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

Good morning. Thank you for holding. Welcome to the earnings release call of Ultrapar to discuss the results referring to the fourth quarter 2025. The presentation will be conducted by Mr. Rodrigo Bezzinato, CEO of Ultrapar. and by Mr. Alexandre Palhares, CFO of Ultrapar. Our question and answer session will follow, and we will have with us Mr. Leonardo Linden, CEO of Ipranga, Mr. Tabajaro Bertella, CEO of Ultragas, and Mr. Fulvio Stomelin, CEO of Ultracaga. This call is being recorded and may be accessed through the website ri.ultra.com.br. After the presentation, we are going to start the question and answer session where further instructions will be provided to you. We'd also like to let you know that our conference will be delivered in Portuguese, and there is an option of simultaneous translation by clicking Simultaneous Interpretation. For those listening in English, you can mute the original audio by clicking on the option Mute Original Audio. Presentation will be provided in Portuguese and you have the option in English to be downloaded later. 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, forecasts, and operation and financial goals of the company are all based on beliefs and assumptions of the Executive Board of Oltra, as well as currently available information. These beliefs and assumptions 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, 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 forward-looking statements. I would like now to hand it over to Mr. Rodrigo Pissinato, who will start the presentation. Mr. Pissinato, you have the floor.

Good morning, everyone. It is a pleasure to be here once again to share Ultrapar's results. 2025 was another year marked by significant growth at Ultrapar. Clear strategy and disciplined execution are the base for the continuation of good operating results. We ended the year with the highest recurring adjusted EBITDA ever recorded in a fourth quarter. This improvement was directly reflected in cash. Ultrapar had a record operational cash flow generation of 5 billion and 500 million reais. This allowed us to end the year with a leverage of 1.7 times, even after the anticipated payment of 1.1 billion reais in dividends in December. Without this effect, leverage would have been of 1.5 times, a very comfortable level. Considering the anticipated payment and the regular dividends, we paid 1.4 billion reais in dividends in 2025, equivalent to one real and 30 cents per share, and a dividend yield of 7%. I also highlight important progress on the institutional agenda, such as the approval of the persistent debtor and the single-phase taxation for NAPTA, which strengthened fair competition and regulatory certainty, and the Gas do Povo Provisional Act, which reinforced safety and regulatory framework of the LPG sector. We continue to advance our growth, productivity and value creation agenda with the completion of expansion of the Rondonópolis base of Ultracargo and the acquisition of a 37.5% stake in VirtuGNL, both in January. In February, we completed the migration of Ultracargo's SAP system to the SAP for HANA platform, a significant step towards increasing our operational efficiency. We also announced our investment plan for 2026, which can reach R$ 2.6 billion, intended for the expansion, maintenance, safety and efficiency of our business. And we continue to strengthen our capital structure with raising about R$ 260 million in incentivized credit lines for expansion projects, at a weighted average cost equivalent to 87% CDI. We entered 2026 with a global scenario marked by geopolitical tensions and economic volatility. We are prepared to face this context and seize opportunities, with an engaged team, strengthened business and a constant focus on operational efficiency, financial discipline, innovation and sustainable growth. Thus, we continue our journey of value creation. Thank you for your attention. I will now hand over to Palhares, who will detail the results for the quarter and the year 2025. Thank you.

Good morning, everyone. I would like to remind you of the reporting criteria and standards used in this presentation, which can be seen on this slide 3. Now, let's move on to the results for the fourth quarter and the year 2025, starting with ULTRAPAR's consolidated results on slide 4. AJZ EBITDA amounted to 1.6 billion reais in the quarter, a 34% decrease compared to the same period of last year. due to the non-recurring effects highlighted on page 2 of the release that we disclosed yesterday. For the year, adjusted EBITDA reached 6.8 billion reais, a 2% increase compared to 2024. Recurring EBITDA was 1.7 billion reais in the quarter, a 36% increase compared to the fourth quarter of 2024. mainly reflecting the better performance of Ipiranga and Ultragas, in addition to the effect of the consolidation of Hidrovias. For the year, recurring EBITDA totaled 6.2 billion reais, 15% above 2024, reflecting the results of Ipiranga, Ultragas and Hidrovias, whose consolidation began in May. net income for the fourth quarter was 256 million reais or 71 percent decrease compared to the same period of 2024 also impacted by the non-recurring effects that i mentioned Without these effects, net income would have been 439 million reais, a 49% increase in the quarter. In 2025, net income was stable at 2.5 billion reais, reflecting the record operating result, partially offset by the increase in depreciation and amortization and higher financial expenses resulting from the consolidation of Hidrovias. This result level allowed the distribution of R$ 1.4 billion in dividends in the year, considering the anticipated payment of R$ 1.1 billion made in December. moving on to the next slide let's talk about the cash generation for the year on the left operating cash generation reached 5.5 billion ultra parts historical record this result was mainly due to three factors higher operating result consolidation of hidrovias which contribute 855 million reais and lower working capital needs especially at ipiranga partially offset by the effect of settlement of draft discount for suppliers in the amount of 1 billion highs Regarding capex, we reached 2.5 billion reais, a 15% increase compared to 2024. This is explained by higher investments of Ipiranga, in addition to the effects of the consolidation of hidrovias of 235 million reais, which was not included in the initial plan. And at the same time, we had lower investments at Ultracargo. Looking more closely at the capital allocation, we completed some transactions. Mainly, the capital increase and the increase of our stake in Hydrovias, which totaled R$ 693 million, acquisition of TRRs in the total amount of R$ 103 million, and Virtos transaction in the amount of 36 million reais in the year. Throughout the year, the sale of the coastal navigation operation by Hidroviaz in the total amount of 715 million reais was also completed. In addition, we completed Ultrapar's buyback share program and made a relevant distribution of dividends. Moving to the next slide, talking about debt and leverage, we ended 2025 with net debt of 12.1 billion reais, an increase compared to September, but still keeping leverage steady at 1.7 times, exactly the same level as the previous quarter. This possible stability is explained by the record operating cash generation, which offset the anticipated payment of dividends in December. Excluding the effect of the anticipated payment of dividends, leverage would have ended the year at 1.5 times. The increase in net debt when comparing year-end 2025 to year-end 2024 mainly reflects the consolidation of Hidrovias, with an impact of 2.2 billion reais. It is also worth highlighting the additional effect resulting from the reduction of 1 billion reais in draft discount over the period, as shown at the bottom of the table. Now, let's move to the results of Ipiranga on slide 7. In the quarter, Ipiranga's volume grew 7% compared to 2024, with an increase of 8% in the auto cycle and of 6% in diesel, with a higher share in the spot market. This is due to the beginning of the market recovery after intensification of measures to combat irregularities in the sector. For the year, sales volume grew 1% with an increase of 2% in the auto cycle and of 1% in diesel. We ended 2025 with a network of 5,805 service stations, resulting from 271 stations opened and 326 closed. Ipiranga's adjusted EBITDA totaled 1.2 billion reais in the fourth quarter, 37% lower when compared to last year, due to the recognition of nearly 1 billion reais in extraordinary credits in the fourth quarter of 2024. Recurring adjusted EBITDA reached 1.1 billion reais in the quarter, a 26% increase compared to 2024. This performance mainly reflects higher sales volume and better margins. partially offset by higher expenses. For the year, adjusted EBITDA totaled R$ 4.3 billion, and recurring EBITDA totaled R$ 3.5 billion, a 4% increase compared to 2024. operating cash generation was once again a highlight and reached 4.3 billion reais, an increase of 41% in the annual comparison. This result reflects efficient working capital management and operational discipline. The first quarter began with the import arbitrage window open. which led to greater product availability. That window closes at the end of February, and with the Middle East conflict, import parity turned much less favorable. In this context, we expect continued growth in volumes and margins. Moving to ultragases results on the next slide. The volume of LPG sold in the fourth quarter was 2% lower than the same period of 2024, with a 5% decrease in the bulk segment. mainly due to the lower demand in the industry segment and with stability in the bottled segment. In 2025, the volume sold was also 2% lower than in 2024, with a decrease of 4% in the bulk segment and of 1% in the bottled segment. This performance is explained by the competitive dynamics of the market, impacted by the pace of pass-through of increased costs of Petrobras auctions throughout the year. in addition to lower business demand, mainly in the industry segment. Recurring EBITDA reached 474 million reais in the quarter, a 7% increase compared to the previous year. The result reflects the pass-through of cost inflation and a favorable sales mix and, on the other hand, the lower volume of LPG sold. For the year, adjusted EBITDA totaled 1.8 billion reais, 5% increase compared to 2024. This performance reflects the effects of the pass-through of cost inflation, a more favorable sales mix, and the contribution from new energies, which offset a lower LPG volume and higher costs and expenses. For first quarter 26, we see continuity of good results and an EBITDA similar to that observed in first quarter 25. On the next slide, we move to UltraCargo's results. the average installed capacity reached 1,131,000 cubic meters in the quarter. a six percent increase compared to the fourth quarter of 2024 resulting from the additions of capacity in palmerente randonopolis and santos for the year the average installed capacity was one million and ninety thousand cubic meters the cubic meter sold was five percent lower in the quarter and nine percent lower in the year compared to two thousand twenty four This decrease is mainly due to the lower demand from our customers for tanking services related to fuel imports, an effect partially offset by the increase in handling in UPLA. Net revenue totaled R$ 261 million in the quarter, an 8% decrease compared to the previous year, reflecting the cubic meters sold and less favorable sales mix. For the year, net revenue amounted to R$ 1.021 billion, a 5% decrease explained by the lower cubic meters sold, partially offset by higher tariffs in the period. Adjusted EBITDA was R$ 144 million in the quarter, a 15% decrease compared to the fourth quarter of 2024. this performance mainly reflected the lower cub meters sold and higher costs with operations still in the ramp-up phase partially offset by lower expenses in 2025 adjusted ebita was 585 million reais a 12 drop compared to 2024. This result reflects lower cubic meter volume and higher costs associated with new operations, which are still in their ramp-up phase, partly offset by higher tariffs and lower expenses. We continued to see a gradual recovery in demand from customers of terminals at the beginning of the year, challenged by the closing import arbitrage window since mid-February. I also remind you of the negative initial effects of the ramp-up of some expansions. In this context, we expect first quarter volume and recurring EBITDA to be higher than in the last quarter of 2025. Now, let's move to Hidrovia's results. The total volume handled increased by 65% in the quarter compared to 2024, reflecting better navigation conditions in the north and south in addition to operational improvements. For the year, the volume handled increased by 22%, reflecting these same more favorable navigation conditions. operational improvements throughout the year and higher volume in Santos, with the beginning and consolidation of the salt operation. Recurring EBITDA amounted to 160 million reais in the quarter, reverting the negative result recorded in the same period last year, highlighting the positive effects of better navigation conditions and operational improvements. for the year recurring ebitda totaled 1.1 billion reais a 95 increase compared to 2024. these advance mainly reflects better navigability in the region served operational improvements and better average tariffs i remind you that in november we completed the sale of the cabotage operation which contributed to the results of one q25 Looking now at the first quarter, we have seen greater challenges in receiving cargo from the north operation, navigability conditions closer to normal levels in the south, although with some restrictions on iron ore loading. As a result, we expect results to be lower than those of the first quarter of last year. Finally, to conclude the presentation, we will look at the composition of investments made in 2025. We invested 2.5 billion reais in the year, about half allocated to business expansion and the other half to maintenance and other investments. The total was in line with the announced plan, even considering 235 million reais in investments at Hidrovias, which were not included in the original plan. Excluding this effect, investments would be 9% below the plan. We announced the 2026 investment plan of up to 2.6 billion reais. Of this total, approximately 42% will be allocated to expansion and the remaining to maintenance and business efficiency and safety initiatives. The highlights are in this presentation and in the market announcement. Well, with that, I conclude my part. Thank you all for the participation. Let's move to the Q&A session. To ensure a better dynamics of this moment, I would like to reinforce that questions related to Hedrovias will be answered from the perspective of UltraPARC as the controlling shareholder. For specific operational details, the appropriate channel is Hedrovias' IR team. Thank you.