www.cosan.com.br

Our Business, Challenges And Opportunities

www.cosan.com.br

IntroductionFor more information2011/12 Annual Report www.cosan.com.br

Contact InfoCorporate Communicationse-mail: falecosan@cosan.com.brAddress: Avenida Presidente Juscelino Kubitschek, 1327 4º andar, São Paulo SP – CEP 04543-011Phone: +55 (11) 3897-9797

Investor Relationse-mail: ri@cosan.com.brSite: www.cosan.com.br/riPhone: +55 (11) 3897-9797

Produced in October 2012

Credits Executive Edition Corporate Communications

Writing and editing Report Sustentabilidade Graphic design and print production Report Sustentabilidade

Pictures Ricardo Teles Tuca Reines Frederico Bailoni

Printing and Finishing Stilgraf Paper Cover – Duodesign, 300 g/m2

Inside – Evenglow Opalina Diamond, 120 g/m2

Typeface Museo Sans, Jos Buivenga, 2008

We would like to thank our employees who granted images for this publication.

Cosan is undergoing significant change, with a new vision, new outlooks and a new strategic design.

This publication provides a brief overview of the company and its transformations toward building today’s Cosan, focused on the infrastructure and energy sectors. It presents our businesses and their contributions for the solidity of our company.

Introduction

It also addresses the sustainability model under implementation. The model considers corporate risk, governance, reputation and operations to consolidate this matter as a strategic element within the company.

We increasingly seek coherence and balance between our goals and practices. This is our commitment.

Marcos Marinho Lutz Cosan Group CEO

2012 1

Growing with diversification The capacity to integrate different businesses, manage them efficiently and grow solidly

2 Cosan Overview

Sugarcane is at the origin of Cosan’s business. Since 1936, when the company’s first plant was founded in Piracicaba, São Paulo State, the Organization has grown in size, earnings and diversity of operations.

The ability to perceive and quickly take advantage of opportunities stemming from its business – sugarcane – and quality of relationships established throughout the years have allowed the expansion of operations and portfolio, attracted different investor profiles and increased access to capital.

About Cosan2012 3

Strategic managementCosan’s management is committed to monitoring fast market changes and opportunities for growth and value generation.

This management, both bold and responsible, is conducted by a team of experienced and skilled professionals from the company’s various areas of operation. Professional qualification was one of Cosan’s pioneering actions in the sugar-energy in-dustry, which was dominated by family businesses. This boldness was revealed when the Group went public in 2005 on the São Paulo Stock Exchange (currently BM&FBovespa), being listed on the highest level of corporate governance, the Novo

Mercado. Two years later, in 2007, its controlling shareholder, Cosan Limited, was listed on the New York Stock Exchange (NYSE). It was the first com-pany controlled by a Brazilian group to have assets directly traded on the NYSE.

The company experienced significant growth with the business portfolio created throughout the last decade, supported by investments that seek a robust and sta-ble cash flow, in addition to constant value generation for its stakeholders. In its strategic planning, Cosan considers six major action fronts for its business: growth, efficiency, internationalization, innovation, sustainability and strong corporate reputation.

4 Cosan Overview

Strategic management2012 5

1936 Foundation of Costa Pinto Mill, in Piracicaba (SP)

2000 Official foundation of Cosan S/A

2002 Acquisition of Da Barra Mill

2005 IPO on BM&FBovespa (US$400 million)

2008 Acquisition of Esso in Brazil. Launch of Radar. Creation of Rumo Logística

0.5 1.4 2.56.3

Key strategic operations(Net Revenue in R$ Billion)

6 Cosan Overview

2010 Partnership agreement with Shell in the sugar, ethanol and fuel distribution businesses

2011 Start-up of Raízen, a joint venture between Cosan and Shell. Internationalization of Cosan Lubrificantes e Especialidades

2012 Final agreement for the acquisition of 60.1% of Comgás’ capital stock. Acquisition of Comma Oil & Chemicals Limited in the U.K. Announcement of the company’s intention to take part in the control block of América Latina Logística (ALL). Sale of Cosan Alimentos to Camil

2009 Acquisition of Novamérica, including União brand

*Estimate for the 2012/13 crop (April 1, 2012 to March 31, 2013)

15.418.1

24.126 to 29*

Company history 2012 7

A trajectory of value generationWith vision to perceive opportunities and boldness to diversify investments, Cosan started focusing on businesses that contribute to strengthening sectors that are vital for the country’s develop-ment, such as the infrastructure sector. Opera-tions throughout its history show that the or-ganization was able to absorb the best aspects of each segment, doing so while integrating and strengthening various cultures. The recent acquisi-tion of 60.1% of Comgás’ capital stock is a strate-gic action that strengthens this business line.

The creation and acquisition of new businesses at Cosan were always based on spotting growth opportunities and on risk mitigation. An example of that was the creation of Rumo Logística, which has shown through its performance that it is possible to move forward in sectors seen as bottlenecks for Brazilian development and increase the efficiency of our exports.

In another action focused on growth, effi-ciency and value generation in its operations,

in February of 2012, the company announced its intention to become one of the controlling shareholders of América Latina Logística (ALL), offering R$897 million to acquire a 49.1% stake in the control block (the equivalent to 5.7% of the total capital).

After beginning the exclusive distribution of Mobil lubricants to Bolivia, Paraguay and Uruguay in 2011, in March of 2012 the comapny announced its entrance in the European lubricants and auto-motive specialites market through the acquisition of Comma Oil and Chemicals Limited. Cosan’s quality and consistency in its relationships, in addi-tion to its renowned management capacity, were key factors in the consolidation of this agreement.

With the purpose of strengthening our position-ing and focus our business portfolio to execute our strategic plan in the infrastructure and energy sectors, in October of 2012 we conclud-ed negotiations with Camil to sell the Cosan Alimentos retail sugar operation.

8 Cosan Overview

A trajectory of value generation

Rumo LogísticaSugar logistics

Cosan LELubricants and

Specialties

RadarAgricultural real estate

Raízen EnergiaSugar, ethanol

and co-generation

ComgásDistribution of

natural gas

Raízen Combustíveis

Fuel Distribution

2012 9

Cosan’s business

Purchase and ma-nagement of land for sugarcane, corn, cotton and soybean plantations

Railroad transportation of sugar and other bulk products from upstate São Paulo to the Port of Santos

Sugar, ethanol and biomass production

Manufacturing and distribution of Mobil braded lubricants in Brazil and exports to Bolivia, Paraguay and Uruguay. Production and distribution of lubricants and ancillary automotive products in the U.K. and exports to Europe and Asia

10 Cosan Overview

Cosan’s business

4,600 fuel distribution stations throughout Brazil

8,000 km of natural gas distribution network to more than 1 million consumers - residential, commercial and industrial – in 70 cities

Distribution of aviation fuel in 54 airports

Shipping potential of more than 14 million tonnes of sugar and other bulk products for export from the Port of Santos

2012 11

76 years of history

Net revenue of

R$24.1 billion in the 2011/12 fiscal year, up

33.4% when compared to the previous year

12 Cosan Overview

Strategic management

Stock up 37% from January to September of 2012

Payment of

R$250 million in dividends to shareholders

Listed on the

highest level of corporate governance on the BM&FBovespa (Novo Mercado)

2012 13

RumoWith services in multimodal transport, storage and port loading, Rumo is the world’s largest logistics company in terms of sugar exports

Rumo

Rumo is the world’s largest sugar export logistics company.

Through six transhipment terminals located in Sumaré, Jaú, Fernandópolis, Barretos Pradópolis, Itirapina in upstate São Paulo and the a port termi-nal in Santos, upstate São Paulo, the company has a warehousing capacity of more than one million tonnes of sugar or other bulk products.

Between 2010 and 2015, the company will invest R$1.5 billion mainly in migrating sugar transport to primarily railroads rather than highways. As a result, approximately 30 thousand trucks per month will no longer circulate on the highways which connect upstate São Paulo to its coast. Goal is to transport 11 million tonnes by rail each year, 6 million tonnes more than today, by 2014. Through a partnership, Rumo uses railroads under the concession of América Latina Logística (ALL) and is investing to increase its rail trans-portation capacity from Itirapina to Santos.

Technological forefrontThe Itirapina terminal is strategically located to serve all the region’s principal railroads. The R$200 million investment placed the terminal at the industry’s technological forefront. The terminal is equipped with special systems to maintain the quality standards of the transported product. Its climate-controlled warehouses also have stock protection technology to minimize losses caused by dissolution or air dispersion. The company’s initiatives are in line with the São Paulo State Policy for Climate Change, which provides for a 20% reduction in carbon dioxide emissions in the state by 2020. In addition to the terminal, the region will benefit from the construction of an amphitheater.Furthermore, in partnership with the Board of Education of Itirapina, Rumo will promote the expansion of the municipal library.

152012

Global logistics leader in sugar for export Higher capacity for rail and road unloading at the Port of Santos Investment of R$1.5 billion in logistics infrastructure Warehousing capacity of more than 1,100 thousand tonnes for bulk and sacked products

Rumo highlights

16 Cosan Overview

Rumo Logística

Investment of R$200 million to build the Itirapina terminal, the most modern logistics complex in Brazil Pioneer in the project for total roofing of the Port of Santos’ mooring dock, allowing for operation in the rain The largest intermodal terminal network in Brazil for sugar export logistics

Rumo2012 17

Rumo’s Footprint in Brazil

Fernadópolis

18 Cosan Overview

Rumo

Port of Santos

São Paulo

Railroad linesSections in expansionSugar millsProprietary and partner terminalsMain highways

Sumaré

* Rumo exports sugar produced by mills in south-central Brazil through the Port of Santos.

Barretos

Pradópolis

ItirapinaJaú

2012 19

Cosan Lubrificantes e EspecialidadesDiversifies portfolio and keeps conquering new markets

Cosan Lubrificantes e Especialidades

In 2008, Cosan acquired the assets of ExxonMobil in Brazil and started operating in the lubricants and specialties market under the Mobil brand. At the end of the 2011/12 fiscal year, Cosan LE had 15.2% market share, becoming the second largest player in the Brazilian lubricants market.

The Cosan LE plant, located on Ilha do Governador, Rio de Janeiro State has its own pier to receive ships of up to 20,000 tonnes and produces more than 1 million barrels of lubricants every year, in addition to special application products like greases and cutting fluids.

In 2011, the company assumed the distribution of ExxonMobil base oils in Brazil, increasing its business portfolio. In the same year, it acquired exclusive rights to distribute Mobil branded lubricants to Bolivia, Para-guay and Uruguay.

March of 2012, Cosan LE entered the European market with the acquisition of Comma Oil & Chemi-cals Limited, which includes the blending and filling operation at the Gravesend site in Kent, U.K. Through this factory, the company produces and distributes lubricants and ancillary automotive products, such as anti-freeze, coolants, de-icer and brake fluids in the U.K. market and export to more than 40 European and Asian countries. The distribution of Mobil branded lubricants via specific U.K. channels is also part of Comma’s activities.

No accidents resulting in leaveAugust of 2012, Cosan LE achieved the landmark of 16 years without accidents resulting in leave in its operations. That is almost 6 thousand work days operating safely.

Another new business developed in 2012 was the agreement with South Korean S-Oil for commer-cialization and representation of the Ultra-S brand of G-III base oils in Brazil – an input used mainly to manufacture high-technology synthetic and semi-synthetic lubricants.

Focusing on innovation, Cosan LE has established a joint venture with Amyris, forming Novvi. The main objective of this business is research and development of renewable, high-performance base oils made from sugarcane juice.

Through innovative solutions and advanced technol-ogy, Cosan LE offers clients products and services that can increase efficiency, productivity and savings. The better the protection provided by the lubri-cant, the greater the productivity and useful life of machines and equipment. Likewise, the longer the interval between oil changes, the less waste gener-ated. This focus on more efficient and productive operations, together with the fundamental value of strict safety, is an example of sustainable operation.

* According to the National Fuel and Lubricant Distributors’ Association (Sindicom)

2012 21

In the 2011/12 fiscal year, the company had a 15.2% market share* becoming the second largest lubricant player in Brazil

Produces more than 1 million barrels of Mobil branded lubricants per year, exporting to Paraguay, Uruguay and Bolivia

Brazil’s largest importer of base oils

Cosan LE highlights

* According to the National Fuel and Lubricant Distributors’ Association (Sindicom)

22 Cosan Overview

With the acquisition of Comma, located in England, it produces and distributes lubricants and ancillary automotive products for more than 40 European and Asia countries

Creation of Novvi, focusing on the research and development of renewable synthetic base oils made from sugarcane juice

Cosan Lubrificantes e Especialidades2012 23

AMPE

RJ

1

2

3

4

Cosan LE OperationsBrazil [1]

ExportsBolivia [2], Paraguay [3] and Uruguay [4]

Distribution centersAmazonas [AM], Pernambuco [PE] and  Rio de Janeiro [RJ]

Rio de Janeiro plant

Cosan LE

24 Cosan Overview

Cosan Lubrificantes e Especialidades

Comma OperationsU.K. [5]

Kent plant

Comma ExportsVia Comma, Cosan LE exports to more than 40 European and Asian countries

5

2012 25

RadarThe company manages approximately 150 thousand hectares of land for planting sugarcane, soybeans, cotton and corn

Radar

Founded in 2008, Radar seeks investment opportuni-ties in agricultural properties in Brazil with high ap-preciation potential, making acquisitions and leasing them to large industry players. Since 2008, Radar has invested R$1.4 billion in land, leased for the planting of sugarcane, soybeans, corn and cotton. The com-pany currently manages about 150 thousand hec-tares in the states of São Paulo, Goiás, Mato Grosso, Mato Grosso do Sul, Maranhão, Bahia and Piauí.

Sustainable practicesIn 2011, Radar began structuring its sustainability program to make the company more resilient and competitive through good practices and a stra-tegic position in the industry. The works carried out in partnership with Uniethos, an entity that provides education and guidance on sustainability created by the Ethos Institute, include the engage-ment of all employees and the collection and compilation of the Ethos Indicators - a manage-ment tool for diagnosis and planning of Corpo-rate Social Responsibility practices (CSR). After analysis, strategic actions were determined for the implementation of advances in issues identified throughout the diagnostic process.

Radar’s Presence in Brazil

MT

SP

MA

BA

PI

MS

GO

2012 27

Currently manages about 150 thousand hectares in the states of São Paulo, Goiás, Mato Grosso, Mato Grosso do Sul, Maranhão, Bahia and Piauí Establishes benchmark sustainability standards in its relationships with agricultural operators of the properties it manages

Radar highlights

28 Cosan Overview

Radar

Uses a land monitoring system via satellite, which allows for detailed analysis of the terrain and physical and climate characteristics Conducts plant classification for an environmental diagnosis of approximately 110 thousand hectares of agricultural areas in São Paulo State

2012 29

RaízenProduces more than 2 billion liters of ethanol and 4 million tonnes of sugar per year

Raízen

One of the world’s largest sugar and ethanol exporters, Raízen is responsible for producing more than 2 billion liters of anhydrous and hydrous ethanol per year and 4 million tonnes of sugar. The company began operating in June of 2011. It currently has around 4,600 service stations throughout Brazil, 700 convenience stores, 57 distribution terminals and presence in 54 airports in the aviation fuel business.

With an installed capacity of 900 MW, it is the world’s largest generator of electric energy from sugarcane bagasse. In co-generation, the bagasse disposed of during the crushing process is used to fire boilers for the production of steam and en-ergy. Raízen’s 24 plants are self-sufficient in en-ergy and 11 of these plants sell the excess energy directly to factories or on auctions promoted by the federal government. According to the Sugarcane Industry Association - Unica, electric energy from co-generation through the burning of sugarcane ba-gasse will provide 15% of Brazil’s electricity by 2020.

International certificationIn 2011, the São Paulo plants Maracaí (the world’s first accredited plant), Bom Retiro and Costa Pinto, in addition to the Jataí plant in Goiás State, were accredited by Bonsucro™, which acknowledges and certifies good social-environmental practices of the sugar-energy industry. Being assessed by Bonsucro™ - a non-profit global initiative - is a European Union (EU) requirement for sugar and ethanol exporters.

Raízen’s Footprint in Brazil

Service stationsAirports in the aviation fuel businessUsinasConvenience stores

2012 31

Largest company in the renewable energy sector, operating in various links of the production chain

One of Brazil’s largest fuel distributors, with 21 billion liters sold in 2011/12 under the Shell and Esso branded network

Largest sugar, ethanol and energy co-generation producer in Brazil, and one of the largest in the world, with a crushing capacity of 65 million tonnes of sugarcane in the 2011/12 crop

Raízen highlights

32 Cosan Overview

Raízen

Production of more than 2 billion liters of anhydrous and hydrous ethanol per year and 4 million tonnes of sugar

Has 24 plants in Brazil that are self-sufficient in energy

The first company in the world to have a plant accredited by Bonsucro, which acknowledges and certifies good social-environmental practices in the sugar-energy industry

2012 33

ResultsCosan’s performance reflects the excellence of its management, which values innovation, independence and creativity

Overview34 Cosan

Results2012 35

(569.0) (885.0)

Net Revenue (R$ Million)

24,096.9

18,063.5

6,389.2

4,081.5

10,966.218,556.5

829.1

1,065.5706.4

448.0

572.0+33.4%

Net revenue was 33.4% higher in the 2011/12 fiscal year (April 1, 2011 to March 31, 2012) when compared to 2010/11 (April 1, 2010 to March 31, 2011), reaching R$24.1 billion.

2011/122010/11

RumoOther businessesCosan Alimentos*Raízen CombustíveisRaízen EnergiaEliminations

* In 2010/11, Cosan Alimentos was part of Raízen Energia.

36 Cosan Overview

Results

2011/122010/11

Net Income (R$ Million)Net income increased by 237.7% in the same period to more than R$2.6 billion, of which R$2.2 billion was derived from the foundation of Raízen. Excluding the effect of the foundation of Raízen, adjusted net income would be R$421.9 million - a 45.3% decrease when compared to 2010/11.

+237.7%

771.6

2,605.8

2012 37

*Other businesses: Cosan Lubrificantes e Especialidades and corporate structures.

Note: All of the information reflects 100% of the financial performance of business units, regardless of Cosan’s participation. The results of business units of Raízen Combustíveis and Cosan Alimentos are pro forma, to allow for comparison between the periods.

RESULTS BY BUSINESS UNIT 2011/12

(R$ BILLION) Raízen Energia

Raízen Combustíveis

(pro forma)

Cosan Alimentos

(pro forma)Rumo

Other businesses

Net operating revenue 7,247.7 39,691.8 941.6 572.0 1,065.5

Cost of goods and services (5,578.3) (37,455.7) (752.5) (394.1) (732.9)

Gross profit (loss) 1,669.4 2,236.1 189.1 177.9 332.6

Gross margin (%) 23.0% 5.6% 20.1% 31.1% 31.2%

Selling expenses (511.4) (1,209.6) (110.6) - (187.5)

General and administrative expenses (454.0) (382.0) (17.7) (41.6) (132.8)

Other operating revenues (expenses) (18.2) 283.3 6.8 19.5 (11.9)

Effects of the foundation of Raízen - - - - 3,196.6

Depreciation and amortization 1,550.0 377.1 1.7 57.3 48.4

EBITDA 2,235.7 1,304.9 69.3 213.2 3,245.3

EBITDA Margin (%) 30.8% 3.3% 7.4% 37.3% 304.6%

EBITDA Margin (R$/m3) - 62.4 - - -

Adjusted EBITDA 2,235.7 1,304.9 69.3 213.2 48.7

Adjusted EBITDA margin (%) 30.8% 3.3% 7.4% 37.3% 4.6%

38 Cosan Overview

Results

EBITDACosan’s EBITDA guidance** for the 2012/13 fiscal year

*Raízen fuels and Cosan lubricants.

**Considering the participation of Comgás, new operations of Cosan Lubrificantes e Especialidades and the sale of Cosan Alimentos.

Comgás RumoSugar and ethanolCo-generationFuels and lubricants*

33.1%

8%31%

3.4%

24.5%

2012 39

Commitment to sustainability

40 Cosan Overview

41Commitment to sustainability

With its recent actions, Cosan reinforces its commitment to value generation through the quality of its operations and responsible growth. Based on this commitment, it has established sustainability as one of its strategic drivers.

We will strengthen the consistent development of our business by rooting sustainability within the organization, identifying critical issues for management and adopting the best mechanisms and practices to face our challenges and take advantage of opportunities.

2012

Building the sustainability management

model

Verificationand reporting

Diagnosisand evaluation

Guidelines and strategies

Implementation and monitoring

42 Cosan Overview

Sustainability management modelTo develop a more critical view of our operations, we developed a management model focusing on sustainability (see image on the next page). Based on this model, Cosan will create solutions that will contribute to the progress of our corporation and its business.

Cosan believes that sustainability management is connected to a global agenda, which includes

the management of risks, financial and environmental impacts, human rights, work rela-tions and all kinds of relationships to which the company is exposed.

This model is connected to issues of corporate identity, corporate risk management and governance and may be replicated for future Group businesses.

Commitment to sustainability2012 43

Corporate Working Group

Radar Working Group

Cosan LE Working Group

Rumo Working Group

To develop a comprehensive and inclusive pro-cess in all businesses, the sustainability manage-ment model was prepared by leaders from all Group companies, in addition to a team that will represent the corporate structure.

The model was built on a diagnosis and analysis of current practices, sensitive issues and improve-ment opportunities for the establishment of sus-tainability guidelines for Cosan and its companies.

The management model established the govern-ance structure, which will be comprised of the Business Working Groups (Business WG) and Corporate Working Group (Corporate WG).

The Business WGs are comprised of representa-tives of the finance, human resources and QHSE di-visions, as well as other key areas of each business.

The Corporate WG will be comprised of corpo-rate divisions and representatives of Rumo Logís-tica, Radar Propriedades Agrícolas and Cosan Lubrificantes e Especialidades.

44 Cosan Overview

IntroductionFor more information2011/12 Annual Report www.cosan.com.br

Contact InfoCorporate Communicationse-mail: falecosan@cosan.com.brAddress: Avenida Presidente Juscelino Kubitschek, 1327 4º andar, São Paulo SP – CEP 04543-011Phone: +55 (11) 3897-9797

Investor Relationse-mail: ri@cosan.com.brSite: www.cosan.com.br/riPhone: +55 (11) 3897-9797

Produced in October 2012

Credits Executive Edition Corporate Communications

Writing and editing Report Sustentabilidade Graphic design and print production Report Sustentabilidade

Pictures Ricardo Teles Tuca Reines Frederico Bailoni

Printing and Finishing Stilgraf Paper Cover – Duodesign, 300 g/m2

Inside – Evenglow Opalina Diamond, 120 g/m2

Typeface Museo Sans, Jos Buivenga, 2008

We would like to thank our employees who granted images for this publication.

www.cosan.com.br

Our Business, Challenges And Opportunities

www.cosan.com.br