INSTITUTIONAL PRESENTATION April 2016
Cosan S/A Energy COMBUSTÍVEIS ENERGIA COMGÁS LUBRICANTS RADAR
COSAN S/A TODAY Cosan S/A is one of the largest Brazilian energy and natural gas companies... 33% 34% CSAN3 2015 EBITDA % 28% 3% 2% 50.0% 50.0% 61.3% 100.0% 37.7% Combustíveis Energia Fuel Distribution Sugar, Ethanol & Cogenaration Natural Gas Distribution Lubricants Land Development R$ 2.5 bln* 28% R$ 3.0 bln* 33% R$ 1.5 bln 34% R$ 126 mln 3% R$ 106 mln 2% Energy and Gas (*) Note: Considering 100% of Raízen s EBITDA...with a clear focus on opperational efficiency and cash generation
Raízen A joint venture of Cosan and Shell, Raízen is the biggest producer of ethanol, sugar and bioelectricity generated from sugarcane bagasse and one of the largest fuels distribution company. COMBUSTÍVEIS ENERGIA COMGÁS LUBRICANTS RADAR
ENERGY FUELS THE EVOLUTION OF AS A JV Raízen was formed back in 2011 combining two very different companies with two very different business... Brand repositioning Logistics optimization Cost cutting Sustainable growth Conclusion of expansion cycle Operational efficiency Focus on returns 2011 2012 2013 2014 2015... five years later in a rather challenging business environment Raízen successfully developed a performance driven culture combining the best of its shareholders while refreshing the company with best practices and people.
COMBUSTÍVEIS FINANCIAL PERFORMANCE VOLUME GROWTH (Volume Bln/L) EBITDA EXPANSION (R$ Bln) 20.3 21.7 23.0 24.9 25.1 6.6 6.5 1.3 1.7 2.0 2.2 2.5 0.7 0.8 2011 2012 2013 2014 2015 4Q14 4Q15 2011 2012 2013 2014 2015 4Q14 4Q15 NUMBER OF STATIONS MARKET SHARE (%) 253 255 265 261 251 SHELL STATIONS B2B CLIENTS TERMINALS C-STORES BLN LITERS OF FUELS AIRPORTS 5,700 1,100 69 950 25 59 4,527 4,710 4,972 5,427 5,682 2011 2012 2013 2014 2015 # of Sites m³/month /site 25% ULTRA BR Distr. ALE Source: Sindicom 2015
ENERGIA Raízen Energia s focus has been to improve efficiency. SUGARCANE CRUSHED (Mln tons) CAPEX (R$ Bln) Clusters Provide Key Advantages 62,0 GO 4.0 Mtc Jataí 3.0 Mtc Junqueira 1,8 Caarapó 53.0 56.2 61.4 57.1 60.0 57.0 60.0 2.1 2.4 2.4 2.5 1.7 1.5 1.0 MS 2.1 Mtc 10.8 Mtc 10.5 Mtc 10.5 Mtc 11/12 12/13 13/14 14/15 15/16E 9M15 9M16 11/12 12/13 13/14 14/15 15/16E 9M14 9M15 EBITDA(R$ Bln) Sector Leadership 11.6 Mtc 11.6 Mtc Santos Port Market Share (Crushing 15/16) Center South of Brazil 3,3 5 IASF, Raf, UBR, USH, Copi Mills Crushing capacity Cogeneration capacity Sugar produced Ethanol produced Ethanol traded 24 68 MM ton 940 MW 4.0 MM ton 2.0 Bn L 6.0 Bn L 3.0 2.1 2.4 2.4 2.5 2.2 1.7 11/12 12/13 13/14 14/15 15/16E 9M15 9M16 10.2% 4 Paralcool, Taruma, Maracai, Ipaussu 3 Barra, DC, Diamante 5 Gasa, Univ, Dest, Mund, Ben 4 Bonfim, Tamoio, Serra, Zanin Out of Clusters
Comgás TECHNOLOGY AND MODERNITY FOR PROGRESS Comgás' concession area covers 177 municipalties of the State of São Paulo, representing 27% of Brazil's GDP and 35% of all power consumed in the country. COMBUSTÍVEIS ENERGIA COMGÁS LUBRICANTS RADAR
COMGÁS BRAZIL S LARGEST DISTRIBUTOR OF NATURAL GAS GAS BRASILIANO POTENTIAL POPULATION: 30,9 Mi RESIDENCES: 9,2 Mi OFFSHORE GAS PRODUCTION COMGÁS NATURAL GAS SPS VEHICLES: 12,3 Mi ADVANTAGES: CONCESSION AREA RECORD NEW CONNECTIONS 000 clients RESIDENTIAL COMMERCIAL INDUSTRIAL COGENERATION TERMOGENERATION AUTOMOTIVE 1.5 mln UDA s 14.879 clients 1.100 clients 28 clients 2 plants 276 stations Pipeline intersection (GASBOL, GASAN, GASPAL) 177 Municipalties (26% of Brazil s GDP) Short supply distance (Santos Basin) High demographic density 30-year concession renewable for 20 additional years Excellence on operational, safety and asset integrity 1,099 110 989 1,215 116 1,334 119 1,461 127 1,574 113 1,461 1,099 1,215 1,334 Customers New Connections
COMGÁS BRAZIL S LARGEST DISTRIBUTOR OF NATURAL GAS Volume (mm m³) Vol. per Segment (MM cbm) Gross Margin per Segment 2015 2015 2% 25% 4,835 5,259 5,457 5,459 5,211 5% 1,377 1,242 2011 2012 2013 2014 2015 4Q14 4Q15 81% 5% 7% 3% 61% 3% 9% Normalized EBITDA FIGURES (R$ bln) Industrial Automotive Residential Cogeneration Comercial 1,107 1,176 1,336 1,303 1,378 TOTAL: 4.3 billion cbm (excluding thermal generation) TOTAL: R$ 2.0 billion (excluding thermal generation) 324 314 2011 2012 2013 2014 2015 4Q14 4Q15
Lubricants HIGH STANDARDS OF QUALITY AND TECHNOLOGY Cosan Lubricants produces over 2 million barrels of lubricants and specialty chemicals every year. COMBUSTÍVEIS ENERGIA COMGÁS LUBRICANTS RADAR
2008 2012 2015 COSAN LUBRICANTS LUBRICANTS MARKET SHARE (%) VS. COMPETITORS FOTO MAIS LEGAL Mobil brand trademark license and distribution agreement (Brazil, Bolivia, Uruguay, Paraguay, England and Ireland) Comma brand focused on lubrication specialists and professionals for passenger vehicles, light and heavy trucks 3.0 9.5 10.1 8.9 10.6 14.7 15.7 UK 15.5 26.7 SPECIALTIES Key dimensions Base oils distribution contract with Exxon Mobil and S-Oil Production and distribution of additional automotive chemical products Bolivia Paraguay Uruguay Rio de Janeiro Port Plant or Depot Comma operations Distributors Source : Sindicom 2014
Radar RESPONSIBLE MANAGEMENT OF FARMLAND Biggest player in the Brazilian agricultural scenario focused on future demands, Radar has expertise in agricultural operations and invests in productive farmland. COMBUSTÍVEIS ENERGIA COMGÁS LUBRICANTS RADAR
RADAR TOTAL AUM PORTFOLIO EVOLUTION OUTPERFORMING THE MARKET Radar (own land) Properties thousand acres Bln invested in 6 years R$ Bln of AUM 555 609 2.9 4.6 265 265 260 270 208 208 150 70 2.9 2.4 2.5 2.6 1.8 1.4 1.5 1.4 1.4 1.4 0.9 0.8 0.8 0.8 0.5 0.5 2008 2009 2010 2011 2012 2013 2014 2015 Invested Capital Fair Value Thousand hectares Land Management Land Management 308 350 350 59 157 2 2 1.1 1.2 1.5 1.5 0.1 0.2 0.5 0.7 Main cultures Sugarcane Soybean Corn Cotton 17% 28% 1% 1% 7% 2% 6% 37% % of total portfolio IRR on land portfolio >20% 2011 2012 2013 2014 2015 Invested Capital Fair Value Thousand hectares
Cosan S/A Energy COMBUSTÍVEIS ENERGIA COMGÁS LUBRICANTS RADAR
COSAN S/A (CSAN3) CONSOLIDATED PRO FORMA RESULTS Cosan delivered consistent EBITDA growth over the last years... NET REVENUE PRO FORMA (1) (R$ Bln) EBITDA PRO FORMA (1) (R$ Bln) NET DEBT (1) (R$ Bln) 2.6 2.6 3.0 2.5 22.3 26.5 35.4 38.8 43.7 10.3 12.2 1.9 2.4 3.6 3.7 4.6 1.0 1.8 0.9 2.7 8.8 10.3 11.3 11.3 2011 2012 2013 2014 2015 4Q14 4Q15 2011 2012 2013 2014 2015 4Q14 4Q15 2011 2012 2013 2014 2015 NET DEBT NET DEBT / EBITDA (X)...and its main focus from 2015 on is generating cash in order to deleverage the holding company. Note (1): Calendar year and includes Raízen (50%). Leverage excludes the obligations with preferred shareholders in subsidiary. From 2014 on, excluding Rumo s results.
Investor Relations Cosan S/A ir.cosan.com.br ri@cosan.com.br +55 (11) 3897-9797