Ultrapar (UGPA3) Ultra Day 2024 summary

Strategic direction and business evolution

• Focus on operational excellence, safety, and customer proximity, with significant investments in digital channels, infrastructure, and automation to drive growth and efficiency.

• Disciplined capital allocation, value generation, and long-term results guide the holding's strategy, with Ultrapar acting as a strategic shareholder in mobility, energy, and logistics infrastructure.

• Portfolio review included divestments (Oxiteno, Extrafarma, ConectCar) and acquisitions (Opla, Stella, Neogás, Hidrovias do Brasil), resulting in a more resilient and complementary business mix.

• Expansion into new energy solutions, including bio-LPG, biomethane, and distributed generation, with recent acquisitions to strengthen the portfolio and complement core LPG offerings.

• Hidrovias do Brasil added as a fourth business line, leveraging operational expertise and long-term vision for value creation and resilience in waterway logistics.

Financial performance and capital allocation

• Achieved record net income in 2023, surpassing BRL 2.5 billion, and the highest ROIC in a decade, targeting returns above 20%.

• Leverage reduced to 1.5x–2x EBITDA, even after major acquisitions, and regained investment grade status from S&P.

• Net debt reduced from R$11.1 billion in 2020 to R$7.7 billion in June 2024, with improved credit ratings.

• Total shareholder return reached 15% p.a. since August 2021, outperforming the IBOV index.

• Capital allocation is guided by discipline, sector expertise, and flexibility, with a focus on optimizing capital costs and prudent leverage.

Business segment highlights

• Ultragaz: Maintains LPG market leadership, expanding digital channels, operational excellence, and new energy solutions (bioLPG, biomethane, electricity).

• Ultracargo: Strategic investments in logistics corridors, 15% capacity expansion by end-2025, and focus on operational excellence and sustainability.

• Ipiranga: Prioritizes logistics efficiency, supply chain competitiveness, and brand engagement, with a focus on premium products and ERP upgrades.

• Hidrovias do Brasil: Growth in logistics corridors, capacity expansion, and operational resilience, with a focus on climate impact mitigation.