Cosan S.A. Indústria e Comércioir.cosan.com.br/enu/1148/CosanS.A_DemonstraesFinanceirasintermedi... · 3 Independent auditor report on review of consolidated interim financial statements

Cosan S.A. Indústria e Comércio

Interim financial statements at

September 30, 2015 and auditor‟s report

(A free translation of the original in Portuguese)

2


Interim Financial statements

For the three and nine months period ended September 30, 2015 and

December 31, 2014

Contents

Independent auditor report on review of interim

financial statements ..................................................................................... 2

Statement of financial position ................................................................... 4

Statement of profit or loss and other comprehensive income .................... 6

Statement of changes in shareholders‟ equity .......................................... 11

Statement of cash flows ............................................................................ 13

Statement of value added .......................................................................... 17

Notes to the consolidated interim financial statements ............................ 19

3

Independent auditor report on review of consolidated interim

financial statements

To the Board of Directors and Shareholders


São Paulo - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information

of Cosan S.A. Indústria e Comércio (“The Company”), contained in the Quarterly Information

Form - ITR for the quarter ended September 30, 2015, which comprises the statement of financial

position as of September 30, 2015 and the respective statements of profit or loss and

comprehensive income (loss) for the three and nine month periods then ended, and changes in

shareholders‟ equity and cash flows for the nine month period then ended, including the

footnotes.

Management is responsible for the preparation of the individual interim financial information in

accordance with the Technical Pronouncement CPC 21(R1) - Interim Financial Information, and

the consolidated interim financial information in accordance with CPC 21(R1) and the

international standard IAS 34 - Interim Financial Reporting, issued by the International

Accounting Standards Board - IASB, such as for the presentation of these information in

accordance with the standards issued by the Brazilian Securities Commission - CVM, applicable

to the preparation of Quarterly Information - ITR. Our responsibility is to express a conclusion on

these interim financial information based on our review.

Review scope

We conducted our review in accordance with the Brazilian and International standards on reviews

of interim information (NBC TR 2410 - Review of Interim Financial Information Performed by

the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information

Performed by the Independent Auditor of the Entity, respectively). A review of interim

information consists of making inquiries, primarily of persons responsible for the financial and

accounting matters, and applying analytical and other review procedures. A review is

substantially less in scope than an audit conducted in accordance with the audit standards 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 on the interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the interim

financial information included in the Quarterly Information - ITR referred to above has not been

prepared, in all material respects, in accordance with CPC 21(R1) and IAS 34 applicable to the

preparation of Quarterly Information - ITR, and presented in accordance with the standards issued

by the Brazilian Securities Commission - CVM.

Others matters

Interim information of the value added

We have also reviewed the individual and consolidated statements of value added (DVA), related

to the nine month period ended September 30, 2015, prepared under the responsibility of the

4

Company‟s management, which presentation in the interim information is required in accordance

with standards issued by the Brazilian Securities Commission - CVM applicable to the

preparation of Quarterly Information - ITR, and is considered as a supplementary information

under IFRS, which do not require the presentation of DVA. These statements were subject to the

same review procedures described above, and based on our review, nothing has come to our

attention that causes us to believe that it has not been prepared, in all material respects, in

accordance with the individual and consolidated interim financial information taken as a whole.

Corresponding values

The individual and consolidated financial information for the year ended December 31, 2014

presented for comparative purposes, were audited by other independent auditors, who issued an

unqualified audit report on March 18, 2015.

The individual and consolidated financial information for the nine month period ended on

September 30, 2014, prepared originally before the partial spin-off of the Company and merger of

the spun-off portion into Cosan Logística, which corresponds to the Company‟s logistics

operations, described in note 2.3, were reviewed by other independent auditors, who issued an

unqualified review report on November 5, 2014. As part of our review of the interim financial

information for the nine month period ended on September 30, 2015, we reviewed the

adjustments in the corresponding values of the interim financial information of 2014 and nothing

has come to our attention that causes us to believe that it has not been prepared, in all material

respects appropriately. We were not engaged to audit, review or apply any procedures to the

interim financial information for the nine month period ended September 30, 2014, accordingly,

we do not express an opinion or any other form of assurance on the interim financial information

taken as a whole.

The corresponding amounts related to the statements of value added (DVA), individual and

consolidated, related to nine month period ended September 30, 2014, are submitted to the same

review procedures for those independent auditors and, based on their review, those auditors

issued report reporting that they had no knowledge of any fact which would lead them to believe

that the DVA was not prepared, in all material respects, consistent with the individual and

consolidated interim financial information taken as a whole.

São Paulo, November 10, 2015

KPMG Auditores Independentes

CRC 2SP014428/O-6

Original report in Portuguese signed by

Carlos Augusto Pires

Accountant CRC 1SP184830/O-7


Statement of financial position As of September 30, 2015 and December 31, 2014

(In thousands of Brazilian Reais - R$)

5

Parent Company Consolidated

Note

September

30, 2015

December

31, 2014

September

30, 2015

December

31, 2014

Assets

Cash and cash equivalents 4 40,313 376,004 1,865,000 1,540,192

Securities - - 214,890 149,735

Trade receivables 5 - - 862,131 822,424

Derivative financial instruments 23 398,820 6,059 462,899 30,069

Inventories - - 392,141 347,903

Receivables from related parties 7 47,912 29,413 85,912 51,387

Income tax 8,930 36,081 86,099 93,780

Taxes recoverable 3,741 91 96,483 78,516

Other financial assets 6 76,445 69,683 76,445 69,683

Dividends receivable 79,392 47,425 212,938 36,130

Other 28,068 131,748 65,383 163,480

Asset held for sale 10 - - 289,295 25,089

Total Current assets 683,621 696,504 4,709,616 3,408,388

Trade receivables 5 - - 36,933 34,299

Deferred tax assets 16 - - 296,203 213,288

Receivables from related parties 7 185,633 210,221 201,543 212,527

Income tax 8,778 8,778 8,778 8,778

Taxes recoverable - - 15,215 17,299

Judicial deposits 17 247,013 236,239 405,628 388,714

Other financial assets 6 - 38,092 - 370,497

Derivative financial instruments 23 1,212,251 429,988 2,084,354 850,297

Other non-current asset 592,188 469,984 810,919 644,912

Equity method investments 8 11,606,895 11,040,183 146,506 130,678

Investment in joint ventures 9 2,850,166 2,942,384 8,279,197 8,404,502

Investment properties 10 - - 2,385,932 2,641,978

Property, plant and equipment 11 25,324 26,664 383,654 351,435

Intangible assets 12 6,734 6,342 9,414,262 9,426,120

Total non-current assets 16,734,982 15,408,875 24,469,124 23,695,324

Total Assets 17,418,603 16,105,379 29,178,740 27,103,712

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


Statement of financial position As of September 30, 2015 and December 31, 2014

(In thousands of Brazilian Reais - R$)

6


Note

September

30, 2015

December

31, 2014

September

30, 2015

December

31, 2014

Liabilities

Loans and borrowings 13 385,365 266,006 1,147,344 856,334

Derivative financial instruments 23 - 8,843 949 13,803

Trade payables 14 898 2,528 1,545,339 971,170

Employee benefits 19,534 19,451 94,756 101,115

Income tax payable - 21,134 42,988 27,626

Other taxes payable 15 22,747 200,600 136,135 300,435

Dividends payable 15,106 12,437 15,756 20,347

Payables to related parties 7 409,167 1,669,152 129,093 122,449

Other 18,612 40,633 106,848 131,930

Total current liabilities 871,429 2,240,784 3,219,208 2,545,209

Loans and borrowings 13 - - 7,852,483 6,541,268

Preferred shareholders

payable in subsidiaries 18 2,106,730 1,926,888 2,106,730 1,926,888

Derivative financial instruments 23 143,763 64,291 756,008 319,632

Other taxes payable 15 165,411 2,160 165,411 334,565

Provision for judicial demands 17 271,566 253,372 691,966 644,401

Payables to related parties 7 4,791,309 1,888,535 - -

Pension and post-employment

benefits 25

131

139

317,746

301,764

Deferred tax liabilities 16 521,229 804,311 1,482,922 1,542,676

Other payable 111,701 106,623 443,272 498,036

Total non-current liabilities 8,111,840 5,046,319 13,816,538 12,109,230

Total liabilities 8,983,269 7,287,103 17,035,746 14,654,439

Equity 19

Share capital 3,822,725 3,632,231 3,822,725 3,632,231

Treasury shares (58,694) (58,694) (58,694) (58,694)

Capital reserve 955,285 950,694 955,285 950,694

Other comprehensive income 70,346 175,298 70,346 175,298

Profit reserve 3,653,252 4,118,747 3,653,252 4,118,747

Retained earnings (7,580) - (7,580) -

Equity attributable to:

Owners of the Company 8,435,334 8,818,276 8,435,334 8,818,276

Non-controlling interests 8 - - 3,707,660 3,630,997

Total equity 8,435,334 8,818,276 12,142,994 12,449,273

Total equity and liabilities 17,418,603 16,105,379 29,178,740 27,103,712



Statement of profit or loss and other comprehensive income For the three and nine months period ended September 30, 2015 and 2014

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

7

Parent Company

Note

July 1,

2015 to

September

30, 2015

January 1,

2015 to

September

30, 2015

July 1, 2014

to September

30, 2014

(Restated)

January 1, 2014

to September

30, 2014

(Restated)

General and administrative expenses (30,075) (91,225) (25,141) (75,383)

Other expense, net 22 (12,588) (126,613) (18,500) (150,334)

Operating expenses (42,663) (217,838) (43,641) (225,717)

Loss before financial results, equity

__in earnings and income taxe (42,663) (217,838) (43,641) (225,717)

Equity in earnings of investees

Equity in earnings of associates 8 348,739 748,759 79,034 355,479

Equity in earnings of jointly controlled

__entity 9 (27,229) (92,218) 91,433 338,830

321,510 656,541 170,467 694,309

Financial results 21

Finance expense (114,404) (350,152) (98,409) (354,343)

Finance income 58,608 117,656 13,314 83,940

Foreign exchange losses, net (1,130,449) (1,706,861) (298,747) (131,844)

Derivatives 757,549 1,209,992 154,348 30,351

(428,696) (729,365) (229,494) (371,896)

(Loss) Profit before taxes (149,849) (290,662) (102,668) 96,696

Income tax (expense) benefits 16

Current - - - 3,422

Deferred 136,506 283,082 89,517 205,942

136,506 283,082 89,517 209,364

(Loss) profit from continuing

operations (13,343) (7,580) (13,151) 306,060

Profit from discontinued operation, net

__of tax 2.3 - - 28,384 69,442

(Loss) profit for the period (13,343) (7,580) 15,233 375,502




8

Other comprehensive income

Items that will never be reclassified to

__profit or loss:

Actuarial gain on defined benefit plan - - 1,827 923

Taxes on items that will never be

__reclassified to profit or loss - - (621) (314)

- - 1,206 609

Items that are or may be reclassified to

profit or loss:

Foreign currency translation differences (38,674) (65,361) (4,634) (16,659)

Loss on cash flow hedge in jointly

controlled entity (96,944) (40,789) (41,833) (83,214)

Changes in fair value of available for

sale securities 515 1,198 65 927

Taxes on items that are may be

___reclassified to profit or loss - - 14,201 27,978

(135,103) (104,952) (32,201) (70,968)

Total other comprehensive

loss, net of tax (135,103) (104,952) (30,995) (70,359)

Total comprehensive income (148,446) (112,532) (15,762) 305,143

Earning per share

Continued operations 20 (R$0,03) (R$0,02) (R$0,03) R$0,75 Discontinued operations - - R$0,07 R$0,18

(R$0,03) (R$0,02) R$0,04 R$0,93 Earning per share

Continued operations 20 (R$0,03) (R$0,02) (R$0,03) R$0,74 Discontinued operations - - R$0,07 R$0,17

(R$0,03) (R$0,02) R$0,04 R$0,91





9

Consolidated

Note

July 1, 2015

to September

30, 2015

January 1,

2015 to

September

30, 2015

July 1, 2014

to September

30, 2014

(Restated)

January 1,

2014 to

September

30, 2014

(Restated) Net sales 2,259,238 6,316,777 2,100,950 6,105,710

Cost of sales (1,619,341) (4,475,042) (1,488,800) (4,302,578)

Gross profit 639,897 1,841,735 612,150 1,803,132

Selling expenses (231,060) (671,419) (229,667) (660,572)

General and administrative expenses (143,793) (427,269) (133,887) (392,089)

Other income (expense), net 22 (12,413) (113,187) (5,509) (102,990)

Operating expenses (387,266) (1,211,875) (369,063) (1,155,651)

Income before financial results, equity in __earnings and income taxes 252,631 629,860 243,087 647,481

Equity in earnings of investees

Equity in earnings of associates 8 419 (2,740) (3,369) (2,702)

Equity in earnings of jointly controlled entity 9 28,767 276,812 79,168 464,633

29,186 274,072 75,799 461,931

Financial results 21

Finance expense (270,170) (829,683) (248,536) (704,344)

Finance income 140,838 279,002 44,908 143,825

Foreign exchange losses, net (180,793) (641,767) (209,636) (108,077)

Derivatives 105,999 442,847 116,513 58,433

(204,126) (749,601) (296,751) (610,163)

Profit before taxes 77,691 154,331 22,135 499,249

Income tax (expense) benefits 16

Current (11,393) (118,882) (38,792) (92,061)

Deferred (6,662) 148,923 74,022 113,223

(18,055) 30,041 35,230 21,162

Profit from continuing operations 59,636 184,372 57,365 520,411

Profit from discontinued operation, net of tax 2.3 - - 38,324 92,698

Profit for the period 59,636 184,372 95,689 613,109




10

Other comprehensive income

Items that will never be reclassified to profit

__or loss:

Actuarial gain on defined benefit plan - - 3,027 1,611

Taxes on items that will never be

____reclassified to profit or loss - - (1,029) (548)

- - 1,998 1,063

Items that are or may be reclassified to

profit or loss:

Foreign currency translation differences (38,674) (65,361) (4,634) (16,658)

Loss on cash flow hedge in jointly

controlled entity (97,338) (40,459) (41,833) (83,214)

Changes in fair value of available for

sale securities 4,132 7,561 65 2,411

Taxes on items that are may be reclassified to

____profit or loss (504) (2,901) 14,201 27,472

(132,384) (101,160) (32,201) (69,989)

Total other comprehensive

loss), net of tax (132,384) (101,160) (30,203) (68,926)

Total comprehensive income (72,748) 83,212 65,486 544,183

Total net income attributable to:

Owners of the Company

__(including discontinued operations) (13,344) (7,580) 15,234 375,502

Non-controlling interests 72,980 191,952 80,455 237,607

Total comprehensive income attributable to:

Owners of the Company (148,447) (112,532) (15,762) 305,143

Non-controlling interests 75,699 195,744 81,248 239,040



Statements of changes in shareholder‟ equity For the nine months period ended on September 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$)

11

Profit Reverse

Common

Stock

Treasury

share

Capital

Reserve

Others

equity

components

Legal Statutory

reserve

Unrealized

earnings

Retained

earnings

Accumulated

losses Total

Non-

controlling

interest

Total

Equity

January 01, 2014 4,691,822 (104,337) 856,910 221,351 237,030 2,417,613 248,318 1,168,151 - 9,736,858 3,778,512 13,515,370

Profit for the nine months - - - - - - - - 375,502 375,502 237,607 613,109 Gain (loss) on cash flow hedge in jointly

controlled entity - - - (54,921) - - - - - (54,921) - (54,921)

Foreign currency translation effects - - - (16,659) - - - - - (16,659) - (16,659) Actuarial gain on defined benefit plan - - - 609 - - - - - 609 454 1,063

Change in fair value of available for sale

securities - - - 612 - - - - - 612 979 1,591

Total comprehensive income for the year - - - (70,359) - - - - 375,502 305,143 239,040 544,183

Exercise of stock options plan - 45,643 - - - - - - - 45,643 - 45,643 Dividends - - - - - (63,645) (30,744) - - (94,389) (79,850) (174,239)

Share based compensation - - 7,689 - - - - - - 7,689 - 7,689

Total contributions by and distributions to

owners of the Cosan - 45,643 7,689 - - (63,645) (30,744) - - (41,057) (79,850) (120,907)

Cost of issuance of preferred shares in subsidiary - - (35,814) - - - - - - (35,814) - (35,814)

Acquisition cost of the preferred shares of

subsidiaries - - (1,316) - - - - - - (1,316) 3,514 2,198


owners of the Cosan - - (37,130) - - - - - - (37,130) 3,514 (33,616)

Spetember 30, 2014 4,691,822 (58,694) 827,469 150,992 237,030 2,353,968 217,574 1,168,151 375,502 9,963,814 3,941,216 13,905,030



Statements of changes in shareholder‟ equity For the nine months period ended on September 30, 2015 and 2014

(Amounts in thousands of Brazilian Reais – R$)

12

Profit reverse

Common

stock

Treasury

share

Capital

reserve

Others equity

components Legal

Statutory

reserve

Unrealized

earnings

Retained

earnings

Accumulated

loss Total

Non-

controlling

interest

Total equity

January 01, 2015 3,632,231 (58,694) 950,694 175,298 251,631 2,481,391 217,574 1,168,151 - 8,818,276 3,630,997 12,449,273

Profit for the nine months - - - - - - - - (7,580) (7,580) 191,952 184,372 Gain (loss) on cash flow hedge in jointly

controlled entity - - - (40,789) - - - - - (40,789) - (40,789) Foreign currency translation effects - - - (65,361) - - - - - (65,361) - (65,361)

Change in fair value of available for sale

securities - - - 1,198 - - - - - 1,198 3,792 4,990

Total comprehensive income for the year - - - (104,952) - - - - (7,580) (112,532) 195,744 83,212

Capital increase 190,494 - - - - (190,494) - - - - - - Dividend distribution effect to non-controlling - - (3,144) - - - - - - (3,144) 3,144 -

Dividends - - - - - (34,093) (46,553) (194,355) - (275,001) (124,655) (399,656)

Share based compensation - - 8,228 - - - - - - 8,228 - 8,228


owners of the Cosan, recognized directly in

equity

190,494 - 5,084 - - (224,587) (46,553) (194,355) - (269,917) (121,511) (391,428)

Acquisition of non-controlling interest - - (493) - - - - - - (493) 2,430 1,937

Total transactions with owners of the parent,

recognized directly in equity - - (493) - - - - - - (493) 2,430 1,937

September 30, 2015 3,822,725 (58,694) 955,285 70,346 251,631 2,256,804 171,021 973,796 (7,580) 8,435,334 3,707,660 12,142,994

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


Statements of cash flows For the nine months ended on September 30, 2015 and 2014

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

13

Parent Company

Note

January 1, 2015

to September

30, 2015

January 1, 2014

to September 30,

2014 (Restated)

Cash flows from operating activities (Loss) profit before taxes (290,662) 96,696

Adjustments for: Depreciation and amortization 11 / 12 2,987 2,495 Equity pick-up in investees 8 (748,759) (355,479) Equity pick-up in jointly controlled entities 9 92,218 (338,830) Option shares granted 22 8,229 7,689 Provision for judicial demands 29,747 29,867 Indexation charges, interest and exchange gains/losses, net 750,748 349,391 Other 4,607 34,560 (150,885) (173,611)

Changes in: Investment securities - (65,000) Recoverable taxes - 31,088 Related parties (174,281) (40,131) Trade payables (1,638) (798) Employee benefits (11,626) (9,848) Provision for judicial demands (3,089) (9,279) Income tax and other tax (11,646) (58,208) Other assets and liabilities, net 17,225 71,757 (185,055) (80,419)

Net cash generated by (used in) operating activities (335,940) (254,030)

Cash flows from investing activities Acquisitions net of cash acquired (43,691) (111,124) Dividends received from investees 196,339 293,923 Dividends received from jointly controlled entity 34,425 315,010 Acquisition of property, plant and equipment and intangible assets 11 / 12 (2,038) (2,628) Related parties (3,372) - Minority Subscription 1,937 2,194 Net cash generated by (used in) investing activities 183,600 497,375

Cash flows from financing activities Loans and borrowings raised - 550,000 Payment of interest on loans, borrowings (3,975) -

Related parties (12,642) (491,619) Derivative financial instruments 105,597 (164,555) Dividends paid (272,331) (99,352) Treasury shares - (148,537) Proceeds from exercise of share options - 45,643 Net cash used by financing activities (183,351) (308,420)

Increase (decrease) in cash and cash equivalents (335,691) (65,075) Cash and cash equivalents at beginning of year 376,004 256,091 Cash and cash equivalents at end of year 40,313 191,016


Statements of cash flows For the nine months ended on September 30, 2015 and 2014


14

Consolidated

Note January 1, 2015 to

September 30, 2015

January 1, 2014 to

September 30, 2014

(Restated)

Cash flows from operating activities Profit before taxes 154,330 499,249

Adjustments for:

Depreciation and amortization 11 / 12 420,778 433,543 Equity pick-up in investees 8 2,740 2,702 Equity pick-up in jointly controlled entities 9 (276,812) (464,633) Gain on disposals assets 22 2,762 7,387 Option shares granted 8,228 7,689 Change in fair value of investment property 10 (23,162) (63,729) Provision for judicial demands 22 32,301 39,735 Indexation charges, interest and exchange gains/losses, net 897,302 664,894 Other 60,037 66,567 1,278,504 1,193,404

Changes in: Trade receivables (13,705) (61,908) Investment securities (45,512) (104,433) Discontinued operation - 52,394 Inventories (32,571) (13,939) Recoverable taxes (30,382) 51,258 Related parties (36,733) (62,338) Trade payables 505,529 96,886 Employee benefits (43,641) (28,305) Provision for judicial demands (7,303) 10,059 Income tax and other tax (32,839) (151,014) Other assets and liabilities, net (88,593) (2,580) 174,250 (213,920) Net cash generated by (used in) operating activities 1,452,754 979,484

Cash flows from investing activities Acquisitions net of cash acquired (34,644) (18,883) Dividends received from investees 1,150 1,938 Dividends received from jointly controlled entity 206,425 315,010 Acquisition of property, plant and equipment and intangible assets 11 / 12 (452,685) (572,842) Redemption of shares in subsidiary 8,281 - Proceeds from sale of property, plant and equipment, intangible

__and investments 5,155 1,178 Discontinued operation - (183,280) Net cash used in investing activities (266,318) (456,879)

Cash flows from financing activities Loans and borrowings raised 515,039 859,870 Payment of principal on loans and borrowings (736,536) (2,551,834) Payment of interest on loans and borrowings (451,423) (592,887) Raising through of the preferred shares - 1,946,736

Related parties (3,807) - Derivative financial instruments 190,847 (73,396) Discontinued operation - (270,103) Dividends paid (404,230) (54,690) Proceeds from exercise of share options - 45,643 Net cash used by financing activities (917,110) (690,661) Increase (decrease) in cash and cash equivalents 269,326 (168,056) Cash and cash equivalents at beginning of year 1,540,192 1,474,553 Effect of exchange rate fluctuations on cash held 55,482 - Cash and cash equivalents at end of year 1,865,000 1,306,497

Supplemental cash flow information Interest paid 48,845 62,320 The accompanying notes are an integral part of these interim financial statements.


Statements of value added For the three and nine months ended September 30, 2015 and 2014


15

Parent Company

January 1, 2015

to September

30, 2015

January 1, 2014

to September

30, 2014

(Restated)

Revenues

Other operational revenues, net 6,727 -

6,727 -

Raw materials acquired from third parties

Materials, energy, third parties services, others (168,664) (164,936)

(168,664) (164,936)

Gross value added (161,937) (164,936)

Retention

Depreciation and amortization (2,987) (2,495)

(2,987) (2,495)

Net value added (164,924) (167,431)

Value added received in transfer

Equity in earnings of associates 748,759 356,041

Equity in earnings of jointly controlled entity (92,217) 338,830

Financial revenue 1,327,648 114,291

1,984,190 809,162

Value added to be distributed 1,819,266 641,731

Distribution of value added

Salaries 41,963 40,547

Taxes and contributions (274,939) (194,836)

Financial expenses 2,057,013 486,187

Rentals and leasing 2,809 3,211

Net (loss) income from continuing operations (7,580) 306,622

1,819,266 641,731



Statements of value added For the three and nine months ended September 30, 2015 and 2014


16

Consolidated

January 1,

2015 to

September

30, 2015

January 1, 2014

to September

30, 2014

(Restated)

Revenues

Sale of services and products, net 7,849,461 7,254,034

Other operational revenues, net 49,512 448,025

Allowance for doubtful accounts (14,839) (18,953)

7,884,134 7,683,106

Raw materials acquired from third parties

Cost of sales and services rendered (5,209,126) (985,343)

Materials, energy, third parties services, others (481,071) (4,433,795)

(5,690,197) (5,419,138)

Gross value added 2,193,937 2,263,968

Retention

Depreciation and amortization (420,778) (433,543)

(420,778) (433,543)

Net value added 1,773,159 1,830,425

Value added received in transfer

Equity in earnings of associates (2,740) (2,702)

Equity in earnings of jointly controlled entity 276,812 464,633

Financial revenue 721,849 226,485

985,921 688,416

Value added to be distributed 2,758,297 2,518,841

Distribution of value added

Salaries 270,988 280,201

Taxes and contributions 821,737 856,675

Financial expenses 1,471,450 836,647

Rentals and leasing 20,534 24,905

Non-controlling interests 191,951 214,353

Net income from continuing operations (7,580) 306,060

2,769,080 2,518,841



Notes to the interim financial statements

For the three and nine months ended September 30, 2015 and December, 31, 2014


17

1 Operations

Cosan S.A. Indústria e Comércio, ("Company" or "Cosan") is a publicly traded company with its

shares traded on the Novo Mercado da Bolsa de Valores de São Paulo ("BM&FBOVESPA")

under the ticker symbol CSAN3, and has its headquarters in the city of São Paulo, Brazil. Cosan

Limited is the controlling shareholder of Cosan, in which it holds 62.51%.

The primary activities in which Cosan, through its subsidiaries, operates, include the following

business segments: (i) Piped natural gas distribution to part of the State of São Paulo through its

subsidiary Companhia de Gás de São Paulo – COMGÁS (“COMGÁS”); (ii) Purchase, sale and

leasing of agricultural land through its subsidiaries, Radar Propriedades Agrícolas S.A. and Radar

II Propriedades Agrícolas S.A. (“Radar”); (iii) Production and distribution of lubricants under the

Mobil licensed trademark in Brazil, Bolivia, Uruguay and Paraguay, in addition to the European

and Asian market using the Comma brand; and (iv) other investments, in addition to the corporate

structures of the Company (“Cosan‟s other business”). On October 1, 2014 the segment “Rumo”

was spun-off to Cosan Logística S.A, see more details in the note 2.3.

The Company also holds interests in two jointly controlled entities ("Joint Ventures" or "JVs"): (i)

Raízen Combustíveis S.A. (“Raízen Combustíveis”), fuel distribution business, and (ii) Raízen

Energia S.A. (“Raízen Energia”), production and marketing of sugar, ethanol and energy

cogeneration, produced from sugar cane bagasse. Cosan and Royal Dutch Shell (“Shell”) share

control of the two entities, where each owns 50% of the economic control.





18

2 Presentation of interim financial statements and significant accounting

policies

2.1 Basis of preparation

Statement of compliance

The interim individual and consolidated financial statements have been prepared in accordance

with CPC 21 - Interim Financial Reporting and the International Accounting Standard IAS 34 –

Interim Financial Reporting issued by the International Accounting Standards Board (IASB), and

presented in accordance with the standards issued by the Securities and Exchange Commission

applicable to the preparation of the Quarterly Information - ITR.

These financial statements have been prepared following the basis of preparation and accounting

policies consistent with those adopted in preparing the financial statements for the year ended on

December 31, 2014 and should be read together. Information notes that had no significant

changes compared to December 31, 2014 were not fully presented in these financial statements.

These interim financial statements were authorized for issue by the Board of Directors on

November 10, 2015.

2.2 Basis of measurement

The interim financial statements include the accounts of Cosan and its subsidiaries. Cosan‟s

subsidiaries are listed below:





19

September

30, 2015

December 31,

2014

Subsidiaries

_Águas da Ponte Alta S.A. 65.00% 65.00%

_Bioinvestments Negócios e Participações S.A. 65.00% 65.00%

_Comma Oil Chemicals 100.00% 100.00%

_Companhia de Gás de São Paulo - COMGÁS 61.33% 60.69%

_Cosan Biomassa S.A. 100.00% 100.00%

_Cosan Cayman II Limited 100.00% 100.00%

_Cosan Global Limited 100.00% 100.00%

_Cosan Investimentos e Participações S.A. 100.00% 100.00%

_Cosan Lubes Investments Limited 100.00% 100.00%

_Cosan Lubrificantes e Especialidades S.A. 100.00% 100.00%

_Cosan Luxembourg S.A. 100.00% 100.00%

_Cosan Overseas Limited 100.00% 100.00%

_Cosan Paraguay S.A. 100.00% 100.00%

_Cosan US, Inc. 100.00% 100.00%

_Nova Agrícola Ponte Alta S.A. 29.50%

29.50%

_Nova Amaralina S.A. Propriedades Agrícolas 29.50% 29.50%

_Nova Santa Barbara Agrícola S.A. 29.50% 29.50%

_Pasadena Empreendimentos e Participações S.A. 100.00% 100.00%

_Proud Participações S.A. 65.00% 65.00%

_Radar II Propriedades Agrícolas S.A. 65.00% 65.00%

_Radar Propriedades Agrícolas S.A. 29.50% 29.50%

_Terras da Ponte Alta S.A. 29.50% 29.50%

_Vale da Ponte Alta S.A. 65.00% 65.00%

Zip Lube S.A 100.00% 100.00%

2.3 Discontinued operations – Spin-off - Cosan Logística S.A.

On October 1, 2014 in the Extraordinary General Meeting (EGM) it was considered and approved

the partial spin-off and merger of the spun-off portion into Cosan Logística S.A, which

corresponds to the Company‟s logistics operations.

For purposes of comparability, the interim financial statements for the three and nine months

period ended on September 30, 2014 have been restated to reflect and disclose the effects of

discontinued operations.





20

Statement of profit or loss - For the three months ended September 30, 2014 :

Consolidated

Published

Dicontinued

Operation Adjusted

Gross profit 692,784 80,634 612,150

Income before financial results, equity in income

of associates and income taxes

303,843 60,756 243,087

Equity in income of investees 75,799 - 75,799

Financial results (299,813) (3,061) (296,752)

Income taxes expenses 15,860 (19,371) 35,231

Profit from continuing operations 95,689 38,324 57,365

Profit from discontinued operations, net of tax - (38,324) 38,324

Net income attributable to Owners of the

Company

15,233 - 15,233

Parant Company

Published

Dicontinued

Operation Adjusted



(43,641) - (43,641)

Equity in income of investees 198,851 28,384 170,467

Financial results (229,494) - (229,494)

Income taxes expenses 89,517 - 89,517

Profit from continuing operations 15,233 28,384 (13,151)



Company

15,233 - 15,233

Statement of profit or loss - For the nine months ended September 30, 2014 :

Consolidated

Published

Dicontinued

Operation Adjusted

Gross profit 2,030,081 226,949 1,803,132



810,336 162,855 647,481

Equity in income of investees 461,931 - 461,931

Financial results (633,273) (23,110) (610,163)

Income taxes expenses (25,885) (47,047) 21,162




Company

613,109 - 613,109

Parant Company





21

Published

Dicontinued

Operation Adjusted

Gross profit - - -



(225,717) - (225,717)

Equity in income of investees 763,751 69,442 694,309

Financial results (371,896) - (371,896)

Income taxes expenses 209,364 - 209,364




Company

375,502 - 375,502

Cash flow - For the three months ended September 30, 2014 :

Consolidated

Published

Discontinued

operation Adjusted

Cash flows from operating activities

Profit before taxes 79,829 57,695 22,134

Adjustment for reconciliation profit 454,643 40,391 414,252

Changes in assets and liabilities (82,295) (54,496) (27,799)

Discontinued operation - (43,590) 43,590

Net cash generated by operating activities 452,177 - 452,177

Cash flows from investing activities

Dividends received from jointly controlled entity 118,010 - 118,010

Acquisition of property, plant and equipment and

intangible assets (297,312) (85,551) (211,761)

Other activities investing (5,834) - (5,834)

Discontinued operation - 85,551 (85,551)

Net cash used in investing activities (185,136) - (185,136)

Cash flows from financing activities

Loans and borrowings raised 120,839 80,024 40,815

Payment of principal on loans and borrowings (189,263) (27,798) (161,465)

Payment of principal on loans and borrowings (132,620) (10,870) (121,750)

Raising through of the preferred shares (53,264) - (53,264)

Dividends paid (31,250) (125,000) 93,750

Othet fiananciang activities 3,618 - 3,618


Net cash used by financing activities (281,940) - (281,940)

Decrease in cash and cash equivalents (14,899) - (14,899)





22

Parant Company

Published

Discontinued

operation Adjusted


Profit before taxes (74,284) 28,384 (102,668)

Adjustment for reconciliation profit 48,166 (28,384) 76,550

Changes in assets and liabilities 29,878 - 29,878




Capital investment in subsidiaries and affiliates (68,706) - (68,706)

Other activities investing (375) - (375)

Net cash used in investing activities 142,679 - 142,679


Related parties (41,055) - (41,055)

Othet fiananciang activities (12,406) - (12,406)


Decrease in cash and cash equivalents 92,978 - 92,978





23

Cash flow - For the nine months ended September 30, 2014 :

Consolidated

Published

Discontinued

operation Adjusted



Adjustment for reconciliation profit 801,241 107,087 694,154

Changes in assets and liabilities (460,752) (194,438) (266,314)

Discontinued operation - (52,394) 52,394




Acquisition of property, plant and equipment and

intangible assets

(756,122) (183,280) (572,842)

Other activities investing (15,767) - (15,767)


Net cash used in investing activities (456,879) - (456,879)


Loans and borrowings raised 947,446 87,576 859,870

Payment of principal on loans and borrowings (2,628,674) (76,840) (2,551,834)

Payment of interest on loans and borrowings (623,726) (30,839) (592,887)

Raising through of the preferred shares 1,946,736 - 1,946,736

Dividends paid (304,690) (250,000) (54,690)

Othet fiananciang activities (27,753) - (27,753)



Decrease in cash and cash equivalents (168,057) - (168,057)





24

Parant Company

Published

Discontinued

operation Adjusted



Adjustment for reconciliation profit (339,749) (69,442) (270,307)

Changes in assets and liabilities (80,419) (80,419)

Net cash generated by operating activities (254,030) - (254,030)


Capital investment in subsidiaries and affiliates (111,124) - (111,124)

Dividends received from investees 293.923 - 293.923

Dividends received from jointly controlled

entity 315.010 - 315.010

Other activities investing (434) - (434)

Net cash used in investing activities 497.375 - 497.375


Loans and borrowings raised 550.000 - 550.000

Payment of principal on loans and borrowings (243.480) - (243.480)

Payment of interest on loans and borrowings (248.139) - (248.139)

Related parties (164.555) - (164.555)

Dividends paid (148.537) - (148.537)

Discontinued operation (53.709) - (53.709)

Net cash used by financing activities (308.420) - (308.420)

Decrease in cash and cash equivalents (65.075) - (65.075)





25

2.4 Changes in accounting policies

The following new standards and interpretations to existing standards were issued by the IASB

but are not effective for the year ending in December 2015. Early adoption of standards, although

encouraged by the IASB, is not permitted in Brazil by the Brazilian Accounting Pronouncements

Committee (CPC).

IFRS 9, „Financial instruments‟, addresses the classification, measurement and recognition of

financial assets and financial liabilities. IFRS 9 is effective for annual reporting periods beginning

on or after January 1, 2018. The Company is currently assessing the potential impact of adopting

IFRS 9.

IFRS 15, „Revenue from contracts with customers‟ This new standard provides the principles that

an entity apply to determine the measurement of income and when it is recognized. The standard

is effective for annual periods beginning on or after January 1, 2018. The standard replaces IAS

18 „Revenue‟ and IAS 11 „Construction contracts‟ and related interpretations. The Company is

currently assessing the potential impacts of adopting IFRS 15.

There are no other Standards or Interpretations that are not yet effective that would be expected to

have a significant impact on the Company.





26

3 Operating segments

a) Segment information (consolidated)

The following segment information is based on the information used by Cosan's senior

management to assess the performance of the operating segments and to make decisions

with regards to the allocation of resources. Cosan evaluates operating performance based

on the measure of EBITDA. A reconciliation of EBITDA to profit (loss) of the period is

presented below.

Operating segments

(i) Raízen Energia: production and sale of a variety of products derived from sugar cane,

including raw sugar (VHP), anhydrous and hydrated ethanol, and activities related to

energy cogeneration from sugarcane bagasse. In addition, this segment holds interests in

companies engaged in research and development on new technologies;

(ii) Raízen Combustíveis: distribution and sale of fuels, mainly through a network of service

stations under the "Shell" brand throughout Brazil;

(iii) COMGÁS: distribution of piped natural gas to part of the State of São Paulo

(approximately 180 municipalities, including the region called Greater São Paulo) to

customers in the industrial, residential, commercial, automotive, thermo generation and

cogeneration sectors;

(iv) Radar: management, buying, selling and leasing of agricultural properties;

(v) Lubricants: production and distribution of lubricants under the Mobil brand in Brazil,

Bolivia, Uruguay and Paraguay, as well as European and Asian market with a Comma

trademark; and

(vi) Other business: Other investments, beyond the Company's corporate structures. The

operating segment other business includes subsidiaries with the aim of raising funds for

the group.

The segments Raízen Energia and Raízen Combustíveis are accounted for under the equity

method and not consolidated in these interim financial statements according to CPC19 (R2) –

Negócios em conjunto / IFRS11 – Joint arrangements. However, the Company‟s senior

management continues to review segment information of 100% of the results of these segments

and a reconciliation of these segments to the entity‟s financial information is presented in the

column “Joint Venture deconsolidation”.

The following summarized assets and selected profit or loss information by segment were

prepared on the same basis as the accounting practices used in the preparation of consolidated

information:





27

July 1, 2015 to September 30, 2015

Raízen

Energia

Raízen

Combustíveis

COMGÁS

Radar

Lubricants

Other

business

Deconsolidated

effects

IFRS 11

Segment

elimination

Consolidated

Statement of income:

Net sales 2,637,476 15,638,868 1,743,099 31,886 484,226 27 (18,276,344) - 2,259,238 __Domestic market 1,098,525 15,638,868 1,743,099 31,886 388,613 27 (16,737,393) - 2,163,625

__External market 1,538,951 - - - 95,613 - (1,538,951) - 95,613

Gross profit 441,839 753,937 501,674 21,173 117,115 (65) (1,195,776) - 639,897 Selling expenses (188,350) (305,979) (156,465) - (74,595) - 494,329 - (231,060)

General and administrative expenses (137,341) (91,255) (78,338) (8,030) (18,482) (38,943) 228,596 - (143,793)

Other income (expense), net (5,433) 88,042 (671) 23 385 (12,150) (82,609) - (12,413) Financial results (462,881) (94,575) 889 3,198 (13,555) (194,658) 557,456 - (204,126)

__Financial expense (262,380) (45,428) (58,366) (266) (1,532) (214,931) 307,808 4,925 (270,170)

__Financial income 181,857 39,412 105,055 3,464 1,993 35,251 (221,269) (4,925) 140,838 __Foreign exchange losses, net (622,213) (169,696) 349,574 - (17,435) (512,932) 791,909 - (180,793)

__Derivatives 239,855 81,137 (395,374) - 3,419 497,954 (320,992) - 105,999

Equity in earnings of associates (14,802) 3,505 - - (2,416) 118,901 11,297 (116,066) 419 Equity in earnings of joint ventures - - - - - 28,767 - - 28,767

Income tax expense benefit 161,011 (84,041) (94,867) (3,508) (4,484) 84,804 (76,970) - (18,055)

Profit (loss) for the period (205,957) 269,634 172,222 12,856 3,968 (13,344) (63,677) (116,066) 59,636

Other selected data: - - - - - - - - -

Depreciation and amortization 509,827 144,802 120,865 102 20,140 1,147 (654,629) - 142,254 EBITDA 605,740 593,052 387,065 13,268 42,147 97,657 (1,198,792) (116,066) 424,071

Addition PP&E, intangible and biological assets

(cash) 230,362 208,571 136,639 663 15,222 6,996 (438,933) - 159,520 - - - - - - - - -

Reconciliation of EBITDA - - - - - - - - -

Profit (loss) for the period (205,957) 269,634 172,222 12,856 3,968 (13,344) (63,677) (116,066) 59,636 Income tax and social contribution (161,011) 84,041 94,867 3,508 4,484 (84,804) 76,970 - 18,055

Financial result, net 462,881 94,575 (889) (3,198) 13,555 194,658 (557,456) - 204,126

Depreciation and amortization 509,827 144,802 120,865 102 20,140 1,147 (654,629) - 142,254

EBITDA 605,740 593,052 387,065 13,268 42,147 97,657 (1,198,792) (116,066) 424,071





28

January 1, 2015 to Septemebr 30, 2015

Raízen

Energia

Raízen

Combustíveis

COMGÁS

Radar

Lubricants

Other

business

Deconsolidated

effects

IFRS 11

Segment

elimination

Consolidated


Net sales 7,364,398 44,494,263 4,948,174 80,419 1,288,157 27 (51,858,661) - 6,316,777

__Domestic market 3,054,921 44,494,263 4,948,174 80,419 1,032,784 27 (47,549,184) - 6,061,404 __External market 4,309,477 - - - 255,373 - (4,309,477) - 255,373

Gross profit 1,070,155 2,214,742 1,461,154 62,437 318,210 (66) (3,284,897) - 1,841,735

Selling expenses (425,510) (903,002) (461,640) - (209,779) (1) 1,328,512 - (671,420) General and administrative expenses (399,167) (288,757) (238,794) (22,225) (52,014) (114,236) 687,924 - (427,269)

Other income (expense), net 9,324 231,602 (4,540) 20,807 758 (130,212) (240,926) - (113,187)

Financial results (690,226) (115,901) (131,363) 6,870 (22,552) (602,557) 806,127 - (749,602) __Financial expense (662,354) (131,457) (255,045) (1,015) (23,021) (563,527) 793,811 12,925 (829,683)

__Financial income 482,055 118,641 184,279 7,885 3,348 96,415 (600,696) (12,925) 279,002

__Foreign exchange losses, net (1,082,392) (314,386) 153,124 - (11,860) (783,031) 1,396,778 - (641,767) __Derivatives 572,465 211,301 (213,721) - 8,981 647,586 (783,766) - 442,846

Equity in earnings of associates (32,214) 10,617 - - (9,507) 281,962 21,597 (275,195) (2,740)

Equity in earnings of joint ventures - - - - - 276,812 - - 276,812

Income tax expense benefit 242,477 (346,139) (226,842) (10,328) (13,507) 280,718 103,662 - 30,041

Profit (loss) for the period (225,161) 803,162 397,975 57,561 11,610 (7,580) (578,001) (275,195) 184,371

Other selected data:

Depreciation and amortization 1,473,871 431,832 360,017 594 56,988 3,180 (1,905,703) - 420,779

EBITDA 1,696,459 1,697,034 1,116,197 61,613 104,657 317,439 (3,393,493) (275,195) 1,324,711 Addition PP&E, intangible and biological assets

(cash) 1,459,134 573,423 382,659 1,604 31,904 40,115 (2,032,557) - 456,282

Reconciliation of EBITDA

Profit (loss) for the period (225,161) 803,162 397,975 57,561 11,610 (7,580) (578,001) (275,195) 184,371 Income tax and social contribution (242,477) 346,139 226,842 10,328 13,507 (280,718) (103,662) - (30,041)

Financial result, net 690,226 115,901 131,363 (6,870) 22,552 602,557 (806,127) - 749,602

Depreciation and amortization 1,473,871 431,832 360,017 594 56,988 3,180 (1,905,703) - 420,779

EBITDA 1,696,459 1,697,034 1,116,197 61,613 104,657 317,439 (3,393,493) (275,195) 1,324,711





29

July 1, 2014 to September 30, 2014

Raízen

Energia

Raízen

Combustíveis

COMGÁS

Radar

Lubricants

Other

business

Deconsolidated

effects

IFRS 11

Segment

elimination

Consolidated

Descontinued

operation


Net sales 2,331,340 14,333,868 1,643,750 27,350 429,850 - (16,665,208) - 2,100,950 261,300

__Domestic market 1,087,302 14,333,868 1,643,750 27,350 354,266 - (15,421,170) - 2,025,366 218,047

__External market 1,244,038 - - - 75,584 - (1,244,038) - 75,584 43,253

Gross profit 373,908 711,930 494,834 20,420 96,895 - (1,085,838) - 612,149 80,635 Selling expenses (146,015) (299,871) (165,140) - (64,528) - 445,886 - (229,668) -

General and administrative expenses (137,330) (95,504) (75,174) (8,880) (17,687) (32,146) 232,834 - (133,887) (20,894)

Other income (expense), net 23,331 83,828 (5,999) 18,754 416 (18,678) (107,159) - (5,507) 1,015 Financial results (194,020) (86,854) (48,122) 1,600 (7,950) (242,280) 280,874 - (296,752) (3,061)

__Financial expense (128,453) (38,708) (75,395) (215) 27,393 (203,462) 167,161 3,142 (248,537) (9,819)

__Financial income 106,535 23,250 27,222 1,815 1,705 17,308 (129,785) (3,142) 44,908 6,468 __Foreign exchange losses, net (266,774) (68,122) (80,876) - (46,006) (82,754) 334,896 - (209,636) 290

__Derivatives 94,672 (3,274) 80,927 - 8,958 26,628 (91,398) - 116,513 -

Equity in earnings of associates (12,872) 3,887 - - (1,498) 122,119 8,985 (123,990) (3,369) - Equity in earnings of joint ventures - - - - - 79,168 - - 79,168 -

Income tax expense benefit 63,139 (121,209) (66,295) (3,571) (1,954) 107,051 58,070 - 35,231 (19,371)

Profit (loss) for the period (29,859) 196,207 134,104 28,323 3,694 15,234 (166,348) (123,990) 57,365 38,324

Other selected data: - - - - - - - - -

Depreciation and amortization 529,517 141,936 128,877 243 17,263 891 (671,453) - 147,274 25,650

EBITDA 630,539 546,206 377,398 30,537 30,861 151,354 (1,176,745) (123,990) 466,160 86,406

Addition PP&E, intangible and biological assets (cash) 387,417 195,740 171,684 192 15,627 24,258 (583,157) - 211,761 85,551

- - - - - - - - -

Reconciliation of EBITDA - - - - - - - - -

Profit (loss) for the period (29,859) 196,207 134,104 28,323 3,694 15,234 (166,348) (123,990) 57,365 38,324

Income tax and social contribution (63,139) 121,209 66,295 3,571 1,954 (107,051) (58,070) - (35,231) 19,371

Financial result, net 194,020 86,854 48,122 (1,600) 7,950 242,280 (280,874) - 296,752 3,061 Depreciation and amortization 529,517 141,936 128,877 243 17,263 891 (671,453) - 147,274 25,650

EBITDA 630,539 546,206 377,398 30,537 30,861 151,354 (1,176,745) (123,990) 466,160 86,406





30

January 1, 2014 to September 30, 2014

Raízen

Energia

Raízen

Combustíveis

COMGÁS

Radar

Lubricants

Other

business

Deconsolidated

effects IFRS 11

Segment

elimination

Consolidated

Descontinued

operation


Net sales 6,622,468 41,029,657 4,777,520 126,092 1,202,065 33 (47,652,125) - 6,105,710 659,715

__Domestic market 2,884,269 41,029,657 4,777,520 126,092 985,275 33 (43,913,926) - 5,888,920 553,735

__External market 3,738,199 - - - 216,790 - (3,738,199) - 216,790 105,980 Gross profit 1,191,299 2,000,178 1,468,361 70,771 263,965 34 (3,191,477) - 1,803,131 226,950

Selling expenses (426,930) (884,888) (473,892) - (186,680) - 1,311,818 - (660,572) -

General and administrative expenses (398,691) (296,456) (218,339) (25,727) (51,479) (96,544) 695,147 - (392,089) (63,632) Other income (expense), net 81,990 262,258 (13,926) 63,620 588 (153,268) (344,248) - (102,986) (464)

Financial results (116,092) (78,719) (151,875) 6,891 39,240 (504,420) 194,811 - (610,164) (23,110)

__Financial expense (370,615) (102,013) (217,555) (779) 62,603 (557,858) 472,628 9,244 (704,345) (52,284) __Financial income 252,247 69,840 65,707 7,670 3,282 76,410 (322,087) (9,244) 143,825 28,602

__Foreign exchange losses, net (136,828) (15,108) (48,716) - (20,089) (39,272) 151,936 - (108,077) 572

__Derivatives 139,104 (31,438) 48,689 - (6,556) 16,300 (107,666) - 58,433 - Equity in earnings of associates (28,803) 11,219 - - (4,837) 414,606 17,584 (412,471) (2,702) -

Equity in earnings of joint ventures - - - - - 464,633 - - 464,633 -

Income tax expense benefit (14,237) (327,571) (208,270) (11,410) (9,619) 250,462 341,808 - 21,163 (47,048)

Profit (loss) for the period 288,536 686,021 402,059 104,145 51,178 375,503 (974,557) (412,471) 520,414 92,695

Other selected data:

Depreciation and amortization 1,423,933 403,244 376,708 727 53,611 2,497 (1,827,177) - 433,543 70,378 EBITDA 1,842,798 1,495,555 1,138,912 109,391 75,168 631,958 (3,338,353) (412,471) 1,542,958 233,231

Addition PP&E, intangible and

biological assets (cash) 1,963,115 602,330 491,750 447 30,545 50,100 (2,565,445) - 572,842 183,280 Reconciliation of EBITDA

Profit (loss) for the period 288,536 686,021 402,059 104,145 51,178 375,503 (974,557) (412,471) 520,414 92,695

Income tax and social contribution 14,237 327,571 208,270 11,410 9,619 (250,462) (341,808) - (21,163) 47,048 Financial result, net 116,092 78,719 151,875 (6,891) (39,240) 504,420 (194,811) - 610,164 23,110

Depreciation and amortization 1,423,933 403,244 376,708 727 53,611 2,497 (1,827,177) - 433,543 70,378

EBITDA 1,842,798 1,495,555 1,138,912 109,391 75,168 631,958 (3,338,353) (412,471) 1,542,958 233,231





31

September 30, 2015

Statement of financial position: Raízen

Energia

Raízen

Combustíveis

COMGÁS

Radar

Lubricants

Other

business

Deconsolidated

effects IFRS 11

Segment

elimination

Total

consolidated

Cash and cash equivalents 3,428,097 220,788 1,476,126 1,179 90,765 296,930 (3,648,885) - 1,865,000 Investment Securities - - - 214,890 - - - - 214,890

Trade receivables 466,101 1,486,432 592,888 23,853 245,149 241 (1,952,533) - 862,131

Derivative financial instruments 1,514,030 128,365 603,405 - 26,973 1,916,875 (1,642,395) - 2,547,253 Inventories 2,293,958 1,359,823 131,953 - 257,975 2,213 (3,653,781) - 392,141

Other current assets 1,139,953 795,769 153,635 298,077 45,061 424,108 (1,935,722) (8,326) 912,555

Other non-current assets 3,468,753 1,199,922 293,565 20,800 (144,410) 1,615,151 (4,668,675) (9,887) 1,775,219 Investment in associates 216,019 262,304 - - 10,729 5,822,677 (478,323) (5,686,900) 146,506

Investment in joint ventures - - - - - 8,279,197 - - 8,279,197

Biological assets 1,903,554 - - - - - (1,903,554) - - Investment property - - - 2,385,932 - - - - 2,385,932

Property, plant and equipment 9,792,568 2,411,818 - 1,744 227,199 154,711 (12,204,386) - 383,654

Intangible assets and goodwill 3,275,569 4,344,146 8,611,843 1,749 793,495 7,175 (7,619,715) - 9,414,262 Loans and borrowings (12,018,295) (2,012,818) (3,253,671) - (459,945) (5,286,211) 14,031,113 - (8,999,827)

Derivative financial instruments (447,966) (90,917) - - (949) (756,008) 538,883 - (756,957)

Trade payables (990,963) (701,011) (1,347,481) (669) (192,231) (4,958) 1,691,974 - (1,545,339) Employee benefits payable (304,474) (68,869) (50,980) (6,302) (15,811) (21,663) 373,343 - (94,756)

Other current liabilities (770,582) (1,094,392) (117,516) (20,432) (125,596) (185,489) 1,864,974 18,213 (430,820)

Other non-current liabilities (1,349,470) (3,074,107) (1,132,629) (100,202) (145,603) (3,829,613) 4,423,577 - (5,208,047)

Total assets (net of liabilities)

___allocated by segment 11,616,852 5,167,253 5,961,138 2,820,619 612,801 8,435,336 (16,784,105) (5,686,900) 12,142,994

Total assets 27,498,602 12,209,367 11,863,415 2,948,224 1,552,936 18,519,277 (39,707,969) (5,705,112) 29,178,740





32

December 31, 2014

Statement of financial position: Raízen

Energia

Raízen

Combustíveis

COMGÁS

Radar

Lubricants

Other

business

Deconsolidated

effects IFRS 11

Segment

elimination

Total

consolidated

Cash and cash equivalents 2,643,950 173,470 973,708 6,011 39,810 520,663 (2,817,420) - 1,540,192 Investment Securities - - - 149,735 - - - - 149,735

Trade receivables 620,300 1,920,778 605,483 22,214 194,486 241 (2,541,078) - 822,424

Derivative financial instruments 542,102 28,378 335,058 - (721) 546,028 (570,480) - 880,365 Inventories 2,315,907 1,128,771 125,406 - 222,486 11 (3,444,678) - 347,903

Other current assets 2,228,121 493,252 137,360 31,052 26,416 342,987 (2,721,373) (19,750) 518,065

Other non-current assets 1,986,145 2,365,613 256,077 15,538 (184,670) 1,809,980 (4,351,758) (6,610) 1,890,315 Investment in associates 209,205 256,729 - - 16,032 5,783,699 (465,934) (5,669,053) 130,678

Investment in joint ventures - - - - - 8,404,503 - - 8,404,503

Biological assets 1,828,304 - - - - - (1,828,304) - - Investment property - - - 2,641,978 - - - - 2,641,978

Property, plant and equipment 9,848,969 2,464,316 - 11,288 221,466 118,681 (12,313,285) - 351,435

Intangible assets and goodwill 3,288,709 4,267,514 8,595,251 173 824,277 6,419 (7,556,223) - 9,426,120 Loans and borrowings (10,377,585) (1,557,782) (3,133,347) - (261,166) (4,003,089) 11,935,367 - (7,397,602)

Derivative financial instruments (359,408) (188,556) (4,960) - - (328,474) 547,964 - (333,434)

Trade payables (636,619) (529,990) (848,770) (790) (118,784) (2,826) 1,166,609 - (971,170)

Employee benefits payable (252,219) (66,799) (58,955) (5,336) (15,437) (21,387) 319,018 - (101,115)

Other current liabilities (776,208) (1,896,387) (118,021) (20,783) (100,853) (389,492) 2,672,595 26,361 (602,788)

Other non-current liabilities (2,687,911) (2,263,528) (992,028) (93,552) (193,082) (3,969,669) 4,951,439 - (5,248,331)

Total assets (net of liabilities)

___allocated by segment 10,421,762 6,595,779 5,872,262 2,757,528 670,260 8,818,275 (17,017,541) (5,669,052) 12,449,273

Total assets 25,511,712 13,098,821 11,028,343 2,877,989 1,359,582 17,533,212 (38,610,533) (5,695,413) 27,103,712





33

(b) Detailed net sales by segment:

July 1, 2015 to

September 30,

2015

January 1, 2015

September 30,

2015

July 1, 2014 to

September 30,

2014

January 1, 2014

September 30,

2015

Raízen Energia

Ethanol 1,128,511 3,695,498 951,990 3,152,586

Sugar 1,200,640 3,073,937 1,075,130 2,883,405

Cogeneration 203,002 387,740 230,582 432,834

Other 105,323 207,223 73,638 153,643

2,637,476 7,364,398 2,331,340 6,622,468

Raízen Combustíveis

Fuels 15,638,868 44,494,263 14,333,868 41,029,657

15,638,868 44,494,263 14,333,868 41,029,657

COMGÁS

Industrial 1,098,456 3,175,412 1,039,188 3,100,765

Residential 202,404 504,608 193,576 475,842

Thermogeneration 129,043 379,188 95,438 286,867

Cogeneration 64,982 203,082 59,124 187,132

Automotive 50,262 145,313 51,290 148,044

Commercial 77,706 211,108 68,257 187,728

Construction revenue 109,959 303,683 126,237 361,341

Other 10,287 25,780 10,640 29,801

1,743,099 4,948,174 1,643,750 4,777,520

Radar

Property sale 11,829 20,145 11,080 74,340

Land lease 16,730 50,235 14,427 46,235

Other 3,327 10,039 1,843 5,517

31,886 80,419 27,350 126,092

Lubricants

Lubricants 403,214 1,105,607 342,973 997,460

Basic Oil 76,870 171,028 71,471 181,662

Other 4,142 11,522 15,406 22,943

484,226 1,288,157 429,850 1,202,065

Cosan’s other business 27 27 - 33

IFRS 11 - Deconsolidated

of Joint Ventures and

eliminations (18,276,344) (51,858,661) (16,665,208) (47,652,125)

Total 2,259,238 6,316,777 2,100,950 6,105,710





34

4 Cash and cash equivalents


September

30, 2015 December 31,

2014 September 30,

2015 December 31,

2014

Cash and bank accounts 1,128 265 141,604 121,342

Financial Investments 39,185 375,739 1,723,396 1,418,850

40,313 376,004 1,865,000 1,540,192

Financial investments refer substantially exclusive funds as presented below:


September

30, 2015

December 31,

2014

September 30,

2015

December 31,

2014

Exclusive funds

Commitment transactions (i)

31,187

311,315 826,953 360,237

Bank certificate of deposits - CDB (ii)

7,958

64,424 207,904 74,547

Títulos públicos 41 - 1,062 -

39,185 375,739 1,035,919 434,784

Bank investments

Bank certificate of deposits - CDB - - 171,899 222,570

Commitment transactions - - 513,128 717,472

Other financial investments - - 2,450 44,024

- - 687,477 984,066

39,185 375,739 1,723,396 1,418,850

(i) These refer to purchases of assets, mainly government securities, with the commitment to repurchase at a rate

previously established by the parties, generally with a one-day term.

(ii) These refer mainly to Bank Deposit Certificates - CDBs, issued by Brazilian financial institutions with original

maturities of 90 days or less or for which there are no penalties or other restrictions for early redemption.

5 Trade receivables Consolidated

September 30,

2015 December 31,

2014

Domestic – Brazilian Reais 919,430 862,221

Export – Foreign currency 20,913 20,615

Allowance for doubtful accounts (41,279) (26,113)

899,064 856,723

Current 862,131 822,424

Non-current 36,933 34,299





35

6 Other trade receivables

Parent Company

Consolidated

September 30,

2015

December 31,

2014

September 30,

2015

December 31,

2014

Exxon Mobil financial assets (a) - - - 332,405

Receivable from sale discontinued

operations (b) 76,445 107,775 76,445 107,775

76,445 107,775 76,445 440,180

Current 76,445 69,683 76,445 69,683

Non Current - 38,092 - 370,497

(a) The subsidiary Cosan Lubrificantes e Especialidades S.A. was notified by the Brazilians Federal

Revenue Service, on September 1, 2015, on the exclusion of tax installments due to the previously made

deposits, Thus, the account receivable was offset to the balance in the same amount of taxes payables,

related to the collection of tax debts included in the special program installment of federal taxes (“REFIS

IV”) of the ExxonMobil Brazil Holdings BV‟s (ExxonMobil) responsibility, former owner of the

ExxonMobil brand in Brazil;

(b) Receivable from the sale of Cosan Alimentos. The amount will be received in November 2015 and

the account is updated monthly by CDI or Selic rates.





36

7 Related parties

a) Receivables from and payables to related parties are as follows:


September

30, 2015

December

31, 2014

September

30, 2015

December

31, 2014

Current Asset

Commercial operations

Cosan Limited 999

668 999 668

Cosan Lubrificantes e Especialidades S.A. 6,318 3,146 - -

Radar Propriedades Agricolas S.A. 653 835 - -

Cosan Logistica S.A 165 - 165 -

ALL América Latina Logística S.A - - 4,609 -

Raízen Energia S.A. 14,357

9,838 19,855 13,281

Raízen Combustíveis S.A. 269

153 274 2,433

Aguassanta Participações S.A. 6,344 6,340 6,344 6,340

Rumo Logística Operador Multimodal 5,049 3,342 5,414 3,705

Other 726 930 4,174 500

34,880 25,252 41,834 26,927

Corporate operation / Agreements


3,388 13,028 3,388

13,028 3,388 13,028 3,388

Financial operations

Cosan Lubrificantes e Especialidades - 773 - -

Raízen Combustíveis S.A. -

- 1,165 1,319

Cosan Biomassa S.A 4 - - -

Cosan Limited -

- 29,885 19,753

4 773 31,050 21,072

47,912 29,413 85,912 51,387

Non-current assets


Tellus Brasil Participações S.A. 5,333 - 10,562 -

Novvi LLC - - 16,023 -

Other 5,542 5,115 172 7,418

10,875 5,115 26,757 7,418

Preferred shares


104,984 89,763 104,984

Raízen Combustíveis S.A. -

15,126 - 15,126

89,763 120,110 89,763 120,110


Rezende Barbosa 84,995

84,996 85,023 84,999

84,995 84,996 85,023 84,999

185,633 210,221 201,543 212,527





37


September

30, 2015

December

31, 2014

September

30, 2015

December

31, 2014

Current liabilieites


Raízen Energia S.A. 43,257 11,038 46,412 14,264

Advances from port services - - - 16

Shared expenses 43,257 11,038 46,412 14,248

Cosan Biomassa S.A. 216,982 142,569 - -

Radar Propriedades Agricolas S.A. 516 2,245 - -

Rumo Logistica Operador Multimodal S.A. 1,554 1,486 1,586 1,572

Cosan Lubrificantes e Especialidades 217 217 - -

Raízen Combustíveis S.A. 3,884 530 4,097 1,238

Other 105 773 109 119

266,515 158,858 52,204 17,193

Corporate operations / Agreements

Raizen Combustiveis S.A. 7,810 11,402 7,810 11,402


74,104 96,622 74,104 101,414

Financial Operations

Cosan Overseas Limited 15,170 1,351,838 - -

Cosan Luxembourg S.A. 53,378 61,812 - -

Raízen Energia S.A. - - 2,785 -

Shell Brazil Holding B.V. - - - 3,820

Other - 22 - 22

68,548 1,413,672 2,785 3,842

409,167 1,669,152 129,093 122,449

Non-current liabilities


Cosan Overseas Limited 2,000,355 - - -

Cosan Luxembourg S.A. 2,790,954 1,888,535 - -

4,791,309 1,888,535 - -





38

b) Related party transactions are as follows:

Parent Company

July 1, 2015 to

September 30,

2015

January 1, 2015

to September

30, 2015

July 1, 2014 to

September 30,

2014 (Restated)

January 1, 2014

to September

30, 2014

(Restated)

Shared income

Aguassanta Participações S.A. 114 331 115 339

Cosan Biomassa S.A. 179 552 427 1,248

Radar Propriedades Agrícolas S.A. 888 2,925 725 2,118

Cosan Logística S.A. 3,908 6,621 2,440 7,221

Cosan Lubrificantes e Especialidades S.A 2,033 7,514 3,233 9,552

Raízen Energia S.A. (876) (2,858) (538) (3,573)

6,246 15,085 6,402 16,905

Financial result

Cosan Lubrificantes e Especialidades - 28 20 752

Cosan Limited 219 331 62 27

Cosan Overseas Limited (628,102) (971,979) (228,288) (189,297)

Raízen Energia S.A. 680 1,910 679 1,902

Outros 103 289 54 180

(627,100) (969,421) (227,473) (186,436)

Consolidated

July 1, 2015 to

September 30,

2015

January 1, 2015

to September

30, 2015

July 1, 2014 to

September 30,

2014 (Restated)

January 1, 2014

to September

30, 2014

(Restated)

Product sales


Cosan Logistica S.A 11,476 20,546 - -

Raízen Combustíveis S.A. 3,776 11,270 - -

21,228 45,790 5,964 9,737

Purchase of goods / Inputs

Raízen Energia S.A. (1,563) (1,630) (61) (66)

Raízen Combustíveis S.A. (119) (119) - (354)

(1,682) (1,749) (61) (420)

Land lease


14,352 43,631 14,300 39,950

Shared income (expanse)

Aguassanta Participações S.A. 114 331 115 339

Cosan Logística S.A. 3,908 6,621 - 2,581

Raízen Energia S.A. (9,323) (28,121) (8,836) (14,207)

(5,301) (21,169) (8,721) (11,287)

Financial result

Usina Santa Luiza (17) (17) (61) (136)

Cosan Limited 238 350 62 27

Cosan Logísitica S.A 508 508 - -

Raízen Energia S.A. 680 1,910 679 1,902

Outros (33) (130) - -

1,376 2,621 680 1,793





39

c) Officers’ and directors’ compensation

Key management includes directors (executive and non-executive) and members of the board.

The compensation paid or payable to key management for their services is shown below:

July 1, 2015

to September

30, 2015

January 1,

2015 to

September

30, 2015

July 1, 2014

to September

30, 2014

(Restated)

January 1,

2014 to

September

30, 2014

(Restated)

Regular compensation 4,226 20,010 5,120 17,015

Stock option expense 2,742 8,228 2,563 7,689

Bonuses and other variable compensation 83 10,511 - 14,803

7,051 38,749 7,683 39,507





40

8 Equity method investments

a) Parent Company

Shares issued

by the

investee

Shares held

by Cosan

Cosan

ownership

interest (%)

At December

31, 2014

Equity

income of

investee

Equity

method

adjustments

Dividends

Capital

incrase /

Decrease

Other At September

30, 2015

Equity income

of investee

September 30,

2015 (Restated)

Subsidiaries

Companhia de Gás de São Paulo –

“COMGÁS” 124,009,308 75,261,249 61.33 3,760,508 242,987 - (187,587) - (1,944) 3,813,964 243,313 Cosan Biomassa 149,289,282 149,289,282 100 131,643 (6,194) - - 89,569 - 215,018 (7,352)

Cosan Global 1 1 100 60,875 131,044 - - 11,029 - 202,948 9,403

Cosan Investimentos e Participações S.A. 3,778,868,643 3,778,868,643 100 5,528,606 322,439 (40,871) - - - 5,810,174 91,840

Cosan Lubrificantes e Especialidades

S.A. 290,441 290,437 100 194,888 (180,073) 640 - - - 15,455 17,105 Cosan Luxembourg S.A. 500,000 500,000 100 12,542 222,262 - - - - 234,804 (34,851)

Radar II Propriedades Agrícolas S.A. 830,690,258 539,979,397 65 627,245 10,905 584 - - - 638,734 38,327

Radar Propriedades Agrícolas S.A. 21,148,989 4,001,167 18.92 611,039 9,204 1,045 - - - 621,288 10,208 Other - - - 5,268 (12,638) (65,920) - 105 (337) (73,522) (16,220)

Associates Tellus Brasil Participações S.A (a) 65,957,282 33,638,214 51 94,506 8,235 (429) - - (5,333) 96,979 3,706

Janus Brasil Participações S.A. 1,364,827 689,685 51 13,063 588 - - 17,402 - 31,053 -

Total 11,040,183 748,759 (104,951) (187,587) 118,105 (7,614) 11,606,895 355,479





41

b) Consolidated

Issued shares

of the investee

Number of

shares held

by Cosan

Percentage

of interest

(%)

Balance at

December

31, 2014

Equity

income of

investees

Equity

valuation

adjustments

Dividends

Capital

increase

Other

Balance at

September

30, 2015

Equity

income of

investees

September

30, 2014

(Restated)

Tellus Brasil Participações Ltda.(a) 65,957,282 33,638,214 1 51.00 1 94,506 8,264 (429) (597) - (5,333) 96,411 3,706

Novvi Limited Liabilitie Company 200,002 100,001 1 50.00 1 14,522 (9,497) 4,034 - - - 9,059 (4,997)

Janus Brasil Participações S.A. - - 51.00 13,063 588 - - 17,402 - 31,053 - Rota 4 Participações S.A. - - 100.00 - - - - 5 - 5 -

Vertical UK LLP - - 1 50.00 1 7,072 (1,526) 2,767 - - - 8,313 474

Other investments - - 1 - 1 1,515 (568) - - - 719 1,666 (1,885)

Total 130,678 (2,740) 6,372 (597) 17,407 (4,614) 146,506 (2,702)

c) Non-controlling interest:

Issued shares

of the

investee

Number of

shares held by

non-controlling

Ownership

percentage of

non-controlling

interest (%)

At December

31, 2014

Equity in income

of investee of non-

controlling

Equity

method

adjustments

Dividends

Other

At

september

30, 2015

Companhia de Gás de São Paulo -

"COMGÁS" 124,009,308 1 48,748,059 1 38.67 1 2,111,578 154,500 - (121,511) 2,430 2,146,997 Elimination of participation Radar II in Radar - 1 - 1 - 1 (498,944) - - - - (498,944)

Radar II Propriedades Agrícolas S.A. 830,690,258 1 290,710,861 1 35.00 1 337,743 5,919 214 - - 343,876

Radar Propriedades Agrícolas S.A. 21,148,989 1 17,147,822 1 81.08 1 1,680,620 31,533 3,578 - - 1,715,731

Total 3,630,997 191,952 3,792 (121,511) 2,430 3,707,660





42

9 Investment in jointly controlled entities

Investments in jointly controlled entities had the following change in the period:

Parent Company

Raízen

Combustíveis

S.A. Raízen Energia

S.A. Total Shares issued by investee 3,303,168,484 5,902,595,634 - Shares held by Cosan 1,651,584,242 2,951,297,817 - Cosan ownership interest (%) 50 50 - Equity in earnings (losses) of jointly controlled entities 208,503 130,327 338,830 At December 31, 2014 1,094,202 1,848,182 2,942,384 Equity in earnings (losses) of jointly controlled entities (32,582) (59,636) (92,218) At September 30, 2015 1,061,620 1,788,546 2,850,166

Consolidated

Raízen

Combustíveis

S.A. Raízen Energia

S.A. Total Shares issued by investee 3,303,168,484 5,902,595,634 - Shares held by Cosan 1,651,584,242 2,951,297,817 - Cosan ownership interest (%) 50 50 - Equity in earnings (losses) of jointly controlled entities 312,387 152,246 464,633 At December 31, 2014 3,218,466 5,186,036 8,404,502 Equity in earnings (losses) of jointly controlled entities 388,396 (111,584) 276,812 Equity method adjustments - (40,871) (40,871) Dividends (343,246) - (343,246)

(18,000) - (18,000) At September 30, 2015 3,245,616 5,033,581 8,279,197

Statement of financial position and statement of profit or loss of jointly controlled entities are

disclosed in the operating segment note (Note 3).

The statement of cash flows and comprehensive income of the jointly controlled entities Raízen

Energia and Raízen Combustíveis for the period ended September 30, 2015 and 2014 are

presented below:





43

Raízen Energia S.A. Raízen Combustíveis S.A.

January 1, 2015 to

September 30, 2015

January 1, 2014 to

September 30, 2014

January 1, 2015 to

September 30, 2015

January 1, 2014 to

September 30, 2014

Cash flow

Operating activities 2,780,323 1,819,761 1,584,184 501,581

Investing activities (1,423,512) (1,942,062) (426,622) 123,902

Financing activities (528,612) 623,565 (1,110,224) (755,488)

Increase in cash

and cash equivalents 828,199 501,264 47,318 (130,005)

Other comprehensive

income (losses) (306,906) 155,269 803,162 686,172

10 Investment property and Assets held for sale

Investment property Assets held for sale Total

At December 31, 2014 2,641,978 25,089 2,667,067

Change in fair value 25,597 (2,435) 23,162

Transfers (i) (273,708) 282,687 8,978

Disposals (ii) (7,935) (16,046) (23,981)

At September 30, 2015 2,385,932 289,295 2,675,227

(i) Refers to the transfer of the Property to properties for investment.

(ii) Reclassified to investment property due to commercial disagreements during the negotiations,

relating to land, land improvements in buildings and building.

Investment properties include farms located in the Southeast, Midwest and Northeast regions of

Brazil, which are leased to third parties and jointly controlled entities. The leases have an average

term of 18 years for the cultivation of sugarcane and 10 years for beans.





44

11 Property, plant and equipment

Consolidated

Parent

Company

Land, buildings

and

improvements

Machinery,

equipment and

facilities

Construction in

progress Other Total Total

Cost

At December 31, 2014 171,129 76,022 156,508 32,240 435,899 33,378

Additions - - 63,520 - 63,520 2,046

Disposals - (60) - (204) (264) (8)

Transfers (i) (3,940) 16,893 (45,931) 6,439 (26,539) (1,661)

At September 30, 2015 167,189 92,855 174,097 38,475 472,616 33,755

Depreciation

At December 31, 2014 (35,409) (34,825) - (14,230) (84,464) (6,714)

Additions (3,756) (4,812) - (3,697) (12,265) (1,719)

Disposals - 36 - 2 38 2

Transferências (i) 7,448 257 - 24 7,729 -

At September 30, 2015 (31,717) (39,344) - (17,901) (88,962) (8,431)

At December 31, 2014 135,720 41,197 156,508 18,010 351,435 26,664

At September 30, 2015 135,472 53,511 174,097 20,574 383,654 25,324

(i) Refer to intangible transfers due to the capitalization of these assets.





45

12 Intangible assets

Consolidated Parent Company

Goodwill

Concession

intangible asset -

COMGÁS

Improvements in

public concessions

and operation

licenses

Trademarks

Related

customer

relationships

Other Total Total

Cost

At December 31, 2014 603,505 8,790,010 (5,414) 252,474 862,324 223,294 10,726,193 9,513

Additions - 310,278 - - 62,970 19,513 392,761 -

Disposals - (8,225) - - (5,949) - (14,174) (1)

Transfers (i) - 131 - - 14 9,672 9,817 1,661

At September 30, 2015 603,505 9,092,194 (5,414) 252,474 919,359 252,479 11,114,597 11,173

Amortization

At December 31, 2014 - (636,730) 5,414 (136,962) (425,282) (106,513) (1,300,073) (3,171)

Additions - (243,561) - (17,120) (116,674) (31,323) (408,678) (1,268)

Disposals - 5,541 - - 2,861 - 8,402 -

Transfers (i) - - - - - 14 14 -

At September 30, 2015 - (874,750) 5,414 (154,082) (539,095) (137,822) (1,700,335) (4,439)

At December 31, 2014 603,505 8,153,280 - 115,512 437,042 116,781 9,426,120 6,342

At September 30, 2015 603,505 8,217,444 - 98,392 380,264 114,657 9,414,262 6,734

(i)Refer to intangible transfers due to the capitalization of these assets.

Capitalization of borrowing costs

Capitalized borrowing costs for the period ended on September 30, 2015, amounted to R$ 14,766 (R$ 15,787 for the period ended on September 30,

2014). The weighted average interest rate used to capitalize borrowing costs on the balance of construction in progress, was 11.26% p.a. for the period

ended on September 30, 2015 (9.04% p.a. for the period ended on September 30, 2014).





46

Intangible assets (excluding goodwill)

Annual rate of

amortization - %

September

30, 2015

December

31, 2014

Concession intangible asset - COMGÁS (a) Over the concession term 8,217,444 8,153,280

Trademarks

Mobil 10.00 74,188 91,308

Comma - 24,204 24,204

98,392 115,512

Relationship with customers:

Comgás 20.00 327,315 375,118

Lubrificantes 6.00 52,949 61,924

380,264 437,042 Other

Licença de software 20.00 88,271 81,408

Other 15.00 26,219 35,373

117,490 116,781

Total 8,813,590 8,822,615

(a) Refers to intangible asset for the public gas distribution service, which represents the

right to charge users for the supply of gas and it is comprised of concession: (i) the

concession rights recognized in the business combination and (ii) concession assets.

Impairment testing of cash-generating units containing goodwill

During the period ended on September 30, 2015, no impairment indicators were identified that

would triggers the need for an impairment test.





47

13 Loans, borrowings and debentures

Interest Parent company Consolidated

Description(i)

Index(ii)

Annual

interest(iii)

September

30, 2015

December

31, 2014

Septembe

r 30, 2015

December

31, 2014

Matures

Senior Notes Due 2023 US$ 5.00% - - 1,889,802 1,352,796 Mar-2023

Senior Notes Due 2018 Pré-fixado 9.50% - - 855,433 874,494 Mar-2018

Perpetual Notes US$ 8.25% - - 2,011,523 1,344,760 -

BNDES TJLP 8.60% - - 202,656 834,565 Oct-2020

BNDES Selic 10.70% - - 305,816 274,000 Oct-2020

BNDES TJ462 7.94% - - 849,295 288,209 Oct-2018

EIB US$ + Libor 8.70% - - 867,125 691,463 Sep-2021

Foreign loans GBP + Libor 4.27% - - 328,285 224,047 Dec-2019

FINEP Pré-fixado 5.00% - - 144,088 165,032 Nov-2020

Resolution 4131 US$ + Libor 10.58% - - 440,613 466,494 Mar-2018

Resolution 4131 US$ + Libor 1.67% 385,365 266,006 469,703 266,006 Nov-2015

Resolution 4131 US$ 1.20% - - - 29,338 Feb-2017

FINAME Pré-fixado 5.50% - - 179 224 Nov-2022

Other - - - 47,142 7,559 -

385,365 266,006 8,411,661 6,818,987 Debentures

Non-convertible

debentures

Fixed rate +

IPCA 15.16% - - 460,385 447,386 Sep-2020

Non-convertible

debentures CDI 15.26% - - 127,781 131,229 Sep-2019

- - 588,166 578,615

385,365 266,006 8,999,827 7,397,602

Current 385,365 266,006 1,147,344 856,334

Non-current - - 7,852,483 6,541,268

i) At September 30, 2015, except where otherwise indicated.

Covenants

The Company and its subsidiaries are subject to certain restrictive financial covenants set forth in

existing loans, financing and debenture agreements in relation to certain financial and

nonfinancial indicators. For the period ended on September 30, 2015, Cosan, its subsidiaries were

in compliance with all financial covenants.





48

14 Trade payables


September 30,

2015

December 31,

2014

September 30,

2015

December 31,

2014

Natural gas suppliers - - 1,551,302 1,043,998

Judicial deposit (i) - - (294,976) (294,976)

Materials and services suppliers 898 2,528 289,013 222,148

898 2,528 1,545,339 971,170

(i) In February 25, 2014, COMGAS obtained a preliminary injunction against PETROBRAS,

which assured the Company the right to provide a deposit of the controversial monthly

value due to PETROBRAS, corresponding to the difference in prices between (i) the price

in the TCQ Contract for the Supply of Gas signed between Comgas and Petrobras and (ii)

the price under the Firm Contract signed between Petrobras and Gas Brasiliano

Distribuidora S.A. , whereas the obligation of equality assumed before the Petrobras Group

with the State Regulatory Agency - ARSESP. Initially, the security was provided by bank

deposits which, subsequently, after the preliminary injunction was granted by the STJ in

November 06, 2014, were replaced by a letter of guarantee issued by a first-tier financial

institution.

Therefore, the controversial values calculated based on the supply of gas from January to

September 2014 were assured in a court decision upon a judicial deposit and the

controversial values calculated found as of the supply of gas from October 2014 to

September 2015 began to be secured by a bank surety. The guaranteed value in the judicial

deposit is R$ 294,976 and the guaranteed value through surety is of R$ 528,028.

15 Other taxes payables Parent Company Consolidated

September 30,

2015

December 31,

2014

September 30,

2015

December 31,

2014

ICMS – State VAT 7 - 79,054 66,752

IPI - - - -

INSS - Social security 564 667 815 1,052

PIS - Revenue tax 46 1,802 2,530 2,121

COFINS- Revenue tax 276 8,298 12,330 16,784

Tax Amnesty and Refinancing Program - REFIS (I)

186,894

191,396 186,894 523,801

ITBI - - 8,963 -

Other 371 597 10,960 24,490

188,158 202,760 301,546 635,000

Current 22,747 200,600 136,135 300,435

Non-Current 165,411 2,160 165,411 334,565

(a) The portion of R$ 350,301 related to tax debits included in the Brazilian Government‟s

tax amnesty and refinancing program (“Refis IV”), was offset with the respective

recovery balance, as mentioned in 6.





49

16 Income tax and social contribution

a) Reconciliation of income and social contribution tax expenses:

Parent Company

July 1, 2015 to

September 30,

2015

January 1, 2015

to September

30, 2015

July 1, 2014 to

September 30,

2014 (Restated)

January 1, 2014

to September 30,

2014 (Restated)

(Loss) profit before taxes (149,849) (290,662) (102,668) 97,258

Income tax and social contribution at nominal rate

(34%) 50,949 98,825 34,907 (33,068)

Adjustments to determine the effective rate

Equity method investments (non taxable income) 109,314 223,224 57,958 236,255

Non-deductible expenses (donations, gifts, etc.) (85) (476) 193 (49)

Stock options (932) (2,797) (872) (2,614)

Differences in tax rates on earnings / losses

of overseas companies (22,037) (33,587) (2,664) 11,042

Other (703) (2,107) (5) (2,202)

136,506 283,082 89,517 209,364

Current income tax and social contribution - - - 3,422

Deferred income tax and social contribution 136,506 283,082 89,517 205,942

Consolidated

July 1, 2015 to

September 30,

2015

January 1, 2015

to September

30, 2015

July 1, 2014 to

September 30,

2014 (Restated)

January 1, 2014

to September 30,

2014 (Restated)

Profit (loss) before taxes 77,691 154,331 22,135 499,249

Income tax and social contribution at nominal rate

(34%) (26,415) (52,473) (7,526) (169,744)

Adjustments to determine the effective rate

Equity method investments (non taxable income) 9,923 93,185 25,772 157,057

Non-deductible expenses (donations, gifts, etc.) (5,273) (19,026) 99 (3,155)

Stock options (932) (2,797) (871) (2,614)

Interest capital - benefit (12,818) (18,938) - (6,970)

Out of period carryforward tax losses (reversals) 1,723 1,586 (1,085) (2,490)

Differences in tax rates on earnings / losses

of overseas companies 14,723 17,271 9,140 7,612

Differences in tax rates on entities

Under Brazilian presumed profits tax regime

2,005 12,611 8,046 28,652

Other (991) (1,378) 1,655 (1,025)

(18,055) 30,041 35,230 21,162

Current income tax and social contribution (11,393) (118,882) (38,792) (92,061)

Deferred income tax and social contribution (6,662) 148,923 74,022 113,223





50

b) Deferred income tax assets and liabilities

Parent Company

September 30, 2015 December 31, 2014

Basis IRPJ CSLL Total

Tax loss carryforwards:

Income tax loss carryforwards 725,187 181,297 - 181,297 136,247

Social contribution tax loss carryforwards 736,611 - 66,295 66,295 50,077

Temporary differences:

Foreign currency gains/losses 2,491,512 622,878 224,236 847,114 269,164

Tax deductible goodwill (64,185) (16,046) (5,777) (21,823) (21,823)

Provision for judicial demands 176,987 44,224 15,921 60,145 67,291

Allowance for doubtful accounts 20,902 5,226 1,881 7,107 7,982

Profit sharing 14,076 3,519 1,267 4,786 5,255

Derivatives instrumets unrealized gains (1,467,308) (366,827) (132,058) (498,885) (123,390)

Unrealized gain on sale of investments (35,653) (8,913) (3,209) (12,122) (18,772)

Other temporary differences (95,225) (23,806) (8,570) (32,376) 1,227

Gain on formation of Joint Venture (3,338,342) (834,586) (300,451) (1,135,037) (1,135,037)

Business combination - Other effects (36,086) 9,021 3,249 12,270 -

Other - - - - (42,532)

Total net liability (384,013) (137,216) (521,229) (804,311)

Consolidated


Basis IRPJ CSLL Total

Tax loss carryforwards:

Income tax loss carryforwards 1,464,984 366,246 - 366,246 318,595

Social contribution tax loss carryforwards 1,483,625 - 133,526 133,526 116,372

Temporary differences:

Foreign currency gains/losses 2,874,126 718,531 258,671 977,202 303,488

Tax deductible goodwill 484,129 121,032 43,572 164,604 289,705

Provision for judicial demands 322,772 80,693 29,049 109,742 179,166

Allowance for doubtful accounts 172,877 43,219 15,559 58,778 45,784

Profit sharing 18,898 4,725 1,701 6,426 7,898

Derivatives instrumets unrealized gains (1,543,825) (385,956) (138,944) (524,900) (126,352)

Unrealized gain on sale of investments (35,653) (8,913) (3,209) (12,122) (18,772)

Other temporary differences 316,567 79,142 28,491 107,633 26,073

Property, plant and equipment (300,056) (75,014) (27,005) (102,019) -

Gain on formation of Joint Venture (3,338,342) (834,586) (300,451) (1,135,037) (1,135,036)

Unrealized gains on investment properties (1,778,250) (35,565) (19,205) (54,770) (74,801)

Assets held for sale (242,596) (4,852) (2,620) (7,472) (773)

Concession contract 49,405 12,351 4,446 16,797 15,057

Regulatory asset 242,654 60,664 21,839 82,503 82,503

Gains or losses on actuarial liabilities 267,067 67,629 24,347 91,976 87,595

Business combination - Property and equipment - - - - (9,438)

Business combination - Intangible assets (3,737,093) (934,273) (336,338) (1,270,611) (1,305,599)

Business combination – Other fair value adjustments (188,444) (47,111) (16,960) (64,071) (24,513)

Other (385,737) (96,434) (34,716) (131,150) (106,340)

Total net liability (868,472) (318,247) (1,186,719) (1,329,388)

Deferred income tax – Assets 296,203 213,288

Deferred income tax - Liabilities (1,482,922) (1,542,676)

Total net deferred taxes (1,186,719) (1,329,388)





51

c) Changes in deferred income taxes (net):

Controladora Consolidado

At December 31, 2014 (804,311) (1,329,388)

Deffered tax recorded in proft or loss (i) 283,082 148,923

Other comprehensive income - (2,955)

Other - (3,299)

At September 30, 2015 (521,229) (1,186,719)

(i) Deferred income tax and social contribution arising from the review of the calculations of previous years, with the

application of life rate provided for in the income tax legislation. The balance will be amortized over the remaining

term of the concession pursuant to Article 69 of Law 12,973/14.

17 Provision for legal proceedings

Provision for legal proceedings


September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014

Tax 73,626 72,614 369,032 341,213

Civil 63,108 48,081 157,010 139,256

Labor 134,832 132,677 165,924 163,932

271,566 253,372 691,966 644,401





52

Judicial deposits as at September 30, 2015, and December 31, 2014, are as follow:

Judicial deposits


September 30,

2015

December 31,

2014

September 30,

2015

December 31,

2014

Tax 207,898 199,927 349,121 314,320

Labor 13,524 12,766 18,029 28,124

Civil and enviromental 25,591 23,546 38,478 46,270

247,013 236,239 405,628 388,714

Changes in provision for judicial demands:

Parent Company

Tax Civil Labor Total

At December 31, 2014 72,614 48,081 132,677 253,372 Provisions 2,096 6,637 23,206 31,939

Settlement / Write-Offs (7,154) (6,114) (39,098) (52,366)

Monetary variation 6,070 14,504 18,047 38,621

At September 30, 2015 73,626 63,108 134,832 271,566

Consolidated

Tax Civil Labor Total

At December 31, 2014 341,213 139,256 163,932 644,401 Provisions 9,508 10,643 31,432 51,583

Settlement / Write-Offs (4,178) (16,840) (46,652) (67,670)

Transfers 7,318 (7,318) - -

Monetary variation 15,171 31,269 17,212 63,652

At September 30, 2015 369,032 157,010 165,924 691,966





53

a) Tax claims

Legal proceedings in relation to tax payments, as at September 30, 2015 and December 31, 2014,

are as follow:


September

30, 2015

December 31,

2014

September

30, 2015

December 31,

2014

Compensation with FINSOCIAL -

- 251,491 241,739

INSS 47,643

44,332 56,471 46,660

ICMS credits 21,208

22,931 24,328 24,231

PIS and COFINS - 873 3,830 4,704

IPI 1,085 1,027 1,085 1,027

IRPJ and CSLL 329 329 329 329

Others 3,361 3,122 31,498 22,523

73,626 72,614 369,032 341,213

b) Civil and labor

The Company and its subsidiaries are parties to a number of civil legal claims related to (i)

indemnification for material and moral damages, (ii) public civil claims related to burning of

sugarcane stubble, and (iii) environmental matters.

The Company and its subsidiaries are also parties to a number of labor claims filed by former

employees and service providers challenging, among other things, unpaid overtime, night shift

premiums and risk premiums, employment guarantees, and the reimbursement of withholdings

from payroll such as social contributions and trade union charges, among other.

Judicial claims deemed as possible losses, and therefore not accrued

a) Tax claims


September 30,

2015

December 31,

2014

September 30,

2015

December 31,

2014

ICMS - State VAT 1,321,221

1,252,291 1,656,227 1,572,934

IRRF - Whithholding tax 2,997

1,161 713,672 656,087

Federal income taxes 315,743

296,356 783,990 750,500

INSS - social security 533,450

500,126 568,917 529,763

IPI - Excise tax 419,908

385,306 479,941 441,707

PIS and COFINS - Revenue taxes 666,145

609,154 691,474 680,065

Compensation with IPI - IN 67/98 122,284

118,865 122,284 118,865

Other 529,122 471,326 738,468 632,090

3,910,869 3,634,585 5,754,973 5,382,011





54

b) Civil and labor


September

30, 2015

December 31,

2014

September

30, 2015

December 31,

2014

Civil 481,254 392,870 1,044,434 1,100,612

Labor 337,726 326,298 358,238 347,615

818,980 719,168 1,402,672 1,448,227

18 Preferred non-controlling interests payable

On June 27, 2014, Cosan transferred all its common shares in Raízen Energia S.A. and Raízen

Combustíveis S.A. and debts, net of cash, totaling nearly R$1,979,519, represented by debentures

and a working capital facility, to its subsidiary Cosan Investimentos e Participações S.A.

On June 27, 2014, Cosan executed an Investment and Other Terms Agreement with Fundo de

Investimentos em Participações Multisetorial Plus II (“FIP Multisetorial Plus II”), and with Razac

Fundo de Investimentos em Participações (“FIP Razac”). Therewith, FIP Multisetorial and FIP

Razac subscribed non-voting preferred shares issued by Cosan Investimentos e Participações S.A.

for the amount of R$2,000,000, accounted for as financial liabilities in these financial statements.

The financial liability shall be measured taking into account the value of the initial investment

plus the updated CDI deducted from dividends paid (also updated by CDI). The Company has the

obligation to make payment to the Investors in case they exercise the option to sell the investment

in 2021.





55

19 Equity

a. Common stock

Subscribed and fully paid capital as of September 30, 2015 and December 31, 2014 is

represented by 407,214,353 common shares, without par value.

On April 30, 2015 was approved by the minutes of the General Meeting, the capital increase of R

$ 190,494 without issuing new shares, upon the part of the existing balance conversion in the

statutory reserve account.

b. Treasury shares

The Company holds 1,357,539 treasury shares as of September 30, 2015 with a market value of

R$ 20.13 (R$ 28.85 on December 31, 2014).

c. Equity valuation adjustment

December 31,

2014

Comprehensive

income

September 30,

2015

Foreign currency translation differences - equity - accounted

investee (23,593) (65,361) (88,954)

Gain (loss) on cash flow hedge (10,686) (40,789) (51,475)

Revaluation of investment property reclassified from

property, plant and equipment 190,735 - 190,735

Defined benefit plan actuarial gain (losses) 23,467 - 23,467

Available for sale financial assets from securities 22,572 4,990 27,562

Total 202,495 (101,160) 101,335

Attributable to:

Owner of the Cosan 175,298 (104,952) 70,346

Non-controlling interests 27,197 3,792 30,989

December 31,

2013

Comprehensive

income

September 30,

2014

Foreign currency translation differences - equity - accounted

investee (240) (16,659) (16,899)

Gain (loss) on cash flow hedge 43,385 (54,921) (11,536)

Revaluation of investment property reclassified from

property, plant and equipment 190,735

-

190,735

Defined benefit plan actuarial gain (losses) (7,546) 1,063 (6,483)

Available for sale financial assets from securities 16,126 1,591 17,717

Total 242,460 (68,926) 173,534

Attributable to:

Owner of the Cosan 221,351 (70,359) 150,992

Non-controlling interests 21,109 1,433 22,542





56

20 Earnings per share

Basic

July 1, 2015

to

September

30, 2015

January 1,

2015 to

September

30, 2015

July 1, 2014

to September

30, 2014

(Restated)

January 1, 2014

to September

30, 2014

(Restated)

Numerator Net income for the year from continued operations (13,343) (7,580) (13,151) 306,060

Net income for the year from discontinued operations - - 28,384 69,442

Denominator

Weighted average number of common share 405,856,814 405,856,814 405,856,814 405,856,814

Basic net income per share - continued operations (R$0.03) (R$0.02) (R$0.03) R$0.75

Basic net income per share - discontinued operations - - R$0.07 R$0.18

(R$0.03) (R$0.02) R$0.04 R$0.93

Diluted

July1,2015t

oSeptember

30,2015

January1,20

15toSeptem

ber30,2015

July1,2014toS

eptember30,2

014(Restated)

January1,2014t

oSeptember30,

2014(Restated)

Numerator

Net income for the year from continued operations (13,343) (7,580) (13,151) 306,060

Net income for the year from discontinued operations - - 28,384 69,442

Denominator

Weighted average number of common share 405,856,814 405,856,814 405,856,814 405,856,814

Potential increase of common share 19,908 471,220 5,096,737 5,096,737

Denominator for diluted earning per share 405,876,722 406,328,034 410,953,551 410,953,551

Basic net income per share - continued operations (R$0.03) (R$0.02) (R$0.03) R$0.74

Basic net income per share - discontinued operations - - R$0.07 R$0.17

(R$0.03) (R$0.02) R$0.04 R$0.91





57

21 Financial results

Parent Company

July 1, 2015 to

September 30,

2015

January 1, 2015

to September

30, 2015

July 1, 2014

to September

30, 2014

(Restated)

January 1, 2014

to September

30, 2014

(Restated)

Financial expense

Interest expense on loan (40,278) (125,031) (40,840) (200,899)

Interest expense (69,102) (210,526) (51,819) (111,187)

Indexation charges (1,020) (1,020) - -

Bank fees (4,004) (13,575) (5,750) (42,257)

(114,404) (350,152) (98,409) (354,343)

Financial income

Interest income 44,863 77,605 6,960 63,541

Indexation charges 5,598 14,975 3,708 11,938

Indexation charges 143 142 - -

Income from short term investments 8,004 24,934 2,646 8,461

58,608 117,656 13,314 83,940

Foreign exchange effects, net(I) (1,130,449) (1,706,861) (298,747) (131,844)

Derivative income (losses)

Commodities derivatives - -

Exchange rate and interest rate

derivatives 757,549 1,209,992 154,348 30,351

757,549 1,209,992 154,348 30,351

(428,696) (729,365) (229,494) (371,896)

(I) Includes gains (and losses) on foreign exchange rates relating to assets and liabilities denominated in foreign currency.





58

Consolidated

July 1, 2015 to

September 30,

2015

January 1, 2015

to September

30, 2015

July 1, 2014

to September

30, 2014

(Restated)

January 1, 2014

to September

30, 2014

(Restated)

Financial expense

Interest expense on loan (112,577) (413,227) (162,428) (519,126)

Interest expense (ii) (91,719) (254,862) (56,236) (62,274)

Indexation charges (43,549) (102,127) (15,222) (45,762)

Taxes on financial income (6,318) (6,319) - -

Bank fees (16,007) (53,148) (14,650) (77,182)

(270,170) (829,683) (248,536) (704,344)

Financial income

Interest income 69,773 100,879 13,391 63,179

Indexation charges 5,601 14,893 3,807 9,792

Other financial income 143 141 - -

Income from short term investments 65,321 163,089 27,710 70,854

140,838 279,002 44,908 143,825

Foreign exchange effects, net(I) (180,793) (641,767) (209,636) (108,077)

Derivative income (losses)

Commodities derivatives (44,176) (44,175) - -

Exchange rate and interest rate

derivatives 150,175 487,022 116,513 58,433

105,999 442,847 116,513 58,433

(204,126) (749,601) (296,751) (610,163)

(I) Includes gains (and losses) on foreign exchange rates relating to assets and liabilities denominated in foreign currency.

(II) In the year 2015 were accounted for interest on income tax and social contribution credit of R $ 51,756, due to changes

in estimates for tax purposes, arising from the review of the calculation bases in 2009 and 2010 applying the lifetime rate

provided for in IN 162/98 for assets belonging to the gas distribution network.currency.





59

22 Other income (expense), net

Parent Company

July 1, 2015 to

September 30,

2015

January 1, 2015

to September 30,

2015

July 1, 2014 to

September 30,

2014 (Restated)

January 1, 2014

to September 30,

2014 (Restated)

Recovery taxes program - - (5,059) (5,059)

Provisions for legal proceedings (14,074) (29,747) (10,026) (29,867)

Costs to operation transactions (59) (101,423) - (115,390)

(Loss) gain on corporate restructuring - - (20) 4,459

Other 1,545 4,557 (3,395) (4,477)

(12,588) (126,613) (18,500) (150,334)

(i) Relates to costs incurred by the Company with lawyers, consultants, business advisors and other related services for certain internal reorganizations

and prospective acquisitions.

Consolidated

July 1, 2015 to

September 30,

2015

January 1, 2015

to September 30,

2015

July 1, 2014 to

September 30,

2014 (Restated)

January 1, 2014

to September 30,

2014 (Restated)

Recovery taxes program - - (5,059) (5,059)

Provisions for legal proceedings (14,431) (32,301) (13,910) (39,735)

(Loss) gain on disposal of non-current

assets (103) (2,762) (2,579) (7,385)

Costs to operation transactions (i) (59) (101,423) (8,822) (124,212)

(Loss) gain on corporate restructuring - - (20) 4,459

Fair value gain of investment properties - 23,162 18,745 63,728

Other 2,180 137 6,136 5,214

(12,413) (113,187) (5,509) (102,990)

(i) Relates to costs incurred by the Company with lawyers, consultants, business advisors and other related services for certain internal reorganizations

and prospective acquisitions.





60

23 Financial Instruments

September

30, 2015

December

31, 2014

Assets

Fair value through profit or loss

Investment securities 214,890 149,735

Derivate financial instruments 2,547,253 880,366

2,762,143 1,030,101

Loans and receivables

Cash and cash equivalents 1,865,000 1,540,192

Trade receivables 899,064 856,723

Related parties 287,455 263,914

Dividends receivable 212,938 36,130

Other receivables 76,445 440,180

3,340,902 3,137,139

Total 6,103,045 4,167,240

Liabilities

Liabilities amortised cost

Loans, borrowings and debentures 4,243,069 3,825,552

Trade payables 1,545,339 971,170

Related parties 129,093 122,449

Contingent consideration - Earn out 133,197 186,649

Dividends payable 15,756 20,347

Tax installments - REFIS 186,894 523,801

Preferred shareholders payable in subsidiaries 2,106,730 1,926,888

8,360,078 7,576,856

Fair value through profit or loss

Loans, borrowings and debentures 4,756,758 3,572,050

Pension and post-employment benefits 317,746 301,764

Derivative financial instruments 756,957 333,435

5,831,461 4,207,249

Total 14,191,539 11,784,105

During the period, there was no reclassification between categories, the fair value through profit

or loss, loans and receivables and financial liabilities at amortized cost presented above.

Risk management structure

As at September 30, 2015 and December 31, 2014, the fair values relating to transactions

involving derivative financial instruments to protect the Company‟s risk exposure were using

observable inputs such as quoted prices in active markets, or discounted cash flows based on

market curves, and are presented below:





61

Notional Fair value

September

30, 2015

December

31, 2014

September

30, 2015

December

31, 2014

P&L

(i)

Exchange rate derivatives

Forward agreements 1,808,948 178,127 294,470 21,250 301,936

Options - 2,202,425 - (8,842) 217,992

1,808,948 2,380,552 294,470 12,408 519,928

Interest rate and exchange rate risk

Swap agreements (interest rate) 679,074 221,560 (69,994) (40,328) (82,570)

Cross currency interest rate swaps 2,163,882 2,368,971 1,565,820 574,851 472,819

2,842,956 2,590,531 1,495,826 534,523 390,249

Total financial instruments 1,790,296 546,931 910,177

Assets 2,547,253 880,366

Liabilities (756,957) (333,435)

(*)These balances equivalent to the notional value in dollars converted to US $ Dollar rate by the September 30, 2015.

(i) The Company recorded in the statement of profit or loss, the net effect of the Senior

Notes 2023 designated for hedge accounting. As a result, the amount of R$ 467,332 is

transferred from the rubric "Derivatives" to "Financial expenses".

Credit risk

In the subsidiary COMGÁS, there is no concentration of credit for major consumers, as no

customer accounts for more than 10% of total sales volumes. COMGÁS is not exposed to such

risk as it costumer base is large and diversified.

Credit risk is managed through specific rules regarding client acceptance, including credit ratings

and limits for customer exposure, including the requirement for a letter of credit from a major

bank and obtaining actual warranties when given credit, when applicable. Management believes

that credit risk is adequately managed through it‟s policy on allowance for doubtful accounts.

The Company and its subsidiaries may acquire exchange rate and interest rate derivative

instruments in the BM&FBovespa, OTC contracts, registered CETIP or even in the international

market, with several banks, within the limits established in the Treasury Policy for each bank.

The credit risk on cash and cash equivalents, loans, financing, debentures and financial

instruments in national and foreign financial institutions are determined using the rating

instruments accepted by the market.

The carrying amount of financial assets represents the maximum credit exposure. The maximum

exposure to credit risk at the reporting date was:





62


Cash and cash equivalents 1,865,000 1,540,192

Investment securities 214,890 149,735

Trade receivables 899,064 856,723

Derivative financial instruments 2,547,253 880,366

Receivables from related parties 287,455 263,914

Other trade receivables 76,445 440,180

Dividends receivable 212,938 36,130

6,103,045 4,167,240

a) Losses on impairment

The Company annually tests its financial assets not classified as financial assets at fair

value through profit or loss, including investments accounted for under the equity

method, to determine whether there is objective evidence of impairment for impairment.

b) Guaratees

Cosan's policy is to provide financial guarantees only to subsidiaries. (Note 13).

Liquid Risk

Liquidity risk is the risk that the Company and its subsidiaries will not be able to meet its

obligations associated with its financial liabilities that are settled with cash payments or other

financial assets. The Company and its subsidiaries manage liquidity risk by ensuring, as much as

possible, the availability of sufficient liquidity to meet its obligations due, under normal and

stress situations, without causing unacceptable losses or risking the Company‟s and its

subsidiaries reputation.

The table below demonstrates the Company‟s non-derivative financial liabilities classified by due

date at September 30, 2015. The amounts disclosed in the table are the contracted undiscounted

cash flows:

September 30, 2015

December

31, 2014

Up to 1

year

1 - 2 years

3 - 5 years

More than

5 years

Total

Total

Loans, borrowings and

debentures (1,556,852)

(1,126,794)

(6,354,859)

(7,697,804)

(16,736,309)

(13,639,709)

Trade payables (1,545,339) - - - (1,545,339) (893,087)

REFIS (22,386) (21,484) (42,968) (100,056) (186,894) (523,801)

(3,124,577) (1,148,278) (6,397,827) (7,797,860) (18,468,542) (15,056,597)





63

Market risk

Market risk is the risk that changes in market prices - such as exchange rates and interest rates -

will affect the Company's earnings or the value of its holdings of financial instruments. The

objective of market risk management is to manage and control exposures to market risks within

acceptable parameters, while optimizing the return.

The Company uses derivatives to manage market risks. All such transactions are conducted

within the guidelines established by the Risk Management Committee. Generally, the Company

seeks to apply hedge accounting to manage the volatility in earnings.

a) Currency risk

On September 30, 2015 and December 31st 2014, the Company and its subsidiaries had

the following net exposure to foreign exchange variations on assets and liabilities

denominated in US dollars (USD) and Brazilian Reais (BRL):


R$ USD R$ USD

Cash and cash equivalents 107,962 27,175 40,782 15,354

Loans, borrowings and debentures (5,922,961) (1,490,841) (4,150,856) (1,562,705)

Contingent consideration - Earn out (48,476) (12,202) (47,340) (17,822)

Derivative financial instruments 6,013,335 1,513,588 4,606,216 1,842,486

Foreign exchange exposure, net 149,860 37,720 448,802 277,313 (*)These balances equivalent to the notional value in dollars converted to US $ Dollar rate by the September 30, 2015.

i. Sensitivity analysis of changes in exchange rates

The probable scenario was defined based on market rates US Dollar on

September 30, 2015, which determines the fair value of derivatives that date.

Stressed scenarios (positive and negative effects, pre-tax) were defined based on

adverse impacts of 25% and 50% in US dollar exchange rates used in the

probable scenario.

Based on financial instruments denominated in US dollars, drawn up on

September 30, 2015, the Company conducted a sensitivity analysis to increase

and decrease in the exchange rate (R $ / US $) of 25% and 50%. The probable

scenario considers the Company's projections for exchange rates at maturity of

operations for companies with real functional currency (positive and negative

pre-tax), as follows:





64

Exchange rate sensitivity analysis (R$/US$)

September

30, 2015

Scenario

25% 50% -25% -50%

At September 30, 2015 3.9729 4.9661 5.9594 2.9797 1.9865

Considering the above scenario, the gains and losses would be affected as

follows:

Variation scenario

Instrument Risk factor Probable 25% 50% -25% -50%

Cash and cash equivalents USD fluctuation 107,962 26,991 53,982 (26,991) (53,982)

Exchange rate derivatives USD fluctuation 1,808,948 519,475 1,038,951 (519,475) (1,038,951)

Exchange rate and

interest derivatives

USD and CDI

fluctuation 2,163,882 951,120 1,902,239 (951,120) (1,902,239)


debentures

USD fluctuation (5,922,961) (1,480,740) (2,961,480) 1,480,740 2,961,480

Contingent

consideration - Earn

out USD fluctuation (48,476) 12,119 24,238 (12,119) (24,238)

Impacts on profit or loss (1,890,645) 28,965 57,930 (28,965) (57,930)


b) Interest rate risk

The Company and its subsidiaries monitor fluctuations in variable interest rates tied to

some debts, especially those linked to the risk of LIBOR, and makes use of derivative

instruments in order to minimize these risks.

i. Sensitivity analysis of changes in interest rates

The sensitivity analysis of loan interest rates, financing and debentures with increase and

decrease of 25% and 50%, are as follows:

September 30, 2015

Exposure interest rate Balance

25%

50% -25% -50%


debentures (8,895,588) (187,297) (374,594) (187,297) (374,594)

Leases (69,994) (29,004) (51,117) 36,897 85,978

Impacts on profit or loss 158,293 323,477 (150,400) (288,616)


i) The rates of CDI and TJLP considered were 12.58% and 6.50%, respectively, and were

obtained from information provided by the market..





65

Fair value of financial instruments

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

September

30, 2015

December 31,

2014

September

30, 2015

December 31,

2014

Assets

Cash and cash equivalents 1,865,000 1,540,192 1,865,000 1,540,192

Investment securities 214,890 149,735 214,890 149,735

Trade receivables 899,064 856,723 899,064 856,723

Derivative financial instruments 2,547,253 880,366 2,547,253 880,366

Related parties 287,455 263,914 287,455 263,914

Other receivables 76,455 440,180 76,455 440,180

Dividends receivable 212,938 36,130 212,938 36,130

Total 6,103,055 4,167,240 6,103,055 4,167,240

Liabilities

Loans, borrowings and debentures 8,999,827 7,397,602 7,909,798 7,182,340

Derivative financial instruments 756,957 333,435 756,957 333,435

Trade payables 1,545,339 971,170 1,545,339 971,170

Payables to related parties 129,093 122,449 129,093 122,449

Preferred shareholders payable in subsidiaries 2,106,730 1,926,888 2,106,730 1,926,888

Tax installments - REFIS 186,894 523,801 186,894 523,801

Contingent consideration - Earn out 133,197 186,649 133,197 186,649

Dividends payable 15,756 20,347 15,756 20,347

Total 13,873,793 11,482,341 12,783,764 11,267,079

Hedge accounting – Fair value

Currently, the Company adopted fair value hedge to some of his so that both the hedging

instruments and hedged items are accounted for at fair value through profit operations. Operations

and accounting effects of this adoption are as follows:

Sênior Notes 2023

Loan Derivative Total

At December 31, 2014 1,352,796 (183,086) 1,169,710

Interest amortization (88,646) (71,017) (159,663)

Fair value 654,249 (477,913) 176,337

At September 30, 2015 1,918,399 (732,016) 1,186,384





66

24 Fair value hierarchy

The following hierarchical classification of assets and liabilities measured at fair value are:

Financial instruments measured at fair value Level 1 Level 2 Total

At September 30, 2015

Cash and cash equivalents 141,604 1,723,396 1,865,000

Derivative financial assets - 2,547,253 2,547,253

Derivative financial liabilities - (756,957) (756,957)

Loans and Borrowings - (4,756,758) (4,756,758)

Securities - 214,890 214,890

Available for sale securities - 289,295 289,295

Investiment Properties - 2,385,932 2,385,932

Total 141,604 1,647,051 1,788,655

At September 30, 2015

Derivative financial assets - 880,366 880,366

Derivative financial liabilities - (333,435) (333,435)

Contingent consideration - Earn out - 186,649 186,649

Securities - 149,735 149,735

Loans and Borrowings - 25,089 25,089

Investiment Properties - 2,641,978 2,641,978

Total - 5,550,382 5,550,382





67

25 Pension and post-employment benefit plans


Futura 26,125 23,048

Futura II 171 154

COMGÁS 291,450 278,562

Total 317,746 301,764

Pension plan

Defined benefit

The Company's subsidiary Cosan Lubrificantes e Especialidades S.A. has a non-contributory

defined benefit pension plan (Futura, formerly Previd Exxon) for certain employees upon

retirement. This plan was amended to close it to new entrants and it was approved by the relevant

authorities on May 5, 2011. During the three and nine months period ended on September 30,

2015, the amount of contributions totaled R$ 722 and R$ 2,601 respectively (R$ 2,360 and R$

7,005 for the three and nine months period ended on September 30, 2014, respectively).

Defined contribution

Since June 1, 2011, the Company and its subsidiaries have sponsored a defined contribution plan

for all employees (Futura II). The Company does not have a legal or constructive obligation to

pay further contributions if the fund does not have sufficient assets to pay all of the benefits

owed. During the three and nine months period ended on Sptember 30, 2015 the amount of

contributions totaled R$ 382 and R$ 1,191 respectively. (R$ 701 and R$ 1,710 for the three and

nine months period ended on September 30, 2014, respectively)

The subsidiary COMGÁS offers a supplementary retirement plan, through a defined contribution

Free Benefit Generating Plan (PGBL). During the three and nine months period ended on

September 30, 2015, the values of sponsor contributions to the plan totaled R$ 8,770 and R$

26,309 respectively. (R$ 8,186 and R$ 24,559 for the three and nine months period ended on

September 30, 2014, respectively).





68

26 Share-based payment

At the annual and extraordinary general shareholders‟ meeting held on July 29, 2011, the

guidelines for the outlining and structuring of the stock option compensation plan for Cosan

S.A.‟s executives and employees were approved, authorizing the issue of up to 5% of shares of

Cosan S.A.‟s total capital. This stock option plan was created to attract and retain executives and

key employees, offering them the opportunity to become Cosan S.A.‟s shareholders.

On August 18, 2011, Cosan S.A.‟s board of directors approved the total number of stock option

awards of 12,000,000 shares to be issued or treasury shares held by Cosan S.A., corresponding to

2.41% of the share capital at that time. On the same date the eligible executives were informed

about the terms and conditions of the stock-option plan.

At August 31, 2015, 759,000 option secured from the fifth years, were granted to eligible

executives based on the issuance of new shares or treasury shares that the company may have.

According to the average market value of the shares over a 30 day period ending at issuance, the

exercise price was defined to be R$19.96 per share, without any discount.

The numbers of options in the nine month periods ended September 30, 2015 is 9,671,000

(8,512,000 in the nine month periods ended September 30, 2014) with weighted average exercise

price R$ 27.84 (R$ 25.22 at September 30, 2014).

Documents

Cosan S.A. Indústria e Comércioir.cosan.com.br/enu/1148/CosanS.A_DemonstraesFinanceirasintermedi... · 3 Independent auditor report on review of consolidated interim financial statements