ULTRAPAR PARTICIPAÇÕES S.A.
3Q21 Earnings Conference Call
11.04.2021
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). The financial information of Ultrapar corresponds to the Company's consolidated information. The information on Ultragaz, Ultracargo, Oxiteno, Ipiranga 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 is presented in accordance with Instruction 527, issued by the Brazilian Securities and Exchange Commission - CVM on October 4, 2012.
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Highlights and ESG initiatives for the quarter
Highlights
-
Announcement of the succession plan of the leadership of
Ultrapar's Board of Directors - Marcos Lutz assumes as CEO of Ultrapar in Jan/22, as part of the process to become Chairman of the Board in Apr/23 - Frederico Curado will take over as Vice-Chairmanof the Board of Directors as from Jan/22
- Leonardo Linden took over as CEO of Ipiranga and Marcelo Araújo as Chief Corporate Development & Advocacy Officer of the Holding
- Evolution on the portfolio review process with the announcement of the divestment of Oxiteno and conclusion of the sale of
Ultrapar's equity interest in ConectCar - End of negotiations for the acquisition of REFAP
- Record quarterly results registered at Ultracargo and Oxiteno
- Issuance of Agribusiness Receivables Certificate (CRA) by Ipiranga in the amount of R$ 960 million at 102.75% of the CDI
- Review of the financial guidance for Ultrapar and its businesses for 2021
ESG initiatives
Ultrapar
- Certification of the Holding as Best Companies to Work for by Great Place to Work (GPTW)
Ultragaz
- Participation in the Climate Change and Water Security questionnaires (CDP Supply Chain program), transport of oxygen cylinders to hospitals in the state of São Paulo and distribution of folders for the educational campaign on the prevention and care for hypertension issues and for the Growing Up Without Violence Project
Ultracargo
- Launch of the SOUL+ Innovative Ideas Program for Santos, Aratu and Suape terminals, focused on sustainability and productivity, and partnership with Ayrton Senna Institute to support the Socioemotional Dialogues project in public schools in São Luís (state of Maranhão)
Oxiteno
- Signing of the UN Global Compact's Gender Equality program and participation in the second edition of Inova 2030
Ipiranga
-
Partnership with CPFL in the Electric Mobility R&D project of ANEEL, signing of the letter
"Business Leaders for the Climate" defending climate goals, participation in the second edition of Inova 2030 and record of number of serviced people reported at the Health in the
Road Program
Extrafarma
- Use of stores as collection points of hygiene items for donation
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Ultrapar - 3Q21 performance
EBITDA | |
R$ M | -2% |
1,038 | 1,017 |
Reduction in Ipiranga
Record results at Oxiteno and
Ultracargo
3Q20 | 3Q21 |
CAPEX
R$ M
+16%
1,168
Net income | |
R$ M | +35% |
374 | |
277 | 196 |
-36% | |
178 | |
3Q20 | 3Q21 |
Non-recurring (income tax reversion)
Cash flow from operations
R$ M
- Income tax: reversion of income tax over the SELIC's adjustments of tax credits
- Financial result: temporary deterioration of MTM of hedges
1,004
• Investments mainly in Ipiranga, Ultracargo and
Ultragaz
2,630
1,882
-
Investment in working capital (increases in fuels and raw materials prices), despite the
EBITDA growth
9M20 9M21
4 ULTRAPAR > CC3Q21 11.04.2021
9M209M21
Ultrapar - Debt and leverage
Net debt and leverage
R$ M
3.1 x | 2.8 x | 3.0 x |
10,790 | 10,923 | 11,636 |
Sep-20 | Jun-21 | Sep-21 |
Net debt (IFRS 16) | Net debt (IFRS 16) / EBITDA LTM¹ |
- Increase in the net debt due to:
- Temporary deterioration of mark-to-marketresult of hedges R$ 211 M vs Jun/21
- FX variation on the net debt portion of bonds designated for hedge accounting R$ 221 M
- Payment of interim dividends R$ 218 M
Lengthening of the debt profile with the issuance of CRA
R$ M
Financial debt | ✓ Issuance of CRA: R$ 960 M with 7-year maturity at 102.75% of the CDI | ||||||||||||||||||||
9,147 | |||||||||||||||||||||
6,588 | 3Q21 | ||||||||||||||||||||
2,421 | 3,125 | 56% | ✓ Average cost of debt (curve): DI + 0.2% (105% of the CDI) | ||||||||||||||||||
1,125 | 330 | 261 | ✓ Duration (years): 4.9 | ||||||||||||||||||
19% | |||||||||||||||||||||
15% | |||||||||||||||||||||
7% | 2% | 2% | |||||||||||||||||||
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 |
- EBITDA LTM does not include the impairment of Extrafarma for Sep-20 (registered in Dec-19) and for Jun-21 and Sep-21 (registered in Jun-21)
5 ULTRAPAR > CC3Q21 11.04.2021
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Ultrapar Participações SA published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 13:24:13 UTC.