Ultrapar Participacoes S.A. (New) American Depositary Shares (Each representing one Common Share)

Welcome to UltraPAR's fourth quarter 24 results conference call. There is also simultaneous webcasts that may be accessed through UltraPAR's website at ri.ultra.com.br and MZIQ platform. The presentation will be conducted by Mr. Rodrigo Piscinato, UltraPAR's Chief Financial and Investor Relations Officer. In the Q&A session, we will have the presence of Mr. Marcus Lutz, UltraPars CEO, and the CEOs of UltraGas and UltraCargo, Tabajara Bertelli and Desu Amaral, respectively. We'll also have Mr. Pedro Guedes and Sebastião Furkin, CFO and VP of Operations of Ipranga, respectively. I would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. After Utropar's remarks, there will be a Q&A session. At this time, further instructions will be given. We would like to remind you that participants of the webcast may submit their questions through our webcast by submitting their questions. The replay of this call will be available immediately after for seven days. Before proceeding, we would like to state that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of ultra-power management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Ultrapar and could cause results to differ materially from those expressed in such forward-looking statements. Now I would like to turn the conference over to Mr. Rodrigo Pizzinato, who will start our conference. Mr. Pizzinato, you have the floor.

Good morning, everyone. It is a pleasure to be here once more to talk about Ultrapar's results. We will start with a brief overview of 2024. Last year was another year of important improvements for the company, even in an environment of volatility and uncertainty. We continue to see growth in UltraGas and UltraCargo and resilience in Ipiranga, despite the environment of significantly irregular practices in the fuel sector. We maintained a strong operational cash flow generation, which allowed the company to increase its investment level while maintaining financial leverage at comfortable levels. We made our largest capital allocation in a single asset for the last 10 years, with a R$1.8 billion investment, including proceeds from the advance for future capital increase to acquire a 42% stake in Indrovia Street Brazil. We also acquired Vittler for R$124 million, complementing our portfolio of energy solutions at UltraGas. We evolved our management model with a new governance, providing greater agility, autonomy, and accountability for our portfolio companies. We also announced the planned transition process for the positions of CEO and CFO of UltraPAR to be concluded by April 2025. And with that, I will now move on to the presentation of our results for the fourth quarter and the full year of 2024. And in slide two, I would like to remind you of the reporting criteria and standards used throughout this presentation. And moving now to slide three with UltraPARTS consolidated results. As you can see in the upper left chart, our recurring EBITDA totaled 1,284,000,000 reais in the first quarter of 24, a 23% decrease over the first quarter of 23, mainly due to the lower EBITDA at Ipiranga and the negative impact from the share of loss of hydrovias of 104,000,000 reais in the quarter. Looking at annual results, our recurring EBITDA totaled R$5,377,000,000, a 4% decrease over 2023 due to a lower EBITDA of Ipiranga and the share of loss of hidrovias, partially offset by rapid results of ultragas and ultracargo. Ultrapar's net income was R$2,526,000,000 in 2024, the same level we had in 2023, due to lower recurring EBITDA dipidanga and the reversal of deferred income tax from KMV, which was offset by higher extraordinary tax credits. As we have already announced, our Board of Directors approved the additional payment of dividends of 493 million reais, equivalent to 46 cents per share in reais. It will be paid from March 14 in addition to the payment made in August last year, totaling a distribution of 769 million reais in dividends for the year 2024. And moving now to slide 4 to comment on the cash generation for the year. We had an operational cash generation of R$3,736,000,000 in 2024, 3% lower than that of 2023 due to higher working capital investment, which was primarily driven by lower imported product mix. And as you can see in the graph at the center, in 2024, we received the final payments related to the sale of Occitano and Extra Pharma, totaling R$977,000,000. We allocated a much higher capital to acquisitions, that totaled R$1,782 million, mainly with the investment in IndroVias, and R$150 million to the buyback program. We also increased our capex, which totaled R$2,213 million in 2024, a 14% increase over 2023, mainly driven by higher investments in NutriCargo. Moving now to slide five to talk about our reliability management and leverage. Our leverage increased in the last quarter from 1.3 times to 1.4 times due to a lower LTM EBITDA, partially offset by a reduction in net debt. The reduction in net debt is due to higher operational cash generation, partially offset by three items. The advanced payment for future capital increase in IndoorVIAs amounting to R$500 million and reduction in draft discount by 276 million reais and the launch of buyback program which consumed 150 million reais in the period and at the bottom of this slide you can also see a table with the total amount of the draft discount vendor impending receivables from the sales of occidental and extra pharma then at that as of december 2024 including these effects was 8.9 billion reais which is 2.4 billion driven by the investments and acquisitions already mentioned. In moving to slide six to discuss the competitive environment in the fuel industry, Brazil has experienced an increase in unlawful activities in recent years in the fuel sector. According to data from the Instituto Combustível Legal, the country loses 29 and fuel deterioration. We included this slide to highlight the main challenges we have been facing regarding these unlawful practices, as well as evolutions Brazil has conquered to regulate the sector with tax collection gains. Over the unlawful activities that affect the most of our recent results is the noncompliance with the required biodiesel blend in diesel. Biodiesel is more expensive than diesel, and its price has increased since the beginning of 2024. There is also a large number of distributors who fail to meet renewable targets and do not purchase the mandatory carbon tax credits annually. These unlawful practices have allowed the companies to gain market share over the companies that follow the rules. The market share of unlawful companies that follow the rules decreased 2.9 percentage points in 2024. We are also experiencing advancements recently, as the new law for Renovabil, turning noncompliance environmental crime, among other things, and the anticipation of monophazia for peas and coffins for ethanol. And we expect that the fight against unlawful practices continue to advance and allow a better competitive environment for the companies that follow the rules. And moving to slide seven, let's talk about Ipiranga's results. The volume sold in the quarter decreased 1% year over year, with a 3% growth in the auto cycle and a 6% decline in diesel, mainly in the spot market. In 2024, Ipiranga's sale volume grew 2%, with a 5% increase in the auto cycle and a 1% drop in diesel. We ended 2024 with a network of 5,860 service stations, in line with that of 2023. Additionally, we closed the quarter with 1,450 AMPM stores, with a 9% same-store sales growth in the fourth quarter of 24. Ipiranga's SG&A decreased by 13% over the fourth quarter of 23, driven by lower personnel expenses and one-off expenses related to the conclusion of the service station reviewing process of the legacy network and marketing expenses in the fourth quarter of 23. The other operating results line total negative R$114 million in the quarter, an improvement of R$16 million compared to the fourth quarter of 23 due to lower expenses with carbon tax credits. The line of results from disposal of assets totaled 63 million reais, resulting mainly from the sale of 16 real estate assets. Ipiranga's EBITDA was 1,841,000,000 in the quarter. The recurring EBITDA amounted to 844 million reais, 27% lower year over year. The lower EBITDA mainly reflects reduced margins impacted by unlawful practices in the industry and higher inventory levels. and lower sales volume, partially offset by lower expenses. In 2024, epidemias total EBITDA was R$4,445,000. Recurring EBITDA totaled R$3.3 billion, a 6% reduction year-over-year, mainly due to industry unlawful practices and higher inventory levels throughout the year. For this first quarter, we continue to see a high level of unlawful practices in the industry, particularly in biodiesel. Even so, we expect profitability levels not below that of the fourth quarter of 24, despite the lower seasonality helped by inventory gains in the first quarter of 25. And now moving to the next slide, number eight, to talk about another good quarter for ultra gas. The volume of LPG sold in the fourth quarter was 3% higher year as a result of higher market demand, and to a 4% increase in the bulk segment, meaning reflecting higher sales to industries. The total volume sold in 2024 was 1% higher, driven by a 3% increase in bulk sales due to higher industrial demand, while the bottle segment declined by 1%. Ultra gas as GNA in the fourth quarter quarter of 23 due to higher personnel expenses, mainly due to collective bargaining agreements and acquired businesses, as well as expenses on lawsuits. Ultra gas recurring EBITDA totaled 441 million reais in the quarter, a 9% growth year over year. Ultra gas recurring EBITDA was 1,687,000,000 reais in 2024, a 2% growth over 2023. The growth was driven by higher volume and better sales despite the higher costs and expenses, mainly due to freight and the effects of inflation. And for this first quarter, we expect a nebida similar to that seen in the first quarter of 24. Moving now to slide 9, we will talk about another great quarter of ultracargo. The installed capacity remained at 1,067,000 cubic meters. The cubic meters sold grew by 9% year-over-year, mainly due to the start of operations at Alpla and Rondonopolis and greater handling of fuels in Vila do Conde. The truck cargo's net revenue reached R$ 283 million in the fourth quarter of 2024, 10% higher year-over-year. In 2024, net revenues totaled R$1.76 billion, a 6% increase over 2023. The growth reflects higher cubic meters sold, an improved sales mix, and higher spot and contractual tariffs, partially offset by lower spot sales of fuel. Combined costs and expenses were 11% higher than that of the fourth quarter of 23 due to higher maintenance costs, personal expenses, mainly variable compensation, and consulting services for expansion projects. Ultracargo's EBITDA totaled R$169 million in the quarter, a 9% growth year-over-year, driven by an improved sales mix, higher tariffs from spot sales, and contractual adjustments. EBITDA margin was 60% in the fourth quarter of 24, the same level as in the fourth quarter of 23. In 2024, Petrocargo's EBITDA was R$668 million, a 6% growth over 2023, reflecting higher cubic meters sold, higher spot tariffs, and contractual adjustments, despite increased expenses. And for this first quarter, we expect an EBITDA similar to that seen in the first quarter of 2024. To conclude the presentation today, moving on to the next slide, number 10, let's talk about our investments. In 2024, we invested R$2,213,000,000, with R$1,304,000,000 allocated to expansion, representing 59% of the total. This amount was mainly due to the postponement of investments to 2025, and highlights to Ipiranga's infrastructure projects and new ultra-cargo terminals, as well as efficiency gains in ultra-cargo projects. I also remind you of our 2025 investment plan that was announced at the beginning of this month, totaling R$2,542,000. We are also allocating approximately 60% to expansion. And the highlights are detailed both in this presentation and in the market announcement. Well, this concludes my presentation. We will now move on to the Q&A session to answer the questions you may have. Thank you very much for your attention.

We are going to start now our Q&A session for investors and analysts. If you want to ask a question, please raise your hand. The first question comes from Gabrielle Barra, Citi. Ms. Barra, please move on. Mr. Barra? Well, thank you very much for taking my questions. I have two quick questions. The first one, something that attracted my attention, concerned the margins of Ibranga. when we started the year, we had an expectation of margins, which would be better than 2024 because of all that interesting information you shared about unlawful practices. And there was a perspective of improvement. And there had been some gains throughout the year, last year. So we really expected 2024 to have been a better year in terms of profitability to the industry. And when you look through competitors, it's something that didn't turn out to be a reality. So my question is exactly about that. What do you expect for 2025? In your opinion, do you think that the industry, this potential increase in margin, would come back? Just if we change that in lawful practices, is there anything limited within the industry that can help to improvement? I know how competitive it is, but anything else that can be done to improve margin sourcing, pricing? I would like to hear more about this dynamic of margins. Analyzing 24 and looking ahead to 25 questions. to understand the dynamic of the whole industry. My second question concerns investment, analyzing Ultra, its role. This is the company that has the most comfortable balance sheet to make investments when interest rates are higher, macroeconomic challenges. So my question is, how are you going to use that favorable balance towards the benefit of the company? during a moment in which companies are being more conservative in terms of investment. Would it be the right time to increase that moderation pace, try to retain more market share? So that's what I would like to hear from you, understanding the fact that you have a more favorable balance sheet than the competition. Thank you. Good morning, Gabrielle. This is Rodrigo speaking. Starting from Nipiranga's margins and the slide that we showed you, it was exactly to highlight the main factors that have affected the margins throughout the year and not uniformly. The year started with the effect of Amapá and Paraná, but it ended up having an effect on the fourth quarter of biodiesel. And what happened throughout the year? In addition to the increase of the mix of fuel and supply and demand, the biodiesel price as opposed to diesel price really picked in the third quarter. which really gives an advantage to distributors who do not make the appropriate mix. Those who have unlawful practices, they end up benefiting in a market. That's what affected – that can be seen in our highway stations. Why have we suffered so much? Because we have our resellers – maintain competitiveness in this scenario where there were more unlawful practices concerning biodiesel. Now, looking ahead, and if we refer back to what happened in 2024, the return on investment is really low, lower than have fixed investments. There has been approval of Renovabil law, and the anticipation in monophase for PIS coffins in ethanol. So it means that companies that are paying tax can really compete in a fair play field. But, of course, there is a risk of deoperation. So this is the expectation. Trying to move ahead in our fight against irregularities concerning biodiesel, In the first quarter, the spread reduced because diesel prices went up and there was a reduction of the biodiesel prices because of the crop season. So I think that's going to help, but we still have to have better regulation of biodiesel to avoid these asymmetries between those that pay tax and those that do not. Let me hand it over to Pedro Guedes, our CFO of Ipranga, to answer the question about capex. Good morning. Thank you for the question. This is Pedro speaking. Concerning CapEx opportunities and a positive balance sheet, we have reduced the number of our service stations. So in terms of branded stations, we'd rather focus on quality than on speed. It is a pace and acceleration that will be determined on the opportunities that we are considering all the time. When we correlate that with market share, market share is a resulting of the activities more than a target. Part of our portfolio is correlated with branded stations, resellers. This is something that has given us good stability. And part of our portfolio are just more opportunistic initiatives, spot market and what shows to us. So branded, we'll think about quality and quality. and the other spot will just depend on margins and the benefits we might derive from that. Great. Thank you. And let me congratulate the new officers that you have now. Thank you, Gabriel. The next question comes from Rodrigo Almeida from Santander. Please unmute your mic. Good morning, Bicenato, UltraSteam. I would like to talk about UltraGas. Within your portfolio, it seems that UltraGas is the platform that I'm using to create more options of growth. It is contributing with additional EBITDA for no business. Can you please share with us what is exciting you the most in terms of new businesses? Where can you expect more mid- and long-term returns? Something that gives us an understanding of magnitude. It can be with gas, sterile gas. What can you share with us, really, about the use of UltraGas as the platform of growth for the group? And secondly, I'd like to ask about working capital. Can you talk about reduction of inventory levels in the quarter? Probably it's related with biodiesel inventory levels. It would be good. We said something about that in the last call. And finally, capital leverage. We've already asked about that, and we've seen a difference in buying back. So considering your... history and what has changed, really? What has changed to put you into buying back the shares? So whatever you can share with us would be most appreciated. Mostly appreciated. Good morning. This is Tabajara speaking. Thank you for the question. As you were talking about new energy, We are happy with what we've developed. The idea is not to have segregated businesses. In this quarter, we have combined our businesses. We can see individual contribution of new energy, new fuel sources of about 5%, with a trend to have an increase over the months. but we've been confirming our thesis of having a portfolio of energy solutions. They are getting close to maturation level, but there's still a lot to develop, really. In the year of 2024, we started to operate with biomethane, and then it was part of the operation by the end of the year. with a relevant portfolio of clients confirming our thesis. And also negotiation of energy in the free market, something more recent. Still a lot to do, but we are very excited about it. This is Pedro speaking. Thank you for the question. You've understood that in terms of working capital, We've got that by managing the inventories in the previous quarter. We talked about our planned movement of making investments, bio, diesel, ethanol, and this is something that was done gradually throughout the quarter. In addition, we've also made additional efforts to have oil derivatives at a more balanced account, so inventories, especially of biofuels. Rodrigo, concerning capital allocation, why buyback? Because the price of shares went down. And we can have better control of investment concerning our dividend, which is how we want to return really value to our shareholders. The payout was 35%, about 35%. And it's part with the buyback strategy. Depending on the price of those 25 million, that would be something like 500 million BRL. Great. A quick follow-up concerning working capital. Do you still see space for optimization, especially at Ibranga, throughout the year because of higher cost of capital? Anything to be done there in terms of optimizing inventory levels? Anything that can be of help? Well, I think turnover is something, rather, the working capital is something important, and we always focus on that. There was a price increase in this quarter. We do have some initiatives to optimize the working capital, focusing more in Ipiranga right now, but we still have to observe all the changes in market conditions. That's great. Thank you. The next question comes from Matthäus Enfelder, UBS. Please unmute your mic. Good morning, the Senato team. Thank you very much. Great result. The first question is about capital allocation and potential of additional diversification projects. at the holding more than at the subsidiary levels, and focused on your feelings about investments rather than short-term plans. What does Ultra have to see to get more excited, to start making more investments, such as the investments you've made at HydroVias? If you had an opportunity today, in other words, that would – How would you determine that? Would you prefer lower leverage, lower interest rates, or would you have to wait for the maturation of investments in hydrovias or even have more labor for investments? So what would be really your plan towards that? And concerning ultra-cargo, you have a very well-defined pipeline with deliveries of installed capacity for 2025. It has been part of your investment plan. But there has also been a reduction of expansion in 26 and 27. That's what I understood. Does it make sense? Have you been considering other possibilities of growth in ultra-cargo? And would it be possible to adjust the capex throughout the year potential opportunities that might come to you during the year of 25 and ahead. Thank you. Hi, Matheus. Thank you for the questions. Let me start about capital allocation first. I think you've answered your question to some extent. These are the two factors. First, we have a balance sheet and we can make new movements, but it will depend on the capacity to execute and execute well. We have a plan of integration and of value generation with Hidrovias, and it's ongoing. Lots of efforts towards that. But we are still considering potential investments. And if we have good return on investment and execution capacity, we can consider new capital allocations, but not short-term. Mateus, this is Dasu speaking. Good morning. Thank you for the question. We've been making investments in growth. In 2024, it was a record of investments at Ultra Cargo. Port, expansions, and our inland project. And the results are going to be noticed throughout the year. We have Opla, other railway systems, Palmeranti's second quarter, Itaki at the end of the year. Strong investments. The level of investments for 2025 are at the same level as previous year. We are going to start the expansion in SWAPI. SWAPI has become an important hub for ethanol receivings, and we have a very robust pipeline. In our portfolio with investments, we talk about the railway structure in Santos, near Piers. We don't see a slowing down. But with high interest rate, what we have to do is reallocate as demand increases. Our vision today is not to make changes in the plans that we have presented to you in our annual events. Thank you. Quick follow-up on Pisinato's answer. The timeline of expectations for maturation of your efforts in Hidrovia's that you showed in Ultra Day by 2025, have it already, is it maintained as an expectation from your side? Yes, we maintain that. Great, thank you very much. Our next question comes from Pedro Suarez, BTG Pactual. Please go ahead. Good morning. Good morning, everyone. Good morning, everyone who's connected. The first question concerning your investment plan that you announced some weeks ago, if I recall that in your last earnings release conference, you had anticipated that there would be a decrease compared to what had been budget or forecast for 2024 because of gain of efficiency and the postponement that you mentioned. I don't know whether you can share with us a breakdown within this number. Within the investment plan of 2024, what had to be postponed for 2025 and what was resulted from efficiency gains? And in your plan for 2025, would there be more gain of efficiency to be delivered? And finally, concerning Ipranga's strategy, especially B2B, in general, it has suffered more than B2C because of the unlawful practices. And we've seen some strategies executed by other players of TRR purchase, addressing this loss of market share, especially in B2B. Is it part of your plan? Could you please tell us more about the rationale and the possibilities that you see? Thank you. Good morning, Pedro. Thank you for the questions. Now, starting from CapEx, when we share the plan for the year, this is the maximum CapEx that we allocate for the period. It's a combination of all projects that had been approved with the board of directors to be executed throughout the year. It already has the maximum level of approval that would be made in terms of investments. Of course, we always focus on efficient management of such investments. And the main highlight in this efficiency comes from ultra-cargo this year, for example. If you look at the total CapEx approved, it was about 400, 450 million below plan. Half of that of efficiency. Most of it comes from postponement of some projects because of company decision. And there was a delay in one permit concession. It applies to infrastructure. and the expansions of Ultra Cargo. This is what we have in the plan for the year. Now, speaking about B2B and TRR, this is also learning for us. It is a parallel business that we have been focusing on, mobility, new businesses. We are learning. and we are going to determine whether it makes sense or if we are going to maintain as is. Thank you. Quiet, Leah. The next question comes by Monique Greco, Itaú BBA. Monique, please unmute your mic. Hello, good morning. Thank you for taking my questions. I'm going to ask two questions as well. One takes us back to the discussion of Ipiranga's margins. The fourth quarter had an excessive inventory in the whole chain, and this year we still have got many high inventory levels because of high interest rate in February. So we'd like to see how you've seen that progression of inventory levels at the beginning of the year. And do you see any effect of trying to sell more in the market? And within UltraGas, a broader question, we've seen the news and we've been monitoring the discussion of the program guests. to everyone in the population. And the model they are considering is the replacement of the current benefit to low-income people to a benefit that would be provided as product, let's say a bottle of gas that would be provided for free. What is your take on this discussion with this model? If confirmed, what would you expect in terms of changes to the industry because of that? Good morning, Monique. This is Pedro Guedes with Ipranga. You've understood that the fourth quarter we increased our inventory because of arbitration and also the incentives of anticipating the purchase, really to avoid tax. And we are going to observe that. We are now going to see A reduction of these high inventory levels going into normal levels, and we expect to have it normalized by the end of March. Monique, this is Tabajara speaking about gas to everyone, the government program. We are taking part in the discussion, trying to support the government. We think it's a very positive movement. by the government. This is something being discussed all over, energy poverty, those that do not have access to reliable energy sources. The program is applicable in Brazil, but it's a smaller scale. Addressing it accordingly as a society would be extremely good, and we try to support that. This is going to be done through the industry, through the sector. A lot is being discussed. The government is leading the process. We think it's quite positive. It means an improvement to us as a society. We've developed a lot in terms of LPG throughout the decades, and we are a reference to the world. But that would be very positive. So having gas being brought to those that need it the most. that would be very good for us as a society. Thank you. The next question comes from Regis Cardoso, XP. Please unmute your mic. Hello, can you all hear me well? Yes, Regis, quite good. Good morning. Thank you. Let me start by congratulating Renato Palladis for your new positions. There are two topics that I would like to address. First, increase in capital of Hidrovias, and a second one about branding. At Hidrovias, the management of Hidrovias is expecting a capital increase in the first quarter in March So we'd like to hear your perspective about it after the announcements that have been made. We believe that the capital increase would be of about 1 billion, 1 billion 250, concerning the gross up of your participation in the 500 million range. Does it make sense, the price, to be close to that of the screen price, to offer a maybe an economic incentive for minorities to join in. I'd like to understand, on your take, how much capital would it be necessary and what would be the purposes of it? CapEx, less leverage, up to a specific EBITDA net debt, EBITDA is really affected by the drought. It's a question. about the rationale and the dynamic of capital increase. My second question concerns amortization. The anticipation that you've been offering is running below amortization. What is the system behind it? Is it short-term contract? Are Branded initiatives costing less. Is it an anticipated push? Although I don't think there is any scale there between amortization and branded initiatives. These are my two topics. Thank you. Hi, Regis. Thank you very much for your question. Starting from Idrovias, we had in December one initiative but we didn't increase capital because of information asymmetry. Because of that, as we anticipated, in March, we are going to have the capital increase formally announced. The two main elements that are considered are unleash the growth of the company and reduce leverage. There is a covenants in a bond issuance of Hydrovia's, below 3.5 times prevents new investments. So that's a limitation of appropriate management and cost-capital structure in the company. So we want really to deal with those two issues, release really the opportunities for more growth and reducing costs. really the cap, the limitation, and the company is going to announce it eventually. About Ipranga, part of that is because of the postponement. We had a capex increase compared to anticipated capital in Ipranga-branded stations, and it is following volumes. there is an amortization correlated with volumes. And depending on the volume and of these different branded initiatives, there might be more or less recognition of this bonus that comes from it. Okay, thank you. Just one quick follow-up about Hydrovia's. Any concerns of consolidation? Do you want to go over 51%? Just thinking about how much more capital would come in addition to yours in terms of capital increase. And I always wondered whether the fact that this is Novo Mercado, whether it would have any implications there. I'm not sure I understood your question, Regis. We are going to support the company in whatever it takes. This is something that we've been doing and it's following exactly the idea that we've had in mind since the beginning. Thank you. The next question comes from Guilherme Martins, Goldman Sachs. Please unmute your mic. Hello. Good morning. Great results. Quick questions. First question. about this agenda against unlawful practices. A lot has been said, approval of some federal initiatives with ethanol. A player of the area said that there would be some gains from EBITDA from these measures. Any estimate that you would like to share with us? What would be gains in profitability for Ipranga with this measure? So more exposure to ethanol, And second question, Pisanato, about capital allocation. Auto part balance is light below what had been the initial plans. Pisanato has said that you do not expect something non-organic to need the capital. So does it make sense that you are going to run at about this level of 2.5 more than any other? Good morning, Guilherme. Short answer about that unlawful practice agenda is no. We are not calling it informal practice. We are calling it unlawful, right? He was using really informal, but no, it's unlawful. It's against law. If all these practices are solved, we would go to a level that we used to have in 2016 and 2017. if, as a country, we can solve these problems. Now, concerning capital allocation, I'm afraid I didn't understand your question. OTRA is running at a leverage of 1.4, and the guidance you have shared was 1.2, 1.5. With interest rate going up, do you expect to run at a higher level from now on? Yes. Closer to the bottom. Yep. Okay. Thank you. The next question comes from Gustavo Satka, Bradesco BBI. Hello. Good morning. Thank you for taking my question. I have two questions. When we analyze the results that the petrol agency reports, since the beginning of February has been showing a healthier margin. We don't know what's reseller, what is distribution, but the network as a whole seems, the whole system seems to have healthier margins. Even taking into consideration the increases of ICMS and the increased price of diesel by Petrobras. Is it something that you've been observing at the Branga and if yes, Is it something that has been levered by the three big players, or do you think it's a natural trend of the whole ecosystem after tougher times in the fourth quarter? My second question about the informal and lawful practices. The media has been publishing that, and even Ipranga stuff has been saying that the National Agency of Petrol is investigating and really inspecting further biodiesel, mass balance. Do you see any results coming out of it? Do you expect it to impact your results in the short term? And the remaining agenda, right, against the unlawful practices, such as the increase of tax solidarity in Sao Paulo, C, bio, goals, environmental crimes. What elements should we pay closer attention to in 2025? And when are we going to observe any results of that in your own production data? Concerning prices, probably you are seeing an increase in prices of petrobras and the combination that it has with tax increase. The average price is going up and as such, the gain of inventory that companies have had will be transforming to larger benefits. So these are the short-term effects. Now concerning our regulatory agenda, we can see better alignment of really the government to find these practices. The main point that we've been discussing is the combination of diesel and the combination with biodiesel. And this is something really serious in terms of tax and the government objectives in defining a required mix of biodiesel. to reduce emissions and increasing, really, the mix. Really to fight against the irregular practices that the industry normally executes. My first question was the following. Considering The increase of petrobras and tax, it seems that there is a higher margin for reseller and distribution. Have you been observing that or not? No, I said that the price effect that you've been observed comes from price increase and taxes. Okay, thank you. Thank you. Further questions will be answered later. by our Investors Relations team, Biotra. We would like now to hand it over to Mr. Rodrigo Pezzinato for his closing remarks. Mr. Pezzinato, you have the floor. Well, thank you all very much for your questions. Thank you for your attention and interest. In May, we'll see each other again for the first quarter 25. Thank you very much. Have a great day. Thank you. This call is closed now. Thank you very much, and disconnect your lines. Have a great day.