Grupo Ultra

CORPORATE PROFILE AND HISTORY

Corporate Profile
History

CORPORATE PROFILE

Reaching a new level Ultrapar is one of Brazil’s largest and most solid economic groups. It has operations in Brazil, Mexico, Argentina, United States and Venezuela, enjoying an outstanding position in the three sectors in which its business units operate: distribution of fuel through Ipiranga and Ultragaz, production of chemicals through Oxiteno and integrated logistics solutions for special bulk cargo through Ultracargo. In 2007, Ultrapar acquired the fuel distribution operations of the Ipiranga Group in the South and Southeast regions of Brazil, with the main purpose of broadening the scope of its activities in the fuel distribution sector. Ultrapar, which was already the largest distributor of LPG (liquefied petroleum gas, or cooking gas) in Brazil through Ultragaz, became the second largest player in the fuel distribution business, with a market share of approximately 14% through Ipiranga.

Ultrapar’s operations are founded on constantly improving its results and achieving excellence on its operations. National and international certifications in the environmental, health and quality areas, as well as intense programs for the development and training of its employees, attest to the company’s commitment to its stakeholders and to society as a whole. Management tools such as Economic Value Added (EVA®) and Balanced Scorecard (BSC®) are used on a day-to-day basis, accelerating the company’s consistent and sustainable growth.

The company has a long track-record of financial soundness, which is reflected in its credit ratings. The credit rating agency Moody’s classifies Ultrapar as Baa3 corresponding to the investment grade. Standard & Poor’s rates Ultrapar as BB+, one notch below investment grade, with positive outlook. Its shares are traded on the São Paulo Stock Exchange (BOVESPA) and its ADRs (American Depositary Receipts) are traded on the New York Stock Exchange (NYSE) since 1999. Ultrapar complies with the requirements of the Sarbanes-Oxley Act (SOX), which regulates control and transparency mechanisms in the management of companies listed in the United States, in addition to meeting the requirements of Brazilian regulatory bodies.

In 2007, Ultrapar obtained SOX certification under Section 404, which attests to the efficiency of its internal controls with regard to the company’s financial information. After the completion of the Ipiranga’s share exchange, Ultrapar became part of the BOVESPA Index (Ibovespa) and the MSCI (Morgan Stanley Capital International) index, of major importance in international financial markets. Ultrapar ended 2007 with a market capitalization of approximately R$ 9 billion, 115% higher than at the end of 2006, as a consequence of the appreciation of its shares and the issue of new shares in 2007.

Ultrapar aims to constantly develop its corporate governance and was the first Brazilian company, back in the year 2000, to grant all its shareholders 100% tag along rights, a provision that guarantees equal treatment to all shareholders in the event of a change of control in the company. More recently, the company took another step in constantly evolving its corporate governance, in deciding to join Level 2, moving up in the scale of BOVESPA’s differentiated levels of corporate governance.

1930
1960

1960
1992

1993
1998

1999
2002

2003
2005

2006
2007

» 1999 - 2002

On October 6, 1999, Ultrapar concludes its Initial Public Offering (IPO) of preferred shares, having its shares traded at the Bovespa - Bolsa de Valores de São Paulo and at the Nyse - New York Stock Exchange.

Ultrapar invests in the expansion of its operations and in the modernization of its assets.

In 2002, Ultrapar completes its corporate restructuring process. This corporate restructuring consisted in merger of Gipóia Ltda into Ultrapar and in Ultrapar’s “incorporation” of shares issued by Oxiteno. At the end of this corporate restructuring, Ultrapar increased its ownership at Oxiteno and Ultragaz in 100%.

» 1930 – 1960

Mr. Ernesto Igel creates the Companhia de Gás a Domicílio - the future Companhia Ultragaz - using gas cylinders he acquired from Companhia Zeppelin and introduces LPG for domestic cooking to the Brazilian population. Gas stoves gradually begin to replace the traditional wood and, to a smaller extent, the alcohol, kerosene and coal gas stoves. When the company first goes on stream, it has 3 trucks and 166 customers. World War II interrupts the US gas supply to the Brazilian market. Ultragaz overcomes this problem by importing gas from Argentina - an unprecedented transaction that calls for a significant effort to be put into operation.

	» 1993– 1998
	Ultrapar focuses on three main lines of business - LPG distribution, the manufacture of chemicals and petrochemicals, and transport and storage. In 1997, Ultrapar introduces the Ultrasystem, starts the geographic expansion of Ultragaz, through the building of new LPG bottling plants and completes the expansion of the Oxiteno plant in the Petrochemical Complex of Camaçari (BA).

» 1960 –1992

In 1966, the demand for high quality and safe service results in the incorporation of what we know today as Transultra, a company specializing in highway transport and storage of chemical and petrochemical products. Twelve years later, Tequimar is established to take over the storage business. 1970 – With the creation of Oxiteno S.A., Ultrapar begins to take part in the building of the Brazilian petrochemical industry. The plant, located in the petrochemical complex of Mauá (SP), is a pioneer producer of ethylene oxide and its by-products in Brazil. Ultrapar expands its Petrochemical and LPG Distribution Businesses through capacity expansion and acquisitions, and sales businesses not related to its core competence, such as Ultrafértil, Ultralar and Ultratec Engenharia.

» 2003 – 2005

In 2003, Ultrapar acquires the LPG distribution operations of Royal Dutch/Shell N.V. in Brazil, becoming leader in this segment. Also in 2003 Ultrapar concludes the acquisition of the chemical business of the Berci Group (CANAMEX), a Mexican specialty chemicals company. This acquisition represented the beginning of the operation of Oxiteno Mexico.

In 2004, the shareholders of Ultra S.A., the controlling shareholder of Ultrapar, entered into a Shareholders’ Agreement to ensure the continuation of the controlling shareholder block upon the contemplated dissolution and distribution of Ultra S.A. shares held by its shareholders, Igel Participações S.A. and Avaré Participações S.A in December 2004.

In April 2005, Ultrapar completed a primary and secondary offering of preferred shares, that resulted in an increase of 51% in the company's total free float, which was enlarged from 26% to 39% of the total capital, and the company’s shareholder base was also significantly increased, with approximately 1,800 new investors. In July 2005, Santos Intermodal Terminal (TIS) starts operations, is the second port installation of Ultracargo integrating road, rail and maritime transportation systems.

» 2006 – 2007

In 2006, Ultrapar took another important step towards improving its corporate governance, designating different people for the roles of Chief Executive Offi cer and Chairman of the Board. In October Paulo G. A. Cunha announced that he would be leaving the post of Chief Executive Officer, remaining as Chairman of the Board – a post which he had occupied concurrently with that of Chief Executive Officer since 1998. The company announced that his successor as Chief Executive Officer of Ultrapar was Pedro Wongtschowski, who took over the responsibility of continuing to run Ultrapar, and grow the business on a sustainable basis.

At Ultragaz, in 2006, we began a program to improve the company’s distribution structure, which resulted in significant operational and results improvement.

Oxiteno`s intenacionalization process,which had beegan with positive results in Mexico, through the operations of Oxiteno Mexico, increased in 2006 with the inauguration of a commercial sales office in Argentina and in 2007 in the USA. In March 2007 Ultrapar which already was leader in the LPG distribution through Ultragaz increased its position in the sector with the acquisition of the fuel and lubricant distribution business of the Ipiranga Group in the South and Southeast regions of Brazil, becoming the second largest player in the fuel and lubricant distribution market and taking over one of the 10 most valuable brands in Brazil.

In April 2007 Ultrapar announced the acquisition of the sulfate/sulfonate operational assets of Unión Química S.A. de C.V. in Mexico directed mainly to the cosmetics and detergent.

In May 2007, Ultracargo made another strategic step in achieving recognition as the largest and most complete provider of logistics in the specialty bulk cargo segment, by purchasing Petrolog, an in-house logistics company. Petrolog provides services in the management of fi nished products, in packaging, stock control, storage and shipping to the domestic and export markets, at its clients’ facilities.