Cosan S A : 4Q21 - Financial Statements

Management Report

Cosan S.A.| December 31, 2021

Cosan S.A.

Management Report

In compliance with the law and its bylaws, Cosan S.A. submits to its shareholders its Management Report and corresponding Financial Statements, accompanied by the Independent Auditor Report, for the fiscal year ended December 31, 2021, which were prepared on a consolidated basis and in Brazilian real, in accordance with the accounting practices adopted in Brazil and international financial reporting standards (IFRS). The Company also makes available a detailed version of its Financial Statements and earnings

release on its website: www.cosan.com.br/en/.

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Management Report

Cosan S.A.| December 31, 2021

Message From the CEO

We ended 2021 with a positive feeling of mission accomplished. The challenges were many: pandemic, high volatility in key macroeconomic indicators and commodity prices, weather effects resulting in crop setbacks, higher interest rates, inflationary pressure and a reduction in economic incentives. At the same time, advances in Covid-19 vaccinations brought hope and optimism, and along with it came the resumption of economic activity. As usual, our teams navigated through this scenario with agility and discipline to maximize short-term results while keeping focus on planning and executing strategic projects that assure value creation in the long term.

We posted record-high results at Cosan: adjusted EBITDA of R$11.9 billion, net income of R$6.3 billion and free cash flow to equity of R$6.1 billion, proving our capacity to overcome adversities with a robust portfolio of businesses, exposed to sectors where Brazil has important competitive advantages.

At Raízen, our expertise in pricing renewable products and sugar, as well as our focus on operational efficiency, more than offset the lower availability of sugarcane and inflation on costs. We integrated Biosev's assets and team in an organic and effective way, expanding our scale and assuring the biomass supply to increasingly produce cleaner energy, such as E2G, biogas and the other alternative energy sources in our portfolio. In Marketing & Services, our integrated platform benefited from the recovery in consumption to leverage sales, as well as using our differentiated logistics infrastructure to maximize gains from the supply and commercialization strategy, in a more favorable operational environment for the segment. We reinforced the capital structure with the IPO last August, to capture concrete growth opportunities.

Compass Gás & Energia closed the year with strong growth in volume across all segments, supported by the ongoing expansion of Comgás' distribution network and the improvement in processes to capture efficiency gains and increase customer satisfaction. The signing of the amendment of the concession agreement extending the services until 2049 was an important milestone for the Company, assuring our commitment with the long-term operation sustainability. In addition, we took the first step in the geographic expansion of Compass, by acquiring Sulgás, located in Rio Grande do Sul state, and we also advanced in the construction of the regas terminal in Santos. To make this journey possible, we strengthened the company's cash position with the entry of new shareholders through private agreements.

Moove kept its accelerated growth pace, delivering record results in the year, thanks to its effective pricing and supply strategy in Brazil and international operations, which already account for nearly half of its revenues.

At Rumo, we adjusted our commercial strategy amid the adversities caused by the corn crop setback by diversifying the cargo mix and expanding our market share in grain exports. Central Network launched its full operation already

with relevant market share, increasing the geographic diversity of our rail network. Looking to the long term, we signed with the State of Mato Grosso an agreement for extending the North Operation up to Lucas do Rio Verde, a transformational project for Brazil's agricultural logistic infrastructure. We also invested in debottlenecking projects at the Port of Santos which, combined with the launch of 120 rail cars trains and new communication and optimization technologies, increased operational efficiency, reducing by more than 10% the transit time and 4% the carbon emissions.

At Cosan Investimentos, this quarter we started consolidating Radar, our land management company, whose portfolio has already shown significant appreciation. With the objective of further accelerate our digitalization process and growth in the logistics sector, Trizy received a capital injection from nstech, Latin America's largest open technology platform for logistics and mobility. Finally, we recently concluded the purchase of TUP Porto São Luis in Maranhão.

Noting the value we see in this portfolio, we recently intensified the capital allocation into our own stocks, grounded on the potential value we see in this portfolio, with nearly R$700 million in share buybacks using total return swaps. We also distributed to our shareholders R$1.2 billion in dividends throughout the year.

On the other hand, given the deterioration in the macroeconomic scenario in 2022, including rising cost of capital and inflation, we adopted a more conservative approach for the Group's investment commitments, to allow us to navigate this challenging environment more comfortably. We will keep our usual capital discipline, making even greater efforts to optimize Capex, increase cost and supply synergies and be more selective in approving and implementing new projects, ensuring the long-term success of the portfolio while maintaining leverage at appropriate levels.

Reviewing our achievements in 2021, none of this would be possible without the commitment and competence of the investees and holding teams. People agenda is our priority. Once again, we achieved great results in safety, a fundamental pillar of our culture. We continue to evolve in diversity equity & inclusion, significantly increasing women participation at all levels of leadership. We still have a lot of work to do on this front, but we have the commitment of the leaders to make it happen.

This year has already started with an intense agenda, aligned with our journey to promote an efficient energy transition, generating and offering alternatives that enable the decarbonization process for our customers, and for the development of cleaner and more reliable logistics, increasing Brazil's competitiveness, aiming to create even more value for our stakeholders. Let's go together!

Warm regards,

Luis Henrique Guimarães

Cosan CEO

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Management Report

Cosan S.A.| December 31, 2021

Executive Summary 4Q21 and 2021

The highlights by business line and pro forma consolidated results of the Company follow.

Raízen:

Agroindustrial Operation: 4Q21 marked the end of the crushing period. As presented in prior quarters, relevant climate effects affected sugarcane fields productivity in the Center-South region. Amid the journey to recover agricultural productivity and efficiency gains, the better performance of Raízen's first cut cane mitigated part of the impacts. In the accumulated period, sugarcane crushing was 76MM ton (- 13%) and agricultural productivity, measured in tons of TRS/ha, dropped 14%. Cash cost was affected by the reduced availability of sugarcane, which led to a lower dilution of fixed costs, and by inflation.

Renewables: Pro forma adjusted EBITDA came to R$1.4 billion in 4Q21 (+31%). The results expansion was supported by better pricing of our products, benefiting from favorable scenario of biofuels, despite lower own volumes sold. Price movements contributed to the expansion of ethanol and energy sales results in the quarter, enhanced by our ability to capture value within our integrated renewable energy platform.

Sugar: Pro forma adjusted EBITDA in 4Q21 reached R$726 million (-37%).Reduction can be explained by the lower sales volume of own products, reflecting the sales strategy for the year, as well as the lower availability of products, in addition to cost pressures. Raízen's strategy to expand its presence in the sugar value chain, associated with the favorable scenario for commodity pricing, resulted in higher sales prices in the quarter.

Marketing & Services: Adjusted EBITDA of the integrated platform totaled R$1.2 billion (+35%), leveraged by better business environment and maximization of profitability, supported by the effective supply and sales strategy in Brazilian operations. In addition, growth sales (+7%) also contributed to the better result, highlighting diesel. In Brazil, the agility in import and optimization of the Company's logistic infrastructure generated good opportunities to recompose the operation returns, ensuring supply to our distribution chain. In the international operations (Argentina and Paraguay), higher demand and expansion of service station network contributed for greater market share and growth in sales volume sold (+22%), despite the lower profitability due to challenges in transferring higher costs.

Compass Gás & Energia:Adjusted EBITDA in the period reached R$608 million (+23%), driven by an increase in natural gas volume distributed by Comgás (+3%). Moreover, 4Q20 was adversely affected by the noncash effect from the mark-to-marketadjustment of power trading agreements. These effects were partially offset by the concentration of expenses at Comgás and Compass holding in the period. In 2021, adjusted EBITDA was a record R$2.7 billion (+24%), in line with the guidance for the year, reflecting economic recovery and Comgás customer base expansion, in addition to adjustments of margins by inflation.

Moove: EBITDA came in R$110 million (-24%),reflecting the 26% reduction in sales volume. In the year, EBITDA was a record R$603 million (+26%), evidencing the assertiveness of the pricing and supply strategy, neutralizing the strong pressure on costs and restrictions on raw materials supply in the global market in 2021.

Rumo: In the quarter, adjusted EBITDA was R$419 million (-45%),still reflecting the corn crop setback, which led to a reduction of 2% in volume transported. Despite the challenging scenario, Rumo adjusted its sales strategy and gained 3.1 p.p. market share at the Port of Santos (SP). As a result, the average tariff practiced declined 6%, which, combined with the 7% increase in variable costs due to higher diesel prices, pressured EBITDA margins, totaling 28%, a reduction of 18 p.p.. Adjusted EBITDA in 2021 totaled R$3.3 billion (-6%),mainly explained by impacts on crop, attenuated by the Company's efforts to expand its market share, diversify its cargo mix and by the startup of Central Network.

Cosan Consolidated (Pro forma): Adjusted EBITDA in 4Q21 was R$2.8 billion (-6%),reflecting the lower contribution by Rumo. Meanwhile, adjusted net income was R$411 million (+59%), driven by the better performance of Compass. Free Cash Flow to Equity (FCFE) was R$694 million (+4x), due to the higher operating cash generation at Raízen. The net debt/EBITDA ratio ended the period stable at 2.1x. In fiscal year 2021, Cosan reported record EBITDA of R$11.9 billion (+18%) and net income of R$2.7 billion (+92%), both adjusted by non-recurringeffects, and FCFE of R$6.1 billion (+15%), in line with growth plans of the subsidiaries, partially offset by short-termadversities faced by Rumo. Including one-offs,net income in the year was R$6.3 billion (+7x), the Company's highest ever.

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Management Report

Cosan S.A.| December 31, 2021

Annual Results

Cosan Consolidated

The financial information of Cosan Consolidated considers 100% of the results of Compass Gás & Energia, Moove, Rumo, Cosan Investimentos and Cosan Corporate, irrespective of the stake held by Cosan, except in the case of Raízen, whose its 44% interest in net income are recognized at Equity Pick-up line. The line "Adjustments and Eliminations" reflect the eliminations of the operations of all businesses controlled by Cosan for consolidation purposes.

Note that, effective from March 2021, the information in the Financial Statements of the Company includes the results of Rumo, as well as the operating and financial expenses of the merged holding companies Cosan Logística S.A. and Cosan Limited, in accordance with the Corporate Restructuring.

The presentation of EBITDA in this report complies with CVM Instruction 527/12, of October 4, 2012, issued by the Securities and Exchange Commission of Brazil (CVM), and may differ from the amounts presented in prior periods due to the adjustment of Equity Pick-up line. Accordingly, EBITDA comprises operating profit before financial expenses, depreciation and amortization and is added to Equity Pick-up.

Indicators	2021	2020	Chg.%
BRL mln	(jan-dec)	(jan-dec)	2021x2020
EBITDA	10,897.8	3,052.3	+3.6x
Investments	4,545.5	1,061.0	+4.3x
Income Statement for the Period	2021	2020	Chg.%
BRL mln	(jan-dec)	(jan-dec)	2021x2020
Net Revenue	24,907.1	13,508.8	84.4%
Cost of Goods and Services Sold	(18,568.1)	(9,816.1)	89.2%
Gross profit	6,339.1	3,692.7	71.7%
Selling, general & administrative expenses	(2,770.0)	(1,993.9)	38.9%
Other net operating income (expenses)	387.4	71.7	+5.4x
Financial results	(2,776.3)	(1,262.6)	+2.2x
Equity Pick-up	4,719.8	598.8	+7.9x
Expenses with income and social contribution taxes	450.8	(257.8)	-75%
Non-controlling interest	(227.6)	(56.9)	+4.0x
Net Income	6,123.2	851.9	+7.2x

Due to the adoption of IFRS 11 - Joint arrangements since April 2013, Cosan no longer consolidates Raízen's results in its balance sheet, income statement and cash flow statement and the result of this business unit is reported only at "Equity Pick-up line." However, this segment is relevant to Cosan and its individual financial information is available on Raízen's investor relations website (https://ri.raizen.com.br/en).

Results by Business Unit		Compass						Cosan	Cosan		Adjustments	Cosan
		Gás &		Moove		Rumo			and	Consolidated
2021					Investmentos¹	Corporate
	Energia							Elimination	Accounting
Net Revenue		12,330.2		6,112.5		6,479.0		31.5	4.5		(50.5)	24,907.1
Cost of Goods and Services Sold		(9,200.2)		(4,808.6)		(4,605.2)		(0.0)	(4.5)		50.5	(18,568.0)
Gross Profit		3,130.0		1,303.8		1,873.8		31.5	(0.0)		0.0	6,339.1
Gross Margin (%)		25.4%		21.3%		28.9%		100.0%	-1.0%		0.0%	25.5%
Selling Expenses		(125.4)		(551.5)		(32.5)		-	(6.7)		-	(716.2)
General and Administrative Expenses		(1,057.2)		(269.8)		(405.4)		(6.5)	(314.8)		0.0	(2,053.8)
Other Operating Income (Expenses)		25.6		23.4		(64.2)		21.0	381.6		0.0	387.4
Equity Pick-up		(0.0)		0.0		11.8		(0.0)	6,596.8		(1,888.8)	4,719.8
Depreciation and Amortization		560.0		96.9		1,548.3		0.0	16.4		(0.0)	2,221.5
EBITDA		2,532.9		602.8		2,931.8		46.1	6,673.2		(1,888.8)	10,897.8
EBITDA Margin (%)		20.5%		9.9%		45.3%		n/a	n/a		n/a	43.8%
Financial Result		(289.6)		(63.8)		(1,330.7)		3.2	(1,095.3)		0.0	(2,776.3)
Income and Social Contribution Taxes		59.4		(147.1)		(13.8)		(4.2)	556.5		0.0	450.8
Non-controlling Interest		(91.9)		(89.8)		(28.5)		(22.5)	5.2		-	(227.6)
Net Income		1,650.7		205.1		10.5		22.5	6,123.2		(1,888.8)	6,123.2

Note 1: Includes two months of Radar's results.

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Management Report

Cosan S.A.| December 31, 2021

PROPOSAL FOR RETENTION OF EARNINGS

In the fiscal year ended on December 31, 2021, net income was allocated to the payment of the minimum mandatory dividend required by Brazilian Federal Law 6,404/76, with the remaining balance allocated to the statutory reserve to reinforce working capital and fund the maintenance, expansion and development of the activities encompassed by the corporate purpose of the Company and/or its subsidiaries. The allocation of profits, dividends and profit reserve surpluses will be discussed and voted on by shareholders in the Annual Shareholders Meeting, expected to be held on April 29, 2022.

COMMITMENT TO SUSTAINABILITY

To Cosan, sustainability is a growth driver that guides its decision-making and capital allocations in its portfolio with the aim of meeting society's current needs without compromising the availability of natural resources for future generations, perpetuating its business model in the long run.

In line with the strengthening of governance, the Strategy and Sustainability Committee was created to support the Board of Directors in enhancing and developing the strategic sustainability plans of the Cosan Group. The Company's guidelines also include a Sustainability Policy, approved by the Board of Directors that establishes all the principles that guide its actions, as well as the sustainability practices that must be present in the businesses' governance.

Guided by its materiality matrix, the holding company manages economic, environmental, social and governance factors that could impact its activities, besides significantly influencing the opinions and decisions of stakeholders through the framework of the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB), guidelines that measure these factors and are directly linked to attracting investment and creating financial value.

In 2021, Cosan continued to report to the Dow Jones Sustainability Index (DJSI) and, for the second straight year, was selected to be part of the Corporate Sustainability Index (ISE) and Carbon Efficient Index (ICO2) of the São Paulo Stock Exchange (B3). In January 2022, Rumo also became part of the ISE portfolio, being the only logistics company in the current portfolio. Furthermore, Cosan and the companies in its permanent portfolio improved their performance on the questionnaire of the Carbon Disclosure Project (CDP), and Cosan was once again selected as part of the Bloomberg Gender-Equality Index (GEI) and the S&P/B3 Brazil ESG Index.

Lastly, this year Cosan also became a signatory to the "Entrepreneurs for the Climate" manifesto organized by the Brazilian Business Council on Sustainable Development (CEBDS), through which it undertook to address climate challenges and help Brazil play a lead role in the global effort towards a low carbon economy.

To learn more about Cosan's sustainability practices, please visit: https://www.cosan.com.br/en/about-cosan/sustainability/

HUMAN CAPITAL

The Company considers its human resources policy an integral part of its corporate strategy, seeking to ensure the conditions for effectively attracting and engaging people.

On December 31, 2021, the Company had 41,763 employees, including Raízen. All our employees, including migrant and temporary rural workers, are hired directly under the Brazilian Labor Code (CLT).

Company	Total of Employees
Cosan S.A.	129
Compass Gás & Energia	66
Comgás	1,105
Raízen	30,963
Moove	1,169
Rumo	8,331
Total	41,763

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