Ultrapar Participações S.A. November 2017
Considerations 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 trends or that are not statements of historical matters. Investors are cautioned that such forward-looking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of the business of Ultrapar Participações S.A. (“Ultrapar”) are based on current expectations that are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. Ultrapar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. For this reason, readers should not place undue emphasis on these forward-looking statements. Standards and criteria adopted in preparing the information The financial information presented in this document has been prepared according to International Financial Reporting Standards (IFRS). The financial information of Ultrapar corresponds to the company’s consolidated information. The financial information of Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma is reported without elimination of intercompany transactions. Therefore, the sum of such information may not correspond to the consolidated financial information of Ultrapar. In addition, the financial and operational information presented in this document is subject to rounding off and, consequently, the total amounts presented in the tables and charts may differ from the direct sum of the amounts that precede them. EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortization, and EBIT — Earnings Before Interest and Taxes, are presented in accordance with CVM Instruction No. 527, issued by CVM on October 4, 2012.
Agenda Ultrapar and strategy of its businesses...........................................................................p.0 8 Financial performance.......................................................................................................p.1 5 Priorities and recent strategic initiatives........................................................................p.2 3
Ultrapar – Multi-business company Ultrapar at a Glance Financial Highlights 3 Q17 Ultrapar is one of the largest corporations in Brazil • (R$mm) 2014 2015 2016 LTM Engaged in specialized distribution and retail, specialty • Net Revenue 67,736 75,655 77,353 7 7 ,5 19 chemicals and liquid bulk storage (3) YoY Growth (%) 11.2% 11.7% 2.2% -1. 7 % Leadership position in its markets , with long-term • EBITDA 3,158 3,953 4,217 4 ,118 competitive advantages (3) YoY Growth (%) 8.2% 25.2% 6.7% -3 . 6 % Businesses leveraged on the economic growth and • Net Income 1,251 1,513 1,571 1, 609 resilient to economic downturns Net Debt 3,975 4,928 5,715 6, 767 Best practices of corporate governance • Net Debt/EBITDA 1.3x 1.3x 1.4x 1. 6 x Strategy of differentiation and innovation • Operating Segments Shareholder Structure EBITDA Contribution (2) Ba1 Market Cap (1) : R$4 2 Bn BB+ 1 3 % 4% 1% Key Shareholders % 6 % Ultra S.A. Participações 22% Standard Life Aberdeen 8% Parth do Brasil Participações Ltda 8% 7 6 % Black Rock Inc. 5 % Others 57 % (1) As of September 3 0 , 2017 (2) For the last twelve months ended September 3 0 , 2017 (3) Growth over 3 Q1 6 LTM 4
Ultrapar – Multi-business company 2 nd largest fuel Leader in The largest LPG The largest Sixth largest distributor in distributor in specialty provider of drugstore chain Brazil Brazil chemicals storage for in Brazil derived from liquid bulk in Network of 6 366 stores in 11 7,814 service ethylene oxide Brazil thousand different states stations in Latin America independent 6 terminals 2 distribution resellers located in the Largest 12 production centers 11 million main Brazilian convenience facilities in 5 households ports Leadership in store network countries attended NO and NE in Brazil 696 thousand regions 52 thousand m³ of storage customers in the capacity bulk segment Ultrapar is the 5 th largest Brazilian group in terms of revenues¹ 16 thousand employees Market capitalization of R$ 42 billion ¹ Source: Valor 1000 2017 edition 5
Ultrapar – Investments were leveraged by the attributes of our businesses Resilient businesses Leveraged on Differentiation the Brazilian through economic innovation growth Markets under Synergies consolidation among the and businesses formalization process Corporate governance designed to sustainable value creation 6
Ultrapar – Corporate governance Ultrapar Corporate Governance 1984/94 1999 2000 2002 2003 2007 2011 2014 • First Brazilian • Compan y’s first • First Brazilian • Stock ownership • Separated roles • New corporate • Compensation • Issuance of new company to be company to and second of CEO and governance program to linked to common shares listed at B3 and stock ownership grant 100% tag structure after Chairman of the executives of the economic value as a result of the NYSE program along rights to joining the Novo new generation Board of added Extrafarma ’s simultaneously all shareholders Mercado Directors Merger • Corporate • Ultrapar restructuring becomes a corporation Corporate Governance designed to value creation Alignment of interests Track record of prospecting, analyzing and executing Accountability Continuous process High standards of Engagement of the Company controls and transparency Strong investment Lean management structure capacity Agile decision- Capital making processes People Processes Long-term financial soundness 7
Ultrapar and strategy of its businesses
Ipiranga – Constant investments in the service station network and logistics infrastructure Investments to capture the market growth potential, ... resulted in the company’s growth focused on N/MW/NE regions… 1 Investment in the network and logistics infrastructure Car penetration by country % of unbranded service stations vs. Ipiranga’s (as a % of population) 41% 83% 29% 1,327 63% 59% CAGR 15% 23% 32% 13% 591 29% 20% 2011 3Q17 LTM N/MW/NE S/SE 2 Growth in the number of service stations and sales mix Brazil US Japan United Mexico Argentina Kingdom Ipiranga 76% Unbranded service stations 70% 7,814 14,000 (34%) service stations in Brazil, 27% of total sales volume 6,086 CAGR # stations Source: Sindicom’s 2016 Annual Report and ANFAVEA’s 2017 Annual Report # stations 4% Sales volume in the reseller segment ...and on the expansion of the logistics infrastructure 2011 3Q17 LTM 3 EBITDA and EBITDA margin 134 83 logistics facilities* CAGR 61 across Brazil margin 15% 3,104 EBITDA (R$ M) R$ 712 million CAPEX for 1,330 EBITDA margin (R$/m³) expansion and construction CAGR EBITDA 16% of terminals since 2011 2011 3Q17 LTM 4 Future inorganic growth: JV with Chevron in lubricants * 54 owned terminals and pools 9
Ipiranga – Differentiation in convenience and services Diversification of products and services at Ipiranga service stations, with constant innovation 2,301stores Reduced environmental Brazil’s largest loyalty 774 bakeries impacts and costs JV with Itaú 1,434 franchises program 431 Beer Cave 247 Jet Oil Motos ~24 million members 1,193 stations 4 DCs in operation 1 million tags As of Sep/17 The strongest brand in the fuel market¹ Convenience stores penetration Relationship with resellers and final customers 26 37 5 12 3 7 7 4 Clube do Milhão Incentive 95% 90% programs 88% Clube VIP 81% 75% Km de Vantagens , loyalty program 60% Marketing campaigns 29% 30% “ Ask at the Ipiranga’s service station” 19% Marketing plan Brazil Chile Canada Argentina US United Uruguay Australia Kingdom Novelties Stores/Service station Thousand people/store “ Abastece Aí ” app am/pm is the largest convenience store network in Brazil present in 29% DT Clean premium gasoline of Ipiranga’s service stations ¹Source: Valor Econômico, January, 18, 2016 (CVA Solutions consultants) Source: Sindicom’s 2016 Annual Report 10
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