In 2011, the Strategy Adopted by Oxiteno Led the Company to an 8% EBITDA Growth Over the Previous Year, Besides Concluding an Important Expansion Cycle in the Period

In 2011, the strategy adopted by Oxiteno led the company to an 8% EBITDA growth over the previous year, besides concluding an important expansion cycle in the period. Oxiteno is the only producer of ethylene oxide in Brazil and also the only company to produce fatty alcohols in Latin America. The company has grown in recent years at a rate higher than the growth of the Brazilian economy, due to the nature of the markets served by Oxiteno. Among these markets, cosmetics and detergents, pesticides, agribusiness, petroleum and paints and varnishes for the civil construction and automotive industries stand out. Considering the characteristics of the Brazilian economy and stage of development of the country, these markets have presented strong performance, growing quite above GDP growth, with very promising prospects. 48 49 Thanks to the internationalization process started in 2003, expand its production capacity, enabling an increase in sales Oxiteno has industrial plants and sales offices in Latin America, volume in coming years. The expanded ethylene oxide plant Europe and the United States. The company has industrial at the Camaçari unit provides significant improvement in its plants in Mexico and Venezuela, where it already enjoys competitiveness, due to higher selectivity of new catalysts in market leadership in specialty chemicals, and has sales offices the processing of raw materials. Like all Oxiteno’s processes in Argentina, Belgium and the United States. In 2011, Oxiteno and systems, sustainable practices were considered in the continued its internationalization, by strengthening its implementation of the new equipment, offering a significant commercial structure in Latin America through the opening reduction of CO2 emissions per ton produced. of an office in Colombia. The next step will be to install an office in China. The internationalization process allows the Oxiteno was also dedicated in 2011 to strengthen the establishment of commercial relationships, exchange of relationship with its distributors network, aiming at increasing technology and access to raw materials at low cost. results. Six authorized distributors engaged in supplying products to 4 thousand small- and medium-sized clients In August 2011, Oxiteno concluded the expansion of the were involved in the alignment of sales guidelines, goals and ethylene oxide unit in Camaçari plant (in the state of Bahia), philosophy. In order to maximize results, each distributor increasing its annual production capacity by 90 thousand committed to certain goals, which will be translated upon tons. With the project, Oxiteno completes an important accomplishment into a ranking to analyze the performance of investment cycle carried out during the last five years to the sales channel. 50 OXITENO OXITENO’S UNITS LOCATION MAP Brussels Oﬃces Industrial plants ANNUAL REPORT 2011 ULTRAPAR 51 OXITENO – POSITION IN THE PETROCHEMICAL CHAIN... Refinery 1st generation 2nd generation Petrobras – naphtha Crackers – ethylene Oxiteno – ethylene oxide and its derivatives ...BROAD COVERAGE OF MARKETS AND APPLICATIONS OF ETHYLENE OXIDE AND DERIVATIVES Cosmetics Detergents Crop protection Packaging Food Leather Hydraulic fluids Resins Textiles Coatings Oil Paper 52 OXITENO OXITENO – SALES VOLUME OXITENO – EBITDA (‘000 ton) (R$ million) 261 241 210 684 647 660 634 171 567 7% 8% 9% 156 23% 11% 77% 89% 92% 93% 91% Commodities Specialty chemicals 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 ANNUAL REPORT 2011 ULTRAPAR 53.

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