ULTRAPAR 2015 ANNUAL REPORT

EN PT

Results and outlook

Investments

R$ 1.4 bi

were invested by Ultrapar in 2015

R$ 1.8 bi

will be invested in 2016

In 2015, Ultrapar continued with an investment strategy focused on the continuing growth of scale economy and competitiveness, better serving an increasing number of customers.

Investments, net of disposals, totaled R$ 1,352 million in organic investments.

Below, the distribution and the main purpose of investments in each business unit.

  • Ipiranga – R$ 872 million (expansion and maintenance of its service station network and franchises, expanding its logistics infrastructure through the construction and expansion of logistics facilities and modernization in logistics facilities)
  • Oxiteno – R$ 131 million (maintenance and modernization of its production units)
  • Ultragaz – R$ 220 million (new clients in the bulk segment, replacement of bottles and maintenance of its bottling facilities)
  • Ultracargo – R$ 24 million (modernization and maintenance of its terminal)
  • Extrafarma – R$ 81 million (opening of new drugstores, maintenance of the existing ones and IT retail-facing projects)
Ultra’s investment plan for 2016 amounts to R$ 1,809 million, which demonstrates the continuity of good opportunities to grow through increased scale and productivity gains, as well as modernization of existing operations.

On the total, R$ 887 million will be invested in Ipiranga. The plan includes investment of R$ 354 million to maintain the pace of expansion of its distribution network (through the conversion of unbranded service stations and the opening of new service stations) and of am/pm and Jet Oil franchises, focused on the Midwest, Northeast and North regions of Brazil, and in new distribution centers to serve convenience stores, R$ 112 million in the expansion of its logistics infrastructure to support its growth, mainly through the construction and expansion of operating facilities, and R$ 421 million in the maintenance and modernization of its operations, mainly in the renewal of contracts of its distribution network, renovation of service stations, and information systems to support its operations.

The investment approved for Oxiteno amounts to R$ 460 million in 2016. Such amount includes US$ 65 million to build a new ethoxylation unit in its site in Texas (EUA), as announced in November 2015, which shall be completed by the end of 2017. This new unit will have a production capacity of 170 thousand tons per year in its final stage. The remaining amount will be directed towards modernization and maintenance of its units aiming at greater productivity, and information systems.

At Ultragaz, the investments of R$ 208 million will be focused mainly on capturing new customers in bottled and bulk segments, on the replacement and purchase of bottles, on the expansion and maintenance of bottling bases, and IT with focus on systems to support its operations.

Ultracargo will invest R$ 118 million mainly (i) in the modernization of terminal safety systems, (ii) in the expansion of the Itaqui terminal, which shall start operating in 2017, and (iii) in the adjustment and maintenance of the infrastructure of its existing terminals.

At Extrafarma, we will invest R$ 124 million, mainly in the opening of new drugstores and in the maintenance of its activities.

Organic investment plan

(R$ million)

2016

Ipiranga

887

Oxiteno

460

Ultragaz

208

Extrafarma

124

Ultracargo

118

Outros

12

TOTAL

1,809