ULTRAPAR PARTICIPAÇÕES S.A.
2Q23 Earnings Conference Call
08.10.2023
Disclaimer
Forward-looking statements
- This presentation may include forward-looking statements about future events. Such statements reflect only the expectations of the management of the Company. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Investors are cautioned that such forward-looking statements are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. For this reason, readers should not place undue emphasis on these forward-looking statements.
Standards and criteria adopted in preparing the information
- In May and August 2021, the sales agreements of Extrafarma and Oxiteno were signed, respectively, according to the Material Notices disclosed at the time. On December 31st, 2021, Ultrapar classified these businesses as assets and liabilities held for sale and discontinued operations. The sale of Oxiteno was concluded on April 1st, 2022, and thus ceased to be part of discontinued operations and Ultrapar's results as of 2Q22. The sale of Extrafarma was concluded on August 1st, 2022, and its results are shown within discontinued operations until this date. In this presentation, the financial information of 2022 related to Ultrapar corresponds to the consolidated information (pro forma) of the Company, that is, the data considers the sum of continuing and discontinued operations, unless otherwise indicated.
- The financial information presented on this document were extracted from the individual and consolidated interim financial information ("Quarterly Information") for the three months period ended on June 30, 2023, and prepared in accordance with the pronouncement CPC 21 (R1) - Interim Financial Reporting and the International Accounting Standard IAS 34 - Interim Financial Reporting issued by the International Accounting Standards Board ("IASB"), and presented in accordance with the applicable rules for Quarterly Information, issued by the Brazilian Securities and Exchange Commission ("CVM"). The information related to the businesses are presented without the elimination of intersegment transactions. Therefore, the sum of such information may not correspond to Ultrapar's consolidated information (pro forma). Additionally, the financial and operational information presented in this discussion is subject to rounding and, consequently, the total amounts presented in the tables and charts may differ from the direct numerical sum of the amounts that precede them. Information denominated EBITDA are presented in accordance to Resolution 156, issued by the CVM on June 23, 2022.
2 ULTRAPAR > CC2Q23 08.10.2023
Ultrapar - 2Q23 performance
Recurring EBITDA¹
R$ M
1,119 | ||
16 | 933 | ✓ Lower EBITDA of Ipiranga, |
-15% | partially offset by higher EBITDAs | |
1,103 | of Ultragaz and Ultracargo | |
2Q22 | 2Q23 | |
Continuing operations | Discontinued operations | |
Net income
R$ M
-48%
460
239
2Q22 | 2Q23 |
Lower EBITDA
Capital gain from the sale of Oxiteno in 2Q22
Higher costs and expenses with
depreciation and amortization
Lower net financial expenses
Approval of the distribution of R$ 274 M in
interim dividends (R$ 0.25/share)
CAPEX
R$ M
412
5 | 385 | |
-5% | ||
✓ Lower investments in Ultracargo | ||
407 | and Ipiranga, partially offset by | |
higher investments in Ultragaz | ||
2Q22 | 2Q23 | |
Continuing operations | Discontinued operations | |
¹ Non-recurring items described on page 2 from Earnings Release
3 ULTRAPAR > CC2Q23 08.10.2023
Cash flow from operations
R$ M
1,199
301
376898
2Q22 2Q23
- Lower investment in working capital in 2Q23 (fuel prices reductions)
- Reduction of R$ 301 M in the draft discount balance in 2Q23
Ultrapar - Debt and leverage
Net debt and leverage
R$ M
2.2x | 2.0x | 2.1x |
8,172 | 8,259 | 8,007 |
Jun-22 | Mar-23 | Jun-23 |
Net debt (IFRS 16) | Net debt (IFRS 16) / LTM EBITDA¹ | |
✓ Reduction in net debt | ✓ Increase in leverage QoQ | |
Operating cash generation | • | Lower LTM EBITDA from continuing operations |
Reduction in draft discount | • | Lower net debt |
- Reduction of R$ 301 M vs 1Q23
- Reduction of R$ 1,056 M vs 2Q22
Debt and debt maturity profile
R$ M
2Q22 | 1Q23 | 2Q23 | |
Net debt | 8,172 | 8,259 | 8,007 |
Trade payables - reverse factoring (draft discount) | 2,525 | 1,770 | 1,468 |
Financial liabilities of customers (vendor)² | 537 | 423 | 388 |
Receivables from divestments (Oxiteno and Extrafarma) | (708) | (1,098) | (1,083) |
Net debt + draft discount + vendor + receivables | 10,525 | 9,354 | 8,779 |
Financial debt | |||||||
6,216 | |||||||
2,903 | 4,013 | ||||||
2,500 | 1,935 | ||||||
819 | 522 | 32% | |||||
20% | 15% | 23% | |||||
6% | 4% | ||||||
Cash and | Up to 1 year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years | > 5 years | |||||
cash | Duration: 3.9 years | ||||||
equivalents |
-
LTM Adjusted EBITDA does not include Extrafarma's impairment, capital gain and closing adjustments from the sales of ConectCar, Oxiteno and Extrafarma, and extraordinary tax credits; furthermore, it does not include LTM result from Oxiteno and Extrafarma since the closing of the sales
2 Vendor amounts included in the trade payables line in 2Q22
4 ULTRAPAR > CC2Q23 08.10.2023
Ultragaz - 2Q23 performance
Volume
000 ton
+4%
425 | 417 | 442 | |
144 | 148 | 156 | +8% |
281 | 269 | 286 | +2% |
EBITDA
R$ M
+55%
384 405
261
2Q22 1Q23 2Q23
Bottled | Bulk | |
2Q22
614
EBITDA R$/ton
1Q23
922
2Q23
917
Volume 2Q23 x 2Q22
Bottled
Higher market demand
Bulk
Higher sales to industries
Recurring EBITDA 2Q23 x 2Q22
Efficiency and productivity gains
Higher sales volume, with better mix
Inflation pass-through
Higher expenses
5 ULTRAPAR > CC2Q23 08.10.2023
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Ultrapar Participações SA published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 12:58:08 UTC.