Ultrapar Participações S A : Earnings call presentation 1Q20

ULTRAPAR PARTICIPAÇÕES S.A.

Earnings Conference Call - 1Q20

05.14.2020

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 trends or that are not statements of historical matters. Investors are cautioned that such forward-looking statements 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. 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) norms. 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 intersegment 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.
• Please note that all financial information presented in this document consider both the adoption of the IFRS 16 norm and the segregation of certain expenses of the Holding.
• Information denominated EBITDA and Adjusted EBITDA is presented in accordance with Instruction 527, issued by the Brazilian Securities and Exchange Commission - CVM on October 4, 2012.

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COVID-19 - Initiatives for combatting the crisis

Essential activities in the context of the measures implemented to face the pandemic

• Protection and safety of our personnel and operational continuity

Main social initiatives - Ultrapar

• Donation to construction of hospitals (Ipiranga, Ultragaz and Ultracargo)
• Donation of diesel for the delivery of 70º alcohol and distribution of alcohol gel sanitizer at cost price to franchisee stores (Ipiranga and am/pm)
• Concession of discounts on fuels to healthcare workers (Abastece Aí)
• Assistance package for resellers (Ipiranga)
• Collective donation of ventilators (Oxiteno, Ultragaz and Ultracargo)
• Donation of basic food baskets, soap bars, LPG bottles (P-13), face masks and alcohol gel (Ultragaz)
• Disposal of space and infrastructure to vaccination programs at the Pará state and donation of face masks and gloves to the states of Pará, Maranhão and Ceará (Extrafarma and Ultracargo)

3 ULTRAPAR > CC1Q20 05.14.2020

COVID-19 - Main operational impacts

Ipiranga	Ultragaz
Sales volume (mainly Otto cycle)	Volume for residential use (bottled)
Inventory losses	Demand from small and medium-size companies (bulk)
	and higher freight expenses

Oxiteno	Extrafarma
Lower demand of Asian countries	Lower revenues (7% of stores closed and about 85% with
Depreciation in exchange rates and higher sales to the	less working hours)

Home & Personal Care segment

4 ULTRAPAR > CC1Q20 05.14.2020

Ipiranga - 1Q20 performance

Volume

000 m³

Franchises

			-2%
5,587				5,490
2,810	-5%		2,669
2,674	+2%	2,722
1Q19				1Q20
		Diesel				Otto cycle

EBITDA

R$ million

-20%

• Otto cycle: sales impacted by the COVID-19pandemic
• Diesel: higher sales to the TRR¹ and the resale segments

Network: 7,106 service stations

¹ Small diesel bulk retailers

✓ 2,373 convenience stores

✓ 1,488 Jet Oil franchises

• Penetration of 33%
• 4 DCs in operation
• 8 company-operated stores (6 in SP and 2 in RJ)

597

480	Lower sales volume

Lower margins / inventory losses

Management of costs and expenses

For the sixth consecutive year, Ipiranga and am/pm have conquered the "The Best of São Paulo" award, by

Folha de São Paulo newspaper, in the Service Station and Convenience Store categories

1Q19 1Q20

5 ULTRAPAR > CC1Q20 05.14.2020

Oxiteno - 1Q20 performance

Volume

000 ton

0%

International prices

US$/ton

YoY	QoQ
Ethylene -7%	-2%

180 32

+2%

181 32

✓ Commodities: spot exports

1,133	1,197	1,113

1,077

1,051

PKO	40%	48%
MEG	-17%	-5%

148

0%

148

✓ Specialties: higher sales in the Crop

Solutions and HPC segments, softened

by lower exports of solvents to Asia

798	727	698
698	582	601

	979	Ethylene
697	PKO¹
	665	MEG²
661

1Q19		1Q20
Specialties		Commodities

Average exchange rate

R$/US$

			4.46
		4.12	✓ +18% YoY
	3.92	3.97
		✓ +8% QoQ
3.77

1Q19 2Q19 3Q19 4Q19 1Q20

6 ULTRAPAR > CC1Q20 05.14.2020

1Q19

2Q19

3Q19

Source: PCI e ICIS LOR

EBITDA

R$ million

193

71

+207%

40 122

1Q19 1Q20

Non-recurring (tax credits)

4Q19

1Q20

¹ Palm Kernel Oil

² Mono-Ethylene Glycol

Better margins in US Dollars

Real devaluated against US Dollar (R$ 0.69/US$)

Ultragaz - 1Q20 performance

Volume

EBITDA

000 ton	R$ million
+7%	+34%
	Brazil: +5%

395		421
126	+6%	134	110
270	+7%	288

147

1Q19 1Q20

Bottled Bulk

1Q19

1Q20

Volume	EBITDA
Bottled: impacts of COVID-19 in the final weeks of March/20 and higher	Higher sales volume
sales in the Mid-West and Southeast regions
	Lower expenses
Bulk: higher sales to industries, condominiums, and for special gases
(propellants)

7 ULTRAPAR > CC1Q20 05.14.2020

Ultracargo - 1Q20 performance

Effective storage - monthly average

000 m³

+20%

907 758

1Q19

1Q20

Volume

Higher handling of fuels (capacity expansions at Santos and Itaqui terminals)

Increase in handling at Suape and Aratu terminals

8 ULTRAPAR > CC1Q20 05.14.2020

EBITDA

R$ million

+52%

55% 47%

91 60

1Q19		1Q20
	EBITDA		EBITDA Margin (%)

EBITDA

Higher revenues (higher handling and contractual readjustments) Cost dilution - operating leverage

Extrafarma - 1Q20 performance

Number of stores (end of period)

-7%

440 411

16% 6%

54%	38%	34%	40%

Gross revenues

R$ million

-5%

546 521

EBITDA

R$ million

+630%

9

46%	60%
1Q19	1Q20

Up to 1 year 2 to 3 years > 3 years

1Q19 1Q20

1
1Q19	1Q20

Store selectivity - YoY	Gross revenues
✓ 49 closures due to weak performance	Smaller number of stores
✓ 20 openings	Lower revenues at the wholesale segment
	Ramp up process of new stores

9 ULTRAPAR > CC1Q20 05.14.2020

EBITDA

Better margins

Productivity gains

Tax credits in 1Q19 = R$ 9 million

Ultrapar - 1Q20 performance

EBITDA
R$ million	+12%
782	+3%	880
71
		809

1Q19

1Q20

CAPEX

R$ million

+31%

350

268

1Q19 1Q20

Non-recurring (tax credits at Oxiteno)

10 ULTRAPAR > CC1Q20 05.14.2020

Net income

R$ million
-30%
243	Higher financial expenses
169	EBITDA growth
	Tax credits at Oxiteno

1Q19

1Q20

Operational cash flow¹

R$ million

+184%

731

257

1Q19 1Q20

¹ CF of operational activities - CF of investment activities (ex-financial investments)

Ultrapar - Debt profile

Financial leverage

R$ million	3.27 x
3.03 x
10,269	11,418
1,704
1,589
8,681	9,713
Dec-19	Mar-20
Leases payable (IFRS 16)
Net debt
Net debt (IFRS 16) / Adjusted EBITDA LTM¹

Amortization profile

FX variation on US$ debt:

• No cash impact = R$ 730 M (US$ debt protected by hedge accounting)
• Adjusted financial leverage = 3.06x

Breakdown by currency

2%

9%

45%

53%44%

	Local currency		Foreign currency		Unrealized losses from hedging instruments
	Hedged		Non hedged

R$ million		Financial debt
7,249
					5,753
					5,073
			1,806	1,623	30%	1,989	718	34%
			12%
			11%	10%
				4%
		Cash and Up to 1 year 1 to 2 years 2 to 3 years 3 to 4 years	4 to 5 years > 5 years
		cash
	equivalents	1Q20: ✓ Duration (years): 4.7 ✓ Average cost (% CDI): 121%

• Adjusted EBITDA LTM does not consider the impairment at Extrafarma for Dec-19 and Mar-20 11 ULTRAPAR > CC1Q20 05.14.2020

Initiatives to reinforce liquidity

• New credit facilities of R$ 1.5 billion
• • R$ 1.3 billion in promissory notes
  • R$ 0.2 billion in bank credit securities
• Reduction of ~30% on the investment's plan for 2020

ULTRAPAR PARTICIPAÇÕES S.A.

Investor Relations

55 11 3177-7014 [e-mail] ri.ultra.com.br