Ultrapar Participações S.A. November 2018

Transcription

1 Ultrapar Participações S.A. November 2018

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 forward-looking 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. 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 financial information of Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma is reported without elimination of intercompany transactions. Therefore, the sum of such information may not correspond to the consolidated financial information of Ultrapar. In addition, the financial and operational information presented in this document is subject to rounding off and, consequently, the total amounts presented in the tables and charts may differ from the direct sum of the amounts that precede them. EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization, Adjusted EBITDA adjusted for the amortization of contractual assets with customers exclusive rights, and EBIT Earnings Before Interest and Taxes, are presented in accordance with CVM Instruction No. 527, issued by CVM on October 4, As from 2018, the IFRS 9 and 15 standards were adopted, amendments to the IFRS rules and interpretations issued by the IASB. In order to provide a comparative basis for the financial statements, the information for the first and fourth quarter of 2017 shown in this document incorporates these accounting changes, consequently differing from the values previously reported in the respective publications of results. Additional information can be found in note 2.y of the quarterly financial statements of September 30, 2018 and in the financial spreadsheets, available from the Ultrapar website (ri.ultra.com.br).

3 Ultrapar One of the largest fuel distributor in Brazil 8,018 service stations Largest convenience store network in Brazil Leader in specialty chemicals derived of ethylene oxide in Latin America 12 production facilities in 5 countries Largest LPG distributor in Brazil Network of 6 thousand independent resellers 11 million households attended 54 thousand costumers in the bulk segment Largest provider of storage for liquid bulk in Brazil 6 terminals located in the main Brazilian ports 784 thousand m³ of storage capacity Leadership position in North and Northeast regions 414 stores in 13 different states 2 distribution centers Ultrapar is the 5 th largest Brazilian group in terms of revenues¹ 17 thousand employees ¹ Source: Valor edition 3

4 Ultrapar Leadership position, with long-term competitive advantages Resilient businesses, leveraged on the Brazilian economic growth Strategy of differentiation and innovation Best Corporate Governance practices o True Corporation with reference shareholder o Compensation as a key driver for value creation Key shareholders¹ Ultra S.A. Participações 22% Parth do Brasil Participações LTDA 8% Standard Life Aberdeen PLC 8% BlackRock Inc. 5% Outros 57% ¹ As of 10/31/2018 4

5 Ultrapar Financial highlights Financial results R$ billion Net revenues EBITDA Net income CAGR 9% CAGR 4% CAGR 0% Payout¹ 61% LTM LTM LTM ¹ Weighted average payout ratio from 2012 to 1H18 Debt profile General information 9M18 Debt breakdown Amortization profile R$ million Net debt (R$ million) R$ 9,191 7% Net debt/ EBITDA LTM 2.94x Average cost of debt (% of CDI) Duration (years) 96.2% % 39% National currency Foreign currency Non-hedged Hedged 32% Cash and equivalents Up to 1 year to 2 years to 3 years to 4 years to 5 years Thereafter 5

6 Ultrapar and strategy of its businesses

7 Ipiranga Solid operation and geographical capillarity Continuous investments in the network and distribution infrastructure # of service stations CAPEX EBITDA Scale and operational excellence 6,086 CAGR 4% 8, CAGR 10% 1, ,330 CAGR 7% CAGR 9% 101 2,361 $ 77 logistics facilities* across Brazil ~ R$ 1 billion CAPEX for expansion and construction of storage terminals since million m³ handled per month > 4,000 daily deliveries Dec-11 Sep LTM *28 owned, 25 pooled storage terminals and 24 leased storage in third parties Diversification in products and services offered 2011 LTM EBITDA (R$ million) EBITDA margin (R$/m³) 807 thousand m³ capacity +9% CAGR ( ) Under construction/expansion: +30 thousand m³ A complete service station waiting for you am/pm largest convenience store network o o o 2 nd largest franchise network in Brazil¹ Top 20 largest franchisee networks based on sales² 2,468 stores o Penetration: 31% ¹ Source: Ranking ABF 2017 ² Source: Ranking Abras 2018 KM de Vantagens: 28 million members 905 bakeries / 528 beer caves New products launches (DT Clean and Octapro) Connected station: 864 stations with electronic panels and 1,083 with beacons Abastece Aí app: 2.5 million downloads The strongest brand in the fuel market³ Relationship with resellers and final costumers o o o Clube do Milhão Clube VIP Ipiranga s Convention Marketing campaigns o o Ask at Ipiranga s service station Marketing plan ³ Source: Valor Econômico, January 18, 2016 (CVA Solutions consultants) 7

8 Oxiteno Investments in innovation and expansion Leadership position Sole producer of ethylene oxide in Brazil and oleo-chemicals in Latin America Deep knowledge of surfactants technology 20% Sales mix Scale comparable to the largest players in the world o 3rd largest ethoxylation company in the world 9M18 o Camaçari unit: one of the world s largest ethylene oxide production units 80% Specialties Current capacity allows growth in Brazil without significant new investments Glycols Segments of operations USA investments Cosmetics Oil Detergents The largest ethoxylates market in the world Access to ethylene oxide derived from natural gas, more competitive than naphtha Annual capacity: 120 kton Hydraulic fluids Agrochemicals Coatings Texas: 30% of the total US refinery capacity and 40% of the petrochemical output A state with an excellent logistics infrastructure Beginning of operations: Sep

9 Ultragaz 80 years of constant evolution Innovation and investment in technology increase productivity and the services portfolio Mature and highly dynamic market Constantly renewing company Growth opportunities Uses for LPG still not permitted in Brazil Use of digitalization for future growth o In the relationship with the end consumer: greater customer satisfaction and loyalty Delivery trucks Generators Water pumps Sauna o In internal processes: greater responsiveness and productivity o Through the combination of data to maximize opportunities Swimming pool heaters Vehicles Car wash water pressurizer Bottled Expanding scale, geographical coverage and capillarity Volume (tons) ~ 6,000 resellers in 2017 Training of more than 500 resellers 1,242 CAGR 2% 1, Bulk ,196 New uses of LPG: > 400 clients and additional 7.5 kton in LTM Bottled Bulk Filling plants Satellite plants, affiliates and similar Geographical reach of Ultragaz network 9

10 Ultracargo Strengthening of port operations Competitive advantages along with positioning in strategic locations The largest provider of storage for liquid bulk in Brazil Operational excellence: flexibility, agility and quality Potential for ~30% increase in capacity over the next 3 years Storage capacity of 784 thousand m³ Santos Aratu Handling of 5.9 million ton of liquid bulk in LTM o 47% of fuels o 36% of chemicals/corrosives Capacity: 307 thousand m³ Products handled: chemicals, corrosives, fuels, lubricants and vegetable oils Capacity: 218 thousand m³ Products handled: chemicals, petrochemicals, fuels and vegetable oils Itaqui Itaqui Capacity: 55 thousand m³ Suape Capacity: 158 thousand m³ Suape Aratu Products handled: chemicals, petrochemicals, fuels and vegetable oils Products handled: chemicals, petrochemicals, fuels and vegetable oils Area of influence of ports where Ultracargo has operations Rio de Janeiro Santos Paranaguá Paranaguá Capacity: 28 thousand m³ Products handled: vegetable oils and chemicals Rio de Janeiro Capacity: 17 thousand m³ Products handled: corrosives and lubricants 10

11 Extrafarma Accelerated expansion and retail pharmacy management Extrafarma in Brazil Leader: Pará, Ceará and Maranhão Vice leader: Pernambuco Expansion: São Paulo New regions: Sergipe, Bahia, Paraíba and Tocantins 2 distribution centers: Pará and Ceará 414 drugstores () 77 openings LTM Presence in 13 states Network expansion Q16 3Q16 4Q16 1Q17 2Q17 4Q17 1Q18 2Q18 3Q16 4Q16 1Q17 2Q17 4Q17 1Q18 2Q18 Store opening LTM Number of stores Large share of maturing stores Significant and accelerated expansion of the drugstore network Initiatives on productivity and quality Short-term: curbs EBITDA margin Long-term: significant revenue growth with large impact on operational leverage and growing EBITDA margin 11

12 Financial performance

13 Ipiranga performance Gradual recovery of volumes 000 m³ Total Diesel Otto cycle +2% 6,059 6,200 2,814 2,780 3,156 +5% -1% 3,301 2,814 2, % 891 Diesel: higher sales in the service stations segment Otto cycle: sharp growth of ethanol led by favorable parity in relation to gasoline 3,156 3,301-16% 2,159 1,811 Diesel Otto cycle Others Gasoline Ethanol NGV Gains in Plural s market share both in Otto cycle and Diesel in relation to Network expansion Adjusted EBITDA 29% 31% +3% 7,814 8,018 Network expansion and strengthening 204 new services stations YoY -47% QoQ +24% R$ million # service station 163 new am/pm stores 101 new bakeries 79 new beer caves Strong comparison base import gains and more favorable fuel costs in Inventory loss due to the truckers strike 2Q18 Gradual recovery in margins Higher sales volume Penetration of am/pm stores 13

14 Oxiteno performance Volume 000 ton Total Specialties Commodities 211-2% -7% +18% Commodities: greater demand for products 205 mainly in Brazil 18% 21% 82% 79% Specialties Commodities Brazil % -8% International Markets Specialties: Brazil: lower volumes in the agrochemical and distribution segments International Markets: lower exports to Argentina, partially offset by higher volumes in the USA Exchange rate EBITDA R$/US$ average +25% 3.96 R$ million Real devaluated against US Dollar R$ 0,79/US$ % Higher unit margins in US Dollars Lower sales volume 74 Impairment at Oxiteno Andina (R$ 7 million) Weaker Real against US Dollar EBITDA Non-recurring¹ EBITDA US$/ton ¹ Problems in the restarting of the Oleoquímica plant and inventory loss of PKO in the 14

15 Ultragaz performance Volume EBITDA 000 ton R$ million -2% % 141 0% % Working days Bottled Bulk Volume Bottled: volume reduction lower than in LPG market Bulk: fewer working days EBITDA Continued initiatives for reducing costs and expenses Lower sales volume 15

16 Ultracargo performance Effective storage monthly average EBITDA 000 m³ R$ million +5% +10% Volume Growth in ethanol handling EBITDA Growth in average storage Decrease in fuel handling Increased productivity at the terminals with greater share of ethanol in the sales mix Higher average prices 16

17 Extrafarma performance Number of stores Gross revenue R$ million EBITDA R$ million % 23% +13% 51% % 30% 53% +3% % 47% (24) Sep-17 Up to 1 year 2 to 3 years Mature stores Sep-18 Abrafarma +8% Nonrecurring¹ ex-nonrecurring Gross Revenue 9% revenue growth in the retail segment with increased number of stores (Abrafarma +6%): 77 openings YoY 21 openings QoQ Annual readjustment in medicine prices: +2.4% Lower market growth EBITDA Increased share of maturing stores: : 53% up to 3 years (51% in ) ¹ Non-recurring: Investments write-off due to higher churn ratio Stabilization of the new retail system 17 Non-recurring events stabilization of the retail system implemented in June/18

18 Ultrapar performance Adjusted EBITDA Net income R$ million 1,221-30% 850 R$ million % 323 Leverage¹ and net debt Investments² R$ million R$ million 2.9x 1.7x 9,191 6,767 +1% 1,511 1,533 9M17 9M18 ¹ Net debt/ebitda LTM ² Net of divestments and repayments 18

19 Priorities and outlook

20 Priorities and outlook Growth and greater value generation for the shareholders Ipiranga o Strengthening of the relationship with resellers o Recovery in volumes and margins o Differentiation and innovation o Operational excellence o Higher selectivity and discipline in capital allocation Oxiteno o Ramp-up of the new plant in the USA o Innovation / R&D for new products development Ultragaz o New uses for LPG o Ongoing differentiation process Ultracargo o Capacity expansion o Scale and operational flexibility Extrafarma o Higher selectivity and discipline in capital allocation o Operational excellence / customer experience o Expansion opportunity on e-commerce 20

21 Priorities and outlook Growth and greater value generation for the shareholders Reduce financial leverage Succession process Renewed focus on the development of talents and leadership Strengthening of the strategic planning process ROIC improvement 21

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