Strategy and
Outlook
A multi-business
vision
With a strong presence in key sectors and scale and resilience as factors of market differentiation, Ultra propagates its strategy and priorities through Vision 2022. The plan incorporates a multi-business focus for all the companies in the group to maximize the possibilities for synergies and enhanced creation of value. The integration of the culture, the reinforcement of the Ultra identity and a multidisciplinary vision provide the foundations for reaching the established objectives.
Priorities
The principal strategic objectives of each business
Ipiranga
- Differentiation through diversification of products and services in addition to innovation and the use of technology
- Expanding convenience with the launch of new products and services at the am/pm stores
- Consolidate the one-stop shop concept, offering solutions for the daily requirements of the clients and consumers
- Expand the service station and franchise network and intensify the presence in key markets with a strategy of branding white flag service stations and the rollout of new service stations
- Strengthen the presence in the digital media, increasingly customizing communication and permitting access from anywhere and at any time
- Generate still more value for corporate clients with differentiated solutions according to the objectives of each company profile
Oxiteno
- Strengthen the international footprint through expansion in the United States
- Defend leadership in Latin America
- Differentiation through innovation with important investment in research and development
- Expand market share in the specialty chemical segment, strengthening the company’s position in Agrochemicals, Personal Care and Domestic and Institutional Cleaning Materials, Oil and Gas and Paints and Coatings with a focus on co-creation and customized solutions
Ultragaz
- Increase its share in the bulk market, focusing on small and medium-size businesses
- Expand business in the North and the Northeast of Brazil
- Promote new uses of LPG
- Generate differentiation through services with the support of digital technology
Ultracargo
- Maximize opportunities in liquid bulk distribution, especially in relation to fuels
- Expand the presence in the principal ports of the country and increase scale
- Expand into new geographies
Extrafarma
- Accelerate expansion of the store network
- Expand leadership in the North and the Northeast of Brazil
- Promote a differentiated shopping experience with a better mix of products, excellence in service and management of costs
BUSINESS MODEL
WHY Our objective
WHAT Our guidelines
HOW Our values
HOW Our pillars
WHO Our competencies
Investment plan
Ultra’s investment plan for 2018 totals R$ 2. 7 billion, an indication of the continued good opportunities for organic growth and productivity gains as well as the modernization of existing operations. With the execution of the plan, the Company will be able to improve client service, increase logistics efficiency, develop new forms of selling and expand its relationship with resellers and partners.
Investment volume is greater than the R$ 2.3 billion invested in 2016, synonymous with Ultra’s confidence in the expansion of the Brazilian economy and in the preparation of the Company for a new growth cycle.
In 2018, will be invested:R$ 2,7 billion
Ipiranga
R$ 1.5 billion
Oxiteno
R$ 343 million
Ultragaz
R$ 284 million
Ultracargo
R$ 247 million
Extrafarma
R$ 232 million
At Ipiranga, R$ 1.5 billion will be invested in ramping up the rate of opening of new service stations and am/pm and Jet Oil franchises, thus increasing the number of resellers and franchisees, as well as for identifying new clients in the corporate segment. Half the investment will be allocated to expanding logistical infrastructure and improving productivity to support network growth. Investments will also go to the maintenance and modernization of activities, largely for supporting its operations.
The investment approved for Oxiteno will be principally allocated to the modernization and maintenance of existing units for increasing productivity and improving information systems. A total of US$ 34 million will be invested in the new ethoxylation Pasadena, Texas plant, conclusion of which is scheduled for the first half of 2018.
Planned investments at Ultragaz contemplate R$ 190 million in maintenance and modernization of the operations with a focus on new technological systems for supporting the growth and quality of its operations. A further R$ 94 million will go to the expansion of the resellers network and bulk clients. The total investment plan amounts to R$ 284 million.
Ultracargo is to invest R$ 113 million in the expansion of the Itaqui (MA) and Suape (PE) port terminals with completion expected for 2019 and 2020 respectively, and in the continuous improvement of safety and infrastructure at the terminals. Total investment will amount to R$ 247 million.
The investment plan at Extrafarma prioritizes both the opening of stores and associated logistical infrastructure, concentrated in the north and northeast of Brazil and in the state of São Paulo and also information technology. Total investments in the business will amount to R$ 232 million.
Sustainability model
Ultra views sustainability as core to its businesses. In the daily activities of the Company this is epitomized through a culture which values the transparency of information, financial soundness, ethics in business and citizenship. Employees are encouraged to practice voluntary activities and receive training in socio-environmental aspects. In addition, there are different operating excellence programs adapted to the products and services of the businesses.
The Ultra Sustainability Model is based on five pillars – Security, the Environment, People, Products and Services and Value Chain – incorporating 28 performance and management indicators, aligned to corporate sustainability guidelines. Due to the characteristics of each one of their markets, the businesses work with individual occupational health and safety policies related to socio-environmental activities. The KPIs (a set of key performance and management indicators) monitor the action and the resulting data is included in the Company’s decision matrix.
In the context of the continual improvement in sustainability actions, Ultra is a component of B3’s Carbon Efficient Stock Index (ICO 2), made up of publicly listed companies that commit to transparent practices in relation to their emissions. The Company also takes part in the survey of the Carbon Disclosure Program (CDP), an international organization that encourages and provides a global system for companies and cities to manage, disclose and share information on the environment.
Five pillars of sustainability
Safety
Environment
People
Products and services
Value chain
Guidelines
- To value the culture of citizenship and ethics in business.
- To safeguard the integrity of the corporate governance model, particularly the treatment and transparency of relevant information and the continued management of risks and opportunities.
- To mantainand improve financial capacity, flexibility and operational excellence, so as to minimize the vulnerability to economic fluctuations, seeking growth opportunities in each one of its business segments.
- To orient products and services offerings to meet clients’ and consumers’ needs and expectations.
- To mantainactive representation in business associations and a transparent relationship with public institutions in order to enhance and strengthen businesses.
- To keep a state of readiness, awareness and education for the permanent appreciation of economic, environmental and social sustainability.
- To support, disseminate, promote and integrate the UN Global Compact principles related to Human Rights, Labor Rights, Environmental Protection and Combating Corrupt Practices, in all their forms, into the organizational culture.
- To value employees by encouraging professional growth and quality of life, as well as by improving work environment and conditions.
- To act selectively as an agent of progress of neighboring communities and society, through culture disseminating, education and social inclusion initiatives.
- To adopt policies to keep the excellence in health, safety and environmental standars.
- To identify, control and mitigate risks inherent to the business through risk management and crisis management policies and practices in the operational, regulatory, environmental, tax, legal and social areas.
- To promote the management of greenhouse gases in order to mitigate their effect on climate change.
- To prepare periodic reports on sustainability, considering its economic, environmental and social dimensions.
Ultra: Social Balance Sheet 2017 (R$ 000)
| Calculation base | December 2017 | ||
|---|---|---|---|
| Net Income (NI) | 1,573,868 | ||
| Operating Profit (OP) | 2,866,920 | ||
| Gross Payroll (GP) | 1,216,613 | ||
| Internal social indicators | Value (R$) | % of GP | % of NI |
| Food | 114,629 | 9.4% | 0.1% |
| Compulsory social charges | 404,445 | 33.2% | 0.5% |
| Pension fund | 24,592 | 2.0% | 0.0% |
| Health | 131,464 | 10.8% | 0.2% |
| Occupational safety and health | 13,980 | 1.1% | 0.0% |
| Education | 682 | 0.1% | 0.0% |
| Training and professional development | 14,182 | 1.2% | 0.0% |
| Employee profit sharing | 130,757 | 10.7% | 0.2% |
| Others | 104,355 | 8.6% | 0.1% |
| Total – Internal social indicators | 939,086 | 77.2% | 1.2% |
| External social indicators | Value (R$) | % of GP | % of NI |
| Education | 2,166 | 0.1% | 0.0% |
| Culture | 244 | 0.0% | 0.0% |
| Others (Donations and indemnifications for damages caused) | 37,885 | 1.3% | 0.0% |
| Total – Contributions to society | 40,295 | 1.4% | 0.0% |
| Taxes (excluding social charges) | 1,947,920 | 67.9% | 2.4% |
| Total – External social indicators | 1,988,215 | 69.4% | 2.4% |
| Environmental indicators | Amount (R$) | % of GP | % of NI |
| Related to the company’s operations | 44,316 | 1.5% | 0.1% |
| Total investments in the environment | 44,316 | 1.5% | 0.1% |