prior to the acquisition of the subsidiaries in 2009. These receivables are secured by Cosan S.A. shares.

b) Related party transactions

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Product sales
Raízen Energia S.A.		68,954			176,758			89,006			174,287
Raízen Combustíveis S.A		56,125			105,909			40,794			79,364
Other		2,265			6,204			—			—
		127,344			288,871			129,800			253,651
Purchase of goods / inputs
Raízen Energia S.A.		(2,204	)		(2,400	)		(119	)		(186	)
Raízen Combustíveis S.A		(300,038	)		(578,372	)		(302,968	)		(555,419	)
Other		(256	)		(256	)		—			—
		(302,498	)		(581,028	)		(303,087	)		(555,605	)
Shared income (expense)
Raízen Energia S.A.		(17,992	)		(37,026	)		(17,964	)		(36,490	)
		(17,992	)		(37,026	)		(17,964	)		(36,490	)
Financial result
Usina Santa Luiza		—			(41	)		(60	)		(119	)
Raízen Energia S.A.		—			—			2,481			4,449
Raízen Combustíveis S.A		1,392			2,760			—			—
Other		(101	)		(130	)		19			101
		1,291			2,589			2,440			4,431

F-28

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

c) Officers’ and directors’ compensation

The Company has a compensation policy approved by the Board of Directors. Compensation of the Company’s key management personnel includes salaries,non-cash benefits and contributions to a post-employment defined benefit plan.

	April 1, 2019 to June 30, 2019		January 1, 2019 to June 30, 2019		April 1, 2018 to June 30, 2018		January 1, 2018 to June 30, 2018
Short-term benefits to officers and directors		29,017		52,290		18,335		34,484
Post-employment benefits		307		476		91		162
Other long-term benefits		547		547		35		70
Benefits from termination of employment contract		1,193		1,193		677		677
Stock option expense		5,224		7,758		2,559		13,914
	36,288		62,264		21,697		49,307

F-29

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

5.5 Loans, borrowings and debentures

	Interest
Description	Index		Annual interest rate		June 30, 2019		December 31, 2018		Maturity		Objective
With guarantee
BNDES		URTJLP		8.49%		2,479,693		2,584,347		Dec-29		Expansion project
		Fixed		5.34%		942,970		1,055,281		Feb-25		Expansion project
		TJ462		9.08%		231,170		316,854		Oct-20		Investment
		Selic		8.32%		114,396		152,562		Oct-20		Investment
		Selic		8.49%		58,496		63,852		Jun-23		Investment
		TJLP		9.06%		96,041		107,731		Jun-23		Investment
		Selic		13.65%		2,332		3,930		Sep-20		Expansion project
		Fixed		4.61%		4,060		2,261		Jan-24		Expansion project
		IPCA		11.69%		2,350		2,211		Nov-21		Expansion project
Export credit agreemenmt (ECA)		Euribor + 0.58%		0.58%		73,750		—		Sep-26		Investment
EIB		U.S.$		3.88%		60,049		89,003		Jun-20		Investment
		U.S.$		2.94%		42,041		54,508		Sep-20		Investment
		U.S.$ + LIBOR		3.43%		91,568		115,581		May-21		Investment
		U.S.$ + LIBOR		3.29%		108,169		130,402		Sep-21		Investment
FINEP		Fixed		5.00%		93,404		93,309		Nov-22		Investment
						4,400,489		4,771,832
Without guarantee
Foreign loans		GBP + Libor		4.37%		367,472		363,250		Dec-22		Aquisition
		GBP + Libor		2.46%		210,701		199,794		Nov-20		Aquisition
		126% of CDI		8.13%		—		514,817		Dec-23		Exportation
		CDI + 0.80%		7.25%		506,745		—		Dec-23		Exportation
		125% of CDI		8.06%		—		646,024		Dec-23		Exportation
Perpetual Notes		U.S.$		8.25%		1,940,251		1,961,819		Nov-40		Aquisition
Resolution 4131		U.S.$		4.79%		29,488		39,738		Oct-20		Working capital
		U.S.$ + Libor		3.65%		155,233		156,387		Feb-20		Working capital
		U.S.$		3.67%		302,547		292,172		May-23		Working capital
		U.S.$		4.34%		39,504		41,033		Dec-20		Working capital
		U.S.$		3.27%		208,980		209,987		Nov-22		Working capital
Senior Notes Due 2023		U.S.$		5.00%		421,705		409,590		Mar-23		Aquisition
Senior Notes Due 2027		U.S.$		7.00%		3,116,974		2,977,721		Jan-27		Aquisition
Senior Notes Due 2024		U.S.$		7.38%		3,176,708		3,061,566		Feb-24		Aquisition
Senior Notes Due 2024		U.S.$		5.95%		2,073,907		2,022,793		Sep-24		Aquisition
Senior Notes Due 2025		U.S.$		5.88%		2,089,708		1,997,394		Jan-25		Aquisition
Commercial banks		Fixed U.S.$		0.00%		7,664		15,499		Jun-20		Working capital
Working capital		120.25% of CDI		7.74%		31,971		30,828		Aug-20		Working capital
		124.60% of CDI		8.04%		15,415		—		Feb-20		Working capital
		125% of CDI		8.06%		5,019		5,018		Dec-19		Working capital
		122% of CDI		7.86%		—		15,402		Apr-20		Working capital
Bank overdrafts		125.5% of CDI		8.10%		461		—		Aug-19		Working capital
Prepayment		U.S.$+Libor		3.94%		3,863		11,706		Apr-20		Working capital
Debentures		IGPM + 6,10%		12.93%		235,692		228,010		May-28		Working capital
		IPCA + 5.57%		9.60%		211,143		203,613		Sep-20		Working capital
		IPCA + 7.14%		11.23%		324,243		305,894		Dec-20		Working capital
		IPCA + 7.48%		11.59%		291,959		275,014		Dec-22		Working capital
		IPCA + 7.36%		11.46%		96,187		90,656		Dec-25		Working capital
		IPCA + 5.87%		9.91%		844,206		767,638		Dec-23		Working capital
		IPCA + 4.33%		8.32%		433,998		414,583		Oct-24		Working capital
		IPCA + 4.68%		8.68%		544,835		—		Feb-26		Working capital
		IPCA + 4.50%		8.49%		626,063		—		Feb-29		Working capital
		106 % of CDI		6.80%		1,729,733		—		Feb-21		Aquisition
		128 % of CDI		8.26%		—		501,064		Dec-25		Working capital
		CDI + 0.90%		7.36%		43,540		43,471		Sep-19		Working capital
						20,085,915		17,802,481
Total						24,486,404		22,574,313
Current						2,982,702		2,115,305
Non-current						21,503,702		20,459,008

F-30

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

Non-current borrowings are scheduled to fall due as follows:

	June 30, 2019		December 31, 2018
13 to 24 months		2,833,600		2,113,502
25 to 36 months		1,069,653		1,310,790
37 to 48 months		1,640,983		1,201,227
49 to 60 months		4,552,546		2,429,146
61 to 72 months		4,961,468		5,783,465
73 to 84 months		423,264		2,332,961
85 to 96 months		3,423,446		475,964
Thereafter		2,598,742		4,811,953
		21,503,702		20,459,008

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

	June 30, 2019		December 31, 2018
Reais (R$)		9,966,122		8,424,373
Dollar (U.S.$)		13,868,359		13,586,897
Pound (GBP)		578,173		563,043
Euro (€)		73,750		—
		24,486,404		22,574,313

At June 30, 2019, all dated debts denominated in U.S. Dollars, in the subsidiaries, have currency risk protection through derivatives (Note 5.9). For the 5th Issuance of debentures denominated in R$ of the Comgás subsidiary, a derivative operation was carried out in which its future cash flow was protected, and the IPCA interest rate risk was changed by percentage of the CDI.

Below are the movements that occurred for the period ended June 30, 2019:

At December 31, 2018	22,574,313
Raised	3,020,332
Amortization of principal on loans, borrowings and debentures	(1,809,575	)
Payment of interest on loans, borrowings and debentures	(618,364	)
Interest, exchange rate and fair value	1,319,698
At June 30, 2019	24,486,404

F-31

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

a) Guarantees

Some financing agreements with the Brazilian National Economic and Social Development Bank (Banco Nacional de Desenvolvimento Econômico e Social), or “BNDES,” of the subsidiaries Comgás and Rumo, are guaranteed by bank guarantee, or by real guarantees (assets) and escrow account. On June 30, 2019, the balance of bank guarantees contracted was R$783,993 and R$2,217,994 with an average cost of 0.98% p.a. and 1.30% p.a., respectively (R$1,195,048 and R$2,475,175 as of December 31, 2018).

b) Available credit line

As of June 30, 2019, the subsidiary Rumo had available credit lines from BNDES, which were not used, in the total amount of R$1,935,490 (R$ 2,108,824 on December 31, 2018).

As of June 30, 2019, the subsidiary Cosan S.A. had available credit lines from financial institutions AA, which were not used, in the total amount of R$501,000 (R$ 501,000 on December 31, 2018).

The use of these credit lines is subject to certain contractual conditions.

c) Financial Covenants

Under the terms of the major borrowing facilities, the Company is required to comply with the following financial covenants:

Debt	Triggers	Ratios
Debenture 3ª Issue—Comgás	Net onerous debt / EBITDA can not exceed 4.00		0.41
	Short-term indebtedness / Total indebtedness can not exceed 0.6		0.19
Debenture 4ª Issue—Comgás	Net onerous debt / EBITDA can not exceed 4.00		0.41
	Short-term indebtedness / Total indebtedness can not exceed 0.6		0.19
Debenture 5ª Issue—Comgás	Net onerous debt / EBITDA can not exceed 4.00		0.41
Debenture 6ª Issue—Comgás	Net onerous debt / EBITDA can not exceed 4.00		0.41
Debenture 7ª Issue—Comgás	Net onerous debt / EBITDA can not exceed 4.00		0.41
Senior Notes Due 2024 – Cosan Limited	Pro forma(i) / EBITDA not higher than or equal to 3.5		2.3
Senior Notes Due 2024 – Rumo	Net debt / EBITDA not higher than or equal to 4.0		2.2
Senior Notes Due 2025—Rumo	Net debt / EBITDA not higher than or equal to 4.0		2.2
Senior Notes 2027—Cosan	Net debt (i)|(ii) / EBITDA not higher than or equal to 3.5		2.1
BNDES—Rumo	Net Financial Debt / EBITDA not higher than or equal 4.0x in December 2018		2.06
BNDES—Rumo	EBITDA / Consolidated Financial Result not higher than or equal 1.40x in December 2018		2.68
Debenture 2ª Issue—Cosan	Net debt / EBITDA not higher than or equal to 4.5		2.2

(i) Net debt and EBITDA proforma, including joint ventures numbers.

(ii) The effects of initial recognition of IFRS 16 are not part of triggers measures for financial covenants purposes.

For the other loans, borrowings and debentures of the Company there are no financial clauses.

As at June 30, 2019, the Company and its subsidiaries were in compliance with all debt financial covenants.

d) Fair value and exposure to financial risk

The fair value of the loans is based on the discounted cash flow using its implicit discount rate. They are classified as a level 2 fair value in the hierarchy (Note 5.9) due to the use of unobservable data, including own credit risk.

The details of the Company’s exposure to risks arising from loans are shown in note 21.

F-32

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

5.6 Leases

Leases liabilities as at June 30, 2019 and its related movements for the period ended are as follows:

	Finance			Operational			Total
At January 1, 2019		553,350			—			553,350
Initial recognition of IFRS 16		—			1,480,323			1,480,323
Recognition of interest		48,122			75,755			123,877
Transfer of liabilities		—			(57,019	)		(57,019	)
Payment of principal		(72,184	)		(36,037	)		(108,221	)
Payment of interest		(39,929	)		(45,326	)		(85,255	)
Contracts moneraty correction		—			22,311			22,311
At June 30, 2019		489,359			1,440,007			1,929,366
Current		107,063			91,474			198,537
Non-Current		382,296			1,348,533			1,730,829
		489,359			1,440,007			1,929,366

The lease agreements have varying expirations, with last due to expire in June 2043. The amounts are adjusted annually for inflation rates (as general market price index, orIGP-M, and Brazilian consumer price index, or IPCA) or may incur interest based on the TJLP or CDI and some contracts have renewal or purchase options.

5.7 Trade payables

The carrying amounts of trade and other payables are the same as their fair values, due to their short-term nature.

	June 30, 2019		December 31, 2018
Natural gas suppliers		846,421		838,105
Materials and service suppliers		1,186,100		1,073,227
Other		13,730		12,588
	2,046,251		1,923,920

5.8 Derivative financial instruments

To protect the Company’s exposure to risk were are using observable data such as quoted prices in active markets, or discounted cash flow based on market curves, and the consolidated data are presented below:

	Notional				Fair value
	June 30, 2019		December 31, 2018		June 30, 2019			December 31, 2018
Exchange rate derivatives
Forward agreements		—		907,832		—			1,719
Interest rate and exchange rate risk
Swap agreements (interest rate)		2,756,912		2,114,926		625,272			394,497
Swap agreements (exchange and interest rate)		12,277,849		11,896,908		2,548,690			2,126,927
		15,034,761		14,011,834		3,173,962			2,521,424
Total financial instruments						3,173,962			2,523,143
Assets						3,218,358			2,548,857
Liabilities						(44,396	)		(25,714	)

F-33

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

Derivatives are only used for economic hedging purposes and not as speculative investments.

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(i)			Derivative (ii)		Total
At December 31, 2018		(8,464,516	)		1,344,589		(7,119,927	)
Interest amortization		232,392			11,675		244,067
Fair value		(546,775	)		392,798		(153,977	)
At June 30, 2019		(8,778,899	)		1,749,062		(7,029,837	)

(i) Loans, borrowings and debentures (Note 5.5)

(ii) Derivate financial instruments

5.9 Recognized fair value measurements

The market value of the Senior Notes are listed on the Luxembourg Stock Exchange (Note 5.5) is based on their quoted market price are as follows:

	Company	June 30, 2019		December 31, 2018
Senior Notes 2023	Cosan S.A.		101.08%		96.86%
Senior Notes 2024	Rumo Luxembourg		108.20%		104.27%
Senior Notes 2024	Cosan Limited		104,64%		98.55%
Senior Notes 2025	Rumo Luxembourg		106.09%		94.94%
Senior Notes 2027	Cosan S.A.		109.17%		101.15%
Perpetual Notes	Cosan S.A.		103.40%		101.21%

All of the resulting fair value estimates are included in level 2 except for a contingent consideration payable where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

F-34

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

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, 2019								December 31, 2018
	Note		June 30, 2019			December 31, 2018			Level 1		Level 2			Level 3			Level 2			Level 3
Assets
Investment funds		5.1		1.764.038			1.600.590					1.764.038			—			1.600.590			—
Marketable securities		5.2		2.204.385			4.202.835					2.204.385			—			4.202.835			—
Consideration asset (i)		5		142.654			—			13.670		—			128.984			—			—
Derivate financial instruments		5.8		3.218.358			2.548.857					3.218.358			—			2.548.857			—
Total				7.329.435			8.352.282			13.670		7.186.781			128.984			8.352.282			—
Liabilities
Loans, borrowings and debentures		5.5		(14.242.112	)		(12.569.126	)				(14.242.112	)		—			(12.569.126	)		—
Contingent consideration payable (ii)		5		(77.400	)		(64.969	)				—			(77.400	)		—			(64.969	)
Derivative financial instruments		5.8		(44.396	)		(25.714	)				(44.396	)		—			(25.714	)		—
Total				(14.363.908	)		(12.659.809	)		—		(14.286.508	)		(77.400	)		(12.594.840	)		(64.969	)

(i) The consideration asset considers the Company ability to reach the Moove budget EBTIDA for the fiscal years of 2018 and 2019. Also, considering that EBTIDA of fiscal year 2018 was reached and the current fiscal year 2019 budget EBTIDA is expected to be reached, we determined the fair value as the fully consideration receivable and recognized it as an asset.

(ii) The valuation of the contingent consideration payable 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.

6 Other current tax receivables

	June 30, 2019		December 31, 2018
COFINS—Revenue tax (i)		711,374		646,135
ICMS—State VAT		606,571		575,494
ICMS CIAP—State VAT		157,796		183,845
PIS—Revenue tax (i)		163,328		169,460
Credit installment		40,261		40,261
Other		49,231		32,496
		1,728,561		1,647,691
Current		900,110		796,199
Non-Current		828,451		851,492

(i) The Company was res judicata in its lawsuit ruling the exclusion of ICMS on the basis of PIS and COFINS on June 7, 2019, retroacting to 2003 and due to the decision, the amount of R$ 54,232 was recognized, being R$ 24,512 in other revenues and R$ 29,720 in the financial result.

F-35

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

7 Inventories

	June 30, 2019		December 31, 2018
Finished goods		458,306		389,896
Raw material for construction process		46,541		45,397
Fuels and lubricants		5,551		6,224
Spare parts and accessories		240,562		224,005
Warehouse and others		57,750		50,768
	808,710		716,290

8 Investments in associates

8.1 Investments in subsidiaries and associates

Cosan’s subsidiaries are listed below:

	June 30, 2019		December 31, 2018
Directly owned subsidiaries
Cosan Logística S.A.		73.46%		72.50%
Cosan S.A.		60.25%		60.25%
Interest of Cosan S.A. in its subsidiaries
Comgás		99.10%		80.12%
Cosan Lubes Investments Limited		70.00%		100.00%
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 Luxembourg S.A. (i)		100.00%		100.00%
Cosan Overseas Limited		100.00%		100.00%
Pasadena Empreendimentos e Participações S.A. (i)		100.00%		100.00%
Payly Soluções de Pagamentos S.A.		100.00%		100.00%
Rumo S.A.		1.71%		1.71%
Interest of Cosan Lubes Investments Limited in its subsidiaries
Moove Lubricants Limited		100.00%		100.00%
Cosan Cinco S.A.		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		100.00%		100.00%
TTA		75.00%		75.00%
Cosan Lubrificantes S.R.L.		100.00%		100.00%
LubrigrupoII		100.00%		100.00%
Commercial Lubricants Moove Corp		100.00%		100.00%
Cosan Lubrificantes e Especialidades S.A.		100.00%		100.00%
Cosan Paraguay S.A.		100.00%		100.00%
Cosan US, Inc.		100.00%		100.00%
Ilha Terminal Distribuição de Produtos Químicos		100.00%		100.00%
Zip Lube S.A.		100.00%		100.00%

F-36

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	June 30, 2019		December 31, 2018
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.		28.40%		28.40%
Rumo Malha Central S.A.		28.47%		0.00%
Boswells S.A.		28.47%		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 Inversión Logística Integrales S.A		28.47%		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$205,859 as of June 30, 2019, no events or conditions were identified that individually or collectively could raise significant doubts related to their ability to maintain their operational continuity. The subsidiaries have the financial support of the Company.

Set out below are the associates as at June 30, 2019 which are material to the Company:

	Shares issued by the associate		Shares held by Cosan		Cosan ownership interest			Economic benefit (%)
Radar II Propriedades Agrícolas S.A.		81,440,221		24,920,708		51.00	%		3.00	%
Radar Propriedades Agrícolas S.A.		1,735,703		531,125		51.00	%		2.51	%
Tellus Brasil Participações S.A.		120,920,492		61,359,624		50.74	%		5.00	%
Janus Brasil Participações S.A.		136,928,272		6,936,167		50.77	%		5.00	%
Novvi Limited Liability Company		1,259,725		169,429		13.45	%		13.45	%

F-37

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	At January 1, 2019		Interest in earnings of subsidiaries			Sales or purchase of interests		Other comprehensive income			Dividends			Increase/ reduction of capital		Other			At June 30, 2019		Interest in earnings (losses) of associates in June 30, 2018
Tellus Brasil Participações S.A.		101,109		1,999			—		—			(2,048	)		—		—			101,060		1,670
Novvi Limited Liability Company		13,449		969			—		(136	)		—			—		—			14,282		4,204
Janus Brasil Participações S.A.		93,821		1,828			—		—			(1,530	)		26,045		—			120,164		3,873
Radar Propriedades Agrícolas S.A		59,584		190			—		63			—			—		—			59,837		613
Radar II Propriedades Agrícolas S.A		32,236		733			—		13			(199	)		—		—			32,783		441
Usina Santa Luiza S.A.		29,209		(29,209	)		—		—			—			—		—			—		(457	)
Other		49,111		3,778			—		—			—			—		(7,489	)		45,400		5,294
		378,519		(19,712	)		—		(60	)		(3,777	)		26,045		(7,489	)		373,526		15,638

8.2Non-controlling interests in subsidiaries

Set out below is summarized financial information for each subsidiary that hasnon-controlling interests that are material to the group. The amounts disclosed for each subsidiary are before inter-company elimination.

	Shares issued by the subsidiary		Shares held by non-controlling shareholders		Non-controlling interest
Comgás		132,520,587		1,187,826		0.90	%
Logispot		2,040,816		1,000,000		49.00	%
Rumo		1,559,015,898		1,115,164,072		71.53	%
Brado Participações		12,962,963		4,897,407		37.78	%
Rumo Malha Norte		1,189,412,363		3,144,187		0.26	%
Cosan Lubes Investment		34,963,764		10,489,129		30.00	%
Cosan S.A.		398,904,353		156,000,696		39.11	%
Cosan Logística S.A.		463,224,241		122,660,097		26.48	%
TTA		10,521		2,630		25.00	%

The following table summarizes the information relating to each of the Company’s subsidiaries that has materialnon-controlling interests, before any intra-group elimination.

F-38

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

	At January 1, 2019		Interest in earnings of subsidiaries		Sales or purchase of interests			Other comprehensive income			Dividends			New standards adopted by Company—Note 3.1			Other		At June 30, 2019		Interest in earnings (losses) of associates in June 30, 2018
Cosan S.A.		3,765,964		296,808		(384,262	)		(76,648	)		—			—			1,904		3,603,766		111,248
Cosan Logística S.A.		630,333		15,323		(21,604	)		16			—			(37,374	)		345		587,039		(7,396	)
Comgás (i)		987,358		33,808		(970,265	)		—			—			—			104		51,005		51,052
Cosan Lubes Investment (ii)		—		24,977		437,078			(11,341	)		—			—			—		450,714		—
Rumo S.A.		5,929,151		153,650		—			(233	)		(2,684	)		(340,050	)		3,234		5,743,068		(65,543	)
Logispot Armazéns Agrícolas S.A.		34,656		10		—			—			—			—			—		34,666		(290	)
Other		7,491		13,899		—			423			(3,763	)		—			—		18,050		4,562
		11,354,953		538,475		(939,053	)		(87,783	)		(6,447	)		(377,424	)		5,587		10,488,308		93,633

Corporate transactions during the period ended June 30, 2019.

(i) In the period ended June 30, 2019, the subsidiary Cosan S.A. concluded the public offerings (Voluntary Tender Offer) for the acquisition of outstanding preferred shares and common shares issued by Comgás. The Company disbursed R$ 2,063,210 and recognized goodwill on capital transactions of R$ 1,091,753, recorded in the Company’s shareholders’ equity. This transaction also generated a loss of R$ 970,265 fornon-controlling interest.

(ii) As disclosed in Note 1, an investment agreement was entered into between CLI and CVC, in which an amount of R$562,000 was made through the issuance of new common shares representing approximately 30% of Moove’s capital stock. Of this total, Moove received R$434,000, in addition to an amount related to a fair value of approximately R$128,000 until 2021, once the targets agreed upon in the agreement were met, without any change in the ownership interest. The effect of the change of participation recognized by the Company was R$124,905, consisting of the loss of participation with the entry of a new investor in the amount of R$268,495 and the capital contribution in its new proportion of participation, in the amount of R$393,400.

F-39

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

9 Investments in joint ventures

Changes to investments in joint ventures were as follows:

	Raízen Combustíveis S.A.			Raízen Energia S.A.			Total
Shares issued by the joint venture		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 as at June 30, 2018		243,276			104,837			348,113
At January 1, 2019		3,104,613			4,973,294			8,077,907
Interest in earnings of joint ventures (i)		425,897			(63,654	)		362,243
Other comprehensive (losses) income		(69,408	)		(99,686	)		(169,094	)
Interest on capital		(43,500	)		—			(43,500	)
Dividends		(356,897	)		(290,253	)		(647,150	)
At June 30, 2019		3,060,705			4,519,701			7,580,406

(i) Includes amount of R$30,040, related to the effect of the adoption of IFRS 16 by the jointly-controlled subsidiaries, as described in Note 3.1.

The statement of financial position and statement of profit or loss of the joint ventures are disclosed in Note 4 – Segment information.

At June 30, 2019, the Company was in compliance with the covenants of the agreements governing the Joint Ventures.

F-40

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

10 Property, plant and equipment, intangible assets, goodwill andright-of-use assets

10.1 Property, plant and equipment

a) Reconciliation of carrying amount

	Consolidated
	Land, buildings and improvements			Machinery, equipment and facilities			Railcars and locomotives (i)			Permanent railways			Construction in progress			Other			Total
Cost
At December 31, 2018		1,243,427			1,045,570			6,508,748			6,127,139			1,054,128			400,767			16,379,779
Transfers toright-of-use assets		(130,000	)		(2,538	)		(1,244,787	)		—			—			—			(1,377,325	)
At January 1, 2019		1,113,427			1,043,032			5,263,961			6,127,139			1,054,128			400,767			15,002,454
Additions		125			1,321			28,010			40			952,938			1,861			984,295
Disposals		(1,169	)		(8,199	)		(86,595	)		—			(1,318	)		(15,160	)		(112,441	)
Transfers		67,241			147,239			455,853			396,746			(955,860	)		4,749			115,968
Effect of exchange rate fluctuations		(1,072	)		(1,509	)		—			—			284			(1,226	)		(3,523	)
At June 30, 2019		1,178,552			1,181,884			5,661,229			6,523,925			1,050,172			390,991			15,986,753
Depreciation
At December 31, 2018		(351,161	)		(443,209	)		(1,743,714	)		(1,406,964	)		(10,842	)		(6,067	)		(3,961,957	)
Transfers toright-of-use assets		50,450			2,532			462,748			—			—			—			515,730
At January 1, 2019		(300,711	)		(440,677	)		(1,280,966	)		(1,406,964	)		(10,842	)		(6,067	)		(3,446,227	)
Additions		(35,331	)		(64,838	)		(309,528	)		(317,170	)		—			(14,533	)		(741,400	)
Disposals		131			8,030			85,955			—			—			10,578			104,694
Transfers		(443	)		(935	)		(60,461	)		652			—			8,083			(53,104	)
Effect of exchange rate fluctuations		239			688			—			—			—			643			1,570
At June 30, 2019		(336,115	)		(497,732	)		(1,565,000	)		(1,723,482	)		(10,842	)		(1,296	)		(4,134,467	)
At December 31, 2018		892,266			602,361			4,765,034			4,720,175			1,043,286			394,700			12,417,822
At June 30, 2019		842,437			684,152			4,096,229			4,800,443			1,039,330			389,695			11,852,286

(i) On June 30, 2019 and December 31, 2018, wagons and locomotives in the amount of R$745,203 were placed on bail to guarantee bank loans (Note 5.5).

F-41

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

10.2 Intangible assets and goodwill

	Consolidated
	Goodwill			Concession rights			Operating license			Trademarks			Customer relationships			Other			Total
Cost
At December 31, 2018		883,234			17,510,303			435,624			37,877			742,863			491,769			20,101,670
Additions		96			—			—			—			38,830			3,759			42,685
Disposals		—			(31,997	)		—			—			(121	)		—			(32,118	)
Transfers		813			231,200			171			—			(5,730	)		12,812			239,266
Effect of exchange rate fluctuations		(3,402	)		—			—			(712	)		(6,062	)		(981	)		(11,157	)
At June 30, 2019		880,741			17,709,506			435,795			37,165			769,780			507,359			20,340,346
Amortization
At December 31, 2018		—			(2,383,823	)		(224,356	)		—			(314,619	)		(206,337	)		(3,129,135	)
Additions		—			(256,461	)		(5,878	)		—			(52,625	)		(13,420	)		(328,384	)
Disposals		—			18,734			—			—			89			—			18,823
Transfers		—			(3	)		—			—			(81	)		11			(73	)
Effect of exchange rate fluctuations		—			—			—			—			1,773			(180	)		1,593
At June 30, 2019		—			(2,621,553	)		(230,234	)		—			(365,463	)		(219,926	)		(3,437,176	)
At December 31, 2018		883,234			15,126,480			211,268			37,877			428,244			285,432			16,972,535
At June 30, 2019		880,741			15,087,953			205,561			37,165			404,317			287,433			16,903,170

F-42

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

a) Capitalization of borrowing costs

Capitalized borrowing costs for the period ended June 30, 2019, R$7,886 was capitalized at an average rate of 8.99% p.a. (R$4,400 and 7.51 % p.a. on June 30, 2018).

b) Amortization methods and useful lives

Intangible assets (excluding goodwill)	Annual rate of amortization %	June 30, 2019		December 31, 2018
Comgás(i)	Concession term		8,029,337		8,007,412
Rumo(ii)	Concession term		7,058,616		7,119,068
			15,087,953		15,126,480
Operating license for port terminal(iii)	3.70%		205,561		211,268
Trademarks:
Comma	Undefined		37,165		37,877
			37,165		37,877
Customers relationship:
Comgás	20.00%		145,345		149,890
Moove	6.00%		258,972		278,354
			404,317		428,244
Other
Software license	20.00%		171,489		168,892
Other			115,944		116,540
			287,433		285,432
Total			16,022,429		16,089,301

(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 S.A., which will be amortized until the end of the concession in 2079;

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

c) 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, 2019, no impairment indicators were identified that would require the review of the last test performed at December 31, 2018.

F-43

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

10.3 Right-of-use assets

	Land, buildings and improvements			Machinery, equipment and facilities			Railcars and locomotives			Software			Vehicles			Port and rail infrastructure			Total
Cost:
Initial recognition of IFRS 16		109,255			8,888			41,884			66,931			13,085			792,615			1,032,658
Transfers from property, plant and equipment and other assets (i)		130,000			2,538			1,244,787			—			—			50,168			1,427,493
At January 1, 2019		239,255			11,426			1,286,671			66,931			13,085			842,783			2,460,151
Additions—monetary correction		4			(5	)		321			—			525			6,038			6,883
Contract remeasurement		(4,014	)		(956	)		—			—			—			—			(4,970	)
Transfers		—			(2,538	)		(138,288	)		—			—			1,565			(139,261	)
Currency translation adjustments		(334	)		—			—			—			—			—			(334	)
At June 30, 2019		234,911			7,927			1,148,704			66,931			13,610			850,386			2,322,469
Amortization:
Transfers from property, plant and equipment (i)		(50,450	)		(2,532	)		(462,748	)		—			—			—			(515,730	)
Impairment (ii)		—			—			—			—			—			(131,541	)		(131,541	)
At January 1, 2019		(50,450	)		(2,532	)		(462,748	)		—			—			(131,541	)		(647,271	)
Additions		(9,266	)		(1,939	)		(4,456	)		(3,199	)		(3,142	)		(39,115	)		(61,117	)
Transfers		(2,411	)		2,532			60,572			—			—			—			60,693
Currency translation adjustments		54			—			—			—			—			—			54
At June 30, 2019		(62,073	)		(1,939	)		(406,632	)		(3,199	)		(3,142	)		(170,656	)		(647,641	)
At January 1, 2019		188,805			8,894			823,923			66,931			13,085			711,242			1,812,880
At June 30, 2019		172,838			5,988			742,072			63,732			10,468			679,730			1,674,828

(i) The amount of transfers refers to transfers of finance leases previously recorded under property, plant and equipment, as shown in Property, plant and equipment (accumulated cost and depreciation). The cost also includes R$ 50,167 related to advances made at the beginning of the concession, the unappropriated amount of which was presented under other assets.

(ii) During year ended December 31, 2018, Malha Oeste, a Rumo subsidiary, recognized impairment on its long lived assets. As result of initial recognition of IFRS 16, Malha Oeste also recognized impairment on its relatedright-of-use assets.

F-44

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

11 Concession payables

	June 30, 2019						December 31, 2018
	Leases		Concessions		Total		Total
Payables
Rumo Malha Sul		—		36,915		36,915		60,761
Rumo Malha Paulista		—		19,998		19,998		45,892
	—		56,913		56,913		106,653
Court discussion
Rumo Malha Paulista		1,787,101		—		1,787,101		1,695,770
Rumo Malha Oeste		1,380,223		84,610		1,464,833		1,406,145
	3,167,324		84,610		3,251,934		3,101,915
Total		3,167,324		141,523		3,308,847		3,208,568
Current						9,530		28,797
Non-current						3,299,317		3,179,771

Judicial deposits at June 30, 2019 and December 31, 2018 concerning the above claims totaled:

	June 30, 2019		December 31, 2018
Rumo Malha Paulista		119,806		119,806
Rumo Malha Oeste		20,690		20,690
		140,496		140,496

The judicial deposits are recorded in the “regulatory” group, as described in Note 14.

12 Other taxes payable

	June 30, 2019		December 31, 2018
Tax amnesty and refinancing program—Refis		218,346		216,984
ICMS – State VAT		204,774		96,793
COFINS—Revenue tax		71,776		47,017
PIS—Revenue tax		15,061		7,654
ISS—Service tax		4,189		4,666
IOF—Financial tax		667		1,318
INSS—Social security		7,069		7,337
Other		19,679		18,417
		541,561		400,186
Current		383,046		245,587
Non-Current		158,515		154,599

F-45

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

13 Income tax and social contribution

a) Reconciliation of income and social contribution tax expenses

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Profit before taxes		798,039			1,275,757			(18,485	)		305,354
Income tax and social contribution nominal rate (34%)		(271,333	)		(433,756	)		6,285			(103,820	)
Adjustments to determine the effective rate
Interest in earnings of investees(non-taxable income)		22,269			116,461			23,426			123,675
Differences in tax rates on earnings / losses of overseas companies		(27,159	)		(38,656	)		34,771			(599	)
Granted income tax incentive		44,129			72,103			(16,117	)		(11,287	)
Share-based payment transactions		(276	)		(553	)		(888	)		(1,923	)
Interest on shareholders’ equity		(6,800	)		(14,790	)		(8,160	)		(13,430	)
Non-deductible expenses (donations, gifts, etc.)		(3,029	)		(7,686	)		(3,435	)		(4,646	)
Tax losses not recorded (i)		(28,964	)		(68,377	)		(28,133	)		(67,383	)
Goodwill amortization effect		317			635			464			927
Tax effects of discounts granted —PERT		—			—			—			110
Other		13,470			35,954			(7,895	)		(4,358	)
Income tax and social contribution benefit (expense)—current and deferred		(257,376	)		(338,665	)		318			(82,734	)
Effective rate—%		32.25			26.55			1.72			27.09

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

F-46

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

b) Deferred income tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are presented below:

	June 30, 2019			December 31, 2018
Assets credit of:
Income tax loss carry forwards		2,241,592			2,190,068
Social contribution tax loss carry forwards		820,632			801,866
Temporary differences
Foreign exchange—Loans and borrowings		745,715			789,220
Legal proceedings provision		476,000			396,577
Impairment provision		223,810			241,083
Provisions for employee benefits		189,666			175,178
Allowance for doubtful accounts		24,050			30,327
Regulatory asset (liability)		56,736			59,597
Impairment of tax credit		76,309			74,900
Share-based payment transactions		7,146			5,246
Profit sharing		36,385			51,601
Interest on preferred shareholders payable in subsidiaries		133,605			155,562
Property, plant and equipment—useful life review		339,998			277,925
Temporary differences		178,120			208,104
Other		56,590			67,991
Total		5,606,354			5,525,245
(-) Deferred taxes assets not recognized		(2,297,350	)		(2,104,742	)
Liabilities credit of:
Temporary differences
Business combination—property, plant and equipment		44,164			63,574
Tax deductible goodwill		(390,249	)		(389,679	)
Lease		(43,299	)		(228,055	)
Concession contract		(6,449	)		(6,745	)
Unrealized gains on derivatives instruments		(805,260	)		(664,841	)
Fair value option in loans		169,308			57,298
Income on formation of joint ventures		(1,135,036	)		(1,135,036	)
Business combination—Intangible asset		(3,705,084	)		(3,725,546	)
Other		116,853			56,201
Total		(5,755,052	)		(5,972,829	)
Total of deferred taxes recorded		(2,446,048	)		(2,552,326	)
Deferred income tax—Assets		1,665,535			1,540,693
Deferred income tax—Liabilities		(4,111,583	)		(4,093,019	)

c) Changes in deferred income tax

At December 31, 2018	(2,552,326	)
Recorded through profit and loss	66,814
Initial recognition of IFRS 16 (i)	41,709
Other	(2,245	)
At June 30, 2019	(2,446,048	)

(i) Refers to deferred tax assets effects on impairment ofright-use-assets of Rumo, as result of first time adoption of IFRS 16, disclosed in Note 3.1.

F-47

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

The Company expects to realize the full deferred tax on tax losses and social contribution.

14 Provision for legal proceedings

The Company had provision for legal proceedings and judicial deposits recorded in the financial position at June 30, 2019 and December 31, 2018 in respect of:

	Provision for legal proceedings				Judicial deposit
	June 30, 2019		December 31, 2018		June 30, 2019		December 31, 2018
Tax		589,619		534,131		482,912		460,484
Civil, environmental and regulatory		386,627		362,725		214,911		199,526
Labor		462,966		466,312		235,032		218,797
	1,439,212		1,363,168		932,855		878,807

Changes in provision for legal proceedings:

	Tax			Civil, environmental and regulatory			Labor			Total
At December 31, 2018		534,131			362,725			466,312			1,363,168
Provisions		30,808			17,678			46,830			95,316
Settlement / Write-offs		(12,589	)		(38,025	)		(66,667	)		(117,281	)
Monetary variation(i)		37,269			44,249			16,491			98,009
At June 30, 2019		589,619			386,627			462,966			1,439,212

(i) Includes interest reversal.

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

a) Probable losses

Tax: The principal tax proceedings for which the risk of loss is probable are described below:

	June 30, 2019		December 31, 2018
Compensation with FINSOCIAL		290,213		286,929
INSS—Social security		95,521		80,134
State VAT—ICMS credit		95,734		72,941
PIS and COFINS		2,159		171
IPI—Excise tax credit—NT(i)		53,109		28,931
Federal income taxes		1,771		1,589
Other		51,112		63,436
		589,619		534,131

(i) During the period ended June 30, 2019, the Company recorded provision for lawsuits IPISeletividade, related to period from November 1992 to December 1995, judged by the Brazilian Federal Supreme Court (“STF”), using the General Repercussion method (RE n ° 592,145, item 080), in the amount of R$53,109, with unfavorable scenario for the Company.

F-48

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

Civil, regulatory, environmental and other claims: Company and its subsidiaries are parties of a number of civil legal claims related to (i) indemnity for material and moral damages; (ii) termination of different kinds of agreements (iii) public civil claims related to sugarcane stubble burning; and (iv) compliance with terms of conduct adjustment, among other issues.

Labor claims: Cosan and its subsidiaries are also parties of a number of labor claims filed by former employees and service providers challenging, among other matters, the payment of overtime, night shift premiums and risk premiums, the recognition of employment relationships and the reimbursement of discounts from payroll, such as social contribution and trade union charges. Additionally, we are involved in several labor administrative and judicial proceedings such as labor investigations and class actions filed by the labor prosecutor’s office regarding allegednon-compliance with certain labor regulations, including work and safety rules, labor conditions and work environment, and social assistance plans. Moreover, we entered into certain consent orders (Termos de Ajustamento de Conduta) with Brazilian authorities and in the event, we fail to comply with such consent orders, we could be subject to fines.

b) Possible losses

Theprincipal proceedings for which we deem the risk of loss as possible are described below:

	June 30, 2019		December 31, 2018
Civil		3,578,433		3,258,113
Labor		990,539		990,913
Regulatory		801,041		699,301
Environmental		486,895		460,911
		5,856,908		5,409,238

	June 30, 2019		December 31, 2018
ICMS—State VAT (v)		2,875,050		2,684,248
Federal income taxes		3,567,468		3,372,743
IRRF—Withholding tax		1,014,969		982,134
PIS and COFINS—Revenue taxes (vi)		1,474,379		1,408,519
INSS—Social security and other		218,310		260,712
Goodwill Rumo		538,355		529,788
IPI—Excise tax credit—NT (iii)		439,000		490,500
Penalties related to tax positions (ii)		474,127		449,039
MP 470—Tax installments		301,546		297,902
Foreign financial operation (iv)		28,277		290,220
Compensation with IPI—IN 67/98		135,792		134,642
Stock option		69,065		67,991
Financial transactions tax on loan		53,194		52,585
Social security contributions		2,691		4,121
Compensation credit award		43,979		43,121
Other		455,699		417,598
		11,691,901		11,485,863

(ii) The addition refers to a supplement to the isolated fine imposed due to thenon-approval of the claims claimed.

(iii) The reduction in IPI amounts, classified as possible losses, during the period ended June 30, 2019, is related to the decision to provide the lawsuits over the same period, as described above in section “a) Probable losses—Tax”.

(iv) Reversal of definitive successes in administrative proceedings.

(v) The addition mainly refers to new assessments for alleged misuse of ICMS credit on invoices for the provision of rail freight services for export at the subsidiary Cosan Logística.

(vi) The additions refer mainly to the reevaluation of lawsuits related to assessments for allegednon-taxation by PIS and COFINS of traffic revenues and right of way billed at the subsidiary Cosan Logística.

F-49

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

15 Shareholders’ equity

a) Share capital

At June 30, 2019, Cosan Limited’s share capital is composed of the following:

Shareholders—Common shares	Class A common shares		%		Class B common shares		%
Controlling group		19,514,418		13.73%		96,332,044		100.00%
Renaissance Technologies LLC		1,549,696		1.09%		—		—
M&G Investment Management Limited		3,222,113		2.27%		—		—
Eastspring Investments (Singapore) Limited		3,805,730		2.68%		—		—
Free Float		107,500,108		75.64%		—		—
Total shares outstanding		135,592,065		95.41%		96,332,044		100.00%
Treasury shares		6,523,469		4.59%		—		—
Total		142,115,534		100.00%		96,332,044		100.00%

b) Treasury shares

The Company holds 6,523,469 Class A treasury shares as of June 30, 2019 (26,011,673 of December 31,2018) with a market value of US$11.59 per share as of June 30, 2019 (US$8.80 per share as of December 31, 2018). This reduction refers to the cancellation of 9,000,000 shares, as disclosed in note 1 and the exercise of 1,476,531 relating to the Company’s share-based compensation program.

c) Other comprehensive (loss) income

	December 31, 2018			Comprehensive (loss) income			June 30, 2019
Foreign currency translation effects		(533,917	)		(52,246	)		(586,163	)
Loss on cash flow hedge in joint ventures		21,493			(151,920	)		(130,427	)
Actuarial loss on defined benefit plan		(99,246	)		(2	)		(99,248	)
Financial instruments with subsidiaries		15,000			—			15,000
Change in fair values of financial assets		1,085			75			1,160
Total		(595,585	)		(204,093	)		(799,678	)
Attributable to:
Owners of the Company		(587,173	)		(116,323	)		(703,496	)
Non-controlling interests		(8,412	)		(87,770	)		(96,182	)
	December 31, 2017			Comprehensive (loss) income			June 30, 2018
Foreign currency translation effects		(372,343	)		(220,023	)		(592,366	)
Gain on cash flow hedge in joint ventures		14,610			(83,954	)		(69,344	)
Actuarial loss on defined benefit plan		(44,937	)		(1,042	)		(45,979	)
Financial instruments with subsidiaries		15,000			—			15,000
Change in fair values of financial assets		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	)

F-50

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

16 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, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018		January 1, 2018 to June 30, 2018
Profit attributable from continued operation to ordinary equity holders for basic earnings		208,401			398,617			22,683		128,987
Effect of dilution:
Dilutive effect of subsidiary’s stock option plan		(967	)		(1,685	)		124		(479	)
Dilutive effect of put option		—			—			—		—
Profit from continued operation attributable to ordinary equity holders adjusted for the effect of dilution		207,434			396,932			22,807		128,508
Basic number of shares outstanding – In thousands of shares		230,934			230,692			243,686		243,444
Effect of dilution:
Dilutive effect of stock option plan		8,964			9,206			10,440		10,682
Diluted number of shares outstanding – In thousands of shares		239,898			239,898			254,126		254,126
Basic earnings (loss) per share from:	R$	0.9024		R$	1.7279		R$	0.0931	R$	0.5298
	R$	0.9024		R$	1.7279		R$	0.0931	R$	0.5298
Diluted earnings (loss) per share from:	R$	0.8647		R$	1.6546		R$	0.0897	R$	0.5057
	R$	0.8647		R$	1.6546		R$	0.0897	R$	0.5057

Thenon-controlling interests of the indirect subsidiary Brado Logística S.A. (“Brado”) 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.

17 Net sales

The following is an analysis of the Company’s revenue for the period from continuing operations:

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Gross revenue from sales of products and services		5,852,047			11,295,203			4,797,125			8,960,136
Construction revenue		182,114			342,050			96,177			185,670
Indirect taxes and deductions		(961,302	)		(1,844,182	)		(818,811	)		(1,527,887	)
Net sales		5,072,859			9,793,071			4,074,491			7,617,919

F-51

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

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

	April 1, 2019 to June 30, 2019		January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018		January 1, 2018 to June 30, 2018
At a point in time
Gas distribution		2,144,345		4,031,099			1,410,060		2,678,880
Lubricants and basic oil		995,634		2,023,209			426,025		1,143,114
Other		12,034		25,702			468,069		531,529
		3,152,013		6,080,010			2,304,154		4,353,523
Over time									—
Transportation		1,654,735		3,223,160			71,902		131,798
Port elevation		74,005		140,526			1,484,365		2,717,843
Construction revenue		182,114		342,050			96,177		185,670
Other services		9,146		15,911			117,893		229,085
		1,920,000		3,721,647			1,770,337		3,264,396
Elimination		846		(8,586	)		—		—
Total of net sales		5,072,859		9,793,071			4,074,491		7,617,919

18 Costs and expenses by nature

The costs and expenses are presented in the statement of profit and loss by function. The reconciliation of income by nature/purpose is as follows:

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Raw materials and consumables used (i)		(1,986,576	)		(3,985,538	)		(1,516,616	)		(2,782,821	)
Construction cost		(182,114	)		(342,050	)		(96,177	)		(185,670	)
Expenses with third-party services		(148,123	)		(288,369	)		(143,338	)		(281,077	)
Employee benefit expense		(408,708	)		(783,663	)		(339,049	)		(657,712	)
Selling expenses		(11,314	)		(20,178	)		(4,787	)		(10,975	)
Transportation expenses		(624,066	)		(1,232,182	)		(604,553	)		(1,114,744	)
Leases and concessions expenses		—			—			(55,078	)		(106,764	)
Leases expenses		—			—			(3,950	)		(7,380	)
Depreciation and amortization		(555,426	)		(1,118,151	)		(502,461	)		(961,775	)
Other		(111,620	)		(249,650	)		(131,174	)		(259,364	)
		(4,027,947	)		(8,019,781	)		(3,397,183	)		(6,368,282	)
Cost of sales		(3,477,346	)		(6,946,673	)		(2,913,297	)		(5,425,976	)
Selling		(267,905	)		(531,927	)		(247,532	)		(492,601	)
General and administrative		(282,696	)		(541,181	)		(236,354	)		(449,705	)
		(4,027,947	)		(8,019,781	)		(3,397,183	)		(6,368,282	)

(i) The increase in raw material costs during the period ended June 30, 2019, refers to the increase in unit gas cost of Comgás segment operations added to the increase in Moove segment operations, production and distribution of lubricants, represented by the businesses of Cosan SRL, TTA, Lubrigrupoll and Metrolube.

F-52

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

19 Other income (expenses), net

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Gain on litigation indemnification		—			50,284			—			—
Revenue from sale of scrap		5,264			14,498			12,378			25,325
Tax Extemporary credits		38,847			48,284			—			—
Gain (Loss) from port operations		1,003			2,476			—			—
Loss on disposal ofnon-current assets and intangibles		(2,140	)		(7,212	)		(124	)		(869	)
Impairment		—			—			—			—
Net effect of legal proceedings, recoverable and tax installments		(19,042	)		(64,775	)		(26,057	)		(57,455	)
Other		(20,548	)		(45,239	)		(7,056	)		(10,521	)
		3,384			(1,684	)		(20,859	)		(43,520	)

20 Finance results, net

Details of finance income and costs are as follows:

	April 1, 2019 to June 30, 2019			January 1, 2019 to June 30, 2019			April 1, 2018 to June 30, 2018			January 1, 2018 to June 30, 2018
Cost of gross debt
Interest on debt		(417,356	)		(782,230	)		(413,311	)		(846,803	)
Monetary and exchange rate variation		169,260			97,481			(1,349,858	)		(1,406,419	)
Derivatives and fair value measurement		1,466			65,954			1,165,498			1,221,941
Amortization of borrowing costs		(9,533	)		(23,846	)		(25,870	)		(35,845	)
Finance and warranties on debt		(20,820	)		(41,126	)		(32,791	)		(68,453	)
		(276,983	)		(683,767	)		(656,332	)		(1,135,579	)
Income from financial investment and exchange rate in cash and cash equivalents		95,761			183,996			110,939			228,285
Cost of debt, net		(181,222	)		(499,771	)		(545,393	)		(907,294	)
Other charges and monetary variations
Interest on other receivables		79,499			101,505			16,587			63,601
Interest on other liabilities		(43,117	)		(82,276	)		(59,318	)		(95,529	)
Monetary variation on leases and concessions agreements		(49,780	)		(98,391	)		(47,337	)		(92,567	)
Monetary variation on leases		(89,261	)		(137,527	)		(20,176	)		(72,495	)
Advances on real state credits					—						(6,488	)
Interest on shareholders’ equity		(925	)		(925	)		(444	)		277
Interest on contingencies and contracts		(15,411	)		(80,904	)		(22,600	)		(49,644	)
Bank charges and other		(24,534	)		(48,979	)		(24,192	)		(47,156	)
Exchange variation		8,998			8,888			(35,680	)		(57,219	)
		(134,531	)		(338,609	)		(193,160	)		(357,220	)
Finance results, net		(315,753	)		(838,380	)		(738,553	)		(1,264,514	)
Reconciliation
Finance expense		(1,122,793	)		(1,930,174	)		(512,419	)		(1,012,302	)
Finance income		192,074			318,870			158,242			347,090
Foreign exchange (losses) gain, net		178,257			107,113			(1,391,779	)		(1,467,735	)
Derivatives		436,709			665,811			1,002,121			868,433
Finance results, net		(315,753	)		(838,380	)		(743,835	)		(1,264,514	)

F-53

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

21 Financial risk management

a) Market risk

The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

The Company uses derivatives to manage market risks. All such transactions are carried out within the guidelines set by the risk management committee. Generally, the Company seeks to apply hedge accounting to manage volatility in profit or loss.

i. Foreign exchange risk

As at June 30, 2019 and December 31, 2018, the Company had the following net exposure to the exchange rate variations on assets and liabilities denominated in Dollar (US$) and Euro (E$):

	June 30, 2019			December 31, 2018
Cash and cash equivalents		864,554			1,285,156
Trade receivables		29,423			51,734
Trade payables		(99,775	)		(245,885	)
Loans, borrowings and debentures		(13,942,110	)		(13,480,808	)
Leases		(69,245	)		—
Contingent consideration payable		(77,400	)		(64,969	)
Derivative financial instruments (notional)		11,816,620			11,064,567
Foreign exchange exposure, net		(1,477,933	)		(1,390,205	)

The sensitivity of profit or loss to changes in the exchange rates arises mainly from U.S. Dollar denominated financial instruments and the impact on other components of equity arises from foreign forward exchange contracts designated as cash flow hedges though its joint ventures.

A reasonably possible strengthening (weakening) of the Real to U.S. Dollar and Euro (E$) at June 30, 2019 would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. Stressed scenarios (positive and negative effects, before tax effects) were defined based on changes of a 25% and 50% to the U.S. Dollar and Euro (E$) exchange rates used in the probable scenario. The Company’s exposure to foreign currency changes for all other currencies is not material.

F-54

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

					Variation scenario
Instrument	Risk factor	Probable			25%			50%			-25%			-50%
Cash and cash equivalents	Currency Fluctuation		(11,775	)		213,195			426,389			(213,195	)		(426,389	)
Trade receivables	Currency Fluctuation		(402	)		7,255			14,510			(7,255	)		(14,510	)
Trade payables	Currency Fluctuation		1,359			(24,604	)		(49,208	)		24,604			49,208
Exchange rate derivatives	Currency Fluctuation		(177,962	)		2,967,687			5,935,375			(2,967,687	)		(5,935,375	)
Loans, borrowings and debentures	Currency Fluctuation		178,774			(3,440,833	)		(6,881,668	)		3,440,833			6,881,668
Leases	Currency Fluctuation		(943	)		17,076			34,151			(17,076	)		(34,151	)
Contingent consideration payable	Currency Fluctuation		1,055			(19,086	)		(38,172	)		19,086			38,172
Impacts on profit or loss			(9,894	)		(279,310	)		(558,623	)		279,310			558,623

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$/US$) and (R$/Euro)
			Scenario
	June 30, 2019		Probable		25%		50%		-25%		-50%
U.S.$		3.8322		3.7800		4.7250		5.6700		2.8350		1.8900
Euro		4.3587		4.3587		5.4484		6.5381		3.2690		2.1794

ii. Interest rate risk

The Company and its subsidiaries monitor the fluctuations in variable interest rates in connection with its borrowings, especially those that accrue interest using LIBOR, and uses derivative instruments in order to minimize variable interest rate fluctuation risks.

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, 2019
Exposure interest rate	Probable			25%			50%			-25%			-50%
Cash and cash equivalents		199,340			49,835			99,669			(49,835	)		(99,669	)
Marketable securities		127,122			31,781			63,462			(31,781	)		(63,462	)
Consideration asset		4,496			318			381			(191	)		(127	)
Restricted cash		11,894			2,974			5,947			(2,974	)		(4,741	)
Leases		(85,302	)		(18,562	)		(37,122	)		18,562			6,697
Derivative financial instruments		205,793			(936,885	)		(1,709,635	)		1,042,263			2,125,128
Loans, borrowings and debentures		(1,004,546	)		(135,855	)		(253,410	)		135,855			253,410
Impacts on profit or loss		(541,203	)		(1,006,394	)		(1,830,708	)		1,111,899			2,246,455

F-55

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

The probable scenario considers the estimated interest rate, made by a specialized third part and Central Bank of Brazil (Banco Central do Brasil), or BACEN, as follows:

	Probable		25%		50%		-25%		-50%
SELIC		5.65%		7.06%		8.48%		4.24%		2.83%
CDI		5.65%		7.06%		8.48%		4.24%		2.83%
TJLP462 (TJLP + 1% p.a.)		6.50%		7.88%		9.25%		5.13%		3.75%
TJLP		5.50%		6.88%		8.25%		4.13%		3.75%
IGPM		4.29%		5.36%		6.44%		3.22%		2.15%
IPCA		4.09%		5.11%		6.14%		3.07%		2.05%
Fed Funds		2.00%		2.50%		3.00%		1.50%		1.00%
Libor		1.78%		2.23%		2.67%		1.34%		0.89%

b) Credit risk

The Company’s regular operations expose it to potential defaults when customers, suppliers and counterparties are unable to comply with their financial or other commitments. The Company seeks to mitigate this risk by entering into transactions with a diverse pool of counterparties. However, the Company continues to remain subject to unexpected third party financial failures that could disrupt its operations. The exposure to credit risk was as follows:

	June 30, 2019		December 31, 2018
Cash and cash equivalents		5,002,763		3,621,798
Trade receivables		2,095,810		1,588,192
Marketable securities		2,204,385		4,202,835
Derivative financial instruments		3,218,358		2,548,857
Receivables from related parties		141,939		135,070
Dividends receivable		36,642		27,320
Restricted cash		167,820		115,124
		12,867,717		12,239,196

The Company is also exposed to risks in connection with its cash management activities and temporary investments.

Liquid assets are invested primarily in government security and other investments in Banks with a minimum grade of “A.” Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy.

F-56

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed on an annual basis and may be updated throughout the year. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through potential counterparty’s failure to make payments. 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, 2019		December 31, 2018
AAA		8,279,633		8,911,418
AA		2,312,832		1,577,196
		10,592,465		10,488,614

c) Liquidity risk

The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

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

	June 30, 2019															December 31, 2018
	Up to 1 year			1—2 years			3—5 years			More than 5 years			Total			Total
Loans, borrowings and debentures		(3,897,574	)		(4,065,313	)		(11,041,063	)		(12,429,420	)		(31,433,370	)		(31,569,411	)
Trade payables		(192	)		—			—			—			(192	)		(1,923,920	)
Other financial liabilities		(299,049	)		—			—			—			(299,049	)		(455,702	)
Tax installments—REFIS		(19,989	)		(16,468	)		(39,886	)		(155,623	)		(231,966	)		(232,358	)
Leases		(325,193	)		(338,660	)		(791,494	)		(791,494	)		(2,228,581	)		(837,662	)
Derivative financial instruments		(141,755	)		136,187			1,200,872			2,348,150			3,543,454			3,453,882
Payables to related parties		(7,548	)		—			—			—			(7,548	)		(355,971	)
Dividends payable		(9,530	)		—			—			—			(9,530	)		(187,415	)
		(4,700,830	)		(4,284,254	)		(10,671,571	)		(11,010,127	)		(30,666,782	)		(32,108,557	)

22 Post-employment benefits

	June 30, 2019		December 31, 2018
Futura		79,278		75,298
Futura II		221		252
Comgás		513,359		504,320
		592,858		579,870

During the period ended June 30, 2019, the amount of sponsor contributions to the plans was R$19,949 (R$16,411 on June 30, 2018).

F-57

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

23 Share-based payment

On May 21, 2019, the Board of Directors approved the replacement of the stock option plans to the stock-based compensation plan in subsidiary Cosan S.A., whose participants may opt for voluntary membership, 2,396,110 Company shares will be granted in replacement of the currently existing options and the fair value remeasured.

The plans have been administered by the Board of Directors, 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.

The detail of plans, including the quantity of granted shares and expected life in years is as follow:

Type of award / Grant date	Company		Expected life (years)		Granted
Stock option programs
August 18, 2011—(A)		Cosan S.A.		1 to 7		4,825,000
August 18, 2011—(B)		Cosan S.A.		1 to 12		5,000,000
December 12, 2012—(C)		Cosan S.A.		1 to 7		700,000
April 24, 2013		Cosan S.A.		5 to 7		970,000
April 25, 2014		Cosan S.A.		5 to 7		960,000
August 31, 2015		Cosan S.A.		5 to 7		759,000
						13,214,000
Stock grant programs
April 27, 2017		Cosan S.A.		5		274,000
July 31, 2017		Cosan S.A.		5		298,107
July 31, 2018		Cosan S.A.		5		210,602
April 20, 2017		Comgás		5		61,300
August 12, 2017		Comgás		5		97,780
August 1, 2018		Comgás		5		96,787
August 18, 2017		Cosan Limited		5		2,053,632
October 1, 2015		Rumo S.A		5		1,485,900
January 2, 2017		Rumo S.A		5		1,476,000
September 1, 2017		Rumo S.A		5		870,900
August 1, 2018		Rumo S.A		5		1,149,544
						8,074,552
Cash-settled transactions
September 21, 2017		Cosan Limited		5		255,000

a) Reconciliation of outstanding share options

The movement in the number of awards outstanding and their related weighted-average exercise prices are as follows:

	Stock option programs			Stock grant programs			Total			Weighted- average exercise price
At December 31, 2018		5,029,000			5,695,601			10,724,601			33.77
Vested		(18,261	)		(1,579,979	)		(1,598,240	)		—
Cancelled		(163,465	)		(50,408	)		(213,873	)		—
At June 30, 2019		4,847,274			4,065,214			8,912,488			36.19

F-58

Cosan Limited

Notes to the interim consolidated financial statements

(In thousands of Brazilian Reais – R$)

b) Expense recognized in profit or loss

Share-based compensation expense included in the statement of profit and loss for the period ended June 30, 2019 and 2018 was as follows:

	Stock option programs		Stock gran programs		Total
Period ended June 30, 2018		2,214		24,508		26,722
Period ended June 30, 2019		1,627		29,279		30,906

24 Subsequent events

24.1 Capital Reduction—Comgás

On July 1, 2019, at the Extraordinary General Meeting (EGM), a capital reduction of R$ 1,500,000 was approved with cash refund. The capital reduction will only be effective after the following conditions are met: (i) 60 days to object creditors’ opposition pursuant to corporate law; and (ii) debenture holders consent.

24.2 Private offering

On July 24, 2019 Company has priced a private offering of US$750,000 in aggregate principal amount of 5.500% notes due 2029. The offering closed on July 31, 2019.

24.3 Association between Raízen Combustíveis S.A. (Join Venture—Jointly controlled) and Femsa Comércio, S.A. de C.V.

On August 6, 2019 Raízen Combustíveis and its subsidiary Raízen Conveniências SA entered into a Share Purchase and Investment Agreement with Femsa, subject to approval by the Administrative Council for Economic Defense—CADE and compliance with certain suspensive conditions, which establishes the terms and conditions for the acquisition of a stake in Raízen Conveniências by Femsa, as well as the constitution of a joint venture in Brazil.

Femsa will become the owner of 50% of Raízen Conveinências’ capital stock, through the subscription of new shares and also the purchase of existing shares currently held by Raízen Combustíveis in the Company’s capital stock. It was considered an Enterprise Value of R $ 1,122,000, based on the acquisition of interest in a company free of any debt or cash.

The purpose of this transaction will be to expand the convenience store franchise business under the Shell Select brand and to develop the proximity store business outside the OXXO brand.

24.4 Norte-Sul Railway Sub-Concession Agreement

On July 24, 2019, the subsidiary Rumo Malha Central, a special purpose entity formed to operate the north-south railroad concession, paid R$ 145,239, representing 5% of the grant of the sub concession agreement.

On July 31, 2019, the subsidiary Rumo Malha Central and the Federal Government entered the Sub-Concession Agreement for the operation of the public rail freight service for a period of 30 years.

25 New standards and interpretations not yet effective

The following new standards, interpretations and amendments were issued by the IASB, but are not effective for annual periods beginning after January 1, 2019. Although early adoption is permitted, the Company did not adopt them in advance in the preparation of these interim consolidated financial statements.

25.1 IFRS 17 Insurance Contracts

This standard introduces a new model for accounting for insurance contracts. IFRS 17 is effective for reporting periods beginning on or after January 1, 2021, with comparative figures required. Based on preliminary work we estimate the impact will be immaterial, we are in the process of reviewing our existing arrangements to determine the impact on adoption.

No other new accounting standards issued or in force during the fiscal year had or should have a material impact on these interim consolidated financial statements.

F-59

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 15, 2019

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