Ultrapar Participacoes : Earnings release 4Q18

4Q18 EARNINGS RELEASE

São Paulo February 20, 2019 - Ultrapar Participações S.A. (B3: UGPA3/NYSE: UGP), a Company engaged in retail and specialized distribution (Ipiranga/Ultragaz/Extrafarma), specialty chemicals (Oxiteno) and storage for liquid bulk

(Ultracargo), hereby reports its results for the fourth quarter of 2018.

Net revenues	Adjusted EBITDA	Net earnings
R$ 23	R$ 993	R$ 496
billion	million	million

Investments

Declared dividends

Market Cap.¹

R$ 548 millionR$ 380 millionR$ 30 billion

¹ As of December 31, 2018

Highlights

•  Ultrapar announces its organic investment plan for 2019, totaling R$ 1.8 billion

•  Distribution approved of R$ 380 million in dividends for 2H18, resulting in a payout of 60% on net earnings for 2018 and a dividend yield of 2.5%

•  Net revenues in 2018 exceeded R$ 90 billion

•  Operational cash generation was R$ 1.4 billion in 2018

Conference Call 4Q18

Ultrapar will be holding a conference call for analysts and investors on February 21, 2019 to comment on the Company's performance in the fourth quarter of 2018 and its outlook. The presentation will be available for download on the Company's website 30 minutes prior to the conference call. WEBCAST live via internet at ri.ultra.com.br. Please connect 15 minutes in advance.

Portuguese: 11 a.m. (Brasília time) / 9 a.m. (US EST)

Telephone for connection: [phone] Code: Ultrapar

Replay: [phone] (available for seven days) Code: Ultrapar

English: 12:30 p.m. (Brasília time) / 10:30 a.m. (US EST)

International Participants: [phone]

Code: Ultrapar

Replay: [phone] (available for seven days) Code: 10127683

Message from the Management

Ultrapar took important steps to enhance both its management model and its corporate governance during 2018.

As part of a planned succession process and consistent with the Company's good corporate governance, Paulo Guilherme Aguiar Cunha, after three decades of unparalleled contributions, was nominated Chairman Emeritus of the Board of Directors, an honorary and lifetime position. To succeed him, Pedro Wongtschowski, Vice Chairman of the Board of Directors and Chief Executive Officer of Ultrapar between 2007 and 2012, was elected Chairman.

Other important succession movements took place at the senior management level, in the leadership of Extrafarma, Ultragaz and Ipiranga, equally aligned to a planned succession process that blended internal promotions with the attraction of external talents.

Over the course of the year, we dedicated both time and resources to improving Ultrapar's strategic planning process with a view to achieving better integration and dynamics of the analyses of our businesses with an extension of our planning horizon, harmonization of assumptions and parameters among companies, monitoring results closer and more frequently, consolidation of annual budgets and investment plans and a structured assessment for the Company's portfolio of investments.

On another front, we formalized or improved some important corporate policies such as Risk Management (general nature), Management of Financial Risks, Disclosure of Material Facts, Securities' Trading and Competition/Anti-Trust policies. All of these initiatives are consistent with our organization's resolute commitment to the continual improvement in governance practices and the ethical and transparent conduct of our people.

From the macro-economic point of view, the year began with a positive outlook for recovery in Brazil following the deepest recession in the country's history. However, rising oil prices combined with a sharp currency devaluation engendered a significant increase in fuel prices and, consequently, road transportation freight costs, culminating in a truckers' strike which paralyzed the entire country, impacting substantially all sectors of the economy. The outcome to this event together with uncertainties surrounding the eventual results of the general elections, led the Brazilian economy to post only moderate growth in 2018.

Since our businesses bear a close correlation with the domestic economic performance, we took firm action in the management of costs, expenses and capital employed, seeking to increase the efficiency of our operations, optimize investments and reduce the working capital of our companies. In such an environment of limited economic expansion and consequent intensified competition, there was an inevitable impact on some of our results. In 2018, Ultrapar reported an Adjusted EBITDA of R$ 3,069 million and net earnings of R$ 1,132 million, which were solid results, although below our expectations and lower than those reported for 2017.

On the other hand, initiatives taken to control costs and for greater selectivity in capital investments produced an excellent operational cash generation of R$ 1.4 billion in 2018, higher than in 2017.

At Ipiranga, we strengthened the management model to ensure greater agility in reacting to the opportunities and challenges of the market. We strengthened the relationship with our resellers and modified the organizational structure with a view to facilitating the capture of value in the ancillary businesses such as the am/pm convenience store franchise and the customer relationship channels, notably KMV - Km de Vantagens, the country's leading loyalty program. Following a difficult first half, also due to the truckers' strike, Ipiranga began a gradual and consistent process of recovery in the second half of the year, underscoring our conviction of an improvement in results from 2019 onwards. In 2018, we added 67 bakeries and 54 beer caves to our network as well as 78 new am/pm stores and 37 Jet Oil units, consolidating both as the 2nd and 6th largest franchise networks in the country, respectively, according to the Brazilian Franchise Association. Among other initiatives, the Abastece aí (Fill Up) app is already being used by more than 1.4 million as a means of payment and for exchanging KMV points.

Oxiteno began operations at its new ethoxylation plant in Texas, USA, with a state of the art operation both in technology and automation and located in the world's largest surfactants' market, this important project being concluded at an investment of approximately US$ 200 million. In addition, the Company continues committed to its research and

2

development activities for continually expanding its specialty chemicals portfolio with greater potential for adding value and launched 22 new products in 2018.

Throughout the year, Ultragaz continued to develop pioneering innovation and operational excellence in its field, which combined with discipline in the management of costs and expenses has contributed to consolidate the Company as a worldwide benchmark in LPG distribution. Employing digital solutions for its clients, automating the activities of its commercial team and employing digital technology with its resellers, Ultragaz aims to continue growing organically in Brazil, mainly in the North and the Northeast, at the same time assessing opportunities for expansion in the international market. In 2018, Ultragaz developed and launched seven new LPG applications for industry, agribusiness and commerce and services, adding more than 900 new clients during the year.

Ultracargo reported an excellent performance in 2018, despite a scenario of reduced fuel imports which affected the entire bulk liquid storage sector. The Company's agility and flexibility were instrumental in maximizing opportunities in the ethanol and chemicals markets, offsetting the impact of the decline in the demand for fuel storage and handling. In 2019, the Company will continue investing in the expansion of its capacity mainly focusing on the ports of Santos (SP) and Itaqui (MA).

As to Extrafarma, 2018 was a year of intensifying competition in the retail pharmacy market with pressure both on margins and expansion processes of the principal retail networks. In this environment, the Company reduced its pace of store additions, adopting greater selectivity in location and potential profitability, prioritizing the densification of its network and logistics optimization. Additionally, Extrarfarma has implemented a new retailing system, which shall contribute to enhance productivity and inventory management at the distribution centers and stores as well as providing a better purchasing experience for our customers.

For 2019, we rely on an improving Brazilian macroeconomic outlook, with greater generation of employment and incomes, driving expansion in domestic market demand. This combination of factors will be beneficial to our businesses, all of which have the potential to leverage future GDP growth and which will also benefit from the maturing process of investments made over the past few years. Consequently, at Ultrapar, we expect growth in all our businesses in the next few years with improved returns and a rapid reduction in financial leverage. This will allow us to increase our investment potential and to pursue market opportunities.

We believe in our capabilities to create value through our work in the management of companies of good quality, characterized by good market positioning, tangible competitive advantages, a good cash generation and return on capital employed, and a competent leadership team. We have also determined that our businesses should be conducted strictly according to Ultra's principles - safety first and foremost; governance, integrity and management transparency; financial discipline and soundness; client satisfaction as the basis for our success; differentiation as a competitive factor; operational excellence and qualified and high performance teams.

We are determined to ensure that the Company will continue its successful trajectory of contributing to the development of Brazil, with respect for our clients, consumers, shareholders, business partners, employees, suppliers, capital markets and the society as a whole. We would like to take the opportunity to thank each one of our stakeholders for their trust and contribution in supporting and enhancing Ultrapar and its businesses.

Pedro Wongtschowski

Frederico Curado

Chairman of the Board of Directors

Chief Executive Officer

Considerations on the financial and operational 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 information on Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma is reported without the elimination of intercompany transactions. Therefore, the sum of such information may not correspond to Ultrapar's consolidated information. Additionally, the financial and operational information presented in this document is subject to rounding and, consequently, the total amounts presented in the tables and charts may differ from the direct sum of the amounts that precede them. Except when otherwise indicated, the information presented in this document compares the fourth quarter of 2018 ("4Q18") and the fourth quarter of 2017 ("4Q17).

As from 2018, the IFRS 9 and 15 standards issued by the IASB (International Accounting Standards Board) have been adopted. In order to provide a comparative basis between the information for 4Q18 and 2018 and that of 4Q17 and 2017 shown in this document, the information for 2017 includes alterations in the accounting standards, consequently differing from the values previously reported in the respective earnings releases. Explanations on the impacts of the fourth quarter 2017 compared with the amounts previously published are available in the Company's website (ri.ultra.com.br).

Information denominated EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization; Adjusted EBITDA - adjusted for amortization of contractual assets with customers - exclusive rights; and EBIT - Earnings Before Interest and Taxes is presented in accordance with Instruction 527, issued by the Brazilian Securities and Exchange Commission - CVM on October 04, 2012. The calculation of EBITDA based on net earnings is shown below:

R$ million

4Q18

4Q17

3Q18

Net income

(+) Income and social contribution taxes (+) Financial result

(+) Depreciation and amortization

495.6 314.5 (116.7) 210.2

389.4 233.7 119.4 187.5

323.2 171.7 58.8 210.3

• 1,132.3 1,525.9

• 638.7 813.3

• 113.5 474.3

• 812.5 704.5

EBITDA

903.6

930.1

763.9

Adjustments

(+) Amortization of contractual assets with customers - exclusive rights (Ipiranga)

89.4

116.9

85.8

371.8

463.0

Adjusted EBITDA

993.0

1,046.9

• 849.73,068.9

Executive Summary

Indicators	4Q18	4Q17	3Q18	Δ (%)	Δ (%)	2018	2017	Δ (%)
				4Q18 v 4Q17	4Q18 v 3Q18			2018 v 2017
Average exchange rate (R$/US$)	3.81	3.25 3.96 17% (4%) 3.65 3.19 14%
Brazilian interbank interest rate (CDI)	1.5%	1.8% 1.6% (0.2 p.p.) 0.0 p.p. 6.4% 9.9% (3.5 p.p.)
Inflation in the period (IPCA)	0.4%	1.1% 0.7% (0.8 p.p.) (0.3 p.p.) 3.7% 2.9% 0.8 p.p.
IBC - Br¹	138.4	136.6 138.2 1% 0% 137.3 135.7 1%
Average Brent crude oil (US$/barrel)	67.4	61.5 75.5 10% (11%) 71.1 54.4 31%

1 Quarterly average seasonally adjusted.

In 4Q18, Ultrapar reported an Adjusted EBITDA of R$ 993 million (-5%) and net income of R$ 496 million (+27%).

Ipiranga

Ipiranga reported volumes of 6,160 thousand m³, an increase of 4% compared with 4Q17, with a growth of 3% in diesel, maintaining the tendency since early 2018, and 5% in the Otto cycle, reversing the decline of the first three quarters of 2018. Ipiranga's Adjusted EBITDA was R$ 569 million, a 35% decline in 4Q17 due to the negative effect of cost movements and conditions for fuel imports. In spite of the year-over-year decline, during the course of 2H18, Ipiranga posted a gradual recovery both in volume and results, with a growth of 14% in EBITDA on 4Q18 compared with 3Q18, following a sharp market downturn in 1H18.

Oxiteno

Oxiteno registered a volume of 190 thousand tons, a reduction of 6% in relation to 4Q17, the result of lower sales of specialty chemicals, despite the growth in the volume of commodities and volume sold in the United States. During 4Q18, Oxiteno recognized tax credits from previous fiscal years reflecting the exclusion of the ICMS sales tax from the PIS/COFINS tax calculation base, producing a net effect of R$ 186 million in EBITDA and R$ 153 million in financial income. Consequently, EBITDA in 4Q18 was R$ 280 million, 265% higher than the same period in 2017. Excluding this effect, Oxiteno's EBITDA would have totaled R$ 94 million, an increase of 22% in relation to 4Q17, principally driven by a devaluation of 17% in the value of the Real against the US dollar.

Ultragaz

Ultragaz recorded volumes of 421 thousand tons, a year-over-year reduction of 1% with an increase of 1% in the bottled segment and a reduction of 5% in the bulk segment, impacted principally by lower industrial demand. Ultragaz's EBITDA amounted to R$ 121 million (+151%), principally due to the non-recurring effect of the Cease and Desist Agreement (Termo de Compromisso de Cessação de Prática - TCC) signed with the Brazilian Anti-Trust Authority - CADE in 4Q17 for R$ 84 million.

On the same comparative basis and excluding the TCC's impact, Ultragaz's EBITDA would have shown a reduction of 8%, reflecting a decrease in sales volume in the period and lower participation of the bulk business in the sales mix.

Ultracargo

Average storage at Ultracargo increased by 1% relative to 4Q17, due to greater ethanol handling activity at the Aratu, Santos and Suape terminals, despite the reduction in fuels movement at these terminals. Ultracargo's EBITDA was R$ 40 million in the quarter, up 8% compared with 4Q17, reflecting greater average storage and contractual readjustments.

Extrafarma

Extrafarma ended 4Q18 with 433 stores, opening 68 units in the past 12 months and 27 in the quarter. EBITDA in 4Q18 was R$ 15 million negative, mainly due to the remaining effects of the stabilization process following the installation in June 2018 of the new retail management system, higher pressure from the competitive environment and the increase in the number of new and still maturing stores.

5