Financial Data and Key Metrics Changes - Ultrapar's recurring EBITDA for Q2 2024 was BRL 1.282 billion, a 37% increase year-over-year, primarily driven by higher EBITDA from Ipiranga [4] - Net income for the quarter reached BRL 491 million, reflecting a 106% growth year-over-year due to EBITDA growth and lower net financial expenses [4] - The accumulated net income for 2024 was BRL 947 million, an 85% increase compared to 2023 [4] - Operating cash generation for Q2 2024 was BRL 1.298 billion, BRL 400 million higher than the same quarter in 2023 [5] - Net debt at the end of Q2 2024 was BRL 7.700 billion, a reduction of BRL 123 million from March 2024 [6] - Leverage decreased from 1.3 times in March 2024 to 1.2 times net debt-to-EBITDA in June 2024 [7] Business Line Data and Key Metrics Changes Ultragaz - LPG sales volume decreased by 1% year-over-year, with a 2% reduction in the bottled segment [8] - Ultragaz's EBITDA was BRL 414 million, with recurring EBITDA at BRL 397 million, a 2% decrease year-over-year [8] Ultracargo - Average stock capacity increased by 12% year-over-year to 1,067,000 cubic meters [9] - Cubic meters sold grew by 19% year-over-year, leading to net revenues of BRL 264 million, a 2% increase from Q2 2023 [9] - Ultracargo's EBITDA totaled BRL 165 million, a 3% growth year-over-year [10] Ipiranga - Volumes sold by Ipiranga grew by 4% year-over-year, with a 5% increase in diesel and a 3% increase in the auto cycle [11] - Ipiranga's EBITDA was BRL 817 million, with recurring EBITDA at BRL 781 million, an 80% increase year-over-year [12] Market Data and Key Metrics Changes - The competitive environment in the LPG market affected Ultragaz's sales volume, particularly in the bottled segment [8] - Ipiranga's market share showed volatility, with expectations for stability in the branded network [21][22] Company Strategy and Development Direction - The company is focused on improving operational efficiency and logistics, particularly in Ipiranga and Ultragaz [30][31] - The integration with SHV is progressing, with full implementation expected by 2025 [23] - Capital allocation remains disciplined, with no immediate plans for new acquisitions but a focus on maximizing returns from existing investments [26][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the year, anticipating a more balanced market with normalized inventory levels [19][30] - Concerns were raised about market irregularities and the need for regulatory adjustments to ensure fair competition [40][41] Other Important Information - The company approved BRL 276 million in interim dividends for the first half of 2024, equivalent to BRL 0.25 per share [5] - The company plans to hold an Investor Day on September 6, 2024, to align expectations for the year [27] Q&A Session All Questions and Answers Question: Impact of non-recurring effects on SG&A and future margins - Management acknowledged a BRL 7 to BRL 8 per cubic meter impact on SG&A due to office relocations, which is expected to be a one-off effect [16][56] Question: Market share expectations for Ipiranga - Management anticipates stable market share in the branded network, with lower volatility expected in the third quarter [21][22] Question: Integration with SHV and expected synergies - The integration process is on track, with full implementation expected by 2025, and some marginal benefits anticipated in the upcoming quarters [23] Question: Capital allocation priorities and potential acquisitions - Management emphasized a disciplined approach to capital allocation, with no immediate plans for new acquisitions but a focus on maximizing returns from existing investments [26][47] Question: Dynamics of the spot market and inventory levels - Management noted that the second quarter saw high import levels, maintaining market supply, and expects a gradual normalization of inventory levels in the second half [45][51]

Financial Reporting - Ultrapar Participações S.A. filed its 2023 Form 20-F annual report with the U.S. SEC on April 23, 2024[5] - The complete audited financial statements are available for download on the company's website[5] - A hard copy of the financial statements can be requested free of charge via email to the Investor Relations Department[5]

Foreign Exchange and Economic Impact - In 2021, the Real depreciated by 7% against the U.S. dollar, while in 2022 and 2023, it appreciated by 7% each year due to economic recovery and fiscal improvements in Brazil [128]. - The company is exposed to foreign exchange rate risks linked to commodity prices denominated in U.S. dollars, which could adversely affect its financial condition and results of operations [129]. - Economic conditions in the U.S. and other emerging markets can materially impact the Brazilian economy, affecting the company's ability to borrow funds and raise equity capital [131]. Environmental Regulations and Climate Change - The company faces potential increased costs and operational challenges due to new environmental regulations and climate change concerns, including the adoption of carbon pricing mechanisms [135][137]. - The RenovaBio program in Brazil aims to reduce carbon emissions and promote biofuels, which could impact the company's operations and market share due to compliance costs and market volatility of CBios [138][139]. - The company may incur higher compliance and operating costs if it does not invest in research and development of less carbon-intensive solutions [141]. - Disruptions from climate change events, such as floods and storms, could harm the company's facilities and affect its financial position [143]. Business Acquisitions and Expansions - Ultragaz acquired Stella for R$63.0 million to enter the electricity segment, enhancing its energy solutions offerings [161]. - Ultragaz also acquired NEOgás for R$165.0 million, marking its entry into the compressed natural gas distribution segment [162]. - Ultracargo's acquisition of a 50% stake in Opla for R$237.5 million increased its total installed capacity by 90,000 m³, expanding its operations into inland liquid bulk storage [171]. - Ultracargo is building a greenfield terminal in Palmeirante, expected to add 23,000 m³ of capacity by Q3 2024, and is expanding the Rondonópolis terminal by 14,000 m³ [172]. Operational Strategies and Innovations - Ipiranga's turnaround plan focuses on pricing intelligence, logistics, supply and trading, and network management, aiming for consistent results [179]. - Ipiranga's AmPm convenience stores have a supply structure with four distribution centers to enhance operations and product quality [181]. - In 2023, AmPm initiated a pilot project with exclusive partnerships with brands like Pizza Hut and Krispy Kreme, integrating their products into AmPm stores [185]. - AmPm's new store concept includes a comprehensive digital services package available on major Brazilian marketplaces and delivery applications [184]. - AmPm is testing a new store model called AmPm Office, with two units established in 2023, located in commercial buildings and universities [186]. Financial Transactions and Capital Structure - Ultrapar sold Oxiteno for an initial payment of US$1,326.4 million (equivalent to R$6,283.6 million) on April 1, 2022, with a final payment of US$150.0 million (equivalent to R$749.4 million) due in April 2024 [191]. - Ultrapar sold Extrafarma for an initial price of R$737.8 million, with the last installment of R$182.7 million due in August 2024 [194]. - Ultrapar's capital stock comprises 1,115,404,268 common shares as of February 28, 2024, following the issuance of 191,778 common shares [210]. - On March 24, 2024, Ultrapar acquired 128,369,488 shares of Hidrovias for R$3.98/share, increasing its ownership to approximately 21.87% [211]. - Following additional transactions, Ultrapar's ownership in Hidrovias could reach approximately 26.90% [212]. Market Position and Performance - Ultragaz sold 1.7 million tons of LPG in 2023, achieving a market share of 23.4% in Brazil [216]. - Ultracargo has a total installed capacity of 1,067 thousand m³ in 2023, making it the largest private company in the liquid bulk storage industry in Brazil [217]. - Ipiranga holds a 17.7% market share in fuel distribution in Brazil, with a network of 5,877 service stations [218]. - In 2023, Ultragaz's network served approximately 60 thousand business customers and over 11 million households [219]. - Clients with contracts longer than three years accounted for 63% of Ultracargo's revenues in 2023, indicating revenue stability [233]. Corporate Governance and Management - Ultrapar's corporate governance structure includes independent board members and a robust compliance program, enhancing alignment of interests [239][242]. - The majority of Ultrapar's Board of Directors consists of independent members, promoting strong governance practices [245]. - Ultrapar's management team has a proven track record in the energy, mobility, and logistics infrastructure industries, with a focus on gender equality in leadership [246]. - The company has achieved an average compounded annual growth of net income attributable to shareholders of 18% from 1999 to 2023, without reporting a net loss in any year since its IPO [249]. - From 2020 to 2023, 89% of the senior executives were renewed, enhancing the management structure and governance of the company [252]. Sustainability and ESG Initiatives - Ultrapar has defined seven material topics for its ESG strategy, with specific goals set for 2030, aligning with the UN Sustainable Development Goals [273][277]. - The company published a Sustainability Report for 2023, detailing its financial, operational, and ESG highlights, prepared according to GRI standards [274]. - Ultrapar's risk management framework includes a systemic risk matrix to assess and monitor risks across its business operations [263]. - In 2023, Ultrapar achieved a lost-time injury frequency (LTIF) rate of 0.78, a 37% decrease compared to 2022 and a 19% decrease compared to 2020 [38]. - The company reported a process safety event (PSE) rate of 0.73 in 2023, down 29% from 2022 and 53% from 2020 [38]. - Ultrapar invested R$ 25 million in community initiatives in 2023, which is 21% higher than the amount invested in 2022 [38]. - As of December 31, 2023, Ultrapar's gross debt was R$ 11,768 million, slightly up from R$ 11,750 million in 2022 [280]. - The net debt decreased to R$ 6,121 million in 2023 from R$ 6,689 million in 2022, indicating improved financial liquidity [280]. - In 2023, 100% of the electricity consumed by Ultrapar was from renewable sources, maintaining the same level as in 2022 [38]. - The company achieved a 42% level of gender and ethnic equity in senior management positions in 2023, up 4 percentage points from 2022 [282]. - Ultrapar maintained an AA rating in the MSCI ESG Rating in 2023 and reentered the ISE B3 portfolio with a score of 83 out of 100 in corporate governance [38]. - The company neutralized 29% of its scope 1 emissions and 100% of its scope 2 emissions in 2023, consistent with the previous year's performance [38]. - Ultrapar aims to achieve carbon neutrality for scope 1 and 2 emissions from 2025 onwards as part of its energy transition strategy [38]. Sales and Distribution Developments - Ultragaz's total sales volume of bottled LPG in 2023 was 1,122 thousand tons, a slight decrease of 0.4% from 2022, while total bulk LPG sales increased by 6.4% to 616 thousand tons [306]. - The company has expanded its distribution network significantly, now serving almost all major population centers in Brazil, with new bottling and distribution plants established in Belém and Fortaleza [302]. - Ultragaz's digital initiatives include the Ultragaz app, which reached 5.4 million downloads by the end of 2023, enhancing customer convenience and logistics optimization [308]. - The company has developed a new IoT-based system for controlling seed and grain drying processes in agribusiness, optimizing LPG consumption [309]. - As of December 31, 2023, Ultragaz had 28 million bottles in circulation, with 26 million being 13 kg bottles [316]. - The consortium agreement with Supergasbrás, approved on August 16, 2023, will increase Ultragaz's filling bases from 19 to 24, aiming for operational synergies and cost reductions [314]. - In 2023, Ultragaz requalified 2.1 million LPG bottles, maintaining compliance with safety regulations [326]. - The company sources 17% of its LPG supply from private suppliers other than Petrobras, indicating a diversification in its supply chain [327]. - Ultragaz's contracts with bulk clients typically range from two to five years, fostering closer relationships and opportunities for expanding LPG consumption [312]. - The Lapidar Challenge program aims to standardize best management practices among resellers, enhancing customer experience and compliance with sector laws [319].

Financial Data and Key Metrics Changes - Ultrapar's recurring EBITDA from continuing operations reached BRL 1.66 billion in Q4 2023, a 122% increase year-over-year [11] - The net income for 2023 was BRL 2.1 billion, a 37% increase compared to 2022, driven by EBITDA growth and lower net financial expenses [12] - Operating cash generation for 2023 was BRL 3.8 billion, an increase of BRL 1.8 billion from 2022, attributed to higher EBITDA and reduced working capital investments [14] - The net debt at the end of December 2023 was BRL 6.1 billion, a reduction of nearly BRL 1 billion from September 2023 [16] Business Line Data and Key Metrics Changes Ultragaz - Ultragaz's EBITDA for Q4 2023 was BRL 106 million, an 11% increase year-over-year, with annual EBITDA reaching BRL 1.648 billion, a 41% growth over 2022 [21] - The volume of LPG sold in Q4 2023 was 2% lower year-over-year, with a 5% reduction in the bottled segment [19] Ultracargo - Ultracargo's net revenues in Q4 2023 were BRL 257 million, a 13% increase from Q4 2022, with annual revenues totaling BRL 1.016 billion, a 17% growth [24] - The EBITDA margin for Ultracargo was 60% in Q4 2023, a 3 percentage point increase from Q4 2022 [26] Ipiranga - Ipiranga's recurring EBITDA for Q4 2023 was BRL 1.170 billion, a 270% increase year-over-year, with annual EBITDA totaling BRL 4.354 billion, a 68% growth over 2022 [33] Market Data and Key Metrics Changes - Ipiranga's sales volume remained stable year-over-year in 2023, with a 2% increase in the Otto cycle and a 1% decrease in diesel [28] - The company ended Q4 2023 with a network of 5,877 service stations, having added 147 new stations [28] Company Strategy and Development Direction - The company completed acquisitions in 2023, including Stella and NEOgás by Ultragaz and Opla and Rondonópolis by Ultracargo, and announced the construction of a new liquid bulk terminal [9] - The investment plan for 2024 is set at BRL 2.670 billion, focusing on expansion and logistics infrastructure [36] Management's Comments on Operating Environment and Future Outlook - Management noted significant improvements in 2023 despite volatility, with record results in the main businesses [7] - The company expects continued good results in Q1 2024, with profitability levels similar to those seen in Q4 2023 [21][91] Other Important Information - The company achieved the lowest financial leverage level in 15 years, reducing it from 1.7 times to 1.1 times [87] - The company plans to maintain its branding strategy while selectively investing in quality improvements [41] Q&A Session Summary Question: Ipiranga's branding strategy and response from point of sales - Management confirmed that the branding strategy remains unchanged, focusing on selective investments to improve network quality [41] Question: Breakdown of Ultragaz's EBITDA contributions from new businesses - Management indicated that contributions from new energy options are currently negligible but expect growth in the coming years [41] Question: Expansion plans for Ultracargo and profitability dynamics - Management discussed the importance of balancing inland and coastal operations, emphasizing the need for integrated service lines [51][54] Question: Capital allocation and future investments - Management stated that they are disciplined in cash use and will consider additional dividends if no suitable investment opportunities arise [60] Question: Expectations for market dynamics and margins in 2024 - Management expressed cautious optimism about market conditions, highlighting the need for efficiency improvements to maintain competitiveness [61] Question: Trading dynamics and impact on Q4 results - Management clarified that there was nothing extraordinary in trading activities during Q4, attributing results to ongoing operational improvements [77]

Ultrapar Participações S.A. (NYSE:UGP) Q3 2023 Earnings Conference Call November 9, 2023 9:00 AM ET Monique Greco - Itau BBA Leonardo Marcondes - Bank of America Thiago Duarte - BTG Pactual Luiz Carvalho - UBS Rodrigo Almeida - Santander Bruno Montanari - Morgan Stanley We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. After Ultrapar's remarks, we will open the floor for questions and at that time, further instru ...

Ultrapar Participações S.A. (NYSE:UGP) Q2 2023 Earnings Conference Call August 10, 2023 10:00 AM ET Rodrigo de Almeida Pizzinatto - Chief Financial & Investor Relations Officer Marcos Lutz - Chief Executive Officer Tabajara Bertelli - Chief Executive Officer, Ultragaz Leonardo Linden - Chief Executive Officer, Ipiranga Thiago Duarte - BTG Pactual Leonardo Marcondes - Bank of America Regis Cardoso - Credit Suisse Matheus Enfeldt - UBS The presentation will be conducted by Mr. Rodrigo de Almeida Pizzinatto, U ...

Foreign Exchange and Economic Conditions - In 2020, the Brazilian Real depreciated by 29% against the U.S. dollar, followed by a 7% depreciation in 2021, primarily due to the economic impacts of the COVID-19 pandemic and slow recovery [126]. - In 2022, the Real appreciated by 7% against the U.S. dollar, attributed to the reopening of the economy and stimulus packages [126]. - The company has contracted hedging instruments for part of its U.S. dollar debt obligations to mitigate foreign exchange risks, but there is no guarantee these will fully protect against further devaluation of the Real [127]. - Depreciation of the Real can lead to increased inflationary pressures in Brazil, negatively impacting the company's financial condition and the value of distributions and dividends [128]. - The Brazilian market has remained volatile due to uncertainties regarding macroeconomic and political conditions, affecting the market value of the company's securities [131]. Climate Change and Regulatory Risks - The Brazilian government has adopted regulatory frameworks in response to climate change, which could adversely affect the company's operations and financial results [134]. - The RenovaBio program aims to reduce carbon emissions and promote biofuels, impacting the demand for hydrocarbon fuels and potentially increasing compliance costs for the company [137]. - The company faces risks from climate change events such as floods and storms, which could disrupt operations and harm financial performance [141]. Corporate Structure and Shareholder Information - As of April 14, 2023, shareholders of Ultra S.A. and Parth owned 33.5% of the outstanding shares, which could impact market value if sold [150]. - Ultrapar does not expect to be classified as a Passive Foreign Investment Company (PFIC) in the foreseeable future, based on current operations and income composition [151]. - Ultrapar's main businesses include Ipiranga, Ultragaz, and Ultracargo, with significant historical developments dating back to 1953 [153]. Acquisitions and Business Expansion - Ultragaz acquired Stella for R$63.0 million to enter the electricity segment, enhancing its energy solutions offerings [159]. - Ultragaz also acquired NEOgás for R$165.0 million, marking its entry into the compressed natural gas distribution segment [161]. - Ultracargo is the largest independent provider of liquid bulk storage in Brazil, with strategic acquisitions enhancing its operational scale [162]. - Ipiranga became the second largest fuel distributor in Brazil with a 14% market share following its acquisition of the Ipiranga Group in 2007 [170]. - Ultracargo signed an agreement to acquire a 50% stake in Opla for R$ 237.5 million, pending approval by CADE [211]. - The company closed the acquisition of NEOgás on February 1, 2023, marking its entry into the compressed natural gas distribution segment [280]. Financial Performance and Debt Management - Ultrapar's net revenue from sales and services reached R$143,634.7 million in 2022, a 30.9% increase from R$109,732.8 million in 2021 [257]. - Ultragaz's revenue was R$11,483.4 million in 2022, up from R$9,744.7 million in 2021, reflecting a growth of 17.9% [257]. - Ipiranga's revenue surged to R$131,338.0 million in 2022, compared to R$99,382.6 million in 2021, marking a 32.2% increase [257]. - Gross Debt decreased to R$11,750.4 million in 2022 from R$16,377.6 million in 2021, a reduction of 28.5% [259]. - Net Debt also fell to R$6,689.2 million in 2022, down from R$13,262.5 million in 2021, indicating a decrease of 49.6% [259]. Operational Efficiency and Market Strategy - Ultrapar plans to invest in logistics infrastructure to enhance fuel distribution efficiency, particularly in the Midwest, North, and Northeast regions of Brazil [251]. - The company aims to strengthen its market share in LPG distribution by expanding operations in the North and Northeast regions of Brazil [254]. - Ultragaz launched the SOU Program in 2021 to enhance cost management and operational efficiency [232]. - Ultragaz's distribution network includes 5.8 thousand independent resellers and a fleet of 111 vehicles for gas bottle delivery and 304 vehicles for bulk delivery as of December 31, 2022 [306]. Digital Transformation and Customer Engagement - Ultrapar's subsidiary, abastece aí, was integrated with the Km de Vantagens loyalty program to enhance digital payment services, aiming to create a significant digital ecosystem [182]. - Ultragaz's smartphone app reached 3.7 million downloads by the end of 2022, enhancing customer convenience [287]. - The digital relationship channel MAP has 6 thousand connected partners, providing resources to improve reseller work processes [311]. - The Amigu app, developed for last-mile delivery, has over 10 thousand downloads and connects delivery personnel in more than 900 cities across Brazil [312]. Environmental and Safety Initiatives - The company aims to reduce landfill waste by approximately 50% in 2022 through improved waste disposal practices [295]. - Ultragaz's lost time injury frequency rate improved to 2.10 in 2022, down 16% from 2.51 in 2021 [278]. - Ultragaz has invested in logistics optimization and production efficiency through information technology to enhance operational performance [306].

Ultrapar Participações S.A. (NYSE:UGP) Q4 2022 Earnings Conference Call February 16, 2023 9:00 AM ET Company Participants Rodrigo Pizzinatto - Chief Financial and Investor Relations Officer Marcos Lutz - Chief Executive Officer Tabajara Costa - Chief Executive Officer, Ultragaz Leonardo Linden - Chief Executive Officer, Ipiranga Marcelo Araujo - Chief Corporate Development and Advocacy Officer Conference Call Participants Luiz Carvalho - UBS Pedro Soares - BTG Pactual Bruno Montanari - Morgan Stanley Regis ...

Ultrapar Participações S.A. (NYSE:UGP) Q3 2022 Earnings Conference Call November 10, 2022 9:00 AM ET Â Company Participants Rodrigo Pizzinatto - Chief Financial and Investor Relations Officer Marcos Lutz - Chief Executive Officer Tabajara Bertelli - Chief Executive Officer, Ultragaz Decio Amaral - Chief Executive Officers, Ultracargo Leonardo Linden - Chief Executive Officer, Ipiranga Conference Call Participants Luiz Carvalho - UBS Bank Thiago Duarte - BTG Pactual Bank Gabriel Barra - Citibank Regis Cardos ...

ULTRAPAR PARTICIPAÇÕES S.A. 3Q22 Earnings Conference Call 11.10.2022 Disclaimer Forward-looking statements ✓ This presentation may include forward-looking statements about future events. Such statements reflect only the expectations of the management of the Company. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", "project" and other similar expressions that predict or indicate future events or trends or that are not s ...