Ultrapar Participacoes S A : 2Q23 Earnings call presentation

ULTRAPAR PARTICIPAÇÕES S.A.

2Q23 Earnings Conference Call

08.10.2023

Disclaimer

Forward-looking statements

• This presentation may include forward-looking statements about future events. Such statements reflect only the expectations of the management of the Company. 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 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

• In May and August 2021, the sales agreements of Extrafarma and Oxiteno were signed, respectively, according to the Material Notices disclosed at the time. On December 31st, 2021, Ultrapar classified these businesses as assets and liabilities held for sale and discontinued operations. The sale of Oxiteno was concluded on April 1st, 2022, and thus ceased to be part of discontinued operations and Ultrapar's results as of 2Q22. The sale of Extrafarma was concluded on August 1st, 2022, and its results are shown within discontinued operations until this date. In this presentation, the financial information of 2022 related to Ultrapar corresponds to the consolidated information (pro forma) of the Company, that is, the data considers the sum of continuing and discontinued operations, unless otherwise indicated.
• The financial information presented on this document were extracted from the individual and consolidated interim financial information ("Quarterly Information") for the three months period ended on June 30, 2023, and prepared in accordance with the pronouncement CPC 21 (R1) - Interim Financial Reporting and the International Accounting Standard IAS 34 - Interim Financial Reporting issued by the International Accounting Standards Board ("IASB"), and presented in accordance with the applicable rules for Quarterly Information, issued by the Brazilian Securities and Exchange Commission ("CVM"). The information related to the businesses are presented without the elimination of intersegment transactions. Therefore, the sum of such information may not correspond to Ultrapar's consolidated information (pro forma). Additionally, the financial and operational information presented in this discussion is subject to rounding and, consequently, the total amounts presented in the tables and charts may differ from the direct numerical sum of the amounts that precede them. Information denominated EBITDA are presented in accordance to Resolution 156, issued by the CVM on June 23, 2022.

2 ULTRAPAR > CC2Q23 08.10.2023

Ultrapar - 2Q23 performance

Recurring EBITDA¹

R$ M

1,119
16	933	✓ Lower EBITDA of Ipiranga,
	-15%	partially offset by higher EBITDAs
1,103		of Ultragaz and Ultracargo

2Q22		2Q23
Continuing operations		Discontinued operations

Net income

R$ M

-48%

460

239

2Q22

2Q23

Lower EBITDA

Capital gain from the sale of Oxiteno in 2Q22

Higher costs and expenses with

depreciation and amortization

Lower net financial expenses

Approval of the distribution of R$ 274 M in

interim dividends (R$ 0.25/share)

CAPEX

R$ M

412

5		385
-5%
	✓ Lower investments in Ultracargo
407		and Ipiranga, partially offset by
	higher investments in Ultragaz

2Q22		2Q23
Continuing operations		Discontinued operations

¹ Non-recurring items described on page 2 from Earnings Release

3 ULTRAPAR > CC2Q23 08.10.2023

Cash flow from operations

R$ M

1,199

301

376898

2Q22 2Q23

• Lower investment in working capital in 2Q23 (fuel prices reductions)
• Reduction of R$ 301 M in the draft discount balance in 2Q23

Ultrapar - Debt and leverage

Net debt and leverage

R$ M

2.2x	2.0x	2.1x
8,172	8,259	8,007

Jun-22	Mar-23	Jun-23
Net debt (IFRS 16)		Net debt (IFRS 16) / LTM EBITDA¹

✓ Reduction in net debt	✓ Increase in leverage QoQ
Operating cash generation	•	Lower LTM EBITDA from continuing operations
Reduction in draft discount	•	Lower net debt

• Reduction of R$ 301 M vs 1Q23
• Reduction of R$ 1,056 M vs 2Q22

Debt and debt maturity profile

R$ M

	2Q22	1Q23	2Q23
Net debt	8,172	8,259	8,007
Trade payables - reverse factoring (draft discount)	2,525	1,770	1,468
Financial liabilities of customers (vendor)²	537	423	388
Receivables from divestments (Oxiteno and Extrafarma)	(708)	(1,098)	(1,083)
Net debt + draft discount + vendor + receivables	10,525	9,354	8,779

				Financial debt
6,216
					2,903		4,013
	2,500	1,935
			819		522	32%
	20%	15%	23%
	6%	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				Duration: 3.9 years
equivalents

• LTM Adjusted EBITDA does not include Extrafarma's impairment, capital gain and closing adjustments from the sales of ConectCar, Oxiteno and Extrafarma, and extraordinary tax credits; furthermore, it does not include LTM result from Oxiteno and Extrafarma since the closing of the sales
  2 Vendor amounts included in the trade payables line in 2Q22

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Ultragaz - 2Q23 performance

Volume

000 ton

+4%

425	417	442
144	148	156	+8%
281	269	286	+2%

EBITDA

R$ M

+55%

384 405

261

2Q22 1Q23 2Q23

Bottled		Bulk

2Q22

614

EBITDA R$/ton

1Q23

922

2Q23

917

Volume 2Q23 x 2Q22

Bottled

Higher market demand

Bulk

Higher sales to industries

Recurring EBITDA 2Q23 x 2Q22

Efficiency and productivity gains

Higher sales volume, with better mix

Inflation pass-through

Higher expenses

5 ULTRAPAR > CC2Q23 08.10.2023