Annual Report
Relatório Anual


We are pleased to present the report of our activities in 2016. The report focuses on the importance given to institutional transparency and best practices of communication with the Company’s stakeholders. It presents the key results reported in 2016 by Ultra and its businesses – Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma –, the main projects, its economic-financial performance and information regarding  the five sustainability pillars: Safety, the Environment, People, Products and Services and the Value Chain. These themes were defined according to corporate guidelines and are matched by all the Company’s businesses. In the light of market specificities, each one of the businesses also maintains proprietary policies reflecting their own particular socio-environmental activity.  

With the stimulus of the main tendencies for disclosing results such as the Global Reporting Initiative (GRI) methodology and the integrated reporting principles of the International Integrated Reporting Initiative (IIRC), we have sought to expand the scope of the annual report by including the socio-environmental performance indicators. The information relating to our sustainability pillars has been defined by taking into account the level of maturity of the Company in mapping and monitoring this information and its materiality to the stakeholders. All the companies report their performance to Ultra on priority items. However, it has not been possible to raise certain indicators for Extrafarma, especially those relating to environmental management. The company was incorporated by Ultra in 2013 and work is underway to standardize this information in alignment with what is already monitored by the other businesses.

We believe that, to present these details on our sustainability performance, is the first step towards bringing these different aspects of the Company together, albeit still not in full compliance with the requirements inherent to the disclosure methodologies. The underlying idea is to present a more complete vision with respect to performance and the value that Ultra creates for the stakeholders.

Five sustainability pillars:




Products and Services

Value Chain

Where to find:

The socio-environmental information is highlighted according to the respective icons throughout the publication.

Message from Management

Our management model

In one more year with a challenging macro-economic scenario in Brazil, Ultra was able to demonstrate the consistency of its management and the resilience of its businesses. As with any other company for which the principal market is Brazil, we suffered the effects of a difficult economy, especially in those businesses most closely linked to the country’s economic performance. Nevertheless, we proceeded with the implementation of our plans and actions based on our vision 2022.

The implementation of our investment strategy continued rigorously on course, despite a year of deep recession with a significant decline in GDP, household incomes and decreasing levels of employment. On the contrary, we expanded our corporate strategy for developing leaders and teams and for strengthening our organizational culture.  

Even in the face of market downturns and political uncertainty, to pursue our strategic plan and invest in our employees - always responsibly and with discipline in  capital allocation - is one of Ultra’s core characteristics. We are always alert to projects opportunities that bring future benefits and provide the foundations for accelerating our businesses when economic growth resumes.

In 2016, we examined and implemented new initiatives and projects, which will allow us to establish new growth paths, both immediate and future, for our businesses. Three important transactions were announced. In the fuels distribution segment, we signed an agreement to acquire ALESAT and in LPG distribution, Liquigás. We also set up a new lubricants business with Chevron, one of the world’s largest companies in the energy sector. These initiatives were adopted based on our business model and aligned to the strategy of each one of our businesses as well as that of Ultra.  Overall, during the year, we concluded an aggressive investment plan of approximately R$ 1.9 billion, 36% greater than 2015.

“In spite of market downturns and political uncertainties, to pursue our strategic plan and invest in our employees is a hallmark of Ultra”

Strategy at Ipiranga was focused on the opening of service stations, strengthening our reseller partners and enlarging the distribution infrastructure. We ended the year with 7,563 Ipiranga service stations, 333 more than 2015. Another aspect of Ipiranga’s strategy and manifest during the year, is differentiation through innovation and convenience. In 2016, this strategy translated into investments in 256 new am/pm franchises, 128 Jet Oil units, 163 bakeries, 138 beer caves, among other initiatives for offering greater value, practicality and quality to our resellers and clients. All these initiatives led to year-over-year growth of 2% in net revenues and 11% in EBITDA.

At Oxiteno, the year was an advance in internationalization through expansion in the United States. Developments at the new Pasadena plant in Texas evolved and construction work will continue throughout 2017. Once complete, the new unit will allow Oxiteno to compete more effectively in the key North American surfactants market. Further to executing projects with a view to future growth, there was also progress in activities relating to innovation with the addition of 66 new solutions to our portfolio. Despite a 2% increase in sales volume in 2016, the company’s net revenue was 9% lower, mainly due to the average depreciation of the US Dollar against the Real, which also depressed EBITDA by 38%.

Innovation and operational excellence were the focus of Ultragaz during the year. The company pursued actions based on its strategy of growth and improving the reseller network, increasing the competitive edge of its services based on technological support and information systems as well as the creation of new commercialization channels. On the operational front, we invested in a new filling plant in Juazeiro (Bahia) for increasing efficiency in distribution of bottled gas and services offered to the population in the region. As a result, we were successful in reaching net revenue and EBITDA 16% and 25% respectively higher than 2015.

In 2016, Ultracargo enjoyed the benefits of robust fuel handling operations at the port terminals. This market growth, combined with the partial recovery of the company in the aftermath of the Santos (São Paulo) fire in 2015, produced highly positive results with net revenues rising 13%. EBITDA rose 7%, excluding the Santos operations and the investments made in the recovery of the terminal following the fire.

We relaunched the Extrafarma brand, consolidating a new market positioning which reinforces the characteristics of trust and greater proximity in customer relationships. At store level, these characteristics translated into a new layout and increased standards of pharmaceutical retailing management, providing greater convenience and an improved shopping experience for our customers. On the back of store renewal, we are now accelerating our expansion in the North and the Northeast as well as gradually in other regions of Brazil. By year-end 2016, we had opened 71 new stores, making a total of 315 located across 10 states. The company reported an annual EBITDA 29% higher than recorded in 2015.  

All the initiatives and actions that led us to these results are aligned with our management model, which guides us and motivates us – leaders and employees – to make Ultra a company with a high performance team and an ethical business reference, financially healthy, strongly committed to society and the environment. This socio-environmental commitment is aligned with our businesses, conscious as we are of our corporate responsibility for the development of the country.

Paulo G. A. Cunha (Chairman of the Board of Directors) and
Thilo Mannhardt (Chief Executive Officer)


Ultra is a multibusiness company, a leader in the segments in which it operates and one of the largest corporate groups in Brazil. The company has a broad-based footprint, present in nearly all Brazilian states and operations in eight other countries. Its businesses have strong capillarity and are supported by Ultra’s corporate governance and financial strength, with the purpose of guaranteeing the Company's perenniality in a privileged position even under an adverse macroeconomic scenario.

About to turn 80 years of existence in 2017, Ultra has 15 thousand employees. Since 1999, the Company has been listed on the São Paulo and New York stock exchanges, with Level III ADRs. In 2011, Ultra signed up to the BM&FBOVESPA’s Novo Mercado listing regulations, the Brazilian stock market segment requiring highly differentiated corporate governance standards.


Through its five businesses, Ultra is present in nearly all the states of Brazil and in the Federal District, covering 85% of all Brazilian municipalities, in addition to eight countries.

Ipiranga, which distributes and sells fuels and lubricants, had 54 storage terminals and distribution pools and 7,563 service stations nationwide at year-end 2016.

Oxiteno, a specialties chemicals company, has six industrial units in Brazil – Mauá, Suzano and Tremembé in São Paulo, Triunfo in Rio Grande do Sul and two in Camaçari (Bahia) –, three in Mexico (Coatzacoalcos, Guadalajara and San Juan del Rio) and a further three in Uruguay, Venezuela and the United States. The company also has a presence in Argentina, Colombia, Belgium and China through commercial offices.

Ultragaz, the largest liquefied petroleum gas (LPG) distributor in Brazil, has 18 filling plants, 19 plants for product storage and distribution and a network of about 5.8 thousand independent resellers serving 11 million households in the bottled gas segment and 52 thousand industrial and residential customers in the bulk segment.

Ultracargo, a liquid bulk storage company, has operations at six Brazilian ports – Itaqui (Maranhão), Suape (Pernambuco), Aratu (Bahia), Rio de Janeiro (Rio de Janeiro), Santos (São Paulo) and Paranaguá (Paraná).  

Extrafarma, a retail pharmacy business, ended 2016 with 315 stores in 10 states, the largest concentration being in the North and the Northeast regions of Brazil.  

A nationwide footprint
% of employees by region




international employees

Market Share¹ (%)


1. There is no public indicator for market share in the case of Oxiteno since the company has no direct competitors, which produce exactly and exclusively the same products, sharing the market as it does with several companies. Qualitatively, it can be said that Oxiteno is a leader in surfactants and specialty chemicals in Latin America, offering solutions to the segments of Agrochemicals, Personal Care, Domestic and Institutional Cleaning Materials, Oil and Gas, Performance Products and Paints and Coatings.
2. Based on handling data published by ABTL (Brazilian Association of Bulk Liquids Terminals).
3. Market share in the region where it trades.

Awards and recognitions 2016

Ultra’s activities have been recognized with awards, which highlight among other aspects, the consistent creation of shareholder value combined with differentiated practices of governance and management. The principal recognitions obtained by Ultra and its businesses in 2016 are as follows:

43rd Edition of Exame magazine’s Biggest and Best Yearbook

Ultra was represented by two of its businesses, elected the best in their sectors. Ipiranga was chosen for the sixth consecutive time as the best company in the Wholesale sector while Oxiteno ranked first in the Chemicals and Petrochemicals sector. Ultragaz, which was placed fourth in the Retail sector in 2014, was third this year.

Institutional Investor magazine

Ultra was recognized for its relationship with investors in a survey conducted in August 2016. In the Latin American Oil, Gas and Petrochemicals segment, the Company was awarded first place in the categories of best CEO, best CFO, analysts’ meeting, IR Program and best IR site.

Cannes Corporate Media & TV Awards

The Company was awarded a Silver Dolphin in the Online Media category – Corporate Films, in this, the leading corporate films festival in the world. The award was for the Choices video, an initiative of Ultra’s Ethics and Compliance program (read more).

Exame Sustainability Guide

Ultra was elected a Company model in the Retail category in 2016. The publication highlighted Ipiranga’s Health on the Highway program with actions for encouraging quality of life practices for truck drivers and those living along the highways. The other businesses also received mention for several initiatives. Oxiteno was selected for its water management and Ultragaz for its itinerant movie-theater trucks, which brought 125 thousand people to the cinema in 22 states over four years.

Carbon Disclosure Program (CDP)

Ultra is recognized for its responsible environmental management by CDP, an international organization that encourages and provides a global system for companies and cities to measure, disclose, manage and share information on the environment.

16th Companies Broadcast Award

Ultra was third in the award, which is sponsored by Estado news agency jointly with Economática, the financial information provider. Seven financial indicators are analyzed to select the 10 companies, which during the year generated a positive return for their investors with superior profitability relative to the full slate of publicly listed companies in Brazil for 2015.

Highlights in 2016


annual average growth in revenues over the past five years


annual average growth of EBITDA over the past five years


annual average growth in net income over the past five years

R$ 6.8 billion

invested over five years in the businesses
Bond issue of

US$ 750 million

Financial Performance1 (R$ million)

Net revenues from sales and services53,86960,94067,73675,65577,353
Net income1,0271,2291,2511,5131,571
Dividends declared627744779871907
Earnings per share (R$)1.912.292.282.762.88
Dividends paid per share (R$)1.171.371.421.601.67
Sales volume (´000 m3)23,36424,75825,61425,72523,507
Net revenues from sales and services46,82953,38458,83065,35066,407
Productivity (EBITDA R$/m3)718289108131
Sales volume (´000 ton.)761776780725738
Net revenues from sales and services2,9293,2783,4144,0823,701
Productivity (EBITDA US$/ton.)235263240306178
Sales volume (´000 ton.)1,6811,6961,7111,6971,760
Net revenues from sales and services3,8473,9824,0914,6215,366
Productivity (EBITDA R$/ton.)146165179210254
Average storage (´000 m3)614696715655672
Net revenues from sales and services294332346316355
Number of stores223254315
Gross revenues1,1711,4171,674
Capital markets20122013201420152016
Average daily trading volume (R$ 000)455,49869,87488,577136,671132,999
Price at BM&FBOVESPA (R$/share)46.2955.9551.4560.4568.45
Price at NYSE (US$/ADR)22.2823.6519.0715.2520.74

1. The financial information presented in this document has been prepared according to International Financial Reporting Standards (IFRS) and EBITDA’s figures were prepared in accordance with ICVM 527. Ultra’s financial information corresponds to the company’s consolidated information. The financial information for Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma is reported without elimination of intercompany transactions. Except where otherwise indicated, all figures are shown in R$ million.
2. Organic investments.
3. In 2014, refer exclusively to the months from February to December.
4. Average daily trading volume presented considers the combined trading on the BM&FBOVESPA and the NYSE.

Shareholders’ equity (R$ million)

Net debt (R$ million)

Net debt/EBITDA

Trend in consolidated EBITDA and consolidated net income
(R$ million)

Dividends per share (R$)


Key Indicators


Distribution of Value

The Statement of Value Added reports the value of the wealth generated by the Company and its distribution among the stakeholders that contributed to its perfomance. In 2016, Ultra generated value added of R$ 6.4 billion, distributed as follows:

Capital markets

Daily trading volume (R$ million)

Market capitalization1 (R$ billion)

1.  Calculated on the basis of the closing share price on the last day of the year.


Accident rate requiring leave of absence from work1
(per million hours worked)

1. Rate is calculated based on the number of accidents / MHs (Calculated pursuant to NBR 14280) of employee numbers as at December 31, 2016.


Number of employees per company¹


1. No trainees were counted.


Greenhouse gas emissions

Greenhouse gas emissions (scopes 1 and 2) (tCO2e)


1. Amounts correspond to emissions from all Oxiteno’s industrial units with the exception of Pasadena (USA). In 2015, emissions from the units in Mexico, Venezuela and Uruguay were included, although prior to this only units in Brazil were reported. In 2016, Oxiteno and White Martins implemented a project for the sale and purification of CO2 generated in the production of ethylene oxide.
2. Until 2014, the indicator’s scope encompassed the Paulínia Terminal (São Paulo), deactivated in 2015. Ultracargo also posted emissions arising from the Santos fire and for this reason, amounts were significantly altered in 2015.