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2 CONSIDERATIONS 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 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 forwardlooking statements with respect to revenues, earnings, performance, strategies, prospects and other aspects of the business of Ultrapar Participações S.A. ( Ultrapar ) 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. Ultrapar is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise. For this reason, readers should not place undue emphasis on these forward-looking statements. 2 ULTRA DAY >

3 Introduction

4 AGENDA 2:00 pm Registration open 2:20 pm CEO opening and welcome message 2:30 pm Company presentation: Ipiranga 3:00 pm Break 3:20 pm Company presentation: Extrafarma 3:50 pm Company presentation: Ultrapar 4:20 pm Q&A 5:00 pm Closing remarks 4 ULTRA DAY >

5 ULTRAPAR MULTI-BUSINESS COMPANY Second largest fuel distributor in Brazil 7,814 service stations Largest convenience store network in Brazil Leader in specialty chemicals derived from ethylene oxide in Latin America 12 production units in 5 countries Largest LPG distributor in Brazil 6 thousand independent resellers Serving 11 million households 52 thousand customers in the bulk segment Largest supplier of liquid bulk storage facilities in Brazil 6 terminals located in the main Brazilian ports 696 thousand m³ of storage capacity Leadership position in the North and Northeast regions 366 stores with a presence in 11 states 2 DCs Ultrapar is the 5 th largest Brazilian group in revenues¹ 16 thousand employees Market capitalization: R$ 42 billion ¹ Source: Valor edition Sep/2017 figures 5 ULTRA DAY >

6 SOLID, PROFITABLE AND ENDURING COMPANY 80 years of history Differentiation through innovation Discipline in capital allocation Alignment of interests Resilience Long-term financial soundness Leveraged on the Brazilian economy growth Leadership position Management model designed for value creation 6 ULTRA DAY >

7 VISIBILITY TO MAINTAIN THE GROWTH TRA JECTORY Investment in our businesses Organizational development CAPEX (R$ billion) People: ensure readiness of leadership to meet 2.2 challenges and succession Innovation: tools and processes to keep it at vanguard LTM Sep/17 Evolve constantly the corporate governance Continuous growth with increasing value generation for all stakeholders 7 ULTRA DAY >

8 Ipiranga

9 RECENT CHANGES IN THE FUEL MARKET Supply dynamic For several years Prices did not follow international benchmark Petrobras was the sole fuel supplier Fuel prices over time Gasoline (Base 100) Recently Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Mar-17 Nov-12 May-17 Jan-13 Jul-17 Mar-13 Sep-17 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Petrobras new pricing scheme Daily price adjustments aligned with international price parity Partial supply guarantee Diesel (Base 100) Opening opportunities for new sources of supply Imports Petrobras monthly price adjustments (October/16) Petrobras daily price adjustments (July/17) 9 ULTRA DAY >

10 SCALE AND ROBUST DISTRIBUTION INFRASTRUCTURE Scale and operational excellence provide long-term advantages under this new scenario 74 logistics facilities* across Brazil * 28 owned, 25 pooled storage terminals and 21 leased storage in third parties $ ~ R$ 700 million CAPEX for expansion and construction of storage terminals since million m³ handled per month > 4,000 daily deliveries Imports Until 2014: imports made only by Petrobras 2016 Sep 2017: 14% of diesel and gasoline imported outside the Petrobras system Distributors share on imports 18% Ipiranga 735 thousand m³ capacity +9% CAGR ( ) 56% 12% Distributor A Distributor B Under construction/expansion +30 thousand m³ 14% Others 10 ULTRA DAY >

11 CONTINUOUS INVESTMENTS IN THE SERVICE STATION NETWORK Nationwide presence # of service stations S/SE 2017 = 72% 2007 = 100% N/MW/NE 2017 = 28% 2007 = 0% % of Ipiranga stations 7,814 7,563 7,056 7,230 6,725 6,460 6,086 5,499 5,662 3,276 3, Sep/17 Acquisition of Texaco in 2009 Acquisition of DNP in 2010 Net additions through organic expansion: ~ 2,500 service stations Potential market for network expansion Unbranded service stations > 17 thousand service stations across Brazil¹ ¹ Amounts for 2016 Deep market analysis Ipiranga approach + = Execution capability Optimization of network expansion Robust structure and well-trained teams Process management provides agility and adherence to the economic feasibility analysis Team is equipped with tools for achieving greater effectiveness and productivity use of digital intelligence 11 ULTRA DAY >

12 DIVERSIFICATION IN PRODUCTS AND SERVICES OFFERED A COMPLETE SERVICE STATION WAITING FOR YOU KM de Vantagens: >25 million members Eco-efficient service stations: >1,000 stations Bakeries: approximately 800 bakeries ConectCar Virtual service station Beer Cave: >400 units am/pm Supply: 4 DCs JetOil Digital New concepts for am/pm Super Store Estação (Stations) New products launches DT Clean Octopro Connected station: >500 stations with electronic panels and >600 with beacons Abastece Aí app: >1 million downloads 12 ULTRA DAY >

13 AM/PM THE LARGEST CONVENIENCE STORE NETWORK IN BRAZIL 4 th largest franchise network in Brazil according to the ABF Ranking 2016 Top 20 largest franchisee networks based on sales according to Abras Ranking 2016 Network comprised by 2.3 thousand units Opportunities Model still incipient in Brazil compared with other countries Consumers increasingly seeking convenient solutions The am/pm + service station combination increases fuel sales by 15% to 20% 66% 18% 14% 2 stores 1 store + Fast Food + Basic convenience Urban: 50m² + Bakery + Enhanced convenience +100%¹ With bakery: 70m² + Beer Cave + Meals + Minimarket + Coffe shop + Restaurant + Food court +30%¹ Super Store: 400m² Estação: 800m² With bakery and Beer Cave: 80m² am/pm Supply unique logistics solution for convenience in service stations 4 distribution centers Serving ~1,500 stores Better offering - covers 45% of the products basket Standardization of products assortment and availability Greater attractiveness and profitability for the franchisee 13 ¹ Additional contribution to stores revenues (% over the immediately preceding store model) % of each am/pm store model, 2% of other models ULTRA DAY > Pilot operations

14 KM DE VANTAGENS THE LARGEST LOYALTY PROGRAM IN BRAZIL The largest loyalty program in Brazil Over 25 million members Mastercard Advisors¹ study shows that after joining the Km de Vantagens program, consumers: Spend 70% more at Ipiranga service stations Increase the number of visits by 60% Participation in Rock in Rio festival 500 winning clients in nationwide promotion Over 10 thousand tickets redeemed Over 2.5 million airline tickets issued since the beginning of the program Over 150 million benefits distributed since the launch Opening of Km de Vantagens Hall theater Rio de Janeiro Belo Horizonte ¹ Accumulated / Conducted in January 2017 with 92 thousand consumers. Comparison: 6 months prior x 6 months after joining the program 14 ULTRA DAY >

15 RELATIONSHIP WITH IPIRANGA RESELLERS (EXAMPLES) Ipiranga Convention Presentation of Ipiranga s marketing plan and of principal trends for the sector to the resellers Average of 4.6 thousand service stations represented in the convention Clube do Milhão Convention Convention Disney Institute USA NACS HSM Clube do Milhão Incentives for the resellers and franchisees 4.7 thousand rewarded service stations since 2004 NACS (USA) the world s largest trade fair for the convenience and service station segments 3.4 thousand Ipiranga service stations have already taken part since 2009 Executive education program by HSM One module in the USA Cornell University 160 reseller attended in 2017 Disney Institute Program Quality in services 400 resellers have participated since 2014 Mundo VIP Service station employee incentive and training program (VIP) 65 thousand VIPS awarded since 2006 and 38 thousand trained every year 15 ULTRA DAY >

16 Extrafarma

17 ENTRY OF ULTRA IN THE RETAIL PHARMACY MARKET Market fundamentals with characteristics and attributes common to Ultrapar s businesses Significant market, with growth leveraged on the Brazilian economy and, at the same time, resilient Growing pharma market sales 3.0% 0.5% -3.8% -3.6% % 102 CAGR 12% Retail pharmacy market undergoing a consolidation process Scope for differentiation Revenue¹ (R$ billion) GDP² Business plan Application of the Ultra management model and philosophy to a well-established network in its core region ¹ Source: IMS Health (excluing mobile phones and convenience items) annualized ² Focus projection for 2017 as of November 17, 2017 Sector undergoing consolidation Market share of the four networks with the fastest expansion rate % To prepare the company for accelerated growth 25.5% 26.3% 26.7% Organic investments for growth Acquisitions as a potential upside Revenue of Raia Drogasil, DPSP, Pague Menos and Extrafarma divided by the market s revenues (IMS Health) 17

18 EXTRAFARMA TODAY Extrafarma in Brazil 366 drugstores Leader in Pará, Maranhão and Amapá Vice leader in Ceará Mature store sales: R$ 6.6 million Densification in Rio Grande do Norte and Piauí 88 openings LTM More than 6 thousand employees Recent debuts in the states of Pernambuco, Bahia, Paraíba, Tocantins and São Paulo Average store: 250 ~ 300 m² 2 Distribution centers (Pará and Ceará) Present in 11 states 18

19 WORK PLAN MAIN OPERATIONAL FOCUS Differentiated shopping experience People as a differential Operational excellence Accelerated expansion 19

20 A MORE SOLID RETAIL PLATFORM New telesales Assortment and categories management Relaunch of the Extrafarma Clube New visual communication New store model New brand 20

21 NEW STORE MODEL View from entrance door View towards cash checkout Store front and external area Medication dispensing counter Cash checkout counter 21

22 REBRANDING AND REVITALIZATION OF STORES Customer oriented information More attractive imaging Greater store standardization Store activities revolve around the consumer Uniformity among Extrafarma stores in Brazil Existing stores adapted to the new model New stores rolled out under the new brand identity 22

23 INITIATIVES FOR CATEGORY MANAGEMENT (EXAMPLES) Increased sales and greater profitability of the category while offering what consumer seeks more assertively OTC medicines Partnership with the suppliers Optimization of product mix Improved display and communication of the products on the shelves Lower inventory New end-of-aisle display Nail polish 23

24 TALENT MANAGEMENT GEARED TO COMPANY EXPANSION Talent attraction Initiatives for people development and retaintion Clear and simple career plan Pharmacist internship program Store manager trainee program District manager trainee program Store leadership mapping Training stores / Training leaders Remote teaching platform 61 programs provided 703 store leaders took part in the programs 918 pharmacists with access to the platform Satisfied people and engaged with the company Organizational climate survey Turnover Better customer service Lower employee turnover 74% 89% 72% 76% 22% 21% 29% 30% Lower hiring and training expenses Adherence Favorability Extrafarma 9M16 9M17 Abrafarma (market) 24

25 PRODUCTIVITY INITIATIVES AND COST MANAGEMENT Principles Initiatives (examples) In-depth analysis and decision-making Working shifts at stores Workforce Utilities Rental expenses Merchant acquirer rates Productivity of distribution centers Optimization of processes Impact on expenses... R$ million Below-inflation¹ increase on expenses % IT % Effective controls 2015 inflated M16 inflated 9M17 ¹ Weighting between INCC for staff and IPCA for other expenses 25

26 ACCELERATED EXPANSION OF THE NETWORK Gross store openings (LTM) and number of stores (end of period) % of store openings of total store network % 29% 28% 30% % 25% % 16% 14% 14% 13% 14% 7% 8% 18% 16% 15% 6% 17% 18% 17% 17% 17% 17% 6% 6% 6% 18% 17% 7% 16% 15% 8% 16% 15% 9% 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Extrafarma Network A Network B Network C Gradual acceleration in store expansion with above-market opening rates 26

27 NUMBER OF STORES OVER THE PAST THREE YEARS Dec/ Dec/ Sep/ Acceleration in store rollouts Adensate existing areas Expand along the frontier of the core region Enter in new regions 2 Market share in core region¹ % 12.1% 14.2% 15.0% Sep/17 ¹AP, CE, MA, PA, PI and RN states 26

28 MANY MATURING STORES + ACCELERATED STORE OPENING = LARGE POTENTIAL FOR REVENUES AND SCALE Outlook for maturation as a result of current rate of expansion Estimated store maturing curve At the accelerated rate of store rollouts, we will have more than a 1,000 stores in 5 years and > 60% of mature stores % Maturing stores > 1,000 37% 75% 90% 100% 13% 9% 49% Expansion 63% 45% Sep/ (E) < 1 year 1 to 2 years 2 to 3 years > 3 year Maturing stores Mature stores 1st year 2nd year 3rd year 4th year Approximated values Large share of still maturing stores Significant and accelerating expansion of the drugstore network Short-term: curbs EBITDA margin Long-term: significant revenue growth with large impact on operational leverage and growing EBITDA margin 28

29 Ultragaz, Oxiteno, Ultracargo and Ultrapar

30 ULTRAGAZ 80 YEARS OF CONSTANT EVOLUTION Innovation and investment in technology increase productivity and the services portfolio Bottled Mature but highly dynamic market Constantly renewing company Use of digitization for future growth In the relationship with the end consumer greater customer satisfaction and loyalty In internal processes greater responsiveness and productivity Bulk ~ 6,000 resellers in 2017 Training of more than 500 resellers Through the combination of data (big data / analytics) to maximize opportunities, leverage businesses and support decision-making New uses of LPG: > 400 clients and an additional 7.5 kton in Ultrapronto Ultragaz takes care of everything 30

31 ULTRAGAZ CONSOLIDATED AMONG THE WORLD S LEADING LPG DISTRIBUTORS A pioneer in Brazil, occupying an outstanding position among peer companies In million Reais, except when indicated otherwise Focused on bulk Ultragaz Liquigás Amerigas Ferrelgas Suburban Gasco* Aygaz Country Volume (kton) 1,760 1,600 2,161 1, ,109 Revenue 5,366 3,589 8,068 4,935 3,651 1,288 7,788 EBITDA ,895 1, EBITDA margin (R$/ton) Capex na. 114 *Only Gasco GLP S.A. (Chile) and Inversiones GLP S.A (Colombia) subsidiaries Source: Liquigás, Amerigas, Suburban, Gasco, Aygaz and Ferrelgas Financial statements/10k reports Average exchange rate 2016: BRL/USD: 3.49; USD/TRY: 3.02; USD/CLP: (source: Bloomberg) Growth opportunities Uses for LPG still not permitted in Brazil M&A Delivery trucks Generators Swimming pool heaters Vehicles Sauna Car wash water pressurizer Water pumps 31

32 OXITENO RECOVERY IN THE ECONOMY DRIVES VOLUME IN BRAZIL Market leadership Sole producer of ethylene oxide in Brazil and oleo-chemicals in Latin America Deep knowledge of surfactants technology Scale comparable to the largest players in the world 3 rd largest ethoxylation company in the world Camaçari Unit one of the world s largest ethylene oxide production units Current capacity allows growth in Brazil without significant new investments Sales volume historically ~ 2x GDP Segments of operation (Index chart) Cosmetics Oil Detergents Hydraulic fluids Agrochemicals Coatings LTM Sep17 Oxiteno Specialties volume Brazil GDP 32

33 OXITENO 2018: FOCUS ON THE START UP OF OUR PLANT IN THE USA USA Investments The largest ethoxylates market in the world 7 times larger than the Brazilian market Access to ethylene oxide derived from natural gas, structurally more competitive than naphtha Construction of the plant in Texas, a state with about 30 refineries, with 30% of the total US refinery capacity and 40% of the country s petrochemical output A state with an excellent logistics infrastructure, Texas has 130 thousand kilometers of highway, 3 long-distance railways and 12 ports Oxiteno plant Annual production capacity: 120 kton Start up in operations: 1 st quarter of 2018 Class I rail operators Union Pacific (UP) BNSF Railway (BNSF) Kansas City Southern (KCS) Port of Houston 33

34 ULTRACARGO THE COMPANY S TRANSFORMATION OVER ITS 50 YEARS Created out of a specialized logistics requirement for handling hazardous products with a focus on chemicals... From its experience in chemicals, the company has evolved into a port logistics operator for ethanol... Increased fuel handling operations as demand for port logistics for these products advanced. For many years, the chemical industry reported growth of 3x GDP and intense international trade flows Focused on handling of chemicals until the construction of the Montes Claros terminal Inauguration of the terminal in Santos, the closest port to the country s main producing region Brazilian exports of ethanol rose 70% annually from 2000 to 2005 Initial investment at Itaqui targeted this market Initial opportunity in coastal shipping operations Liberation of fuel imports by distributors and traders ex-petrobras Inauguration of the Aratu (BA) terminal, expanding the logistics business into storage Construction of Suape terminal Construction of the Montes Claros terminal Startup in operations of the TIS Santos Intermodal Terminal Acquisition of the assets of União Terminais Sale of in-house logistics, solids warehouses and highway transportation operations Acquisition of the Itaqui terminal (MA) Liberation of fuel imports 34

35 ULTRACARGO STRENGTHENING OF PORT OPERATIONS Opportunities for expansion at existing terminals and for new geographical areas The largest liquid bulk storage company in Brazil Total capacity of 696 thousand m³ Santos Capacity: 219 thousand m³ Aratu Capacity: 218 thousand m³ Suape Capacity: 158 thousand m³ Positioning in strategic locations Products handled: chemicals, corrosives, lubricants, fuels and vegetable oils Products handled: chemicals, petrochemicals, fuels/biofuels, ethanol and vegetable oils Products handled: chemicals, petrochemicals, fuels/biofuels, ethanol and vegetable oils Area: thousand m² Area: 94.5 thousand m² Area: 78.1thousand m² Itaqui Suape Itaqui Paranaguá Rio de Janeiro Aratu Rio de Janeiro Capacity: 55 thousand m³ Products handled: chemicals, petrochemicals, fuels/biofuels, ethanol and vegetable oils Area: 52.9 thousand m² Capacity: 28 thousand m³ Products handled: vegetable oils, chemicals and corrosives Area: 26.9 thousand m² Capacity: 17 thousand m³ Products handled: caustic soda and lubricants Area: 10.9 thousand m² Santos Paranaguá Area of influence of ports where Ultracargo has operations Potential for ~30% increase in capacity over the next 3 years 35

36 FINANCIAL HIGHLIGHTS ULTRA CONSOLIDATED Revenue R$ billion EBITDA R$ billion LTM Sep/ LTM Sep/17 Net income R$ billion Dividends R$ million LTM Sep/ H17 36

37 OUTLOOK Investments in expansion to drive earnings and profitability growth Expansion of service stations, am/pm and Jet Oil networks Expansion of the logistics infrastructure Focus on differentiation through diversification and innovation in products and services Aspire leadership in surfactants in the Americas International expansion construction of the new alkoxylation plant in Texas (USA) Focus on differentiation initiatives, establishing new niche markets and sales channels Resuming activities in the Santos terminal Focus on modernization of safety, reliability and integrity systems Expansion to strengthen position as port operator Retail pharmacy management: roll out of the new store model for the network Faster stores opening pace 37

38 Q&A

39 Ultrapar Participações S.A. Investor Relations ri.ultra.com.br