Ultrapar Participacoes : Earnings call presentation 3Q18

Ultrapar Participações S.A.

Earnings conference call

Comments on the company's 3Q18 performance and outlook 11.08.2018

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, Adjusted EBITDA - adjusted for the amortization of contractual assets with customers - exclusive rights, and EBIT- Earnings Before Interest and Taxes, are presented in accordance with CVM Instruction No. 527, issued by CVM on October 4, 2012.

•  As from 2018, the IFRS 9 and 15 standards were adopted, amendments to the IFRS rules and interpretations issued by the IASB. In order to provide a comparative basis for the financial statements, the information for the first and fourth quarter of 2017 shown in this document incorporates these accounting changes, consequently differing from the values previously reported in the respective publications of results. Additional information can be found in note 2.y of the quarterly financial statements of September 30, 2018 and in the financial spreadsheets, available from the Ultrapar website (ri.ultra.com.br).

Ultrapar - 3Q18 performance

Tight economic environment due to political and economic uncertaintiesFinancial overview

R$ million

1,221

Adjusted EBITDA	Net income	Leverage¹ and net debt	Investments²
-30%	-41%	+1%
			2.9x

1.7x

545

850

9,191

1,511

1,533

323

6,767

3Q17

3Q18

3Q17

3Q18

3Q17

3Q18

¹ Net debt/EBITDA LTM

9M17

9M18

² Net of divestments and repayments

Gradual recovery of volumes

000 m³

in the service

6,059

6,200

3,156

3,301

2,814

2,780

•  Otto cycle: sharp growth of ethanol led by favorable parity in relation to gasoline

•  Gains in Plural's market share both in Otto cycle and Diesel in relation to 3Q17

3Q17

3Q18

3Q17

3Q18

3Q17

3Q18

DieselOtto cycleOthers

GasolineEthanolNGV

Total	Diesel	Otto cycle
+2%	+5%	-1%	 Diesel: higher sales
stations segment

Network expansion

Adjusted EBITDA

Volume

000 ton

Total

Specialties

Commodities

-2%

-7%

+18%

211

205

•  Commodities: greater demand for products mainly in Brazil

•  Specialties:

  173

  162

  44

  37

  •  Brazil: lower volumes in the agrochemical and distribution segments

  •  International Markets: lower exports to Argentina, partially offset by higher volumes in the USA

3Q17

3Q18

3Q17

3Q18

3Q17

3Q18

Specialties

CommoditiesBrazilInternational Markets

18%	21%
82%
	79%

Exchange rate

54	52
119	110

EBITDA

R$ million

213

Real devaluated against US Dollar - R$ 0,79/US$

173

Higher unit margins in US Dollars

Lower sales volume

Impairment at Oxiteno Andina (R$ 7 million)

3Q17

3Q18

EBITDANon-recurring¹

EBITDA US$/ton