Ultrapar Participações S A : 1Q21 Earnings call presentation

ULTRAPAR PARTICIPAÇÕES S.A.

1Q21 Earnings Conference Call

05.06.2021

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

• Record recurring quarterly results for Ultracargo and Oxiteno, and record for the first quarters in Ultragaz
• Renewal of the Board of Directors, with the election of three new members, bringing complementary experiences and skills to Ultrapar's strategy and future. The Shareholders' Meeting was attended by more than 70% of the Company's total capital, with all matters approved by 88% to 99% of the attendees
• Ultracargo's winning bid at concession's auction for the operation of liquid bulks in the port of Itaqui (MA)
• Creation of the Sustainability and Corporate Affairs executive position, reporting directly to the CEO
• First event of the Ultra Series - Meet Ultrapar's Leaders, with Décio Amaral, CEO of Ultracargo

ESG initiatives

Ultrapar

• Donation of more than 5 thousand oxygen concentrators with other 11 companies for the treatment of patients with COVID-19

Ultragaz

• Winning of the gold award in the environment category of the LPG Innovation and Technology Award (Collect Oil Campaign)

Ultracargo

• Operational training course aimed at the community surrounding the new Vila do Conde (PA) terminal for basic training in the operation of port terminals

Oxiteno

• Winning of the Seal of Ethnic-RacialDiversity in the commitment category of the city hall of Salvador (BA)

Ipiranga

• Launch of the Pro-FrotasCarbon Neutral initiative which will allow fleet companies to calculate their greenhouse gas emissions and compensate them with the purchase of carbon credits

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Resilience of the portfolio, with EBITDA growth across all business

EBITDA

R$ million		+13%
		996
		880
	71	+23%
		809

1Q20

1Q21

Non-recurring (Oxiteno's tax credits)

Variations in working capital¹

R$ million

453

Rise in prices of fuels and LPG in 1Q21 vs reduction in prices in 1Q20

(576)

1Q20 1Q21

¹ Variations in trade receivables, inventories and trade payables lines of cash flow

4 ULTRAPAR > CC1Q21 05.06.2021

Net income

R$ million	-19%		Non-recurringtax credits of R$ 149 M in
			1Q20
	169		• R$ 71 M effect in EBITDA
		• R$ 78 M effect in financial result
		137

Financial result - temporary effects of

MTM and exchange rate variation

EBITDA

1Q20

1Q21

Cash flow from operating activities

R$ million

932

✓ Cash flow of R$ 128 M in 1Q21 even with increased investment

in working capital

128

1Q20 1Q21

Ultrapar - Debt and leverage

Net debt and leverage

R$ million	3.3 x		3.3 x
	3.0 x
	11,418	10,537	11,899

Mar-20	Dec-20	Mar-21
Net debt (IFRS 16)	Net debt (IFRS 16) / EBITDA LTM¹

Debt maturity profile
R$ million		Financial debt
8,501												8,453
					4,460
		3,249											45%
					1,414		762
				24%			268
			17%
							8%
										4%			1%
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

¹ Adjusted EBITDA LTM does not include Extrafarma's impairment in Mar-20

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• Increase in net debt due to:
• • Working capital investment in 1Q21
  • Payment of dividends accumulated over two semesters in March 2021
  • Temporary worsening in the mark-to-marketresult of FX hedging instruments
  • Exchange rate variation on the portion of notes designated for hedge accounting
• Reduction of gross debt using cash resources to decrease the cost of carrying debt
• Issue of infrastructure debentures in the amount of R$ 460 M at a cost of 111% of the CDI rate and a 7-year maturity

1Q21

• Average cost of debt (DI+): 2.3%
• Duration (years): 4.6