Ultrapar Participações S A : 4Q20 Earnings call presentation

ULTRAPAR PARTICIPAÇÕES S.A.

4Q20 Earnings Conference Call 02.25.2021

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 and Adjusted EBITDA is presented in accordance with Instruction 527, issued by the Brazilian Securities and Exchange Commission - CVM on October 4, 2012.

Main ESG initiatives for the quarter

Ultrapar

• ✓ Notable performance in the Carbon Disclosure Project (CDP), retaining its B score for the Climate Change theme and debuting with the same score in the Water Security theme

  • • Companies in the oil & gas segment and in South America reached average score D

• ✓ Continuous participation in the B3 Carbon Efficient Index (ICO2 B3) since 2012

• ✓ Creation of the Sustainability and Corporate Affairs executive position, reporting directly to the CEO

Ultragaz

✓ Participation in the Vote Safely campaign, to raise awareness on the necessary precautions with respect to COVID-19 on the election day

✓

Participation in an educational action delivering booklets with explanation about COVID-19

Ultracargo

✓ Consolidation of the materiality assessment

✓

Sponsorship of the Community in Action award, which recognizes social projects in the Santos region, where Ultracargo operates its largest port terminal

Oxiteno

✓ Rise of two categories in the EcoVadis ranking, to the Platinum category, which has only been achieved by 1% of all companies evaluated

✓

Achievement of Abiquim's Kurt Politzer Prize for technology with the project for coatings on coalescent made entirely from renewable sources

Ipiranga / Oxiteno

✓ Approval of projects at Inova 2030 - Young SDG¹ Innovators, which is an incubator program for young professionals to solve business challenges

Extrafarma

✓ Donation of hygiene and food items to the population of the

state of Amapá during the severe electricity outage in

November

¹ SDGs: UN's Sustainable Development Goals

Ultrapar - 4Q20 and 2020 performance

Reported EBITDA

Net income

Recurring EBITDA¹

R$ million

-11%

-5%

3,473

4Q19

4Q20

Operational cash flow²

✓ Resilience of Ultrapar's portfolio:

3,311

• • Ipiranga as the most affected business

• • Oxiteno, Ultragaz, Ultracargo and Extrafarma with significant growth

2019

2020

¹ Does not include the following non-recurring effects: ✓ 2019: R$ 66 M of Ultracargo's TAC (2019), R$ 593 M of Extrafarma's impairment (4Q19) and R$ 14 M of Oxiteno Andina's asset write-off (4Q19) ✓ 2020: R$ 156 M of Oxiteno's (1Q20 and 4Q20) and R$ 12 M of Ultracargo's (2Q20) tax credits ² Cash flow from operating activities minus cash flow from investment activities (ex-financial investments)

Ultrapar - Debt and leverage

Net debt and leverage

R$ million

3.0 x

Dec-19 4.7 years

Debt maturity profile

3.3 x

3.2 x

3.1 x

Mar-20

Jun-20

Sep-20

R$ million

Financial debt

8,672

7,310

3,256

2,703

3,092

785

5%

231 1%

Cash and Up to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years cash equivalents

> 5 years

19%

16%

18%

¹ EBITDA LTM does not include Extrafarma's impairment

3.0 x

• ✓ Greater cash generation

• ✓ Net debt reduction

• ✓ Gradual reduction of financial leverage

• ✓ Elimination of financial covenants

Net debt (IFRS 16)

Dec-20 4.6 years

Net debt (IFRS 16) / EBITDA LTM¹

Duration

Debt pre-payment to reduce carrying costs

R$ million

20,588

19,210

42%

9,798
8,672
Sep-20	Dec-20
Cash	Gross debt (IFRS 16)

Ultragaz - 4Q20 and 2020 performance

Volume

000 ton

-1%

432

426

132	137
300	289

4Q19

1,706

+2%

1,732

4Q20

532	534
1,174	1,198

2019

2020

BottledBulk

BottledBulk

EnvasadoGranel

EBITDA - record level in 2020

R$ million

-8%

168

4Q19

Volume

Bottled segment

✓ Benefited by the social distancing measures imposed by the pandemic in 1H20

✓ Lower sales in the Southeast region Bulk segment ✓ Higher sales to industries

✓ Gradual recovery of sales to commerce and services, though still lower than 4Q19 levels

EBITDA 4Q20

154

4Q20

Lower sales volume

Higher maintenance costs(concentration of tankage

requalification)

Increased expenses withvariable compensation and

logistics

+24%

729

587

2019

EBITDA 2020

2020

Higher sales volume

Operational efficiency

Initiatives to reduce expenses

Ultracargo - 4Q20 and 2020 performance

Growth leveraged by capacity expansions

Cubic meters (000)

2,959 814

3,070

2019

838

10,779 741

4Q19

4Q20

2019

Average installed capacityCubic meters sold

EBITDA - record level in 2020

R$ millionR$ million

Net revenues

12,244 832

+9%

153

166

2020

4Q19

4Q20

Reported EBITDA	Recurring EBITDA¹
+43%
+105%	+41%

77

+19%

644

Capacity and net revenues

2020

EBITDA

54

337

326

Revenue growth

Capacity expansions throughout 2H19 and 1H20

Greater number of spot operations and turnover of fuels

New contracts

Contractual readjustments

230

165

Costs and expenses dilution (productivity gains)

4Q19

35%

EBITDA margin

4Q20

2019

2020

46%

30%

52%

¹ Non-recurring effects: R$ 66 M of TAC (2019) and R$ 12 M of tax credits (2020)

2019

2020

Oxiteno - 4Q20 and 2020 performance

Volume growth

000 ton

+17%

+3%

175 33

204 33

734

753

0%

142

+21%

171

✓ Sales growth in the home and personal care, crop solutions and coatings segments, as well as higher sales in the US

4Q19

4Q20

2019

2020

SpecialtiesCommodities

145	130
589	624

Reported EBITDA - record level in 2020

¹ Non-recurring effects: R$ 14 M of asset write-off in Andina (4Q19) and R$ 71 M and R$ 85 M of tax credits (1Q20 and 4Q20)

More favorable FX level

Average R$/US$

5.39

5.38

5.40

4.46

4.12

4Q19

1Q20

Recurring EBITDA¹

✓ +31% YoY ✓ Stable QoQ

2Q20

3Q20

4Q20

Ipiranga - 4Q20 and 2020 performance

Volumes recovering, but still below 2019 levels

000 cubic meters

-5%

6,112

5,815

23,494

-9%21,461

3,116	2,847
2,905	2,861

4Q19

11,550

-14%

11,533

9,895

-3%

11,164 -28%

4Q20

Quarterly performance - YoY

2%

-5%-7%

-5%

-2%-9%

-17%

2019

Diesel

Otto cycle

2020

✓ Diesel: more resilient throughout the crisis

✓ Otto cycle: sales impacted by the pandemic

Network: 7,107 service stations

1Q20

2Q20

3Q20

Diesel

Otto cycle

4Q20

Convenience stores

• ✓ 1,804 convenience stores

  • • +26 stores in 4Q20

  • • Penetration of 25%

• ✓ 4 DCs in operation

• ✓ 55 company-operated stores

  • • Focus on São Paulo and Rio de Janeiro

• ✓ New store model under implementation

EBITDA

Gross revenues

Extrafarma - 4Q20 and 2020 performance

More density and profitable network

Gross revenues

EBITDA

Growth in Same Store Sales

• ✓ Improved results from promotional initiatives

• ✓ Implementation of the personalized promotional coupon

• ✓ Annual readjustment in medicine prices

• ✓ Stronger sales through digital channels

Lower number of stores

Increased profitability ✓ Higher revenues ✓ Productivity gains and lower expenses

Closing of under-performing stores

EBITDA guidance for 2021

Ultrapar¹

Ipiranga¹

Oxiteno¹

Ultragaz¹

4,650

3,800 ≤∆ ≤

• • Main assumptions:

  2,100 ≤ ∆ ≤ 2,500

  800 ≤ ∆ ≤ 1,100

  670 ≤ ∆ ≤ 750

  • − Exchange rate - R$ 5.30/US$

  • − Brazilian GDP growth - 2.2%

  • − Annual inflation (IPCA) - 3.0%

Ultracargo

340 ≤ ∆ ≤ 370

Extrafarma

100 ≤ ∆ ≤ 140

Holding and Others

¹Adjusted EBITDA

• • The Company will not use the zero cost collar structure for Oxiteno in 2021.

  (210)

• • The financial projections are based in information currently available, estimates and assumptions of the Company's executive board, and do not include the effects of potential acquisitions or divestments. Such estimates are not guarantee of performance and involve risks and uncertainties, since they refer to future events and depend on circumstances which may or may not occur. General economic conditions and market conditions, among other factors, may lead to results which differ materially from the numbers disclosed.

IR event schedule for 2021

March/25

1st semester

• ✓ Event with Ultracargo

  April/14

• ✓ Shareholders' Meeting

  Events with date to be defined

  May/5

• ✓ 1Q21 Results Release

  May

• ✓ Ultra Day

  2nd semester

  • ✓ Event with AmPm

  • ✓ Event with abastece aí

  • ✓ Event regarding ESG

  • ✓ International events, etc.

  August/11

• ✓ 2Q21 Results Release

  November/3

• ✓ 3Q21 Results Release

ULTRAPAR PARTICIPAÇÕES S.A.

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