Ultrapar Participações S.A.

Transcription

1 Ultrapar Participações S.A. Earnings conference call Comments on the company s performance and outlook

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. Earnings Before Interest, Taxes, Depreciation and Amortization, Adjusted 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 March 31, 2018 and in the financial spreadsheets, available from the Ultrapar website (ri.ultra.com.br). 2 ULTRAPAR > CC

3 Ultrapar highlights Economic and operational environment still challenging Brazilian GDP forecast 2018 Focus research Unemployment rates (IBGE) Performance of the operational indicators 2.69% 2.92% 2.75% 13.7% 13.6% 13.3% 13.0% 12.8% 12.6% 12.4% 12.2% 12.0% 11.8% Unemployment still persistent 12.2% 12.6% 13.1% Abrafarma (YoY) Bottled LPG¹ Bulk LPG¹ % imported volume vs total² 11% 10% 0% 21% 2Q17 9% 7% -4% 19% 3Q17 10% 21% 21% 19% 4Q17 8% 28% 12% 22% 6% -5% -10% 27% ¹ Variations refer to the price comparisons in the final position of the quarter in relation to the initial position ² includes only January and February Sources: ANP and Abrafarma Adjusted Net income -12% -26% Reversion of provision in related to the exclusion of ICMS from PIS and Cofins base Break up fee Liquigás Break up fee effect¹ Liquigás 73 Non-recurring effects ¹ Net of taxes 3 ULTRAPAR > CC

4 Ipiranga performance Volume 000 m³ Total Diesel Otto cycle (Gasoline, ethanol e NGV) -2% -3% -1% 5,554 5,461 2,718 2,626 2,753 2,723 2,753 2, % % 2,223 2,718 2,626 1,965 21% Import parity vs. % of imported volumes -5% -5% -15% -13% 19% 19% (ANP) 1% 1% -6% 22% Volumes imported by the market are still high¹ -3% 2% 27% 2% 2Q17 3Q17 4Q17 Diesel Otto cycle Others Gasoline Ethanol NGV ¹ Consider only January and February Diesel Gasoline Percentage of imported volumes Network expansion Adjusted 29% 30% Network expansion and strengthening -15% Lower sales volume 7,648 +5% 8, new service stations 258 new am/pm stores 172 new bakeries Tight operating environment Higher level of expenses, mainly with the startup of Iconic operations 116 new beer caves mar-17 mar-18 # service station Ask at the Ipiranga service station Strategy of differentiation and innovation in services and convenience in the network Penetration of am/pm stores 4 ULTRAPAR > CC

5 Oxiteno performance Volume 000 ton Total Specialties Commodities -8% -4% -26% Commodities: stoppages at Camaçari % 16% 80% 84% % % Brazil: lower volumes in the agrochemical and distribution segments International Markets: more challenging operational environment, in spite of higher sales in USA (premarketing) Specialties Commodities Brazil International Markets Exchange rate R$/US$ average +3% % Lower sales volumes 49-18% 51 Pre-operational expenditure USA Costs related to the scheduled stoppages 62 Weaker Real against the US Dollar (R$ 0.10/US$) Weaker Real against US Dollar Non-recurring (reversion of provision) 5 ULTRAPAR > CC

6 Ultragaz performance Volume 000 ton -1% +3% % % 281 Bottled Bulk (170) Working days ex-break up fee Liquigás Volume Bottled: flat performance, with 1% growth per working day Bulk: programmed volume reduction of an industrial customer, partially offset by growth in sales to the industrial segment and condominiums in Fewer working days Strategy of differentiation and innovation Continued management of costs and expenses with initiatives for reducing expenses Lower volume Payment of the contractual fine related to Liquigás acquisition in the amount of R$ 286 million 6 ULTRAPAR > CC

7 Ultracargo performance Effective storage monthly average 000 m³ +4% +87% % Non-recurring Santos incident Volume Increased fuels and ethanol handling in the ports of Itaqui and Santos Decreased fuels handling in Aratu Growth in average storage Partial resumption of Santos terminal 7 ULTRAPAR > CC

8 Extrafarma performance Number of stores Gross revenue +25% +14% % 19% 45% 27% 27% 54% % 46% mar-17 mar Up to 1 year 2 to 3 years Mature stores Abrafarma +6% Abrafarma +6% Non-recurring/New stores¹ ¹ Expenses with the transfer of the distribution center and indemnities in and new stores in Gross revenue 13% revenue growth in the retail segment Increased number of stores: 100 openings YoY 12 openings QoQ Higher promotional activity Smaller market growth Increased share of still maturing stores : 54% up to 3 years (45% in ) Strong comparison basis with (retail +36%) Smaller market growth 8 ULTRAPAR > CC

9 Priorities and outlook Strengthening and preparation of Ultra to capture new growth opportunities New alkoxylation plant in the USA: start-up in 2Q18 New lubricant company: Iconic finishes entry into operation Organic growth fronts Management of costs and expenses Discipline in capital allocation Expansion opportunities 9 ULTRAPAR > CC

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