ULTRAPAR PARTICIPAÇÕES S.A. 4Q21 Earnings Conference Call 02.24.2022 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 ...

Financial Data and Key Metrics Changes - Ultrapar's EBITDA totaled BRL 1,017 million in Q3 2021, a 2% decrease compared to Q3 2020, primarily due to a drop in Ipiranga's results, offset by record EBITDAs at Oxiteno and Ultracargo [13] - Net income for Q3 2021 was BRL 374 million, a 35% increase year-over-year, mainly due to a one-off reversion of income tax on monetary adjustments of tax credits amounting to BRL 196 million [14] - Excluding this one-off effect, net income was BRL 178 million, reflecting a 36% reduction year-over-year, attributed to a BRL 138 million worsening in financial results [15] - Year-to-date CapEx reached BRL 1.2 billion, a 16% increase year-over-year, focused on expansions in Ipiranga, Ultracargo, and Ultragaz [16] - Net debt at the end of Q3 2021 was BRL 11.6 billion, an increase of approximately BRL 700 million from June 30, 2021 [17] Business Line Data and Key Metrics Changes - Ultragaz's total volumes sold were flat year-over-year, with a 4% growth in the bulk segment and a 2% reduction in the bottled segment, leading to an EBITDA of BRL 220 million, slightly below Q3 2020 [20][22] - Ultracargo achieved record net revenues of BRL 178 million, an 11% growth year-over-year, with EBITDA reaching BRL 102 million, a 30% increase year-over-year [24][25] - Oxiteno's volumes sold increased by 7% year-over-year, with EBITDA reaching a record BRL 352 million, more than double that of Q3 2020 [28][31] - Ipiranga's volumes sold grew by 6% year-over-year, but EBITDA was BRL 398 million, down 30% year-over-year due to lower margins and higher expenses [33][38] - Extrafarma's gross revenues were BRL 510 million, a 3% reduction year-over-year, with EBITDA totaling BRL 17 million, a 39% decrease year-over-year [40][41] Market Data and Key Metrics Changes - Ipiranga ended Q3 2021 with a network of 7,088 service stations, a 22% decrease from Q2 2021, with 61 new stations added and 83 closed [34] - The average volume contribution of new service stations was 261 cubic meters per month, while closed stations contributed below 76 cubic meters [34] Company Strategy and Development Direction - The company completed divestment projects, including the sale of Oxiteno for $1.3 billion, aiming for a more synergistic portfolio and reduced indebtedness to enable new investments [5][6] - The focus remains on energy and infrastructure verticals, with attention to the energy transition process in Brazil [8] - The succession process for the Board of Directors is set to complete by April 2023, with a planned transition to a new CEO [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Ipiranga's future performance, citing improvements in margins and competitive positioning despite a poor July [11] - The company anticipates a gradual recovery in Ipiranga's margins and overall performance in Q4 2021 [38] - Management acknowledged challenges in execution at Ipiranga but emphasized a focus on logistics, efficiency, and supply to improve profitability [66][80] Other Important Information - The company announced a revised EBITDA guidance for 2021, reflecting changes in market conditions and operational performance across its business lines [42] - The guidance for Ipiranga was cut due to pressured margins and lower volumes, while Oxiteno's guidance was raised due to higher-than-expected sales [43] Q&A Session Summary Question: Capital reorganization and strategy for the third quarter - Management expects significant deleveraging from divestments and is exploring both organic and inorganic growth opportunities [48] Question: Expectations for Ipiranga's gross margin in Q4 - Management believes gross margin will align with September's performance, indicating a positive outlook for October [57] Question: Inorganic opportunities and margin gaps - Management is focused on diversifying investments and improving execution at Ipiranga to close margin gaps with peers [62][66] Question: Factors influencing Ipiranga's guidance - Management indicated that inventory management and imports would significantly impact achieving the upper or lower ends of the guidance [71] Question: Changes in top management and their impact - The transition to new leadership is expected to bring consistency and improved execution in Ipiranga's operations [91][96]

Ultrapar Participações S.A. (NYSE:UGP) Q2 2021 Earnings Conference Call August 12, 2021 10:00 AM ET Company Participants Frederico Curado - Chief Executive Officer Rodrigo Pizzinatto - Chief Financial Officer & Investor Relations Officer Marcelo Araujo - Ipiranga, Chief Executive Officer Conference Call Participants Andre Hachem - Itau Gabriel Barra - Citibank Luiz Carvalho - UBS Bank Vicente Falanga - Bradesco BBI Bruno Montanari - Morgan Stanley Regis Cardoso - Credit Suisse Pedro Soares - BTG Pactual Ope ...

ULTRAPAR PARTICIPAÇÕES S.A. 2Q21 Earnings Conference Call 08.12.2021 Disclaimer Forward-looking statements ✓ This document may include "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. 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 trend ...

ULTRAPAR PARTICIPAÇÕES S.A. 1Q21 Earnings Conference Call 05.06.2021 Disclaimer Forward-looking statements ✓ This document may include "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. 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 trend ...

Financial Data and Key Metrics Changes - The company's EBITDA reached R$996 million in Q1 2021, representing a 13% increase compared to Q1 2020. Excluding non-recurring tax credits from the previous year, recurring EBITDA grew by 23% [14][15] - Net income was 19% lower than in Q1 2020, primarily due to non-recurring tax credits and negative mark-to-market effects from foreign exchange hedging instruments [15][16] - The company maintained a net debt of R$11.9 billion, with leverage increasing from 3x to 3.3x net debt-to-EBITDA [19][20] Business Line Data and Key Metrics Changes - **Ultragaz**: EBITDA was R$150 million, a 2% growth year-over-year, despite a 4% decrease in sales volume [22][23] - **Ultracargo**: Achieved record EBITDA of R$93 million, a 2% increase from Q1 2020, with net revenues totaling R$172 million, up 5% [25][26] - **Oxiteno**: Recorded EBITDA of R$227 million, an 87% increase over the recurring EBITDA in Q1 2020, driven by an improved sales mix [31] - **Ipiranga**: EBITDA totaled R$563 million, a 17% increase from Q1 2020, despite a 2% decrease in sales volume [35] - **Extrafarma**: EBITDA grew by 30% to R$12 million, despite a 1% decline in gross revenues [40] Market Data and Key Metrics Changes - Ultragaz experienced a decrease in sales volume, particularly in the bottled segment, due to increased demand during the pandemic in the previous year [21] - Oxiteno's U.S. operations were impacted by severe weather, but overall sales volume remained flat year-over-year [28] - Ipiranga's sales volume decreased by 2%, with a notable drop in auto cycle volume due to pandemic restrictions [32] Company Strategy and Development Direction - The company aims to rationalize its portfolio and expects to achieve a leverage range of 2 to 2.5 times EBITDA by the end of the year [10] - Ongoing negotiations with Petrobras for the acquisition of Refap are progressing without interruption, with expectations to sign the purchase agreement soon [11] - The company is focusing on its ESG agenda, with plans to define and disclose ESG goals for 2030 by the end of the year [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational performance despite the pandemic's challenges, highlighting the resilience of the portfolio [4][5] - The company anticipates a gradual decline in leverage throughout the year and expects to continue reaping benefits from investments made in previous years [10][14] - Management acknowledged the impact of external factors, such as exchange rates and commodity prices, on financial results but remains confident in the long-term strategy [16][19] Other Important Information - The company has implemented a restructuring of Ipiranga's commercial area, appointing a new Commercial Vice President to enhance operations [7] - The impact of a cyberattack on Extrafarma's operations was noted, with an estimated revenue loss of R$25 million, but recovery is expected through insurance [39][41] Q&A Session Summary Question: Fuel export expectations and refinery acquisition - Management noted a narrow window for gasoline exports in Q1 and stable conditions for diesel, with ongoing monitoring of internal prices compared to imports [46] Question: Oxiteno's performance and Texas plant operations - Management indicated a positive outlook for Oxiteno despite the Texas plant's temporary closure due to weather, with overall performance remaining strong [47] Question: Investment expectations in the petrochemical sector - Management emphasized the importance of capital allocation and the potential for future investments, but no specific decisions were disclosed [51] Question: Ipiranga's volume recovery and inventory effects - Management clarified that a cyberattack had minimal impact on Ipiranga's operations, and inventory management strategies were effectively implemented [53][55] Question: Oxiteno's margin progress and strategic refinery acquisition - Management confirmed ongoing negotiations for the refinery acquisition, with no interruptions due to leadership changes at Petrobras [61][62] Question: Expansion plans for convenience stores - Management outlined plans for expanding AmPm stores, with a focus on improving profitability and operational efficiency [86][88]

Foreign Exchange and Economic Risks - A significant portion of the company's sales is denominated in Reais, but costs in the chemical business are benchmarked to international prices in U.S. dollars, exposing the company to foreign exchange rate risks [171]. - In 2020, the Real depreciated 29% against the U.S. dollar, primarily due to low interest rates and the impacts of the COVID-19 pandemic [173]. - The Brazilian Central Bank reduced interest rates in 2019, which, along with geopolitical instability, led to a 4% depreciation of the Real against the U.S. dollar [173]. - The company has contracted hedging instruments for part of its U.S. dollar debt obligations to mitigate exchange rate fluctuations, but there is no guarantee these will fully protect against further devaluation of the Real [174]. - Economic and market conditions in the U.S. and other emerging markets can materially affect the Brazilian economy and the company's financial condition [177]. - The ongoing COVID-19 pandemic has resulted in significant financial market volatility, adversely impacting the company's operations and financial condition [181]. - The Brazilian government may impose restrictions on remittances of proceeds from investments, which could negatively affect the company's ability to pay dividends to non-Brazilian investors [192]. - Changes in Brazilian tax laws could impose withholding income tax on the disposal of the company's American Depositary Shares (ADSs) by non-residents [193]. - The company is exposed to inflationary pressures due to the depreciation of the Real, which may negatively affect its financial performance [176]. - The company may face difficulties in enforcing judgments against it in jurisdictions outside Brazil, potentially impacting investor confidence [182]. Shareholder and Corporate Structure - Ultrapar's shareholders, Ultra S.A. and Parth, own 34.5% of the outstanding shares, which could lead to a decrease in share price if a substantial number of shares are sold [194]. - Ultrapar does not expect to be classified as a Passive Foreign Investment Company (PFIC) in the foreseeable future, which could have adverse U.S. federal income tax consequences for U.S. holders [195]. Subsidiary Operations and Market Position - Ultragaz, a subsidiary of Ultrapar, has expanded its operations nationwide in Brazil, distributing both bottled and bulk LPG, and holds a 24% market share in the LPG sector [200]. - Ultracargo, the largest provider of liquid bulk storage in Brazil, doubled its size in terms of EBITDA after acquiring União Terminais, enhancing its operational scale [202]. - Ultracargo is expected to invest approximately R$300 million in the construction of a new terminal in Vila do Conde, with a minimum storage capacity of 59,000 cubic meters, starting operations in early 2022 [205]. - Oxiteno, a subsidiary of Ultrapar, has expanded its international presence, including the acquisition of a specialty chemicals plant in Pasadena, Texas, to serve local markets [210]. - Ipiranga, another subsidiary, became the second largest fuel distributor in Brazil with a 14% market share after acquiring the Ipiranga Group in 2007 [214]. - Ipiranga's convenience stores, AmPm, began a comprehensive project to review their business model, aiming to strengthen the franchise model and boost profits [223]. - Extrafarma, a leading drugstore chain, became a wholly owned subsidiary of Ultrapar after the acquisition in 2014, with Ultrapar assuming Extrafarma's net debt of R$106 million [224]. - Ultrapar issued 24,042,200 new shares in exchange for all shares of Extrafarma, increasing total issued share capital to 1,112,810,192 shares [226]. - As of the annual report date, the remaining subscription warrants could lead to the issuance of up to 3,567,069 additional shares of Ultrapar [227]. Financial Performance and Investments - As of December 31, 2020, the company's net debt was R$10,537.3 million, with a net debt to EBITDA ratio of 3.0 times [308]. - Net revenue from sales and services in 2020 was R$81,241.1 million, a decrease from R$89,298.0 million in 2019 [310]. - Adjusted EBITDA for Ipiranga in 2020 was R$1,693.9 million, down from R$2,486.6 million in 2019 [312]. - Ultragaz's net revenue in 2020 was R$7,408.3 million, showing growth from R$7,094.8 million in 2019 [310]. - The LPG distribution market in Brazil is regulated by the National Petroleum Agency (ANP), with Petrobras supplying 73% of the LPG sold in 2020 [319]. Operational Highlights and Innovations - In 2020, Ultragaz delivered a total of 1,732.3 thousand tons of LPG, a slight increase from 1,706.0 thousand tons in 2019 [349]. - The total bottled LPG sales in 2020 were 1,197.9 thousand tons, compared to 1,174.2 thousand tons in 2019, showing a growth of 2.0% [349]. - Ultragaz plans to requalify approximately 2.2 million LPG bottles in 2021, down from 2.5 million in 2020 [332]. - The total recordable accident rate decreased by 49% in 2020 compared to 2019, reflecting improvements in health, safety, and environmental (HSE) performance [338]. - Ultragaz has expanded its sales channels, including the introduction of a smartphone app for ordering LPG, enhancing customer convenience [351]. - The company has developed new technologies such as lighter LPG cylinders and a vending machine for LPG cylinders, aiming to innovate in the market [351]. - Ultragaz's bulk LPG distribution includes contracts typically ranging from two to five years, which stabilize sales and limit fluctuations [352]. - The company has strengthened its presence in the North and Northeast regions of Brazil, where it previously had limited operations [343]. - Ultragaz's marketing strategy focuses on protecting market share and strengthening its position in regions with less presence, especially in a mature market [344]. - The company has engaged in social initiatives to promote inclusion, education, and culture in remote communities across Brazil [353]. - Ultragaz's distribution network includes 5.1 thousand independent resellers and a fleet of 92 vehicles for bottled LPG delivery and 306 for bulk delivery as of December 31, 2020 [356]. - As of December 31, 2020, there were 24.4 million 13 kg bottles stamped with Ultragaz's brands in the market [357]. - 97% of Ultragaz's bottled LPG sales were made through resellers in 2020, with agreements requiring the use of the Ultragaz brand [358]. - In 2019, approximately 3.9 thousand resellers participated in the Desafio Lapidar program, with 65% qualifying as bronze or above [360]. - In 2020, Ultragaz created a digital relationship channel called MAP, providing resellers with access to order status, invoices, and training programs [363]. - Ultragaz's sales to independent resellers and industrial users have average payment terms of 20 days [366]. - The company has a formal contract with Petrobras for LPG supply, with no significant interruptions reported since 1995 [369]. - LPG prices in Brazil have been adjusted quarterly since 2018 to reflect international price volatility and exchange rate variations [370]. - In 2020, Ultragaz donated 650 thousand bars of biodegradable soap and 6 thousand basic food baskets to communities impacted by COVID-19 [354]. - The Ultragaz Cultural project served over 279 thousand children in Brazil from 2000 to 2019, although it was paused in 2020 due to COVID-19 [354].

Ultrapar Participacoes SA (NYSE:UGP) Q4 2020 Earnings Conference Call February 25, 2021 9:00 AM ET Company Participants Frederico Curado - CEO Rodrigo Pizzinatto - Chief Financial & IR Officer Conference Call Participants Thiago Duarte - BTG Pactual Andre Hachem - Itaú Regis Cardoso - Crédit Suisse Operator Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's Fourth Quarter 2020 Results Conference Call. There is also a simultaneous webcast that may be accessed th ...

Financial Data and Key Metrics Changes - In Q3 2020, Ultrapar's net revenues were BRL 21 billion, an 11% decrease compared to Q3 2019, primarily due to lower revenues at Ipiranga [28] - EBITDA amounted to BRL 1,038 million, a 6% increase year-on-year, or 5% growth excluding nonrecurring items [28] - Net income was BRL 277 million, a 10% decrease from the same quarter last year, mainly due to higher depreciation and amortization costs despite EBITDA growth [28][30] Business Line Data and Key Metrics Changes - **Ultragaz**: Sales volume fell 1% year-on-year, with bulk segment volumes growing by 1% and EBITDA reaching a record BRL 222 million, an 18% increase from Q3 2019 [13][14] - **Ultracargo**: Average capacity increased by 11% year-on-year, cubic meters sold rose by 14%, and net revenues were BRL 160 million, an 18% increase from Q3 2019 [15][17] - **Oxiteno**: Specialty chemicals volume rose 8% year-on-year, with EBITDA growing by 110% to BRL 169 million, driven by higher sales volume and real devaluation [19][20] - **Ipiranga**: Sales volume dropped 11% year-on-year, with EBITDA at BRL 566 million, a 17% decrease compared to last year but an increase from Q2 2020 [21][23] - **Extrafarma**: Gross revenues were BRL 523 million, a 3% decrease year-on-year, but EBITDA reached BRL 28 million, a record since acquisition, reflecting a 52% increase from Q3 2019 [26][27] Market Data and Key Metrics Changes - The economic recovery in Brazil positively influenced sales across various segments, particularly in bulk and industrial sectors [5][8] - Ipiranga's network ended the quarter with 7,107 service stations, with a focus on higher throughput stations to grow volumes [21][25] Company Strategy and Development Direction - The company is focused on analyzing refining assets that Petrobras intends to sell and expanding its new business, Abastece Ai, which has already accumulated 1.8 million active digital accounts [9][10] - Strategic personnel changes include the appointment of a new CFO and CEO for Extrafarma, aimed at enhancing operational efficiency and profitability [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted a recovery in economic activity and expressed confidence in the resilience of Ultrapar's portfolio, with expectations for continued growth in the fourth quarter despite seasonal weaknesses [5][9] - The company aims to maintain financial discipline while pursuing growth opportunities, including potential partnerships for refinery acquisitions [41][70] Other Important Information - The company reported a cash position of BRL 9.8 billion, supported by strong operational cash generation and new funding [31][32] - CapEx was slightly above EUR 1 billion year-to-date, reflecting a 5% decrease compared to the same period in 2019, with a focus on cash preservation [29] Q&A Session Summary Question: How does the new board member contribute to capital allocation? - Management emphasized the importance of governance and the positive impact of the new board member's experience on capital allocation strategies [35][38] Question: What is the strategy regarding Petrobras' privatizations and natural gas? - Management indicated a desire for strategic partnerships in bidding for refineries but also expressed confidence in executing independently if necessary [36][41] Question: What is the outlook for Ipiranga's volumes and margins? - Management acknowledged a gradual recovery in sales volumes and a focus on defending their network, with expectations for continued improvement [43][44] Question: Can you elaborate on the CBIO provision and its impact on Ipiranga's results? - Management clarified that the BRL 66 million provision was primarily for the current year's CBIOs, with expectations for further adjustments in Q4 [46][48] Question: What are the future plans for Extrafarma and its profitability? - Management highlighted ongoing operational improvements and a focus on digital strategies to enhance profitability, with no immediate plans for divestiture [77]

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