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Financial assets and liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Financial assets and liabilities  
Summary of Carrying Amount of Financial Assets and Liabilities

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

 

Note


December 31, 2021



December 31, 2020



Assets

 


 



 



Fair value through profit or loss

 


 



 



Cash and cash equivalents

6.1


8,103,713



2,155,446



Marketable securities

6.2


4,388,007



3,669,109



Other financial assets

6.4


320,193



69,126



Derivate financial instruments

6.10


4,732,926



8,140,700



 

 


17,544,839



14,034,381



Amortized cost

 


 



 



Cash and cash equivalents

6.1


8,070,417



11,487,472



Trade receivables

6.3


2,745,853



2,033,441



Restricted cash

6.2

58,990



34,562

Receivables from related parties

6.5


416,491



929,690



Sector financial assets

6.9


558,310



241,749



Dividend receivable

 


519,965



80,755



 

 


12,370,026



14,807,669



Total assets

 


29,914,865



28,842,050



Liabilities







Amortized cost 







Loans, borrowings and debentures

6.6


(25,444,437

)

(23,393,880

)

Leases

6.7


(3,267,678

)

(3,001,847

)

Trade payables

6.8


(3,253,504

)

(2,630,054

)

Consideration payable

 


(234,960

)

(224,787

)

Other financial liabilities (i)

 


(726,423

)

(594,188

)

Payables to related parties

6.5


(287,609

)

(307,080

)

Railroad concession payable

13


(3,054,248

)

(1,154,919

)

Preferred shareholders payable in subsidiaries

 


—



(387,044

)

Dividends payable

 


(799,634

)

(1,413,222

)

Sector financial liabilities

6.9


(1,372,283

)

(565,911

)

Tax installments - REFIS

15


(200,664

)

(202,377

)

 

 


(38,641,440

)

(33,875,309

)

Fair value through profit or loss

 


 



 



Loans, borrowings and debentures

6.6


(20,214,600

)

(18,855,580

)

Derivative financial instruments

6.10


(1,076,161

)

(446,061

)

 

 


(21,290,761

)

(19,301,641

)

Total liabilities

 


(59,932,201

)

(53,176,950

)


(i)
The balance substantially presented comes from the subsidiary Rumo and refers to amounts that were advanced by its suppliers with financial institutions. As of December 31, 2021 the balance was R$576,786 (R$413,470 as of December 31, 2020). These operations had Banco Itaú and Banco Bradesco as counterparties, at an average rate of 10.60% p.a. (3.00% p.a. on December 31, 2020). The average payment term of these operations is around 90 days. 
Summary of Cash and Cash Equivalents

 

December 31, 2021



December 31, 2020


Cash and bank accounts

98,116



4,134,074


Savings account

2,594,723



986,379


Financial investments

13,481,291



8,522,465


 

16,174,130



13,642,918


Summary of Financial Investments

Financial investments include the following:

 

December 31, 2021



December 31, 2020


Investment fund

 



 


Repurchase agreements

1,680,328



1,672,688


Bank certificate of deposits

6,423,385



475,213


Other

—



7,545


 

8,103,713



2,155,446


Bank investments

 



 


Repurchase agreements(i)

974,494



1,293,833


Bank certificate of deposits(ii)

2,321,614



5,015,244


Other(iii)

2,081,470



57,942


 

5,377,578



6,367,019


 

13,481,291



8,522,465


Summary of marketable securities and restricted cash

 

December 31, 2021



December 31, 2020


Marketable securities

 



 


Government security (i)

4,371,645



3,543,886


CDB

1,051



116,963


ESG funds (ii)

15,311



—


Repurchase agreements

—



8,260


 

4,388,007



3,669,109


Restricted cash

 



 


Securities pledged as collateral 

58,990



34,562


 

58,990



34,562


 

(i)
Government securities have stated interest connected to Special System for Settlement and Custody (Sistema Especial de Liquidação e de Custódia), or “Selic,” with a return of approximately 100% of the CDI.
(ii)
On October 6, 2021, the Company invested in the Fifth Wall Climate Tech Fund, from the United States, as an investor and partner in a business that also gives preferential access to investments in startups developing carbon solutions. The investment is measured at fair value through profit or loss maturing in 5 years.
Summary of Trade Receivables

 

December 31, 2021



December 31, 2020



 

Domestic – Brazilian reais

1,810,867



1,432,805



Export – foreign currency

74,450



68,867



Unbilled receivables(i)

975,588



667,793



 

2,860,905



2,169,465



 

 



 



Expected credit losses

(115,052

)

(136,024

)

 

2,745,853



2,033,441



 

 



 



Current

2,580,776



2,007,140



Non-current 

165,077



26,301



 

2,745,853



2,033,441



 

(i)
Unbilled revenue refers to the part of the gas supply in the month, whose measurement and billing have not yet been carried out.
Summary of Ageing analysis of Trade Receivables

The aging of trade receivables is as follows:

 

December 31, 2021



December 31, 2020



Not overdue

2,484,633



1,814,202



Overdue:

 



 



From 1 to 30 days

206,244



166,467



From 31 to 60 days

21,130



23,169



From 61 to 90 days

22,351



14,156



More than 90 days

126,547



151,471



Expected credit losses

(115,052

)

(136,024

)

 

2,745,853



2,033,441



Summary of Changes in Allowance for Doubtful Accounts

Changes in the expected credit losses are as follows:

At January 1, 2020

(120,407

)

Provision / reversal

(39,187

)

Write-off

23,570



At December 31, 2020

(136,024

)

Provision / reversal

(10,762

)

Foreign exchange

(340

)

Write-off

32,074



At December 31, 2021

(115,052

)
Schedule of other financial assets

The balance of other financial assets is composed as following: 

 

December 31, 2021



December 31, 2020


Tellus and Janus shares (i)

319,727



—


Other financial assets (ii)

466



69,126


 

320,193



69,126


 

 



 


   Current

466



69,126


Non-current

319,727



—


 

320,193



69,126



(i)
The subsidiary Radar Propriedades Agrícola S.A. holds investments in preferred shares issued by its related parties Tellus Brasil Participações S.A. (“Tellus”) and Janus Brasil Participações S.A. (“Janus”), which also buy, sell and rent investment properties. These investments represent 5% of the preferred shares issued by the Tellus and Janus companies. The Company and the other shareholders are entitled to receive 90% of the proposed annual dividends. Investments are redeemable when the entities sell the investment properties, which are valued on a quarterly basis, according to fair market value. Securities are classified as financial instruments at fair value through other comprehensive income.
(ii)
On March 31, 2020, Cosan Lubes Investments Limited (“CLI”) received R$ 65,478 due to the satisfaction of the precedent conditions on December 31, 2019, as provided for in the investment agreement between the Company and CVC Fund VII (“CVC”). On April 15, 2021, the updated amount of R$ 69,155 was paid, according to the line “Receipt of consideration asset” in the cash flow.
Summary of Receivables from and Payables to Related Parties

a)      Summary of balances with related parties

 

December 31, 2021



December 31, 2020



Current assets

 



 



Corporate / agreement operations

 



 



Raízen Energia S.A.(i)

38,710



73,913



Termag - Terminal Marítimo de Guarujá S.A.

14,286



—



Aguassanta Participações S.A.

2,956



837



Raízen S.A.(i)

15,489



11,171



Other

361



17,171



 

71,802



103,092



Financial operations

 



 



Raízen Energia S.A.(i)

8,933



— 



Raízen S.A.(i)

45



— 



Rio Minas Mineração S.A.

17,500



— 



Aguassanta Participações S.A.(ii)

—



576,957



 

26,478



576,957



Total current assets

92,280



680,049



Non-current assets

 



 



Corporate / agreement operations

 



 



Raízen S.A.(i)

47,732



45,895



Termag - Terminal Marítimo de Guarujá S.A.

64,286



—



Other

—



48,571



 

112,018



94,466



Preferred shares

 



 



Raízen Energia S.A.(i)

205,958



155,175



Other

235



—



 

206,193



155,175



Total non-current assets

318,211



249,641



Total assets

416,491



929,690



Current liabilities

 



 



Corporate / agreement operations

 



 



Raízen Energia S.A.(i)

50,289



146,722



Raízen S.A.(i)

171,084



154,366



Other

6,365



1,158



 

227,738



302,246



Financial operations

 



 



Raízen S.A.(i)

11,959



—



Raízen Energia S.A.(i)

47,912



4,834



 

59,871



4,834



Total liabilities

287,609



307,080




(i) Current and non-current assets receivable from Raízen Energia and Raízen S.A. are, primarily, tax credits which will be reimbursed to the Company when realized. The preferred shares are used to Raízen reimburse Cosan, with preferential dividends, when the net operating loss is consumed in Raízen. Current liabilities represent reimburse to Raízen Energia and Raízen S.A. related to expenses regarding legal disputes and other liabilities, generated before the formation of joint ventures, which are responsibility of Cosan S.A.
(ii) On December 11, 2020, the Company disposed of 13,021,744 shares that were held in treasury to Aguassanta Investimentos S.A. (“Aguassanta”) paid on January 8, 2021.
Summary of Related Party Transactions

b)     Related party transactions

 

December 31, 2021



December 31, 2020



December 31, 2019



Revenue

 



 



 



Raízen International Universal Corporation

—



5,143



—



Raízen Energia

469,053



483,934



298,980



Raízen S.A.

210,447



186,359



221,369



Other

—



268



7,010



 

679,500



675,704



527,359



Purchase of goods / inputs / services

 



 



 



Raízen Energia

(32,153

)

(6,160

)

(7,010

)

Raízen S.A.

(1,543,917

)

(1,130,531

)

(1,240,781

)

Other

—



(939

)

—



 

(1,576,070

)

(1,137,630

)

(1,247,791

)

Shared expense

 



 



 



Raízen Energia

(73,831

)

(81,018

)

(71,978

)

 

(73,831

)

(81,018

)

(71,978

)

Financial result

 



 



 



Usina Santa Luiza S.A.

—



—



(41

)

Raízen Energia

139



4



—



Raízen S.A.

4,798



6,341



5,729



Other

—



47



(5

)

 

4,937



6,392



5,683



Total

(965,464

)

(536,552

)

(786,727

)
Summary of Officers' and Directors' Compensation

 

December 31, 2021



December 31, 2020



December 31, 2019



Short-term benefits to officers and directors

177,405



102,250



88,440



Share-based payment transactions

68,209



15,441



16,823



Long-term benefits to officers and directors

5,863

—

—

Post-employment benefits

750



1,045



728



 

252,227



118,736



105,991



Summary of Carrying Amounts of Loans, Borrowings and Debentures

Description


Index


Annual interest rate


December 31, 2021



December 31, 2020



Maturity


Objective

Secured


 


 


 



 



 


 

BNDES


URTJLP


7.49%


2,598,623



3,321,839



Dec-2029


Investment

 


Fixed


5.69%


461,756



647,435



Jan-2025


Investment

 


IPCA


7.46%


—



796



Nov-2021


Investment

 


IPCA


11.08%


646,624



—



Jan-2048


Investment

 


Fixed


3.50%


727



1,077



Jan-2024


Investment

 


URTJLP


10.34%


—



396



Mar-2022


Investment

 


IPCA + 3.25%


13.60%


945,663



807,438



Apr-2029


Investment

 


IPCA + 4.10%


14.53%


154,843



175,374



Apr-2029


Investment

Export credit agreement


Euribor + 0.58%


0.58%


95,460



104,108



Sep-2026


Investment

 


CDI + 1.03%


10.79%


86,707



—



Feb-2023


Investment

 


CDI + 2.25%


12.28%


60,700



—



May-2026


Investment

 


CDI + 0.80%


10.02%


515,928



—



Dec-2023


Investment

Resolution 4,131


U.S.$

0.90%


148,932



—



Nov-2022


Working Capital

Debentures


CDI + 1.79%


11.10%


753,770



—



Jun-2027


Investment

 


CDI + 1.30%


10.57%


746,725



—



Oct-2027


Investment

 


IPCA + 4.77%


15.27%


694,898



—



Jun-2031


Investment

European investment bank


U.S.$ + Libor 6-month + 0.54%


0.80%


—



30,817



May-2021


Investment

 


U.S.$ + Libor 6-month + 0.61%


0.80%


—



57,813



Sep-2021


Investment

 


 


 


7,911,356



5,147,093



 


 

Unsecured


 


 


 



 



 


 

Foreign loans


GBP + Libor 6-month + 1.50%


1.68%


—



143,039



Jul-2021


Working capital

 


GBP | Fixed


1.40%


37,674



35,556



Nov-2022


Working capital

 


GBP + Libor 6-month + 1.10%


1.17%


—



142,091



Dec-2021


Acquisition

 


GBP + Libor 6-month + 1.50%


1.92%


263,501



248,666



Dec-2022


Acquisition

 


EUR | Fixed


4.42%


857



2,095



Sep-2022


Investment

 


GBP | Fixed


1.90%


150,649



—



Dec-2023


Investment

Export credit notes


CDI + 1.03%


3.12%


—



82,185



Feb-2023


Investment

 


CDI + 0.80%


2.72%


—



505,061



Dec-2023


Investment

 


CDI + 3.05%


5.01%


—



208,464



Mar-2021


Investment

 


CDI + 3.15%


5.11%


—



468,516



Mar-2021


Investment

Resolution 4,131


U.S.$ | Fixed


1.60%


—



483,625



Nov-2022


Working capital

 


CDI


4.60%


—



206,908



Apr-2021


Working capital

 


U.S.$ + 3.67%


3.67%


438,823



415,232



May-2023


Investment

 


U.S.$ + 1.59%


1.59%


—



388,912



Apr-2021


Investment

 


U.S.$ + 1.36%


1.36%


414,378



—



Feb-2024


Investment

Banking credit certificates


IPCA + 0.81%


5.31%


—



239,068



Jan-2048


Working capital

Perpetual Notes


U.S.$


8.25%


2,825,420



2,631,100



Nov-2040


Acquisition

Senior Notes Due 2023


U.S.$ | Fixed


5.00%


685,550



569,466



Mar-2023


Acquisition

Senior Notes Due 2024


U.S.$ | Fixed


7.38%


—



4,514,289



Feb-2024


Acquisition

Senior Notes Due 2024


U.S.$ | Fixed


5.95%


—



1,232,844



Sep-2024


Acquisition

Senior Notes Due 2025(i)

U.S.$ | Fixed


5.88%


2,981,335



3,067,359



Jan-2025


Acquisition

Senior Notes Due 2027


U.S.$ | Fixed


7.00%


4,305,928



4,379,812



Jan-2027


Acquisition

Senior Notes Due 2028(ii)

U.S.$ | Fixed


5.25%


2,700,621



2,640,840



Jan-2028


Acquisition

Senior Notes Due 2029


U.S.$ | Fixed


5.50%


4,226,142



3,932,483



Sep-2029


Acquisition

Senior Notes Due 2032(iii)

U.S.$ | Fixed


4.20%


2,800,716



—



Jan-2032


Acquisition

Prepayment


Libor 3-month + 3.50%


5.57%


—



27,129



Mar-2021


Working capital

 


Libor 3-month + 1.00%


1.59%


111,955



104,318



Nov-2021


Working capital

 


1.27% Base 360


1.27%


166,355



—



Jul-2023


Working capital

Bank overdrafts


125.5% of CDI


5.53%


—



4,318



Jan-2020


Working capital

Debentures


IPCA + 4.68%


15.17%


543,752



595,847



Feb-2026


Investment

 


IPCA + 4.50%


14.97%


1,483,873



739,202



Feb-2029


Investment

 


IPCA + 3.60%


11.53%


361,862



—



Sep-2020


Investment

 


CDI + 2.65%


12.04%


1,858,837



1,740,551



Aug-2025


Investment

 


IPCA + 6.80%


17.50%


891,972



803,745



Apr-2030


Investment

 


IPCA + 3.90%


14.31%


1,018,844



1,025,777



Oct-2029


Investment


 


IPCA + 5.73%


16.33%


505,584



—



Oct-2033


Investment

 


IPCA + 4.00%


8.53%


—



255,501



Oct-2029


Investment

 


IPCA + 4.00%


14.42%


952,671



—



Dec-2035


Investment

 


IPCA + 4.54%


15.02%


126,668



—



Jun-2036


Investment

 


IPCA + 7.48%


18.25%


165,478



299,524



Dec-2022


Investment

 


IPCA + 7.36%


18.12%


108,451



97,956



Dec-2025


Investment

 


IPCA + 5.87%


16.48%


873,474



890,658



Dec-2023


Investment

 


IPCA + 4.33%


14.79%


501,278



452,457



Oct-2024


Investment

 


IGPM + 6.10%


12.11%


352,235



298,706



May-2028


Investment

 


CDI + 0.50%


9.70%


2,033,161



2,007,848



Oct-2022


Investment

 


CDI + 1.95%


11.28%


717,651



—



Aug-2024


Investment

 


IPCA + 5,12%


15.66%


484,974



—



Aug-2031


Investment

 


IPCA + 5,22%


15.77%


477,578



—



Aug-2036


Investment

 


CDI + 1.65%


7.90%


774,215



—



Aug-2028


Working capital

 


CDI + 2.00%


11.33%


930,301



—



Aug-2031


Working capital

 


IPCA + 5.75%


16.35%


374,761



—



Aug-2031


Working capital

Working capital


CDI + 2.75%


10.90%


100,157



100,045



Jun-2022


Working capital

Promissory notes


CDI + 3.00%


12.33%


—



601,058



Apr-2021


Investment

 


CDI + 3.40%


12.73%


—



520,116



Apr-2021


Investment

 


 


 


37,747,681



37,102,367



 


 

Total


 


 


45,659,037



42,249,460



 


 

Current


 


 


4,241,368



4,929,069



 


 

Non-current


 


 


41,417,669



37,320,391



 


 

Summary of Non-current Borrowings

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

 

December 31, 2021



December 31, 2020



13 to 24 months

4,339,743



3,759,874



25 to 36 months

2,968,458



3,667,857



37 to 48 months

4,029,690



7,480,137



49 to 60 months

984,015



4,298,007



61 to 72 months

6,902,914



640,000



73 to 84 months

4,701,952



5,427,729



85 to 96 months

6,595,854



4,023,694



Thereafter

10,895,043



8,023,093



 

41,417,669



37,320,391



Summary of carrying amounts of loans, borrowings and debentures are denominated by currencies

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

 

December 31, 2021



December 31, 2020



Brazilian reais

  23,304,742



17,022,405



U.S. dollar

  21,806,154



24,551,500



British pound

       451,824



569,352



Euro

         96,317



106,203



 

  45,659,037



42,249,460



Schedule of movements in loans, borrowings and debentures

Below are the movements in loans, borrowings and debentures occurred for the year ended December 31, 2021: 

At January 1, 2020

29,052,215



Proceeds

10,336,257



Repayment of principal

(3,397,060

)

Payment of interest

(1,782,976

)

Interest, exchange rate and fair value

8,041,024



At December 31, 2020

42,249,460



Proceeds

12,548,547



Repayment of principal

(9,925,067

)

Payment of interest

(2,321,868

)

Interest, exchange rate and fair value

3,107,965



At December 31, 2021

45,659,037



Schedule Required to Comply Financial Covenants

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


Debt


Triggers


Ratios

Debenture 1st issue - Cosan S.A.

2.26

Resolution 4,131 - Comgás




1.59

BNDES - Comgás


Net debt(i)/EBITDA(ii) cannot exceed 4.00

Debentures of 5th to 8th issues – Comgás


Debenture of 4th issue – Comgás

Short-term indebtedness/Total indebtedness(iii) cannot exceed 0.6

0.34

Senior Notes Due 2027 – Cosan S.A.


Net debt pro forma(iv)/EBITDA pro forma(ii | iv) not higher than or equal to 3.5

2.11

Senior Notes Due 2029 – Cosan S.A.


Senior Notes Due 2025 – Rumo


Net debt(i)/EBITDA(ii) not higher than or equal to 3.3

2.79

BNDES – Rumo


EBITDA/Consolidated financial result(v) not higher than or equal to 2.0

4.91

(i) Net debt consists of current and non-current debt, net of cash and cash equivalents and marketable securities recorded in these consolidated financial statements. Net debt is a non-GAAP measure.
(ii) Corresponds to the accumulated EBITDA of the last twelve months.
(iii) Indebtedness means the sum of current and noncurrent loans, financing and debentures, leases and current and noncurrent derivative financial instruments.
(iv) Net debt and EBITDA pro forma, including joint ventures financial information. Net debt and EBITDA pro forma are a non-GAAP measure
(v) The consolidated financial result of the debt is represented by the cost of the consolidated net debt.
Summary of lease liabilities

The balance sheet shows the following amounts relating to lease liabilities:

At January 1, 2020

4,594,888


Additions

3,531,470


Interest

606,529


Transfer between liabilities(i)

(111,737

)

Repayment of principal

(5,424,917

)

Payment of interest

(500,922

)

Monetary adjustment

306,536


At December 31, 2020

3,001,847


Business Combination (note 9.3)

3,281


Additions

142,562


Interest

426,313


Transfer between liabilities(i)

(54,139

)

Repayment of principal

(461,040

)

Payment of interest

(165,301

)

Monetary adjustment

374,155


At December 31, 2021

3,267,678


Current

405,820


Non-current

2,861,858


 

(i)      Transfer of railroad concession payable to lease (Note 13).
Summary of impacts on income during the year that were recorded for other lease agreements that were not included in the measurement of lease liabilities

In addition to the payment and appropriation of interest and exchange variation highlighted in the previous tables, the following impacts on income were recorded for other lease agreements that were not included in the measurement of lease liabilities:


 

December 31, 2021

December 31, 2020



December 31, 2019

Variable lease payments not included in the measurement of lease liabilities

35,482

24,045



10,691

Expenses relating to short-term leases

30,507

34,101



37,143

Expenses relating to leases of low-value assets excluding short-term leases of low-value assets

978

1,547



348

 

66,967

59,693



48,182
Summary of carrying amounts of trade payables

The carrying amounts of trade payables are the same as their fair values, due to their short-term nature. Trade payables are generally paid within 30 days of recognition.

 

December 31, 2021



December 31, 2020


Materials and service suppliers

1,847,222



1,675,553


Natural gas and transportation suppliers

1,314,946



780,141


Electricity and transportation suppliers

74,893

141,418


Fuels and lubricants suppliers

118

727


Other

16,325

32,215


 

3,253,504



2,630,054


Schedule of changes in net sector financial asset (liability)

The changes in net sector financial asset (liability) for the year ended December 31, 2021, were as follows:

 

 

Sectorial assets



Sectorial liabilities



Total



At January 01, 2020

—



—



—



Cost of gas (i)

201,346



—



201,346



Tax credits (ii)

—



(565,911

)

(565,911

)

Interest (iii)

13,458



—



13,458



Other revenue (iv)

26,945



—



26,945



At December 31, 2020

241,749



(565,911

)

(324,162

)

Cost of gas (i)

228,153



—



228,153



Tax credits (ii) 

—



(542,962

)

(542,962

)

Interest (iii)

19,699



(263,410

)

(243,711

)

Other revenue (iv)

68,709



—



68,709



At December 31, 2021

558,310



(1,372,283

)

(813,973

)

 

(i)
Refers to the cost of gas purchased higher than that contained in the tariffs, 100% classified in current assets, since ARSESP's resolution provides for tariff recovery on a quarterly basis for the industrial segment, which is a substantial part of the volume of gas distributed by the subsidiary Comgás.



(ii)
Exclusion of the ICMS from the PIS and COFINS calculation basis.



(iii)
Reflect increases in the cost of gas and its transportation cost in accordance with existing gas purchase contracts. 



(iv)

Corresponding to inflation as measured by the General Market Price Index (Índice Geral de Preços – Mercado), or “IGP-M,” for the residential and commercial segments.



Summary of Derivative Financial Instruments

The impact of the hedging instruments on the consolidated statement of financial position is, as follows:

 

Notional



Fair value




December 31, 2021



December 31, 2020



December 31, 2021



December 31, 2020



Exchange rate derivatives

 



 



 



 



Forward agreements(i)

3,313,428



1,656,489



21,305



(10,227

)

Electricity derivatives

 



 



 



 



Forward agreements(ii)

1,407,476



1,354,967



(248,123

)

(189,423

)

Fuel derivatives













Forward agreements

—



13,422



—



(348

)

 

1,407,476



1,368,389



(248,123

)

(189,771

)

Interest rate and exchange rate risk

 



 



 



 



Swap agreements (shares)(iii)

1,074,113



600,000



270,462



79,950



Swap agreements (inflation and interest rate)(iv)

6,590,408



2,229,136



77,913



408,867



Swap agreements (interest rate)(v)

3,019,917



3,399,997



154,654



755,355



Swap agreements (exchange and interest rate)(iv)

13,223,981



10,405,896



3,380,554



6,650,465



 

23,908,419



16,635,029



3,883,583



7,894,637



Total financial instruments

 



 



3,656,765



7,694,639
















Current assets





194,878

587,894

Non-current assets





4,538,048

7,552,806

Current liabilities





(925,650 )
(321,890 )
Non-current liabilities





(150,511 )
(124,171 )
Total





3,656,765

7,694,639

 

(i)
The Company and its subsidiaries TRSP and Moove have forward foreign exchange contracts to hedge exposures and expenses in foreign currency.



(ii)
The subsidiary Compass Gás e Energia has a portfolio of energy contracts (purchase and sale) aimed at meeting demands and offers for consumption or supply of energy. In addition, there is a portfolio of contracts that comprises forward positions, usually short-term. For this portfolio, there is no purchase commitment with a sales contract.



(iii)
During 2021, the Company entered into derivative negotiations, or Total Return Swap, with commercial banks. Under the Total Return Swap, which will have financial settlement, Cosan will receive the return on the variation in the price of CSAN3 shares adjusted by the dividends for the period and will pay annual interest referenced to CDI + Spread. The contracted value of CSAN3 shares with total return swap was 61,983,012 shares and the total initial value is R$1,074,113. Part of these operations are guaranteed by RAIL3 shares of its subsidiary Rumo S.A.. On December 31, the mark-to-market income, recorded in the Company's financial income line, was R$57,704.



(iv)
The subsidiary Rumo contracted interest and exchange swap operations, in order to be assets in USD + fixed interest and liabilities as a percentage of CDI. In the interest and inflation swap operations, the Company is active in IPCA + fixed interest and passive in a percentage of the CDI.



(v)
The subsidiary Rumo contracted interest and exchange swap operations, in order to be assets in USD + fixed interest and liabilities as a percentage of CDI. In the interest and inflation swap operations, the Company is active in IPCA + fixed interest and passive in a percentage of the CDI.
Summary of designated as hedging instruments

 

 



Book value



Accumulated fair value adjustment

 

Notional



December 31, 2021



December 31, 2020



December 31, 2021

December 31, 2020

Interest rate hedge

 



 



 



 





Debenture 3rd issue - 3rd series (Comgás)

—



—



—



—

575


Debenture 5th issue - single series (Comgás)

684,501



(873,474

)

(890,658

)
17,184

(22,040

)

Debenture 9th issue - 1st series (Comgás)

500,000



(484,974

)

—



(484,974 )

—


Debenture 9th issue - 2nd series (Comgás)

500,000



(477,578

)

—



(477,578 )

—


BNDES Project VIII (i)

1,000,000



(921,949

)

—



(921,949 )

—


Debenture (Rumo)

5,530,408



(5,359,574

)

(1,281,278

)
149,491

(239,437

)

Senior notes 2023 (Cosan Luxembourg)

—



—



(569,466

)
(188,083 )

(237,050

)

Debt

8,214,909



(8,117,549

)

(2,741,402

)
(1,905,909 )

(497,952

)

Derivative financial instruments

 



 



 



 





Debenture 3rd issue - 3rd series (Comgás)

—



—



—



—



862

Debenture 5th issue - single series (Comgás)

(684,501

)

(189,928

)

211,741



(401,669

)
10,731

Debenture 9th issue - 1st series (Comgás)

(500,000

)

5,776



—



5,776



—

Debenture 9th issue - 2nd series (Comgás)

(500,000

)

12,939



—



12,939



—

BNDES Project VIII (i)

(1,000,000

)

51,220



—



51,220



—

Debenture (Rumo)

(5,556,236

)

(75,806

)

176,693



(196,959

)
183,595

Senior swaps notes 2023 (Cosan Luxembourg)

—



—



392,899



10,057



(42,532 )

Derivative

(8,240,737

)

(195,799

)

781,333



(518,636

)
152,656

Total

(25,828

)

(8,313,348

)

(1,960,069

)

(2,424,545

)
(345,296 )

  

(i)
In the subsidiary Comgás, the exposure of the BNDES Project VIII debt is substantially protected by the hedge contracted in July 2021, with a portion of less than 3% not protected and for practical purposes its segregation at amortized cost becomes irrelevant.
Schedule of fair value option of financial instruments

The Company chose to designate the protected liabilities (hedge objects) to record at fair value through profit or loss.

 

 

 

 



Book value


 

Accumulated fair value adjustment



 

 

 

Notional



December 31, 2021



December 31, 2020


 

December 31, 2021


 

December 31, 2020



Exchange rate

 

 

 



 



 


 

 


 

 



Objects

 

 

 



 



 


 

 


 

 



Senior Notes 2027

US$+7.0%

 

(3,627,325

)

(4,305,928

)

(4,379,812

)

 

313,052


 

(349,181

)

Export Credit Agreement

EUR + 0.58%

 

(100,198

)

(95,460

)

—


 

(1,337

)

 

—



Resolution 4,131 (Rumo)

US$ + 2.20%

 

(220,000

)

(148,932

)

—


 

4,412


 

—



EIB 3ª Tranche

US$ + LIBOR6M + 0.54%

 

—



—



(30,817

)

 

—


 

156



EIB 4ª Tranche

US$ + LIBOR6M + 0.61%

 

—



—



(57,813

)

 

—


 

308



Resolution 4,131 (Comgás - 2018)

US$ + 3.67%

 

(268,125

)

(438,823

)

(415,232

)

 

(18,230

)

 

(24,247

)

Resolution 4,131 (Comgás - 2020)

US$ + 1.59%

 

—



—



(388,912

)

 

—


 

1,967



Resolution 4,131 (Comgás - 2021)

US$ + 1.36%

 

(407,250

)

(414,378

)

—


 

5,526


 

—



Total

 

 

(4,622,898

)

(5,403,521

)

(5,272,586

)

 

303,423


 

(370,997

)

Derivative instruments

 

 

 



 



 


 

 


 

 



Swap Notes 2027

R$ + 126.85% do CDI

 

3,627,325



2,047,237



2,272,648


 

45,181


 

1,320,629



Inflation and interest rate swaps

R$ + 107% do CDI

 

100,198



30,535



—


 

(3,096

)

 

—



Inflation and interest rate swaps

R$ + 118% do CDI

 

220,000



47,527



—


 

20,019


 

—



EIB 3rd Tranche

R$ + 88.5% do CDI

 

—



—



21,176


 

844


 

24,927



EIB 4th Tranche

R$ + 81.1% do CDI

 

—



—



39,256


 

2,583


 

26,219



Resolution 4,131 (Comgás - 2018)

R$ + 107.9% do CDI

 

268,125



168,358



154,627


 

20,794


 

117,080



Resolution 4,131 (Comgás - 2020)

R$ + CDI + 2.75%

 

—



—



(6,214

)

 

15,711


 

(12,904

)

Resolution 4,131 (Comgás - 2021)

R$ + CDI + 1.25%

 

407,250



(514

)

—


 

(6,628

)

 

—



Derivative total

 

 

4,622,898



2,293,143



2,481,493


 

95,408


 

1,475,951



Total

 

 

—



(3,110,378

)

(2,791,093

)

 

398,831


 

1,104,954



 

 

 

 


 

Book value


 

Accumulated fair value adjustment

 

 

 

Notional


 

December 31, 2021


 

December 31, 2020


 

December 31, 2021


 

December 31, 2020

Interest rate

 

 

 


 

 


 

 


 

 


 

 

Objects

 

 

 


 

 


 

 


 

 


 

 

     Debenture (Rumo)

IPCA + 4,68%

 

(500,000

)

 

(543,752

)

 

—


 

82,474


 

—

     Debenture (Rumo)

IPCA + 4,50%

 

(600,000

)

 

(676,798

)

 

—


 

131,153


 

—

Total

 

 

(1,100,000

)

 

(1,220,550

)

 

—


 

213,627


 

—


Derivative instruments

 

 

 


 

 


 

 


 

 


 

 

Foreign exchange and interest swap

107% CDI

 

500,000


 

71,375


 

—


 

  (11,682

)

 

—

Foreign exchange and interest swap

105% CDI

 

600,000


 

82,344


 

—


 

(41,468

)

 

—

Derivative total

 

 

1,100,000


 

153,719


 

—


 

(53,150

)

 

—

Total

 

 

—


 

(1,066,831

)

 

—


 

160,477


 

—

Summary of Market Value of Senior Notes that are listed on Luxembourg Stock Exchange

The market values of the Senior Notes are listed on the Luxembourg Stock Exchange (Note 6.6) is based on their quoted market price are as follows:

 

Company


December 31, 2021


December 31, 2020


Senior notes 2023

Cosan Luxembourg S.A.


100.26%


101.02%


Senior notes 2024

Rumo Luxembourg S.à r.l.


—


104.17%


Senior notes 2024

Cosan Limited


—


103.22%


Senior notes 2025

Rumo Luxembourg S.à r.l.


103.04%


105.96%


Senior notes 2027

Cosan Luxembourg S.A.


103.79%


108.20%


Senior notes 2028

Rumo Luxembourg S.à r.l.


103.42%


108.75%


Senior notes 2029

Cosan S.A.


104.39%


110.05%


Senior notes 2032

Rumo Luxembourg S.à r.l.


94.34%


— 

Perpetual notes

Cosan Luxembourg S.A.


102.17%


102.88%


Summary of carrying amounts and fair value of financial assets and financial liabilities

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

 

 

 


Carrying amount



Assets and liabilities measured at fair value

 

 


December 31, 2021



December 31, 2020



December 31, 2021

December 31, 2020



 

Note


         Level 1

Level 2 



Level 3 



Level 1



Level 2



Assets

 


 



 






 



 



 



 



Investment funds

6.1


8,103,713



2,155,446




—

8,103,713



—



—



2,155,446



Marketable securities

6.2


4,388,007



3,669,109



                         —

4,388,007



—



—



3,669,109



Other financial assets

 


320,193



69,126



                         —

320,193



—



69,126



—



Investment properties

 


3,886,696



—



                         —

—



3,886,696



—



—



Derivate financial instruments

6.10


4,732,926



8,140,700



                         —

4,732,926



—



—



8,140,700



Total

 


21,431,535



14,034,381



                         —

17,544,839



3,886,696



69,126



13,965,255



Liabilities

 


 



 






 



 



 



 



Loans, borrowings and debentures

6.6


(45,659,037

)

(42,249,460

)

(30,157,655

 )

(20,214,600

)
—

(24,971,099

 )

(18,855,850

)

Consideration payable

 


—



(224,787

)
                         —

—



—

—



(224,787

)

Derivative financial instruments

6.10


(1,076,161

)

(446,061

)
                         —

(1,076,161

)
—

—



(446,061

)

Total

 


(46,735,198

)

(42,920,308

)
(30,157.655 )

(21,290,761

)
—

(24,971,099

 )

(19,526,428

)
Schedule of exposure to financial risks

Risk

Exposure arising from

Measurement

Management

Market risk – foreign exchange

(i) Future commercial transactions. (ii) Recognized financial assets and liabilities not denominated in Brazilian reais.

(i) Cash flow forecasting (ii) Sensitivity analysis

Foreign currency.

Market risk – interest rate

Cash and cash equivalents, marketable securities, loans, borrowings and debentures, leases and derivatives.

(i) Sensitivity analysis

Interest rate Swap.

Market risk - prices

(i) Future commercial transactions.

(i) Cash flow forecasting (ii) Sensitivity analysis

Future electric energy price (purchase and sale).

Credit risk

Cash and cash equivalents, marketable securities, restricted cash, trade receivables, derivatives, receivables from related parties and dividends, and investment property

(i) Aging analysis (ii) Credit ratings

Diversification of bank deposits, credit limits and letters of credit.

Liquidity risk

Loans, borrowings and debentures, trade payables, other financial liabilities, tax installments, leases, derivatives, payables to related parties and dividends.

(i) Rolling cash flow forecasts

Availability of committed credit lines and borrowing facilities.
Schedule of net exposure to the exchange rate variations on assets and liabilities denominated in U.S. dollar and Euro

Net exposure to the exchange rate variations on assets and liabilities denominated in U.S. dollar, British pound and Euro:

 

December 31, 2021



December 31, 2020


Cash and cash equivalents

3,811,598



2,995,284


Trade receivables

93,326



24,619


Trade payables

(4,721

)

(229,750

)

Loans, borrowings and debentures

(19,640,300

)

(25,227,055

)

Leases

(108,365

)

(99,217

)

Contingent consideration

(234,960

)

(224,787

)

Derivative financial instruments

21,105,358



17,981,375


Foreign exchange exposure, net

5,021,936



(4,779,531

 )
Summary of Sensitivity Analysis on Changes in Foreign Exchange Rates Impact on Profit Loss

 


 


 



Variation scenario


Instrument


Risk factor


Probable



25%



50%



(25)%



(50)%


Cash and cash equivalents


Currency fluctuation


81,621



1,054,926



2,028,231



(891,684

)

(1,864,989

)

Trade receivables


Currency fluctuation


76,502



100,347



124,191



52,658



28,813


Trade payables


Currency fluctuation


(1,414

)

(926

)

(438

)

(1,902

)

(2,389)


Derivative financial instruments


Currency fluctuation


2,457,838



3,676,786



6,946,953



(2,863,548

)

(6,133,715

)

Loans, borrowings and debentures


Currency fluctuation


(424,712

)

(7,017,875)



(13,489,738)



5,925,849



12,397,712


Leases


Currency fluctuation


(2,321

)

(29,992

)

(57,663

)

23,351



53,022


Contingent consideration


Currency fluctuation


239,993



299,991



359,989



179,995



119,997


Impacts on profit or loss 

 


2,427,507



(1,916,743

)

(4,088,475

)

2,424,719



4,598,451


Summary of Sensitivity Analysis on Changes in Foreign Exchange Rates

The probable scenario considers the estimated exchange rates, made by a specialized third part, at the due date of the transactions for the companies with functional currency Brazilian reais (positive and negative, before tax effects), as follows:

 


Exchange rate sensitivity analysis (R$/U.S.$) and (R$/€)


 


December 31, 2021



Scenario


 


Probable



25%



50%



(25)%



(50)%


U.S.$


5.5805



5.7000



7.1250



8.5500



4.2750



2.8500


€


6.3210



6.5550



8.1938



9.8325



4.9163



3.2775


£


7.5242



7.9230



9.9038



11.8845



5.9423



3.9615


Summary of sensitivity analysis on interest rates on loans and borrowings which impacts on profit or loss

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

 


 



Variation scenario


Exposure interest rate


Probable



25%



50%



(25)%



(50)%


Cash and cash equivalents


1,623,771



1,995,927



2,385,014



1,423,642



1,116,070


Marketable securities


487,145



598,464



714,627



430,749



340,218


Lease and concession in installments


(121,902

)

(152,377

)

(182,853)



(91,426

)

(60,951

)

Leases


(371,433

)

(371,433

)

(371,433

)

(371,433

)

(371,433

)

Derivative financial instruments


1,327,786



(1,365,311

)

(2,073,012

)

223,066



1,124,171


Loans, borrowings and debentures


(2,244,669

)

(2,760,945

)

(3,184,050

)

(1,914,734

)

(1,491,629

)

Other financial liabilities


(71,996

)

(88,073

)

(104,151

)

(55,918

)

(39,840

)

Impacts on profit or loss


628,702



(2,143,748

)

(2,815,858

)

(356,054

)

616,606


Summary of probable scenario considers the estimated interest rate

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

 

Probable


25%


50%


(25)%


(50)%

SELIC

11.15%


13.94%


16.73%


8.36%


5.58%

CDI

11.15%


13.94%


16.73%


8.36%


5.58%

TJLP462 (TJLP + 1% p.a.)

7.60%


9.25%


10.90%


5.95%


4.30%

TJLP

6.60%


8.25%


9.90%


4.95%


3.30%

IPCA

4.61%


5.76%


6.91%


3.46%


2.30%

IGPM

5.19%


6.48%


7.78%


3.89%


2.59%

Libor

1.16%


1.45%


1.74%


0.87%


0.58%

Fed Funds

0.90%


1.13%


1.35%


0.68%


0.45%
Schedule of outstanding energy trading operations

Statement of financial position balances referring to outstanding energy trading operations are as follows:

 

December 31, 2021



December 31, 2020


 

Assets



Liabilities



Net gain



Assets



Liabilities



Net gain


Electricity trading

69,576



(317,699

)

(248,123

)

96,595



(268,018

)

(189,018

)
Schedule of sensitivity analysis on price risk of energy trading operations

 

 



Variation scenario


 

Probable



25%



50%



(25)%



(50)%


Unrealized loss from electricity trading

(248,123

)

(244,212

)

(240,302

)

(252,034

)

(255,942

)
Schedule of projection of settlement of positions, at nominal value of energy trading operations

The projection of settlement of positions, at nominal value, follows the schedule below:

 

 

 

2022


 

2023


 

2024


 

Above 2025


Positions to be settled

 

(248,115

)

 

(13,822

)

 

1,093


 

12,721


Summary of Credit Risk

The exposure to credit risk was as follows:

 

December 31, 2021



December 31, 2020


Cash and cash equivalents

16,174,130



13,642,918


Trade receivables

2,745,853



2,033,441


Marketable securities

4,388,007



3,669,109


Restricted cash

58,990



—


Derivative financial instruments

4,732,926



8,140,700


Receivables from related parties

416,491



929,690


Dividends receivable

519,965



80,755


Restricted cash

320,193



34,562


 

29,356,555



28,531,175


Summary of Credit Risk Rating

 

December 31, 2021



December 31, 2020


AAA

23,080,390



20,878,272


AA

2,239,266



3,991,846


BBB

34,397



617,171


 

25,354,053



25,487,289


Summary of financial liabilities by due dates based on undiscounted cash flows contracted

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

 

December 31, 2021

 December 31, 2020

 

Up to 1 year



1 - 2 years



3 - 5 years



More than 5 years



Total



Total


Loans, borrowings and debentures

(5,845,774

)

(6,628,072

)

(12,124,037

)

(32,777,404

)

(57,375,287

)

(46,012,176

)

Trade payables

(3,253,504

)

—



—



—



(3,253,504

)

(2,629,734

)

Other financial liabilities

(726,423

)

—



—



—



(726,423

)

(562,763

)

Tax installments - REFIS

(52,805

)

(3,453

)

(1,395

)

(143,011

)

(200,664

)

(203,222

)

Leases

(413,310

)

(413,692

)

(1,133,476

)

(13,671,334

)

(15,631,812

)

(14,348,296

)

Railway concession payable under litigation

(187,972

)

(201,876

)

(198,532

)

(596,696

)

(1,185,076

)

(1,219,188

)

Payables to related parties

(287,609

)

—



—



—



(287,609

)

(315,433

)

Dividends payable

(799,634

)

—



—



—



(799,634

)

(24,238

)

Derivative financial instruments

(1,064,207

)

(1,078

)

1,380,014



5,998,479



6,313,208



3,988,524


Preferred shareholders payable in subsidiaries

—



—



—



—



—



(387,044

)

 

(12,631,238

)

(7,248,171

)

(12,077,426

)

(41,189,966

)

(73,146,801

)

(61,713,570

)