2,864

employees

Ipiranga operates in the distribution and sale of fuels and lubricants, with a wide service stations network across Brazil. The service stations, as well as the am/pm stores and other services offered, are run by resellers and accredited franchisees. Beyond contributing to the supply of fuel in Brazil, Ipiranga offers convenience in urban areas or on the highways with complete services to the users and their vehicles.

Growth in the fuel market volumes is influenced by some key drivers. The expansion of fuel sales for light vehicles (Otto cycle) is determined by the growth of the vehicle fleet – the past two years have shown an average annual growth of 5%, despite the recent reduction in licensing of new vehicles -, combined with unemployment levels and household income. In turn, diesel volume is influenced by the overall performance of the economy.

Consistent with the network expansion strategy in the Midwestern, Northeastern and Northern markets, Ipiranga added another 125 service stations in 2015 throughout these regions, contributing to the total network reaching 7,230 service stations in the country as of the end of the year.

SALES VOLUME ’000 m³

NET REVENUES R$ million

EBITDA R$ million

Ipiranga's Service Stations

One of the highlights of Ipiranga’s differentiation strategy is am/pm, the largest network of convenience stores in the country, which grew 12% over the year and ended 2015 with 1,910 points of sale, expanding the offer of products, services and convenience in Ipiranga’s service stations. As a recent example of this, two new configurations of am/pm stores were launched in São Paulo: (i) an expanded concept of convenience comparable to small neighborhood supermarkets for urban service stations, with supply of fresh products - like fruits, vegetables, meats, flowers and a wider range of fast meals and (ii) the am/pm Estação, directed for road service stations - which offers, in the same place, a number of very useful products and services for travelers, such as Wi-Fi, mobile recharge and internal rest lounge, fundamental items for the well-being of its customers. The new concept offers also wide and comfortable bathrooms, especially for families, an area for children and a diverse supply of meals, in addition to a bakery with cafeteria. Other initiatives aimed at differentiation have been adopted in recent years, with proven success. The bakeries inside am/pm stores are a strong element in nurturing loyalty and expanding profitability. The network of bakeries has already become the largest in Brazil, with 521 units.

Another recent concept in the differentiation strategy is the Beer Caves, which offer different beers in a refrigerated container that keeps the temperature below conventional refrigerators for the consumer and contributes to the loyalty of high standards customer, reinforcing the sales strategy of am/pm stores.

Since February 2014, 237 Beer Caves have been implemented at Ipiranga service stations in 19 Brazilian states.

The operation of the am/pm Suprimentos (am/pm Supply) was also expanded in 2015. In addition to the distribution center in Rio de Janeiro, which started operations in 2014, three new DCs were created in the states of São Paulo, Paraná and Rio Grande do Sul. am/pm Suprimentos (am/pm Supply) guarantees the supply of am/pm stores with a complete mix, centralized delivery, further facilitating the management of franchises. The Jet Oil and Jet Oil Motos networks also make up a part of Ipiranga’s differentiation strategy. Jet Oil is a franchise specialized in oil change. Jet Oil ended 2015 with 1,215 units, while Jet Oil Motos, which offers the same service with a focus on motorcycles, ended the year with 251 units. Ipiranga began offering new technologies for payments, customer identification and live customer service transmission. The changes comprehended a new visual programming and the training program for VIP (Vendedor Ipiranga de Pista) – as Ipiranga service station attendants are known.

Km de Vantagens, Ipiranga’s loyalty program, reached 21 million loyal customers in 2015, consolidating its position as the country’s largest program of its kind.

ConectCar, an electronic payment service for tolls and parking lots, offering discounts on fuel at Ipiranga service stations, gained new momentum in 2015 with the entry of a new strategic partner: Rede, of Itaú Unibanco. The new partner added the possibility of exploring new models and distribution channels. In 2015, the service had approximately 660,000 tags, an increase of 70% over the previous year. ConectCar already operates in 15 Brazilian states, being present in 98% of all toll roads in the country and more than 170 parking lots, including shopping malls and airports. In addition to opening gates at toll points and parking lots, the tag can be used at authorized service stations for discounts on fueling, oil changes at Jet Oil and am/pm stores.

Logistics Distribution Infrastructure

1,910

am/pm stores
(the largest convenience store chain in Brazil)

New am/pm model in São Paulo-SP