Ultra(US:UGP)2019-04-22 22:03Foreign Exchange Risks - In 2014, the Brazilian Real depreciated by 13% against the U.S. dollar, followed by a 47% depreciation in 2015 due to political instability and economic factors[144]. - The Real appreciated by 17% in 2016, marking the first appreciation since 2011, attributed to political improvements and economic stabilization measures[144]. - In 2018, the Real depreciated by 17%, influenced by global economic crises and domestic political instability during the presidential election[144]. - The company is exposed to foreign exchange rate risks, particularly as a significant portion of sales is in Reais while costs are benchmarked to international prices[147]. - Depreciations of the Real can lead to inflationary pressures in Brazil, affecting the company's financial condition and market price of shares[146]. - The company has contracted hedging instruments to mitigate exposure to fluctuations in the dollar/Real exchange rate, but there are no guarantees of full protection[144]. - Economic conditions in the U.S. and other emerging markets can materially affect the Brazilian economy and the company's financial condition[148]. Regulatory and Tax Risks - The company may face difficulties in making dividend payments to non-Brazilian investors due to potential government restrictions on remittances[162]. - Changes in Brazilian tax laws could impose adverse tax consequences on the disposition of the company's American Depositary Shares (ADSs)[163]. Market Risks - Substantial sales of shares or ADSs by major shareholders could negatively impact the market value of the company's shares[164].