UNIPAR ANNOUNCES 2Q09 RESULTS

Transcription

1 UNIPAR ANNOUNCES 2Q09 RESULTS São Paulo, August 14, 2009 UNIPAR União de Indústrias Petroquímicas S.A. (BOVESPA: UNIP3, UNIP5 and UNIP6), one of the leading Brazilian petrochemical groups, with consolidated gross revenues of R$ 6.6 billion in 2008, announces today its earnings release for the second quarter and first half of 2009 (2Q09 and 1H09, respectively). Unless otherwise stated, all financial and operating data discussed in this announcement are presented pursuant to the Brazilian Corporate Law and all comparisons are with the first quarter of 2009 (1Q09) and the first half of 2008 (1H08). Highlights UNIPAR posted 2Q09 net income of R$ 96 million, more than reversing the substantial R$ 75.5 million net loss recorded in the previous quarter. Net income totaled R$ 20.5 million in the first half as a whole, a period when the domestic economy was severely harmed by the global financial crisis that erupted at the end of 2008, with a big decline in petrochemical activity and a reduction in the price of the leading petrochemical commodities worldwide. It is worth noting that the 1H09 year on year comparison was jeopardized by the constitution of Quattor Participações and the effects of its consolidation on the Company s accounts as of June The first half result was well below the R$ 38.1 million recorded in the 1H08, reflecting the compression of petrochemical margins, lower demand and the accounting effect mentioned above. UNIPAR s consolidated EBITDA totaled R$ 262 million in the 1H09, 30% up year on year. It is worth remembering that in 2009 the local petrochemical industry was characterized by two highly distinct periods: (i) a disappointing first quarter in terms of operating and economic performance, reflecting the slump in industrial activity and reduced demand for petrochemical products (sale of inventories; (ii) a much more encouraging second quarter, with domestic demand showing signs of recovery and margins returning to healthy pre crisis levels; The second quarter upturn in demand and margins was decisive in improving consolidated EBITDA, which totaled R$ 185 million in the quarter, well above the R$ 77 million recorded in the 1Q09, reinforcing expectations of an economic rally and an improved petrochemical sector performance. It is also worth highlighting Carbocloro s excellent operating performance in the first half, when it recorded an EBITDA margin of 39% and net income of R$ 97.1 million. In addition, the incorporation of the indirect subsidiary Quattor Químicos Básicos S.A. by Polietilenos União S.A., both controlled by Quattor Participações S.A., was concluded in 2Q09, marking one more step in the process of consolidation and synergy gains since Quattor s constitution. IR CONTACTS José Octávio Vianello de Mello President and IR Officer unipar@unipar.ind.br Leonardo Pinho Cavalcanti IR Manager lpcavalcanti@unipar.ind.br Phone: + 55 (11)

2 Petrochemical Scenario INTERNATIONAL SCENARIO» 2Q09 vs. 1Q09 Throughout the second quarter of 2009, the international petrochemical scenario was still affected by the severe financial crisis that erupted at the end of 2008, with demand for products remaining modest in the world s leading economies, despite signs of a slight recovery over the previous three months. The exception was Asia, especially China, where demand remained buoyant throughout the quarter, chiefly due to the robustness of the local market and the rebuilding of inventories that began in the period, when oil prices and volatility and the price of the dollar encouraged the anticipation of purchases and the adjustment of stocks. In general, petrochemical production levels remained modest, with crackers and resin producers seeking to avoid a build up of inventories and adjusting output to bring supply in line with demand (feedstock reductions and stoppages). However, resin exports to China were recurring, acting as an escape valve for shipments to the USA and Europe. Even in this scenario, the global petrochemical industry still found room for price adjustments and corrections, pointing to a recovery in demand and margins in comparison with the 1Q09, when the market appeared to have reached rock bottom. It is also worth noting that margins throughout the entire petrochemical chain remained under pressure from the upturn in international oil prices, in turn fueled by the improved performance of the world s financial markets. As a result of all this, Brent crude prices averaged US$ 59.2/bbl in 2Q09, 32% up on the US$ 44.8/bbl recorded in the 1Q09. Naphtha prices (CIF ARA, European market) averaged US$ 490/t, 28% more than in the 1Q09, following in the wake of international oil prices. European petrochemical activity kept capacity use at modest levels throughout. The naphtha/brent price ratio, which had climbed from 6.5 at the end of 2008 to 8.6 in the 1Q09, fell back slightly to 8.3 in the 2Q09, suggesting that local crackers were finding it difficult to pass on cost hikes and re establish their margins. U.S. natural gas prices (Mont Belvieu) did not follow naphtha s upward trajectory, averaging US$ 3.5/MM BTU in the 2Q09, 27% down quarter over quarter. According to the specialist consulting firm, CMAI, gas prices were reflecting the balance between supply and demand more accurately, with supply outpacing demand and raising U.S. inventories to historically high levels. As for the natural gas derivatives used as petrochemical inputs, average ethane and propane prices showed signs of recovery, averaging US$ 320/t and US$ 382/t, respectively, 21% and 8% above their 1Q09 levels. The ethane/natural gas ratio stood at 12.3, substantially higher than the 7.4 recorded in the 1Q09. In addition to indicating a slight recovery in U.S. petrochemical activity, this ratio can be explained by the enhanced 2

3 competitiveness of gas based petrochemicals to the detriment of the heavier liquid feedstocks (naphtha), which increased demand for ethane/propane mixes by local crackers. Average basic petrochemical prices recorded an overall quarter on quarter upturn, chiefly reflecting the higher cost of the main raw materials and the efforts of the U.S. crackers to maintain their margins. In Europe, the upturn in naphtha prices pressured local producers into pushing up ethylene and propylene prices, which averaged US$ 938/t and US$ 719/t, respectively, around 20% down on the 1Q09. As a result, European cracker margins remained highly compressed, averaging US$ 149/t in 2Q09, but still higher than the previous quarter s average of US$ 132 /t. In the U.S., the price recovery was more apparent in the propylene segment, primarily due to restricted supply (reduced output via refinery streams, increased use of light feedstocks by local crackers, etc.), which raised average 2Q09 prices to US$ 739/t, 27% up on the quarter before. In the case of ethylene, the modest performance of the polyethylene sector mitigated against a recovery and average prices remained similar to those of the 1Q09 (US$695/t). As a result, U.S. (ethane/propane based) cracker margins averaged US$ 265/t in the 2Q09, 14% down on the previous three months. It is worth noting the greater competitiveness of the U.S. petrochemical industry, more flexible in terms of raw materials (natural gas x naphtha), in comparison with its European counterpart, more contaminated by soaring international oil and naphtha prices. After reaching historic lows in the opening months of the year, benzene prices increased by a hefty 62% over the 1Q09, averaging US$ 596/t. The main benzene driver in the U.S. is the fuel segment, which proved highly resilient and staged a major recovery towards the end of the second quarter. As for thermoplastics, in both the U.S. and Europe there was a clear trend of optimizing sales through exports to China, where demand for resins remained heated, thanks to the resilience of the local market and the buildup of inventories. Exports offset the limited domestic demand and helped sustain margins in a scenario of unfavorable raw material prices. In the polyethylene segment, taking low density polyethylene (LDPE) as a reference, European prices averaged US$ 1,209/t in the 2Q09, 15% up on the previous three months, while the integrated producers ethylene/ldpe margin stood at US$ 421/t, a 3% improvement over the 1Q09. U.S. LDPE prices also recovered in the 2Q09, moving up by 5% over the previous quarter to US$ 1,499/t, and the integrated producers ethylene/ldpe margin widened by 3% to US$ 1,069/t. Polypropylene (PP) prices and margins behaved very similarly to those of LDPE, recovering throughout the second quarter in both Europe, where they averaged US$ 1.076/t, 9% up on the 1Q09, and the U.S., where they averaged US$ 1,290/t, up by 14% in the same period. Nevertheless, the upturn in propylene prices hampered a recovery of propylene/pp margins, which fell 8% over the 1Q09 in Europe to an average US$ 357/t, In the U.S. however, they at least remained steady at US$ 3

4 551/t, very similar to their pre crisis average of US$ 555/t.» 1H09 vs. 1H08 Despite the 2Q09 price recovery, average Brent crude prices in the 1H09 (US$ 52/bbl) were still lower than in the 1H08 (US$110/bbl), when prices were still unaffected by the international financial crisis which erupted at the end of last year. Naphtha prices followed a similar trajectory, averaging US$ 437/t in the 1H09, 52% down on the US$918/t recorded in the same period the year before. As a result, the naphtha/brent price ratio remained virtually flat at 8.4. U.S. natural gas prices (Mont Belvieu) averaged US$ 4.14/MM BTU in the 1H09, 56% down year on year, reflecting excess supply (high U.S. inventories) and reduced demand in the months following the global financial meltdown, while prices of the gas based petrochemical raw materials, ethane (US$ 293/t) and propane (US$ 368/t), fell by 62% and 56%, respectively. The ethane/natural gas price ratio fell from 10.9 in the 1H08 to 9.5 in the 1Q09. Basic petrochemicals recorded a downturn in the U.S. and Europe. U.S. ethylene prices (US$ 700/t) fell by 50% year on year, while propylene dropped by 54% (to US$ 660/t) and benzene by 58% (to US$ 481/t). Given that this decline was steeper than the ethane and propane price slide, U.S. cracker margins narrowed by 23% over the 1H08 to US$ 287/t. In Europe, where the effects of the crisis were more intense, average ethylene (US$ 857/t), propylene (US$ 660/t) and benzene (US$ 464/t) prices fell by 46%, 54% and 60%, respectively, reducing local (naphtha based) cracker margins by 57%, from US$ 327/t in the 1H08 to US$ 141/t in the 1H09. In the thermoplastics segment, contract prices fell significantly in both the U.S. and Europe, squeezing the margins of the main products, which remained below their 1H08 levels. In the polyethylene segment, taking low density polyethylene (LDPE) as a reference, European prices averaged US$ 1,131/t, almost half their 1H08 average of US$ 2.050/t, while U.S. prices fell by a less drastic 26%, from US$ 2,014/t in the 1H08 to US$ 1,466. The 1H09 integrated ethylene LDPE margin averaged US$ 274/t in Europe, 42% down on the US$ 473/t registered the year before, while the U.S. margin widened by 23%, from US$ 621/t to US$ 766/t, underlining the greater competitiveness of the U.S. industry, which is more exposed to natural gas prices, which were strongly impacted by the eruption of the global financial crisis at the end of Polypropylene (PP) prices and margins behaved very similarly to those of LDPE: year on year prices fell in both the U.S. ( 40% to US$ 1,213/t) and Europe ( 46% to US$ 1,032/t), while margins narrowed in Europe and remained stable in the U.S. The PP spread over polymer grade propylene fell by 22% to US$ 372/t in Europe and averaged US$ 553/t in the U.S., very close to the 1H08 level of US$ 568/t. 4

5 Brent Oil and Naphtha Europe Naphtha/Brent Ratio Brent (US$/bbl) Naphtha Europe (US$/t) Natural Gas and Ethane US Gulf Coast Ethane/ Natural Gas Ratio US Gulf NG (US$/MM BTU) Ethane (US$c /gal) Ethylene Prices US$ / t 1,623 1,850 1,443 Propylene Prices US$ / t 1,727 1,540 1,228 1,458 1, ,449 1, USA Europe Benzene Prices US$ / t 1,314 1,199 1,230 1, USA Europe USA Europe LDPE Prices US$ / t 2,318 2,087 2,285 2,077 1,573 1,433 1,499 1,248 1,209 1,053 USA Europe LDPE Integrated Margin US$ / t 1,233 1, , ,036 1, PP Prices US$ / t 2,109 1,905 2,337 1,979 1,367 1,251 1, ,290 1,076 USA Europe USA Europe PP Margin US$ / t USA Europe 5

6 DOMESTIC SCENARIO» 2Q09 vs. 1Q09 In general, the domestic petrochemical market followed the international tendency as the leading players sought to manage and adjust production in line with demand conditions. Resin exports remained the main revenue driver, helping optimize production levels and maximize sales. After two consecutive months of economic decline and inventory adjustments by the industry (4Q08 and 1Q09), the economy began to improve and there were signs of an imminent rally in the second half. The petrochemical production chain also showed indications of a revival throughout the 2Q09, with domestic demand for resins, especially polypropylene, picking up steam, chiefly thanks to the anti crisis packages introduced by the federal government, especially the reduction in the IPI tax (federal VAT) on vehicles and white goods, which proved fundamental for the improved performance of these sectors in the quarter. The average price (dollar pegged) of the main thermoplastic resins followed the international trajectory, moving up throughout the second quarter. However, it is worth noting that the quarter over quarter comparison of local prices (in Reais) was distorted by the strong appreciation of the U.S. currency in the 2Q09. As a result, local polyethylene (LDPE) prices averaged R$ 3,794/t, 4% down on the 1Q09, according to the specialized consulting firm ICIS Lor. Average polypropylene prices behaved similarly to polyethylene prices, dropping by 4% quarter over quarter, to R$ 3,914/t, also according to ICIS Lor.» 1H09 vs. 1H08 The market deterioration and the decline in the domestic price of the leading thermoplastics (PE and PP) throughout the 1H09 becomes even more clear if we compare the 1H09 with the 1H08, when the effects of the financial crisis were not yet apparent. According to ICIS Lor, local average prices (in Reais) fell by 10%, both for LDPE and PP. 6

7 Prices Brazil In R$/t, for cash payments, ex ICMS (Source: ICIS Lor) LDPE 4,311 4,758 4,714 3,974 3,794 LLDPE 4,289 4,717 4,642 3,879 3,713 HDPE 4,239 4,646 4,559 3,877 3,693 PP 4,498 4,907 4,851 4,097 3,914 Consolidated Results As of June 2008, UNIPAR s results include the consolidation of 100% of the companies included in the financial statements of Quattor Participações, deducting minority interests in a specific line. UNIPAR s remaining direct interests (Carbocloro, Unipar Comercial and Polibutenos) continue to be consolidated in proportion to its stake in each business. Accordingly, year on year comparisons were jeopardized. It is also worth noting that, due to the incorporation of Quattor Químicos Básicos S.A. (formerly PQU) by Polietilenos União S.A. (currently Quattor Química S.A.), the former s results for May and June 2009 were reflected in the latter s figures through equity income. Although this accounting criterion did not affect UNIPAR s net consolidated result, it did distort and jeopardize the analysis of the company s performance in 2009.» 1H09 vs. 1H08 Net Revenues from Sales and Services: Net revenues totaled R$ 2,092.9 million in the 1H09, 10% up year on year. The above mentioned consolidation of Quattor Participações figures contributed substantially to this increase. 7

8 Cost of Goods Sold and Services Rendered: COGS stood at R$ 1,836.2 million in the 1H09, 12% up on the 1H08, due to the same factors that fueled the revenue increase. Gross Profit: Gross profit totaled R$ million, 3% down year on year, while the gross margin remained flat at 12% of net revenues. 1,229 Consolidated Net Revenues (R$ MM) 1,570 1,117 1,080 1,013 Net Operating Expenses: Net operating expenses (excluding financial revenues and expenses) totaled R$ 255 million, versus R$ 122 million in the 1H08, chiefly due to the consolidation of 100% of Quattor Participações as of June/08. EBITDA [1] [2] : First half EBITDA totaled R$ 262 million, 30% up on the R$ 201 million recorded in the 1H08, and accompanied by an EBITDA margin of 13% of net revenue Gross Profit (R$ MM) Net Financial Result: Consolidated EBITDA (R$ MM) The net financial result was positive by R$ 57.1 million, a substantial improvement over the R$ 59 million expense reported in 1H08, chiefly due to the positive effect of the exchange rate on the Company s consolidated foreign currency debt, especially in its indirect subsidiaries, Riopol and Quattor Petroquímica Consolidated Net Income: UNIPAR posted a 1H09 net income of R$ 20.5 million, versus R$ 38.1 million in the same period in 2008.» 2Q09 vs. 1Q09 Net Income (R$ MM) 96 The price and margin recovery along the entire petrochemical chain, an indication that the productive sector was beginning to pick up, played an essential role in UNIPAR s second quarter net income of R$ 96 million, partially offsetting the R$ 75.5 million net loss recorded in the 1Q09, when the company s performance was affected by compressed margins and dwindling demand. (18) (50) (76) (140) [1] EBITDA = Operating Income + Financial Expenses Financial Revenues + Depreciation and Amortization + Goodwill Amortization Statutory Interests. [2] Sales volume, prices/unit margins and EBITDA were not revised by the independent auditors. 8

9 The resumption of demand and the improved operating margins in the 2Q09 were equally decisive in pushing up consolidated EBITDA to R$ 185 million, substantially higher than the R$ 77 million recorded in the previous three months, reinforcing expectations of an economic recovery and a healthier petrochemical performance. It is worth noting that, in addition to the improved sales and operating performance, 2Q09 results benefited from the positive impact of the exchange rate on the Company s consolidated foreign currency debt, especially in its indirect subsidiaries, Riopol and Quattor Petroquímica. Operating Performance» 1H09 vs. 1H08 Net Revenues: First half net revenues totaled R$ 400 million, 28% up on the same period in 2008, chiefly due to increased price of soda, Carbocloro s main product. The upturn in average prices reflected he appreciation of the U.S. dollar against the Real as of the 4Q08 and the price of soda on the international market, which is the reference for domestic prices. It is worth remembering that the company has expanded its chloralkali production capacity, raising soda and chlorine capacity by 40%, to 400,000t p.a. and 355,000t p.a., respectively. The new capacity came on stream in August/08. Gross Margin: Gross profit totaled R$ 139 million, 28% up on the 1H08, reflecting the increase in net revenues, while the gross margin remained flat at 35%. EBITDA: The revenue and gross margin gains were reflected in EBITDA, which climbed by 46% over the 1H08 to R$ million, accompanied by an EBITDA margin of 39%, versus 34% in the first half of Net Income: Carbocloro posted 1H09 net income of R$ 97.1 million, a substantial 45% up on the R$ 66.0 million recorded in the 1H08, thanks to the big improvement in the operating result.» 2Q09 vs. 1Q09 Gross profit fell by 40% to 51.8 million in the 2Q09, reflecting the first quarter upturn in international soda prices. Net income fell by 18%, from R$ 53.5 million in the 1Q09 to R$ 43.6 million. It is worth noting the positive effect of the exchange rate variation on foreign currency debt, which partially offset the period reduction in the gross margin, from 39% to 29%. 9

10 » 1H09 vs. 1H08 Net Revenues: First half net revenues came to R$ million, 18% down year on year, reflecting the decline in demand and the 11% reduction in sales volume. Gross Margin: Gross profit totaled R$ 18.1 million, 7% up on the 1H08, chiefly due to the period margin increase from 12% to 16%. EBITDA: Thanks to the gross margin recovery, EBITDA closed the 1H09 at R$ 7.9 million, 15% up year on year. Net Income: The company posted 1H09 net income of R$ 3.4 million, 7% up on the 1H08.» 2Q09 vs. 1Q09 Second quarter sales volume increased by 29% over the previous three months, reflecting the recovery in demand and of the production sector in general. The improved sales performance and the upturn in the unit gross margin led to net income R$ 2.4 million in the 2Q09, versus R$ 1.0 million in the 1Q09.» 1H09 vs. 1H08 Net Revenues: Net revenues in the 1H09 came to R$ 26.9 million, 14% lower than the R$ 31.4 million recorded in the 1H08, chiefly due to the 9% decrease in the average sales price and the 11% decline in sales volume. The sales volume slide was chiefly due to exports, which dropped by 27%, since priority was given to the domestic market. Domestic sales fell by 4%. Gross Margin: Gross profit stood at R$ 10.5 million, 37% up on the same period the year before. The reduction in sales volume was offset by the decrease in the naphtha pegged price of isobutene, the company s main input, leading to a substantial gross margin increase from 24% in the 1H08 to 39% in the 1H09. EBITDA: Reflecting the gross margin recovery, EBITDA climbed 46% year on year to R$ 9.2 million. Net Income: Polibutenos posted 1H09 net income of R$ 6.4 million, a hefty 76% up year on year thanks to the gross margin recovery.» 2Q09 vs. 1Q09 The recovery in sales volume (20% up on the 1Q09) offset the narrowing of the unit gross margin from 42% to 36%, resulting in a 2Q09 gross profit of R$ 5.2 million, virtually in line with the previous quarter. The same applies to the company s net income, which totaled R$ 3.2 million in the 2Q09, very similar to the 1Q09. 10

11 Given that Quattor was constituted in June 2008, the comments below deal with the quarter over quarter comparison only.» 2Q09 vs. 1Q09 Net Revenues: Consolidated net revenues totaled R$ 1,164 million, 19% up on the R$ 981 million recorded in the previous quarter, mainly reflecting the recovery in sales volume and average sales prices in the 2Q09. Gross Margin: Thanks to the recovery in sales prices and the increase in total sales volume, Quattor s consolidated gross profit increased from R$ 15 million in the 1Q09 to R$ 167 million. It is worth noting that first quarter margins were impacted by the sale of inventories built up and stored before the eruption of the crisis, when petrochemical raw material costs were still high. EBITDA: As a result of the above, consolidated EBITDA totaled R$ 155 million in the 2Q09, versus R$ 37 million in the previous quarter, while the EBITDA margin stood at 13%, returning to healthier levels and reflecting the company s operational recovery. Net Income: Net income totaled R$ 160 million in the 2Q09, versus a net loss of R$ 118 million in the previous quarter. In addition to the above mentioned improved sales performance, the company s result benefited from the impact of the exchange rate effect on foreign currency debt (Riopol and Quattor Petroquímica). Consolidated Track Record UNIPAR H09 Gross Margin (%) EBITDA Margin (%) About UNIPAR Founded 40 years ago, UNIPAR is now one of Brazil s leading petrochemical groups, focusing on the production of basic petrochemicals, intermediates and resins through its subsidiaries. UNIPAR s interests are as follows: 11

12 Directly Controlled Companies 50% 60% 33.3% 100% Participações Indirectly Controlled Companies Divisão Química 94.1% 66.0% 99.3% Química 5.89% 9.02% Petroquímica The group s expansion program, which is in its final phase, involves total investments of R$ 2.7 billion. Following the constitution of Quattor, UNIPAR now owns assets with a global production scale and controls the second largest petrochemical firm in South America, consolidating its position as a major player in Mercosur and increasing the Southeast s share of regional petrochemical supply through increased integration between first and second generation plants. 12

13 The production capacities of companies controlled/consolidated by UNIPAR as of June 30, 2009, are shown below: Company Products / Services Capacity DIRECTLY CONTROLLED COMPANIES Distribution of Unipar Comercial Chemical & Petrochemical Products Chlorine 355 thousand t/a Caustic Soda 400 thousand t/a Carbocloro EDC 140 thousand t/a HCl 530 thousand t/a Hypochlorite 400 thousand t/a Polibutenos Polyisobutenes 17 thousand t/a INDIRECTLY CONTROLLED COMPANIES (QUATTOR S ASSETS) Cumene 310 thousand t/a Quattor Químicos Intermediários Nonene/Propylene Tetramer 27 thousand t/a Isoparaffins 26 thousand t/a Polietilenos União LDPE/EVA 270 thousand t/a Ethylene 500 thousand t/a Propylene 250 thousand t/a Quattor Químicos Básicos Benzene 200 thousand t/a Solvents 180 thousand t/a Gasoline A 170 thousand t/a Butadiene 80 thousand t/a Rio Polímeros LLDPE / HDPE 520 thousand t/a Propylene 75 thousand t/a Quattor Petroquímica Polypropylene 785 thousand t/a 13

14 Controlled Companies Managerial Information Subsidiaries Managerial Information (in R$ '000) 1H09 1H08 Var % Gross Revenue 158, , % Net Revenue 116, , % Gross Profit 18,136 16, % Unipar Comercial Operating Profit 4,777 2, % Net Profit 3,383 3, % EBITDA 7,850 6, % Plant, Property and Equipment 16,488 16, % Total Liabilities ( ) Current Assets (6,877) 18, % Carbocloro Polibutenos Gross Revenue 518, , % Net Revenue 399, , % Gross Profit 138, , % Operating Profit 130, , % Net Profit 97,091 66, % EBITDA 156, , % Plant, Property and Equipment 501, , % Total Liabilities ( ) Current Assets 197, , % Gross Revenue 34,151 39, % Net Revenue 26,897 31, % Gross Profit 10,536 7, % Operating Profit 9,525 5, % Net Profit 6,373 3, % EBITDA 9,247 6, % Plant, Property and Equipment 45,049 4,220 >200% Total Liabilities ( ) Current Assets 30,276 8,920 >200% Gross Revenue 3,149,391 Net Revenue 2,145,150 Gross Profit 182,203 Quattor Consolidated* Operating Profit 71,912 Net Profit 42,554 EBITDA 191,941 Plant, Property and Equipment 6,199,375 Total Liabilities ( ) Current Assets 6,389,347 * 1H08: Consolidation of Quattor as of June/08. This release contains forward looking statements relating to the prospects of the business, estimates for operating and financial results, and those related to growth prospects of UNIPAR. These are merely projections and, as such, are based exclusively on the expectations of UNIPAR s management concerning the future of the business. Such forward looking statements depend, substantially, on changes in market conditions, government regulations, competitive pressures, the performance of the Brazilian and international economies and the industry, among other factors and risks disclosed in UNIPAR S disclosure documents and are, therefore, subject to change without prior notice. 14