ANNUAL REPORT 2013 ULTRAPAR ANNUAL 2 ULTRAPAR 4 MESSAGE FROM THE MANAGEMENT 6 MANAGEMENT FUNDAMENTALS 8 Corporate Governance 10 Management Model and Strategy 14 Risk Management 16 Innovation 18 Relationship with Stakeholders 22 Social and Environmental Philosophy and Sustainability 28 EXTRAFARMA 32 IPIRANGA 38 OXITENO 44 ULTRACARGO 48 ULTRAGAZ 54 RESULTS AND OUTLOOK 56 Analysis of Financial Performance in 2013 61 Capital Markets 62 Investments 64 Outlook ANNUAL REPORT ANNUAL REPORT 2013 ULTRAPAR ANNUAL 2 ULTRAPAR 4 MESSAGE FROM THE MANAGEMENT 6 MANAGEMENT FUNDAMENTALS 8 Corporate Governance 10 Management Model and Strategy 14 Risk Management 16 Innovation 18 Relationship with Stakeholders 22 Social and Environmental Philosophy and Sustainability 28 EXTRAFARMA 32 IPIRANGA 38 OXITENO 44 ULTRACARGO 48 ULTRAGAZ 54 RESULTS AND OUTLOOK 56 Analysis of Financial Performance in 2013 61 Capital Markets 62 Investments 64 Outlook ANNUAL REPORT EVOLUTION OF PRICES OF ULTRAPAR SHARES KEY INDICATORS (Base 100) BM&FBOVESPA NYSE R$ million 2009 2010 2011 2012 2013 121 140 140 Ultrapar UGPA3 126 DOW ANNUAL REPORT 2013 ULTRAPAR ANNUAL REPORT 2013 ULTRAPAR ANNUAL Net revenue from sales and services 36,097 42,482 48,629 53,869 60,940 120 130 JONES EBITDA 1,450 1,855 2,048 2,411 2,918 120 Net income 441 765 860 1,027 1,229 100 Investments 1,941 815 1,081 1,483 1,119 110 Dividends declared 279 429 525 627 744 80 Earnings per share (R$) 0.82 1.43 1.60 1.90 2.28 85 100 106 IBOVESPA UGP Dividends per share (R$) 0.52 0.80 0.98 1.17 1.37 60 90 Number of employees (end of the year) 9,429 8,883 9,055 9,282 9,235 Dec/12 Feb/13 Apr/13 May/13 Jun/13 Aug/13 Sep/13 Oct/13 Dec/13 Dec/12 Feb/13 Apr/13 May/13 Jun/13 Aug/13 Sep/13 Oct/13 Dec/13 Ipiranga Sales volume ('000 m3) 17,214 20,150 21,701 23,364 24,758 Net revenue from sales and services 30,486 36,483 42,222 46,829 53,384 EBITDA 838 1,149 1,366 1,653 2,030 Investments 222 383 591 942 746 NET REVENUE EBITDA NET INCOME 3 (R$ million) Productivity (EBITDA R$/m ) 49 57 63 71 82 (R$ million) (R$ million) 2 ULTRAPAR 2 ULTRAPAR Oxiteno 2013 60,940 2013 2,918 2013 1,229 4 MESSAGE FROM THE MANAGEMENT 4 MESSAGE FROM THE MANAGEMENT Sales volume ('000 ton) 634 684 660 761 776 Net revenue from sales and services 1,916 2,083 2,409 2,929 3,278 2012 53,869 2012 2,411 2012 1,027 6 MANAGEMENT FUNDAMENTALS 6 MANAGEMENT FUNDAMENTALS EBITDA 171 218 262 352 441 8 Corporate Governance 8 Corporate Governance Investments 163 227 107 115 139 2011 48,629 2011 2,048 2011 860 Productivity (EBITDA US$/ton) 135 181 237 236 263 10 Management Model and Strategy 10 Management Model and Strategy 2010 1,855 2010 765 2010 42,482 Ultracargo 14 Risk Management 14 Risk Management 3 Effective storage ('000 m ) 461 552 582 614 696 2009 1,450 2009 441 16 Innovation 16 Innovation Net revenue from sales and services 337 293 260 294 332 2009 36,097 EBITDA 111 145 117 143 158 18 Relationship with Stakeholders 18 Relationship with Stakeholders Investments 79 62 107 82 37 22 Social and Environmental Philosophy and Sustainability 22 Social and Environmental Philosophy and Sustainability Ultragaz INVESTMENTS DIVIDENDS DECLARED MARKET CAPITALIZATION 28 EXTRAFARMA 28 EXTRAFARMA Sales volume ('000 ton) 1,589 1,608 1,652 1,681 1,696 Excluding acquisitions (R$ million) (R$ million) (R$ billion) Net revenue from sales and services 3,441 3,661 3,767 3,847 3,982 32 IPIRANGA 32 IPIRANGA EBITDA 285 300 281 246 281 Investments 105 157 182 157 151 2013 1,089 2013 744 2013 30 38 OXITENO 38 OXITENO Productivity (EBITDA R$/ton) 179 187 170 146 165 44 ULTRACARGO 44 ULTRACARGO 2012 1,310 2012 627 2012 25 Capital markets 48 ULTRAGAZ 48 ULTRAGAZ Average daily trading volume (R$ 000) 26,961 32,953 34,646 55,498 69,874 2011 1,004 2011 525 2011 17 Price at BM&FBOVESPA (R$/share) 20.03 26.28 32.01 46.29 55.95 54 RESULTS AND OUTLOOK 54 RESULTS AND OUTLOOK Price at NYSE (US$/ADR) 11.73 16.16 17.20 22.28 23.65 2010 848 2010 429 2010 14 56 Analysis of Financial Performance in 2013 56 Analysis of Financial Performance in 2013 The financial information presented in this document has been prepared according to International Financial Reporting Standards (IFRS) 2009 11 and EBITDA figures were prepared in accordance with ICVM 527. From 2011, the figures reflect the adoption of IAS19 and IFRS11 standards. 2009 585 2009 279 61 Capital Markets 61 Capital Markets The financial information of Ultrapar corresponds to the company’s consolidated information. The financial information of Ultragaz, Ipiranga, Oxiteno and Ultracargo is reported without elimination of intercompany transactions. Except where otherwise indicated, figures 62 Investments 62 Investments are presented in R$ million. 64 Outlook 64 Outlook The number of earnings per share, dividends per share and share price was retroactively adjusted to reflect the 1:4 stock split of the shares issued by the Company approved by Extraordinary General Meeting on February 10th, 2011. Average daily trading volume presented considers the combined trading on the BM&FBOVESPA and the NYSE. ANNUAL ANNUAL REPORT REPORT EVOLUTION OF PRICES OF ULTRAPAR SHARES KEY INDICATORS (Base 100) BM&FBOVESPA NYSE R$ million 2009 2010 2011 2012 2013 121 140 140 Ultrapar UGPA3 126 DOW ANNUAL REPORT 2013 ULTRAPAR ANNUAL REPORT 2013 ULTRAPAR ANNUAL Net revenue from sales and services 36,097 42,482 48,661 53,869 60,940 120 130 JONES EBITDA 1,450 1,855 2,048 2,411 2,918 120 Net income 441 765 860 1,027 1,229 100 Investments 1,941 815 1,081 1,483 1,119 110 Dividends declared 279 429 525 627 744 80 Earnings per share (R$) 0.82 1.43 1.60 1.90 2.28 85 100 106 IBOVESPA UGP Dividends per share (R$) 0.52 0.80 0.98 1.17 1.37 60 90 Number of employees (end of the year) 9,429 8,883 9,055 9,282 9,235 Dec/12 Feb/13 Apr/13 May/13 Jun/13 Aug/13 Sep/13 Oct/13 Dec/13 Dec/12 Feb/13 Apr/13 May/13 Jun/13 Aug/13 Sep/13 Oct/13 Dec/13 Ipiranga Sales volume ('000 m3) 17,214 20,150 21,701 23,364 24,758 Net revenue from sales and services 30,486 36,483 42,222 46,829 53,384 EBITDA 838 1,149 1,366 1,653 2,030 Investments 222 383 591 942 746 NET REVENUE EBITDA NET INCOME 3 (R$ million) Productivity (EBITDA R$/m ) 49 57 63 71 82 (R$ million) (R$ million) 2 ULTRAPAR 2 ULTRAPAR Oxiteno 2013 60,940 2013 2,918 2013 1,229 4 MESSAGE FROM THE MANAGEMENT 4 MESSAGE FROM THE MANAGEMENT Sales volume ('000 ton) 634 684 660 761 776 Net revenue from sales and services 1,916 2,083 2,409 2,929 3,278 2012 53,869 2012 2,411 2012 1,027 6 MANAGEMENT FUNDAMENTALS 6 MANAGEMENT FUNDAMENTALS EBITDA 171 218 262 352 441 8 Corporate Governance 8 Corporate Governance Investments 163 227 107 115 139 2011 48,629 2011 2,048 2011 860 Productivity (EBITDA US$/ton) 135 181 237 236 263 10 Management Model and Strategy 10 Management Model and Strategy 2010 1,855 2010 765 2010 42,482 Ultracargo 14 Risk Management 14 Risk Management 3 Effective storage ('000 m ) 461 552 582 614 696 2009 1,450 2009 441 16 Innovation 16 Innovation Net revenue from sales and services 337 293 260 294 332 2009 36,097 EBITDA 111 145 117 143 158 18 Relationship with Stakeholders 18 Relationship with Stakeholders Investments 79 62 107 82 37 22 Social and Environmental Philosophy and Sustainability 22 Social and Environmental Philosophy and Sustainability Ultragaz INVESTMENTS DIVIDENDS DECLARED MARKET CAPITALIZATION 28 EXTRAFARMA 28 EXTRAFARMA Sales volume ('000 ton) 1,589 1,608 1,652 1,681 1,696 Excluding acquisitions (R$ million) (R$ million) (R$ billion) Net revenue from sales and services 3,441 3,661 3,767 3,847 3,982 32 IPIRANGA 32 IPIRANGA EBITDA 285 300 281 246 281 Investments 105 157 182 157 151 2013 1,089 2013 744 2013 30 38 OXITENO 38 OXITENO Productivity (EBITDA R$/ton) 179 187 170 146 165 44 ULTRACARGO 44 ULTRACARGO 2012 1,310 2012 627 2012 25 Capital markets 48 ULTRAGAZ 48 ULTRAGAZ Average daily trading volume (R$ 000) 26,961 32,953 34,646 55,498 69,874 2011 1,004 2011 525 2011 17 Price at BM&FBOVESPA (R$/share) 20.03 26.28 32.01 46.29 55.95 54 RESULTS AND OUTLOOK 54 RESULTS AND OUTLOOK Price at NYSE (US$/ADR) 11.73 16.16 17.20 22.28 23.65 2010 848 2010 429 2010 14 56 Analysis of Financial Performance in 2013 56 Analysis of Financial Performance in 2013 The financial information presented in this document has been prepared according to International Financial Reporting Standards (IFRS) 2009 11 and EBITDA figures were prepared in accordance with ICVM 527. From 2011, the figures reflect the adoption of IAS19 and IFRS11 standards. 2009 585 2009 279 61 Capital Markets 61 Capital Markets The financial information of Ultrapar corresponds to the company’s consolidated information.