INSTITUTIONAL PRESENTATION 3Q17

Transcription

1 INSTITUTIONAL PRESENTATION 3Q17

2 DISCLAIMER This presentation contains estimates and forward-looking statements regarding our strategy and opportunities for future growth. Such information is mainly based on our current expectations and estimates or projections of future events and trends, which affect or may affect our business and results of operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to us. Our estimates and forward-looking statements may be influenced by the following factors, among others: (1) general economic, political, demographic and business conditions in Brazil and particularly in the geographic markets we serve; (2) inflation, depreciation and devaluation of the real; (3) competitive developments in the ethanol and sugar industries; (4) our ability to implement our capital expenditure plan, including our ability to arrange financing when required and on reasonable terms; (5) our ability to compete and conduct our businesses in the future; (6) changes in customer demand; (7) changes in our businesses; (8) government interventions resulting in changes in the economy, taxes, rates or regulatory environment; and (9) other factors that may affect our financial condition, liquidity and results of our operations. The words believe, may, will, estimate, continue, anticipate, intend, expect and similar words are intended to identify estimates and forward-looking statements. Estimates and forward-looking statements speak only as of the date they were made and we undertake no obligation to update or to review any estimate and/or forward-looking statement because of new information, future events or other factors. Estimates and forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Our future results may differ materially from those expressed in these estimates and forward-looking statements. In light of the risks and uncertainties described above the estimates and forward-looking statements discussed in this presentation might not occur and our future results and our performance may differ materially from those expressed in these forward-looking statements due to, inclusive, but not limited to the factors mentioned above. Because of these uncertainties you should not make any investment decision based on these estimates and forward-looking statements.

3 COSAN: FROM SUGAR CANE TO ENERGY AND LOGISTICS Successful diversification by entering complementary businesses through acquisition, resulting in a robust portfolio of business that are leaders in their respective industries Cosan S/A officially established Da Barra Mill Acquisition Cosan S/A IPO Cosan Limited IPO Exxon Mobil Acquisition Radar and Rumo Established Nova América Acquisition Raízen JV with Shell Comgás Acquisition Cosan Logística Established Rumo and ALL merger Sale of Radar Sugar Logistics Sugar Land Development Sugar & Ethanol Logistics Port Terminal Depots & Pipeline Natural Gas Distribution New Logistics Projects Divestment of Land Development Business Sugarcane Harvest & Plantation Ethanol Cogen Fuel Distribution Lubes Operations Expansion of Fuel Operations Internationalization of Lubes Operations

4 COSAN LIMITED TODAY One of the largest Brazilian conglomerates with well diversified portfolio Issuer CZZ 62.2% 72.3% Market Cap 2 : R$ 6.6 Bln 766 FY'2005 FY'2006 FY'2007 FY'2008 FY'2009 FY'2010 FY'2011 FY'2012 FY'2013 FY'2014 CSAN3 Market Cap 2 : R$ 14.8 Bln FUELS & LUBES COSAN ALIMENTOS COGEN RUMO SUGAR & ETHANOL TOTAL Market Cap 2 : R$ 3.3 Bln RLOG3 50.0% 50.0% 63.1% 100.0% 28.5% BOVESPA LISTED Combustíveis Energia R$ 3.0 Bln Adj. EBITDA 1,3 R$ 4.1 Bln Adj. EBITDA 1,3 R$ 1.9 Bln Adj. EBITDA 3 R$ 6.2 Bln Mkt Cap 2 R$ 187 Mln Adj. EBITDA 3 R$ 2.4 Bln Adj. EBITDA 3 R$ 18.8 Bln Mkt Cap 2 2 nd Largest fuel distributor in Brazil 1 st World largest sugar & ethanol exporter 1 st Largest distributor of natural gas in Brazil 2 nd Largest lubricants player in Brazil 1 st Largest railway-based logistics provider in LatAm Note : 1 Considering 100% of Raízen s EBITDA Note : 2 Market capitalization as of November 13, 2017 Note : 3 LTM 3Q17 Adjusted EBITDA

5 Cosan S/A Energy RAÍZEN COMBUSTÍVEIS RAÍZEN ENERGIA COMGÁS MOOVE

6 CONSISTENT FINANCIAL PERFORMANCE OVER THE YEARS Cosan S/A EBITDA, cash generation and net income consistently growing ADJUSTED EBITDA PRO FORMA 1 AND EBITDA MARGIN 8.8% (BRL Bln, %) 9.9% 9.8% 8.9% 10.0% 10.8% FREE CASH FLOW TO EQUITY PRO FORMA 2 (BRL Bln) LTM 3Q17 Adjusted EBITDA NET INCOME (BRL Bln) EBITDA Margin LTM 3Q17 CAPEX PRO FORMA (BRL Bln) LTM 3Q LTM 3Q17 Note : 1 Adjusted EBITDA considers the recurring EBITDA from each business unit, excluding extraordinary effects Note : 2 Defined as cash flow to shareholders, before dividends paid, considering 50% of the results of Raízen Combustíveis and Raízen Energia

7 ONGOING DELEVERAGING Consistent operational performance allowed for leverage reduction GROSS DEBT 1 NET DEBT 2 (R$ Bln) (R$ Bln) 2.6x 2.6x 3.0x 2.7x 2.1x 2.1x LTM 3Q LTM 3Q17 NET DEBT/EBITDA (X) Normalized by Comgás' current account DEBT AMORTIZATION PROFILE 3 (R$ Bln) Cash & Cash Equivalents Note : 1 Pro forma gross debt includes 50% of Raízen and excludes obligations with preferred shareholders of BRL 1.5 billion Note : 2 Net Debt Pro Forma includes obligations with preferred shareholders Note : 3 Pro forma basis, based on 50% of Raízen, and excludes the obligations with preferred shareholder and Perpetual Bond

8 Raízen Joint venture between Cosan and Shell RAÍZEN COMBUSTÍVEIS RAÍZEN ENERGIA COMGÁS MOOVE

9 CORPORATE FUELS ENERGY ENERGY Raízen at a Glance Key Dimensions Raízen is the world s largest individual producer exporter of sugar, and operates more than 6,000 Shell-branded service stations in Brazil. (As of 2016) 73 mln tons of crushing capacity (10% of Brazilian Center-South) 4.2 mln tons of Sugar production World s largest sugar producer exporter 2.0 bln liters of Ethanol production 98% Mechanized Harvest 940 MW of Energy Cogeneration Capacity 6,138 service stations 2,200 B2B customers 950 convenience stores 25 bln liters of fuels sales 67 fuels depots 66 airport operations Shell and Cosan as Shareholders Brazil s 5 TH largest company by net revenues (Source: Valor ) ~28 k employees Investment Grade in global scale Fitch (BBB) Moody s (Ba1) Standard & Poor s (BBB-) The combination of Shell and Cosan s retail and technical expertise contributed to Raizen s strong financial and operational performance since it was established. Note : (*) Including Tonon

10 RAÍZEN COMBUSTÍVEIS Continued growth in a challenging business environment VOLUME¹ (bln Liters) 4.0% 4.1% ADJUSTED EBITDA² (R$ bln) 3.7% 4.1% 4.1% 3.8% 4.0% M16 9M M16 9M17 Adjusted EBITDA EBITDA Margin NUMBER OF STATIONS ,679 4,830 5,356 5,682 6,027 BR Distr. 41% MARKET SHARE 3 (% Volume) ALE 5% RAÍZEN 27% # of Sites m³/month /site Source: Sindicom 2016 ULTRA 27% Note : 1 Volume accounts for 100% of Raízen Combustíveis Note : 2 Adjusted EBITDA accounts for 100% of Raízen Combustíveis, excluding impacts from asset sale and other extraordinary effetcs, when applicable Note : 3 Companies market share excluding white flags gas stations

11 RAÍZEN ENERGIA Improving returns irrespective of commodity cycles SUGARCANE CRUSHED¹ (mln tons) CAPEX 1 (R$ bln) CLUSTERS PROVIDE KEY ADVANTAGES GO 4.0 Mtc Jataí 3.0 Mtc Junqueira Caarapó MS 2.1 Mtc 10.8 Mtc 10.5 Mtc 12/13 13/14 14/15 15/16 16/17 LTM /13 13/14 14/15 15/16 16/17 LTM 11.6 Mtc 11.6 Mtc Santos Port 28.3% ADJUSTED EBITDA 1 (R$ bln) 28.3% 30.4% 30.9% 25.4% 25.3% /13 13/14 14/15 15/16 16/17 LTM² Adjusted EBITDA EBITDA Margin 2 SECTOR LEADERSHIP Brazil Market Share (2016/17 Harvest Crushing) 10% #2 5% 5% #3 5 IASF, Raf, UBR, USH, Copi 4 Paralcool, Taruma, Maracai, Ipaussu 3 Barra, DC, Diamante, TB, Paraíso 5 Gasa, Univ, Dest, Mund, Ben 4 Bonfim, Tamoio, Serra, Zanin Out of Clusters Note : 1 100% of Raízen Energia s results, accounted in Crop Year, from April 1 st to March 31 st, excluding effects from biological assets, hedge accounting (debt) and other extraordinary effects where applicable Note : 2 LTM figures from September 30 th, 2017 Note : 3 One of the 24 mills of Raízen Energia is hibernated since April 1 st 2015

12 Comgás Natural gas distribution benchmark in Brazil RAÍZEN COMBUSTÍVEIS RAÍZEN ENERGIA COMGÁS MOOVE

13 COMGÁS Focus on residential and commercial segments OFFSHORE GAS PRODUCTION GAS BRASILIANO NATURAL GAS SPS POTENTIAL POPULATION: 30.9 mln RESIDENCES: 9.2 mln VEHICLES: 12.3 mln RESIDENTIAL COMMERCIAL INDUSTRIAL COGENERATION TERMOGENERATION AUTOMOTIVE 1.8 mln UDA s 16,500 clients 1,200 clients 27 clients 2 plants 260 stations 30-year concession term (valid until 2029) renewable for 20 additional years Strategically located: pipeline hub and close to supply (Santos Basin) High demographic density Municipalities (26% of Brazil s GDP) Excellence in operational, safety and asset integrity NUMBER OF NEW CONNECTIONS ( 000 clients) 1, , , , ,686 1, ,099 1,215 1,334 1,461 1,574 1, LTM 3Q17 Existing Customers New Connections

14 COMGÁS Growth focus on residential and commercial and strong leverage on economic rebound of industrial segment TOTAL VOLUME (bln cbm) (excluding thermal generation) VOLUME PER SEGMENT (3Q17 LTM) NORMALIZED GROSS PROFIT PER SEGMENT (3Q17 LTM) 2% 11% LTM 3Q17 NORMALIZED EBITDA (R$ mln) 21.1% 20.4% 20.9% 25.9% 31.3% 79% 4% 7% 7% 3% 34% 4% 47% 1,336 1,303 1,378 1,464 1,680 Industrial Automotive Residential Cogeneration Commercial Industrial Automotive Residential Cogeneration Commercial LTM 3Q17 Normalized EBITDA EBITDA Margin VOLUME 3Q17 LTM: 4.2 bln cbm (excluding thermal generation) NORMALIZED GROSS PROFIT 3Q17 LTM: R$ 2.2 bln (excluding thermal generation)

15 Moove Market leader in premium lubricants in Brazil RAÍZEN COMBUSTÍVEIS RAÍZEN ENERGIA COMGÁS MOOVE

16 MOOVE Established lubricants platform in South America and the UK LUBRICANTS & SPECIALTIES MARKET SHARE (%) VS. COMPETITORS 26.7 Mobil brand trademark license and distribution agreement (Brazil, Bolivia, Uruguay, Paraguay, England and Ireland) Comma brand focused on special lubricants and other products for passenger vehicles, light and heavy trucks Source: Sindicom 2016 LTM 3Q17 Results Net Revenues (R$ bln) EBITDA (R$ mln) Volume sold ( 000 m³) Base oil distribution contract with ExxonMobil and S-Oil Production and distribution of additional automotive chemical products Bolivia Paraguay Uruguay Rio de Janeiro Port UK Plant or Depot Comma operations Distributors

17 GUIDANCE 2017 Cosan S/A Consolidated Raízen Combustíveis Comgás Actual 2016 (jan-dec/16) Guidance 2017 (jan dec/17) Pro forma Net Revenue (BRL mln) 47,008 45,000 48,000 Pro forma Adjusted EBITDA¹ (BRL mln) 4,665 4,900 5,300 Adjusted EBITDA² (BRL mln) 2,812 2,700 3,000 CAPEX (BRL mln) ,000 Normalized EBITDA³ (BRL mln) 1,465 1,670 1,730 CAPEX (BRL mln) Moove EBITDA (BRL mln) Actual Crop year 2016/17 (apr/16 mar/17) Guidance Crop year 2017/18 (apr/17 mar/18) Raízen Energia Volume of Sugarcane crushed ( 000 t) 59,391 59,000 63,000 Adjusted EBITDA⁴ (BRL mln) 3,693 3,900 4,300 CAPEX (BRL mln) 2,088 2,300 2,600 Note 1: Cosan S/A Consolidated Proforma EBITDA considers in both actual and guidance the adjustments that are highlighted in the Company s earnings releases, reflecting the recurring results of operations, excluding any one-off effects. Note 2: EBITDA adjusted by (i) Assets divestments and (ii) other extraordinary effects, if applicable. Note 3: Comgás IFRS EBITDA of 2017 shall be impacted by the devolution of the balance from the regulatory current account, which ended 2016 at BRL 414 million in favour of clients. Note 4: EBITDA adjusted by (i) Variation in Biological Assets, (ii) Hedge Accounting - Debt, (iii) Forex effect in sugar exports and (iv) nonrecurring effects, if applicable.

18 Investor Relations Cosan S/A (CSAN3) Web: ir.cosan.com.br (11) Guilherme Machado, IRO Phillipe Casale, IR Manager Ana Luisa Perina, IR Coordinator Ailime Freitas, IR Analyst

19 THANK YOU