Ultrapar Participações (UGP) 28 Feb 212020 Q4 Earnings call transcript

Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's Fourth Quarter 2020 Results Conference Call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at ri.ultra.com.br and MZiQ platform. Please feel free to flip through the slides during the conference call. Today, with us we have Mr. Officer; Executive Chief Curado, and Mr. Frederico Chief executives of Pizzinatto, Financial, Investor other with together Officer, Ultrapar. Relations Rodrigo We would like being to inform you that recorded. this event is [Operator Instructions]. week. this available A will X of replay call for be

statements proceeding, are harbor Before the Reform Litigation of Securities mention me that of being under the let made safe XXXX. Act forward-looking

expressed therefore, and the future economic and future. industry could available occur should of and They company. to materially in the of in are on assumptions Investors they management to Ultrapar the those results depend uncertainties affect relate and understand because Ultrapar factors statements such and that operating may Forward-looking not forward-looking cause general beliefs the future differ and that could based conditions, events statements. the other involve on assumptions or in results on conditions to currently circumstances risks, also from information may

Curado. begin Now to the you Mr. over Curado, now I'll conference conference. Mr. may turn the

welcome businesses. had Thank that our our and a pandemic the saying was with consistent effects Ultrapar Good conference. quarter for and our off of your we it year what you participation. let on very consolidated kick fourth morning, despite to projected, And me good the for

Ultracargo both particularly lockdown also our effect any people. Let of our of the revenues company, cash the is and billion even the in investments. in revenues. safety to able teams is all-time the record keep managed is the and exceed generation level to crisis, the this point first managing the the all, history, not as of our for of an achieved taking Well, the acquired in last and Ultragaz, also of of breakeven year, including, service our into had -- of mobility their competence Ipiranga's several all-time Extrafarma company, first me our from restrictions But also also, on dedication a very were we continuity since results, account whole Three operations. a and customers to a We record this interruption performance a BRLX.X recent in highlight best years, cash and also to the challenges companies Extrafarma of individually last businesses, view this a the time of several the and whatsoever, more relevant, had for of solid we our Oxiteno, have negative and so after Ultrapar But operations results. And the its during did year. our high consumers.

an from margin, So that basis to all to percentage of led points in 'XX increase of a as revenues EBITDA of XXXX. XX measured Ultrapar's

which an our We also approaching a comparison. And XX% this increase XXXX. apples-to-apples BRLXXX represents to net compared is income grow, already saw million,

the words, excluding other in So of effect here that we the we XXXX. impairment had in are

we dividend -- our These from negotiated with So on presence Ultra to elimination in a have a profit. management net in extended liability point debt. -- distribution. of covenant-free of our and last of our of oil level keep And at allocation the totally covenants. a despite billion of to had Because the and also throughout covenants why the BRLX.X debt in are Well, it's view there we -- longer, the debt allow XXXX is some in vision downstream this of potential prioritizing XX% maintain so investment, the about management a capital no good adding We high they stage. efforts us has the level sort in of an the keeping this cash that? We the term of debt, a comparable basis, well. we greater were year an the Also the our But small Brazil. for also where during as remark a year. performed of XX% important year importantly, our cost reduction for value. average the the of our increase and sector us. important gas Consolidated of also our unchanged was of And group leverage strategic year, debt agenda, the

of be the economic course, of to ultimately, the control see benefit conditions also of end Of results. with the which towards which, affected But of very the activity the having of improvement despite, looking confirm of the and benefits Well, will at to will opening by have Ipiranga, Brazil, -- was most, as a valid. in the of important competitiveness a the the to the vaccination an step assure On still this process the based we in various to refinery free also important But relevant that course, the already refining increase competitive the is especially in recovery the in And pandemic. sector continued of business one in Petrobras in markets And of challenges future, of and long the its a and mentioned, Ultrapar I the in of of on the was pandemic. the the negotiation most that that year the process we course, the to consumers. in convinced hand, the acquisition a we bring contract we end the anticipate south trajectory. the of an associated businesses, progress but remain [indiscernible] and need remain day, dynamics XXXX market Brazil. our

to on a higher portfolio, more On that, the strategic of I which in of focusing expect would long-term consequently, more to which chance for we consolidating focused we to position will our will shareholders it years, great to by transparent we to advance another are competence more also business And have recognized professional, be decade. side, do been senior a also a a we committee, stakeholders. as the next few that a throughout the focus creating. agenda me. It's and ESG creation competencies. and us contribute he our new reporting vision consolidate And us. effectively value March. ESG in for position for That and last to plan the led is agenda join Valed reinforcement have of Valed the agenda. priority, in will help our is objective like Valed will again And a an mention the we we Amiliteli. directly experience, and be XXXX, executive the great

and definition So of will those monitoring the our continuous specific agenda performance topics. that include of for targets on disclosure

on passing ESG. close that's year a So the objective synthesis one, before And the for to in challenges Rodrigo, I strategic XXXX our was solid the main about as far the the that, like as created to of And also very on Ultrapar floor see light but operational optimistic view XXXX we side, especially the pandemic. with by where agenda. for evolution XXXX, both would the

I'll appreciate for again available end participating. the attention. your the So Thanks for Thank I session. be Q&A at you.

good the some affected And year, In good morning, to over results. would results results. afternoon, Ultrapar's releases. starting, everyone. here in report about we to nonrecurring very XXXX the a I before And be good of like that our impacts we highlighted had our It's just XXXX, talk that point regarding our and mention again to

and analyze some have results Beginning we of these that the explanations our nonrecurring operational businesses Very Slide positive consolidated our with negative Ultrapar. performance so both effects, of recurring and Ultrapar's excluded we in in well. see can You that X.

BRLXXX was a of the over the period fourth million growth quarter EBITDA of XXXX, in Our XXX% of XXXX. same

assets. of 'XX, million had goodwill at I point a quarter impairment of and should fourth BRLXXX Oxiteno BRLXX of Here, Andina the we out write-off of that of in Extrafarma million

fourth in of BRLXX quarter for in tax Oxiteno. nonrecurring million there While the credits was 'XX,

we Excluding Ultragaz effects, despite Oxiteno, EBITDA to our of Ultracargo last the XX% conference call Ipiranga Extrafarma. quarter had indicated the of in with in and line for nonrecurring in there of XXXX Ultrapar results reduction growth quarter these due at our and Fourth was a were results. results lower third EBITDA in what

were misses bit a above others bit Some a below. and

whole of BRLX.XXX XX% growth Looking for reached billion, the previous with EBITDA year. the our of now XXXX, year the that a at of compared results

that in mentioned by X% years, for Ultracargo Ultragaz, resilience in reinforces and pandemic. in results footnotes had what But Extrafarma, decline due a the compensated the for Ipiranga both EBITDA strong most severely by to the nonrecurring the at we portfolio. Oxiteno, was the Excluding the in part, results of effects business lower affected our

chart, of the improved financial a and year of fourth reported the the million, impairment in we quarter a the and at the BRLXXX of profit was now compared reached of the with Extrafarma I of just to reasons the the negative of BRLXXX mentioned Moving fourth net the fourth higher of due XXX% increase an million growth Net quarter compared results. and income of the 'XX. -- This result the million same to 'XX, in preceding BRLXXX XXXX for impact to reported on the year for income 'XX. quarter

the BRLX.X XXXX, in and XX% had than generation of our lower working our the announced, to for income preceding has cash already in management Even higher the XXXX X.X%. with a Directors have of represents to after we year. was million investments, we Board without the mark to of reaching share, XX% payment investments enhancement potential. the and This BRLX.XX yield adverse Equivalent of dividends net scenario year thanks reported achieved, our As per XXXX. dividend for affecting BRLXXX billion, of expansion we record capital operational of the approved of which the

Our -- our of indicative liability to management. to cash X and commitment indicative resilience and moving And developments of about talk of of now generation discipline financial soundness is businesses. to an in the one and our our Slide

Ultragaz. X% debts. was following to isolation to first XXXX the growth see, of as of same commercial X% in in right, to of fourth sales quarter bottom well a segment volume in It in to XXXX in due moving allowed compensation, in XX. part now first a leases reducing can despite 'XX, by SG&A of the see to are in 'XX, as cost. the the also net the quarter Our quarter X% the the on was due the in contributed of reduction net volume the levels inclusion leverage, Ultragaz year debt. the carrying to implementation of progression leading to of bottled you chart. been higher of X% In of though This EBITDA. lower industry Xx In sales the you from And lower to greater the us the still quarter the growth bulk the segments, as as of anticipation lower leverage, This company's leverage active we by from relation X period. higher that that to ratio have in is is gross bottled and with and region. the the fourth more XXXX X% debt talk that our segment segment, to due measured XXXX, whose pointing in consequence some growth freight reduction our segments generation the the to Slide segment benefited earnings sequential approach debt, with the year-on-year increase reported sales both management One The than Southeast increased we as payment expenses financial at services XXXX payable strong calculation the cash end social cash year offset affected about line In volume including a the we half can for anticipated these of out effects in pandemic. in the leases expenses debt bulk by for increased graph in lower in by in of much sales even not variable in the with worth IFRS expenditure. demand of in

XXXX of have in whole, Ultragaz' result level function second a mainly of of volume, were On in a able EBITDA SG&A by EBITDA X% driven and in to greater million, requalification through sales higher as fourth controlling social of XXXX a operational of a the reduction growth in of And current of reached record the resulting when we due and in to XXXX, greater volume, This isolation with expenses. tankage quarter the to that of year-on-year for a higher as efficiency for well as quarter, reductions strong Ultragaz due and at hand, several higher compared million decrease the implement concentration XXXX. the quarter optimizing for BRLXXX BRLXXX X% quarter was other mentioned, to SG&A. we profitability I XX%. was quarter, a first compared initiatives expenses costs In XXXX lines with the in lower the maintenance an XXXX. of sales reduction expect same as similar of to a quarter

in Ultracargo to move now X. Slide Let's

the capacity greater contracts the the of the a XXX,XXX fourth quarter, utilization the Net on cubic and at quarters you in of to existing of expansions, that fourth we BRLXXX the of of tankage left-hand the whole, And average million a terminal of year, amounted the the expansion When net higher see growth of the the meters, to sold year million, revenue that BRLXXX in the at reached results influenced mentioned higher chart, back was Santos as readjustments. capacity the Ultracargo greater due use than XXXX a existing in Itaqui there XXXX the compared efficiency for in spot at reasons growth capacity. As well of number year, since capacity contractual can XXXX. year, in than in in quarter compare for to each Ultracargo to tankage Santos the XX% and was expansions efficiency XXXX improved capacity X%. fourth reached mainly as of and the and of as revenue XXXX for preceding the It's the worth Ultracargo's as was cubic higher just XX% In relation last XX% a in new Itaqui meters mentioned of as in reached quarter million and same I the a result well EBITDA full operations the record quarter that, per slide. quarter excluding of in in that of higher BRLXX result XXXX that, and revenue and damages, XXXX that cubic to fourth than Combined than with higher EBITDA arising effects due the sales fell XXXX. meters fourth expenses due in in million the XXXX, higher XX% gains. few Ultracargo the productivity cost extraordinary from in to the BRLXXX expenses sold on The a from gain in and one-off both of company's this of our leverage better for terminals. in Santos Itaqui a cost close and year-on-year, fourth reduction the first quarter, capacity gains quarter of the of seen as illustrates or expansions the productivity. and terminals growth in at occurring XX%. at XXXX. expect and quarters, And payroll EBITDA the quarter, reached This the results start-up benefits of efficiency X% XXXX posted mentioning And mainly result expansions from quarter XX% notable XX% XXXX. margin the first X% we expenses terminal

the increase operations also in across #X, Now next year-on-year seasonally volume higher strong moving growth home about talk sales the Oxiteno. in States XX%, crop We our Specialty in quarter thanks BRLXX growth. effects, asset care, EBITDA record BRLXXX coating at third a we quarter Oxiteno's report one the Oxiteno in chemical XXXX. with Oxiteno's should than United And the segments Commodities quarter ramp-up, reporting the the rose XX% million, sales the very were in were million, sales to higher recurring it's a CEO fourth BRLXX growth Brazil, continuing slide, to than pandemic. volume XXXX whole, higher million States year whole, Venezuela to sales compared worth expenses international extraordinary volume, volume was exclude a variable of fourth of volume for XX% of result devaluation operations on the a back in variation EBITDA due write-off. as with and the tax logistics results results XXXX, of an Oxiteno's was XXXX. nonrecurring X% expenses higher better to the quarter quarter quarter the If sales credits back compensation XXXX although 'XX, that EBITDA ramp-up in flat that that on continued impacted million, with these fiscal also of due partially XXX% expenses by still in XXX% the over by to year-on-year. BRLXXX SG&A and sales of our as amounted increased the currency all of with in line real. BRLXXX personal to of of remember to solutions and Sales In was more fourth in EBITDA with a the business most great notably higher were fourth had with and of with the units, million. of segments. in board XXXX the high in the of we operations in United

despite than with forecast and first now above to in Excluding impact Oxiteno Ipiranga. We the XXXX results of X% of talk Brazil. quarter at direct of moving quarter million, nonrecurring significantly year. And the BRLXXX a lower growth about EBITDA that previous quarter was Slide effects, for year-on-year, the continued sales XXXX higher that X volume levels consumption XXX% volume little fourth fuel on good outlook. Sales the EBITDA a fell the recurring fourth in of to result pandemic

see otto fuel in since segment due As impacted with less right-hand with in of sales of cycle the proposed decline consumption were trend and to side chart shows you can chart, from the affected the most The reduced start on car the year. a the the use. a X%. X% restrictions the was reduction Diesel

as a can a consequence You in see gradual vehicle of traffic. recovery volume improving

XX% diesel. a for the reduction makes with comparison a a SG&A service fourth with of lower the end otto difficult. with XX% unfavorable line and oil lower to of back We import the volumes fell previous of in year freight And relation For XX% with mainly fourth in in optimizing more as implemented accounts increases lower decrease of in at doubtful initiatives to margins, XXXX, X% and in fuel X,XXX expenses and of XXXX. more parity of as consolidated quarter with year. the minimizing cost lower derivatives contribute the and as controlling continued XXXX well an X% of expenses the volume. the XX% ended the a whole, In than quarter of in network the drop fourth cycle the year quarter effects XXXX, to expenses a sales a compared on with with year volumes a decrease reported stations, SG&A

previous the provisioning compared the in same results down line worth the mainly The other BRLXX CBio of due for the BRLXX the operating is the quarter targets to million was quarter fourth the the XXXX of meet This of decarbonization taxes, XXXX of with fourth period difference for million in order to year. year.

On the fourth the eventual other the improve to inadequate. capital is a return employed company's worth hand, of through BRLXX Part sold Ipiranga capital quarter of of in where total efficiency assets of estate million to efforts the 'XX. real the sale

lower As results EBITDA a a down margins amounted result, volume, Ipiranga's sales offset the from fourth XX% decrease SG&A higher in BRLXXX to of year-on-year, lower from the sales of assets. other operating results, million, a result and reduced result partially and quarter by

a in and a XXXX of fuel narrower on For ethanol; the taxes. especially volatility effect XX% reduction in XX% case X sales volume; of to the factors: was margins, year the spite as the carbonization provisioning for negative mainly billion, EBITDA price down the lower year and in XXXX whole, BRLX.XXX of in due SG&A,

worth annual million, are more to that is improved stores, that initiatives back XX to was of the of in the quarter and noting despite the XXXX, We higher to Gross XXXX, greater XXX and growth highlights Friday through in readjustment a volumes personalized Black 'XX effect the of the to medicine of with revenues Extrafarma particularly stores continuing XXXX. growth and ended from same-store Extrafarma. X% entire of of at approach the digital quarter to reflecting implementation add the XXXX ahead of X% nonperforming as will similar This above the expect the talk the and were the of to X% a selectivity Slide about quarter coupon quarter. results a I the in results phase. channels. well. one promotional sales first a that stores moving prices XX% also promotional stronger And X% driven still the Looking recovery network first sales we that of expansion. with BRLXXX at now lower fourth for smaller It on the by network, of ramp-up sales, than rigorous of

posted more year, for a XXXX acquisition is year. conclude, to XXXX Extrafarma EBITDA reducing Xx This growth full in underperforming record. for expenses. the revenue again, XXXX compared optimization smaller effect preceding logistics BRLX.XXX of improving than BRLXX as the was the the profitability gross that at lower in that productivity as the you in for year-on-year excluding continues. million write-offs is of results I This of same fell that impairment the in million full billion, impact full year, Extrafarma XXXX million effect. an Extrafarma and tax stores the credit year, fell than a productivity SG&A with reasons network an with of quarter, million In gains year. ramp-up, XXXX. also fourth in of expenses impairment XX% X% the quarter there fourth And the the quarter operating I'll better explained. BRLXX million, year, the improved quarter the and of fourth year full closing fourth the no the of than SG&A of of of the as Extrafarma fourth the the In of goodwill process a excluding preceding of the quarterly the reached BRLX the just initiatives and Other XXXX, was amount in impairment. cash reflecting result that remind of expenses result For EBITDA in expenses XX% quarter, improved of well in network BRLXX quarter the BRLXXX

Last talk observed and quarter, to volatile XXXX the we in at we outlook but growth our businesses. in than And used about of results assumptions macroeconomic recently. are night, the expect see the lower XX, for year-on-year macroeconomic shown EBITDA uncertain. level to now right. The Slide And the our Ultrapar For a chart each and the for continued continues year. first we on current for guidance announced forecast our on

You should additional contemplating are pandemic. the we note that from not impact an

this BRLX.X Ipiranga, BRLX.XX important back the between Given pandemic, consolidated a over growth growth and forecasting results billion, recovering Oxiteno, billion of business scenario, in are Ultrapar in the most affected and EBITDA on results an by we and in in Ultracargo for in XXXX the Extrafarma. projected

recover exchange about also talking each this despite throughout serving the crop segments expect by solutions, Now quickly pandemic, and to home gradually favorable growth expect with for prospects Ipiranga, volumes such forecast we year care At results, another of profitability and business. year. record the At Oxiteno, we growth helped rates. and and good strong personal as

quarter Here, were XXXX will effect I for structure the XXXX last most over during review although positive we there period a we XXXX. the policy At considering by LPG it social the unlikely our spike of we collar the that year, expect the at last measures consumption second better X diligently, isolation to than XXXX, contract our intend of results that of Ultragaz, in Board following be believe had not we would being growth observed significantly of with do Directors results mainly the when in point is out of cost hedging end year.

agenda expansion also out and point combined, underway capacity productivity, the terminal tankage significant the a expansion Ultracargo, and the Vila reach I of efficiency At would the do year-on-year, and Conde as project management in And new meters well take at of in the a new projections add capacity results for growth the back of I X before strong prospectives we attention also to to will expansion and Slide and XXX,XXX executives. year, expect eventual our new IR on as a in and activity Please series improving level the closing end will to will of divestments. as as draw implemented already gains scale for level as For XXXX. acquisitions do also capacity will results of higher about which, start Itaqui events include in the not terminal initiatives and we a at beginning for our and growth and results. objective Each presentation, to exposure note community. and greater gains that logistical would specific tankage, efficiency. we XX the event well analyst to with cubic the This This to the XX% these this the result XXXX. operational. growth strategy, with like increase of becomes between to to my Extrafarma, hour your year our with operational about investor network

this March starting series are on We with Ultracargo XX.

shall specific planning Ai, and convenience also shall are events for sending we We AmPm, we others the out theme events invitations is our as among -- on a stores, Abastece BF, be be sending ESG -- the as confirmed. are

next And the our model both General allow less, we your I during traditional exposure month. the our our understood. of in that Annual and interaction will as events be I We XXXX I hope for also today. company can mid-March session. better known strategy appreciate and now or based date May executives available this will more in Ultra greater slide. the the interest in releases same quarterly begin thank Q&A shown perspectives the Shareholders XXXX attention well and we now And you. as The will our and in to And be are become of reasons. did proposal our management Day, planning international similar year. in this of more are also whose course April, meeting held on

in capital. to the And company, is address also second here Difficulty]. the [Technical result market. X is that under I of like What would question under main businesses assessment I of standpoints. this players terms your in the would other say, different is about the allocating

on the terms the If refining know type affect unlock to And in now AmPm make advantage the that of would to through strategy last able on these public point comments refab. of have part you kilometers the is assets. could that And in you're comment the you appealing which some to of extent like the be other process taking specifically to I the it's program. to the and not news aspect value or

Luiz, thank you for the question.

by then and second ready me get can Let one. the start first for the himself Rodrigo one

Just where important and it's I legitimate to the the And think scenario kidding. But question we're anyway, we're talk full about right is at. at.

strictly terms gas Our is oil with downstream, there is that oil it's Brazil derivatives. pillars And of kept valid. the a some are they're that thought of a One long-term structure and in a outlook. are market deficit and

the refining the what not saying to installed demand. even absorb it's So still that is I'm capacity, enough optimized, it's if

guarantee of So commercial of this terms volume is an refineries. risk in important for the

The thing the trend that been is global current to on locating and executive a the of clearly It's the matter global companies a second need be this this Petrobras trend, company. not of big and the has oil trend, a for team. concentrated is is a And that. production is of -- important very

there on BP. definitely a that the need from the and that, one are Shell they value is I is the path mean, mostly paving ones they're which that already concentrating and generate know So path world we right the and following can all around it.

see term as very side, if the used and -- must and state-owned years, not to milestones we applications. political there influence. an structure uncertainty I be does as bylaws can when in company the Petrobras' But the previous have had short some question, is view, political is subsidy on So we the structure-wise, the one also oh, in with allow about term, something as think is we say, important public the that that the impact political instruments, some here, yes, some be are long we there to anxiety. regulatory but There But also that unlikely. this

other hand the country would will change for practice, of the fiscal someone But you moment not can from bylaws. can I the the It's of but true. -- allow type this So say, say.

to we the short, in basically, So Petrobras point There process. sign sign has I an this mean, altering a I whatsoever. we're long make and of believe no being of that are negotiations. absolutely no negotiating been terms course at a from story where our investment, of

take still asset quite It's complex some And carrying the not will we're So on with time. simple negotiations. just they're a ones. and

in on, the a operation, the very the important both. our -- a sector, or talk new have from started have that strategies experience So stores, in yes, to asked partnership last have X carry shown form, our when scenario. we with committed of And improve been, be own resellers you just refining new tests competitiveness, sector player we this on fact The about our AmPm very process partially as obviously, want bearing know of with and we're also the from management and be and has we'll had new ones companies, we in we we very screening. that our dynamics working the privatization, from with you are that us and this about, and will years, the and fruit. a quickly, to relevant to the AmPm

have we So been that. accelerating

We have nearly is really XX can win-win which a situation be and this company-operated important. stores,

-- about. talking this of top already can I X.X that I we've So head, gone we spin-off we in -- mean, mean digital bit in that And terms you today million tell accounts. can of also, of I contextualize my the we're a store. the from terms have

base is saying So with an start-up starts what program a as already that -- to that of as it because is a the kilometer linked I'm quite operating advantage. relevant it's start-up,

year, BRLX.X our app. on last billion had transaction So we of

terms where transactions and IT challenges escalated with million to million transactions, X have. all operational with what we have the recurring of XX people recurring transactions we So in

this very make it there to add approaches have value we and two So it. be process able to to clear

Rodrigo, like you to answer So Ipiranga? would on

for network explain by on be terms the with quarter, this see we when BRLXX gained of ahead profitability of already there the on terms will ones. mentioned this the We and Ipiranga, that branded And comparisons, as brand, long outlook ones. Ipiranga. cubic comparison quarter, at of costs with with That can And gaining ahead, this comparison, look on compare that inventory imports the meter. the what have that's with million, and because this participation variation can look at would which and we're I'll specific the And Luiz, But semester. situations guidance compared we we and And And mainly as we obviously, with bring see shows And shows brought that that talking have there looking and per we inventory, suggest we're the is quarters. that BRLXXX the fourth a the and We volume looking margins. important even but fuel to the about of by have quarter. we the difference, in we about working just to and of Good have over third But of where on have quarter we imports your -- you our in hasn't for we this the run We're look before. I nonbranded of have when about terms answering we're an had the been XXXX. standpoint release start focused the morning, variations. from X.X% delta effect something Ipiranga. if is ahead, we strategy. us can back bring the oscillations question there our trend, in

out Because a margin few we there. about The stands quarters. is could volume last the what Okay. make of last you talk out stands what if comment and when -- volatility

and share, the some you So market you lose other around. way margin, sometimes get

outside the of strategy to So understand it's the hard That's for us what there. company point. really the from is only

the segment are branded Well, focused is this I highly non-branded. right, and talked Luiz, about point, it this you that on

So we of and in participation. sector gained maintain the branded,

[Operator Instructions].

BTG from Pactual. Duarte Thiago Now

Frederico and three questions. Rodrigo,

the because help much Oxiteno When macro talk the at worse look address just could, for quite mean, the see is understand these and first to the We as of about navigate if a we you us the assumptions. The would It's can and implications you what about question. of I that's assumptions one that and the broader. the is Ipiranga, could clear to assumptions as brought that splits. important. terms see first is in the is That's But top volatility can, uncertainty, that distant. something we basis the It's us guidance. and if you better a two clear and that your you the expectations there. bit

and changes What especially more. in any a the And completed more ones we us once question, would are to lastly, what here bring the model when gain bit the new talking terms to is If specifically with competitive usually there's tell gain the like I implication. that here, the on having have, you for focus you calls, to it's this our how of Ipiranga, in again, X,XXX are works of so strategy we and and how change we on understand bring that branded and loss on a you about terms can this stores second previous of process that I'll of for a service It increased and base And bit have the how AmPm. you penetration and the could the of focusing you on. The will stations value and and X,XXX-and-something consumers. stations. see speed the in greatly terms customers specifically with gas imagine proposition penetration store associated lastly, one, if topic you this the and carry would that

a repeat voice. patchy a got I'm sorry we I'm please? a there. Could got patchy stop voice your we sorry, you, you of to Thiago, that, bit -- but

about talking AmPm was I stores. Sure. Sure.

penetration service standpoint you could last from bit the into XX%. is this and it model, from of details proposition the higher If convenience the the now new from you the future. owner that stores. year, of and tell what new how value us more how of consumers' station on one dropped should you carry a of see a And than There see was bit the

the Thiago, for questions. you thank

assumptions, So going through and for guidance first for Ipiranga the the Oxiteno.

margins, they're the also ethanol, especially fuel different this of the X oscillation what fuel much is expectation we of where oscillation the terms in are explains For from before factors, for main and what the cost very pandemic. Ipiranga, of the And factors had interval that for especially cost ethanol. two and marginal

Now in dollar and some the at Oxiteno, oscillation because also we have prices. of in margin volume more reference

Ipiranga point closing adding fourth the that XXX main are larger in this and stations these interval and And two brought we In service both bit Oxiteno. and terms define factors is for that of the closed. the a the So for this to had us quarter. second one, have

we the opened and terms in we've stations, closing XXX. we for the So of And than them ones ones working the is to have and been XX%, of so XX%. had at getting something bigger new worst in bigger what XXX ones that been what on noticing on closing closed average. have and down, the service terms are we're we And new

the it AmPm is fourth model comes quarter. the display for could obvious at to our point, greatly convenience implemented go what store, a stacks get that terms be a that would The we've this where service at the of convenience stores the in you of terms is of now of you're the change the related stores. when creating at third network of So welcoming we're increases fact the And more that the store. environment convenience beyond in stations products what on to with of

straight quick, you to the gum and something some go So or the in cigarette, buy some beverage, some to store you're cashier.

the juice, an margins us, bakery. better with create products like great encourage to to to the environment, sales So of margins and fresh

of its of a the there, of AmPm, profitability operation incrementing service station they points better analysis having the sales also these of the And manage franchisees. been the environment. of more help We've model can of all the understand few that store points implementation still there's create that and very And store, don't welcoming allows that that still store So the growth the to to results want an we many but been Ipiranga with convenience it's to highlight them. great been ones increase. want ones it the a means But have that growth compared have new have also help the fact I management previous this together that, better the that of of just in with of XX% changing the they model owners, that the should sale. increase showing few is of points

So this good. is be something really that can

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Crédit Our Suisse. Cardoso next question from from comes Regis

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the So it revolution over depends me. excuse on -- this semester evolution, this

Thank you. Okay.

answers Pizzinatto, This to floor is At Rodrigo questions time, I Pizzinatto Mr. any for floor the like concludes section. and the this back the closing remarks. Mr. would turn yours. to

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thank everyone, and good So have a day. you,

conference results today's concludes This you. Ultrapar's Thank call.

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