Considered one of Ultra’s five pillars of sustainability, human capital has been a core component over the Company’s 80 years of history. People management is governed by a competencies model based on an integrated view at leadership level. This model fosters development as well as stimulating the migration of employees between different areas – contributing to the dissemination of best practices – and is supported in turn by the key binomial of meritocracy and alignment of interests between leadership and employees.

Among the principal focuses of people management are alignment of internal stakeholders with the strategic orientation, guaranteeing the professional preparedness of people that make the difference, making leaders responsible for the continuous development of people and offering new opportunities of development to the employees. In 2017, more than 1,000 employees made the move between areas or business units.

People

Total employees per company ¹

1. Not including interns.
2. The Ultra Corporate Center covers all the businesses, centralizing the activities of treasury, insurance, financial control, legal, mergers and acquisitions, investment control, planning, information technology, communication, investor relations, human resources, facilities & utilities, pensions and internal audit.

Ultra employs 16,448, higher than the preceding year and in line with growth in the business. A large part of our payroll is located in the southeast region of Brazil while 689 are employed at Oxiteno’s international units.

Diversity is a theme on which the Company places great importance. In 2017, Ultragaz began a pilot project for contracting apprentices with disabilities at its head office. As part of the action plan for the Inclusion and Diversification program, the company also initiated the Affinity Groups with volunteers who identify with the selected themes for 2018: inclusion of people with disabilities and gender diversity, the focus of which is gender equality. At Ultracargo, 24% of leadership positions are held by women. This percentage rises to 61% at Extrafarma.

Turnover rate (%)

1. The number has been revised.
2. Data relates to Oxiteno Brasil.

Since 2015, the Company has been working to consolidate the Ultra Culture by disseminating values, attitudes and behavior which represent the essence of Ultra. The purpose is to encourage the creation in the teams of a bond with, and a sense of belonging to the Company. In addition to the work of alignment with the whole leadership, employee multipliers have been trained to work as catalyzers of change and for mobilizing employees across all businesses.

70

workshops in the year

for

1,800

employees from all the businesses

In 2017, the Company conducted the Ultra Culture survey to assess the impact of the actions and the perception of the leadership in relation to the development of the corporate culture. This found a significant evolution in results, fruit of the important work being undertaken both through corporate actions as well as at the businesses.

Three years ago, Ultra also unified the organizational climate survey, previously prepared individually by the business units, and designed to intensify the employee commitment to the organization and to improve performance. The latest results for 2017 pointed to a favorability ratio of 75%, 4% better than the 2015 survey. One of the highlights was employee adherence with a 91% response rate to the questionnaire.

91%

of the employees completed the organizational climate survey

75%

is Ultra’s favorability ratio

Ultra’s compensation policies and practices stimulate expansion and sustainable results, contributing to the meeting of corporate objectives. Ultra is aligned with best market practice based on meritocracy through individual recognition and standardization of management of executive compensation at the businesses.

The Company seeks to continually attract, retain and motivate highly qualified executives and staff and to promote the alignment of interests among all the organization’s stakeholders.

The total compensation of executives breaks down into fixed compensation (base salary), benefits, short-term incentives through participation in the results and long-term incentives with the share ownership plan. Variable short- and long-term compensation is linked to value growth goals, which provide an alignment of interests between executives and shareholders.

Management’s compensation policies and practices are described under item 13 of the Reference Form available from the website ( www.ultra.com.br/ri). The members of the Board of Directors and the Fiscal Council receive fixed compensation only.

Created to support the formation of a new reference in leadership, the Ultra Leadership Program (Essência Ultra) graduated 680 leaders (officers, managers and coordinators) between 2015 and 2017. The initiative contributes to leadership preparedness for executing Ultra’s strategic ambitions. It encourages critical thinking and enables leaders to harness tendencies and best practices for the organization through the search for innovative solutions. In this way, leadership is prepared for working at new levels and developing in an environment of an evolving organizational dynamic and the logic of high performance teams.

The content covered by the program is customized according to strategic guidelines and corporate competencies with six modules encompassing an integrated vision of the competitive environment, the creation of value and the relationship with different stakeholders, among other themes.

In all, Ultra invested more than 400 thousand hours in employee training in 2017. Among the initiatives, the Corporate Center ran the Learning Path, a series of workshops directed at behavioral aspects on such management themes as conflicts, collaborative negotiation and active communication. A total of 242 employees took part (up to analyst level) and each was able to choose the theme which is most aligned to his or her Individual Development Plan (PDI).

The Ultra Knowledge Portal offers online education to all Corporate Center employees for promoting professional development, both personal and collective, on matters such as the Code of Ethics, the Clean Company Law and Management of Time. In 2017, 11 new courses were launched focused on self-development. Additionally, the Corporate Center offers support for professional development by subsidizing postgraduate and MBA courses as well as vacation internships for graduate and postgraduate students from Brazilian and international universities.

Hours of training per employee

1. The number has been revised.

One of the fundamentals for ensuring that talent is attracted is to enhance the value of a career in the company. In 2017, approximately 335 participants were included in the young professionals, interns and trainees’ programs at Ultra.

Ipiranga has been running its Interns Program for more than 20 years. In addition to training, technical visits, semi-annual evaluations and monitoring by the HR area, the Program also offers opportunities for practical experience at Ipiranga. This differentiated program content is highly effective in the formation of talents and development of new managers. The program involves more than 130 interns and, in 2017, approximately 50% of participants were offered permanent positions in the company.

Oxiteno has run its Trainee Program in Brazil since 1989. The initiative is designed to attract talents that bring results and contribute to the growth of the organization. Since 2015, the company has extended the program to Mexico, including an induction period in Brazil for participants from the former country. Since the beginning of the program, 160 professionals have been hired. Of these, 29% currently occupy managerial posts.

Ultragaz’s Interns Program has a duration of 12 months with a structured calendar for providing a course of intensive learning and formation for the group. In 2017, the company admitted 25 interns, 18 of whom were eventually hired to occupy permanent posts in the company. Ultragaz also offers the Future Commercial Leaders Program, contracting five professionals during the year to work as commercial development consultants in expanding regions in the northern residential market. Lasting two years, this program prepares young professionals to take up leadership positions during the period.

In 2017, Ultracargo completed 120 selection processes at both head office and the port terminals, notably the Santos terminal where operations are being resumed. The company appointed 73% of the interns to effective positions in the company while the “On Boarding” program was revamped for new employees, to include personalized reception and a program of visits to the terminal operations area.

Among the initiatives at Extrafarma aimed at a youth audience is the Pharmaceutical Interns Program for students in their final year of pharmacy courses and who are interested in working in the retail segment. The course offers training in the functioning of stores/distribution center as well as in the characteristics of the administrative areas. At the end of the course, participants are asked to present a plan for improving the management of the store to which they were attached. Begun in 2017 as a pilot project, the first program had 10 interns, 80% of them being hired to occupy positions in the company. Currently, the business has 25 interns in five states in the north and the northeast regions of Brazil and the city of São Paulo. The Internship Program for the administrative area is now in its third year, in 2017 with 11 trainees, of which eight were offered permanent positions.

ULTRA FORMARE

The Ultra Formare program is run in partnership with the Iochpe Foundation and focuses on education and the insertion of young people in the labor market. With this in mind, Ultra offers courses for Administrative and Sales Agents, with 25 classroom hours weekly covering 14 disciplines. The course, recognized by the Ministry of Education, includes visits to Ultra’s businesses as well as an internship period in the last eight weeks.