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

Thank you for waiting. Welcome to the earnings release call of Ultrapar to present the results referring to the third quarter 25. Our presentation will be conducted by Mr. Rodrigo Pessinasso, CEO of Ultrapar, and by Alexandre Palares, CFO of Ultrapar. The Q&A session that will follow will also have Mr. Leonard Linden, CEO of Ipranga, Mr. Tabajara Bertale, CEO of UltraGas, and Mr. Fulvio Stommelin, CEO of UltraCargo. This call is being recorded and will be accessed later through the website ri.ultra.com.br. After the initial presentation, we are going to start the Q&A session, where further instructions will be provided. We'd also like to tell you that the conference has been conducted in Portuguese and there is an option for simultaneous translation by clicking Interpretation. For those listening to the earnings release call in English, there is the option of muting original audio. The presentation will be shown in Portuguese, and there is a version in English to be downloaded through the company's website and through the chat. Before proceeding, we would like to mention that forward-looking segments made during this call refer to business perspectives of Ultrapar. and operating and financial goals are based on beliefs and assumptions of the company management and on information currently available. Forward-booking statements are no guarantee of performance. They involve risks and uncertainties because they refer to future events and therefore depend on circumstances that may or may not occur. investors should understand that general economic conditions, industry conditions, and other operating factors can also cause results to differ materially from those expressed in such forward-looking statements. I would like now to hand the conference over to Mr. Rodrigo Pecenato, who will start with the presentation. Mr. Pecenato, you have the floor.

Good morning, everyone. During this quarter, we recognized R$238 million in extraordinary tax credits at Ipiranga.

resulting from the remaining portion of historical ICMS tax credits included in the Peace Coffins calculation basis. Furthermore, we made significant progress in the fight against illegal practices in the fuel sector. We have been following with optimism the work carried out by the authorities in recent months, especially the Carbono Oculto operation at the end of August. It represents a historic milestone in this fight. reinforcing the need for stricter legislation to fight crime and illegalities in the sector. We continue to support authorities and regulatory bodies in fighting crime, strengthening market integrity and ensuring fair competition. Another highlight of the quarter was the rapid reduction in leverage. After assuming control of Hidrovias and starting to consolidate its results in the second quarter, leverage stood at 1.9 times. With the strong cash generation in this quarter and UltraPAR's EBITDA growth, we reduced leverage to 1.7 times, even after paying 326 million reais in dividends in August. We also continue to advance our growth and strategic positioning agenda. In October, we completed the expansion of the UltraCargo's terminal in Santos, adding 34,000 cubic meters of storage capacity. On November 1st, we completed the sale of Hidrovia's cabotage operation for 750 million reais, which will enable Hidrovia to focus on more synergistic and complementary businesses, while strengthening its financial position. We announced the signing of an agreement to acquire a 37.5% stake in Virto, which operates in the LNG logistics, for 102 million reais. This transaction is aligned with our strategy to invest in sectors where Ultrapar can contribute to value creation with high growth and profitability potential. We also received CAD's approval for the LPG terminal in Pessém for UltraGas in partnership with SuperGasbras. This project reinforces our commitment to safety and efficiency in LPG supply in the North East and North regions of Brazil. Finally, for those who were unable to attend Ultraday 2025, held in September for the first time at Ultrapar's headquarters, please note that the presentation is available on our investor relations website. I will now turn the call over to our CFO, who will walk you through the quarterly results. Thank you. Thank you, Rodrigo. Good morning, everyone. Before starting, I would like to remind you of the reporting criteria and standards used in this presentation. Now, let's move on to the results. UltraPAR's adjusted EBITDA was R$ 1.9 billion, including the recognition of R$ 185 million in extraordinary tax credits at Ipiranga, representing a 27% increase year-over-year. Recurring adjusted EBITDA totaled R$1.8 billion, an 18% increase compared to the third quarter of last year, driven by Hidrovia's record performance. Ultragas also reported higher EBITDA, which, together with Hidrovia's, partially offset the lower results from Iperanga and Ultracargo. Net income for the quarter reached 772 million reais, a 11% increase year over year, mainly driven by the higher operating result and the recognition of tax credits already mentioned, which were offset by higher financial expenses and higher depreciation and amortization, mainly due to the consolidation of hidrovias. capex totaled 756 million reais 46 higher compared to the same period last year highlighting the consolidation of investments in hidrovias and increased investments in ipiranga especially for the expansion and maintenance of the service station and franchise network in addition to investments in the evolution of the technological platform with the replacement of the erp system the operating cash generation was 2.1 billion reais, almost three times the cash generated in the same period last year, even with 258 million reais for the settlement of the draft discount. This reflects a better operating result, the consolidation of Hidrovias and lower working capital investment at Ipiranga and Ultragas. And now, moving to the next slide. We ended the quarter with R$ 12 billion in net debt and a leverage of 1.7 times compared to 1.9 times last quarter. This improvement reflects the strong cash generation during the period, which more than offset the payment of R$ 326 million in dividends in August, in addition to the impact of R$ 258 million from the settlement of the draft discount as I mentioned earlier. Now, moving to Ipiranga's results. The volume sold in the third quarter was 1% higher compared to last year, due to the increase in the auto cycle, mainly in gasoline. It is worth noting that we observed the market recovery following the Carbono Occulto operation, which has been tackling irregular companies in this sector. We ended the period with 5,812 substations. We added 70 new substations and closed 84 to our network throughout the quarter. Ipiranga's EBITDA totaled R$ 1,085,000,000, 12% higher than the same period last year, reflecting the recognition of extraordinary tax credits of R$ 185,000,000. recurring EBITDA totaled R$ 892 million in the quarter, a 5% lower compared to the third quarter of 2024. This result reflects a more challenging scenario given the irregularities in the sector, mainly due to the high level of NAFTA imports for irregular sale as gasoline and inventory gains in the third quarter of 2024. These effects were partially offset by higher sales volume and lower expenses during the period, with lower allowance for expected credit losses, marketing and personnel expenses due to a smaller headcount. As a highlight, we also had cash generation More than twice the 723 million in the third quarter of 2024. This performance reflects working capital management, strengthening value creation for Ipiranga. For the fourth quarter, we expect a continued market recovery with volume growth and profitability similar to that observed in the third quarter. Now, moving to UltraGas. The volume of LPG sold in the third quarter was 6% lower than in the same period in 2024, with a 3% decrease in the bottled segment and an 11% decrease in the bulk segment, reflecting the competitive dynamics of the market, which continued to be impacted by the pass-through of increased costs of Petrobras auctions. Furthermore, we are seeing down, with lower demand in the volume sold to industries. Recurring adjusted EBITDA totaled R$ 463 million, a 3% increase compared to the same period in 2024, mainly due to pass-through of inflation and positive contribution from new energies despite lower LPG sales volumes. The fourth quarter is seasonally weaker. We see a gradual recovery in volume and bulk segment is below last year's levels. We also expect EBITDA to be higher than that observed in the third quarter. Now, moving to Ultra-Cargo. The average installed capacity reached 1,097,000 cubic meters in the quarter, a 3% year-over-year increase resulting from the addition of 23,000 cubic meters of capacity in Palmeirante and 7,000 cubic meters in Rondonópolis. The cubic meter sold was 12% lower year-over-year, totaling 3,845,000 cubic meters. This decrease reflects the lower demand from our customers for tanking services related to fuel imports, which resulted in a lower handling in Santos, Itaqui and Suape. This impact is partially offset by the higher volume of handling in Opla. As a result, net revenue totaled R$ 243 million in the quarter, a 9% decrease compared to the same period last year, reflecting the lower volume even with better tariffs. Ultra Cargo's adjusted EBITDA totaled 134 million reais, 20% below the third quarter of 2024, impacted by lower volumes and higher pre-operational and initial costs at Pomerantsev, which is still in its ramp-up phase, partially offset by better tariffs. For the fourth quarter, we see a recovery in demand from our customers and the effects of the expansion. As a result, we expect a recovery in EBITDA compared to the third quarter, finally going to hidrovias. The volume handled in the quarter grew by 30% when compared to the same period last year, driven by the normalization of navigation in the south corridor, which allowed higher handling of iron ore. Adjusted EBITDA reached R$ 332 million compared to R$ 169 million in the same period last year. Recording EBITDA reached R$ 361 million, more than twice the R$ 169 million recorded in the third quarter of 2024. This record performance mainly reflects better navigation conditions in the South Corridor, as I mentioned earlier, and a better sales mix. On November 4, the cabotage sale was completed, which will affect the result of the fourth quarter and reduce the company's debt. It is important to note that there is also the seasonality of the fourth quarter, which significantly affects navigability in the corridors. We expect an EBITDA similar to the fourth quarter of 2022. With that, I conclude my presentation. Thank you all for the participation. Let's move to the Q&A session. To contribute to the dynamics of this moment, I reinforce that questions related to hidrovias will be answered from the perspective of the controlling shareholders. Other operational details should be directed to the Hidrovia's IR team.