Companhia Mineira de Açúcar e Álcool...

Companhia Mineira de Açúcar e Álcool Participações

Quarterly Information - ITR

at June 30, 2020

Contents Independent auditor’s review report on quarterly information 1

Statements of financial position 3

Statements of profit or loss 5

Statements of comprehensive income (loss) 6

Statements of changes in equity 7

Statements of cash flows - indirect method 8

Statements of value added 9

Notes to quarterly information 10

1

Ed. Walk Bueno Business Rua T-55 esq. Com T-30, 930 - 11o Andar Setor Bueno 74,215-17 – Goiânia, GO, Brasil Tel: +55 62 3605 1100 www.ey.com.br

A free translation from Portuguese into English of Independent auditor’s review report on quarterly information prepared in Brazilian currency in accordance with the Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410) and with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Quarterly Information Form (ITR)

Independent auditor’s review report on quarterly information To the Shareholders, Board of Directors and Officers of Companhia Mineira de Açúcar e Álcool Participações Uberaba - MG Introduction We have reviewed the accompanying individual and consolidated interim financial information of Companhia Mineira de Açúcar e Álcool Participações (“Company”), contained in the Quarterly Information Form (ITR) for the quarter ended June 30, 2020, comprising the statement of financial position as of June 30, 2020 and the related statements of profit or loss, of comprehensive income, of changes in equity and of cash flows for the three-month period then ended, including the explanatory notes. Management is responsible for preparation of the individual and consolidated interim financial information in accordance with Accounting Pronouncement NBC TG 21 - Interim Financial Reporting and IAS 34 - Interim Financial Reporting issued by the International Accounting Standards Board (IASB), as well as for the presentation of this information in conformity with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review We conducted our review in accordance with Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion on the individual and consolidated interim financial information Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual and consolidated interim financial information included in the quarterly information referred to above were not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of Quarterly Information Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).

2

Other matters Statements of value added The abovementioned quarterly information include the individual and consolidated statement of value added (SVA) for the three-month period ended June 30, 2020, prepared under Company’s Management responsibility and presented as supplementary information by IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and accounting records, as applicable, and if its format and content are in accordance with the criteria set forth by NBC TG 09 – Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, consistently with overall individual and consolidated interim financial information. Goiânia, August 28, 2020.

Wagner dos Santos Junior

Partner - Accountant - CRC-1SP-216386/O-T

ERNST & YOUNG Auditores Independentes S.S. CRC-2SP015199/O-6

3

Consolidated Individual

Assets Note 06/30/2020 03/31/2020 06/30/2020 03/31/2020

Cash and cash equivalents 3 202,419 453,310 14 93

Short-term investments 4 - 71 - -

Trade accounts receivable and other receivables 5 101,939 43,456 - -

Leases receivable 6 59,616 51,380 - -

Inventories 7 200,397 56,854 - -

Advances to suppliers and other assets 10 28,438 26,566 94 94

Biological assets 8 126,198 109,876 - -

Taxes and contributions recoverable 9 13,750 9,746 182 182

Derivative financial instruments 20 98,605 124,898 - -

Dividends receivable 11 - - 3,138 3,138

Total current assets 831,362 876,157 3,428 3,507

Noncurrent assets

Short-term investments 4 16,175 16,057 - -

Trade accounts receivable and other receivables 5 73,859 20,796 293 292

Leases receivable 6 84,082 145,454 - -

Advances to suppliers and other assets 10 1,005 1,380 - -

Judicial deposits 2,163 1,719 21 21

Taxes and contributions recoverable 9 29,263 28,710 66 66


Deferred income and social contribution taxes 21 103,575 62,441 - -

Total noncurrent assets 362,078 455,268 380 379

Investments 11 2,537 2,541 279,818 333,964

Property, plant and equipment 12 766,755 761,325 - -

Intangible assets 5,992 5,883 722 722

Right of use 13 249,084 254,634 - -

Total noncurrent assets 1,386,446 1,479,651 280,920 335,065

Total assets 2,217,808 2,355,808 284,348 338,572

A free translation from Portuguese into English of quarterly information prepared in Brazilian currency in accordance with the Brazilian and international standards on review engagements (NBC TR 2410 and ISRE 2410)

Companhia Mineira de Açúcar e Álcool Participações Statements of financial position at June 30 and March 31, 2020

(In thousands of Reais)

4


Liabilities Note 06/30/2020 03/31/2020 06/30/2020 03/31/2020

Loans and financing 0 241,258 244,548 - -


Trade accounts payable and other payables 15 111,729 92,582 - 71

Leases and agricultural partnerships payable 16 42,205 66,913 - -

Provisions and labor charges 37,340 25,022 - -

Tax obligations 14,237 10,676 5,245 5,238

Advances from customers 17 29,262 14,379 1 1

Other current liabilities 373 6 83 84

Total current liabilities 647,108 576,964 5,329 5,394

Trade accounts payable and other payables 15 1,038 - - -

Loans and financing 0 747,690 782,054 - -

Intercompany loans 0 - 11,062 7,441 7,214


Leases and agricultural partnerships payable 16 283,844 332,637 - -

Other noncurrent liabilities 5,753 5,753 - -

Advances from customers 17 101,873 103,974 - -

Provisions for contingencies 18 3,403 3,376 - -

Total noncurrent liabilities 1,299,122 1,452,880 7,441 7,214

Equity 19

Capital 379,239 379,239 379,239 379,239

Capital reserve 4,164 4,164 4,164 4,164

Equity adjustment (143,240) (46,868) (143,240) (46,868)

Retained earnings (accumulated losses) 31,415 (10,571) 31,415 (10,571)

Total equity 271,578 325,964 271,578 325,964

Total liabilities 1,946,230 2,029,844 12,770 12,608

Total liabilities and equity 2,217,808 2,355,808 284,348 338,572

See accompanying notes.

5

Companhia Mineira de Açúcar e Álcool Participações Statements of profit or loss Three-month periods ended June 30, 2020 and 2019

(In thousands of Reais, except for earnings per share)


Note 06/30/2020 06/30/2019 06/30/2020 06/30/2019

Net operating revenue 23 270,310 262,797 - -

Changes in fair value of biological assets 8 30,367 274 - -

Costs of sales and services 24 (197,332) (212,043) - -

Gross profit 103,345 51,028 - -

Operating expenses Selling expenses 24 (19,434) (10,343) - -

Administrative expenses 24 (7,986) (7,252) (213) (326)

Other operating income (expenses), net (1,884) (79) - -

Equity pickup 11 (4) - 42,227 4,677

(29,308) (17,674) 42,014 4,351

Income (loss) before net finance income (costs),

and taxes 74,037 33,354 42,014 4,351

Finance costs 25 (94,944) (53,446) (29) (32)

Finance income 25 74,527 27,637 1 1

Finance income (costs), net (20,417) (25,809) (28) (31)

Income before taxes 53,620 7,545 41,986 4,320 Current income and social contribution taxes 21 (2,790) - - -

Deferred income and social contribution taxes 21 (8,844) (3,225) - -

(11,634) (3,225) - -

Net income for the period

41,986 4,320

41,986 4,320

Basic and diluted earnings per share (in reais) 26 0.0395 0.0041


6


Statements of comprehensive income (loss)

Three-month periods ended June 30, 2020 and 2019



06/30/2020 06/30/2019 06/30/2020 06/30/2019

Net income for the period 41,986 4,320 41,986 4,320

Net gains (losses) from cash flow hedge in subsidiaries/investees (96,372) 6,391 (96,372) 6,391

Total comprehensive income (loss) (54,386) 10,711 (54,386) 10,711


7

Companhia Mineira de Açúcar e Álcool Participações Statements of changes in equity

Three-month periods ended June 30, 2020 and 2019 (In thousands of Reais)

Capital

Capital

reserve

Equity

adjustment

Retained

earnings

(accumulated

losses)

Total

equity

Balance at April 1, 2019 379,239 4,164 (17,476) (73,242) 292,685

Net losses on cash flow hedge - - 6,391 - 6,391

Net income for the period - - - 4,320 4,320

Balance at June 30, 2019 379,239 4,164 (11,085) (68,922) 303,396

Balance at April 1, 2020 379,239 4,164 (46,868) (10,571) 325,964

Net losses on cash flow hedge - - (96,372) - (96,372)

Net income for the period - - - 41,986 41,986

Balance at June 30, 2020 379,239 4,164 (143,240) 31,415 271,578


8

Companhia Mineira de Açúcar e Álcool Participações Statements of cash flows - indirect method

Three-month periods ended June 30, 2020 and 2019 (In thousands of Reais)


06/30/2020 06/30/2019 06/30/2020 06/30/2019

Cash flow from operating activities

Income for the period 41,986 4,320 41,986 4,320

Adjustments to reconcile P&L:

Present value adjustment 4,632 3,852 - -

Changes in fair value of biological assets (30,367) (274) - -

Depreciation and amortization 14,451 13,965 - -

Amortization of the right of use on leases and agricultural partnerships 6,734 13,305 - -

Reduction in crop due to sugarcane harvest 19,400 20,560 - -

Amortization of intercrop 35,282 25,807 - -

Amortization of ratoon cane treatments 35,984 30,555 - -

Equity pickup 4 - (42,227) (4,677)

Residual value of property, plant and equipment written off 6 1,162 - -

Interest on loans and financing 12,886 20,224 - -

Interest and Tax on Financial Transactions (IOF) on receivables from

related parties 1,235 2,892 - -

Unrealized foreign exchange differences and monetary restatement on

loans 4,794 (1,458) - -

Reversal of provision for obsolescence (1,601) - - -

Unrealized gains (losses) on derivative financial instruments (3,939) 2,934 - -

Provision for contingencies and other liabilities 27 492 - 2

Deferred income and social contribution taxes 8,844 3,225 - -

150,358 141,561 (241) (355)

(Increase) decrease in trade accounts receivable and other receivables (59,240) (17,693) (1) -

Decrease (increase) in inventories (141,942) (79,231) - -

Decrease (increase) in taxes and contributions recoverable (4,557) 5,113 - -

Decrease (increase) in advances to suppliers and other assets 6,553 (646) - 32

(Decrease) increase in trade accounts payable and other payables 20,185 24,543 (71) -

(Decrease) increase in provisions and labor charges 12,318 6,255 - -

(Decrease) increase in tax obligations 3,561 454 7 -

(Decrease) increase in advances from customers 12,782 (32,462) - -

Other assets and other liabilities 352 690 - (15)

Cash from (used in) operating activities 370 48,584 (306) (338)

Payment of interest on loans and financing (19,178) (21,712) -

Cash flow from (used in) operating activities (18,808) 26,872 (306) (338)

Cash flow from investing activities

Restricted short-term investments (47) (3,299) - -

Formation of biological assets (21,939) (15,593) - -

Proceeds from disposal of property, plant and equipment 9 230 - -

Acquisition of property, plant and equipment (73,810) (50,223) - -

Acquisition of intangible assets (109) (71) - -

Intercompany loans received (granted) (53,956) (56,436) 341

Cash from (used in) investing activities (149,852) (125,392) - 341

Cash flow from financing activities

Loans and financing taken out 23,560 - - -

Repayment of principal of loans and financing (59,716) (72,459) - -

Intercompany loans (paid)/taken out (11,062) - 227 -

(Payment) of leases and agricultural partnerships (35,013) (18,687) - -

Cash from (used in) financing activities (82,231) (91,146) 227 -

Net increase (decrease) in cash and cash equivalents (250,891) (189,666) (79) 3

Cash and cash equivalents at beginning of period 453,310 381,350 93 11

Cash and cash equivalents at end of period 202,419 191,684 14 14


9

Companhia Mineira de Açúcar e Álcool Participações Statements of value added

Three-month periods ended June 30, 2020 and 2019


Consolidated Individual 06/30/2020 06/30/2019 06/30/2020 06/30/2019

Revenues

Sales of goods, products and services 282,010 297,274 - - Other revenues 1,193 2,996 - - 283,203 300,270 - -

Brought-in inputs (including PIS and COFINS)

Cost of goods and products sold and services

rendered (25,273) (36,120) - -

Gain (loss) on fair value of biological assets 30,367 879 Materials, electricity, third-party services and others (36,736) (35,394) (196) (311) Other 568 357 - - (31,074) (70,278) (196) (311)

Gross value added 252,129 229,992 (196) (311)

Depreciation and amortization (111,851) (104,192) - -

Net value added produced by the Company 140,278 125,800 (196) (311)

Value added received in transfer

Equity pickup (4) - 42,227 4,677 Finance income 6,935 8,606 1 - Foreign exchange differences - financial instruments and derivatives

67,592 19,031

Total value added to be distributed 214,801 153,437 42,032 4,366 Personnel 43,350 37,977 - -

Direct compensation 28,456 25,238 - - Benefits 12,905 10,556 - - Unemployment Compensation Fund (FGTS) 1,989 2,183 - -

Taxes, charges and contributions 29,306 40,372 35 39

Federal 27,337 26,744 18 23 State (128) 12,026 4 3 Other taxes 2,097 1,602 13 13 Debt remuneration 100,159 70,768 11 7

Interest 13,464 22,095 1 9 Foreign exchange differences - financial instruments and derivatives

53,751 10,630 - -

Rents 7,606 18,281 - - Other 25,338 19,762 10 (2) Equity remuneration 41,986 4,320 41,986 4,320

Income for the period 41,986 4,320 41,986 4,320

Value added distributed 214,801 153,437 42,032 43,667 See accompanying notes.


Quarterly information – ITR Quarter ended June 30, 2020

10

Notes to quarterly information


1 Operations

Companhia Mineira de Açúcar e Álcool Participações (the “Company” or the “Group”), located

at Rodovia BR 050 (KM 121) - Distrito Industrial I, city of Uberaba, Minas Gerais State, is a

joint-stock corporation engaged in holding interest in other entities engaged in the production, sale and export of sugar, ethanol, energy and other sugarcane processing by-products. On March

4, 2009, the Company was registered as a publicly-held company through Circular Letter

CVM/SEP/RIC No. 001/2009 for trading of common shares in the non-organized over-the-counter market.

The Company is the Parent of the following entities:

• Vale do Tijuco Açúcar e Álcool S.A. (Vale do Tijuco)

• Vale do Pontal Açúcar e Etanol Ltda. (Vale do Pontal)

Subsidiary Vale do Tijuco Açúcar e Álcool S.A. started up on April 12, 2010. Its manufacturing unit has a milling capacity of approximately 4.5 million tons of sugarcane per annum, producing

sugar, anhydrous ethanol, hydrated ethanol and energy, as well as fusel oil and sugarcane bagasse

by-products.

Subsidiary Vale do Pontal Açúcar e Álcool Ltda. is a privately held company whose operations

started on July 1, 2016. It became a subsidiary of Companhia Mineira de Açúcar e Álcool Participações on July 1, 2018, as shown in Note 11. Its manufacturing unit has a milling capacity

of approximately 2.5 million tons of sugarcane per annum, producing sugar, anhydrous ethanol,

hydrated ethanol, as well as fusel oil and sugarcane bagasse by-products.

Sugarcane plantation requires an 18-month period for maturing and for the beginning of the harvest. The harvest generally takes place between April and November, which is also the period

when sugar and ethanol are produced. The sale of production takes place throughout the year and

does not suffer changes due to seasonality, only changes in the regular market supply and demand

(commodity price and foreign exchange differences).

Impacts of Covid-19

On March 11, 2020, the World Health Organization (WHO) declared coronavirus (COVID-19) a

pandemic. The outbreak triggered significant decisions by governments and private sector entities, which added to the potential impact of outbreak, increased the degree of uncertainty for

economic agents and may generate impacts on the interim financial statements. Aware of its

responsibility with the health and safety of its employees, partners, customers, as well as the

community, due to the spread of COVID-19, the Company announced that, from March 23, 2020, it would take a series of preventive actions.

Significant measures adopted were:

- Reinforcement of cleaning teams in order to increase the frequency of cleaning, especially in

points and places of greater manual contact;

- Anticipation of the vaccination campaign against flu.



11

1 Operations (Continued)

Impacts of Covid-19 (Continued)

In order to manage the economic and financial impacts, the Company set the production

of VHP sugar for practically the entire 20/21 crop at good levels of price, and

approximately 30% of the total volume of ethanol. In addition, in order to ensure the

normal operation of manufacturing units and reduce the impact on prices, investment

strategies were adopted to expand product storage. Regarding pricing policy:

Sugar and Ethanol:

- 100% set for VHP sugar and 30% set for Ethanol;

Power:

- 20% of the Company’s sales are agreed upon in a long-term auction;

- 60% of the volume is sold to top-tier companies based on long-term contracts; - 20% are settled with the Electric Energy Trade Chamber (CCEE) at the average market price

(Settlement Price for the Differences - “PLD”);

- All the Company’s contracts are registered with the CCEE, especially those carried out by the traders, and the consuming party also has the obligation to register. It should be highlighted that

these contracts do not present significant risks, since the system is highly regulated.

Management continues to monitor all aspects that may positively and negatively affect the

Company. At the moment, the Company’s priority is the care and attention to people, without, however, failing to keep up with the market fluctuations to which its products are inserted, caused

by the drop in national economic activity.

Based on the aforementioned events, the Company understands that there are no considerations

to be made in the interim financial statements as at June 30, 2020, with respect to: impairment

tests of its assets, breaches of covenants or significant change in the fair value of its assets and

liabilities.

2 Presentation of interim financial information and significant accounting policies

2.1 Basis of preparation The individual interim financial information has been prepared in accordance with Accounting Pronouncement CPC 21 - Interim Financial Reporting, while the consolidated interim financial

information has been prepared in accordance with CPC 21 (R1) - Interim Financial Reporting and

with International Accounting Standard (IAS) 34 - Interim Financial Reporting, issued by the

International Accounting Standards Board (IASB), and is presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation

of Quarterly Information (ITR).



12

2 Presentation of interim financial information and significant accounting practices (Continued)

2.1 Basis of preparation (Continued) This interim financial information has been prepared based on the basis of preparation and

accounting policies consistent with those adopted in preparing the annual financial statements as

at March 31, 2020, authorized and issued by management on June 08, 2020, and should be read together with the referred to annual financial statements. The explanatory note information that

did not suffer material changes compared with that contained in the financial statements as at

March 31, 2020 is not fully disclosed in this interim financial information. However, selected

information was included to explain significant events and transactions occurred in order to enable the understanding of changes in the Company’s financial position and performance since the

publication of the annual financial statements at March 31, 2020.

In preparing this interim financial information, management used judgments, estimates and

assumptions that affect the application of the Group’s accounting practices and reported amounts

of assets, liabilities, revenues and expenses. Actual results may differ from those estimates.

Estimates and assumptions are reviewed on an ongoing basis and had no significant changes upon preparing this interim financial information in relation to the annual financial statements as at

March 31, 2020.

The presentation of the Statement of Value Added (SVA) is required by the Brazilian Corporation

Law and by accounting practices adopted in Brazil applicable to publicly-held companies. The IFRS do not require SVA presentation. As a result, under the IFRS, this statement is presented as

supplementary information, without detriment to the set of quarterly information.

The non-financial data included in this individual and consolidated interim financial information

such as crop mix per hectare, planted hectares and total hectares and qualitative aspects to

determine insurance coverage were not audited/reviewed by independent auditors.

Management authorized the issue of this interim financial information on August 28, 2020.

2.2 Basis of consolidation The consolidated financial information includes the quarterly information of Companhia Mineira

de Açúcar and Álcool Participações and its subsidiaries listed below:

Percentage of

equity interest

Subsidiaries Country 06/30/2020 03/31/2020

Vale do Tijuco Açúcar e Álcool S.A. (Vale do Tijuco) Brazil 99.99% 99.99% Vale do Pontal Açúcar e Etanol Ltda. (Vale do Pontal) Brazil 99.99% 99.99%



13

3 Cash and cash equivalents


06/30/2020

03/31/2020 06/30/2020

03/31/2020

Cash and banks 20,828

51,180 14

93

Short-term investments 181,591

402,130 -

-

Total 202,419

453,310 14

93

The balance of cash and cash equivalents derives from receipts related to commercial transactions

and long-term loans taken out. Short-term investments are cash equivalents since they are readily

convertible into a known cash amount and subject to insignificant risk of change in their value.

At June 30, 2020, these investments refer to Bank Deposit Certificates (CDB) and Investment

Funds, which are deposited in top-tier banks, whose remuneration rate ranges from 95% to 105% of the Interbank Deposit Certificate (CDI) variation. These investments have no maturity date

and may be redeemed to meet the immediate cash needs of the Company and its subsidiaries.

Information on the Group’s exposure to market, credit and fair value measurement risks related to cash and cash equivalents is included in Note 20.

4 Short-term investments

Consolidated

06/30/2020 03/31/2020

Short-term investments 16,175

16,128

Total 16,175 16,128

Current assets - 71 Noncurrent assets 16,175 16,057

The Group maintains short-term investments amounting to R$16,175 at June 30, 2020, which

refer to balances restricted to financing transactions, bearing interest that ranges from 95% to 100% of the Interbank Deposit Certificate Interbank (CDI) fluctuation.

Information on the Group’s exposure to market, credit and fair value measurement risks related

to restricted short-term investments is included in Note 20.



14

5 Trade accounts receivable and other receivables Consolidated Individual

06/30/2020 03/31/2020 06/30/2020 03/31/2020

From sales of ethanol 8,770 9,155 - -

From sales of energy 15,171 11,168 - -

From sales of sugar 60,207 12,505 - -

From sales of sugarcane 1,789 2,321 - -

Other (a) 33,505 26,884 - -

Trade accounts receivable 119,442 62,033 - -

Receivables from related parties (Note 28) 56,356 2,219 293 292

Other receivables 56,356

2,219

293

292

Total 175,798 64,252 293 292

Current assets 101,939 43,456 - -

Noncurrent assets 73,859 20,796 293 292

(a) On November 27, 2017, subsidiary Bacuri Agrícola Ltda. was sold by its parent JFLIM Participações S.A., which transferred the receivables from the referred transaction to Vale do Pontal Açúcar e Etanol Ltda. for

settlement of loans between the parties. This account receivable amounts to R$20,352 at June 30, 2020, adjusted annually by the Extended Consumer Price Index (IPCA) until its final maturity in 2026.

Information on the Group’s exposure to credit, market and fair value measurement risks, as well

as impairment losses related to trade accounts receivable and other receivables is disclosed in

Note 20.

6 Leases receivable

Consolidated

Balance at March 31, 2020 196,834

Additions of new lease agreements 14,558

Adjustments due to change in the payment department (760)

Interest 3,985

Receipt (64,098)

Write-off due to termination of/amendments to contracts (6,821)

Balance at June 30, 2020 143,698

Current assets 59,616

Noncurrent assets 84,082

The aging list of long-term contracts is as follows:

Maturity Consolidated

07/01/2021 to 06/30/2022 15,594

07/01/2022 to 06/30/2023 15,222

07/01/2023 to 06/30/2024 12,748

07/01/2024 to 06/30/2025 11,340

07/01/2025 to 06/30/2026 9,047

07/01/2026 to 06/30/2027 7,424

07/01/2028 onwards 12,707

84,082



15

7 Inventories

Consolidated

06/30/2020 03/31/2020 Finished product

VHP sugar 80,527 10,269 Anhydrous ethanol 75,438 17,754 Hydrated ethanol 22,399 4,225

Supplies Storeroom - sundry (a) 24,716 28,891 Provision for obsolescence (4,214) (5,815) Inventories held by third parties (b) 1,531 1,530

Total 200,397 56,854

(a) The most significant storeroom amounts refer to consumer goods and inventory of agricultural inputs and pesticides to be used in the planting areas.

(b) These refer to agricultural inputs and pesticides to be used in planting areas with third-party crops.

Changes in provision for obsolescence

The Company adopts the criterion of recording a provision for storeroom items that have not been

moved for more than 365 days. At June 30, 2020, the subsidiaries presented the total amount of

R$4,214 relating to obsolete inventories, of which R$1,872 recorded at Vale do Tijuco Açúcar e

Alcool S.A. and R$2,342 at Vale do Pontal Açúcar e Etanol Ltda., as follows:

Consolidated

06/30/2020 03/31/2020

Opening balance (5,815) (2,525)

Addition (29) (3,871)

Write-off 1,630 581

Total (4,214) (5,815)

8 Biological assets

Changes in biological assets (sugarcane) are as follows:

Consolidated

Balance at April 1, 2019 90,996

Additions - sugarcane treatments 15,593

Absorption of harvested sugarcane costs (30,555)

Fair value less estimated selling expenses 274




Fair value less estimated selling expenses 8,550

Balance at April 1, 2020 109,876



Fair value less estimated selling expenses 30,367




16

8 Biological assets (Continued)

Sugarcane ratoon crops Planted areas consider only sugarcane crops and not the land where such crops are located. The

following assumptions were used to determine fair value using the discounted cash flow method:

Consolidated

06/30/2020 03/31/2020 Estimated harvest area (hectare) 34,969 32,349 Projected production (ton of sugarcane per hectare) 80 82.19 Total Recoverable Sugar - ATR (kg) 135 135

Price of ATR per kilo (R$) 0.69 0.63

The discount rate used in the cash flow for each period, denominated “Weighted Average Cost of Capital”, corresponded to 5.07% p.a. (5.72% at March 31, 2020), which was reviewed and

approved by Company management.

The Group is exposed to a number of risks related to its plantations:

Regulatory and environmental risks The Group is subject to laws and regulations and established environmental policies and procedures focused on compliance with environmental and other laws. Management conducts

regular analysis to identify environmental risks and ensure that systems in place are adequate to

manage those risks.

Supply and demand risks The Group is exposed to risks arising from fluctuation in prices and volume of sales of its

plantations. Whenever possible, the Group manages this risk by aligning its extraction volume with market supply and demand. Management conducts regular reviews of the industry trend to

ensure that the Group’s price structure is in line with the market and that projected extraction

volumes are consistent with expected demand.

Climate risks and other The Group’s plantations are exposed to the risks of damage caused by climate change, diseases,

forest fires and other natural forces. The Group has extensive procedures in place to monitor and reduce these risks, including regular inspections of the sugarcane plantation health and analysis

of industrial diseases and pests. The Group also takes out insurance against natural disasters.



17

9 Taxes and contributions recoverable


06/30/2020

03/31/2020 06/30/2020

03/31/2020

Contribution Tax on Gross Revenue for Social Security Financing (COFINS) recoverable 13,477

13,240 -

-

State VAT (ICMS) recoverable - purchase of inputs 10,280

9,111 -

-

State VAT (ICMS) recoverable - acquisition of property, plant and equipment 10,837

8,383 -

-

Withholding Income Tax (IRRF) on short-term

investments 3,780

3,222 166

166 Contribution Tax on Gross Revenue for Social Integration Program (PIS) recoverable 2,056

2,005 -

-

Other taxes recoverable 2,583

2,495 82

82

Total 43,013

38,456 248

248

Current assets 13,750 9,746 182 182


PIS and COFINS

This balance comprises credits arising from PIS and COFINS non-cumulative payment, referring

to the acquisitions of parts and pieces used in the maintenance of manufacturing facilities and

agricultural fleet, maintenance services of manufacturing and agricultural facilities, freight and warehousing in sales transactions, electric power and other credits on acquisitions of machinery

and equipment, and buildings and constructions intended for production. These credits may be

offset against other federal taxes and are not time-barred by statutes.

ICMS – acquisition of property, plant and equipment

This balance basically comprises credits determined on acquisitions of property, plant and

equipment items, which are being realized at the ratio of 1/48, and may be offset against taxes of the same nature.

ICMS - purchase of inputs

This balance refers to credits computed in the acquisition of sugarcane, through the tax benefit

granted to subsidiary Vale do Pontal Açúcar e Etanol Ltda. in the state of Goiás.

Withholding Income Tax (IRRF)

This refers to Withholding Income Tax (IRRF) on short-term investments and prepaid income

and social contribution taxes, which may be offset against federal taxes payable.



18

10 Advances to suppliers and other assets

Consolidated

06/30/2020

03/31/2020

Advances to sugarcane suppliers - third parties 16,599

17,849

Advances to local suppliers - third parties 9,003

9,005

Other 3,841

1,092

Total 29,443

27,946

Current assets 28,438 26,566

Noncurrent assets 1,005 1,380

The balance of advances to suppliers refers to sugarcane supply contracts entered into by

subsidiaries Vale do Tijuco Açúcar e Álcool S.A. and Vale do Pontal Açúcar e Álcool Ltda. with

their suppliers. The balance classified as noncurrent assets refers to sugarcane supply advance

contracts that will be realized upon receipt of sugarcane in subsequent crops, priced based on the Total Recoverable Sugar (ATR) index disclosed by the São Paulo State Council of Sugarcane,

Sugar and Ethanol Producers (Consecana) by the end of the crop.



19

11 Investments

Balance breakdown

Individual

06/30/2020 03/31/2020

Investments measured by the equity method

Vale do Tijuco Açúcar e Álcool S.A. 196,171 237,456 Vale do Pontal Açúcar e Etanol Ltda. 83,647 96,508

279,818 333,964

Consolidated

06/30/2020 03/31/2020

Investments measured by the equity method

CZ Energy Comercializadora de Etanol S.A. 2,489 2,400 Other investments 48 141

2,537 2,541

The Company’s investments in its subsidiaries are accounted for using the equity method. The

Company’s and its subsidiaries’ shares are not traded on the Stock Exchange.

The Company recorded a gain of R$42,227 in the year ended June 30, 2020 (R$4,677 at June 30, 2019) referring to the equity pickup of its subsidiaries. In the consolidated financial statements,

loss of R$(4) was recorded at the end of year.

Subsidiary Vale do Tijuco began to hold equity interest in joint venture CZ Energy

Comercializadora de Etanol S.A. (“CZ Energy”) by subscribing 2,600 registered common shares with no par value, issued by virtue of the capital increase of CZ Energy approved at the Special

General Meeting held on June 18, 2019. The subscribed shares were paid up in domestic currency

at the issue price of R$1.00 (one real) per share, totaling R$2,600.

Changes in investments in subsidiaries

Individual

06/30/2020 03/31/2020

Investment opening balance 333,964 302,254

Equity pickup 42,227 64,240

Equity adjustment (96,373) (29,392)

Dividends - (3,138)

Total 279,818 333,964

Consolidated

06/30/2020 03/31/2020

Investment opening balance 2,541 144

Capital contribution – Cz Energy - 2,600

Equity pickup (4) (203)

Total 2,537 2,541


Quarterly information – ITR Quarter ended

June 30, 2020

20

11 Investments (Continued)

Information on investees The table below presents a summary of all financial information of the subsidiaries:

Period ended June 30, 2020

Consolidated Equity interest

%

Current

assets

Noncurrent

assets

Total

assets Current

liabilities

Noncurrent

liabilities

Total

liabilities

Equity Revenues Expenses Loss Equity pickup

June 30, 2020

CZ Energy S.A. 26.00% 9,603 - 9,603 29 - 29 9,574 165 (177) (12) (4)

9,603 - 9,603 29 - 29 9,574 165 (177) (12) (4)


Individual Equity interest

%

Current

assets

Noncurrent

assets

Total

assets Current

liabilities

Noncurrent

liabilities

Total

liabilities

Equity Revenues Expenses Income

Equity

pickup

June 30, 2020

Vale do Tijuco S.A. 100.00% 604,051 1,249,093 1,853,144 509,857 1,147,115 1,656,972 196,171 291,770 (257,746) 34,024 34,024

Vale do Pontal Ltda. 100.00% 227,023 393,599 620,622 135,061 401,915 536,976 83,647 97,187 (88,984) 8,203 8,203

831,074 1,642,692 2,473,766 644,918 1,549,030 2,193,948 279,818 388,957 (346,730) 42,227 42,227



21

11 Investments (Continued)

Information on investees


Consolidated Equity interest

%

Current

assets

Noncurrent

assets

Total

assets Current

liabilities

Noncurrent

liabilities

Total

liabilities

Equity Revenues Expenses Income/

loss Equity pickup

March 31, 2020

CZ Energy S.A. 26.00%- 9,590 - 9,590 3 - 3 9,587 - - - - 9,590 - 9,590 3 - 3 9,587 - - - -


Equity interest

%

Current

assets

Noncurrent

assets

Total

assets Current

liabilities

Noncurrent

liabilities

Total

liabilities

Equity Revenues Expenses Income/

loss Equity pickup

March 31, 2020

Vale do Tijuco S.A. 100.00% 739,227 1,261,560 2,000,787 481,514 1,278,464 1,759,978 237,456 233,271 (224,912) 8,359 8,359

Vale do Pontal Ltda. 100.00% 136,561 454,069 590,630 90,053 404,069 494,122 96,508 91,912 (95,594) (3,682) (3,682)

875,788 1,715,629 2,591,417 571,567 1,682,533 2,254,100 333,964 325,183 (320,506) 4,677 4,677



22

12 Property, plant and equipment

Consolidated Industrial

equipment

Constructions

and buildings

Agricultural

machinery

and tractors

Paving Vehicles Agricultural

equipment Land

Machinery,

equipment

and tools

Furniture

and

fixtures

Computers and

peripherals

Construction

in progress (a)

Expenses with

intercrop

maintenance

Crop in

formation Other Total

Cost

Balance at April 1, 2019 456,857 126,832 46,742 29,739 19,654 26,394 13,988 173,172 3,778 4,310 23,513 206,291 360,608 22,993 1,514,871

Additions 106 - - - 544 240 - 22 20 7 21,848 - 26,956 480 50,223

Write-off - - (2,790) - - (218) - (50) (2) (17) (173) (888) (101) - (4,239)

Transfers - 70 - 7,520 - 56 - 37 6 34 2,671 - - (10,394) -

Balance at June 30, 2019 456,963 126,902 43,952 37,259 20,198 26,472 13,988 173,181 3,802 4,334 47,859 205,403 387,463 13,079 1,560,855

Additions 840 - - - 637 120 2,690 96 5 26 33,894 79,045 57,211 2,634 177,198

Write-off (415) - (3,022) - (1,133) (98) - (307) (1) (16) (3,154) (956) (2,760) (2,837) (14,699)

Transfers 24,864 11,411 7,256 1,367 1,819 676 (1) (101,173) (1,006) 2,043 (34,709) 7,665 85,092 (5,304) -

Balance at March 31, 2020 482,251 138,313 48,186 38,626 21,522 27,170 16,677 71,796 2,800 6,387 43,890 291,156 527,007 7,572 1,723,354

Additions 12 - - - - 77 - 56 7 3 40,972 - 32,654 869 74,651

Write-off - - - - - (3) - (77) (8) - - - - - (88)

Transfers 20,197 1,018 - 8,264 960 18,204 - 72 54 203 (49,023) - - 50 -

Balance at June 30, 2020 502,460 139,331 48,186 46,890 22,482 45,448 16,677 71,848 2,853 6,593 35,840 291,156 559,661 8,492 1,797,917



23

12 Property, plant and equipment (Continued)

Consolidated Industrial

equipment

Constructions

and buildings

Agricultural

machinery

and tractors

Paving Vehicles Agricultural

equipment Land

Machinery,

equipment

and tools

Furniture

and

fixtures

Computers

and

peripherals

Construction

in progress (a)

Expenses with

intercrop

maintenance

Crop in

formation Other Total

Depreciation

Balance at April 1, 2019 (174,597) (53,853) (35,386) (14,194) (13,461) (19,766) - (163,945) (2,956) (2,339) - (135,058) (205,443) (4,794) (825,792)

Additions (7,290) (1,142) (1,302) (1,821) (390) (592) - (740) (29) (168) - (25,807) (20,560) (491) (60,332)

Write-off - - 2,790 - - - - 50 - 5 - - - - 2,845

Balance at June 30, 2019 (181,887) (54,995) (33,898) (16,015) (13,851) (20,358) - (164,635) (2,985) (2,502) - (160,865) (226,003) (5,285) (883,279)

Additions (22,579) (3,557) (4,988) (7,263) (1,180) (1,681) - (1,347) (73) (546) - (36,715) (2,387) (283) (82,599)

Write-off 75 - 2,657 - 732 98 - 239 - 9 - - - 39 3,849

Transfers - 5,598 1,104 (5,564) 644 204 - 101,548 1,004 (766) - (7,970) (95,323) (478) -

Balance at March 31, 2020 (204,391) (52,955) (35,124) (28,842) (13,655) (21,737) - (64,195) (2,055) (3,805) - (205,550) (323,713) (6,008) (962,029)

Additions (7,400) (1,255) (1,433) (2,116) (355) (1,138) - (485) (32) (203) - (35,282) (19,400) (107) (69,207)

Write-off - - - - - - - 66 8 - - - - - 74

Balance at June 30, 2020 (211,791) (54,209) (36,557) (30,958) (14,009) (22,875) - (64,614) (2,079) (4,009) - (240,832) (343,113) (6,115) (1,031,162)

Net carrying amount - - - - - - - - - - - - -

Balance at March 31, 2020 277,860 85,358 13,062 9,783 7,867 5,433 16,677 7,601 745 2,582 43,890 85,606 203,294 1,564 761,325

Balance at June 30, 2020 290,669 85,122 11,629 15,932 8,472 22,573 16,677 7,233 774 2,584 35,840 50,324 216,548 2,376 766,755

(a) This basically refers to construction works for expanding the manufacturing facility and acquisitions of equipment.



24

12 Property, plant and equipment (Continued)

Guarantee Property, plant and equipment items were granted as guarantee for loans and financing, as described in Note 14.

Impairment test In accordance with CPC 01 (R1)/IAS 36 - Impairment of Assets, the Group assessed the impairment indicators at June 30, 2020 and concluded that there was no need to carry out an

impairment test.

13 Right of use on leases and agricultural partnerships

The Company adopted IFRS 16 / CPC 06 (R2) as of April 1, 2019.

Changes in the right of use on leases and agricultural partnerships during the current interim

financial information were as follows:

a) Projected discounted flow without projected future inflation

Cost: Properties Machinery and

equipment Vehicles Land Total

Balance at March 31, 2020 - 11,261 3,992 295,433 310,686

Additions of new right-of-use

agreements -

-

-

15,366

15,366

Adjustments due to change in the payment department

-

-

-

3,491

3,491

Write-off due to termination of/amendments to contracts

-

-

-

(18,826)

(18,826)

Balance at June 30, 2020 - 11,261 3,992 295,464 310,717

Accumulated amortization:

Balance at March 31,

2020 - (6,272) (2,223) (47,557) (56,052)

Amortization for the period

-

(79)

(28)

(15,121)

(15,228)

Write-offs - - - 9,647 9,647

Balance at June 30, 2020 - (6,351) (2,251) (53,031) (61,633)

Residual value at March

31, 2020 -

4,989

1,769

247,876

254,634

Residual value at June

30, 2020 -

4,910

1,741

242,433

249,084

Companhia Mineira de Açúcar e Álcool Participações Quarterly information – ITR Quarter ended

June 30, 2020

25

13 Right of use on leases and agricultural partnerships (Continued) In addition, in compliance with CVM Memorandum Circular No. 02/2019, following are

presented comparisons in accounts Right of use and Depreciation in future periods, using the

discounted cash flow considering inflation projected in the payment flows, discounted at the

nominal rate used by the Company:

Right of use

07/01/2020

to 06/30/2021

07/01/2021

to 06/30/2022

07/01/2022

to 06/30/2023

07/01/2023

to 06/30/2024

07/01/2024

to 06/30/2025

07/01/2025

to 06/30/2026

07/01/2026

to 06/30/2040

IFRS 188,490 146,325 108,407 83,182 61,260 43,534 -

CVM 210,859 166,466 126,133 98,308 73,796 53,427 -

10.61% 12.10% 14.05% 15.39% 16.99% 18.52% -

Depreciation

expense 07/01/2020

to 06/30/2021

07/01/2021

to 06/30/2022

07/01/2022

to 06/30/2023

07/01/2023

to 06/30/2024

07/01/2024

to 06/30/2025

07/01/2025

to 06/30/2026

07/01/2026

to 06/30/2040

IFRS (61,114) (42,165) (37,919) (25,225) (21,922) (17,726) (43,534)

CVM (63,015) (44,393) (40,332) (27,825) (24,512) (20,369) (53,427)

3.02% 5.02% 5.98% 9.35% 10.57% 12.97% 18.52%


June 30, 2020

26

14 Loans and financing

This note discloses contractual information on loans and financing of the Company and its

subsidiaries. Note 20 discloses additional information regarding the Company’s and its

subsidiaries’ exposure to interest rate and currency risks.

Credit facility

RE. Currency Index Year of

maturity

Consolidated

06/30/2020 03/31/2020

CCB

(c) R$ CDI 2020 5,082 5,096

CCB

(c) R$ CDI 2022 52,618 60,171

CCB

(c) R$ SELIC 2024 22,860 21,864

CCE

(b) R$ CDI 2020 70,691 70,112

CCE

(b) R$ CDI 2021 14,044 17,575

CCE

(b) R$ CDI 2022 50,649 60,118

CPR

(c) R$ CDI 2022 54,469 65,000

CPR

(c) R$ Fixed rate 2022 24,277 26,362

CRA

(f) R$ CDI 2022 151,404 154,161

CRA

(f) R$ CDI 2023 76,398 75,500

CRA

(f) R$ IPCA 2025 304,353 307,934

Finame

(a) R$ Fixed rate 2021 646 760

Finame

(a) R$ TJLP 2021 368 456

Finame

(a) R$ Fixed rate 2022 187 207

Finame

(a) R$ TJLP 2022 2,414 2,731

Finame

(a) R$ Fixed rate 2023 3,100 3,344

Finame

(a) R$ SELIC 2023 865 929

Finame

(a) R$ TJLP 2023 526 566

Finame

(a) R$ Fixed rate 2024 6,784 8,108

Finame

(a) R$ SELIC 2024 343 364

Finame

(a) R$ TJLP 2024 920 984

Finame

(a) R$ Fixed rate 2025 1,872 1,830

Finame

(a) R$ Fixed rate 2026 1,336 1,463

Finame

(a) R$ SELIC 2026 105 107

Finame

(a) R$ TLP 2026 3,440 3,588

Finame

(a) R$ TLP 2028 4,233 4,247

Finame

(a) R$ TLP 2030 20,542 -

NCE

(b) R$ CDI 2021 32,147 32,185

NCE

(b) R$ CDI 2022 27,726 30,830

PPE

(b) USD LIBOR 2021 75,295 92,296

1,009,694 1,048,888

Transaction costs (20,746) (22,286)

Total (*) 988,948 1,026,602

Current liabilities 241,258 244,548

Noncurrent liabilities 747,690 782,054

(*) The weighted average rates of finance charges are 7.75% p.a.


June 30, 2020

27

14 Loans and financing (Continued)

Consolidated

Credit facility RE. Currency Index

Year of

maturity 06/30/2020 03/31/2020

Intercompany loan - noncurrent liabilities (Note 28) (e) R$ (e) (e) - 11,062

Individual

Credit facility RE. Currency Index

Year of

maturity 06/30/2020 03/31/2020

Intercompany loan - noncurrent liabilities (Note 28) (d) R$ (d) (d) 7,441 7,214

(a) This refers to loans taken out with the purpose of financing the acquisition of industrial and agricultural equipment. These loans have a grace period for payment of the first installment of principal from 6 to 24 months from the agreement execution date. The agreements

are guaranteed by assignment in trust upon disposal of financed assets.

(b) This refers to loans with various financial institutions which will be settled through exports made in the period from 2020 to 2022.

(c) This refers to loans with various financial institutions which will be settled in the period from 2020 to 2022.

(d) Amount granted to the Parent Company by subsidiaries Vale do Tijuco Açúcar e Álcool S.A. and Vale do Pontal Açúcar e Etanol Ltda., without interest, which will be paid by the Company according to its cash availability, as described in Note 28.

(e) Amount granted by Usina Canápolis Açúcar e Etanol S.A., subject to interest, which was settled by the Company in April 2020.

(f) This refers to Agribusiness Receivables Certificates (“CRA”):

The first issue was in October 7, 2014, in the amount of R$99 million. The Agribusiness Credit Rights Certificates (CDCA)

installments will be increased by annual conventional interest, from the CRA payment date up to the payment date of each CDCA

interest installment. The following financial institutions and agents were contracted: coordinator leading bank: BB-Banco de

Investimentos S.A.; creditor issuing agent: Gaia Agro Securitizadora S.A.; trustee: Planner Trustee Distribuidora de Títulos e Valores

Mobiliários Ltda; registrar agent: BNY Mellon Serviços Financeiros Distribuidora de Títulos e Valores Mobiliários S.A.; and

custodian: SLW Corretora de Valores de Câmbio Ltda. These agreements were guaranteed by assignment in trust upon disposal of

financed assets, binding of VHP sugar receivables, agricultural pledge as well as corporate surety. The agreements were fully settled

on September 10, 2019.

The second issue was in October 15, 2018, in the amount of R$150 million. The debenture installments will be increased by semiannual

conventional interest, from the CRA payment date up to the payment date of each debenture interest installment, calculated on nominal

value. The following financial institutions and agents were contracted: coordinator leading bank: Eco Securitizadora de Direitos

Creditórios do Agronegócio S.A.; leading coordinator: XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A.;

trustee: Pentágono S.A. Distribuidora de Títulos e Valores Mobiliários; settling bank: Banco Bradesco S.A., custodian: Pentágono

S.A. Distribuidora de Títulos e Valores Mobiliários, bookkeeping agent: Vórtx Distribuidora de Títulos e Valores Mobiliários Ltda.,

market maker: XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A.

The third issue was in January 31, 2019, in the amount of R$75 million. The debenture installments will be increased by semiannual

conventional interest, from the CRA payment date up to the payment date of each debenture interest installment, calculated on nominal

value. The grace period is 3 years and amortization will occur at the end of the 3rd and 4th years. The following financial institutions

and agents were contracted: coordinator leading bank: Eco Securitizadora de Direitos Creditórios do Agronegócio S.A.; leading

coordinator: XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A.; trustee: Pentágono S.A. Distribuidora de

Títulos e Valores Mobiliários; settling bank: Banco Bradesco S.A., custodian: Pentágono S.A. Distribuidora de Títulos e Valores

Mobiliários, bookkeeping agent: Vórtx Distribuidora de Títulos e Valores Mobiliários Ltda., market maker: XP Investimentos

Corretora de Câmbio, Títulos e Valores Mobiliários S.A.


June 30, 2020

28

14 Loans and financing (Continued)

The fourth issue was on November 14, 2019, under the terms of CVM Ruling No. 400 of December 29, 2003, as amended, relating

to the 26th (twenty-sixth) issue of Eco Securitizadora de Direitos Creditórios do Agronegócio S.A. (“Offer”), backed by agribusiness

receivables represented by non-privileged nonconvertible debentures, with additional personal guarantee, issued within the scope of

the 4th (fourth) issue of Vale do Tijuco Açúcar e Álcool S.A. (a subsidiary of CMAA). The base offer corresponded to 250,000 (two

hundred and fifty thousand) CRAs, with the possibility of exercising an additional 20% lot, totaling 300,000 (three hundred thousand)

CRAs. The Offer ended on February 4, 2020; three hundred thousand (300,000) registered and book-entry CRAs were subscribed and

paid up, with par value of R$1 (one thousand reais) on the issue date, i.e. November 14, 2019, totaling R$300,000 (three hundred

million reais), with a grace period of 4 years and amortization by the end of the 4 th, 5th and 6th year. The “Leading Coordinator” and

“Market Maker” of the Offer was XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A., the “Trustee” was

Pentágono S.A. Distribuidora de Títulos e Valores Mobiliários, and the “Custodian” was Vórtx Distribuidora de Títulos e Valo res

Mobiliários Ltda.

The aging list of consolidated loans and financing is as follows:

June 30, 2020 Book Within 1 to 2 2 to3 3 to 4 4 to 5 Above

value 12 months years years years years 5 years Loans and financing 988,948 241,258 274,690 148,441 109,170 102,741 112,648

March 31, 2020 Book Within 1 to 2 2 to3 3 to 4 4 to 5 Above

value 12 months years years years years 5 years Loans and financing 1,026,602 244,548 294,197 177,098 107,754 101,390 101,615

Covenants

The Company has contractual obligations arising from financing agreements related to the maintenance of

certain financial and nonfinancial ratios established in these contracts (covenants), whose calculation period

is at the year ending March 31, 2021. Management has timely controls on these indicators and at June 30,

2020 understands that pre-established requirements have been met and any requirement by creditors before

the original long-term maturity as well as the need for reclassification are unlikely.

15 Trade accounts payable and other payables


06/30/2020 03/31/2020 06/30/2020 03/31/2020 Local suppliers of materials and services 87,992 84,662 - 71

Sugarcane suppliers 15,987 7,920 - -

Sugarcane suppliers (related parties - Note 28) 8,788 - - -

Total 112,767 92,582 - 71

Current 111,729 92,582 - 71 Noncurrent 1,038 - - -

The crop period of sugarcane, between April and December of each year, on average, has a direct impact on the balance of sugarcane suppliers and cutting, loading and transportation services.


June 30, 2020

29

15 Trade accounts payable and other payables (Continued)

The amounts payable to sugarcane suppliers and agricultural partners take into consideration

sugarcane delivered and not yet paid, as well as the price supplement calculated based on the final crop price through the Total Recoverable Sugar (ATR) index disclosed by the São Paulo State

Council of Sugarcane, Sugar and Ethanol Producers (Consecana).

The Company and its subsidiaries evaluated the present value adjustment of their trade accounts

payable at June 30, 2020 and March 31, 2020, and concluded that these balances do not generate material adjustments to present value in financial information.

Information on the Group’s exposure to liquidity and fair value measurement risks related to trade accounts payable and other payables is disclosed in Note 20.

16 Leases and agricultural partnerships payable

Changes in lease liabilities, for the three-month period ended June 30, 2020, are as follows:

Consolidated

Balance at March 31, 2020 399,550

Additions of new right-of-use lease agreements 29,924 Additions due to change in the payment department 2,731 Interest 8,955 Payments (99,111)

Write-off due to termination of/amendments to contracts (16,000)


Current liabilities 42,205 Noncurrent liabilities 283,844

The aging list of estimated balances of noncurrent lease and partnership payable is as follows: Maturity Consolidated

07/01/2021 to 06/30/2022 41,853

07/01/2022 to 06/30/2023 41,285

07/01/2023 to 06/30/2024 37,786

07/01/2024 to 06/30/2025 34,820

07/01/2025 to 06/30/2026 29,539

07/01/2026 to 06/30/2027 26,175

07/01/2028 onwards 72,836

283,844


June 30, 2020

30

16 Leases and agricultural partnerships payable (Continued)

Below is the potential right to PIS/COFINS recoverable embedded in the lease consideration:

Consolidated

Agricultural lease Present value

Lease consideration 31,095 25,469

Potential PIS/COFINS (9.25%) (2,876) (2,355)

Total 28,219 23,114

In addition, in compliance with CVM Memorandum Circular No. 02/2019, comparisons are

presented below in accounts Leases and agricultural partnerships payable and Interest expenses

in future periods, using the discounted cash flow considering inflation projected in the payment flows, discounted at the nominal rate used by the Company:

Leases payable

07/01/2020

to 06/30/2021

07/01/2021

to

06/30/2022

07/01/2022

to 06/30/2023

07/01/2023

to

06/30/2024

07/01/2024

to

06/30/2025

07/01/2025

to

06/30/2026

07/01/2026

to 06/30/2040

IFRS 267,222 218,485 170,409 126,409 85,861 51,464 -

CVM 312,414 264,656 214,862 167,244 121,425 80,973 -

14.47% 17.45% 20.69% 24.42% 29.29% 36.44% -

Interest expenses

07/01/2020

to 06/30/2021

07/01/2021

to 06/30/2022

07/01/2022

to 06/30/2023

07/01/2023

to 06/30/2024

07/01/2024

to

06/30/2025

07/01/2025

to

06/30/2026

07/01/2026

to

06/30/2040

IFRS (32,214) (27,323) (23,018) (18,974) (15,235) (11,895) (26,304)

CVM (36,745) (32,064) (27,739) (23,476) (19,359) (15,523) (37,147)

12.33% 14.79% 17.02% 19.18% 21.30% 23.37% 29.19%


June 30, 2020

31

17 Advances from customers

Consolidated

06/30/2020

03/31/2020 Advances from customers - sugar 123,852 114,158

Advances from customers - ethanol 4,838 3,146

Other 2,445 1,049

Total 131,135

118,353 Current liabilities 29,262 14,379

Noncurrent liabilities 101,873 103,974

18 Provision for contingencies

The Group is a party to lawsuits involving labor, civil, tax and environmental contingencies. To cover future losses relating to these proceedings, a provision was recorded at an amount deemed

sufficient by the Group management to cover losses assessed as probable. The assessment of the

likelihood of loss in these lawsuits, as well as the determination of amounts involved, was performed considering the claims of plaintiffs, the case law on the matters and the opinion of the

Group’s legal advisors. Significant information on these proceedings is as follows:

Labor Civil Tax Total Opening balance at April 1, 2019 2,678 43 1,635 4,356 Additions - - 832 832 Write-offs - (43) (1,769) (1,812)

Closing balance at March 31, 2020 2,678 - 698 3,376 Opening balance at April 1, 2019 2,678 - 698 3,376 Additions 239 - - 239 Write-offs (212) - - (212)

Closing balance at March 31, 2020 2,705 - 698 3,403

Based on information from its legal advisors, analysis of pending legal proceedings and previous

experience with regard to the amounts claimed, management set up a provision at an amount

deemed sufficient to cover losses, if any, on ongoing proceedings.

Unaccrued contingent liabilities

Contingent liabilities not recognized in the quarterly information refer to proceedings whose

likelihood of loss is assessed as possible by the legal advisors, amounting to R$2,651 at June 30,

2020 (R$2,339 At March 31, 2020), for which no provision has been recorded, since the

accounting practices adopted in Brazil and International Financial Reporting Standards (IFRS) do not require such recording.


June 30, 2020

32

19 Equity

a. Capital

At June 30, 2020, capital is represented by 1,064,082,217 (the same at March 31, 2020) common

registered shares, with no par value, held as follows:

Individual and Consolidated

06/30/2020 03/31/2020

Shares R$ Shares R$

IndoAgri Brazil Participações Ltda. 372,428,776 175,466 372,428,776 175,466 Ápia SP Participações S.A. 372,428,776 127,898 372,428,776 127,898

JFLIM Participações S.A. 319,224,665 75,875 319,224,665 75,875

Total 1,064,082,217 379,239 1,064,082,217 379,239

b. Capital reserve

As a result of the capital increase on July 13, 2007, the Company recorded a special premium

reserve in the amount of R$4,164 according to the Brazilian Corporation Law.

c. Legal reserve

The legal reserve is set up at 5% of the net income for each year, under the terms of Law No. 6404/76, article 193, capped at 20% of the capital. Due to accumulated losses, the legal reserve

was not recorded.

d. Statutory reserve

The Company shall maintain a statutory reserve for the development or expansion of its

business, the purposes of which shall be: (i) ensure funds for investments in research and

technology; (ii) increase working capital to ensure operational conditions appropriate to the

achievement of the Company’s purposes; and (iii) finance the growth of the Company’s

business. After legal adjustments and deductions, up to 100% of the remaining net income may

be allocated to the statutory reserve, up to the limit of capital, if approved at the Annual General

Meeting.

e. Equity adjustment

This includes the effective portion of the cumulative net foreign exchange difference of liabilities

denominated in US dollar and derivatives designated as hedging instruments for cash flows from

its future exports (hedged item), as described in Note 20.

The Company also maintains comprehensive income referring to actuarial liabilities of employee

benefit plans, in accordance with CPC 33 (R1) approved and reviewed by CVM Rule No. 695/12.

f. Dividends

The Company’s Articles of Incorporation determine a percentage not lower than 25% for payment

of mandatory minimum dividends. Due to accumulated losses, there were no declarations and payments of dividends.


June 30, 2020

33

20 Financial instruments

a) Accounting classification and fair values

The table below shows the carrying amounts and fair values of financial assets and liabilities, including

their levels in the fair value hierarchy. It does not include information on the fair value of assets and

liabilities not measured at fair value, if the book value is a reasonable approximation of fair value.

Consolidated Book value Fair value

June 30, 2020

Fair value

through

profit

or loss

Amortized

cost Total Level 1 Level 2 Level 3 Total

Financial assets measured

at fair value

Cash and cash equivalents 20,828 - 20,828 20,828 - - 20,828 Short-term investments 181,591 - 181,591 - 181,591 - 181,591 Restricted short-term investments 16,175 - 16,175 - 16,175 - 16,175 Derivative financial instruments 151,283 - 151,283

- 151,283 - 151,283

Total 369,877 - 369,877 20,828 349,049 - 369,877 Financial assets not

measured at fair value

Trade accounts receivable and other receivables - 119,442 119,442

Receivables from related parties (Note 28) - 56,356 56,356

Leases receivable - 143,698 143,698 Total - 319,496 319,496

Consolidated Book value Fair value

June 30, 2020

Fair value

through

profit

or loss

Amortized


Financial liabilities


Derivative financial instruments 327,529 - 327,529

- 327,529 - 327,529

Total 327,529 - 327,529 - 327,529 - 327,529 Financial liabilities not


Leases and agricultural partnership payable - 326,049 326,049

Loans and financing - 988,948 988,948 Trade accounts payable and other payables - 112,767 112,767

Total - 1,427,764 1,427,764


June 30, 2020

34

20 Financial instruments (Continued)

21 March 31, 2020

Fair value

through

profit

or loss

Amortized


Financial assets measured

at fair value

Cash and cash equivalents 51,180 - 51,180 51,180 - - 51,180 Short-term investments 402,130 - 402,130 - 402,130 - 402,130 Restricted short-term investments 16,128 - 16,128 - 16,128 - 16,128 Derivative financial instruments 303,609 - 303,609

- 303,609 - 303,609

Total 773,047 - 773,047 51,180 721,867 - 773,047 Financial assets not


Trade accounts receivable and

other receivables - 62,033 62,033

Receivables from related parties (Note 28) - 2,219 2,219

Leases receivable - 196,834 196,834 Total - 261,086 261,086

March 31, 2020

Fair value

through

profit

or loss

Amortized


Financial liabilities


Derivative financial instruments 336,862 - 336,862

- 336,862 - 336,862

Total 336,862 - 336,862

- 336,862 - 336,862

Financial liabilities not


Loans and financing - 1,026,602 1,026,602

Intercompany loans (Note 28) - 11,062 11,062

Leases and agricultural partnership payable - 399,550 399,550

Trade accounts payable and other payables - 92,582 92,582

Total - 1,529,796 1,529,796


June 30, 2020

35


b) Fair value measurement The book value of financial instruments recorded in the statement of financial position, when

compared to the amounts that could be obtained from their trading in an active market, or in the

absence of such markets, using the net present value adjusted for the current market interest rate, substantially approximates the related market value.

There were no transfers between levels to be considered as at June 30, 2020, in relation to the disclosures as at March 31, 2020.

c) Financial risk management The Group engages in transactions involving financial instruments to meet its own needs. As at

June 30, 2020, the Group does not have financial instruments that are not recorded in the

accounting books and does not carry out transactions involving financial instruments for

speculation purposes. The main risks related to the Group’s operations are the following:

• Credit risk;

• Liquidity risk; and

• Market risk.

This Note brings information about the Group’s exposure to each of the aforementioned risks, the Group’s objectives, policies and processes for measuring and managing risks, and its capital

management.

Risk management structure The Board of Directors is responsible for monitoring the Group’s risk management policies, and

each manager regularly reports the department activities to the Board.

The Group’s risk management policies are intended to identify and analyze any risks to which the

Group is exposed, to define limits and appropriate risk controls, and to monitor risks and

compliance with these limits. These risk management systems and policies are regularly reviewed to reflect changes in market conditions and in the Group’s activities. Through its standards and

training and management procedures, the Groups seeks to develop a disciplined and constructive

control environment, where all employees understand their duties and obligations.


June 30, 2020

36

20 Financial instruments (Continued) Credit risk Credit risk is the risk of the Group incurring losses in the event a customer or a counterparty in a

financial instrument fails to comply with its contractual obligations. The risk derives mainly from trade accounts receivable and financial instruments, as shown below.

Credit risk exposure The book values of financial assets represent the maximum credit risk exposure. The maximum

credit risk exposure at the reporting date of the interim financial statements was as follows:


06/30/2020 03/31/2020 06/30/2020 03/31/2020

Cash and cash equivalents 202,419 453,310 14 93

Short-term investments 16,175 16,128 - -

Trade accounts receivable and other receivables 175,798 64,252 293 292

Leases receivable 143,698 196,834 - -

Derivative financial instruments 150,561 303,609 - -

Total 688,651 1,034,133 307 385

Current assets 462,579 673,115 14 93


Cash and cash equivalents The principle adopted by the Company and its subsidiaries is to handle a limited number of

financial institutions, seeking to do business with solid institutions. In addition, another policy

intended to mitigate credit risk is the policy of holding balances of short-term investments in

proportion to the balance of loans and financing with each institution.

The Company and its subsidiaries have not recorded losses on cash and cash equivalents.

Loans and receivables The exposure of the Company and its subsidiaries to credit risk is mainly influenced by the individual characteristics of each customer. In addition, sales are well-distributed throughout the

fiscal year (mainly in the crop period, from March to December of each calendar year), which

enables the Company and its subsidiaries to interrupt deliveries to customers that may be a

potential credit risk.


June 30, 2020

37


Impairment losses The aging list of trade accounts receivable recorded in current assets at the reporting date of the interim

financial statements for which no impairment losses were recognized is as follows:

Consolidated

06/30/2020 03/31/2020

Falling due 170,723 54,793

Overdue within 30 days 741 2,083

Overdue from 31 to 90 days 3,930 2,915

Overdue from 91 to 180 days 404 4,461

Overdue above 181 days 6 6

175,804 64,258

Allowance for doubtful accounts (6) (6)

175,798 64,252

The Company and its subsidiaries reviewed the present value adjustment of their trade accounts receivable

at June 30, 2020 and March 31, 2020, and concluded that the amounts approximate the related book value,

since the receivables turnover is in the short term.

The allowance for doubtful accounts is recorded based on trade notes overdue for more than 180 days, in

an amount considered sufficient by management to cover probable losses on the realization of trade

accounts receivable. Management assessed the characteristics of its accounts receivable by customer and

does not expect future losses, and no additional allowance for losses is required.

For customers with a history of non-compliance with their financial obligations, the Company and its

subsidiaries seek to require prepayments.

Guarantees Subsidiaries Vale do Tijuco Açúcar e Álcool S.A. and Vale do Pontal Açúcar e Álcool Ltda. are guarantors

with financial entities and credit cooperatives for transactions involving purchase of inputs and financing

to be used in the planting and harvesting of sugarcane of their suppliers. At June 30, 2020, the total amount

guaranteed is R$150,512. The subsidiaries will assume the debt of their suppliers within the limit of the

guarantee provided, in case they fail to pay their obligations. Any amounts disbursed by the Company to

pay the suppliers’ obligations, in the event of default, will be adjusted by reference to the TJLP (Long-Term

Interest Rate), plus 5.5% per annum on a daily “pro-rata” basis, and will be discounted when the sugarcane

is supplied by the supplier.

Liquidity risk Liquidity risk is the risk that the Group may have difficulty in meeting obligations associated with financial

liabilities that are settled by delivering cash or another financial asset. The responsibility for managing

liquidity risk lies with the Group’s Management and Board of Directors, which manages liquidity risk based

on the need for funding and short, medium and long-term liquidity management, having credit facilities

according to cash needs, combining the maturity profiles of their financial assets and liabilities.


June 30, 2020

38


The Group uses information systems and management tools that provide the conditions for

monitoring cash flow requirements and optimizing its cash return on investments. The Group’s policy is to operate with high liquidity to ensure compliance with operating and financial

obligations for at least one operating cycle; this includes the potential impact of extreme

circumstances that cannot be reasonably anticipated, such as natural disasters and cyclical changes

in the commodities market.

The Company does expect that the cash flows included in the Group’s aging list may occur

significantly earlier or at amounts significantly different.

Liquidity risk exposure

The carrying amount of financial liabilities with liquidity risk is shown below:


06/30/2020 03/31/2020 06/30/2020 03/31/2020

Loans and financing 988,948 1,026,602 - -

Intercompany loans (Note 28) - 11,062 7,441 7,214

Leases and agricultural partnerships payable 326,049 399,550 - -

Trade accounts payable and other payables 112,767 92,582 - 71

Derivative financial instruments 326,225 336,862 - -

Total 1,753,989 1,866,658 7,441 7,285

Current liabilities 565,896 526,881 8 71

Noncurrent liabilities 1,188,093 1,339,776 7,433 7,214

The aging list of financial liabilities is as follows:

Consolidated Book

value

Contractual

flow

Within 12

months

1 to 2

years

2 to 3

years

3 to 4

years

4 to 5

years

Above 5

years

June 30, 2020

Loans and financing 988,948 1,010,417 241,258 274,690 148,441 109,170 102,741 134,117

Leases and agricultural partnership payable

326,049 326,049 42,205 41,853 41,285 37,786 34,820 128,515

Trade accounts payable and other payables

112,767 112,767 111,729 1,038 - - - -

Derivative financial instruments

326,225 326,225 170,704 155,521 - - - -

Total 1,753,989 1,775,458 565,896 473,102 189,726 146,956 137,561 262,632


June 30, 2020

39


Consolidated Book

value

Contractual

flow

Within 12

months

1 to 2

years

2 to 3

years

3 to 4

years

4 to 5

years

Above 5

years

March 31, 2020

Loans and financing 1,026,602 1,048,888 244,548 294,197 177,098 107,754 101,390 101,615

Intercompany loans 11,062 11,062 - 11,062 - - - -

Leases and agricultural partnership payable

399,550 410,176 66,913 51,637 47,780 43,670 40,021 160,155

Trade accounts payable and other payables

92,582 92,582 92,582 - - - - -

Derivative financial instruments

336,862 336,862 122,838 137,145 68,662 7,032 108 1,077

Total 1,866,658 1,899,570 526,881 494,041 293,540 158,456 141,519 262,847

Cash flows included in the Group’s aging list are not expected to occur significantly earlier or in

significantly different amounts.

Market risk Market risk is the risk that changes in market prices, such as exchange rates and interest rates, will affect the Group’s income or the amount of its financial instruments. Through its activities,

the Group is also exposed to financial risks resulting from changes in the price of Total

Recoverable Sugar (ATR), used to calculate the fair value of the biological asset, and in the price

of VHP (Very High Polarization) sugar.

Interest rate risk The Group is exposed to interest rate risks related to loans and financing taken out and

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