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

come to the earnings release call of Ultrapar to discuss the results referring to the second quarter of 2025. The presentation will be conducted by Mr. Rodrigo Pezinado, CEO of Ultrapar, and by Mr. Alexandre Palares, CFO of Ultrapar. Our question and answer session will also have Mr. Leonardo Linton, CEO of Ipranga, Cabajara Bertelli, CEO of Ultragas, and Fufius Tomelli, CEO of Ultracargo. This call is being recorded and it may be accessed in the website ri.ultra.com.br. After the presentation, we are going to start the question and answer session when further instructions will be provided. We would also like to let you know that our conference is being conducted in Portuguese and there is simultaneous translation available through interpretation. For those listening to the conference in English, you may mute the original audio just listening to the English translation. The presentation will be shown in Portuguese and the version in English is available for download from the website of the company or through the chat. Before moving on, we would like to clarify that forward-looking statements that may be made during this conference call with respect to business prospects of Ultrapar, their forecasts, operational and financial goals of the company, are all based on beliefs and assumptions of the Executive Board, as well as on currently available information. They are no guarantee of performance. They involve risks and uncertainties, since they relate to future events, and therefore depend on circumstances which may or may not occur. Investors should understand that general economic conditions, the market, and other operational factors may affect the future performance of the company and lead to results which may differ materially from those expressed in these forward-looking statements. I'd like now to hand it over to Mr. Rodrigo Pessinato, who will start the presentation. Mr. Pessinato, you have the floor.

This is a pleasure to half of 2025 and talk about our achievements and what we are building, always focused on the long-term value creation and the development and growth of our business. Among the highlights, I want to call your attention to the strong operational cash flow generation, even with 900 million reais reduction in draft discount due to the IOF tax burden, as a result of our disciplining focus on working capital management. Furthermore, we achieved record results at Hidrovias, which has been consolidated into UltraPars Financial since May, when we became the controlling shareholder after its capital increase. Still regarding Hidrovias, I also reinforce our belief in its potential for growth and value creation. The stronger results, the reduction in net debt and in the cost of debt, along with all the liability management actions executed after the capital increase, already demonstrate part of this plan. And regarding Ipiranga, we recognized R$ 677 million in extraordinary tax credits, resulting from the remaining portion of historical ICMS tax credits in the Fiscal Fins Day calculation base. We continued to experience illegalities in the fuel sector, including the increase in the irregular import of naphtha for selling as gasoline. with reduced tax burden, and non-compliance with the required biodiesel blend in diesel. On the other hand, there were advances with the implementation of the single-phase taxation of hydrated ethanol for peas and coffins in May, and the publishing of the list of companies not complying with the Renovabil program, despite the limited effect after injections that prevented the disclosure of certain companies' names. I also highlight the evolutions in São Paulo state, with the start of the Tax Solidarity Principle for resellers and distributors for state tax not collected, a milestone in Brazil's fight against tax evasion. And at Ultra Cargo, we completed the construction of Opla's railway branch and started a gradual ramp-up of operations in Palmeirante in July, as part of the company's expansion, connecting the countryside to the ports with increased exposure to the agribusiness sector. We remain firmly committed to our value proposition, supported by a robust capital structure and a constant pursuit of excellence, maintaining focus and discipline in capital and value creation. We raised R$ 1 billion at Ipiranga at an average cost equivalent to 106% of the CDI, below our current average cost of debt. In the quarter, we also concluded the buyback program of 25 million ultra-power shares, at an average cost of R$ 16.64. As previously disclosed, we will pay R$ 326 million in interim dividends, equivalent to R$ 0.30 per share in August. And now, moving to the next slide, given the recent proposal under analysis disclosed by ANP, the national oil agency, regarding changes in LPG regulation, we have also brought some information and data to better support the discussion. Brazil is a global reference in LPG market regulation. We currently have a modern regulatory framework that ensures safety for the consumer by placing accountability on distributors. At the same time, it maintains a highly competitive market, where investments in efficiency and growth are essential to profitability and differentiation. The proposal under NASDAQ by ANP to end brand respect and allow partial lpg refilling in dangers both the population of safety and investments in the bottle segment creating room for illegal activities and organized crime like in mexico over the past 10 years about 13 billion reais were invested in the construction maintenance and requalification of 133 million bottles currently in circulation in brazil and their respective filling systems Ultragaz alone invested around 3 billion reais during this period, and in grand respect, discourages investments by distributors. The gradual aging and deterioration of LPG bottles puts population at risk. On this slide, we present some pictures from Latin American countries where brand respect doesn't exist, such as Mexico and Paraguay, illustrating the severe deterioration of LPG bottles. countries that respect the brand such as chile and colombia maintain lpg bottle parks with quality similar to that in brazil we also highlight some news about explosions and accidents in countries without brain respect furthermore as i will demonstrate on the next slide this change will not bring any price benefit either The current cost of bottle exchange between distributors, due to logistical efficiency, scale and proximity between bottling facilities, is 50 cents of reais per bottle. Another critical point in this proposal concerns LPG partial filling, which increases logistical costs and the unit price of the product, while also creating challenges for inspection, operational risks and volume fraud. And moving now to the next slide, the top chart presents the breakdown of costs and profits per gas bottle from January to June 2025. As you can see, Tetrabras' price of 38 reais per bottle does not include taxes nor other supply sources like auctions, whose prices are above 38 reais per bottle, nor the primary logistics to deliver the gas to our bottling facilities. As a result, the LPG cost of Ultra Gas Bottling Facility is 60 reais per bottle. Adding the costs of filling, replacing, requalification and maintenance of bottles, as well as logistics and commercial expenses and bottle exchange costs, we reach 73 reais per bottle. I highlight once more the exchange cost of 50 cents of reais per bottle. including all of our administrative and financial expenses and income tax, we add another R$ 4 per bottle. Our total net income to operate in the bottle segment is about R$ 2 per bottle, a small unit margin of 2%, but feasible in Brazil to the scale of our market. And now in the chart below, we use public data from AAMP to show the evolution of prices and margins across the supply chain. with figures adjusted by inflation . In the first column, we break down the price into producer price, which is mainly Petrobras, taxes and distribution margin. The adjacent column, in dark blue, shows the final consumer price, which includes freight, costs and margin for 58,000 independent resellers across Brazil. And as you can also observe in the historical series, the distribution margin has remained basically stable, even partially absorbing Petrobras' cost increase in 2022. To summarize, we present the conclusions in the box in the right. Society in Brazil does not benefit from these proposals, which in fact leads to unintended consequences such as higher logistical costs and reduced safety for the population. On the other hand, these proposals create space for unlawful players, tax evaders and opportunistic companies that could enter the bottle segment without investing in bottles and filling plants. Therefore, with clarifications and discussions, this proposal should not be implemented. Thank you for your attention. I will now hand over to Alexandre, who will detail the results for the second quarter.

Thank you, Rodrigo, and good morning, everyone. Well, first, I'd like to remind you of the reporting criteria and standards used for the analysis that will be made in this presentation, which can be seen in this slide. This specific result has some particularities related to the first consolidation of Hidrovias and includes three months from the share of profit on its results, in order to eliminate the lag, and we've been carrying, as well as two months of EBITDA from May and June. Now let's move to the next slide where we will see ultra-parse results. Toda EBITDA reached R$2,07 billion, that represents a significant growth compared to last year, partially driven by the recognition of extraordinary tax credits. The recurring EBITDA for the quarter totaled R$1,468 billion, representing an increase of 15% compared to the second quarter last year. This performance mainly reflects the consolidation of Hidrovia's results and UltraGas' better results, which were partially offset by Iperanga's lower EBITDA. Considering the sum of the reported EBITDA from our business, we reached 1 billion and 541 million reais, slightly above last year's level. The struggling performance from Hidrovia's and UltraGas' offset Iperanga's results. The net income was a billion and 151 million reais in the quarter, an increase of 134% compared to the same period of previous year, reflecting the higher operating results and the recognition of extraordinary tax credit in the amount of 677 million reais. The capex for the quarter was 544 million reais. This represents an increase of 14% compared to last year, mainly reflecting the effect of consolidation of hidrovias in the amount of 64 million reais. We had an operating cash generation of 1 billion and 848 million reais, excluding the 909 million reais from the reduction of the draft discount. a growth of 73% compared to the same period of last year. This cash generation is explained by the reduction in working capital due to lower diesel and gasoline prices and the addition of R$ 138 million related to the consolidation of Hidrovia's cash generation. Moving to the next slide to discuss debt and leverage, we ended the second quarter with a net debt of R$12.635 billion, which is equivalent to 1.9 times the net debt to EBITDA for the last 12 months, compared to 1.7 times in the last quarter. This increase was due to the reduction in draft discount of R$909 million because of the IOF tax burden. excluding this effect we would maintain the same leverage level mainly due to the strong cash generation in the quarter even with the consolidation of the drove years which added 3 billion 56 million highs in the net debt and approximately 2.2 in the total average in addition to the acquisition of additional stake in the company which together totaled R$494 million. Well, moving to Ipiranga's results, the volume sold in the second quarter was 2% lower compared to the second quarter last year. In diesel, there was a 3% reduction, reflecting the irregularities in the biodiesel blend and the import parity opened during most of the quarter, which resulted in an oversupply of products in the market. The order cycle decreased 1%, impacted by the growth in irregular imports of NAFTA for sale as gasoline. We ended the period with 5,826 stations. We added 54 service stations and closed 75 to our network throughout the quarter. Regarding AMPM, we ended the quarter with 1,460 stores and revenue growth of 10% in the quarter, in the same store sales concept. Ipirenga's EBITDA reached 1,199,000,000 reais. Recurring EBITDA for the quarter was 678,000,000 reais, which is 13% down from the previous year. As I mentioned earlier, irregularities in NAFTA and biodiesel blending, the import parity opened and the inventory levels in the market impacted volume and EBITDA, which also had additional impact due to Petrobras price adjustment during the quarter. These effects were partially offset by lower personal expenses due to a smaller headcount and one-off expenses related to the office relocation that occurred in 2024. Well, for the third quarter, we expect seasonal stronger volumes. We started the period with a closing import parity scenario and a trend towards normalization of inventories in the industry, which contributes to profitability above the observed in the first half of 2025. Moving to Targas, The volume of LPG sold in the quarter was 1% lower than the second quarter of 2024, with a 2% decrease in bottle segment, reflecting the competitive dynamics of the market, affected by the pass-through of increased costs of Petrobras auctions. Bulk volume remained stable. Ultradaz recurring at Just Rebida was R$442 million in the quarter, 11% higher than the registered in the same period of 2024. These results reflect the better sales mix, greater efficiency in the bulk segment and greater results from new energies, partially offset by lower rewards in the bottle segment and higher expenses. For this third quarter, we expect seasonal stronger volumes and recurring EBITDA slightly above the third quarter of last year, enhanced by the performance of new energy. Going to UltraCargo, the installed capacity remained at 1,067,000 cubic meters in the period. We note that the cubic meters sold decreased 14% year-over-year, reflecting the lower demand for storage in fusing ports, affected by industry inventory handling reduction, with lower handling in Santos and Itaqui. Net revenue totaled R$ 247 million in the quarter, a reduction of 6% compared to the same quarter in 2024, reflecting volume's effects, partially offset by a better handling mix. Ultracardos EBITDA totaled R$141 million in the quarter, which is 15% lower than the same period last year, and mainly explained by lower cut meters sold and initial costs and expenses with the expansion of Opla and the new terminal in Palmeirantes. For this third quarter, we expect EBITDA in line with that observed in the second quarter. well finally moving to hidrovias and to explain and compare the results we are considering the entire quarter of hidrovias that is the same number already released by the company the total volume in the quarter was 10 percent higher compared to the same quarter last year the south corridor stands out driven by better navigation conditions aligned with the improved rainfall patterns and increase our rambling as well as volume growth in the north corridor Recurring adjusted EBITDA totaled R$348 million in the period, which is a 39% increase compared to the second quarter last year. These results reflect improved navigability conditions, higher volumes and tariff adjustments in the north corridor. These effects were partially offset by lower results from Cabotage and Santos operations. consolidated in UltraPAR's quarterly results totaled R$276 million. Of this amount, R$234 million refers to Hidrovia's EBITDA for May and June, following the consolidation of control, and the remaining R$42 million refers to the share of profit after the pre-consolidation period. For the third quarter, as disclosed by interviews, we expect a continued strong results, a significant increase in recurring EBITDA compared to the third quarter last year. Well, with that, I conclude the presentation and would like to thank you all for the participation. Let's move to the Q&A session. But before we start, just to contribute to the dynamics of this moment, I would like to reinforce that questions related to Hidrovias will be answered from the perspective of the controlling shareholders. Any other operational details should be directed to the Hidrovias IR team. Thank you.