UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K |
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 Or 15d-16 Of
The Securities Exchange Act Of 1934
For the month of May 2021
Commission File Number: 001-14950
ULTRAPAR HOLDINGS INC.
(Translation of Registrant’s Name into English)
Brigadeiro Luis Antonio Avenue, 1343, 9th floor
São Paulo, SP, Brazil 01317-910
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ____X____ Form 40-F ________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ________ No ____X____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ________ No ____X____
ULTRAPAR HOLDINGS INC.
TABLE OF CONTENTS
ITEM | ||
1. | Parent and Consolidated Interim Financial Information as of and the Three-month period Ended March 31, 2021 and Report on Review of Interim Financial Information | 2 |
2. | 1Q21 Earnings Release | 131 |
|
(Convenience Translation into English from the Original Previously Issued in Portuguese)
Ultrapar Participações S.A.
Parent’s Separate and Consolidated Interim Financial Information as of and the Three-month Period Ended March 31, 2021 and Report on Review of Interim Financial Information
KPMG Auditores Independentes |
|
Ultrapar Participações S.A. and Subsidiaries
Interim Financial Information
As of and the Three-month Period Ended March 31, 2021 and 2020
(Convenience Translation into English from the Original Previously Issued in Portuguese)
To the Shareholders, Directors and Management of
Ultrapar Participações S.A.
São Paulo, SP
Introduction
We have reviewed the accompanying individual and consolidated interim financial information of Ultrapar Participações S.A. (“Company”), comprised in the Quarterly Financial Information - ITR Form for the quarter ended March 31, 2021, which comprise the statements of financial position as of March 31, 2021 and related statements of income, comprehensive income, changes in shareholders’ equity and cash flows for the three-month period then ended, including the explanatory notes.
The Company’s Management is responsible for the preparation of the interim financial information in accordance with Technical Pronouncement CPC 21 (R1) Interim Financial Information and with International Standard IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, such as for the presentation of these information in a manner consistent with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of the Quarterly Financial Information - ITR. Our responsibility is to express a conclusion on these interim financial information based on our review
Scope of the review
Our review was conducted in accordance with the Brazilian and international Review Standards of interim information (NBC TR 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the individual and consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the individual and consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34, issued by the Accounting Committee and by IASB applicable to the preparation of Quarterly Financial Information – ITR and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission - CVM.
Other matters - Interim statements of value added
The individual and consolidated interim statements of value added (DVA) for the three-month period ended March 31, 2021, prepared under the responsibility of the Company's management, and presented as supplementary information for the purposes of IAS 34, were submitted to the same review procedures followed together with the review of the Company's interim financial information. In order to form our conclusion, we evaluated whether these statements are reconciled to the interim financial information and to the accounting records, as applicable, and whether their form and content are in accordance with the criteria set on Technical Pronouncement CPC 09 - Statement of Value Added. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added are not prepared, in all material respects, according to the criteria defined in this Standard and consistently in accordance with the individual and consolidated interim financial information taken as a whole.
São Paulo, May 05, 2021
KPMG Auditores Independentes
CRC 2SP014428/O-6
Original report in Portuguese signed by
Marcio Serpejante Peppe
Accountant CRC 1SP233011/O-8
Ultrapar Participações S.A. and Subsidiaries
As of March 31, 2021 and December 31, 2020
(In thousands of Brazilian Reais)
|
| Parent |
| Consolidated | ||||
| Note | 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Assets |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents | 4.a | 946,757 |
| 948,649 |
| 3,933,203 |
| 2,661,494 |
Financial investments and hedging instruments | 4.b | 388,031 |
| 88,100 |
| 3,553,474 |
| 5,033,258 |
Trade receivables | 5.a | - |
| - |
| 3,702,468 |
| 3,318,927 |
Reseller financing | 5.b | - |
| - |
| 538,368 |
| 549,129 |
Inventories | 6 | - |
| - |
| 4,491,697 |
| 3,846,196 |
Recoverable taxes | 7.a | 325 |
| 154 |
| 1,077,666 |
| 1,044,850 |
Recoverable income and social contribution taxes | 7.b | 39,997 |
| 47,913 |
| 404,985 |
| 366,080 |
Dividends receivable |
| 213 |
| 150,301 |
| 1,164 |
| 1,152 |
Other receivables |
| 86,270 |
| 58,300 |
| 63,518 |
| 56,955 |
Prepaid expenses | 10 | 12,032 |
| 3,684 |
| 162,002 |
| 132,122 |
Contractual assets with customers – exclusive rights | 11 | - |
| - |
| 490,869 |
| 478,908 |
Total current assets |
| 1,473,625 |
| 1,297,101 |
| 18,419,414 |
| 17,489,071 |
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Financial investments and hedging instruments | 4.b | - |
| - |
| 1,014,371 |
| 977,408 |
Trade receivables | 5.a | - |
| - |
| 60,845 |
| 72,195 |
Reseller financing | 5.b | - |
| - |
| 407,450 |
| 419,255 |
Related parties | 8.a | 400,000 |
| 753,459 |
| 7,852 |
| 2,824 |
Deferred income and social contribution taxes | 9.a | 62,160 |
| 64,993 |
| 1,061,363 |
| 974,711 |
Recoverable taxes | 7.a | - |
| - |
| 1,470,445 |
| 1,474,808 |
Recoverable income and social contribution taxes | 7.b | 39,445 |
| 39,446 |
| 260,247 |
| 261,205 |
Escrow deposits | 22.a | 2 |
| 2 |
| 950,363 |
| 949,796 |
Indemnification asset – business combination | 22.c | - |
| - |
| 204,508 |
| 204,439 |
Other receivables |
| - |
| - |
| 21,031 |
| 20,238 |
Prepaid expenses | 10 | 3,081 |
| 3,888 |
| 59,459 |
| 70,507 |
Contractual assets with customers – exclusive rights | 11 | - |
| - |
| 1,270,606 |
| 1,227,423 |
Total long term assets |
| 504,688 |
| 861,788 |
| 6,788,540 |
| 6,654,809 |
Investments |
|
|
|
|
|
|
|
|
In subsidiaries | 12.a | 10,327,582 |
| 10,530,177 |
| - |
| - |
In joint ventures | 12.a; 12.b | - |
| - |
| 140,886 |
| 139,100 |
In associates | 12.c | - |
| - |
| 25,839 |
| 25,588 |
Others |
| - |
| - |
| 2,793 |
| 2,793 |
|
| 10,327,582 |
| 10,530,177 |
| 169,518 |
| 167,481 |
|
|
|
|
|
|
|
|
|
Right-of-use assets | 13 | 34,833 |
| 35,062 |
| 2,125,254 |
| 2,150,286 |
Property, plant, and equipment | 14 | 25,045 |
| 14,328 |
| 8,176,113 |
| 8,005,860 |
Intangible assets | 15 | 253,781 |
| 254,242 |
| 1,792,355 |
| 1,782,655 |
Total non-current assets |
| 11,145,929 |
| 11,695,597 |
| 19,051,780 |
| 18,761,091 |
Total assets |
| 12,619,554 |
| 12,992,698 |
| 37,471,194 |
| 36,250,162 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
Statements of Financial Position
As of March 31, 2021 and December 31, 2020
(In thousands of Brazilian Reais)
|
| Parent |
| Consolidated | ||||
| Note | 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Liabilities |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Loans, financing and hedge derivative financial instruments | 16 | 1,052,507 |
| 1,038,499 |
| 2,277,938 |
| 2,306,036 |
Debentures | 16.f | 2,169 |
| 9,996 |
| 971,281 |
| 949,908 |
Trade payables | 17 | 29,319 |
| 16,870 |
| 2,610,195 |
| 2,745,019 |
Trade payables – reverse factoring | 17 | - |
| - |
| 1,915,949 |
| 1,295,633 |
Salaries and related charges | 18 | 31,176 |
| 42,400 |
| 384,667 |
| 468,630 |
Taxes payable | 19 | 608 |
| 812 |
| 342,740 |
| 286,014 |
Dividends payable | 25.h | 17,132 |
| 439,094 |
| 22,690 |
| 442,133 |
Income and social contribution taxes payable |
| - |
| 4,264 |
| 98,119 |
| 169,317 |
Post-employment benefits | 20.b | - |
| - |
| 27,125 |
| 27,077 |
Provision for asset retirement obligation | 21 | - |
| - |
| 4,372 |
| 4,267 |
Provision for tax, civil, and labor risks | 22.a | - |
| - |
| 41,690 |
| 43,660 |
Leases payable | 13 | 4,922 |
| 4,688 |
| 263,146 |
| 260,189 |
Other payables |
| 16,357 |
| 10,157 |
| 242,370 |
| 224,676 |
Deferred revenue | 23 | - |
| - |
| 16,320 |
| 18,282 |
Total current liabilities |
| 1,154,190 |
| 1,566,780 |
| 9,218,602 |
| 9,240,841 |
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
| - |
|
|
|
|
Loans, financing and hedge derivative financial instruments | 16 | - |
| - |
| 9,329,233 |
| 8,526,064 |
Debentures | 16.f | 1,724,302 |
| 1,724,117 |
| 6,027,810 |
| 5,594,208 |
Related parties | 8.a | 4,730 |
| 5,272 |
| 3,606 |
| 3,711 |
Deferred income and social contribution taxes | 9.a | - |
| - |
| 17,416 |
| 12,732 |
Post-employment benefits | 20.b | 2,626 |
| 2,527 |
| 258,969 |
| 257,647 |
Provision for asset retirement obligation | 21 | - |
| - |
| 50,264 |
| 49,168 |
Provision for tax, civil, and labor risks | 22.a; 22.c | 280 |
| 280 |
| 859,118 |
| 854,385 |
Leases payable | 13 | 33,047 |
| 33,246 |
| 1,530,684 |
| 1,573,099 |
Subscription warrants – indemnification | 24 | 75,658 |
| 86,439 |
| 75,658 |
| 86,439 |
Provision for short-term liabilities of subsidiaries and joint venture | 12.a; 12.b | 36,072 |
| 35,794 |
| - |
| 2,096 |
Other payables |
| 5,188 |
| 4,497 |
| 137,193 |
| 139,507 |
Total non-current liabilities |
| 1,881,903 |
| 1,892,172 |
| 18,289,951 |
| 17,099,056 |
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Share capital | 25.a; 25.f | 5,171,752 |
| 5,171,752 |
| 5,171,752 |
| 5,171,752 |
Equity instrument granted | 25.b | 25,975 |
| 22,404 |
| 25,975 |
| 22,404 |
Capital reserve | 25.d | 595,420 |
| 594,049 |
| 595,420 |
| 594,049 |
Treasury shares | 25.c | (489,068) |
| (489,068) |
| (489,068) |
| (489,068) |
Revaluation reserve on subsidiaries | 25.e | 4,291 |
| 4,337 |
| 4,291 |
| 4,337 |
Profit reserves | 25.f | 4,408,275 |
| 4,408,275 |
| 4,408,275 |
| 4,408,275 |
Retained earnings |
| 132,288 |
| - |
| 132,288 |
| - |
Valuation adjustments | 25.g.1 | (584,916) |
| (464,990) |
| (584,916) |
| (464,990) |
Cumulative translation adjustments | 25.g.2 | 319,444 |
| 231,596 |
| 319,444 |
| 231,596 |
Additional dividends to the minimum mandatory dividends | 25.h | - |
| 55,391 |
| - |
| 55,391 |
Equity attributable to: |
|
|
|
|
|
|
|
|
Shareholders of the Company |
| 9,583,461 |
| 9,533,746 |
| 9,583,461 |
| 9,533,746 |
Non-controlling interests in subsidiaries |
| - |
| - |
| 379,180 |
| 376,519 |
Total equity |
| 9,583,461 |
| 9,533,746 |
| 9,962,641 |
| 9,910,265 |
Total liabilities and equity |
| 12,619,554 |
| 12,992,698 |
| 37,471,194 |
| 36,250,162 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais, except earnings per share)
|
| Parent |
| Consolidated | ||||
| Note | 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Net revenue from sales and services | 26 | - |
| - |
| 23,950,284 |
| 21,387,138 |
Cost of products and services sold | 27 | - |
| - |
| (22,234,378) |
| (19,977,191) |
|
|
|
|
|
|
|
|
|
Gross profit |
| - |
| - |
| 1,715,906 |
| 1,409,947 |
|
|
|
|
|
|
|
|
|
Operating income (expenses) |
|
|
|
|
|
|
|
|
Selling and marketing | 27 | - |
| - |
| (654,573) |
| (614,631) |
Expected losses on doubtful accounts |
| - |
| - |
| (3,940) |
| (30,275) |
General and administrative | 27 | - |
| - |
| (468,690) |
| (409,881) |
Gain (loss) on disposal of property, plant and equipment and intangibles | 28 | 1 |
| - |
| 8,076 |
| 6,938 |
Other operating income | 29 | - |
| - |
| 52,602 |
| 159,573 |
Other operating expenses | 29 | (3,014) |
| (245) |
| (65,027) |
| (35,634) |
|
|
|
|
|
|
|
|
|
Operating income before finance income (expenses) and share of profit (loss) of subsidiaries, joint ventures and associates |
| (3,013) |
| (245) |
| 584,354 |
| 486,037 |
Share of profit (loss) of subsidiaries, joint ventures and associates | 12 | 144,053 |
| 154,849 |
| (12,222) |
| (12,428) |
Operating income before finance income (expenses) and income and social contribution taxes |
| 141,040 |
| 154,604 |
| 572,132 |
| 473,609 |
Finance income | 30 | 18,399 |
| 34,134 |
| 63,433 |
| 182,051 |
Finance expenses | 30 | (24,442) |
| (21,053) |
| (397,114) |
| (349,681) |
Financial result, net | 30 | (6,043) |
| 13,081 |
| (333,681) |
| (167,630) |
Income before income and social contribution taxes |
| 134,997 |
| 167,685 |
| 238,451 |
| 305,979 |
Income and social contribution taxes |
|
|
|
|
|
|
|
|
Current | 9.b; 9.c | - |
| (170) |
| (106,454) |
| (108,289) |
Deferred | 9.b | (2,834) |
| (6,656) |
| 5,433 |
| (28,824) |
|
| (2,834) |
| (6,826) |
| (101,021) |
| (137,113) |
Net income for the year |
| 132,163 |
| 160,859 |
| 137,430 |
| 168,866 |
Income attributable to: |
|
|
|
|
|
|
|
|
Shareholders of the Company |
| 132,163 |
| 160,859 |
| 132,163 |
| 160,859 |
Non-controlling interests in subsidiaries |
| - |
| - |
| 5,267 |
| 8,007 |
Earnings per share (based on weighted average number of shares outstanding) – R$ |
|
|
|
|
|
|
|
|
Basic | 31 | 0.1215 |
| 0.1480 |
| 0.1215 |
| 0.1480 |
Diluted | 31 | 0.1208 |
| 0.1471 |
| 0.1208 |
| 0.1471 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais)
|
| Parent |
| Consolidated | ||||
| Note | 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Net income for the year |
| 132,163 |
| 160,859 |
| 137,430 |
| 168,866 |
Items that are subsequently reclassified to profit or loss: |
|
|
|
|
|
|
|
|
Fair value adjustments of financial instruments, net | 25.g.1 | (117) |
| - |
| (117) |
| - |
Fair value adjustments of financial instruments of subsidiaries, net | 25.g.1 | (121,257) |
| (420,032) |
| (121,257) |
| (420,032) |
Fair value adjustments of financial instruments of joint ventures, net | 25.g.1 | 1,448 |
| 2,501 |
| 1,448 |
| 2,501 |
Cumulative translation adjustments and hedge of net investments in foreign operations, net | 25.g.2 | 87,848 |
| 121,874 |
| 87,848 |
| 121,874 |
Total comprehensive income for the year |
| 100,085 |
| (134,798) |
| 105,352 |
| (126,791) |
Total comprehensive income for the period attributable to shareholders of the Company |
| 100,085 |
| (134,798) |
| 100,085 |
| (134,798) |
Total comprehensive income for the period attributable to non-controlling interest in subsidiaries |
| - |
| - |
| 5,267 |
| 8,007 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais, except dividends per share)
|
|
|
|
|
|
|
|
|
|
|
|
| Profit reserve |
|
|
|
|
|
|
|
|
| Equity attributable to: |
|
| ||||
| Note |
| Share capital |
| Equity instrument granted |
| Capital reserve |
| Treasury shares |
| Revaluation reserve on subsidiaries |
| Legal reserve |
| Investments statutory reserve |
| Valuation adjustments |
| Cumulative translation adjustments |
| Retained earnings |
| Additional dividends to the minimum mandatory dividends |
| Shareholders of the Company |
| Non-controlling interests in subsidiaries |
| Consolidated equity |
Balance as of December 31, 2020 |
|
| 5,171,752 |
| 22,404 |
| 594,049 |
| (489,068) |
| 4,337 |
| 750,010 |
| 3,658,265 |
| (464,990) |
| 231,596 |
| - |
| 55,391 |
| 9,533,746 |
| 376,519 |
| 9,910,265 |
Net income for the year |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 132,163 |
| - |
| 132,163 |
| 5,267 |
| 137,430 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments of available for financial instruments, net of income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company | 25.g.1 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (117) |
| - |
| - |
| - |
| (117) |
| - |
| (117) |
Subsidiaries | 12.a; 25.g.1 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (121,257) |
| - |
| - |
| - |
| (121,257) |
| - |
| (121,257) |
Joint ventures | 12.a; 25.g.1 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,448 |
| - |
| - |
| - |
| 1,448 |
| - |
| 1,448 |
Currency translation of foreign subsidiaries and the effect of net investments hedge, net of income taxes | 12.a; 25.g.2 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 87,848 |
| - |
| - |
| 87,848 |
| - |
| 87,848 |
Total comprehensive income for the period |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (119,926) |
| 87,848 |
| 132,163 |
| - |
| 100,085 |
| 5,267 |
| 105,352 |
Issuance of shares related to the subscription warrants - indemnification - Extrafarma acquisition | 25.d |
| - |
| - |
| 1,371 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,371 |
| - |
| 1,371 |
Equity instrument granted | 25.b |
| - |
| 1,617 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,617 |
| - |
| 1,617 |
Equity instrument granted of subsidiaries | 12.a; 25.b |
| - |
| 1,954 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,954 |
| - |
| 1,954 |
Income and social contribution taxes on realization of revaluation reserve of subsidiaries | 25.e |
| - |
| - |
| - |
| - |
| (46) |
| - |
| - |
| - |
| - |
| 46 |
| - |
| - |
| - |
| - |
Shareholder transaction – changes of investiments |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 79 |
| - |
| 79 |
| - |
| 79 |
Dividends attributable to non-controlling interests |
|
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (2,606) |
| (2,606) |
Approval of additional dividends by the Shareholders’ Meeting | 25.h |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (55,391) |
| (55,391) |
| - |
| (55,391) |
Balance as of March 31, 2021 |
|
| 5,171,752 |
| 25,975 |
| 595,420 |
| (489,068) |
| 4,291 |
| 750,010 |
| 3,658,265 |
| (584,916) |
| 319,444 |
| 132,288 |
| - |
| 9,583,461 |
| 379,180 |
| 9,962,641 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
Statements of Changes in Equity
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais, except dividends per share)
|
|
|
|
|
|
|
|
|
|
|
|
| Profit reserve |
|
|
|
|
|
|
|
|
| Equity attributable to: |
|
| ||||
| Note |
| Share capital |
| Equity instrument granted |
| Capital reserve |
| Treasury shares |
| Revaluation reserve on subsidiaries |
| Legal reserve |
| Investments statutory reserve |
| Valuation adjustments |
| Cumulative translation adjustments |
| Retained earnings |
| Additional dividends to the minimum mandatory dividends |
| Shareholders of the Company |
| Non-controlling interests in subsidiaries |
| Consolidated equity |
Balance as of December 31, 2019 |
|
| 5,171,752 |
| 11,970 |
| 542,400 |
| (485,383) |
| 4,522 |
| 705,341 |
| 3,290,073 |
| (146,317) |
| 102,427 |
| ‐ |
| 261,470 |
| 9,458,255 |
| 376,920 |
| 9,835,175 |
Net income for the year |
|
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 160,859 |
| ‐ |
| 160,859 |
| 8,007 |
| 168,866 |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustments of available for financial instruments, net of income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company | 12.a; 25.g.1 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| (420,032) |
| - |
| - |
| - |
| (420,032) |
| - |
| (420,032) |
Joint ventures | 12.a; 25.g.1 |
| - |
| - |
| - |
| - |
| - |
| - |
| - |
| 2,501 |
| - |
| - |
| - |
| 2,501 |
| - |
| 2,501 |
Currency translation of foreign subsidiaries, including the effect of net investments hedge | 25.g.2 |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 121,874 |
| ‐ |
| ‐ |
| 121,874 |
| ‐ |
| 121,874 |
Total comprehensive income for the period |
|
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| (417,531) |
| 121,874 |
| 160,859 |
| ‐ |
| (134,798) |
| 8,007 |
| (126,791) |
Issuance of shares related to the subscription warrants - indemnification - Extrafarma acquisition | 25.d |
| ‐ |
| ‐ |
| 53,072 |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 53,072 |
| ‐ |
| 53,072 |
Equity instrument granted os subsidiaries | 25.b |
| ‐ |
| 2,135 |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 2,135 |
| ‐ |
| 2,135 |
Income and social contribution taxes on realization of revaluation reserve of subsidiaries | 25.e |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| (46) |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 46 |
| ‐ |
| ‐ |
| ‐ |
| - |
Loss due to the payments fixed dividends to preferred shares |
|
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| (516) |
| ‐ |
| (516) |
| 516 |
| - |
Dividends attributable to non-controlling interests |
|
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| (428) |
| (428) |
Approval of additional dividends by the Shareholders’ Meeting |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| (261,470) |
| (261,470) |
| ‐ |
| (261,470) | |
Balance as of March 31, 2020 |
|
| 5,171,752 |
| 14,105 |
| 595,472 |
| (485,383) |
| 4,476 |
| 705,341 |
| 3,290,073 |
| (563,848) |
| 224,301 |
| 160,389 |
| ‐ |
| 9,116,678 |
| 385,015 |
| 9,501,693 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais)
|
| Parent |
| Consolidated | ||||
| Note | 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income for the year |
| 132,163 |
| 160,859 |
| 137,430 |
| 168,866 |
Adjustments to reconcile net income to cash provided by operating activities |
|
|
|
|
|
|
|
|
Share of loss (profit) of subsidiaries, joint ventures and associates | 12 | (144,053) |
| (154,849) |
| 12,222 |
| 12,428 |
Amortization of contractual assets with customers – exclusive rights | 11 | - |
| ‐ |
| 48,214 |
| 82,860 |
Amortization of right-of-use assets | 13.a | 1,503 |
| 512 |
| 87,329 |
| 77,867 |
Depreciation and amortization | 14; 15 | 1,453 |
| 293 |
| 245,372 |
| 225,860 |
PIS and COFINS credits on depreciation | 14; 15 | - |
| - |
| 4,334 |
| 4,527 |
Interest and foreign exchange rate variations |
| 8,620 |
| (627) |
| 424,759 |
| 505,410 |
Deferred income and social contribution taxes | 9.b | 2,834 |
| 6,656 |
| (5,433) |
| 28,824 |
(Loss) Gain on disposal of property, plant, and equipment and intangibles | 28 | (1) |
| - |
| (8,076) |
| (6,938) |
Expected losses on doubtful accounts | 5 | - |
| - |
| 3,940 |
| 30,275 |
Provision for losses in inventories | 6 | - |
| - |
| (4,656) |
| (4,586) |
Provision for post-employment benefits | 20.b | 99 |
| - |
| 8 |
| 5,156 |
Equity instrument granted | 8.c | 1,617 |
| - |
| 3,571 |
| 2,136 |
Provision of decarbonization - CBIO | 29 | - |
| - |
| 32,640 |
| - |
Provision for tax, civil, and labor risks | 22.a | - |
| 82 |
| 3,582 |
| 11,989 |
Other provisions and adjustments |
| 1,372 |
| - |
| 2,845 |
| (3,221) |
|
| 5,607 |
| 12,926 |
| 988,081 |
| 1,141,453 |
(Increase) decrease in current assets |
|
|
|
|
|
|
|
|
Trade receivables and reseller financing | 5 | - |
| - |
| (371,971) |
| 416,525 |
Inventories | 6 | - |
| - |
| (640,845) |
| 328,554 |
Recoverable taxes | 7 | 7,745 |
| (602) |
| (71,721) |
| 11,146 |
Dividends received from subsidiaries and joint ventures |
| 479,726 |
| 216,156 |
| - |
| - |
Other receivables |
| (27,970) |
| (24,622) |
| (6,563) |
| (42,936) |
Prepaid expenses | 10 | (8,348) |
| (123) |
| (44,298) |
| (45,742) |
Increase (decrease) in current liabilities |
|
|
|
|
|
|
|
|
Trade payables | 17 | 12,449 |
| 1,565 |
| 413,266 |
| (309,616) |
Salaries and related charges | 18 | (11,224) |
| 20,090 |
| (83,963) |
| (65,584) |
Taxes payable | 19 | (204) |
| (197) |
| 56,726 |
| (24,757) |
Income and social contribution taxes |
| (4,264) |
| 47 |
| 24,162 |
| (28,054) |
Post-employment benefits | 20.b | - |
| - |
| 48 |
| 898 |
Other payables |
| 6,198 |
| 1,313 |
| (15,085) |
| (16,830) |
Deferred revenue | 23 | - |
| - |
| (1,962) |
| (1,495) |
(Increase) decrease in non-current assets |
|
|
|
|
|
|
|
|
Trade receivables and reseller financing | 5 | - |
| - |
| 23,155 |
| 17,214 |
Recoverable taxes | 7 | - |
| - |
| 5,321 |
| (213,635) |
Escrow deposits |
| - |
| 15 |
| (567) |
| (35,734) |
Other receivables |
| - |
| - |
| (862) |
| 191 |
Prepaid expenses | 10 | 807 |
| 18 |
| 9,383 |
| 6,912 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
Statements of Cash Flows – Indirect Method
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais)
|
| Parent |
| Consolidated | ||||
|
| 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Increase (decrease) in non-current liabilities |
|
|
|
|
|
|
|
|
Post-employment benefits | 20.b | - |
| - |
| 1,314 |
| (3,267) |
Other payables |
| 151 |
| 672 |
| (2,310) |
| (13,819) |
Acquisition of CBIO | 15 | - |
| - |
| (20,825) |
| - |
Payments of contractual assets with customers – exclusive rights | 11 | - |
| - |
| (35,881) |
| (145,429) |
Payments of contingencies | 22.a | - |
| - |
| (819) |
| (5,222) |
Income and social contribution taxes paid |
| - |
| - |
| (95,360) |
| (38,781) |
Net cash provided by operating activities |
| 460,673 |
| 227,258 |
| 128,424 |
| 931,992 |
Cash flows from investing activities |
|
|
|
|
|
|
|
|
Financial investments, net of redemptions | 4.b | (295,637) |
| 67,358 |
| 1,719,562 |
| (143,310) |
Acquisition of property, plant, and equipment | 14 | (11,709) |
| (2,220) |
| (247,775) |
| (177,378) |
Acquisition of intangible assets | 15 | - |
| (10,985) |
| (31,931) |
| (43,191) |
Capital increase in subsidiary | 12.a | (12,640) |
| (3,010) |
| - |
| - |
Capital increase in joint ventures | 12.b | - |
| - |
| (15,000) |
| - |
Related parties | 8.a | 353,459 | - | (5,028) | - | |||
Proceeds from disposal of property, plant, and equipment and intangibles |
| - |
| - |
| 22,539 |
| 19,655 |
Net cash provided by (used in) investing activities |
| 33,473 |
| 51,143 |
| 1,442,367 |
| (344,224) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
Loans and debentures |
|
|
|
|
|
|
|
|
Proceeds | 16 | - |
| - |
| 463,012 |
| 240,674 |
Repayments | 16 | - |
| - |
| (126,491) |
| (89,535) |
Interest paid | 16 | (16,623) |
| (43,083) |
| (50,508) |
| (90,361) |
Payments of lease |
|
|
|
|
|
|
|
|
Principal | 13 | (2,033) |
| (483) |
| (119,838) |
| (84,267) |
Interest paid | 13 | (29) |
| (22) |
| (2,325) |
| (1,387) |
Dividends paid | 25.h | (477,353) |
| (259,937) |
| (477,440) |
| (260,635) |
Related parties | 8.a | - |
| - |
| (105) |
| (24) |
Net cash used in financing activities |
| (496,038) |
| (303,525) |
| (313,695) |
| (285,535) |
Effect of exchange rate changes on cash and cash equivalents in foreign currency |
| - |
| - |
| 14,613 |
| 76,389 |
Increase (decrease) in cash and cash equivalents |
| (1,892) |
| (25,124) |
| 1,271,709 |
| 378,622 |
Cash and cash equivalents at the beginning of the year | 4.a | 948,649 |
| 42,580 |
| 2,661,494 |
| 2,115,379 |
Cash and cash equivalents at the end of the year | 4.a | 946,757 |
| 17,456 |
| 3,933,203 |
| 2,494,001 |
Transactions without cash effect: |
|
|
|
|
|
|
|
|
Addition on right-of-use assets and leases payable | 13.a | 1,328 |
| - |
| 58,576 |
| 169,417 |
Addition on contractual assets with customers – exclusive rights | 11 | - |
| - |
| 72,226 |
| 14,892 |
Issuance of shares related to the subscription warrants - indemnification - Extrafarma acquisition | 25.d | 1,371 |
| 53,072 |
| 1,371 |
| 53,072 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
For the three-month period ended March 31, 2021 and 2020
(In thousands of Brazilian Reais, except percentages)
|
| Parent |
| Consolidated | ||||||||||||
| Note | 03/31/2021 |
| % |
| 03/31/2020 |
| % |
| 03/31/2021 |
| % |
| 03/31/2020 |
| % |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross revenue from sales and services, except rents and royalties | 26 | - |
|
|
| - |
|
|
| 25,344,980 |
|
|
| 22,966,345 |
|
|
Rebates, discounts, and returns | 26 | - |
|
|
| - |
|
|
| (339,108) |
|
|
| (472,125) |
|
|
Expected losses on doubtful accounts | 5 | - |
|
|
| - |
|
|
| (3,940) |
|
|
| (30,275) |
|
|
Amortization of contractual assets with customers – exclusive rights | 11 | - |
|
|
| - |
|
|
| (48,214) |
|
|
| (82,860) |
|
|
Provision for loss on disposal of property, plant, and equipment and intangibles and other operating income, net | 28; 29 | - |
|
|
| - |
|
|
| (4,349) |
|
|
| 130,877 |
|
|
|
| - |
|
|
| - |
|
|
| 24,949,369 |
|
|
| 22,511,962 |
|
|
Materials purchased from third parties |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw materials used |
| - |
|
|
| - |
|
|
| (1,660,421) |
|
|
| (1,334,286) |
|
|
Cost of goods, products, and services sold |
| - |
|
|
| - |
|
|
| (20,727,448) |
|
|
| (18,919,208) |
|
|
Third-party materials, energy, services, and others |
| 42,517 |
|
|
| 36,501 |
|
|
| (679,341) |
|
|
| (537,057) |
|
|
Provisions for losses of assets |
| - |
|
|
| - |
|
|
| (10,911) |
|
|
| (7,890) |
|
|
|
| 42,517 |
|
|
| 36,501 |
|
|
| (23,078,121) |
|
|
| (20,798,441) |
|
|
Gross value added |
| 42,517 |
|
|
| 36,501 |
|
|
| 1,871,248 |
|
|
| 1,713,521 |
|
|
Deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization | 13.a; 14; 15 | (2,956) |
|
|
| (805) |
|
|
| (332,701) |
|
|
| (303,727) |
|
|
PIS and COFINS credits on depreciation | 14; 15 | - |
|
|
| - |
|
|
| (4,334) |
|
|
| (4,527) |
|
|
|
| (2,956) |
|
|
| (805) |
|
|
| (337,035) |
|
|
| (308,254) |
|
|
Net value added by the Company |
| 39,561 |
|
|
| 35,696 |
|
|
| 1,534,213 |
|
|
| 1,405,267 |
|
|
Value added received in transfer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit (loss) of subsidiaries, joint ventures, and associates | 12 | 144,053 |
|
|
| 154,849 |
|
|
| (12,222) |
|
|
| (12,428) |
|
|
Rents and royalties | 26 | - |
|
|
| ‐ |
|
|
| 34,215 |
|
|
| 34,762 |
|
|
Financial income | 30 | 18,399 |
|
|
| 34,134 |
|
|
| 61,568 |
|
|
| 182,051 |
|
|
|
| 162,452 |
|
|
| 188,983 |
|
|
| 83,561 |
|
|
| 204,385 |
|
|
Total value added available for distribution |
| 202,013 |
|
|
| 224,679 |
|
|
| 1,617,774 |
|
|
| 1,609,652 |
|
|
Distribution of value added |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Labor and benefits |
| 33,768 |
| 17 |
| 27,987 |
| 12 |
| 519,911 |
| 32 |
| 449,143 |
| 28 |
Taxes, fees, and contributions |
| 9,878 |
| 5 |
| 12,718 |
| 6 |
| 612,453 |
| 38 |
| 689,730 |
| 43 |
Financial expenses and rents |
| 26,204 |
| 13 |
| 23,115 |
| 10 |
| 347,980 |
| 22 |
| 301,913 |
| 19 |
Retained earnings |
| 132,163 |
| 65 |
| 160,859 |
| 72 |
| 137,430 |
| 8 |
| 168,866 |
| 10 |
Value added distributed |
| 202,013 |
| 100 |
| 224,679 |
| 100 |
| 1,617,774 |
| 100 |
| 1,609,652 |
| 100 |
The accompanying notes are an integral part of the interim financial information.
Ultrapar Participações S.A. and Subsidiaries
(In thousands of Brazilian Reais, unless otherwise stated)
1. Operations
Ultrapar Participações S.A. (“Ultrapar” or “Company”) is a publicly-traded company headquartered at the Brigadeiro Luis Antônio Avenue, 1343 in the city of São Paulo – SP, Brazil, listed on B3 S.A. – Brasil, Bolsa, Balcão (“B3”), in the Novo Mercado listing segment under the ticker “UGPA3” and on the New York Stock Exchange (“NYSE”) in the form of level III American Depositary Receipts (“ADRs”) under the ticker “UGP”.
The Company engages in the investment of its own capital in services, commercial, and industrial activities, through the subscription or acquisition of shares of other companies. Through its subsidiaries, it operates in the segments of liquefied petroleum gas – LPG distribution (“Ultragaz”), fuel distribution and related businesses (“Ipiranga”), production and marketing of chemicals (“Oxiteno”), and storage services for liquid bulk (“Ultracargo”), retail distribution of pharmaceutical, hygiene, beauty, and skincare products (“Extrafarma”) and digital payments and electronic retail segment (“Abastece aí”). The information about segments are disclosed in Note 32.
a. Clarifications on the impacts of COVID-19
The World Health Organization (“WHO”) declared a coronavirus pandemic (COVID-19) on March 11, 2020. To contain a spread of the virus in Brazil, the Ministry of Health (“MH”) and the state and municipal governments announced several actions to reduce the agglomeration and movement of people, including the closing of commerce, parks and common areas. In this context, the Company created a Crisis Committee to keep up with it and monitor the main risks and adopt preventive and emergency measures to reduce the pandemic effects.
Since the beginning of the coronavirus pandemic, the Company and its subsidiaries acted in numerous initiatives to ensure the safety and security of its employees and the stability and continuity of its operations and partners, the financial solidity of the Company. All the activities of the companies controlled by the Company are classified as essential in the context of the measures adopted to face the pandemic.
The Company and its subsidiaries quickly adopted the work at home (expressed by home office) for the administrative public, with all the necessary support for the operational continuity. In addition to basic safety concerns with employees, companies implemented several initiatives aimed at welfare, such as virtual meetings, psychological support and concern for ergonomics, following the principle of valuing people.
The emergency measures and speed in answer to the first effects of the crisis, as well as initiatives to support the supply chain, were effective to keep the activities of the subsidiaries in operation, ensuring the delivery of essential services to the population and preserving the health and security of employees and partners.
Uncertainty remains uncertain to what extent the financial information, after March 31, 2021, may be affected by the commercial, operational and financial impacts of the pandemic, because it will depend on its duration and the impacts on economic activities, as well as government, business in response to the crisis. In this context, some financial risk assessments, projections and impairment tests, in connection with the preparation of these financial statements, may be impacted by the pandemic, and may adversely affect the financial position of the Company and its subsidiaries.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Operational impacts
The implemented measures of social isolation, restrictions on the movement of people and the operation of certain businesses due to pandemic continued to impact economic activity in Brazil in this first quarter of 2021. With respect the operations of the Company and its subsidiaries, the main effects were felt by Ultragaz, Ipiranga and Extrafarma.
Ultragaz's sales volume in the first quarter of 2021 decreased by 4% in relation to the same period of the previous year, due to the 5% reduction in sales in the bottled segment, mainly in the Southeast region, and influenced by the initial effects of the pandemic on the demand for LPG cylinders in March 2020, when there was a significant temporary increase in the product. In the bulk segment, the volume was 1% lower, due to lower sales to businesses and services, resulting from the effects of the pandemic, partially offset by higher sales to industries.
Ipiranga presented in the first quarter of 2021 a reduction of 2% in the volume sold in relation to the same period of the previous year, with a decrease of 6% in the Otto cycle, reflecting the restriction measures imposed by the pandemic, and a 1% growth in diesel. In 2020, January and February were months of growth compared to the previous year, and the first impacts of the pandemic were felt from the second half of March. In 2021, volumes started the year impacted by the pandemic, but the effects of the new restrictions from March 2021 were less severe than in the previous year.
At Extrafarma, during the first quarter of 2021, approximately 5% of stores were temporarily closed, during the red phase of the pandemic.
Main risks and associated measures
Credit risk - The actions taken by the Company and its subsidiaries throughout 2020 softened the impacts of the pandemic on Ipiranga’s clients' financial condition and, consequently, mitigated its potential effects on Ipiranga's default rates, that remained at the same levels as 2020. The effects of expected losses on doubtful accounts of quarter ended March 31, 2021 are disclosed in Notes 5 and 33.d.
Risk of realization of deferred tax assets - the Company and its subsidiaries realized technical feasibility study of the constitution and realization of deferred tax credits, considering the current projections approved by the Board of Directors for each business segment and did not identify the need for write-offs for the period ended on March 31, 2021.
Risks in financial instruments - the increase in volatility in financial markets may impact financial results according to sensitivity analyzes presented in Note 33.
Liquidity risk – The Company and its subsidiaries presented variations in their net debt position compatible with the results and the seasonality of their businesses.
The management of the Company and its subsidiaries continue maintaining discipline in control of costs and expenses to preserve cash in all business and selectivity in the allocation of capital without compromising sustainable business growth.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Clarifications on the cyber incident
According communication sent to the market on January 12, 2021 and January 25, 2021, the Company suffered on January 11, 2021 a cyber incident of type ransomware in its information technology environment.
As a precautionary measure, the Company interrupted its systems, partially affecting, for a short period of time, the operations of its subsidiaries. Immediately, all security and control measures were adopted to remedy the situation and as of January 14, 2021 the operational systems of the Company and its subsidiaries began to be gradually restored, with caution and security, according with the priority and relevance of each affected process. Since January 25, 2021, as communicated to the market on that date, all the critical information systems of the Company and its subsidiaries are in full operation.
The Company has a specific insurance policy for cyber incidents (see Note 34.b), which has already been duly activated.
2. Presentation of interim financial information and summary of significant accounting policies
The parent’s separate and consolidated interim financial information (“interim financial information”) were prepared in accordance with the International Accounting Standard (“IAS”) 34 – Interim Financial Reporting issued by the International Accounting Standards Board (“IASB”) and the in accordance with the pronouncement CPC 21 (R1) issued by the Accounting Pronouncements Committee (“CPC”) and approved by the Brazilian Securities and Exchange Commission (“CVM”).
All relevant specific information of the interim financial information, and only this information, were presented and correspond to that used by the Company’s and its subsidiaries’ Management.
The presentation currency of the Company’s interim financial information is the Brazilian Real which is the Company’s functional currency.
The Company and its subsidiaries applied the accounting policies described below in a consistent manner for all years presented in these interim financial information.
a. Recognition of revenue
Revenue of sales and services rendered is measured at the value of the consideration that the Company's subsidiaries expect to be entitled to, net of sales returns, discounts, amortization of contractual assets with customers and other deductions, if applicable, being recognized as the entity fulfills its performance obligation and freight mode of delivery. At Ipiranga, the revenue from sales of fuels and lubricants is recognized when the products are delivered to gas stations and to large consumers. At Ultragaz, revenue from sales of LPG is recognized when the products are delivered to customers at home, to independent dealers and to industrial and commercial customers. At Extrafarma, the revenue from sales of pharmaceuticals is recognized when the products are delivered to end user customers in own drugstores and when the products are delivered to independent resellers. At Oxiteno, the revenue from sales of chemical products is recognized when the products are delivered to industrial customers. At Ultracargo, the revenue provided from storage services is recognized as services are performed. At Abastece aí, the revenue provided from storage services of digital payments is recognized as services are performed. The breakdowns of revenues from sales and services are shown in Notes 26 and 32.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Amortization of contractual assets with customers for the exclusive rights in Ipiranga’s reseller service stations and the bonuses paid in performance obligation sales are recognized in the income statement as a deduction of the revenue from sale according to the conditions established in the agreements which is reviewed as per the changes occurred in the agreements (see Notes 2.f and 11).The am/pm franchising upfront fee received by Ipiranga is deferred and recognized in profit or loss as the entity fulfills each performance obligation throughout the terms of the agreements with the franchisees. For more information, see Note 23.a.
Deferred revenue from loyalty program is recognized in the income statement when the points are redeemed, on which occasion the costs incurred are also recognized in profit or loss. Deferred revenue of unredeemed points is also recognized in profit or loss when points expire. For more information, see Note 23.b.
Costs of products sold and services provided include goods (mainly fuels, lubricants, LPG, and pharmaceutical products), raw materials (chemicals and petrochemicals) and production, distribution, storage, and fulfillment costs.
Exchange variations and the results of derivative finance instruments are presented in the statement of profit and loss on financial expenses.
Research and development expenses are recognized in the statements of profit or loss in general and administrative expenses and amounted to R$ 16,634 for the three-month period ended March 31, 2021 (R$ 14,110 for the three-month period ended March 31, 2020).
b. Cash and cash equivalents
Includes cash, banks deposits, and short-term up to 90 days of maturity, highly liquid investments that are readily convertible into a known amount of cash and are subject to an insignificant risk of change in value. For further information on cash and cash equivalents of the Company and its subsidiaries, see Note 4.a.
c. Financial assets
The Company and its subsidiaries evaluated the classification and measurement of financial assets based on its business model of financial assets as follows:
- Amortized cost: financial assets held in order to collect contractual cash flows, solely principal and interest. The interest earned and the foreign currency exchange variation are recognized in profit or loss and balances are stated at acquisition cost plus the interest earned, using the effective interest rate method. Financial investments in guarantee of loans are classified as amortized cost.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
- Measured at fair value through other comprehensive income: financial assets that are acquired or originated for the purpose of collecting contractual cash flows or selling financial assets. The balances are stated at fair value, and the interest earned, and the foreign currency exchange variation are recognized in profit or loss. Differences between fair value and initial amount of financial investments plus the interest earned are recognized in equity in other comprehensive income in the “Valuation adjustments”. Accumulated gains and losses recognized in equity are reclassified to profit or loss at the time of their settlement. Substantially the financial investments in Bank Certificates of Deposit (“CDB”) and repurchase agreements are classified as measured at fair value through other comprehensive income.
- Measured at fair value through profit or loss: financial assets that were not classified as amortized cost or measured at fair value through other comprehensive income. The balances are stated at fair value and both the interest earned and the exchange variations and changes in fair value are recognized in the income statement. Investment funds and derivatives are classified as measured at fair value through profit or loss.
The Company and its subsidiaries use financial instruments for hedging purposes, applying the concepts described below:
- Hedge accounting – fair value hedge: financial instruments used to hedge exposure to changes in the fair value of an item, attributable to a particular risk, which can affect the entity’s statements of profit or loss. In the initial designation of the fair value hedge, the relationship between the hedging instrument and the hedged item is documented, including the objectives of risk management, the strategy in conducting the transaction, and the methods to be used to evaluate its effectiveness. Once the fair value hedge has been qualified as effective, the hedge item is also measured at fair value. Gains and losses from hedge instruments and hedge items are recognized the statements of profit or loss. The hedge accounting must be discontinued when the hedge becomes ineffective.
- Hedge accounting – cash flow hedge: financial instruments used to hedge the exposure to variability in cash flows that is attributable to a risk associated with an asset or liability or highly probable transaction or firm commitment that may affect the statements of profit or loss. The portion of the gain or loss on the hedging instrument that is determined to be effective relating to the effects of exchange rate effect, is recognized directly in equity in accumulated other comprehensive income as “Valuation adjustments” while the ineffective portion is recognized in the statements of profit or loss. Gains or losses on the hedging instrument relating to the effective portion of this hedge that had been recognized directly in accumulated other comprehensive income shall be recognized in profit or loss in the period in which the hedged item is recognized in profit or loss or as initial cost of non-financial assets, in the same line of the statement that the hedged item is recognized. The hedge accounting shall be discontinued when (i) the hedging relationship is canceled; (ii) the hedging instrument expires; and (iii) the hedging instrument no longer qualifies for hedge accounting. When hedge accounting is discontinued, gains and losses recognized in equity in other comprehensive income are reclassified to the statements of profit or loss in the period which the hedged item is recognized in profit or loss. If the transaction hedged is canceled or is not expected to occur, the cumulative gains and losses in equity in other comprehensive income shall be recognized immediately in profit or loss.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
- Hedge accounting – hedge of net investments in foreign operation: financial instruments used to hedge exposure on net investments in foreign subsidiaries due to the fact that the local functional currency is different from the functional currency of the Company. The portion of the gain or loss on the hedging instrument that is determined to be effective, referring to the exchange rate effect, is recognized directly in equity in accumulated other comprehensive income as cumulative translation adjustments, while the ineffective portion and the operating costs are recognized the statements of profit or loss. The gain or loss on the hedging instrument that has been recognized directly in accumulated other comprehensive income shall be recognized in the statements of profit or loss when the disposal of the foreign subsidiary occurs.
For further information on financial instruments, see Note 33.
d. Trade receivables and reseller financing
Trade receivables are recognized at the amount invoiced to the counterparty that the Company subsidiaries are entitled (see Notes 5.a and 33.d.3). The expected losses take into account, (i) at the initial recognition of the contract, the expected losses for the next 12 months or (ii) for the lifetime of the contract when the deterioration or improvement of the customers’ credit quality, considering the customers’ characteristics in each business segment. The amount of the expected credit losses is deemed by management to be sufficient to cover any loss on realization of trade receivables.
Reseller financing is provided at subsidized rate for renovation and upgrading of service stations, purchase of products and development of the automotive fuels and lubricants distribution market (see Notes 5.b and 33.d.3). The terms of reseller financing range between 12 and 60 months, with an average term of 40 months. The minimum and maximum subsisted interest rates are 0% per month and 1% per month respectively. These financing are remeasured at a market rate for working capital loans and the remeasurement adjustment between the market rate and the rate subsidized is recognized as a reduction to the reseller’s revenue at the beginning of the contract. Throughout the contract, the interest appropriated by the market rate is recognized to the financial result.
e. Inventories
Inventories are stated at the lower of acquisition cost or net realizable value (see Note 6). The cost value of inventory is measured using the weighted average cost and includes the costs of acquisition and processing directly and indirectly related to the units produced based on the normal capacity of production. Estimates of net realizable value are based on the average selling prices at the end of the reporting period, net of applicable direct selling expenses. Subsequent events related to the fluctuation of prices and costs are also considered, if relevant. If net realizable values are below inventory costs, a provision corresponding to this difference is recognized. Provisions are also made for obsolescence of products, materials, or supplies that (i) do not meet its subsidiaries’ specifications, (ii) have exceeded their expiration date, or (iii) are considered slow-moving inventory. This classification is made by management with the support of its industrial and operations teams.
f. Contractual assets with customers – exclusive rights
Exclusive rights disbursements as provided in Ipiranga’s agreements with reseller service stations and major consumers are recognized as contractual assets when paid and amortized according to the conditions established in the agreements (see Note 2.a and 11).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
g. Investments
Investments in subsidiaries are accounted for under the equity method of accounting in the interim financial information of the parent’s separate company (see Notes 3.b and 12.a). A subsidiary is an investee in which the investor is entitled to variable returns on investment and has the ability to interfere in its financial and operational activities. Usually the equity interest in a subsidiary is more than 50%.
Investments in associates and joint ventures are accounted for under the equity method of accounting in the interim financial information (see Note 12 items b and c). An associate is an investment, in which an investor has significant influence, that is, has the power to participate in the financial and operating decisions of the investee but does not exercise control. A joint venture is an investment in which the shareholders have the right to net assets on behalf of a joint control. Joint control is the agreement, which establish that decisions about the relevant activities of the investee require the consent from the parties that share control.
Other investments are stated at acquisition cost less provision for losses, unless the loss is considered temporary.
h. Right-of-use assets and leases payable
The Company and its subsidiaries recognized in the financial position, a right-of-use assets and the respective lease liabilities initially measured at the present value of future lease payments, considering the related contract costs (see Note 13). The amortization expenses of right-of-use assets is recognized in statement of profit or loss over the lease contract term. The liability is increased for interest and decreased by lease payments made. The interests are recognized in the statement of profit or loss using the effective interest rate method. The remeasurement of assets and liabilities based on the contractual index is recognized in the financial position, not having an effect in the result. In case of cancellation of the contract, the assets and respective liabilities are written off to the result, considering, if it is the case, any penalties provided in contractual clauses. The Company and its subsidiaries have no intention in purchasing the underlying asset. The Company and its subsidiaries periodically review the existence of an indication that the right-of-use assets may be impaired (see Note 2.u).
Right-of-use assets include amounts related to area port leases grants (see Note 34.c).
The Company and its subsidiaries apply the recognition exemptions to short-term leases of 12 months or less, and leases of low amount assets such. In these cases, the recognition of the lease expense in the statements of profit or loss is on a straight-line basis.
i. Property, plant, and equipment
Property, plant, and equipment (“PP&E”) is recognized at acquisition or construction cost, including financial charges incurred on PP&E under construction, as well as qualifying maintenance costs resulting from scheduled plant outages and estimated costs to remove, to decommission, or to restore assets (see Notes 2.n and 21), less accumulated depreciation and, when applicable, less provision for losses (see Note 14).
Depreciation is calculated using the straight-line method, over the periods mentioned in Note 14, taking into account the estimated useful lives of the assets, which are reviewed annually.
Leases hold improvements are depreciated over the shorter of the lease contract term and useful life of the property.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
j. Intangible assets
Intangible assets include assets acquired by the Company and its subsidiaries from third parties, and are recognized according to the criteria below:
- Goodwill is shown as intangible assets corresponding to the positive difference between the amount paid or payable to the seller and the fair value of the identifiable assets and liabilities assumed of the acquired entity. Goodwill is tested annually for impairment. Goodwill is allocated to the business segments, which represent the lowest level that goodwill is monitored for impairment testing purposes (see Note 15.a).
- Other intangible assets acquired from third parties, such as software, technology, and commercial property rights, are measured at the total acquisition cost and amortized using straight-line method, over the periods mentioned in Note 15, taking into account their useful lives, which are reviewed annually.
- The Decarbonization Credits (CBIOS) acquired are recorded at historical cost in intangible assets and are not amortized. These assets are used to settle the provision of CBIOS constituted.
The Company and its subsidiaries have not recognized intangible assets that were generated internally. The Company and its subsidiaries have goodwill and brands acquired in business combinations, which are evaluated as intangible assets with indefinite useful life (see Note 15 items a and e).
k. Other assets
Other assets are stated at the lower of cost and realizable value, including, if applicable, interest earned, monetary changes and changes in exchange rates incurred, less the provisions for losses and, if applicable, adjusted to present value.
l. Financial liabilities
The financial liabilities include trade payables, other payables, financing, loans, debentures, leases payable and derivative financial instruments. Financial liabilities are classified as “financial liabilities at fair value through profit or loss” or “financial liabilities at amortized cost”. The financial liabilities at fair value through profit or loss refer to derivative financial instruments, subscription warrants - indemnification, and financial liabilities designated as hedged items in a fair value hedge relationship upon initial recognition (see Note 2.c – Fair Value Hedge). The financial liabilities at amortized cost are stated at the initial transaction amount plus related charges and net of amortization and transaction costs. The charges are recognized in the statement of profit or loss using the effective interest rate method.
Transaction costs incurred and directly attributable to the activities necessary for contracting loans or for issuing bonds, as well as premiums and discounts upon issuance of debentures and other debt, are allocated to the instrument and amortized in the statement of profit or loss taking into its term, using the effective interest rate method (see Note 16.h).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
m. Income and social contribution taxes on income
Current and deferred income tax (“IRPJ”) and social contribution on net income tax (“CSLL”) are calculated based on their current rates. For the calculation of current IRPJ, the value of tax incentives is also considered. At the end of the fiscal year, the portion of the profit corresponding to these investment grants is allocated to the constitution of a tax incentive reserve, in subsidiaries shareholders' equity, and is excluded from the dividend calculation base and subsequently capitalized. Taxes are recognized based on the rates of IRPJ and CSLL provided for by the laws enacted on the last day of the interim financial information. The current rates in Brazil are 25% for IRPJ and 9% for CSLL. For further information about recognition and realization of IRPJ and CSLL, see Note 9.
For purposes of disclosure, deferred tax assets were offset against the deferred tax liability, IRPJ and CSLL, in the same taxable entity and the same tax authority.
n. Provision for asset retirement obligation – fuel tanks
The subsidiary Ipiranga has the legal obligation to remove the underground fuel tanks located at Ipiranga-branded service stations after a certain period. The estimated cost of the obligation to remove these fuel tanks is recognized as a liability when the tanks are installed. The estimated cost is recognized in PP&E and depreciated over the respective useful lives of the asset. The amounts recognized as a liability accrue inflation effect using the Amplified Consumer Price Index (“IPCA”) until the tank is removed (see Note 21). The estimated removal cost is reviewed and updated annually or when there is significant change in its amount and change in the estimated costs are recognized in statements of profit or loss when they become known.
o. Provisions for tax, civil, and labor risks
A provision for tax, civil and labor risks is recognized for quantifiable risks, when the chance of loss is more-likely-than-not in the opinion of management and internal and external legal counsel, and the amounts are recognized based on the evaluation of the outcomes of the legal proceedings (see Note 22).
p. Post-employment benefits
Post-employment benefits granted and to be granted to employees, retirees, and pensioners are based on an actuarial calculation prepared by an independent actuary and reviewed by management, using the projected unit credit method (see Note 20.b). The actuarial gains and losses are recognized in equity in cumulative other comprehensive income in the “Valuation adjustments”.
q. Other liabilities
Other liabilities are stated at known or measurable amounts and changes in exchange rates incurred. When applicable, other liabilities are recognized at present value, based on interest rates that reflect the term, currency, and risk of each transaction.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
r. Foreign currency transactions
Foreign currency transactions carried out by the Company or its subsidiaries are remeasured into their functional currency at the exchange rate prevailing at the date of each transaction. Outstanding monetary assets and liabilities of the Company and its subsidiaries are translated using the exchange rate at the date of the interim financial information. The effect of the difference between those exchange rates is recognized in financial results until the conclusion of each transaction.
s. Basis for translation of interim financial information of foreign subsidiaries
s.1 Subsidiaries with administrative autonomy
Assets and liabilities of the foreign subsidiaries, denominated in currencies other than Brazilian Real, which have administrative autonomy, are translated using the exchange rate at the date of the interim financial information. Revenues and expenses are translated using the average exchange rate of each year and equity is translated at the historical exchange rate of each transaction affecting equity. Gains and losses resulting from changes in these foreign investments are directly recognized in equity in the “cumulative translation adjustments” and will be recognized in profit or loss if and when these investments are disposed of. The balance in cumulative translation adjustments on March 31, 2021 was a gain of R$ 319,444 (gain of R$ 231,596 on December 31, 2020), see Note 25.g.2.
The foreign subsidiaries with functional currency different from the Company and which have administrative autonomy are listed below:
Subsidiary | Functional currency | Location |
Oxiteno México S.A. de C.V. | Mexican Peso | Mexico |
Oxiteno Servicios Corporativos S.A. de C.V. | Mexican Peso | Mexico |
Oxiteno Servicios Industriales S.A. de C.V. | Mexican Peso | Mexico |
Oxiteno USA LLC | U.S. Dollar | United States |
Oxiteno Uruguay S.A. (i) | U.S. Dollar | Uruguay |
(i) The subsidiary Oxiteno Uruguay S.A. (“Oxiteno Uruguay”) determined its functional currency as the U.S. dollar (“US$”), as its inventory sales, purchases of raw material inputs, and financing activities are performed substantially in this currency.
s.2 Subsidiaries without self-administrative autonomy
Assets and liabilities of the other foreign subsidiaries, which do not have administrative autonomy, are considered an extension of the activities of their parent company and are translated using the exchange rate at the date of the financial statements. Gains and losses resulting from changes in these foreign investments are directly recognized as financial result. The gain recognized in income for the three-month period ended March 31, 2021 amounted to R$ 11,925 (gain of R$ 28,021 for the three-month period ended March 31, 2020).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
t. Use of estimates, assumptions and judgments
The preparation of the interim financial information requires the use of estimates, assumptions, and judgments for the accounting and disclosure of certain assets, liabilities, and profit or loss. Therefore, the Company and subsidiaries’ management use the best information available at the date of preparation of the interim financial information, as well as the experience of past and current events, also considering assumptions regarding future events. The estimates and assumptions are reviewed periodically.
t.1 Judgments
Information on the judgments is included: in the determination of control in subsidiaries (Notes 2.g, 2.s.1, 3 and 12.a), the determination of joint control in joint venture (Notes 2.g, 12.a and 12.b) and the determination of significant influence in associates (Notes 2.g and 12.c).
t.2 Uncertainties related to the assumptions and estimates
The information regarding uncertainties related to the assumptions and estimates are included: in determining the fair value of financial instruments (Notes 2.c, 2.l, 4, 16 and 33), the determination of the expected losses on doubtful accounts (Notes 2.d, 5 and 33.d.3), the determination of provisions for losses of inventories (Notes 2.e and 6), the estimative of realization of deferred IRPJ and CSLL amounts (Notes 2.m and 9.a), the useful lives and discount rate of right-of-use assets (Notes 2.h and 13), the useful lives of PP&E (Notes 2.i and 14), the useful lives of intangible assets, and the determination of the recoverable amount of goodwill (Notes 2.j and 15.a), provisions for assets retirement obligations (Notes 2.n and 21), provisions for tax, civil, and labor risks (Notes 2.o and 22), estimates for the preparation of actuarial reports (Notes 2.p and 20.b) and the determination of fair value of subscription warrants – indemnification (Notes 24 and 33.j). The actual result of the transactions and information may differ from their estimates.
u. Impairment of assets
The Company and its subsidiaries review in every reporting period the existence of any indication that an asset may be impaired. To intangible assets with indefinite useful life the review is done annually. If there is an indication of impairment, the Company and its subsidiaries estimate the recoverable amount of the asset. Assets that cannot be evaluated individually are grouped in the smallest group of assets that generate cash inflow from continuous use and that are largely independent of cash flows of other assets (cash generating units “CGU”). The recoverable amount of assets or CGUs corresponds to the greater of their fair value net of applicable direct selling costs and their value in use.
The fair value less costs to sell is determined by the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date, net of costs of removing the asset, and direct incremental costs to bring an asset into condition for its sale, legal costs, and taxes.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
To assess the value in use, the projections of future cash flows, trends, and outlooks, as well as the effects of obsolescence, demand, competition, and other economic factors were considered. Such cash flows are discounted to their present values using the discount rate before tax that reflects market conditions for the period of impairment testing and the specific risks of the asset or CGU being evaluated. In cases where the expected discounted future cash flows are less than their carrying amount, an impairment loss is recognized for the amount by which the carrying value exceeds the fair value of these assets. Losses for impairment of assets are recognized in profit or loss. In case goodwill has been allocated to a CGU, the recognized losses are first allocated to reduce the corresponding goodwill. If the goodwill is not enough to absorb such losses, the surplus is allocated to the assets on a pro-rata basis. An impairment of goodwill cannot be reversed. For other assets, impairment losses may be reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if the impairment had not been recognized.
No impairment was recognized on March 31, 2021.
v. Business combination
A business combination is accounted applying the acquisition method. The cost of the acquisition is measured based on the consideration transferred and to be transferred, measured at fair value at the acquisition date. In a business combination, the assets acquired, and liabilities assumed are measured in order to classify and allocate them accordingly to the contractual terms, economic circumstances and relevant conditions on the acquisition date. The non-controlling interest in the acquired company is measured based on its interest in net assets identified in the acquired company. Goodwill is measured as the excess of the consideration transferred and to be transferred over the fair value of net assets acquired (identifiable assets and liabilities assumed, net). After the initial recognition, goodwill is measured at cost less any accumulated impairment losses. For impairment testing purposes, goodwill is allocated to the Company’s operating segments. When the cost of the acquisition is lower than the fair value of net assets acquired, a gain is recognized directly in the statement of profit or loss. Costs related to the acquisitions are recorded in the statement of profit or loss when incurred. For the three-month period ended on March 31, 2021 there are not business combinations.
w. Statements of value added
The statements of value added (“DVA”) are presented as an integral part of the interim financial information as applicable to publicly traded companies in Brazil, according to Law 11,638/07 and as supplemental information for the IFRS, which does not require the presentation of DVA.
x. Statements of cash flows indirect method
The Company and its subsidiaries present the interest paid on loans, financing, debentures, and leases payable in financing activities and present financial investments, net of redemptions, in the investing activities.
y. Adoption of the pronouncements issued by CPC and IASB
There are not standards, amendments and interpretations to IFRS issued by the IASB which are effective and could have impact in these interim financial information to March 31, 2021 that have not been adopted by the Company.
Some of the Company's subsidiaries have debts and derivative instruments indexed to LIBOR (see Notes 16.c.1, 16.d and 33.g). In order to be prepared for the transition of the IBORs, the Company is monitoring the pronouncements of the authorities, as well as the measures that have been adopted, aiming at the adaptation of the various financial instruments to the new benchmarks. Currently, there is no impact of the change in LIBOR on the Company's operations.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
z. Authorization for issuance of the financial statements
These interim financial information were authorized for issuance by the Board of Directors on May 5, 2021.
3. Principles of consolidation and investments in subsidiaries
a. Principles of consolidation
In the preparation of the consolidated interim financial information the investments of one company in another, balances of asset and liability accounts, revenues transactions, costs and expenses were eliminated, as well as the effects of transactions conducted between the companies. Non-controlling interests in subsidiaries are presented within consolidated equity and net income.
Consolidation of a subsidiary begins when the parent company obtains direct or indirect control over a company and ceases when the parent company loses control of a company. Income and expenses of a subsidiary acquired are included in the consolidated statement of profit or loss and comprehensive income from the date the parent company gains the control. Income and expenses of a subsidiary, in which the parent company loses control, are included in the consolidated statement of profit or loss and comprehensive income until the date the parent company loses control.
When necessary, adjustments are made to the interim financial information of subsidiaries to bring their accounting policies into line with the Company’s accounting policies.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Investments in subsidiaries
The consolidated financial statements include the following direct and indirect subsidiaries:
|
|
|
| % interest in the share | ||||||
|
|
|
| 03/31/2021 |
| 12/31/2020 | ||||
|
|
|
| Control |
| Control | ||||
| Location | Segment |
| Direct |
| Indirect |
| Direct |
| Indirect |
Ipiranga Produtos de Petróleo S.A. | Brazil | Ipiranga |
| 100 |
| - |
| 100 |
| - |
am/pm Comestíveis Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Icorban – Correspondente Bancário Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Ipiranga Trading Limited | British Virgin Islands | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Tropical Transportes Ipiranga Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Ipiranga Imobiliária Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Ipiranga Logística Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Oil Trading Importadora e Exportadora Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Iconic Lubrificantes S.A. | Brazil | Ipiranga |
| - |
| 56 |
| - |
| 56 |
Integra Frotas Ltda. | Brazil | Ipiranga |
| - |
| 100 |
| - |
| 100 |
Companhia Ultragaz S.A. | Brazil | Ultragaz |
| - |
| 99 |
| - |
| 99 |
Ultragaz Comercial Ltda. | Brazil | Ultragaz |
| - |
| 100 |
| - |
| 100 |
Nova Paraná Distribuidora de Gás Ltda. (1) | Brazil | Ultragaz |
| - |
| 100 |
| - |
| 100 |
Utingás Armazenadora S.A. (2) | Brazil | Ultragaz |
| - |
| 57 |
| - |
| 57 |
Bahiana Distribuidora de Gás Ltda. | Brazil | Ultragaz |
| - |
| 100 |
| - |
| 100 |
LPG International Inc. | Cayman Islands | Ultragaz |
| - |
| 100 |
| - |
| 100 |
Imaven Imóveis Ltda. | Brazil | Others |
| - |
| 100 |
| - |
| 100 |
Imifarma Produtos Farmacêuticos e Cosméticos S.A. | Brazil | Extrafarma |
| - |
| 100 |
| - |
| 100 |
UVC Investimentos Ltda. (3) | Brazil | Others |
| - |
| 99 |
| - |
| 99 |
Centro de Conveniências Millennium Ltda. and subsidiaries (4) | Brazil | Ipiranga |
| 100 |
| - |
| 100 |
| - |
Oxiteno S.A. Indústria e Comércio | Brazil | Oxiteno |
| 100 | �� | - |
| 100 |
| - |
Oxiteno Argentina Sociedad de Responsabilidad Ltda. | Argentina | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oleoquímica Indústria e Comércio de Produtos Químicos Ltda. | Brazil | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno Uruguay S.A. | Uruguay | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno México S.A. de C.V. | Mexico | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno Servicios Corporativos S.A. de C.V. | Mexico | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno Servicios Industriales S.A. de C.V. | Mexico | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno USA LLC | United States | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Global Petroleum Products Trading Corp. | Virgin Islands | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno Europe SPRL | Belgium | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno Colombia S.A.S | Colombia | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Oxiteno Shanghai LTD. | China | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Empresa Carioca de Produtos Químicos S.A. | Brazil | Oxiteno |
| - |
| 100 |
| - |
| 100 |
Ultracargo – Operações Logísticas e Participações Ltda. | Brazil | Ultracargo |
| 100 |
| - |
| 100 |
| - |
Terminal Químico de Aratu S.A. – Tequimar | Brazil | Ultracargo |
| - |
| 99 |
| - |
| 99 |
TEAS – Terminal Exportador de Álcool de Santos Ltda. | Brazil | Ultracargo |
| - |
| 100 |
| - |
| 100 |
Tequimar Vila do Conde Logística Portuária S.A. | Brazil | Ultracargo |
| - |
| 100 |
| - |
| 100 |
Ultrapar International S.A. | Luxembourg | Others |
| 100 |
| - |
| 100 |
| - |
SERMA – Ass. dos usuários equip. proc. de dados | Brazil | Others |
| - |
| 100 |
| - |
| 100 |
UVC – Fundo de investimento em participações multiestratégia investimento no exterior (5) | Brazil | Others |
| 100 |
| - |
| 100 |
| - |
Eaí Clube Automobilista S.A. (6) | Brazil | Abastece aí |
| 100 |
| - |
| 100 |
| - |
The percentages in the table above are rounded.
(1) Non operating company in closing phase.
(2) In October 2020 there was a change in the share capital of the company Utingás, which became controlled by Companhia Ultragaz S.A. (“Ultragaz”).
(3) Subsidiary created in January 2020 to provide valuation, business management and financial advisory services to UVC - Fundo de investimento em participações multiestratégia investimento no exterior. In September 2020 the company’s name was changed to “UVC Investimentos Ltda”.
(4) In May 2020 there was a change in the participation of the capital of the subsidiary Millennium which became a direct subsidiary of the Company.
(5) Fund constituted on January 2020, the UVC has the purpose to invest in promising companies that can leverage or complement the Company's business, besides to supporting the mapping and sharing of startups and new technologies.
(6) Subsidiary created in July 2020, focused on digital payments and electronic retail, uniting the “abastece aí” app and the “Km de Vantagens” program.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
4. Cash and cash equivalents, financial investments and hedge derivative financial instruments
Cash equivalents and financial investments, excluding cash and bank deposits, are substantially represented by investments: (i) in Brazil, in certificates of deposit of financial institutions linked to interest rate of the Interbank Deposits Interest Rate (“DI”), in repurchase agreement, financial bills, and in short term investments funds, whose portfolio comprised of Brazilian Federal Government bonds and in certificates of deposit of financial institutions; (ii) outside Brazil, in certificates of deposit of financial institutions and in short term investments funds, whose portfolio comprised of Federal Government bonds; and (iii) in currency and interest rate hedging instruments.
The financial assets were classified in Note 33.j, based on business model of financial assets of the Company and its subsidiaries.
Cash, cash equivalents and financial investments (consolidated) amounted to R$ 8,501,048 as of March 31, 2021 (R$ 8,672,160 as of December 31, 2020) are as follows:
a. Cash and cash equivalents
Cash and cash equivalents of the Company and its subsidiaries are presented as follows:
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Cash and bank deposits |
|
|
|
|
|
|
|
In local currency | 3,522 |
| 9,419 |
| 239,104 |
| 285,306 |
In foreign currency | - |
| - |
| 220,393 |
| 119,775 |
Financial investments considered cash equivalents |
|
|
|
|
|
|
|
In local currency |
|
|
|
|
|
|
|
Fixed-income securities | 943,235 |
| 939,230 |
| 3,441,797 |
| 2,241,852 |
In foreign currency |
|
|
|
|
|
|
|
Fixed-income securities | - |
| - |
| 31,909 |
| 14,561 |
Total cash and cash equivalents | 946,757 |
| 948,649 |
| 3,933,203 |
| 2,661,494 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Financial investments and currency and interest rate hedging instruments
The financial investments which are not classified as cash and cash equivalents are presented as follows:
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Financial investments |
|
|
|
|
|
|
|
In local currency |
|
|
|
|
|
|
|
Fixed-income securities and funds | 388,031 |
| 88,100 |
| 2,088,829 |
| 3,749,852 |
In foreign currency |
|
|
|
|
|
|
|
Fixed-income securities and funds | - |
| - |
| 1,378,702 |
| 1,278,940 |
Currency and interest rate hedging instruments (a) | - |
| - |
| 1,100,314 |
| 981,874 |
Total financial investments | 388,031 |
| 88,100 |
| 4,567,845 |
| 6,010,666 |
Current | 388,031 |
| 88,100 |
| 3,553,474 |
| 5,033,258 |
Non-current | - |
| - |
| 1,014,371 |
| 977,408 |
(a) Accumulated gains, net of income tax (see Note 33.i).
5. Trade receivables and reseller financing (Consolidated)
a. Trade receivables
The composition of trade receivables is as follows:
|
| 03/31/2021 |
| 12/31/2020 |
Domestic customers |
| 3,745,183 |
| 3,443,641 |
Domestic customers – related parties (see Note 8.a.2) |
| - |
| 151 |
Foreign customers |
| 399,765 |
| 326,442 |
Foreign customers – related parties (see Note 8.a.2) |
| 2,278 |
| 2,984 |
(-) Expected losses on doubtful accounts |
| (383,913) |
| (382,096) |
|
| 3,763,313 |
| 3,391,122 |
Current |
| 3,702,468 |
| 3,318,927 |
Non-current |
| 60,845 |
| 72,195 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The breakdown of trade receivables, gross of expected losses on doubtful accounts, is as follows:
|
|
|
| Past due | ||||
| Total |
| Current | less than 30 days | 31-60 days | 61-90 days | 91-180 days | more than 180 days |
03/31/2021 | 4,147,226 |
| 3,331,531 | 134,687 | 40,940 | 31,351 | 22,545 | 586,172 |
|
|
|
|
|
|
|
|
|
12/31/2020 | 3,773,218 |
| 2,963,163 | 124,606 | 27,970 | 21,389 | 47,169 | 588,921 |
The breakdown of expected losses on doubtful accounts, is as follows:
|
|
|
| Past due | ||||
| Total |
| Current | less than 30 days | 31-60 days | 61-90 days | 91-180 days | more than 180 days |
03/31/2021 | 383,913 |
| 26,054 | 2,270 | 2,232 | 1,946 | 10,798 | 340,613 |
|
|
|
|
|
|
|
|
|
12/31/2020 | 382,096 |
| 21,219 | 2,154 | 1,751 | 2,233 | 13,378 | 341,361 |
Movements in the allowance for expected losses on doubtful accounts are as follows:
Balance as of December 31, 2020 |
| 382,096 |
Additions |
| 68,648 |
Reversals |
| (66,400) |
Write-offs |
| (431) |
Balance as of March 31, 2021 |
| 383,913 |
For further information about the allowance for expected losses on doubtful accounts, see Note 33.d.3.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Reseller financing
The composition of reseller financing is as follows:
|
| 03/31/2021 |
| 12/31/2020 |
Reseller financing – Ipiranga |
| 1,146,176 |
| 1,165,395 |
(-) Expected losses on doubtful accounts |
| (200,358) |
| (197,011) |
|
| 945,818 |
| 968,384 |
Current |
| 538,368 |
| 549,129 |
Non-current |
| 407,450 |
| 419,255 |
The breakdown of reseller financing, gross of expected losses on doubtful accounts, is as follows:
|
|
|
| Past due | ||||
| Total |
| Current | less than 30 days | 31-60 days | 61-90 days | 91-180 days | more than 180 days |
03/31/2021 | 1,146,176 |
| 749,141 | 21,238 | 8,021 | 8,902 | 42,913 | 315,961 |
|
|
|
|
|
|
|
|
|
12/31/2020 | 1,165,395 |
| 787,904 | 10,230 | 15,237 | 21,200 | 28,989 | 301,835 |
The breakdown of expected losses on doubtful accounts, is as follows:
|
|
|
| Past due | ||||
| Total |
| Current | less than 30 days | 31-60 days | 61-90 days | 91-180 days | more than 180 days |
03/31/2021 | 200,358 |
| 20,290 | 1,664 | 761 | 915 | 20,452 | 156,276 |
|
|
|
|
|
|
|
|
|
12/31/2020 | 197,011 |
| 22,872 | 785 | 1,812 | 2,397 | 14,684 | 154,461 |
Movements in the allowance for expected losses on doubtful accounts are as follows:
Balance as of December 31, 2020 |
| 197,011 |
Additions |
| 23,409 |
Reversals |
| (19,752) |
Write-offs |
| (310) |
Balance as of March 31, 2021 |
| 200,358 |
For further information about the allowance for expected losses on doubtful accounts see Note 33.d.3.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
6. Inventories (Consolidated)
The composition of inventories is as follows:
| 03/31/2021 |
| 12/31/2020 | ||||||||
| Cost |
| Provision for losses |
| Net balance |
| Cost |
| Provision for losses |
| Net balance |
Fuels, lubricants and greases | 1,920,002 |
| (2,902) |
| 1,917,100 |
| 1,682,841 |
| (5,344) |
| 1,677,497 |
Finished goods | 700,824 |
| (20,285) |
| 680,539 |
| 646,180 |
| (22,281) |
| 623,899 |
Work in process | 1,431 |
| - |
| 1,431 |
| 1,450 |
| - |
| 1,450 |
Raw materials | 761,422 |
| (1,667) |
| 759,755 |
| 568,185 |
| (1,827) |
| 566,358 |
Liquefied petroleum gas (LPG) | 121,706 |
| (5,761) |
| 115,945 |
| 110,767 |
| (5,761) |
| 105,006 |
Consumable materials and other items for resale | 149,232 |
| (2,571) |
| 146,661 |
| 129,559 |
| (2,598) |
| 126,961 |
Pharmaceutical, hygiene, and beauty products | 507,385 |
| (2,581) |
| 504,804 |
| 521,689 |
| (2,611) |
| 519,078 |
Purchase for future delivery (1) | 338,500 |
| (463) |
| 338,037 |
| 198,986 |
| (464) |
| 198,522 |
Properties for resale | 27,532 |
| (107) |
| 27,425 |
| 27,532 |
| (107) |
| 27,425 |
| 4,528,034 |
| (36,337) |
| 4,491,697 |
| 3,887,189 |
| (40,993) |
| 3,846,196 |
(1) Refers substantially to ethanol, biodiesel and advances for fuel acquisition.
Movements in the provision for losses are as follows:
Balance as of December 31, 2020 | 40,993 |
Reversals to net realizable value adjustment | (836) |
Reversals of obsolescence and other losses | (3,820) |
Balance as of March 31, 2021 | 36,337 |
The breakdown of provisions for losses related to inventories is shown in the table below:
| 03/31/2021 |
| 12/31/2020 |
Net realizable value adjustment | 16,652 |
| 17,488 |
Obsolescence and other losses | 19,685 |
| 23,505 |
Total | 36,337 |
| 40,993 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
7. Taxes to recover
a. Recoverable taxes (Consolidated)
Recoverable taxes are substantially represented by credits of Tax on Goods and Services (“ICMS”, the Brazilian VAT), Contribution for Social Security Financing (“COFINS”) and Social Integration Program (“PIS”).
| 03/31/2021 |
| 12/31/2020 |
ICMS (a.1) | 1,226,328 |
| 1,129,325 |
PIS and COFINS (a.2) (a.3) | 1,226,910 |
| 1,297,029 |
Value-added tax (IVA) of foreign subsidiaries | 36,584 |
| 35,600 |
Others | 58,289 |
| 57,704 |
Total | 2,548,111 |
| 2,519,658 |
Current | 1,077,666 |
| 1,044,850 |
Non-current | 1,470,445 |
| 1,474,808 |
a.1 The recoverable ICMS net of provision for losses is substantially related to the following subsidiaries and operations:
(i) The subsidiaries Oxiteno S.A., Empresa Carioca de Produtos Químicos S.A. (“EMCA”) and Oleoquímica Indústria e Comércio de Produtos Químicos Ltda. (“Oleoquímica”) accumulate credits in the amount of R$ 214,789 (R$ 195,037 as of December 31, 2020) once predominantly carried out export operations, interstate outflow or deferred ICMS of products purchased within the State of Bahia;
(ii) The subsidiaries Ipiranga Produtos de Petróleo S.A. (“IPP”), Bahiana Distribuidora de Gás Ltda. (“Bahiana”), Ultragaz, AMPM and Iconic Lubrificantes S.A. (“Iconic”) have credits in the amount of R$ 826,011 (R$ 754,882 as of December 31, 2020) recognized, mainly, of the following nature: a) transactions of inputs and outputs of products subject to taxation of the own ICMS; b) interstate outflows of oil-related products, whose ICMS was prepaid by the supplier (Petróleo Brasileiro S.A. (“Petrobras”)), in the case of the subsidiaries Ipiranga, Bahiana and Ultragaz and c) credits for refunds of the ICMS-ST (tax substitution) overpaid when the estimated calculation base is used higher than the actual operation practiced by the subsidiary Ipiranga;
(iii) The subsidiary Extrafarma has ICMS credits and ICMS-ST (tax substitution) advances in the amount of R$ 185,528 (R$ 179,405 as of December 31, 2020) on the inflow and outflow of operations carried out by its distribution centers, mostly in the North and Northeast, as well as refunds of the ICMS-ST portion overpaid when the estimated calculation base is used higher than the actual operation.
The amounts of recoverable ICMS credits are classified as current assets and consumed by the operations itself, being a revolving credit, which means that the credits are monthly offset with the tax payable on sales and new credits are generated by the acquisition of inputs, as well as by the State's refund on tax substitution operations. Management estimates the realization of the credits classified in non-current assets within an average term of up to 10 years.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The estimated recovery of ICMS assets is stated as follows:
Up to 1 year | 529,626 |
From 1 to 2 years | 325,525 |
From 2 to 3 years | 183,852 |
From 3 to 5 years | 115,005 |
From 5 to 7 years | 66,305 |
From 7 to 10 years | 6,015 |
Total of recoverable ICMS, net of provision | 1,226,328 |
The provision for ICMS losses, in the amount of R$ 54,948 (R$ 52,338 as of December 31, 2020), relates to tax credits of the subsidiaries whose amounts are not included within the term determined by its policy.
a.2 The balance of PIS and COFINS refers, mainly, to credits recorded under Laws 10,637/2002 and 10,833/2003 in the amount of R$ 692,911 (R$ 651,051 as of December 31, 2020), whose consumption will occur through the offset of debts administered by the Brazilian Federal Revenue Service (“RFB”) in an estimated term of 2 years by management. The subsidiaries Extrafarma, Tropical Transportes Ipiranga Ltda (“Tropical”), EMCA, Oleoquímica and Oxiteno S.A. have credits in the amount of R$ 533,999 (R$ 645,978 as of December 31, 2020) resulting from a definitive favorable decision on the exclusion of ICMS from the calculation basis of PIS and COFINS (see item a.3 below). For these cases, management estimates the realization of these credits within up to 5 years.
a.3 On March 15, 2017, due to general repercussions, the STF decided that ICMS does not compose the basis for calculating PIS and COFINS. The subsidiaries Extrafarma, Tequimar, Tropical and Oxiteno SA have credits originated from final definitive decisions on the exclusion of ICMS from the PIS and COFINS calculation base (see note 22.d), having been the respective subsidies to prove the amounts to be refunded properly confirmed by management and recorded in results. In the first quarter of 2021 there are not additional recognition of credits in income (R$ 746,962 up to 2020).
The estimated recovery of PIS and COFINS credits is stated as follows:
Up to 1 year | 453,167 |
From 1 to 2 years | 401,062 |
From 2 to 3 years | 203,884 |
From 3 to 5 years | 168,797 |
Total of recoverable PIS and COFINS | 1,226,910 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Recoverable income tax and social contribution taxes
Relates to IRPJ and CSLL to be recovered by the Company and its subsidiaries arising from the tax advances of previous years, with management estimating the realization of these credits within up to 5 years.
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
IRPJ and CSLL | 79,442 |
| 87,359 |
| 665,232 |
| 627,285 |
Current | 39,997 |
| 47,913 |
| 404,985 |
| 366,080 |
Non-current | 39,445 |
| 39,446 |
| 260,247 |
| 261,205 |
8. Related parties
a. Related parties
The balances and transactions of the Company and its related parties are disclosed below:
a.1 Parent
| Assets |
| Liabilities |
| |||||
| Debentures |
| Other receivables |
| Related parties |
| Other payables |
| Financial income |
Ipiranga Produtos de Petróleo S.A. | 400,000(2) |
| 47,841 |
| - |
| - |
| 3,931(2) |
Cia Ultragaz S.A. | - |
| 11,001 |
| - |
| 8,469 |
| - |
Imifarma Produtos Farmacêuticos e Cosméticos S.A. | - |
| 7,872 |
| 4,730 |
| 138 |
| - |
Oxiteno S.A. Indústria e Comércio | - |
| 9,624 |
| - |
| 548 |
| - |
Terminal Químico de Aratu S.A. – Tequimar | - |
| 3,191 |
| - |
| - |
| - |
Eaí Clube Automobilista S.A. | - |
| 353 |
| - |
| - |
| - |
UVC Investimentos Ltda | - |
| 68 |
| - |
| - |
| - |
am/pm Comestíveis Ltda. | - |
| 17 |
| - |
| - |
| - |
Centro de Conveniências Millennium Ltda. | - |
| 12 |
| - |
| - |
| - |
Iconic Lubrificantes S/A | - |
| 6 |
| - |
| - |
| - |
SERMA - Ass. dos usuários equip. proc. de dados | - |
| - |
| - |
| 6,775 |
| - |
Others | - |
| - |
| - |
| 427 |
| - |
|
|
|
|
|
|
|
|
|
|
Total as of March 31, 2021 | 400,000 |
| 79,985 |
| 4,730 |
| 16,357 |
| 3,931 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| Assets |
| Liabilities |
| |||||
| Debentures |
| Other receivables |
| Related parties |
| Other payables |
| Financial income |
|
|
|
|
|
|
|
|
|
|
Ipiranga Produtos de Petróleo S.A. | 753,459(1) |
| 15,545 |
| - |
| - |
| 8,886(1) |
Cia Ultragaz S.A. | - |
| 10,147 |
| - |
| 8,469 |
| - |
SERMA - Ass. dos usuários equip. proc. de dados | - |
| 9,635 |
| - |
| - |
| - |
Imifarma Produtos Farmacêuticos e Cosméticos S.A. | - |
| 3,785 |
| 5,272 |
| 142 |
| - |
Oxiteno S.A. Indústria e Comércio | - |
| 4,476 |
| - |
| 548 |
| - |
Centro de Conveniências Millennium Ltda. | - |
| 3,700 |
| - |
| - |
| - |
Terminal Químico de Aratu S.A. – Tequimar | - |
| 1,695 |
| - |
| 277 |
| - |
Bahiana Distribuidora de Gás Ltda. | - |
| 831 |
| - |
| - |
| - |
UVC Investimentos Ltda | - |
| 69 |
| - |
| - |
| - |
Eaí Clube Automobilista S.A. | - |
| - |
| - |
| 35 |
| - |
am/pm Comestíveis Ltda. | - |
| 13 |
| - |
| - |
| - |
|
|
|
|
|
|
|
|
|
|
Total as of December 31, 2020 | 753,459 |
| 49,896 |
| 5,272 |
| 9,471 |
|
|
Total as of March 31, 2020 |
|
|
|
|
|
|
|
| 8,886 |
(1) In March 2016 the subsidiary IPP made its second private offering in one single series of 75 debentures at face value of R$ 10,000,000.00 (ten million Brazilian Reais) each, nonconvertible into shares and unsecured, with maturity on March 31, 2021 semiannual interest linked to DI being subscribed the total by the Company. The debentures were paid off on the maturity date.
(2) In March 2021 the subsidiary IPP made its nineth private offering in one single series of 400,000 debentures at face value of R$ 1,000.00 (one thousand Brazilian Reais) each, nonconvertible into shares and unsecured, with maturity on March 31, 2024 and semiannual interest linked to DI being subscribed the total by the Company.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
a.2 Consolidated
Balances and transactions between the Company and its subsidiaries and between subsidiaries have been eliminated in consolidation and are not disclosed in this note. The balances and transactions between the Company and its subsidiaries with other related parties are disclosed below:
| Loans | ||
| Assets |
| Liabilities |
Química da Bahia Indústria e Comércio S.A. (1) | - |
| 2,875 |
Routeasy Serviços de Assessoria Logística Ltda. (2) | 7,362 |
| - |
Others (1) | 490 |
| 731 |
Total as of March 31, 2021 | 7,852 |
| 3,606 |
| Loans | ||
| Assets |
| Liabilities |
Química da Bahia Indústria e Comércio S.A. (1) | - |
| 2,875 |
Routeasy Serviços de Assessoria Logística Ltda. (2) | 2,334 |
| - |
Others (1) | 490 |
| 836 |
Total as of December 31, 2020 | 2,824 |
| 3,711 |
(1) Loans contracted have indefinite terms and do not contain remuneration clauses.
(2) The loans contracted have a term of 36 months and can be extended by mutual agreement between the parties being remunerated by the DI plus 3% p.a.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| Commercial transactions | ||||||||||||
| Receivables (1) |
| Right-of-use assets |
| Payables (1) |
| Leases payable |
| Sales and services |
| Purchases |
| Expenses |
Oxicap Indústria de Gases Ltda. | - |
| - |
| 1,670 |
| - |
| 272 |
| 5,143 |
| - |
Refinaria de Petróleo Riograndense S.A. | - |
| - |
| 112,488 |
| - |
| - |
| 120,972 |
| - |
ConectCar Soluções de Mobilidade Eletrônica S.A. | - |
| - |
| 139 |
| - |
| 340 |
| 38 |
| - |
LA’7 Participações e Empreend. Imob. Ltda. (a) | - |
| 10,536 |
| - |
| 10,046 |
| - |
| - |
| 513 |
Chevron (Thailand) Limited | 243 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Brasil Oleos Basicos LTDA | - |
| - |
| 6 |
| - |
| - |
| - |
| - |
Chevron Lubricants Lanka PLC | 48 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Lubricants Oils S.A. | 364 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Marine Products | 1,445 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Oronite Brasil LTDA. | - |
| - |
| 45,743 |
| - |
| - |
| 39,215 |
| - |
Chevron Products Company | - |
| - |
| 59,647 |
| - |
| - |
| 153,060 |
| - |
Chevron Belgium NV | - |
| - |
| - |
| - |
| - |
| 1,369 |
| - |
Total as of March 31, 2021 | 2,100 |
| 10,536 |
| 219,693 |
| 10,046 |
| 612 |
| 319,797 |
| 513 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| Commercial transactions | ||||||||||||
| Receivables (1) |
| Right-of-use assets |
| Payables (1) |
| Leases payable |
| Sales and services |
| Purchases |
| Expenses |
Oxicap Indústria de Gases Ltda. | - |
| - |
| 1,772 |
| - |
| - |
| 4,857 |
| - |
Refinaria de Petróleo Riograndense S.A. | - |
| - |
| 65,215 |
| - |
| - |
| 75,313 |
| - |
ConectCar Soluções de Mobilidade Eletrônica S.A. | 151 |
| - |
| 104 |
| - |
| 562 |
| 30 |
| - |
LA’7 Participações e Empreend. Imob. Ltda. (a) | - |
| 8,635 |
| - |
| 8,044 |
| - |
| - |
| 394 |
Chevron (Thailand) Limited | 166 |
| - |
| 6 |
| - |
| - |
| - |
| - |
Chevron Brasil Oleos Basicos LTDA | - |
| - |
| 6 |
| - |
| - |
| - |
| - |
Chevron Latin America Marketing LLC | 118 |
| - |
| - |
| - |
|
|
|
|
|
|
Chevron Lubricants Lanka PLC | 3 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Lubricants Oils S.A. | 823 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Marine Products | 1,873 |
| - |
| - |
| - |
| - |
| - |
| - |
Chevron Oronite Brasil LTDA. | - |
| - |
| 37,482 |
| - |
| - |
| - |
| - |
Chevron Products Company | - |
| - |
| 87,754 |
| - |
| - |
| - |
| - |
Chevron Belgium NV | - |
| - |
| 785 |
| - |
| - |
| - |
| - |
Chevron Petroleum CO Colombia | 1 |
| - |
| - |
| - |
| - |
| - |
| - |
Total as of December 31, 2020 | 3,135 |
| 8,635 |
| 193,124 |
| 8,044 |
|
|
|
|
|
|
Total as of March 31, 2020 |
|
|
|
|
|
|
|
| 562 |
| 80,200 |
| 394 |
(1) Included in “domestic trade receivables”, “domestic trade payables” and “domestic trade payables – reverse factoring”, respectively.
(a) Refers to rental contracts of 15 drugstores owned by LA’7 as of March 31, 2021 and December 31, 2020, a company of the former shareholders of Extrafarma that are current shareholders of Ultrapar.
Purchase and sale transactions relate substantially to the purchase of raw materials, feedstock, transportation, and storage services based on similar market prices and terms with customers and suppliers with comparable operational performance. The operations of ConectCar Soluções de Mobilidade Eletrônica S.A. (“ConectCar”) refer to services provided. In the opinion of the Company and its subsidiaries’ management, transactions with related parties are not subject to credit risk, therefore, no provision for expected losses on accounts receivable or guarantees are recorded. Guarantees provided by the Company in loans of subsidiaries and affiliates are mentioned in Note 16.i.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Key executives (Consolidated)
The Company’s compensation strategy combines short and long-term elements, following the principles of alignment of interests and of maintaining a competitive compensation, and is aimed at retaining key officers and remunerating them adequately according to their attributed responsibilities and the value created to the Company and its shareholders.
Short-term compensation is comprised of: (a) fixed monthly compensation paid with the objective of rewarding the executive’s experience, responsibility, and his/her position’s complexity, and includes salary and benefits such as medical coverage, check-up, life insurance, and others; (b) variable compensation paid annually with the objective of aligning the executive’s and the Company’s objectives, which is linked to: (i) the business performance measured through its economic value creation and (ii) the fulfillment of individual annual goals that are based on the strategic plan and are focused on expansion and operational excellence projects, people development and market positioning, among others. Further details about the Deferred Stock Plan are contained in Note 8.c and about post-employment benefits in Note 20.b.
The expenses for compensation of its key executives (Company’s directors and executive officers) as shown below:
| 03/31/2021 |
| 03/31/2020 |
Short-term compensation | 10,729 |
| 11,107 |
Stock compensation | 3,187 |
| 2,657 |
Post-employment benefits | 617 |
| 617 |
Total | 14,533 |
| 14,381 |
c. Deferred stock plan (Consolidated)
Since 2003 Ultrapar has adopted a stock plan in which the executive has the usufruct of shares held in treasury until the transfer of the full ownership of the shares to those eligible members of management after five to seven years from the initial concession of the rights subject to uninterrupted employment of the participant during the period. The volume of shares and the executives eligible are determined by the Board of Directors, and there is no mandatory annual grant. The total number of shares to be used in the plan is subject to the number of shares in treasury. Ultrapar’s Board of Directors members are not eligible to participate in the stock plan. The fair value of the awards was determined on the grant date based on the market value of the shares on the B3, the Brazilian Securities, Commodities and Futures Exchange and the amounts are amortized between five to seven years from the grant date.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below summarizes shares granted to the Company and its subsidiaries’ management:
Grant date | Balance of number of shares granted | Vesting period | Market price of shares on the grant date (in R$ per share) | Total grant costs, including taxes |
| Accumulated recognized grant costs |
| Accumulated unrecognized grant costs |
March 4, 2016 | 253,330 | 2022 to 2023 | 32.72 | 17,147 |
| (14,709) |
| 2,438 |
December 10, 2014 | 266,660 | 2021 | 25.32 | 28,405 |
| (27,059) |
| 1,346 |
| 519,990 |
|
| 45,552 |
| (41,768) |
| 3,784 |
For the three-month period ended March 31, 2021 the amortization in the amount of R$ 1,014 (R$ 1,974 for the three-month period ended March 31, 2020) was recognized as a general and administrative expense.
The table below summarizes the changes of number of shares granted:
Balance on December 31, 2020 |
| 702,260 |
Shares vested and transferred |
| (182,270) |
Balance on March 31, 2021 |
| 519,990 |
In addition, on April 19, 2017, the Ordinary and Extraordinary General Shareholders’ Meeting (“OEGM”) of approved a new incentive plan based on shares (”Plan”), which establishes the general terms and conditions for the concession of common shares issued by the Company and held in treasury, that may or may not involve the granting of usufruct of part of these shares for later transfer of the ownership of the shares, in periods of three to six years, to directors or employees of the Company or its subsidiaries.
As a result of the Plan, common shares representing at most 1% of the Company's share capital may be delivered to the participants, which corresponds, at the date of approval of this Plan, to 11,128,102 common shares.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below summarizes the restricted and performance stock programs:
Program | Grant date | Balance of number of shares granted | Vesting period | Market price of shares on the grant date (in R$ per share) | Total grant costs, including taxes |
| Accumulated recognized grant costs |
| Accumulated unrecognized grant costs |
Restricted | October 1, 2017 | 240,000 | 2023 | 38.19 | 12,642 |
| (7,375) |
| 5,267 |
Restricted and performance | November 8, 2017 | 23,674 | 2021 to 2022 | 38.19 | 2,341 |
| (1,936) |
| 405 |
Restricted and performance | April 4, 2018 | 121,720 | 2021 to 2023 | 34.35 | 7,798 |
| (5,958) |
| 1,840 |
Restricted | September 19, 2018 | 80,000 | 2024 | 19.58 | 2,161 |
| (900) |
| 1,261 |
Restricted | September 24, 2018 | 80,000 | 2024 | 18.40 | 2,030 |
| (846) |
| 1,184 |
Restricted and performance | April 3, 2019 | 469,872 | 2022 to 2024 | 23.25 | 19,819 |
| (10,501) |
| 9,318 |
Restricted | September 2, 2019 | 440,000 | 2025 | 16.42 | 9,965 |
| (2,630) |
| 7,335 |
Restricted and performance | April 1, 2020 | 754,896 | 2023 to 2025 | 12.53 | 17,640 |
| (4,623) |
| 13,017 |
Restricted | September 16, 2020 | 700,000 | 2026 | 23.03 | 22,236 |
| (2,162) |
| 20,074 |
|
| 2,910,162 |
|
| 96,632 |
| (36,931) |
| 59,701 |
For the three-month period ended March 31, 2021, a general and administrative expense in the amount of R$ 4,586 was recognized in relation to the Plan (R$ 3,455 for the three-month period ended March 31, 2020).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
9. Income and social contribution taxes
a. Deferred income (IRPJ) and social contribution taxes (CSLL)
The Company and its subsidiaries recognize deferred tax assets and liabilities, which are not subject to the statute of limitations, mainly resulting from provision for differences between cash and accrual basis, tax loss carryforwards, negative tax bases and provisions for tax, civil, and labor risks. Deferred tax assets are sustained by the continued profitability of their operations. Deferred IRPJ and CSLL are recognized under the following main categories:
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Assets - deferred income and social contribution taxes on: |
|
|
|
|
|
|
|
Provision for impairment of assets | - |
| - |
| 73,902 |
| 75,231 |
Provisions for tax, civil, and labor risks | - |
| - |
| 138,464 |
| 138,516 |
Provision for post-employment benefits | 1,192 |
| 1,078 |
| 97,274 |
| 96,108 |
Provision for differences between cash and accrual basis (i) | - |
| - |
| 706,358 |
| 606,054 |
Goodwill | - |
| - |
| 5,084 |
| 5,161 |
Business combination – tax basis vs. accounting basis of goodwill | - |
| - |
| 34,189 |
| 75,515 |
Provision for asset retirement obligation | - |
| - |
| 16,198 |
| 15,728 |
Provision for suppliers | 7,689 |
| 4,284 |
| 70,223 |
| 49,501 |
Provision for profit sharing and bonus | 3,033 |
| 9,445 |
| 21,546 |
| 56,873 |
Leases payable | 1,066 |
| 976 |
| 48,852 |
| 41,932 |
Change in fair value of subscription warrants | 19,649 |
| 22,833 |
| 19,649 |
| 22,833 |
Provision for deferred revenue | - |
| - |
| 19,203 |
| 25,770 |
Other provisions | 95 |
| 95 |
| 13,933 |
| 14,917 |
Tax losses and negative basis for social contribution carryforwards (9.d) | 34,849 |
| 26,730 |
| 441,482 |
| 363,862 |
Total | 67,573 |
| 65,441 |
| 1,706,357 |
| 1,588,001 |
Offset liability balance of deferred IRPJ and CSLL | (5,413) |
| (448) |
| (644,994) |
| (613,290) |
Net balance of deferred taxes assets | 62,160 |
| 64,993 |
| 1,061,363 |
| 974,711 |
|
|
|
|
|
|
|
|
Liabilities - deferred income and social contribution taxes on: |
|
|
|
|
|
|
|
Revaluation of PP&E | - |
| - |
| 1,754 |
| 1,776 |
Leases payable | - |
| - |
| 1,667 |
| 1,895 |
Provision for differences between cash and accrual basis (i) | 28 |
| 448 |
| 479,575 |
| 402,780 |
Provision for goodwill | - |
| - |
| 92,242 |
| 92,242 |
Business combination – fair value of assets | - |
| - |
| 69,823 |
| 111,832 |
Temporary differences of foreign subsidiaries | 5,305 |
| - |
| 6,438 |
| - |
Provision for deferred revenue | - |
| - |
| 6,995 |
| 12,196 |
Other provisions | 80 |
| - |
| 3,916 |
| 3,301 |
Total | 5,413 |
| 448 |
| 662,410 |
| 626,022 |
Offset asset balance of deferred IRPJ and CSLL | (5,413) |
| (448) |
| (644,994) |
| (613,290) |
Net balance of deferred taxes liabilities | - |
| - |
| 17,416 |
| 12,732 |
(i) | Refers mainly to the income tax on the exchange variation of the derivate hedging instruments. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Changes in the net balance of deferred IRPJ and CSLL are as follows:
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Initial balance | 64,993 |
| 41,613 |
| 961,979 |
| 646,163 |
Deferred IRPJ and CSLL recognized in income of the period | (2,834) |
| (6,656) |
| 5,433 |
| (28,824) |
Deferred IRPJ and CSLL recognized in other comprehensive income | - |
| ‐ |
| 78,763 |
| 254,201 |
Others | 1 |
| 1 |
| (2,228) |
| 12,310 |
Final balance | 62,160 |
| 34,958 |
| 1,043,947 |
| 883,850 |
In order to evaluate the realization of deferred tax assets, the taxable income projections from business plans of each segment of the Company which indicates trends and perspectives, demand effects, competition and other economic factors, and that represent the management’s best estimate about the economic conditions existing during the period of realization of the deferred tax asset were taken into account.
The main key assumptions used to calculate the realization of deferred tax assets are: growth in Gross Domestic Product (“GDP”), exchange rate, basic interest rate (SELIC) and DI, inflation rate, commodity price index, among others. The balance of Company and its subsidiaries of R$ 1,706,357 and parent of R$ 67,573 was supported by the technical study on taxable profit projections for the realization of deferred tax assets, examined by the Fiscal Council and by the Audit and Risks Committee.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Reconciliation of income and social contribution taxes
IRPJ and CSLL are reconciled to the statutory tax rates as follows:
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Income before taxes | 134,997 |
| 167,685 |
| 238,451 |
| 305,979 |
Statutory tax rates – % | 34 |
| 34 |
| 34 |
| 34 |
Income and social contribution taxes at the statutory tax rates | (45,899) |
| (57,013) |
| (81,073) |
| (104,033) |
Adjustments to the statutory income and social contribution taxes: |
|
|
|
|
|
|
|
Nondeductible expenses (i) | (2,760) |
| (2,470) |
| (13,925) |
| (11,075) |
Nontaxable revenues (ii) | - |
| - |
| 5,047 |
| 6,935 |
Adjustment to estimated income (iii) | - |
| - |
| 84 |
| 2,002 |
Unrecorded deferred income and social contribution taxes carryforwards deferred (iv) | - |
| - |
| (23,273) |
| (42,648) |
Share of profit (loss) of subsidiaries, joint ventures and associates | 48,978 |
| 52,649 |
| (4,155) |
| (4,226) |
Other adjustments | (3,153) |
| 8 |
| 4,532 |
| (75) |
Income and social contribution taxes before tax incentives | (2,834) |
| (6,826) |
| (112,763) |
| (153,120) |
Tax incentives - SUDENE | - |
| - |
| 11,742 |
| 16,007 |
Income and social contribution taxes in the income statement | (2,834) |
| (6,826) |
| (101,021) |
| (137,113) |
Current | - |
| (170) |
| (106,454) |
| (108,289) |
Deferred | (2,834) |
| (6,656) |
| 5,433 |
| (28,824) |
Effective IRPJ and CSLL rates – % | 2.1 |
| 4.1 |
| 42.4 |
| 44.8 |
(i) | Consist of certain expenses that cannot be deducted for tax purposes under applicable tax legislation, such as expenses with fines, donations, gifts, losses of assets, negative effects of foreign subsidiaries and certain provisions |
(ii) | Consist of certain gains and income that are not taxable under applicable tax legislation, such as the reimbursement of taxes and the reversal of certain provisions. |
(iii) | Brazilian tax law allows for an alternative method of taxation for companies that generated gross revenues of up to R$ 78 million in their previous fiscal year. Certain subsidiaries of the Company adopted this alternative form of taxation, whereby income and social contribution taxes are calculated on a basis equal to 32% of operating revenues, as opposed to being calculated based on the effective taxable income of these subsidiaries. The adjustment to estimated income represents the difference between the taxation under this alternative method and the income and social contribution taxes that would have been paid based on the effective statutory rate applied to the taxable income of these subsidiaries. |
(iii) | See Note 9.d. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
c. Tax incentives – SUDENE
For belonging to the sectors of the economy considered priority for the subsidized areas, under the terms of the development program of region operated by the Superintendence for the Development of the Northeast (“SUDENE”), the following subsidiaries, in compliance with the current law have entitled to federal tax benefits providing for IRPJ reduction under:
Subsidiary | Units | Incentive - % | Expiration |
Bahiana Distribuidora de Gás Ltda. | Mataripe base | 75 | 2024 |
| Caucaia base | 75 | 2025 |
| Juazeiro base | 75 | 2026 |
| Aracaju base | 75 | 2027 |
| Suape base | 75 | 2027 |
Terminal Químico de Aratu S.A. – Tequimar | Suape terminal (1) | 75 | 2020 |
| Aratu terminal | 75 | 2022 |
| Itaqui terminal | 75 | 2025 |
Oleoquímica Indústria e Comércio de Produtos Químicos Ltda. | Camaçari plant | 75 | 2021 |
Oxiteno S.A. Indústria e Comércio (2) | Camaçari plant | 75 | 2026 |
Empresa Carioca de Produtos Químicos S.A. | Camaçari plant | 75 | 2026 |
(1) | Based on the legislation in force the enterprise belongs to the sectors identified as priorities for the development of the Northeast region of Brazil. Combined with Tequimar's successful track record in meeting the requirements for maintaining and renewing the incentive, as well as in the fact that several investments have been made in the modernization of the production process of the unit that is the object of the benefit Suape Terminal, the request for the extension of the incentive for another 10 years filed in 2021 at SUDENE and, when approved, will have retroactive effect since January 2021. |
(2) | The request to transfer the right to reduce the IRPJ to Oxiteno S.A. was submitted to SUDENE and waits decision. |
d. Income and social contribution taxes carryforwards
In March 31, 2021 the Company and certain subsidiaries had tax loss carryforwards related to income tax (IRPJ) of R$ 1,923,872 (R$ 1,687,482 as of December 31, 2020) and negative basis of CSLL of R$ 1,925,622 (R$ 1,689,232 as of December 31, 2020), whose compensations are limited to 30% of taxable income in a given tax year, which do not expire.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The balances which are constituted of deferred taxes related to income tax loss carryforwards and negative basis of social contribution base are as follows:
| 03/31/2021 |
| 12/31/2020 |
Oxiteno S.A. | 247,413 |
| 205,604 |
Extrafarma | 72,318 |
| 72,318 |
Oil Trading | 56,567 |
| - |
Ultrapar | 35,016 |
| 27,736 |
Ipiranga | 12,343 |
| 44,537 |
Abastece aí | 11,975 |
| 7,362 |
Iconic | 4,656 |
| 5,691 |
Tequimar Vila do Conde | 1,079 |
| 489 |
Ultracargo | 115 |
| 107 |
UVC Investimentos | - |
| 18 |
| 441,482 |
| 363,862 |
The balances which are not constituted of deferred taxes related to income tax loss carryforwards and negative basis of social contribution base are as follows:
| 03/31/2021 |
| 12/31/2020 |
Extrafarma | 298,134 |
| 294,400 |
Integra Frotas | 8,820 |
| 7,802 |
Millennium | 757 |
| 640 |
| 307,711 |
| 302,842 |
In addition, certain foreign subsidiaries have income tax loss carryforwards, as shown below, subject to local compensation rules.
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
| US$ |
| US$ |
| R$ |
| R$ |
Oxiteno USA | 227,003 |
| 217,837 |
| 1,293,305 |
| 1,132,035 |
Oxiteno Uruguay | 7,943 |
| 7,943 |
| 45,255 |
| 41,279 |
Ultrapar International | 5,518 |
| 6,261 |
| 31,440 |
| 32,535 |
| 240,464 |
| 232,041 |
| 1,370,000 |
| 1,205,849 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
10. Prepaid expenses
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Rents | - |
| - |
| 20,909 |
| 30,400 |
Advertising and publicity | - |
| - |
| 25,673 |
| 17,752 |
Deferred stock plan, net (see Note 8.c) | 2,750 |
| 2,970 |
| 8,885 |
| 9,900 |
Insurance premiums | 7,185 |
| 971 |
| 66,753 |
| 58,675 |
Software maintenance | 3,855 |
| 3,105 |
| 28,801 |
| 24,233 |
Employee benefits | 556 |
| 526 |
| 10,297 |
| 8,924 |
IPVA and IPTU | 767 |
| - |
| 15,119 |
| 2,632 |
Contribution - private pension fund (see Note 20.a) | - |
| - |
| 31,332 |
| 36,068 |
Other prepaid expenses | - |
| - |
| 13,692 |
| 14,045 |
| 15,113 |
| 7,572 |
| 221,461 |
| 202,629 |
Current | 12,032 |
| 3,684 |
| 162,002 |
| 132,122 |
Non-current | 3,081 |
| 3,888 |
| 59,459 |
| 70,507 |
11. Contractual assets with customers – exclusive rights (Consolidated)
Refers to exclusive rights disbursements of Ipiranga’s agreements with reseller service stations and major consumers that are recognized at the time of their occurrence and recognized as a reductions of the revenue from sales and services in the statement of profit or loss according to the conditions established in the agreement, being reviewed as changes occur under the terms of the agreements. In March 31, 2021, the contracts amortization weighted average term was five years.
Balance and changes are shown below:
Balance as of December 31, 2019 |
| 1,465,989 |
Additions |
| 160,321 |
Amortization |
| (82,860) |
Transfer |
| (4,137) |
Balance as of March 31, 2020 |
| 1,539,313 |
Current |
| 473,483 |
Non-current |
| 1,065,830 |
Balance as of December 31, 2020 |
| 1,706,331 |
Additions |
| 108,107 |
Amortization |
| (48,214) |
Transfer |
| (4,749) |
Balance as of March 31, 2021 |
| 1,761,475 |
Current |
| 490,869 |
Non-current |
| 1,270,606 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
12. Investments
The table below presents the amount reconciliation of share of profit (loss) of subsidiaries, joint ventures and associates:
|
| Parent |
| Consolidated | ||||
|
| 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Subsidiaries | 12.a | 143,122 |
| 163,385 |
| - |
| - |
Joint ventures | 12.b | 931 |
| (8,536) |
| (12,566) |
| (13,009) |
Associates | 12.c | - |
| - |
| 344 |
| 581 |
|
| 144,053 |
| 154,849 |
| (12,222) |
| (12,428) |
a. Subsidiaries and joint venture (Parent)
The table below presents the full amounts of statements of financial position and statements of profit or loss of subsidiaries and joint venture:
| 03/31/2021 | |||||||||
| Subsidiaries |
|
|
| Joint venture | |||||
| Ultracargo - Operações Logísticas e Participações Ltda. | Oxiteno S.A. Indústria e Comércio | Ipiranga Produtos de Petróleo S.A. | Ultrapar International S.A. |
| UVC | Centro de Conveniências Millennium Ltda. | Eaí Clube Automobilista S.A. |
| Refinaria de Petróleo Riograndense S.A. |
Number of shares or units held | 11,839,764 | 35,102,127 | 224,467,228,244 | 49,995 |
| 150 | 15,194,789 | 80,000,000 |
| 5,078,888 |
Assets | 1,473,411 | 8,211,550 | 20,144,677 | 8,049,326 |
| 9,988 | 11,340 | 96,028 |
| 684,289 |
Liabilities | 2,805 | 6,745,781 | 12,833,106 | 8,085,398 |
| 31 | 2,097 | 35,879 |
| 683,426 |
Equity | 1,470,606 | 1,465,769 (*) | 7,311,575 (*) | (36,072) |
| 9,957 | 9,243 | 60,149 |
| 863 |
Net revenue from sales and services | - | 1,101,966 | 19,059,442 | - |
| - | 5,928 | 14,165 |
| 478,395 |
Net income (loss) | 50,194 | (82,877) (*) | 189,952 (*) | (2,374) |
| (2,041) | (345) | (9,387) |
| 2,803 |
% of capital held | 100 | 100 | 100 | 100 |
| 100 | 100 | 100 |
| 33 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| 12/31/2020 | ||||||||
| Subsidiaries |
| Joint venture | ||||||
| Ultracargo - Operações Logísticas e Participações Ltda. | Oxiteno S.A. Indústria e Comércio | Ipiranga Produtos de Petróleo S.A. | Ultrapar International S.A. | UVC | Centro de Conveniências Millennium Ltda. | Eaí Clube Automobilista S.A. |
| Refinaria de Petróleo Riograndense S.A. |
Number of shares or units held | 11,839,764 | 35,102,127 | 224,467,228,244 | 49,995 | 150 | 15,194,789 | 80,000,000 |
| 5,078,888 |
Assets | 1,423,217 | 8,142,503 | 20,612,986 | 7,239,492 | 4,385 | 14,902 | 85,858 |
| 462,990 |
Liabilities | 2,861 | 6,435,367 | 13,288,033 | 7,273,193 | 27 | 5,314 | 22,072 |
| 469,300 |
Equity | 1,420,356 | 1,707,136 (*) | 7,324,953(*) | (33,701) | 4,358 | 9,588 | 63,786 |
| (6,310) |
% of capital held | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| 33 |
| 03/31/2020 | ||||||
| Subsidiaries | Joint venture | |||||
| Ultracargo - Operações Logísticas e Participações Ltda. | Oxiteno S.A. Indústria e Comércio | Ipiranga Produtos de Petróleo S.A. | Ultrapar International S.A. | UVC | Refinaria de Petróleo Riograndense S.A. | |
Number of shares or units held | 11,839,764 | 35,102,127 | 224,467,228,244 | 49,995 | 150 | 5,078,888 | |
Net revenue from sales and services | ‐ | 852,587 | 17,542,475 | ‐ | ‐ | 477,360 | |
Net income (loss) | 47,264 | (24,640) (*) | 161,752 (*) | (19,342) | (1,657) | (25,704) | |
% of capital held | 100 | 100 | 100 | 100 | 100 | 33 |
(*) | Adjusted for intercompany unrealized profits. |
The percentages in the table above are rounded.
The financial information from our business segments is detailed in Note 32.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Balances and changes in subsidiaries and joint venture are as follows:
|
| Subsidiaries |
| Joint venture |
|
| ||||||||||||||
|
| Ultracargo - Operações Logísticas e Participações Ltda. |
| Oxiteno S.A. Indústria e Comércio |
| Ipiranga Produtos de Petróleo S.A. |
| UVC |
| Centro de Conveniências Millennium Ltda. |
| Eaí Clube Automobilista S.A. |
| Ultrapar International S.A. |
| Total |
| Refinaria de Petróleo Riograndense S.A. |
| Total |
Balance as of December 31, 2020 |
| 1,420,356 |
| 1,707,136 |
| 7,324,953 |
| 4,358 |
| 9,588 |
| 63,786 |
| ‐ |
| 10,530,177 |
| ‐ |
| 10,530,177 |
Share of profit (loss) of subsidiaries and joint venture |
| 50,194 |
| (82,877) |
| 189,952 |
| (2,041) |
| (345) |
| (9,387) |
| (2,374) |
| 143,122 |
| 931 |
| 144,053 |
Dividends |
| - |
| (125,114) |
| (204,524) |
| - |
| - |
| - |
| - |
| (329,638) |
| - |
| (329,638) |
Equity instrument granted |
| 200 |
| 218 |
| 786 |
| - |
| - |
| 750 |
| - |
| 1,954 |
| - |
| 1,954 |
Valuation adjustment of subsidiaries (i) |
| (144) |
| (121,442) |
| 329 |
| - |
| - |
| - |
| - |
| (121,257) |
| 1,448 |
| (119,809) |
Translation adjustments of foreign-based subsidiaries |
| - |
| 87,848 |
| - |
| - |
| - |
| - |
| - |
| 87,848 |
| - |
| 87,848 |
Capital increase in cash |
| - |
| - |
| - |
| 7,640 |
| - |
| 5,000 |
| - |
| 12,640 |
| - |
| 12,640 |
Transactions with shareholders - changes in participation |
| - |
| - |
| 79 |
| - |
| - |
| - |
| - |
| 79 |
| - |
| 79 |
Transfer to (from) provision for short-term liabilities |
| - |
| - |
| - |
| - |
| - |
| - |
| 2,374 |
| 2,374 |
| (2,096) |
| 278 |
Balance as of March 31, 2021 |
| 1,470,606 |
| 1,465,769 |
| 7,311,575 |
| 9,957 |
| 9,243 |
| 60,149 |
| - |
| 10,327,299 |
| 283 |
| 10,327,582 |
(i) | Refers, substantially to the income on the hedging instruments of exchange rate related to firm commitment and highly probable transactions designated as cash flow hedges, see Note 33.h.2. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
|
| Subsidiaries |
| Joint venture |
|
| ||||||||||
|
| Ultracargo Operações Logísticas e Participações Ltda. |
| Oxiteno S.A. Indústria e Comércio |
| Ipiranga Produtos de Petróleo S.A. |
| Ultrapar International S.A. |
| UVC |
| Total |
| Refinaria de Petróleo Riograndense S.A. |
| Total |
Balance as of December 31, 2019 |
| 1,261,997 |
| 1,803,209 |
| 7,020,747 |
| (27,497) |
| ‐ |
| 10,058,456 |
| 18,792 |
| 10,077,248 |
Share of profit (loss) of subsidiaries and joint venture |
| 47,264 |
| (24,640) |
| 161,758 |
| (19,340) |
| (1,657) |
| 163,385 |
| (8,536) |
| 154,849 |
Dividends |
| ‐ |
| (86,907) |
| (129,249) |
| ‐ |
| ‐ |
| (216,156) |
| ‐ |
| (216,156) |
Equity instrument granted |
| 125 |
| 201 |
| 1,809 |
| ‐ |
| ‐ |
| 2,135 |
| ‐ |
| 2,135 |
Valuation adjustment of subsidiaries |
| 60 |
| (420,414) |
| 321 |
| ‐ |
| ‐ |
| (420,033) |
| 2,501 |
| (417,532) |
Translation adjustments of foreign-based subsidiaries |
| ‐ |
| 121,874 |
| ‐ |
| ‐ |
| ‐ |
| 121,874 |
| ‐ |
| 121,874 |
Capital increase in cash |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 3,010 |
| 3,010 |
| ‐ |
| 3,010 |
Loss due to the payments fixed dividends to preferred shares |
| (35) |
| ‐ |
| (481) |
| ‐ |
| ‐ |
| (516) |
| ‐ |
| (516) |
Balance as of March 31, 2020 |
| 1,309,411 |
| 1,393,323 |
| 7,054,905 |
| (46,837) |
| 1,353 |
| 9,712,155 |
| 12,757 |
| 9,724,912 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
|
| Provision for short-term liabilities |
|
| ||
|
| Investiments in subsidiaries |
| Joint venture |
|
|
|
| Ultrapar International S.A. |
| Refinaria de Petróleo Riograndense S.A. |
| Total |
Balance as of December 31, 2020 |
| 33,698 |
| 2,096 |
| 35,794 |
Transfer to (from) provision for short-term liabilities |
| 2,374 |
| (2,096) |
| 278 |
Balance as of March 31, 2021 |
| 36,072 |
| - |
| 36,072 |
b. Joint ventures (Consolidated)
The Company holds an interest in Refinaria de Petróleo Riograndense (“RPR”), which is primarily engaged in oil refining.
The subsidiary Ultracargo – Operações Logísticas e Participações Ltda. (“Ultracargo Participações”) holds an interest in União Vopak – Armazéns Gerais Ltda. (“União Vopak”), which is primarily engaged in liquid bulk storage in the port of Paranaguá.
The subsidiary IPP holds an interest in ConectCar, which is primarily engaged in automatic payment of tolls and parking in the States of Bahia, Ceará, Espírito Santo, Goiás, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Paraná, Pernambuco, Rio de Janeiro, Rio Grande do Sul, Santa Catarina, São Paulo and Distrito Federal.
The subsidiary IPP participates in the port concession BEL02A at the port of Miramar, in Belém (PA), through Latitude Logística Portuária S.A. (“Latitude”); for the port of Vitória (ES), participates through Navegantes Logística Portuária S.A. (“Navegantes”); in Cabedelo (PB), has participation in the Nordeste Logística I S.A. ("Nordeste Logística I"), Nordeste Logística II S.A. ("Nordeste Logística II") and Nordeste Logística III S.A. ("Nordeste Logística III”) (see Note 34.c).
These investments of joint ventures Latitude, Navegantes Logística I, Logística II and Logística III are accounted for under the equity method of accounting based on their financial statements as of February 28, 2021, while the other companies are accounted for under the equity method of accounting based on their interim financial information as of March 31, 2021.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Balances and changes in joint ventures are as follows:
| União Vopak |
| RPR |
| ConectCar |
| Latitude Logística |
| Navegantes Logística |
| Nordeste Logística I |
| Nordeste Logística II |
| Nordeste Logística III |
| Total |
Balance as of December 31, 2020 | 7,734 |
| ‐ |
| 81,180 |
| 10,351 |
| 21,624 |
| 824 |
| 7,676 |
| 9,711 |
| 139,100 |
Capital increase | - |
| - |
| 15,000 |
| - |
| - |
| - |
| - |
| - |
| 15,000 |
Valuation adjustments | - |
| 1,448 |
| - |
| - |
| - |
| - |
| - |
| - |
| 1,448 |
Share of profit (loss) of joint ventures | 476 |
| 931 |
| (7,030) |
| (6,273) |
| (544) |
| (37) |
| (42) |
| (47) |
| (12,566) |
Transfer from provision for short-term liabilities | - |
| (2,096) |
| - |
| - |
| - |
| - |
| - |
| - |
| (2,096) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2021 | 8,210 |
| 283 |
| 89,150 |
| 4,078 |
| 21,080 |
| 787 |
| 7,634 |
| 9,664 |
| 140,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| União Vopak |
| RPR |
| ConectCar |
| Latitude Logística |
| Navegantes Logística |
| Nordeste Logística I |
| Nordeste Logística II |
| Nordeste Logística III |
| Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2019 | 7,342 |
| 18,792 |
| 82,818 |
| 10,351 |
| 23,581 |
| 1,930 |
| 4,183 |
| 4,079 |
| 153,076 |
Valuation adjustments | ‐ |
| 2,501 |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| 2,501 |
Share of profit (loss) of joint ventures | 65 |
| (8,536) |
| (4,538) |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| ‐ |
| (13,009) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2020 | 7,407 |
| 12,757 |
| 78,280 |
| 10,351 |
| 23,581 |
| 1,930 |
| 4,183 |
| 4,079 |
| 142,568 |
| Provision for short-term liabilities |
| RPR |
Balance as of December 31, 2020 | 2,096 |
Transfer from provision for short-term liabilities | (2,096) |
Balance as of March 31, 2021 | - |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below presents the statements of financial position and statements of profit or loss of joint ventures:
| 03/31/2021 | ||||||||||||||
| União Vopak |
| RPR |
| ConectCar |
| Latitude Logística |
| Navegantes Logística |
| Nordeste Logística I |
| Nordeste Logística II |
| Nordeste Logística III |
Current assets | 9,864 |
| 515,791 |
| 151,080 |
| 8,268 |
| 24,400 |
| 869 |
| 18,433 |
| 21,393 |
Non-current assets | 9,832 |
| 168,482 |
| 172,753 |
| 40,006 |
| 166,395 |
| 6,031 |
| 18,010 |
| 30,503 |
Current liabilities | 3,132 |
| 576,525 |
| 144,830 |
| 112 |
| 165 |
| 22 |
| 25 |
| 26 |
Non-current liabilities | 144 |
| 106,901 |
| 703 |
| 40,007 |
| 127,383 |
| 4,516 |
| 13,516 |
| 22,877 |
Equity | 16,420 |
| 847 |
| 178,300 |
| 8,155 |
| 63,247 |
| 2,362 |
| 22,902 |
| 28,993 |
Net revenue from sales and services | 5,078 |
| 478,395 |
| 20,283 |
| - |
| - |
| - |
| - |
| - |
Costs, operating expenses and income | (3,656) |
| (472,660) |
| (34,058) |
| (12,546) |
| (265) |
| (110) |
| (126) |
| (142) |
Net finance income and income and social contribution taxes | (470) |
| (2,932) |
| (285) |
| - |
| (1,360) |
| - |
| - |
| - |
Net income (loss) | 952 |
| 2,803 |
| (14,060) |
| (12,546) |
| (1,625) |
| (110) |
| (126) |
| (142) |
Number of shares or units held | 29,995 |
| 5,078,888 |
| 264,768,000 |
| 4,383,881 |
| 22,298,195 |
| 681,637 |
| 3,933,265 |
| 4,871,241 |
% of capital held | 50 |
| 33 |
| 50 |
| 50 |
| 33 |
| 33 |
| 33 |
| 33 |
The percentages in the table above are rounded.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| 12/31/2020 | ||||||||||||
| União Vopak |
| RPR |
| ConectCar |
| Navegantes Logística |
| Nordeste Logística I |
| Nordeste Logística II |
| Nordeste Logística III |
Current assets | 8,510 |
| 291,720 |
| 161,371 |
| 24,691 |
| 972 |
| 18,531 |
| 21,513 |
Non-current assets | 9,796 |
| 171,270 |
| 169,843 |
| 166,389 |
| 6,021 |
| 18,005 |
| 30,503 |
Current liabilities | 2,698 |
| 363,388 |
| 168,854 |
| 8 |
| 4 |
| 5 |
| 6 |
Non-current liabilities | 140 |
| 105,912 |
| ‐ |
| 126,201 |
| 4,516 |
| 13,504 |
| 22,877 |
Equity | 15,468 |
| (6,310) |
| 162,360 |
| 64,871 |
| 2,473 |
| 23,027 |
| 29,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares or units held | 29,995 |
| 5,078,888 |
| 248,768,000 |
| 22,298,195 |
| 681,637 |
| 3,933,265 |
| 4,871,241 |
% of capital held | 50 |
| 33 |
| 50 |
| 33 |
| 33 |
| 33 |
| 33 |
| 03/31/2020 | ||||
| União Vopak |
| RPR |
| ConectCar |
Net revenue from sales and services | 3,624 |
| 477,360 |
| 23,652 |
Costs, operating expenses and income | (3,419) |
| (500,926) |
| (35,961) |
Net finance income and income and social contribution taxes | (75) |
| (2,138) |
| 3,234 |
Net income (loss) | 130 |
| (25,704) |
| (9,075) |
Number of shares or units held | 29,995 |
| 5,078,888 |
| 228,768,000 |
% of capital held | 50 |
| 33 |
| 50 |
The percentages in the table above are rounded
1
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
c. Associates (Consolidated)
Subsidiary IPP holds an interest in Transportadora Sulbrasileira de Gás S.A., which is primarily engaged in natural gas transportation services.
Subsidiary Oxiteno S.A. holds an interest in Oxicap Indústria de Gases Ltda. (“Oxicap”), which is primarily engaged in the supply of nitrogen and oxygen for its shareholders in the Mauá petrochemical complex. The subsidiary Oxiteno S.A. holds an interest in Química da Bahia Indústria e Comércio S.A., which is primarily engaged in manufacturing, marketing, and processing of chemicals. The operations of Química da Bahia are currently suspended.
Subsidiary Cia. Ultragaz holds an interest in Metalúrgica Plus S.A., which is primarily engaged in the manufacture and trading of LPG containers. The operations of this associate are currently suspended.
Subsidiary Cia. Ultragaz holds an interest in Plenogás Distribuidora de Gás S.A., which is primarily engaged in the marketing of LPG. The operations of this associate are currently suspended.
These investments are accounted for under the equity method of accounting based on the financial statements as of March 31, 2021.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Balances and changes in associates are as follows:
| Transportadora Sulbrasileira de Gás S.A. |
| Oxicap Indústria de Gases Ltda. |
| Química da Bahia Indústria e Comércio S.A. |
| Metalúrgica Plus S.A. |
| Plenogás Distribuidora de Gás S.A. |
| Total |
Balance as of December 31, 2020 | 5,150 |
| 16,348 |
| 3,542 |
| 47 |
| 501 |
| 25,588 |
Dividends | (93) |
| - |
| - |
| - |
| - |
| (93) |
Share of profit (loss) of associates | 439 |
| (85) |
| - |
| (26) |
| 16 |
| 344 |
Balance as of March 31, 2021 | 5,496 |
| 16,263 |
| 3,542 |
| 21 |
| 517 |
| 25,839 |
| Transportadora Sulbrasileira de Gás S.A. |
| Oxicap Indústria de Gases Ltda. |
| Química da Bahia Indústria e Comércio S.A. |
| Metalúrgica Plus S.A. |
| Plenogás Distribuidora de Gás S.A. |
| Total |
Balance as of December 31, 2019 | 5,661 |
| 15,934 |
| 3,554 |
| 138 |
| 463 |
| 25,750 |
Share of profit (loss) of associates | 376 |
| 200 |
| ‐ |
| (23) |
| 28 |
| 581 |
Balance as of March 31, 2020 | 6,037 |
| 16,134 |
| 3,554 |
| 115 |
| 491 |
| 26,331 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below presents the statements of financial position and statements of profit or loss of associates:
| 03/31/2021 | ||||||||
| Transportadora Sulbrasileira de Gás S.A. |
| Oxicap Indústria de Gases Ltda. |
| Química da Bahia Indústria e Comércio S.A. |
| Metalúrgica Plus S.A. |
| Plenogás Distribuidora de Gás S.A. |
Current assets | 12,661 |
| 64,612 |
| 46 |
| 58 |
| 369 |
Non-current assets | 12,521 |
| 77,084 |
| 10,147 |
| 340 |
| 2,195 |
Current liabilities | 2,602 |
| 26,423 |
| - |
| 32 |
| 247 |
Non-current liabilities | 594 |
| 7,472 |
| 3,109 |
| 302 |
| 765 |
Equity | 21,986 |
| 107,801 |
| 7,084 |
| 64 |
| 1,552 |
Net revenue from sales and services | 3,229 |
| 16,297 |
| - |
| - |
| - |
Costs, operating expenses and income | (1,368) |
| (17,003) |
| (1) |
| (62) |
| 57 |
Net finance income and income and social contribution taxes | (104) |
| 143 |
| - |
| (15) |
| (9) |
Net income (loss) | 1,757 |
| (563) |
| (1) |
| (77) |
| 48 |
Number of shares or units held | 20,124,996 |
| 1,987 |
| 1,493,120 |
| 3,000 |
| 1,384,308 |
% of capital held | 25 |
| 15 |
| 50 |
| 33 |
| 33 |
| 12/31/2020 | ||||||||
| Transportadora Sulbrasileira de Gás S.A. |
| Oxicap Indústria de Gases Ltda. |
| Química da Bahia Indústria e Comércio S.A. |
| Metalúrgica Plus S.A. |
| Plenogás Distribuidora de Gás S.A. |
Current assets | 10,570 |
| 65,136 |
| 47 |
| 58 |
| 352 |
Non-current assets | 12,822 |
| 77,339 |
| 10,146 |
| 414 |
| 2,196 |
Current liabilities | 2,189 |
| 26,116 |
| ‐ |
| 28 |
| 154 |
Non-current liabilities | 602 |
| 7,994 |
| 3,109 |
| 302 |
| 890 |
Equity | 20,601 |
| 108,365 |
| 7,084 |
| 142 |
| 1,504 |
Number of shares or units held | 20,124,996 |
| 1,987 |
| 1,493,120 |
| 3,000 |
| 1,384,308 |
% of capital held | 25 |
| 15 |
| 50 |
| 33 |
| 33 |
| 03/31/2020 | ||||||||
| Transportadora Sulbrasileira de Gás S.A. |
| Oxicap Indústria de Gases Ltda. |
| Química da Bahia Indústria e Comércio S.A. |
| Metalúrgica Plus S.A. |
| Plenogás Distribuidora de Gás S.A. |
Net revenue from sales and services | 2,987 |
| 15,795 |
| ‐ |
| ‐ |
| ‐ |
Costs, operating expenses and income | (1,382) |
| (13,619) |
| ‐ |
| (57) |
| 94 |
Net finance income and income and social contribution taxes | (114) |
| (852) |
| ‐ |
| (15) |
| (9) |
Net income (loss) | 1,491 |
| 1,324 |
| ‐ |
| (72) |
| 85 |
Number of shares or units held | 20,124,996 |
| 1,987 |
| 1,493,120 |
| 3,000 |
| 1,384,308 |
% of capital held | 25 |
| 15 |
| 50 |
| 33 |
| 33 |
The percentages in the table above are rounded.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
13. Right-of-use assets and leases payable
Some of the subsidiaries of the Company have real estate leases, substantially related to: (i) Ipiranga: fuel stations and distribution centers; (ii) Extrafarma: pharmacies and distribution centers; (iii) Ultragaz: points of sale and bottling bases; (iv) Ultracargo: port areas; and (v) Oxiteno: industrial plant. Some subsidiaries also have lease agreements relating to vehicles.
a. Right-of-use assets
• | Parent |
| Weighted average useful life (years) | Balance on 12/31/2020 |
| Additions and remeasurement |
| Write-offs |
| Amortization |
| Balance on 03/31/2021 |
Cost: |
|
|
|
|
|
|
|
|
|
|
Real estate | 7 | 41,923 |
| 1,264 |
| - |
| - |
| 43,187 |
Vehicles | 3 | 2,591 |
| 64 |
| (69) |
| - |
| 2,586 |
|
| 44,514 |
| 1,328 |
| (69) |
| - |
| 45,773 |
Accumulated amortization: |
|
|
|
|
|
|
|
|
|
|
Real estate |
| (8,963) |
| - |
| - |
| (1,282) |
| (10,245) |
Vehicles |
| (489) |
| - |
| 15 |
| (221) |
| (695) |
|
| (9,452) |
| - |
| 15 |
| (1,503) |
| (10,940) |
Net amount |
| 35,062 |
| 1,328 |
| (54) |
| (1,503) |
| 34,833 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
• | Consolidated |
| Weighted average useful life (years) | Balance on 12/31/2020 |
| Additions and remeasurement |
| Write-offs |
| Effect of foreign currency exchange rate variation |
| Amortization |
| Balance on 03/31/2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate (i) | 10 | 2,254,432 |
| 62,044 |
| (29,777) |
| 1,823 |
| - |
| 2,288,522 |
Port area (ii) | 20 | 268,534 |
| 9,548 |
| (1,559) |
| - |
| - |
| 276,523 |
Vehicles | 4 | 139,843 |
| 3,048 |
| (5,825) |
| 147 |
| - |
| 137,213 |
Equipment | 6 | 44,936 |
| - |
| (545) |
| 2,850 |
| - |
| 47,241 |
Others | 20 | 27,846 |
| - |
| - |
| - |
| - |
| 27,846 |
|
| 2,735,591 |
| 74,640 |
| (37,706) |
| 4,820 |
| - |
| 2,777,345 |
Accumulated amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
| (481,975) |
| - |
| 16,842 |
| (607) |
| (69,847) |
| (535,587) |
Port area (i) |
| (3,962) |
| - |
| - |
| - |
| (1,697) |
| (5,659) |
Vehicles |
| (63,091) |
| - |
| 5,051 |
| (58) |
| (11,554) |
| (69,652) |
Equipment |
| (19,619) |
| - |
| 545 |
| (1,230) |
| (2,936) |
| (23,240) |
Others |
| (16,658) |
| - |
| - |
| - |
| (1,295) |
| (17,953) |
|
| (585,305) |
| - |
| 22,438 |
| (1,895) |
| (87,329) |
| (652,091) |
Net amount |
| 2,150,286 |
| 74,640 |
| (15,268) |
| 2,925 |
| (87,329) |
| 2,125,254 |
(i) | Includes lease contracts as presented in Note 8.a. |
(ii) | Refers to the area port lease, which R$ 29,237 was paid by the Tequimar Vila do Conde, Company’s subsidiary. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Leases payable
The changes in leases payable are shown below:
| Parent |
| Consolidated |
Balance as of December 31, 2020 | 37,934 |
| 1,833,288 |
Interest accrued | 825 |
| 37,264 |
Payments | (2,062) |
| (122,163) |
Additions and remeasurement | 1,328 |
| 58,576 |
Write-offs | (56) |
| (16,465) |
Effect of foreign currency exchange rate variation | - |
| 3,330 |
Balance as of March 31, 2021 | 37,969 |
| 1,793,830 |
Current | 4,922 |
| 263,146 |
Non-current | 33,047 |
| 1,530,684 |
The future disbursements (installments) assumed under leases contracts are presented below:
| 03/31/2021 | ||
| Parent |
| Consolidated |
Up to 1 year | 7,963 |
| 396,497 |
From 1 to 2 years | 7,933 |
| 352,425 |
From 2 to 3 years | 7,160 |
| 318,859 |
From 3 to 4 years | 6,995 |
| 285,246 |
From 4 to 5 years | 6,995 |
| 227,369 |
More than 5 years | 12,691 |
| 1,085,244 |
Total | 49,737 |
| 2,665,640 |
The contracts related to the leases payable are substantially indexed by the IGP-M (General Market Price Index is a measure of Brazilian inflation, calculated by the Getúlio Vargas Foundation).
b.1. Discount rates
The weighted average discount rates for the lease contracts of the Company are:
Contracts for maturity date and discount rate | ||||||||
Maturity date of the contracts | Discount rates (% p.a.) | |||||||
Up to 5 years | 7.17 | |||||||
From 6 to 10 years | 8.80 | |||||||
From 11 to 15 years | 8.18 | |||||||
More than 15 years | 9.10 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
c. Lease contracts of low amount assets
Subsidiaries Cia. Ultragaz, Bahiana, Extrafarma, Ipiranga, Serma and Oxiteno S.A. have operating lease contracts consider as low value, short term and variable payments for the use of factory and IT equipment’s, vehicles and real states. The subsidiaries have the option to purchase the assets referring to IT equipment at a price equal to the fair value on the date of option, and management does not intend to exercise such option. The future disbursements (payments), assumed as a result of these contracts amount approximately to:
| Up to 1 year | Between 1 and 5 years | More than 5 years | Total |
03/31/2021 | 2,127 | 33 | - | 2,160 |
The amount of lease considered as of low value, short term and variable payments, recognized as an expense for the three-month period ended March 31, 2021 was R$ 13,117 (R$ 5,305 for the three-month period ended March 31, 2020).
d. Inflation effect
The effects of inflation are as follows:
Right to use asset, net | Parent |
| Consolidated |
Nominal base | 34,833 |
| 2,125,254 |
Inflated base | 40,937 |
| 2,491,237 |
| 17.5% |
| 17.2% |
Lease liability | Parent |
| Consolidated |
Nominal base | 37,969 |
| 1,793,830 |
Inflated base | 44,072 |
| 2,159,812 |
| 16.1% |
| 20.4% |
Financial expense | Parent |
| Consolidated |
Nominal base | 825 |
| 37,264 |
Inflated base | 956 |
| 45,239 |
| 15.9% |
| 21.4% |
Amortization expense | Parent |
| Consolidated |
Nominal base | 1,503 |
| 87,329 |
Inflated base | 1,694 |
| 95,435 |
| 12.7% |
| 9.3% |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
14. Property, plant, and equipment
Balances and changes in PP&E are as follows:
- Parent
| Weighted average useful life (years) | Balance on 12/31/2020 |
| Additions |
| Depreciation |
| Balance on 03/31/2021 |
Cost: |
|
|
|
|
|
|
|
|
Buildings | 35 | - |
| 144 |
| - |
| 144 |
Leasehold improvements | 8 | 2,194 |
| 9,700 |
| - |
| 11,894 |
Machinery and equipment | 10 | 82 |
| 42 |
| - |
| 124 |
Furniture and utensils | 8 | 502 |
| 1,810 |
| - |
| 2,312 |
IT equipment | 5 | 13,293 |
| 13 |
| - |
| 13,306 |
|
| 16,071 |
| 11,709 |
| - |
| 27,780 |
Accumulated depreciation: |
|
|
|
|
|
|
|
|
Buildings |
| - |
| - |
| (1) |
| (1) |
Leasehold improvements |
| (178) |
| - |
| (264) |
| (442) |
Machinery and equipment |
| (6) |
| - |
| (3) |
| (9) |
Furniture and utensils |
| (37) |
| - |
| (55) |
| (92) |
IT equipment |
| (1,522) |
| - |
| (669) |
| (2,191) |
|
| (1,743) |
| - |
| (992) |
| (2,735) |
Net amount |
| 14,328 |
| 11,709 |
| (992) |
| 25,045 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
- Consolidated
| Weighted average useful life (years) | Balance on 12/31/2020 |
| Additions |
| Depreciation |
| Transfer |
| Write-offs and disposals |
| Effect of foreign currency exchange rate variation |
| Balance on 03/31/2021 |
Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land | - | 687,108 |
| 380 |
| - |
| - |
| (194) |
| 4,649 |
| 691,943 |
Buildings | 33 | 2,154,710 |
| 9,703 |
| - |
| 23,268 |
| (3,555) |
| 36,821 |
| 2,220,947 |
Leasehold improvements | 11 | 1,222,822 |
| 4,087 |
| - |
| 15,580 |
| (4,806) |
| 103 |
| 1,237,786 |
Machinery and equipment | 13 | 6,498,362 |
| 26,922 |
| - |
| 73,122 |
| (4,179) |
| 127,086 |
| 6,721,313 |
Automotive fuel/lubricant distribution equipment and facilities | 13 | 3,169,320 |
| 12,942 |
| - |
| 17,113 |
| (8,666) |
| - |
| 3,190,709 |
LPG tanks and bottles | 9 | 776,479 |
| 18,153 |
| - |
| 1,567 |
| (14,462) |
| - |
| 781,737 |
Vehicles | 8 | 310,836 |
| 1,707 |
| - |
| 2,708 |
| (11,252) |
| 153 |
| 304,152 |
Furniture and utensils | 9 | 316,712 |
| 6,416 |
| - |
| 133 |
| (9,753) |
| 1,786 |
| 315,294 |
IT equipment | 5 | 444,844 |
| 4,136 |
| - |
| 782 |
| (2,957) |
| 981 |
| 447,786 |
Construction in progress | - | 580,695 |
| 161,380 |
| - |
| (133,986) |
| - |
| 3,010 |
| 611,099 |
Advances to suppliers | - | 34,642 |
| 1,008 |
| - |
| (75) |
| - |
| - |
| 35,575 |
Imports in progress | - | 866 |
| 2,730 |
| - |
| (138) |
| - |
| 4 |
| 3,462 |
|
| 16,197,396 |
| 249,564 |
| - |
| 74 |
| (59,824) |
| 174,593 |
| 16,561,803 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
|
| Balance on 12/31/2020 |
| Additions |
| Depreciation |
| Transfer |
| Write-offs and disposals |
| Effect of foreign currency exchange rate variation |
| Balance on 03/31/2021 |
Accumulated depreciation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buildings |
| (851,397) |
| - |
| (16,978) |
| - |
| 2,792 |
| (8,713) |
| (874,296) |
Leasehold improvements |
| (689,161) |
| - |
| (18,898) |
| - |
| 3,838 |
| (59) |
| (704,280) |
Machinery and equipment |
| (3,598,304) |
| - |
| (84,863) |
| - |
| 4,152 |
| (27,694) |
| (3,706,709) |
Automotive fuel/lubricant distribution equipment and facilities |
| (1,906,953) |
| - |
| (44,480) |
| - |
| 5,409 |
| - |
| (1,946,024) |
LPG tanks and bottles |
| (454,651) |
| - |
| (14,749) |
| - |
| 9,088 |
| - |
| (460,312) |
Vehicles |
| (143,854) |
| - |
| (5,736) |
| - |
| 6,526 |
| (64) |
| (143,128) |
Furniture and utensils |
| (191,713) |
| - |
| (5,480) |
| 5 |
| 9,733 |
| (1,052) |
| (188,507) |
IT equipment |
| (352,256) |
| - |
| (8,839) |
| (79) |
| 2,623 |
| (580) |
| (359,131) |
|
| (8,188,289) |
| - |
| (200,023) |
| (74) |
| 44,161 |
| (38,162) |
| (8,382,387) |
Provision for losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land |
| (146) |
| - |
| - |
| - |
| - |
| - |
| (146) |
Leasehold improvements |
| (61) |
| - |
| - |
| - |
| - |
| (4) |
| (65) |
Machinery and equipment |
| (2,857) |
| - |
| - |
| - |
| - |
| (58) |
| (2,915) |
Automotive fuel/lubricant distribution equipment and facilities |
| (73) |
| - |
| - |
| - |
| 6 |
| - |
| (67) |
Advances to suppliers |
| (110) |
| - |
| - |
| - |
| - |
| - |
| (110) |
|
| (3,247) |
| - |
| - |
| - |
| 6 |
| (62) |
| (3,303) |
Net amount |
| 8,005,860 |
| 249,564 |
| (200,023) |
| - |
| (15,657) |
| 136,369 |
| 8,176,113 |
Construction in progress relates substantially to expansions, renovations, constructions and upgrade of industrial facilities, terminals, stores, service stations and distribution bases.
Advances to suppliers is related, basically, to manufacturing of assets for expansion of plants, terminals, stores, service stations and bases and acquisition of real estate.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
15. Intangible assets
Balances and changes in intangible assets are as follows:
- Parent
| Weighted average useful life (years) | Balance on 12/31/2020 |
| Amortization |
| Balance on 03/31/2021 |
Cost: |
|
|
|
|
|
|
Goodwill (a) | - | 246,163 |
| - |
| 246,163 |
Software (b) | 5 | 9,111 |
| - |
| 9,111 |
|
| 255,274 |
| - |
| 255,274 |
Accumulated amortization: |
|
|
|
|
|
|
Software |
| (1,032) |
| (461) |
| (1,493) |
|
| (1,032) |
| (461) |
| (1,493) |
Net amount |
| 254,242 |
| (461) |
| 253,781 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
- Consolidated
| Weighted average useful life (years) | Balance on 12/31/2020 |
| Additions |
| Amortization |
| Transfer |
| Write-offs and disposals |
| Effect of foreign currency exchange rate variation |
| Balance on 03/31/2021 |
Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill (a) | - | 1,525,088 |
| - |
| - |
| - |
| - |
| - |
| 1,525,088 |
Software (b) | 4 | 1,395,046 |
| 31,313 |
| - |
| (84) |
| (18,117) |
| 2,562 |
| 1,410,720 |
Technology (c) | - | 32,617 |
| - |
| - |
| - |
| - |
| - |
| 32,617 |
Distribution rights | 11 | 133,599 |
| - |
| - |
| - |
| - |
| - |
| 133,599 |
Brands (d) | - | 136,962 |
| - |
| - |
| - |
| - |
| 6,207 |
| 143,169 |
Trademark rights (d) | 39 | 114,792 |
| - |
| - |
| - |
| - |
| - |
| 114,792 |
Others (e) | 10 | 50,698 |
| 337 |
| - |
| - |
| - |
| 868 |
| 51,903 |
Decarbonization credits (f) |
| - |
| 20,825 |
| - |
| - |
| - |
| - |
| 20,825 |
|
| 3,388,802 |
| 52,475 |
| - |
| (84) |
| (18,117) |
| 9,637 |
| 3,432,713 |
Accumulated amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Software |
| (825,024) |
| - |
| (48,410) |
| 84 |
| 18,117 |
| (2,293) |
| (857,526) |
Technology |
| (32,616) |
| - |
| - |
| - |
| - |
| - |
| (32,616) |
Distribution rights |
| (113,326) |
| - |
| (940) |
| - |
| - |
| - |
| (114,266) |
Trademark rights |
| (9,056) |
| - |
| (734) |
| - |
| - |
| - |
| (9,790) |
Others |
| (32,845) |
| - |
| (31) |
| - |
| - |
| (4) |
| (32,880) |
|
| (1,012,867) |
| - |
| (50,115) |
| 84 |
| 18,117 |
| (2,297) |
| (1,047,078) |
Provision for losses and impairment: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill (a) |
| (593,280) |
| - |
| - |
| - |
| - |
| - |
| (593,280) |
|
| (593,280) |
| - |
| - |
| - |
| - |
| - |
| (593,280) |
Net amount |
| 1,782,655 |
| 52,475 |
| (50,115) |
| - |
| - |
| 7,340 |
| 1,792,355 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
a. Goodwill
The balance of the goodwill is tested annually for impairment and is represented by the following acquisitions:
Segment | 03/31/2021 | 12/31/2020 | ||
Goodwill on the acquisition of: |
|
|
|
|
Extrafarma | Extrafarma | 661,553 |
| 661,553 |
Extrafarma – impairment | Extrafarma | (593,280) |
| (593,280) |
Extrafarma – net | Extrafarma | 68,273 |
| 68,273 |
Ipiranga (1) | Ipiranga | 276,724 |
| 276,724 |
União Terminais | Ultracargo | 211,089 |
| 211,089 |
Texaco | Ipiranga | 177,759 |
| 177,759 |
Iconic (CBLSA) | Ipiranga | 69,807 | 69,807 | |
Oxiteno Uruguay | Oxiteno | 44,856 |
| 44,856 |
Temmar | Ultracargo | 43,781 |
| 43,781 |
DNP | Ipiranga | 24,736 |
| 24,736 |
Repsol | Ultragaz | 13,403 |
| 13,403 |
TEAS | Ultracargo | 797 |
| 797 |
Others | Oxiteno | 583 |
| 583 |
|
| 931,808 |
| 931,808 |
(1) Including R$ 246,163 at Ultrapar.
On December 31, 2020, the Company tested the balances of goodwill shown in the table above for impairment. The determination of value in use involves assumptions, judgments, and estimates of cash flows, such as growth rates of revenues, costs and expenses, estimates of investments and working capital, and discount rates. The assumptions about growth projections and future cash flows are based on the Company’s business plan of its operating segments, as well as comparable market data, and represent management’s best estimate of the economic conditions that will exist over the economic life of the various CGUs, to which goodwill is related. The main key-assumptions used by the Company to calculate the value in use are described below:
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Period of evaluation: the evaluation of the value in use is calculated for a period of five years (except the Extrafarma segment), after which the Company calculated the perpetuity, considering the possibility of carrying the business on indefinitely. For the Extrafarma segment, a period of ten years was used due to a four-year period to maturity of new stores were considered.
Discount and real growth rates: on December 31, 2020, the discount and real growth rates used to extrapolate the projections ranged from 8.5% to 11.0% and from 0% to 1% p.a., respectively, depending on the CGU analyzed.
Revenue from sales and services, costs and expenses, and gross margin considers the budget prepared for 2021 and the long-term strategic plan prepared by management and approved by the Board of Directors.
The goodwill impairment tests, and net assets of the Company and its subsidiaries did not result in the recognition of impairment.
The Company assessed a sensitivity analysis of discount and growth rate of perpetuity, due to their significant impact on cash flows and value in use. An increase of 0.5 percentage points in the discount rate or a decrease of 0.5 percentage points in the growth rate of the perpetuity of the cash flow of each business segment would not result in the recognition of impairment.
b. Software
Includes user licenses and costs for the implementation of the various systems used by the Company and its subsidiaries: integrated management and control, financial management, foreign trade, industrial automation, operational and storage management, accounting information, and other systems. Also include expenses related to software in progress in the amount of R$ 32,554 on March 31, 2021 (R$ 35,718 on December 31, 2020).
c. Technology
The subsidiaries Oxiteno S.A. and Oleoquímica recognize as technology certain rights of use held by them. Such licenses include the production of ethylene oxide, ethylene glycols, ethanolamines, glycol ethers, ethoxylates, solvents, fatty acids from vegetable oils, fatty alcohols, and specialty chemicals, which are products that are supplied to various industries.
d. Brands and trademark rights
Brands are represented by the acquisition cost of the ‘am/pm’ brand in Brazil and of the Extrafarma brand, acquired in the business combination, and Chevron and Texaco trademark rights.
e. Other intangibles
Refers mainly to the loyalty program “Clube Extrafarma”.
f. Decarbonization credits
The decarbonization credits (“CBIO”) acquired are recorded at acquisition cost and are retired in the year to fulfillment the individual target set by the National Agency of Petroleum, Natural Gas and Biofuels (“ANP”).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
16. Loans, financing, debentures and hedge derivative financial instruments
a. Composition
- Parent
Description | 03/31/2021 |
| 12/31/2020 |
| Index/ Currency | Weighted average financial charges 03/31/2021 – % p.a. | Maturity |
Brazilian Reais: |
|
|
|
|
|
|
|
Debentures – 6th issuance (f.5) | 1,726,471 |
| 1,734,113 |
| DI | 105.3 | 2023 |
Notes – Ultrapar (g.1) | 1,052,507 |
| 1,038,499 |
| R$ + DI | 3.1 | 2021 |
Total | 2,778,978 |
| 2,772,612 |
|
|
|
|
Current | 1,054,676 |
| 1,048,495 |
|
|
|
|
Non-current | 1,724,302 |
| 1,724,117 |
|
|
|
|
- Consolidated
Description | 03/31/2021 |
| 12/31/2020 |
| Index/ Currency | Weighted average financial charges 03/31/2021 – % p.a. | Maturity |
Foreign currency: |
|
|
|
|
|
|
|
Notes in the foreign market (b) (*) | 8,080,186 |
| 7,267,687 |
| US$ | 5.3 | 2026 to 2029 |
Foreign loan (c.1) (*) | 1,118,332 |
| 1,047,644 |
| US$ | 3.9 | 2021 to 2023 |
Financial institutions (d) | 344,530 |
| 312,200 |
| US$ + LIBOR (1) | 1.4 | 2021 |
Foreign loan (c.1) (*) | 282,882 |
| 261,284 |
| US$ + LIBOR (1) | 1.0 | 2022 |
Financial institutions (d) | 171,132 |
| 154,783 |
| US$ | 2.5 | 2021 to 2022 |
Financial institutions (d) | 42,015 |
| 39,350 |
| MX$ (2) | 8.2 | 2021 |
Advances on foreign exchange contracts | - |
| 105,579 |
| US$ | - | 2021 |
Total foreign currency | 10,039,077 |
| 9,188,527 |
|
|
|
|
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Description | 03/31/2021 |
| 12/31/2020 |
| Index/ Currency | Weighted average financial charges 03/31/2021 – % p.a. | Maturity |
Brazilian Reais: |
|
|
|
|
|
|
|
Debentures – CRA (f.2, f.4 and f.6) | 2,049,268 |
| 2,037,602 |
| DI | 95.8 | 2022 to 2023 |
Debentures – 6ª issuance (f.5) | 1,726,471 |
| 1,734,113 |
| DI | 105.3 | 2023 |
Debentures – Ipiranga (f.1 and f.3) | 1,687,836 |
| 1,679,036 |
| DI | 105.0 | 2021 to 2022 |
Notes - Ultrapar (g.1) | 1,052,508 |
| 1,038,499 |
| R$ + DI | 3.1 | 2021 |
Debentures – CRA (f.2, f.4 and f.6) (*) | 982,178 |
| 1,000,824 |
| IPCA | 4.6 | 2024 to 2025 |
Debentures – Tequimar (f.7) (*) | 87,210 |
| 92,541 |
| R$ | 6.5 | 2024 |
Debêntures - Tequimar and Tequimar Vila do Conde (f.8 and f.9) (*) | 466,127 |
| - |
| IPCA | 4.1 | 2028 |
Banco do Brasil (e) | 406,950 |
| 407,420 |
| DI | 110.9 | 2021 to 2022 |
Bank Credit Bill | 50,000 |
| 50,692 |
| R$ + DI | 2.0 | 2022 |
FINEP | 26,921 |
| 29,803 |
| TJLP (3) | 1.6 | 2021 to 2023 |
Total in Brazilian Reais | 8,535,469 |
| 8,070,530 |
|
|
|
|
Total foreign currency and Brazilian Reais | 18,574,546 |
| 17,259,057 |
|
|
|
|
Currency and interest rate hedging instruments (**) | 31,716 |
| 117,159 |
|
|
|
|
Total | 18,606,262 |
| 17,376,216 |
|
|
|
|
Current | 3,249,219 |
| 3,255,944 |
|
|
|
|
Non-current | 15,357,043 |
| 14,120,272 |
|
|
|
|
(*) These transactions were designated for hedge accounting (see Note 33.h).
(**) Accumulated losses (see Note 33.i).
(1) LIBOR = London Interbank Offered Rate.
(2) MX$ = Mexican Peso; TIIE = the Mexican interbank balance interest rate.
(3) TJLP (Long-term Interest Rate) = set by the National Monetary Council, TJLP is the basic financing cost of Banco Nacional de Desenvolvimento Econômico e Social (“BNDES”), the Brazilian Development Bank. On March 31, 2021, TJLP was fixed at 4.39% p.a.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The changes in loans and debentures are shown below:
| Parent |
| Consolidated |
Balance as of December 31, 2020 | 2,772,612 |
| 17,376,216 |
New loans and debentures with cash effect | - |
| 463,012 |
Interest accrued | 22,989 |
| 180,895 |
Principal payment | - |
| (126,491) |
Interest payment | (16,623) |
| (50,508) |
Monetary and exchange rate variation | - |
| 906,705 |
Change in fair value | - |
| (58,124) |
Hedge result | - |
| (85,443) |
Balance as of March 31, 2021 | 2,778,978 |
| 18,606,262 |
The long-term consolidated debt had the following principal maturity schedule:
| 03/31/2021 |
| 12/31/2020 |
From 1 to 2 years | 4,459,983 |
| 2,702,626 |
From 2 to 3 years | 1,414,077 |
| 3,091,641 |
From 3 to 4 years | 761,774 |
| 784,778 |
From 4 to 5 years | 268,114 |
| 231,271 |
More than 5 years | 8,453,095 |
| 7,309,956 |
| 15,357,043 |
| 14,120,272 |
The transaction costs and issuance premiums associated with debt issuance were added to their financial liabilities, as shown in Note 16.h.
The Company’s management entered into hedging instruments against foreign exchange and interest rate variations for a portion of its debt obligations (see Note 33.h).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Notes in the foreign market
On October 6, 2016 the subsidiary Ultrapar International S.A. (“Ultrapar International”) issued US$ 750,000 (equivalent to R$ 4,272,975 as of March 31, 2021) in notes in the foreign market, maturing in October 2026, with interest rate of 5.25% p.a., paid semiannually. The issue price was 98.097% of the face value of the note. The notes were guaranteed by the Company and its subsidiary IPP. The Company has designated hedge relationships for this transaction (see Notes 33.h.2 and 33.h.3).
On June 6, 2019 the subsidiary Ultrapar International issued US$ 500,000 (equivalent to R$ 2,848,650 as of March 31, 2021) in notes in the foreign market, maturing in June 2029, with interest rate of 5.25% p. a., paid semiannually. The issue price was 100% of the face value of the note. The notes were guaranteed by the Company and its subsidiary IPP. The Company has designated hedge relationships for part of this transaction (see Note 33.h.3).
On June 21 2019, the subsidiary Ultrapar International repurchased US$ 200,000 (equivalent to R$ 1,139,460 as of March 31, 2021) in notes in the foreign market maturing in October 2026.
On July 13, 2020 the subsidiary Ultrapar International made the reopening of notes in the foreign market issued in 2019, realizing new issuance in the amount of US$ 350,000 (equivalent to R$ 1,994,055 as of March 31, 2021) maturing in June 2029, to the coupon (interest) and yield of 5.25% per year, paid semiannually. The issue price was 99.994% of face value of the note. The notes were guaranteed by the Company and the subsidiary IPP.
As a result of the issuance of the notes in the foreign market the Company and its subsidiaries are required to perform certain obligations, including:
- Restriction on sale of all or substantially all assets of the Company and subsidiaries Ultrapar International and IPP;
- Restriction on encumbrance of assets exceeding US$ 150,000 (equivalent to R$ 854,595 as of March 31, 2021) or 15% of the amount of the consolidated tangible assets.
The Company and its subsidiaries are in compliance with the levels of covenants required by this debt. The restrictions imposed on the Company and its subsidiaries are customary in transactions of this nature and have not limited their ability to conduct their business to date.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
c. Foreign loans
c.1. The subsidiary IPP has foreign loans in the amount of US$ 235,000 (equivalent to R$ 1,338,866 as of March 31, 2021). IPP also contracted hedging instruments with floating interest rate in U.S. dollar and exchange rate variation, changing the foreign loans charges, on average, to 104.1% of DI. IPP designated these hedging instruments as a fair value hedge (see Note 33.h.1). Therefore, loans and hedging instruments are both measured at fair value from inception, with changes in fair value recognized through profit or loss. The foreign loans are secured by the Company.
The foreign loans have the maturity distributed as follows:
Maturity | US$ |
| R$ |
| Cost in % of DI |
Charges (1) | 10,944 |
| 62,348 |
| - |
Jul/2021 | 60,000 |
| 341,838 |
| 101.8 |
Jun/2022 | 50,000 |
| 284,865 |
| 105.0 |
Sep/2023 | 60,000 |
| 341,838 |
| 105.0 |
Sep/2023 | 65,000 |
| 370,325 |
| 104.8 |
Total / average cost | 245,944 |
| 1,401,214 |
| 104.1 |
(1) Includes interest, transaction costs and fair value adjustments.
d. Financial institutions
The subsidiaries Oxiteno Mexico S.A. de C.V., Oxiteno USA LLC (“Oxiteno USA”) and Oxiteno Uruguay have loans for investments and working capital.
The subsidiary Oxiteno USA has loans with bearing interest of LIBOR + 1.4% and maturity as shown below:
Maturity | US$ |
| R$ |
Charges (1) | 3 |
| 15 |
Sep/2021 | 60,000 |
| 344,515 |
Total | 60,003 |
| 344,530 |
(1) Includes interest.
The proceeds of this loan were used in the working capital and to fund the construction of a new alkoxylation plant in the state of Texas.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
e. Banco do Brasil
The subsidiary IPP has floating interest rate loans with Banco do Brasil to marketing, processing, or manufacturing of agricultural goods (ethanol).
These loans mature, as follows (includes accrued interest through March 31, 2021):
Maturity |
| 03/31/2021 |
May/2021 |
| 203,814 |
May/2022 |
| 203,136 |
Total |
| 406,950 |
f. Debentures
f.1 In May 2016, the subsidiary IPP made its fourth issuance of public debentures, in one single series of 500 simple, nominative, registered debentures, nonconvertible into shares and unsecured, which main characteristics are as follows:
Face value unit: | R$ 1,000,000.00 |
Final maturity: | May 25, 2021 |
Payment of the face value: | Annual as from May 2019 |
Interest: | 105.0% of DI |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
f.2 In April 2017, the subsidiary IPP carried out its fifth issuance of debentures, in two series, being one of 660,139 and another of 352,361, simple, nonconvertible into shares, nominative, book-entry and unsecured debentures. The debentures have been subscribed by Eco Consult – Consultoria de Operações Financeiras Agropecuárias Ltda. The proceeds from this issuance were used exclusively for the purchase of ethanol by subsidiary IPP.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The debentures were later assigned and transferred to Eco Securitizadora de Direitos Creditórios do Agronegócio S.A. that acquired these agribusiness credit rights with the purpose to bind the issuance of Certificates of Agribusiness Receivables (CRA). The debentures have an additional guarantee from Ultrapar and the main characteristics of the debentures are as follows:
Amount: | 660,139 |
Face value unit: | R$ 1,000.00 |
Final maturity: | April 18, 2022 |
Payment of the face value: | Lump sum at final maturity |
Interest: | 95.0% of DI |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
Amount: | 352,361 |
Face value unit: | R$ 1,000.00 |
Final maturity: | April 15, 2024 |
Payment of the face value: | Lump sum at final maturity |
Interest: | IPCA + 4.68% |
Payment of interest: | Annually |
Reprice: | Not applicable |
The subsidiary IPP contracted hedging instruments subjected to IPCA variation, changing the debentures charges linked to IPCA to 93.9% of DI. IPP designated these hedging instruments as fair value hedges; therefore, debentures and hedging instruments are both measured at fair value from inception, with changes in fair value recognized through profit or loss.
f.3 In July 2017, the subsidiary IPP made its sixth issuance of public debentures, in one single series of 1,500,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:
Face value unit: | R$ 1,000.00 |
Final maturity: | July 28, 2022 |
Payment of the face value: | Annual as from July 2021 |
Interest: | 105.0% of DI |
Payment of interest: | Annually |
Reprice: | Not applicable |
f.4 In October 2017, the subsidiary IPP carried out its seventh issuance of debentures in the amount of R$ 944,077, in two series, being on of 730,384 and another of 213,693, simple, nonconvertible into shares, nominative, book-entry and unsecured debentures. The debentures have been subscribed by Vert Companhia Securitizadora. The proceeds from this issuance were used exclusively for the purchase of ethanol by subsidiary IPP.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The debentures were later assigned and transferred to Vert Créditos Ltda., that acquired these agribusiness credit rights with the purpose to bind the issuance of Certificates of Agribusiness Receivables (CRA). The financial settlement occurred on November 1, 2017. The debentures have an additional guarantee from Ultrapar and the main characteristics of the debentures are as follows:
Amount: | 730,384 |
Face value unit: | R$ 1,000.00 |
Final maturity: | October 24, 2022 |
Payment of the face value: | Lump sum at final maturity |
Interest: | 95.0% of DI |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
Amount: | 213,693 |
Face value unit: | R$ 1,000.00 |
Final maturity: | October 24, 2024 |
Payment of the face value: | Lump sum at final maturity |
Interest: | IPCA + 4.34% |
Payment of interest: | Annually |
Reprice: | Not applicable |
The subsidiary IPP contracted hedging instruments subjected to IPCA variation, changing the debentures charges linked to IPCA to 97.3% of DI. IPP designated these hedging instruments as fair value hedges; therefore, debentures and hedging instruments are both measured at fair value from inception, with changes in fair value recognized through profit or loss.
f.5 In March 2018, the Company made its sixth issuance of public debentures, in a single series of 1,725,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:
Face value unit: | R$ 1,000.00 |
Final maturity: | March 5, 2023 |
Payment of the face value: | Lump sum at final maturity |
Interest: | 105.25% of DI |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
f.6 In December 2018, the subsidiary IPP carried out its eighth issuance of debentures in the amount of R$ 900,000, in two series, being one of 660,000 and another of 240,000, simple, nonconvertible into shares, nominative, book-entry and unsecured debentures. The debentures have been subscribed by Vert Companhia Securitizadora. The proceeds from this issuance were used exclusively for the purchase of ethanol by subsidiary IPP. The debentures were subscribed with the purpose to bind the issuance of CRA. The financial settlement occurred on December 21, 2018. The debentures have an additional guarantee from Ultrapar and the main characteristics of the debentures are as follows:
Amount: | 660,000 |
Face value unit: | R$ 1,000.00 |
Final maturity: | December 18, 2023 |
Payment of the face value: | Lump sum at final maturity |
Interest: | 97.5% of DI |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
Amount: | 240,000 |
Face value unit: | R$ 1,000.00 |
Final maturity: | December 15, 2025 |
Payment of the face value: | Lump sum at final maturity |
Interest: | IPCA + 4.61% |
Payment of interest: | Annually |
Reprice: | Not applicable |
The subsidiary IPP contracted hedging instruments subjected to IPCA variation, changing the debentures charges linked to IPCA to 97.1% of DI. IPP designated these hedging instruments as fair value hedges; therefore, debentures and hedging instruments are both measured at fair value from inception, with changes in fair value recognized through profit or loss.
f.7 In November 2019, the subsidiary Tequimar made its first issuance of debentures, in a single series of 90,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:
Face value unit: | R$ 1,000.00 |
Final maturity: | November 19, 2024 |
Payment of the face value: | Lump sum at final maturity |
Interest: | 6.47% |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
The subsidiary Tequimar contracted hedging instruments subjected interest rate variation, changing the debentures fixed for 99.94% of the DI. Tequimar designated these hedging instruments as fair value hedges therefore debentures and hedging instruments are both measured at fair value from inception, with changes in fair value recognized in profit or loss.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
f.8 In March 2021 the subsidiary Tequimar Vila do Conde Logística Portuária S.A. (“Tequimar Vila do Conde”) made its first issuance of debentures, in a single series of 360,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:
Face value unit: | R$ 1,000.00 |
Final maturity: | March 15, 2028 |
Payment of the face value: | Lump sum at final maturity |
Interest: | IPCA + 4.04% |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
The subsidiary Tequimar contracted hedging instruments subjected interest rate variation changing the debentures fixed for 111.4% of the DI. Tequimar designated these hedging instruments as fair value hedges therefore debentures and hedging instruments are both measured at fair value from inception with changes in fair value recognized in profit or loss.
f.9 In March 2021 the subsidiary Tequimar made its second issuance of debentures, in a single series of 100,000 simple, nonconvertible into shares and unsecured debentures, which main characteristics are as follows:
Face value unit: | R$ 1,000.00 |
Final maturity: | March 15, 2028 |
Payment of the face value: | Lump sum at final maturity |
Interest: | IPCA + 4.37% |
Payment of interest: | Semiannually |
Reprice: | Not applicable |
The subsidiary Tequimar contracted hedging instruments subjected interest rate variation changing the debentures fixed for 111.4% of the DI. Tequimar designated these hedging instruments as fair value hedges therefore debentures and hedging instruments are both measured at fair value from inception with changes in fair value recognized in profit or loss.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The debentures have maturity dates distributed as shown below (includes accrued interest through March 31, 2021).
Maturity |
| 03/31/2021 |
Charges (1) |
| 80,856 |
May/2021 |
| 166,700 |
Jul/2021 |
| 750,000 |
Apr/2022 |
| 660,139 |
Jul/2022 |
| 750,000 |
Oct/2022 |
| 730,384 |
Mar/2023 |
| 1,725,000 |
Dec/2023 |
| 660,000 |
Apr/2024 |
| 410,815 |
Oct/2024 |
| 247,351 |
Nov/2024 |
| 90,000 |
Dec/2025 |
| 266,605 |
Mar/2028 |
| 461,240 |
Total |
| 6,999,090 |
(1) Includes interest, transaction cost and mark to market.
g. Notes
g.1 In April 2020 the Company made its second public issuance of notes in a single series of 40 commercial notes, not convertible into shares, of unsecured type, whose main characteristics are:
Face value unit: | R$ 25,000,000.00 |
Final maturity: | April 6, 2021 |
Payment of the face value: | Lump sum at final maturity |
Interest: | DI + 3.10% |
Payment of interest: | Lump sum at final maturity |
Reprice: | Not applicable |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
h. Transaction costs
Transaction costs incurred in issuing debt were deducted from the value of the related financial instruments and are recognized as an expense according to the effective interest rate method as follows:
| Effective rate of transaction costs (% p.a.) |
| Balance on 12/31/2020 |
| Incurred cost |
| Amortization |
| Balance on 03/31/2021 |
Debentures (f) | 0.2 |
| 28,348 |
| 10,529 |
| (3,208) |
| 35,669 |
Notes in the foreign market (b) | 0.1 |
| 37,112 |
| - |
| (1,205) |
| 35,907 |
Notes (g) | 0.5 |
| 1,318 |
| - |
| (1,236) |
| 82 |
Banco do Brasil (e) | 0.1 |
| 332 |
| - |
| (89) |
| 243 |
Total |
|
| 67,110 |
| 10,529 |
| (5,738) |
| 71,901 |
The amount to be appropriated to profit or loss in the future is as follows:
| Up to 1 year |
| 1 to 2 years |
| 2 to 3 years |
| 3 to 4 years |
| 4 to 5 years |
| More than 5 years |
| Total |
Debentures (f) | 13,699 |
| 9,245 |
| 5,894 |
| 2,185 |
| 1,670 |
| 2,976 |
| 35,669 |
Notes in the foreign market (b) | 4,891 |
| 4,894 |
| 4,911 |
| 4,900 |
| 4,904 |
| 11,407 |
| 35,907 |
Notes (g) | 82 |
| - |
| - |
| - |
| - |
| - |
| 82 |
Banco do Brasil (e) | 212 |
| 31 |
| - |
| - |
| - |
| - |
| 243 |
Total | 18,884 |
| 14,170 |
| 10,805 |
| 7,085 |
| 6,574 |
| 14,383 |
| 71,901 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
i. Guarantees
The financings are guaranteed by collateral in the amount of R$ 75,569 as of March 31, 2021 (R$ 75,251 as of December 31, 2020) and by guarantees and promissory notes in the amount of R$ 15,166,160 as of March 31, 2021 (R$ 13,758,033 as of December 31, 2020).
The Company and its subsidiaries offer collateral in the form of letters of credit for commercial and legal proceedings in the amount of R$ 120,817 as of March 31, 2021 (R$ 129,139 as of December 31, 2020).
Some subsidiaries of Company issue collateral to financial institutions in connection with the amounts owed by some of their customers to such institutions (vendor financing) as follows:
| IPP | ||
| 03/31/2021 |
| 12/31/2020 |
Maximum amount of future payments related to these collaterals | 363,914 |
| 330,944 |
Maturities of up to | 47 months |
| 46 months |
Fair value of collaterals | 6,979 |
| 5,496 |
If a subsidiary is required to make any payment under these collaterals, this subsidiary may recover the amount paid directly from its customers through commercial collection. Until March 31, 2021 the subsidiaries did not have losses in connection with these collaterals. The fair value of collaterals is recognized in current liabilities as “other payables”, which is recognized in the statement of profit or loss as customers settle their obligations with the financial institutions.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
17. Trade payables
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Domestic suppliers | 29,319 |
| 16,870 |
| 1,937,465 |
| 2,306,398 |
Domestic suppliers – related parties (see Note 8.a.2) | - |
| - |
| 8,767 |
| 5,102 |
Domestic suppliers – reverse factoring (i) | - |
| - |
| 1,568,803 |
| 1,021,424 |
Domestic suppliers – reverse factoring (i) - related parties (see Note 8.a.2) | - |
| - |
| 105,530 |
| 61,989 |
Foreign suppliers | - |
| - |
| 558,567 |
| 307,486 |
Foreign suppliers - related parties (see Note 8.a.2) | - |
| - |
| 105,396 |
| 126,033 |
Foreign suppliers – reverse factoring (i) | - |
| - |
| 241,616 |
| 212,220 |
| 29,319 |
| 16,870 |
| 4,526,144 |
| 4,040,652 |
(i) Suppliers – reverse factoring: some subsidiaries of the Company entered into an agreements with a financial institutions. These agreements consist in the anticipation of the receipt of trade payables by the supplier, in which the financial institutions prepay a certain amount from the supplier, and receives on the maturity date the amount payable by the subsidiaries of the Company. The decision to join this type of transaction is solely and exclusively of the supplier. The agreement does not substantially change the main characteristics of the commercial conditions previously established between the subsidiaries of the Company and the suppliers. These transactions are presented in operating activities in the statements of cash flow.
Some Company’s subsidiaries acquire oil-based fuels and LPG from Petrobras and its subsidiaries and ethylene from Braskem S.A. These suppliers control almost all the markets for these products in Brazil.
18. Salaries and related charges
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Provisions on salaries | 9,971 |
| 7,886 |
| 206,006 |
| 195,286 |
Profit sharing, bonus and premium | 8,919 |
| 27,779 |
| 68,654 |
| 184,306 |
Social charges | 11,611 |
| 5,632 |
| 93,417 |
| 73,267 |
Others | 675 |
| 1,103 |
| 16,590 |
| 15,771 |
| 31,176 |
| 42,400 |
| 384,667 |
| 468,630 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
19. Taxes payable
|
| Parent |
| Consolidated | ||||
|
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
ICMS |
| - |
| - |
| 235,177 |
| 180,522 |
IPI |
| - |
| - |
| 13,716 |
| 8,952 |
PIS and COFINS |
| 407 |
| 569 |
| 9,243 |
| 13,187 |
ISS |
| 49 |
| 49 |
| 39,743 |
| 38,328 |
Value-added tax (IVA) of foreign subsidiaries |
| - |
| - |
| 21,907 |
| 27,322 |
Others |
| 152 |
| 194 |
| 22,954 |
| 17,703 |
|
| 608 |
| 812 |
| 342,740 |
| 286,014 |
20. Employee benefits and private pension plan (Consolidated)
a. ULTRAPREV - Associaçăo de Previdência Complementar
In February 2001 the Company’s Board of Directors approved the adoption of a defined contribution pension plan to be sponsored by the Company and its subsidiaries. Participating employees have been contributing to this plan, managed by Ultraprev - Associação de Previdência Complementar (“Ultraprev”), since August 2001. Under the terms of the plan, every year each participating employee chooses his or her basic contribution to the plan. Each sponsoring company provides a matching contribution in an amount equivalent to each basic contribution, up to a limit of 11% of the employee’s reference salary, according to the rules of the plan. As participating employees retire, they may choose to receive either (i) a monthly sum ranging between 0.3% and 1.0% of their respective accumulated fund in Ultraprev or (ii) a fixed monthly amount, which will exhaust their respective accumulated fund over a period of 5 to 35 years. The Company and its subsidiaries do not take responsibility for guaranteeing amounts or the duration of the benefits received by the retired employee.
In May 2020 the Deliberative Council of Ultraprev approved the use of the reversion fund in the amount of R$ 47,088, which R$ 15,756 used to deduct the sponsors’ normal contributions. The balance of R$ 31,332 on March 31, 2021 will be used to deduct normal sponsor contributions in an average period between 10 and 70 months depending on the sponsor.
For the three-month period ended March 31, 2021, the subsidiaries contributed to Ultraprev with R$ 5,750, including the use of the reversion fund of R$ 4,736 (for the three-month period ended March 31, 2021 the subsidiaries contributed to Ultraprev with R$ 5,476), which is recognized as expense in the income statement. The total number of participating employees as of March 31, 2021 was 7,128 active participants and 366 retired participants. In addition Ultraprev had 23 former employees receiving benefits under the rules of a previous plan whose reserves are fully constituted.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Post-employment benefits
The subsidiaries recognized a provision for post-employment benefits mainly related to seniority bonus, payment of Government Severance Indemnity Fund (“FGTS”), and health, dental care, and life insurance plan for eligible retirees.
The amounts related to such benefits were determined based on a valuation conducted by an independent actuary and reviewed by management as of March 31, 2021.
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
Health and dental care plan (1) | - |
| - |
| 203,299 |
| 200,318 |
Indemnification of FGTS | 2,626 |
| 2,527 |
| 54,289 |
| 53,952 |
Seniority bonus | - |
| - |
| 14,189 |
| 16,336 |
Life insurance (1) | - |
| - |
| 14,317 |
| 14,118 |
Total | 2,626 |
| 2,527 |
| 286,094 |
| 284,724 |
Current | - |
| - |
| 27,125 |
| 27,077 |
Non-current | 2,626 |
| 2,527 |
| 258,969 |
| 257,647 |
(1) Only IPP, Tropical and Iconic.
21. Provision for asset retirement obligation – fuel tanks (Consolidated)
The provision corresponds to the legal obligation to remove the subsidiary IPP’s underground fuel tanks located at by Ipiranga-branded service stations after a certain use period (see Note 2.n).
Changes in the provision for asset retirement obligation are as follows:
Balance as of December 31, 2020 | 53,435 |
Additions (new tanks) | 18 |
Expenditure with tanks removed | (138) |
Accretion expense | 1,321 |
Balance as of March 31, 2021 | 54,636 |
Current | 4,372 |
Non-current | 50,264 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
22. Provisions and contingencies (Consolidated)
a. Provisions for tax, civil, and labor risks
The Company and its subsidiaries are parties in tax, civil, environmental, regulatory, and labor disputes at the administrative and judiciary levels, which, when applicable, are backed by escrow deposits. Provisions for losses are estimated and updated by management based on the opinion of the Company’s legal department and its external legal advisors.
The table below demonstrates the breakdown of provisions by nature and its movement:
Provisions | Balance on 12/31/2020 |
| Additions |
| Reversals |
| Payments |
| Interest |
| Balance on 03/31/2021 |
IRPJ and CSLL (a.1.1) | 547,862 |
| - |
| - |
| - |
| 1,242 |
| 549,104 |
ICMS | 108,568 |
| - |
| (1,055) |
| - |
| 27 |
| 107,540 |
Civil, environmental and regulatory claims (a.2.1) | 57,772 |
| 8,583 |
| (2,723) |
| (48) |
| 16 |
| 63,600 |
Labor litigation (a.3.1) | 90,675 |
| 1,184 |
| (4,634) |
| (771) |
| 714 |
| 87,168 |
Others | 93,168 |
| - |
| - |
| - |
| 228 |
| 93,396 |
Total | 898,045 |
| 9,767 |
| (8,412) |
| (819) |
| 2,227 |
| 900,808 |
Current | 43,660 |
|
|
|
|
|
|
|
|
| 41,690 |
Non-current | 854,385 |
|
|
|
|
|
|
|
|
| 859,118 |
Some of the provisions above involve in whole or in part, escrow deposits.
Balances of escrow deposits are as follows:
| 03/31/2021 |
| 12/31/2020 |
Tax matters | 789,821 |
| 789,624 |
Labor litigation | 57,184 |
| 57,603 |
Civil and other | 103,358 |
| 102,569 |
Total – non-current assets | 950,363 |
| 949,796 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
a.1 Provisions for tax matters and social security
a.1.1 On October 7, 2005 the subsidiaries Cia. Ultragaz and Bahiana filed for and obtained a preliminary injunction to recognize and offset PIS and COFINS credits on LPG purchases, against other taxes levied by the RFB, notably IRPJ and CSLL. The decision was confirmed by a trial court on May 16, 2008. Under the preliminary injunction the subsidiaries made escrow deposits for these debits which amounted to R$ 524,426 as of March 31, 2021 (R$ 523,136 as of December 31, 2020). On July 18, 2014 a second instance unfavorable decision was published, and the subsidiaries suspended the escrow deposits, and started to pay income taxes from that date. To revert the court decision the subsidiaries presented a writ of prevention which was dismissed on December 30, 2014 and the subsidiaries appealed this decision on February 3, 2015. Appeals were also presented to the respective higher courts Superior Court of Justice (“STJ”) and Federal Supreme Court (“STF”) whose final trial are pending.
a.2 Provisions for civil, environmental and regulatory claims
a.2.1 The Company and its subsidiaries maintain provisions for lawsuits and administrative proceedings, mainly derived from contracts entered into with customers and former services providers, as well as proceedings related to environmental and regulatory issues in the amount of R$ 63,600 as of March 31, 2021 (R$ 57,772 as of December 31, 2020).
a.3 Provisions for labor matters
a.3.1 The Company and its subsidiaries maintain provisions of R$ 87,168 as of March 31, 2021 (R$ 90,675 as of December 31, 2020) for labor litigation filed by former employees and by employees of our service providers mainly contesting the non-payment of labor rights.
b. Contingent liabilities
The Company and its subsidiaries are parties in tax, civil, environmental, regulatory, and labor claims whose loss is assessed as possible (proceedings whose chance of loss is more than 25% and less or equal than 50%) by the Company and its subsidiaries’ legal departments, based on the opinion of its external legal advisors and, based on these assessments, these claims were not recognized in the financial statements. The estimated amount of this contingency is R$ 3,264,060 as of March 31, 2021 (R$ 3,236,982 as of December 31, 2020).
b.1 Contingent liabilities for tax matters and social security
The Company and its subsidiaries have contingent liabilities for tax matters and social security in the amount of R$ 2,453,711 as of March 31, 2021 (R$ 2,419,000 as of December 31, 2020), mainly represented by:
b.1.1 The subsidiary IPP and its subsidiaries have assessments invalidating the offset of excise tax (“IPI”) credits in connection with the purchase of raw materials used in the manufacturing of products which sales are not subject to IPI under the protection of tax immunity. The amount of this contingency is R$ 176,725 as of March 31, 2021 (R$ 176,390 as of December 31, 2020).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b.1.2 The subsidiary IPP and its subsidiaries have legal proceedings related to ICMS. The total amount involved in these proceedings, was R$ 958,503 as of March 31, 2021 (R$ 958.134 as of December 31, 2020). Such proceedings arise mostly of the disregard of ICMS credits amounting to R$ 300,655 as of March 31, 2021 (R$ 300,707 as of December 31, 2020), of which R$ 92,768 (R$ 92,687 as of December 31, 2020) refer to proportional reversal requirement of ICMS credits related to the acquisition of hydrated alcohol; of alleged non-payment in the amount of R$ 98,266 as of March 31, 2021 (R$ 98,157 as of December 31, 2020); of conditioned fruition of fiscal incentive in the amount of R$ 120,197 as of March 31, 2021 (R$ 119,894 as of December 31, 2020); and inventory differences in the amount of R$ 270,090 as of March 31, 2021 (R$ 269,581 as of December 31, 2020) related to the leftovers or faults due to temperature changes or product handling.
b.1.3 The Company and its subsidiaries are parties to administrative and judicial suits involving Income Tax, Social Security Contribution, PIS and COFINS, substantially about denials of offset claims and credits disallowance which total amount is R$ 729,304 as of March 31, 2020 (R$ 709,338 as of December 31, 2020), mainly represented by:
b.1.3.1 The subsidiary IPP received a tax assessment related to the IRPJ and CSLL resulting from the supposedly undue amortization of the goodwill paid on acquisition of a subsidiary, in the amount of R$ 213,039 as of March 31, 2021 (R$ 212,350 as of December 31, 2020), which includes the amount of the income taxes, interest and penalty. Management assessed the likelihood of the tax assessment, supported by the opinion of its legal advisors, as “possible”, and therefore did not recognize a provision for this contingent liability. Management assessed the likelihood of loss in this case as "possible", supported by the opinion of its legal advisors, and therefore did not recognize a provision for this contingent liability.
b.2 Contingent liabilities for civil, environmental and regulatory claims
The Company and its subsidiaries have contingent liabilities for civil, environmental and regulatory claims in the amount of R$ 559,411, totaling 2,933 lawsuits as of March 31, 2021 (R$ 561,713, totaling 2,840 lawsuits as of December 31, 2020), mainly represented by:
b.2.1 The subsidiary Cia. Ultragaz is party to an administrative proceeding before CADE based on alleged anti-competitive practices in the State of Minas Gerais in 2001. The CADE entered a decision against Cia. Ultragaz and imposed a penalty of R$ 33.946 as of March 31, 2021 (R$ 33.895 as of December 31, 2020). The imposition of such administrative decision was suspended by a court order and its merit is being judicially reviewed.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b.2.2 In 2016, the subsidiary Cia. Ultragaz became party to two administrative proceedings filed by CADE, related to allegations of anti-competitive practices: i) one of the proceedings relate to practices in the State of Paraíba and other Northeast States, in which the subsidiary Bahiana is part along with Cia. Ultragaz. On this proceeding, Cia. Ultragaz and Bahiana signed a Cessation Commitment Agreement (“TCC”) with CADE, approved on November 22, 2017, in the amount of R$ 95,987, paid in 8 (eight) equal installments updated semiannually by SELIC, with maturity of the first one in 180 (one hundred and eighty) days from the date of publication of the approval. Three employees and one former employee signed TCC in the total amount of R$ 1,100. With the TCC, the administrative proceeding will be suspended in relation to the Cia. Ultragaz and Bahiana until final decision; ii) the second proceeding relate to practices in the Federal District and around, in which only Cia. Ultragaz is part. On this proceeding, Cia. Ultragaz also signed a TCC with CADE, approved on September 6, 2017, in the amount of R$ 2,154, paid in a single installment in March 8, 2018. Two former employees signed TCC, in the amount of R$ 50 each. With the TCC, the administrative proceeding will be suspended in relation to the Cia. Ultragaz until final decision.
b.2.3 The subsidiary IPP became party to two administrative proceedings filed by CADE, related to allegations of anti-competitive practices in the city of Joinville, State of Santa Catarina and in the Distrito Federal. The process related to the anti-competitive acts of Joinville, established in October 2015, is under judgment (until now two favorable votes and one unfavorable vote have been pronounced) while the lawsuit related to the Distrito Federal, from an administrative inquiry initiated in May 2012, which was converted into an administrative proceeding in June 2020, is in the stage of presentation of defense. Besides these, in April, 2019, IPP received an administrative fine in the amount of R$ 40,693, for allegedly influencing uniform commercial conduct among fuel resellers around the city of Belo Horizonte, state of Minas Gerais. In this case, there was an option for the judicial discussion of the assessment and penalty applied, which has as last relevant movement the presentation of a reply by IPP, and it is certain that a decision has already been issued granting protection to suspend the enforceability of the fine. Management did not recognize a provision for these contingencies, supported by the opinion of external legal counsel that classified the probability of loss as remote. Management did not recognize a provision for these contingencies, supported by the opinion of external lawyers, who classify the likelihood of loss as remote.
b.2.4 On November 29, 2016 a technical opinion was issued by the Operational Support Center for Execution (Centro de Apoio Operacional à Execução – CAEX), a technical body linked to the São Paulo State Public Prosecutor (“MPE”), presenting a proposal of compensation for the alleged environmental damages caused by the fire on April 2nd, 2015 at the Santos Terminal of the subsidiary Tequimar. This technical opinion is non-binding, with no condemnatory or sanctioning nature, and will still be evaluated by the authorities and parties. The subsidiary disagrees with the methodology and the assumptions adopted in the proposal and is negotiating an agreement with the MPE and the Brazilian Federal Public Prosecutor (“MPF”), since the beginning of the investigation and currently there is no civil lawsuit filed on the matter. The negotiations relate to in natura repair of the any damages. Thus, on May 15, 2019, the subsidiary Tequimar signed a Partial Conduct Adjustment Commitment Agreement (“TAC”) in the amount of R$ 67,539 with the MPE and MPF to compensate for diffuse and collective damages of any kind arising from the fish mortality and the damage caused to the ichthyofauna. The negotiation on compensation for other alleged damages are still ongoing and once concluded, the payments related to the project costs may affect the future Company’s financial statements.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
In the criminal sphere, the MPF denounced the subsidiary Tequimar, which was summoned and replied to the complaint on June 19, 2018. On September 12, 2019, at a hearing in the federal court of Santos, the MPF and Tequimar agreed, and the judicial authority approved, the conditional suspension of the criminal proceedings for a period of 2 years, when Tequimar shall then prove compliance with the execution of the Partial TAC signed, with the obligation of a complementary allocation of R$ 13,000 to TAC and the Fisheries Management Project, to obtain the definitive filing of the process. On February 4, 2021, the subsidiary paid the remaining balance referring to the TAC, without pending and/or additional financial obligation arising from such commitment assumed. In addition, as of March 31, 2021, there are contingent liabilities not recognized related to lawsuits in the amount of R$ 4,243 (R$ 4,428 as of December 31, 2020). Between December 31 2020 and March 31, 2021, there were not extrajudicial claims.
b.3 Contingent liabilities for labor matters
The Company and its subsidiaries have contingent liabilities for labor matters in the amount of R$ 250,939, totaling 1,322 lawsuits as of March 31, 2021 (R$ 256,269, totaling 1,306 lawsuits as of December 31, 2020), mainly represented by:
b.3.1 The Petrochemical Industry Labor Union (Sindiquímica), of which the employees of Oxiteno S.A. and EMCA, companies located in the Camaçari Petrochemical Complex, are members, filed, in 1990, collective lawsuits against the subsidiaries, demanding the compliance of the fourth section of the collective labor agreement 1989/1990 (CCT 1989/1990), which provided for a salary, adjustment in lieu of the salary policies practiced. The collective actions against the subsidiaries, which have already become final, were judged in a favorable way to Oxiteno Nordeste and EMCA. At the same time, in 1990, there was the proposal for a collective agreement of, which appeared in the collective action, the Union of Employees and the Union of Companies (SINPEQ), discussing the same object (validity of the fourth clause of CCT 1989/1990). This action that transit judged only in October 2019, and remained unfavorable to SINPEQ, having the STF declared valid the fourth clause. During the process of collective agreement between the Unions, some companies in the Camaçari Petrochemical Complex signed an agreement with Sindiquímica. In October 2015 Sindiquímica filed enforcement lawsuits against Oxiteno Nordeste and, in 2017, EMCA, because these companies did not sign the agreement of 2010 with Sindiquímica. In addition to collective actions, individual claims containing the same object have been filed. In all the ongoing lawsuits whose object is the fourth clause, all applicable legal measures have been taken to defend companies and there are not new final decisions in addition to those judged in favor of companies in the 1990s.
c. Lubricants operation between IPP and Chevron
In the process of transaction of the lubricants' operation in Brazil between Chevron and subsidiary IPP (see Note 3.c of Interim Financial Information of 2018 filed on CVM February 20, 2019), it was agreed that each shareholder is responsible for any claims arising out of acts, facts or omissions that occurred prior to the transaction. The liability provisions of the Chevron shareholder in the amount of R$ 101,731 (R$ 101,663 as of December 31, 2020) are reflected in the consolidation of these financial statements. Additionally, in connection with the business combination, a provision in the amount of R$ 198,900 was recognized on December 1, 2017 due contingent liabilities, amounted to R$ 102,777 as of March 31, 2021 (R$ 102.777 as of December 31, 2020. The amounts of provisions of Chevron's liability recognized in the business combination will be reimbursed to subsidiary Iconic in the event of losses and an indemnity asset was hereby constituted in the same amount, without the need to establish a provision for uncollectible amounts.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
d. Exclusion of ICMS from the calculation basis of PIS and COFINS (contingent assets)
In March 15, 2017, STF decided that ICMS is not included in the PIS and COFINS basis. All subsidiaries of the Company have actions aimed at obtaining this right, as long as applicable. The subsidiaries Oxiteno S.A., Extrafarma, Tequimar and Tropical have final and unappealable decision, and management confirmed the respective subsidies to prove the amounts to be refunded and recorded in results (see Note 7.a.3). As a result of injunctions obtained, some subsidiaries have already excluded ICMS from the PIS and COFINS calculation base in the amount of R$ 98,698 until March 31, 2021 (R$ 215,365 as of December 31, 2020). There was a reduction in the amounts excluded based on injunctions, since the subsidiary Iconic was final and unappealable in the first quarter of 2021. The amounts to be recovered from the other subsidiaries will be recognized to the extent that, there are both the final and unappealable decision of the individual action and confirmation of the evidences.
The Company's management emphasizes that it is possible for the STF to modulate the effects of its judgment, either by restricting its effectiveness or determining when the decision will become effective, or by reinterpreting the value of ICMS to be excluded. After the decision of the STF has become final and unappealable, the Company's management will assess the impact on the claims of its subsidiaries, which may result in a reduction in the claimed tax credits.
23. Deferred revenue (Consolidated)
The subsidiaries of the Company have recognized the following deferred revenue:
| 03/31/2021 |
| 12/31/2020 |
‘am/pm’ and Jet Oil franchising upfront fee (a) | 318 |
| 814 |
Loyalty program “Km de Vantagens” (b) | 13,943 |
| 15,424 |
Loyalty program “Clube Extrafarma” (b) | 2,059 |
| 2,044 |
Total current | 16,320 |
| 18,282 |
a. Franchising upfront fee
am/pm is the convenience stores chain of the Ipiranga service stations and, on March 31, 2021, had 31 stores inaugurated with initial deferred franchising upfront fee (58 stores inaugurated as of December 31, 2020). Jet Oil is Ipiranga’s lubricant-changing and automotive service specialized network and, on March 31, 2021 had 10 stores inaugurated with initial deferred franchising upfront fee (45 stores inaugurated as of December 31, 2020). For more information on the deferred revenue from the franchising upfront fee, see Note 2.a.
b. Loyalty programs
Subsidiary Ipiranga participates in a loyalty program called Km de Vantagens (www.kmdevantagens.com.br) under which registered customers are rewarded with points when they buy products at Ipiranga service stations or at its partners. The customers may exchange these points, during the period of one year, for discounts on products and services offered by Ipiranga and its partners. Points received by Ipiranga’s customers that may be used with the partner Multiplus Fidelidade and for discounts of fuel in Ipiranga’s website (www.postoipiranganaweb.com.br) and recognized as a reduction of revenue from sales and services.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Subsidiary Extrafarma has a loyalty program called Clube Extrafarma (www.clubeextrafarma.com.br) under which registered customers are rewarded with points when they buy products at its drugstore chain. The customers may exchange these points, during the period of six months, for discounts in products at its drugstore chain, recharge credit on a mobile phone, and prizes offered by partners Multiplus Fidelidade and Ipiranga, through Km de Vantagens. Points received by Extrafarma’s customers are recognized as a reduction of revenue from sales and services.
Deferred revenue is estimated based on the fair value of the points granted, considering the value of the prizes and the expected redemption of these points. For more information on deferred revenue from loyalty program, see Note 2.a.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
24. Subscription warrants – indemnification
Because of the association between the Company and Extrafarma on January 31, 2014, 7 subscription warrants – indemnification could be issued, corresponding to up to 6,411,244 shares of the Company. The subscription warrants – indemnification may be exercised beginning 2020 by the former shareholders of Extrafarma and are adjusted according to the changes in the amounts of provisions for tax, civil, and labor risks and contingent liabilities related to the period prior to January 31, 2014. The subscription warrants – indemnification’s fair value is measured based on the share price of Ultrapar (UGPA3) and is reduced by the dividend yield until 2020, since the exercise is possible only from 2020, and they are not entitled to dividends while they are not converted into shares.
On February 19, 2020, August 12, 2020 and February 24, 2021 the Company’s Board of Directors confirmed, the issuance of, respectively, 2,108,542, 86,978 and 70,939 common shares within the authorized capital limit provided by the art. 6 of the Bylaws, due to the partial exercise of the rights conferred by the subscription warrants issued by the Company when the merger of all Extrafarma shares by the Company, approved by the extraordinary general meeting of the Company held in January 31, 2014.
In the association agreement between the Company and Extrafarma on January 31, 2014 and due to the unfavorable decisions of some processes prior on January 31, 2014, 574,648 shares linked to the subscription warrants – indemnification were canceled and not issued. Also, 3,567,069 shares were retained, linked to subscription warrants – indemnification, which will be issued or canceled according as the final decision of the processes are favorable or unfavorable, respectively. On March 31, 2021, the maximum number of shares, which may be issued in the future, linked to the subscription warrants – indemnification, is up to 3,567,069 shares, totaling R$ 75,658.
25. Equity
a. Share capital
On March 31, 2021 the subscribed and paid-in capital stock consists of 1,115,076,651 (1,115,005,712 as of December 31, 2020) common shares with no par value and the issuance of preferred shares and participation certificates is prohibited. Each common share entitles its holder to one vote at Shareholders’ Meetings.
The price of the outstanding shares as of March 31, 2021, on B3 was R$ 21.21 (R$ 23.74 as of December 31, 2020).
On February 19, 2020, August 12, 2020 and February 24, 2021, the Board of Directors confirmed the issuance of 2,108,542, 86,978 and 70,939 common shares, respectively, with the same rights attributed to the other shares of the Company already issued, due to the partial exercise of the rights conferred by the subscription warrants – indemnification into shares by the Company in the merger of Extrafarma shares. For more information on the changes in share capital, see note 24.
As of March 31, 2021 there were 49,955,494 common shares outstanding abroad in the form of ADRs (47,413,094 shares as of December 31, 2020).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
On April 10, 2019 the Company’s extraordinary and annual general meeting approved the stock split of common shares issued by Ultrapar, at a ratio of one currently existing share to two shares of the same class and type as well as the changing of the number of shares in which the capital stock of the Company is divided. The stock split approved herein shall not imply in any change in the Ultrapar’s capital stock. The new shares and ADRs resulting from the stock split approved herein are of the same class and type and granted to its holders the same rights of the current shares and ADRs.
b. Equity instrument granted
The Company has a share-based incentive plan, which establishes the general terms and conditions for the concession of common shares issued by the Company held in treasury (see Note 8.c).
c. Treasury shares
The Company acquired its own shares at market prices, without capital reduction, to be held in treasury and to be subsequently disposed of or cancelled, in accordance with CVM Instructions 10, issued on February 14, 1980 and 268, issued on November 13, 1997.
As of March 31, 2021, 24,739,626 common shares were held in the Company's treasury, acquired at an average cost of R$ 19.77 (24,739,626 as of December 31, 2019).
d. Capital reserve
The capital reserve reflects the gain on the transfer of shares at market price used in the Deferred Stock Plan granted to executives of the subsidiaries of the Company, as mentioned in Note 8.c.
Because of Extrafarma’s association in 2014 the Company recognized an increase in the capital reserves in the amount of R$ 498,812, due to the difference between the value attributable to share capital and the market value of the Ultrapar shares on the date of issue, deducted by R$ 2,260 related to the incurred costs directly attributable to issuing new shares. Additionally, on February 19, 2020, August 12, 2020 and February 24, 2021, there was an increase in the reserve in the amount of R$ 53,072, R$ 1,691 and R$ 1,371, respectively, due to the partial exercise of the subscription warrants – indemnification (see note 24).
e. Revaluation reserve
The revaluation reserve, recognized prior to the adoption of the international accounting standards (CPC / IFRS) instituted by Law 11,638/07, reflects the revaluation of assets of subsidiaries and is based on depreciation, write-off, or disposal of the revalued assets of the subsidiaries, as well as the tax effects recognized by these subsidiaries.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
f. Profit reserves
f.1 Legal reserve
Under Brazilian Corporate Law, the Company is required to allocate 5% of net annual earnings to a legal reserve, until the balance reaches 20% of capital stock. This reserve may be used to increase capital or to absorb losses but may not be distributed as dividends.
f.2 Investments reserve
In compliance with Article 194 of the Brazilian Corporate Law and Article 54.b) of the Bylaws this reserve is aimed to protect the integrity of the Company’s assets and to supplement its capital stock, in order to allow new investments to be made. As provided in its Bylaws, the Company may allocate up to 50% of the annual net income, after deducting the legal reserve, to the investments reserve, up to the limit of 100% of the share capital.
The investments reserve is free of distribution restrictions and totaled R$ 3,658,265 as of March 31, 2021 (R$ 3,658,265 as of December 31, 2020).
g. Other comprehensive income
g.1 Valuation adjustments
(i) | Gains and losses on the hedging instruments of exchange rate related to firm commitment and highly probable transactions designated as cash flows hedges are recognized in equity as “valuation adjustments”. Gains and losses are reclassified to initial cost of non-financial assets recognized in statements of profit or loss at the moment of paid off of the hedge instrument. |
(ii) | The differences between the fair value of financial investments measured at fair value through other comprehensive income and the initial amount of financial investments plus the earned income and the foreign currency exchange variation are recognized in equity as valuation adjustments. Gains and losses are reclassified to statements of profit or loss when the financial investment is paid off. |
(iii) | Actuarial gains and losses relating to post-employment benefits, calculated based on a valuation conducted by an independent actuary, are recognized in equity under the title “valuation adjustments”. Actuarial gains and losses recorded in equity are not reclassified to profit or loss in subsequent periods. |
(iv) | The Company also recognizes in this item the effect of changes in the non-controlling interest in subsidiaries that do not result in loss of control. This amount corresponds to the difference between the amount by which the non-controlling interest was adjusted and the fair value of the consideration received or paid and represents a transaction with shareholders. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Balance and changes in valuation adjustments of the Company are as follows:
| Fair value of cash flow hedging instruments (i) |
| Fair value of financial instruments (ii) |
| Actuarial gains (losses) of post-employment benefits (iii) |
| Non-controlling shareholders interest change (iv) |
| Total |
Balance as of December 31, 2020 | (609,277) |
| 269 |
| (53,351) |
| 197,369 |
| (464,990) |
Changes in fair value of financial instruments | (182,652) |
| 132 |
| - |
| - |
| (182,520) |
IRPJ and CSLL on fair value | 62,594 |
| - |
| - |
| - |
| 62,594 |
Balance as of March 31, 2021 | (729,335) |
| 401 |
| (53,351) |
| 197,369 |
| (584,916) |
| Fair value of cash flow hedging instruments (i) |
| Fair value of financial instruments (ii) |
| Actuarial gains (losses) of post-employment benefits (iii) |
| Non-controlling shareholders interest change (iv) |
| Total |
Balance as of December 31, 2019 | (296,132) |
| 205 |
| (47,759) |
| 197,369 |
| (146,317) |
Changes in fair value of financial instruments | (634,188) |
| 183 |
| ‐ |
| ‐ |
| (634,005) |
IRPJ and CSLL on fair value | 216,474 |
| ‐ |
| ‐ |
| ‐ |
| 216,474 |
Balance as of March 31, 2020 | (713,846) |
| 388 |
| (47,759) |
| 197,369 |
| (563,848) |
g.2 Cumulative Translation Adjustments
The change in exchange rates on assets, liabilities, and income of foreign subsidiaries that have functional currency other than the presentation currency of the Company and an independent management (see Note 2.s.1) and the exchange rate variation on notes in the foreign market, net of income taxes (see Note 33.h.3) is directly recognized in the equity. This cumulative effect is reflected in profit or loss as a gain or loss only in case of disposal or write-off of the investment.
Balance and changes in cumulative translation adjustments of the Company are as follows:
| 03/31/2021 |
| 03/31/2020 |
Initial balance | 231,596 |
| 102,427 |
Currency translation adjustment of foreign subsidiaries | 119,236 |
| 195,107 |
Effect of foreign currency exchange rate variation on financial instruments | (47,557) |
| (110,960) |
IRPJ and CSLL on foreign currency exchange rate variation on financial instruments | 16,169 |
| 37,727 |
Final balance | 319,444 |
| 224,301 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
h. Dividends and allocation of net income
The shareholders of the Company is entitled under the Bylaws to a minimum annual dividend of 50% of adjusted net income, after allocation of 5% to the legal reserve, calculated in accordance with Brazilian Corporate Law. The dividends and interest on equity in excess of the obligation established in the Bylaws are recognized in equity until the Shareholders approve them. The proposed dividends payable that refers of the exercise of 2020, the amount of which on as of December 31, 2020 totaled R$ 479,748 (R$ 0.44 – forty-four cents of Brazilian Real per share), were approved by the Board of Directors on February 24, 2021, and were paid from March 12, 2021.
Balances and changes in dividends payable are as follows:
| Parent |
| Consolidated |
Balance as of December 31, 2020 | 439,094 |
| 442,133 |
Provisions | 55,391 |
| 57,997 |
Payments | (477,353) |
| (477,440) |
Balance as of March 31, 2021 | 17,132 |
| 22,690 |
26. Net revenue from sale and services (Consolidated)
| 03/31/2021 |
| 03/31/2020 |
Gross revenue from sale | 25,128,105 |
| 22,770,778 |
Gross revenue from services | 249,128 |
| 228,042 |
Sales taxes | (1,041,589) |
| (1,058,984) |
Discounts and sales returns | (339,108) |
| (472,125) |
Amortization of contractual assets with customers (see Note 11) | (48,214) |
| (82,860) |
Deferred revenue (see Note 23) | 1,962 |
| 2,287 |
Net revenue from sales and services | 23,950,284 |
| 21,387,138 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
27. Costs and expenses by nature
The Company presents its costs and expenses by function in the consolidated statement of profit or loss and presents below its expenses by nature:
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Raw materials and materials for use and consumption | - |
| - |
| 21,891,536 |
| 19,737,611 |
Personnel expenses | 39,117 |
| 33,526 |
| 600,891 |
| 526,661 |
Freight and storage | - |
| - |
| 278,542 |
| 268,518 |
Depreciation and amortization | 1,453 |
| 293 |
| 245,372 |
| 225,860 |
Amortization of right-of-use assets | 1,503 |
| 512 |
| 87,329 |
| 77,867 |
Advertising and marketing | - |
| - |
| 27,183 |
| 45,261 |
Services provided by third parties | 23,382 |
| 4,425 |
| 121,105 |
| 58,891 |
Other expenses | 7,508 |
| 3,964 |
| 105,683 |
| 61,034 |
Allocation of SSC/Holding expenses | (72,963) |
| (42,720) |
| - |
| - |
Total | - |
| - |
| 23,357,641 |
| 21,001,703 |
Classified as: |
|
|
|
|
|
|
|
Cost of products and services sold | - |
| - |
| 22,234,378 |
| 19,977,191 |
Selling and marketing | - |
| - |
| 654,573 |
| 614,631 |
General and administrative | - |
| - |
| 468,690 |
| 409,881 |
Total | - |
| - |
| 23,357,641 |
| 21,001,703 |
28. Gain (loss) on disposal of PP&E and intangibles (Consolidated)
The gain or loss is determined as the difference between the selling price and residual book value of the investment, PP&E, and intangible asset. For the three-month period ended March 31, 2021 the gain was R$ 8,076 (gain of R$ 6,938 for the three-month period ended March 31, 2020), represented primarily from sale of PP&E.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
29. Other operating income, net (Consolidated)
| 03/31/2021 |
| 03/31/2020 |
Other operating income, net: |
|
|
|
Commercial partnerships (1) | 4,866 |
| 2,560 |
Merchandising (2) | 8,844 |
| 6,733 |
Extraordinary tax credits (3) | - |
| 114,402 |
Property rental (4) | 6,262 |
| 6,094 |
Revenue from miscellaneous services (administrative, commercial and IT services) | 23,265 |
| 22,877 |
Contractual fine and gas voucher | 9,365 |
| 6,135 |
Others | - |
| 772 |
| 52,602 |
| 159,573 |
Other operating expenses, net: |
|
|
|
Property rental (4) | (22,061) |
| (24,092) |
Taxes on other operating income (5) | (6,130) |
| (10,024) |
Fines por tax infractions | - |
| (973) |
Provision for decarbonization obligation (6) | (32,640) |
| - |
Others | (4,196) |
| (545) |
| (65,027) |
| (35,634) |
Other operating income, net | (12,425) |
| 123,939 |
(1) | Refers to contracts with service providers and suppliers, which establish trade agreements for convenience stores and gas stations. |
(2) | Refers to contracts with suppliers of convenience stores, which establish, among other agreements, promotional campaigns. |
(3) | Refers substantially to Oxiteno S.A., Ipiranga and Ultracargo PIS and COFINS credits (see Note 7.a.2). |
(4) | Refers to Ipiranga's income and expenses with property rentals and sublease, especially for establishment of own gas stations, linked to contractual requirements for the preservation of the brand. |
(5) | Refers substantially to ICMS, ISS, PIS and COFINS. |
(6) | Refers to the obligation adopted by the Brazilian National Biofuels Policy – “RenovaBio” (implemented by Law No. 13,576/2017, with additional regulations established by Decree No. 9,888/2019 and Ordinance No. 419 of November 20, 2019 issued by the Brazilian Ministry of Mines and Energy) to set decarbonization targets for its sector. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
30. Finance income (Expense)
| Parent |
| Consolidated | ||||
| 03/31/2021 |
| 03/31/2020 |
| 03/31/2021 |
| 03/31/2020 |
Finance income: |
|
|
|
|
|
|
|
Interest on financial investments | 8,992 |
| 9,938 |
| 24,904 |
| 43,062 |
Interest from customers | - |
| ‐ |
| 28,058 |
| 29,140 |
Changes in subscription warrants – indemnification (see Note 24) | 9,364 |
| 24,176 |
| 9,364 |
| 24,176 |
Selic interest on extraordinary PIS/COFINS credits (see Note 7.a.2) | - |
| ‐ |
| - |
| 77,760 |
Other finance income | 43 |
| 20 |
| 1,107 |
| 7,913 |
| 18,399 |
| 34,134 |
| 63,433 |
| 182,051 |
Finance expenses: |
|
|
|
|
|
|
|
Interest on loans | (14,008) |
| - |
| (144,192) |
| (100,608) |
Interest on debentures | (9,144) |
| (18,945) |
| (24,863) |
| (88,966) |
Interest on leases payable | (825) |
| (1,733) |
| (37,264) |
| (33,983) |
Bank charges, financial transactions tax, and other charges | (465) |
| (375) |
| (21,441) |
| (27,584) |
Exchange variation, net of gains and losses with derivative financial instruments | - |
| - |
| (161,286) |
| (97,076) |
Interest of provisions and other expenses | - |
| - |
| (8,068) |
| (1,464) |
| (24,442) |
| (21,053) |
| (397,114) |
| (349,681) |
Finance income (expense) | (6,043) |
| 13,081 |
| (333,681) |
| (167,630) |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
31. Earnings per share (Parent and Consolidated)
The table below presents a reconciliation of numerators and denominators used in computing earnings per share. The Company has a deferred stock plan and subscription warrants – indemnification, as mentioned in Notes 8.c and 24, respectively.
| 03/31/2021 |
| 03/31/2020 |
Basic earnings per share |
|
|
|
Net income for the year of the Company | 132,163 |
| 160,859 |
Weighted average shares outstanding (in thousands) | 1,088,112 |
| 1,086,810 |
Basic earnings per share – R$ | 0.1215 |
| 0.1480 |
Diluted earnings per share |
|
|
|
Net income for the year of the Company | 132,163 |
| 160,859 |
Weighted average shares outstanding (in thousands), including dilution effects | 1,093,904 |
| 1,093,177 |
Diluted earnings per share – R$ | 0.1208 |
| 0.1471 |
Weighted average shares outstanding (in thousands) |
|
|
|
Weighted average shares outstanding for basic per share | 1,088,112 |
| 1,086,810 |
Dilution effect |
|
|
|
Subscription warrants – indemnification | 3,567 |
| 3,567 |
Deferred stock plan | 2,225 |
| 2,800 |
Weighted average shares outstanding for diluted per share | 1,093,904 |
| 1,093,177 |
Earnings per share were adjusted retrospectively by the issue of 2,266,459 common shares due to the partial exercise of the rights conferred by the subscription warrants disclosed in note 24.
32. Segment information
The Company operates six main business segments: gas distribution, fuel distribution, chemicals, storage, drugstores and digital payments. The gas distribution segment (Ultragaz) distributes LPG to residential, commercial, and industrial consumers, especially in the South, Southeast, and Northeast regions of Brazil. The fuel distribution segment (Ipiranga) operates the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles, and lubricants and related activities throughout all the Brazilian territory. The chemicals segment (Oxiteno) produces ethylene oxide and its main derivatives and fatty alcohols, which are raw materials used in the home and personal care, agrochemical, paints, varnishes, and other industries. The storage segment (Ultracargo) operates liquid bulk terminals, especially in the Southeast and Northeast regions of Brazil. The drugstores segment (Extrafarma) trades pharmaceutical, hygiene, and beauty products through its own drugstore chain in the North, Northeast and Southeast regions of the country. The digital payments segment (Abastece aí) offers digital payments and electronic retailing segment, combining the “abastece aí” app and the loyalty program “Km de Vantagens”. The segments shown in the financial statements are strategic business units supplying different products and services. Intersegment sales are at prices similar to those that would be charged to third parties.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
a. Financial information related to segments
The main financial information of each of the Company’s segments are stated as follows:
03/31/2021 | |||||||||||||||||||||
Income | Ipiranga | Ultragaz | Oxiteno | Ultracargo | Extrafarma | Abastece | Subtotal Segments | Others (1) (2) | Elimination | Total | |||||||||||
Net revenue from sales and services | 19,844,959 | 2,037,795 | 1,436,421 | 172,038 | 489,764 | 14,165 | 23,995,142 | 9,700 | (54,558) | 23,950,284 | |||||||||||
Transactions with third parties | 19,844,927 | 2,036,802 | 1,430,764 | 127,064 | 489,764 | 14,165 | 23,943,486 | 6,798 | - | 23,950,284 | |||||||||||
Intersegment transactions | 32 | 993 | 5,657 | 44,974 | - | - | 51,656 | 2,902 | (54,558) | - | |||||||||||
Cost of products and services sold | (18,947,757) | (1,811,907) | (1,104,902) | (68,764) | (345,928) | - | (22,279,258) | - | 44,880 | (22,234,378) | |||||||||||
Gross profit | 897,202 | 225,888 | 331,519 | 103,274 | 143,836 | 14,165 | 1,715,884 | 9,700 | (9,678) | 1,715,906 | |||||||||||
Operating income (expenses) |
|
|
|
|
|
|
|
|
|
| |||||||||||
Selling and marketing | (304,975) | (92,942) | (100,475) | (2,061) | (141,818) | (10,752) | (653,023) | (1,550) | - | (654,573) | |||||||||||
Expected losses on doubtful accounts | (473) | (3,256) | (236) | 15 | 10 | - | (3,940) | - | - | (3,940) | |||||||||||
General and administrative | (181,704) | (50,473) | (122,798) | (31,688) | (25,658) | (20,367) | (432,688) | (45,680) | 9,678 | (468,690) | |||||||||||
Gain (loss) on disposal of property, plant and equipment and intangibles | 5,769 | 2,626 | 277 | 50 | (648) | - | 8,074 | 2 | - | 8,076 | |||||||||||
Other operating income, net | (19,780) | 5,591 | 1,515 | (843) | (1,491) | 2,719 | (12,289) | (136) | - | (12,425) | |||||||||||
Operating income before finance income (expenses) and share of profit (loss) of subsidiaries, joint ventures and associates | 369,039 | 87,434 | 109,802 | 68,747 | (25,769) | (14,235) | 622,018 | (37,664) | - | 584,354 | |||||||||||
Share of profit (loss) of subsidiaries, joint ventures and associates | (6,504) | (10) | (85) | 476 | - | - | (6,123) | (6,099) | - | (12,222) | |||||||||||
Operating income before finance income (expenses) and income and social contribution taxes | 389,535 | 87,424 | 109,717 | 69,223 | (25,769) | (14,235) | 615,895 | (43,763) | - | 572,132 | |||||||||||
Depreciation of PP&E and amortization of intangible assets charges | 79,222 | 51,182 | 68,643 | 18,171 | 19,613 | 3,111 | 239,942 | 5,430 | - | 245,372 | |||||||||||
Amortization of contractual assets with customers – exclusive rights | 47,802 | 412 | - | - | - | - | 48,214 | - | - | 48,214 | |||||||||||
Amortization of right-of-use assets | 46,408 | 11,212 | 5,267 | 5,139 | 17,702 | 51 | 85,779 | 1,550 | - | 87,329 | |||||||||||
Total of depreciation and amortization | 173,432 | 62,806 | 73,910 | 23,310 | 37,315 | 3,162 | 373,935 | 6,980 | - | 380,915 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| 03/31/2020 | |||||||||||||||||||
Income | Ipiranga | Ultragaz | Oxiteno | Ultracargo | Extrafarma | Abastece | Subtotal Segments | Others (1)(2) | Elimination | Total | ||||||||||
Net revenue from sales and services | 17,899,585 | 1,761,500 | 1,107,862 | 163,321 | 493,348 | - | 21,425,616 | 12,726 | (51,204) | 21,387,138 | ||||||||||
Transactions with third parties | 17,899,502 | 1,760,527 | 1,101,361 | 130,978 | 493,348 | - | 21,385,716 | 1,422 | - | 21,387,138 | ||||||||||
Intersegment transactions | 83 | 973 | 6,501 | 32,343 | - | - | 39,900 | 11,304 | (51,204) | - | ||||||||||
Cost of products and services sold | (17,204,590) | (1,522,945) | (876,891) | (62,534) | (348,500) | - | (20,015,460) | - | 38,269 | (19,977,191) | ||||||||||
Gross profit | 694,995 | 238,555 | 230,971 | 100,787 | 144,848 | - | 1,410,156 | 12,726 | (12,935) | 1,409,947 | ||||||||||
Operating income (expenses) |
|
|
|
|
|
|
|
|
|
| ||||||||||
Selling and marketing | (280,635) | (97,978) | (84,456) | (1,722) | (149,231) | - | (614,022) | (609) | - | (614,631) | ||||||||||
Expected losses on doubtful accounts | (21,491) | (8,586) | (56) | 22 | (164) | - | (30,275) | - | - | (30,275) | ||||||||||
General and administrative | (171,167) | (47,514) | (109,741) | (30,804) | (25,028) | - | (384,254) | (38,562) | 12,935 | (409,881) | ||||||||||
Gain (loss) on disposal of property, plant and equipment and intangibles | 6,511 | 861 | (156) | (234) | (44) | - | 6,938 | - | - | 6,938 | ||||||||||
Other operating income, net | 44,567 | 4,895 | 71,939 | 2,906 | (325) | - | 123,982 | (43) | - | 123,939 | ||||||||||
Operating income before finance income (expenses) and share of profit (loss) of subsidiaries, joint ventures and associates | 272,780 | 90,233 | 108,501 | 70,955 | (29,944) | - | 512,525 | (26,488) | - | 486,037 | ||||||||||
Share of profit (loss) of subsidiaries, joint ventures and associates | 376 | 5 | 200 | 65 | - | - | 646 | (13,074) | - | (12,428) | ||||||||||
Operating income before finance income (expenses) and income and social contribution taxes | 273,156 | 90,238 | 108,701 | 71,020 | (29,944) | - | 513,171 | (39,562) | - | 473,609 | ||||||||||
Depreciation of PP&E and amortization of intangible assets charges | 77,253 | 46,964 | 61,393 | 15,146 | 20,782 | - | 221,538 | 4,322 | - | 225,860 | ||||||||||
Amortization of contractual assets with customers – exclusive rights | 82,509 | 351 | - | - | - | - | 82,860 | - | - | 82,860 | ||||||||||
Amortization of right-of-use assets | 42,625 | 9,415 | 2,839 | 4,359 | 18,021 | - | 77,259 | 608 | - | 77,867 | ||||||||||
Total of depreciation and amortization | 202,387 | 56,730 | 64,232 | 19,505 | 38,803 | - | 381,657 | 4,930 | - | 386,587 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
(1) | Includes in the line “General and administrative” the amount of R$ 34,110 in 2021 (R$ 25,651 in 2020) of expenses related to Ultrapar's holding structure, including the Presidency, Financial Board, Legal Board, Board of Directors and Fiscal Council, Risk, Compliance and Audit Board and Sustainability Board. |
(2) | The “Others” column consists of financial income and expenses, income tax and social contribution of the segments, the parent company Ultrapar and the subsidiaries Serma, Imaven Imóveis Ltda., Ultrapar International SA, UVC Investimentos Ltda, UVC - Fundo de investimento em participações multiestratégia investimento no exterior and equity of joint ventures of ConectCar and RPR. |
| 03/31/2021 | |||||||||
Cash flow | Ipiranga | Ultragaz | Oxiteno | Ultracargo | Extrafarma | Abastece aí | Subtotal Segments | Others (3) | Eliminaçtion | Total |
Acquisition of property, plant, and equipment | 43,346 | 75,969 | 31,841 | 90,128 | 6,014 | 41 | 247,339 | 436 | - | 247,775 |
Acquisition of intangible assets | 13,324 | 4,071 | 2,543 | 1,094 | 3,322 | 7,577 | 31,931 | - | - | 31,931 |
Payments of contractual assets with customers – exclusive rights | 35,881 | - | - | - | - | - | 35,881 | - | - | 35,881 |
| 03/31/2020 | |||||||||
Cash flow | Ipiranga | Ultragaz | Oxiteno | Ultracargo | Extrafarma | Abastece aí | Subtotal Segments | Others (3) | Elimination | Total |
Acquisition of property, plant, and equipment | 57,297 | 51,122 | 43,181 | 19,187 | 3,962 | - | 174,749 | 2,629 | - | 177,378 |
Acquisition of intangible assets | 14,438 | 6,294 | 1,084 | - | 7,683 | - | 29,499 | 13,692 | - | 43,191 |
Payments of contractual assets with customers – exclusive rights | 141,617 | 3,812 | - | - | - | - | 145,429 | - | - | 145,429 |
| 03/31/2021 | |||||||||
Assets | Ipiranga | Ultragaz | Oxiteno | Ultracargo | Extrafarma | Abastece aí | Subtotal Segments | Outros (3) | Elimination | Total |
Total assets (excluding intersegment transactions) | 18,875,308 | 2,945,552 | 9,211,002 | 2,616,063 | 1,786,671 | 96,028 | 35,530,624 | 1,940,570 | - | 37,471,194 |
| 03/31/2020 | |||||||||
Assets | Ipiranga | Ultragaz | Oxiteno | Ultracargo | Extrafarma | Abastece aí | Subtotal Segmentos | Outros (3) | Elimination | Total |
Ativos totais (excluding intersegment transactions) | 18,761,207 | 2,927,061 | 8,892,850 | 2,197,675 | 1,845,038 | 85,787 | 34,709,618 | 1,540,544 | - | 36,250,162 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
|
| 03/31/2021 |
| 03/31/2020 |
Income before financial result, income and social contribution taxes |
| 572,132 |
| 473,609 |
Financial result, net |
| (333,681) |
| (167,630) |
Income before income and social contribution taxes |
| 238,451 |
| 305,979 |
|
|
|
|
|
Additions to PP&E and intangible assets (excluding intersegment account balances): |
|
|
|
|
Ultragaz |
| 80,040 |
| 57,416 |
Ipiranga |
| 57,899 |
| 75,186 |
Oxiteno |
| 34,661 |
| 45,574 |
Ultracargo |
| 91,222 |
| 20,621 |
Extrafarma |
| 9,336 |
| 11,645 |
Abastece aí |
| 7,618 |
| - |
|
| 280,776 |
| 210,442 |
Others (1) |
| 440 |
| 16,321 |
|
|
|
|
|
Total additions to PP&E and intangible assets (see Notes 14 and 15) |
| 281,216 |
| 226,763 |
Asset retirement obligation – fuel tanks (see Note 21) |
| (18) |
| (37) |
Provision for demobilization of machinery and equipment |
| 3 |
| - |
Capitalized borrowing costs |
| (1,495) |
| (6,157) |
Total investments in PP&E and intangible assets (cash flow) |
| 279,706 |
| 220,569 |
Addition on contractual assets with customers – exclusive rights (see Note 11): |
|
|
|
|
Ipiranga |
| 108,107 |
| 156,509 |
Ultragaz |
| - |
| 3,812 |
Total |
| 108,107 |
| 160,321 |
(1) | The “Others” column comprises the parent company Ultrapar (including goodwill from certain acquisitions) and the subsidiaries Serma, Imaven Imóveis Ltda., Ultrapar International S.A., UVC Investimentos Ltda. and UVC - Fundo de investimento em participações multiestratégia investimento no exterior. |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Geographic area information
The fixed and intangible assets of the Company and its subsidiaries are located in Brazil, except those related to Oxiteno’ plants abroad, as shown below:
| 03/31/2021 |
| 12/31/2020 |
United States of America | 1,253,432 |
| 1,152,876 |
Mexico | 167,985 |
| 163,042 |
Uruguay | 98,921 |
| 90,347 |
| 1,520,338 |
| 1,406,265 |
The subsidiaries generate revenue from operations in Brazil, United Stated of America, Mexico and Uruguay, as well as from exports of products to foreign customers, as disclosed below:
| 03/31/2021 |
| 03/31/2020 |
Net revenue from sale and services: |
|
|
|
Brazil | 23,441,450 |
| 20,990,486 |
Mexico | 64,576 |
| 55,041 |
Uruguay | 7,600 |
| 8,277 |
Other Latin American countries | 193,976 |
| 132,126 |
United States of America and Canada | 162,142 |
| 129,115 |
Far East | 15,996 |
| 13,781 |
Europe | 44,550 |
| 41,446 |
Other | 19,994 |
| 16,866 |
Total | 23,950,284 |
| 21,387,138 |
Sales to the foreign market are made substantially by the Oxiteno.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
33. Risks and financial instruments (Consolidated)
a. Risk management and financial instruments – governance
The main risks to which the Company and its subsidiaries are exposed reflect strategic/operational and economic/financial aspects. Operational/strategic risks (including, but not limited to, demand behavior, competition, technological innovation, and material changes in the industry structure) are addressed by the Company’s management model. Economic/financial risks primarily reflect default of customers, behavior of macroeconomic variables, such as exchange and interest rates, as well as the characteristics of the financial instruments used by the Company and its subsidiaries and their counterparties. These risks are managed through control policies, specific strategies, and the establishment of limits.
The Company has a policy for the management of resources, financial instruments, and risks approved by its Company’s Board of Directors (“Policy”). In accordance with the Policy, the main objectives of financial management are to preserve the value and liquidity of financial assets and ensure financial resources for the development of the business, including expansions. The main financial risks considered in the Policy are market risks (currencies, interest rates and commodities), liquidity and credit. The governance of the management of financial risks follows the segregation of duties below:
The execution of the Policy has done by corporate financial board, through its treasury department, with the assistance of the accounting, legal and tax departments.
The monitoring of compliance of the Policy and possible issues is the responsibility of the Risk and Investment Committee, (“Committee”), which is composed of CFO, Treasury Director, Controller and other directors designated by the CFO. The Committee holds quarterly meetings and monitors the risk standards established by the Policy through a monitoring map on a monthly basis.
Approval of the Policy and the periodic assessment of Company exposure to financial risks are subject to the approval of the Company’s Board of Directors of Ultrapar.
The Audit and Risks Committee advises the Company’s Board of Directors in the assessment of controls, management and exposure of financial risks and revision of Policy. The Risk, Compliance and Audit board monitors of standards compliance of the Policy and reports to the Audit and Risks Committee the risks exposure and compliance or noncompliance of the Policy.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b. Currency risk
Most transactions of the Company, through its subsidiaries, are located in Brazil and, therefore, the reference currency for risk management is the Brazilian Real. Currency risk management is guided by neutrality of currency exposures and considers the risks of the Company and its subsidiaries and their exposure to changes in exchange rates. The Company considers as its main currency exposures the changes in assets and liabilities in foreign currency.
The Company and its subsidiaries use exchange rate hedging instruments (especially between the Brazilian Real and the U.S. dollar) available in the financial market to protect their assets, liabilities, receipts, and disbursements in foreign currency and net investments in foreign operations. Hedge is used in order to reduce the effects of changes in exchange rates on the Company´s income and cash flows in Brazilian Reais within the exposure limits under its Policy. Such foreign exchange hedging instruments have amounts, periods, and rates substantially equivalent to those of assets, liabilities, receipts, and disbursements in foreign currencies to which they are related.
Assets and liabilities in foreign currencies are stated below, translated into Brazilian Reais:
b.1 Assets and liabilities in foreign currencies
| 03/31/2021 |
| 12/31/2020 |
Assets in foreign currency |
|
|
|
Cash, cash equivalents and financial investments in foreign currency (except hedging instruments) | 1,631,004 |
| 1,413,276 |
Foreign trade receivables, net of allowance for doubtful accounts and advances to foreign customers | 375,458 |
| 307,829 |
Other assets | 2,115,358 |
| 1,767,626 |
| 4,121,820 |
| 3,488,731 |
Liabilities in foreign currency |
|
|
|
Financing in foreign currency, gross of transaction costs and discount | (10,095,152) |
| (9,246,707) |
Payables arising from imports, net of advances to foreign suppliers | (894,083) |
| (633,013) |
| (10,989,235) |
| (9,879,720) |
Foreign currency hedging instruments | 5,095,156 |
| 4,837,554 |
Net liability position – total | (1,772,259) |
| (1,553,435) |
Net asset (liability) position – income statement effect | (17,588) |
| 186,306 |
Net liability position – equity effect | (1,754,671) |
| (1,739,741) |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
b.2 Sensitivity analysis of assets and liabilities in foreign currency
Scenarios I, II and III were based on 10%, 25% and 50% variations, respectively, applied on the net position of the Company exposed to the currency risk, simulating the effects of appreciation and devaluation of the Real in the income statement and the equity:
The table below shows, in the three scenarios, the effects of exchange rate changes on the net liability position of R$ 1,772,259 in foreign currency as of March 31, 2021:
| Risk | Scenario I | Scenario II | Scenario III | |||
|
| Base | 25% | 50% | |||
(1) Income statement effect | Real devaluation | (1,759) | (4,397) | (8,794) | |||
(2) Equity effect | (175,467) | (438,668) | (877,335) | ||||
(1) + (2) | Net effect | (177,226) | (443,065) | (886,129) | |||
(3) Income statement effect | Real appreciation | 1,759 | 4,397 | 8,794 | |||
(4) Equity effect | 175,467 | 438,668 | 877,335 | ||||
(3) + (4) | Net effect | 177,226 | 443,065 | 886,129 |
The table below shows, in the three scenarios, the effects of exchange rate changes on the net liability position of R$ 1,553,435 in foreign currency as of December 31, 2020:
| Risk | Scenario I | Scenario II | Scenario III | |||
|
| Base | 25% | 50% | |||
(1) Income statement effect | Real devaluation | 18,631 | 46,577 | 93,153 | |||
(2) Equity effect | (173,974) | (434,935) | (869,871) | ||||
(1) + (2) | Net effect | (155,343) | (388,358) | (776,718) | |||
(3) Income statement effect | Real appreciation | (18,631) | (46,577) | (93,153) | |||
(4) Equity effect | 173,974 | 434,935 | 869,871 | ||||
(3) + (4) | Net effect | 155,343 | 388,358 | 776,718 |
The equity effect refers to cumulative translation adjustments of changes in the exchange rate on equity of foreign subsidiaries (see Notes 2.s.1 and 25.g.2), net investments hedge in foreign entities, cash flow hedge of firm commitment and highly probable transaction (see Note 2.c and “h. Hedge Accounting” below).
c. Interest rate risk
The Company and its subsidiaries adopt policies for borrowing and investing financial resources and for capital cost minimization. The financial investments of the Company and its subsidiaries are primarily held in transactions linked to the DI, as set forth in Note 4. Borrowings primarily relate to financing from Banco do Brasil, as well as debentures and borrowings in foreign currency, as shown in Note 16.
The Company attempts to maintain most of its financial interest assets and liabilities at floating rates.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
c.1 Assets and liabilities exposed to floating interest rates
The financial assets and liabilities exposed to floating interest rates are demonstrated below:
| Note | 03/31/2021 |
| 12/31/2020 |
DI |
|
|
|
|
Cash equivalents | 4.a | 3,441,797 |
| 2,241,852 |
Financial investments | 4.b | 2,088,829 |
| 3,749,852 |
Loans and debentures | 16.a | (6,973,033) |
| (6,947,362) |
Liability position of foreign exchange hedging instruments – DI | 33.g | (2,122,876) |
| (2,124,146) |
Liability position of fixed interest instruments + IPCA – DI | 33.g | (2,067,207) |
| (2,203,705) |
Net liability position in DI |
| (5,632,490) |
| (5,283,509) |
TJLP |
|
|
|
|
Loans – TJLP | 16.a | (26,921) |
| (29,803) |
Net liability position in TJLP |
| (26,921) |
| (29,803) |
LIBOR |
|
|
|
|
Asset position of foreign exchange hedging instruments – LIBOR | 33.g | 288,232 |
| 260,958 |
Loans – LIBOR | 16.a | (627,412) |
| (573,484) |
Net liability position in LIBOR |
| (339,180) |
| (312,526) |
Total net liability position exposed to floating interest |
| (5,998,592) |
| (5,625,838) |
c.2 Sensitivity analysis of floating interest rate risk
For sensitivity analysis of floating interest rate risk, the Company used the accumulated amount of the reference indexes (DI, TJLP, LIBOR and SELIC) as a base scenario. Scenarios I, II and III were based on 10%, 25% and 50% variations, respectively, applied in the floating interest rate of the base scenario:
The tables below show the incremental expenses and income that would be recognized in finance income, due to the effect of floating interest rate changes in different scenarios.
|
| 03/31/2021 | |||||||||
| Risk | Scenario I | Scenario II | Scenario III | |||||||
|
| Base | 25% | 50% | |||||||
Interest effect on cash equivalents and financial | Increase in DI | 2,316 | 5,791 | 11,582 | |||||||
Interest effect on debt in DI | Increase in DI | (3,446) | (8,616) | (17,231) | |||||||
Interest rate hedging instruments (liabilities in DI) effect | Increase in DI | (2,697) | (5,294) | (9,623) | |||||||
Incremental expenses |
| (3,827) | (8,119) | (15,272) | |||||||
Interest effect on debt in TJLP | Increase in TJLP | (32) | (79) | (159) | |||||||
Incremental expenses |
| (32) | (79) | (159) | |||||||
Foreign exchange hedging instruments (assets in LIBOR) effect | Increase in LIBOR | 2,909 | 3,008 | 3,175 | |||||||
Interest effect on debt in LIBOR | Increase in LIBOR | (44) | (109) | (218) | |||||||
Incremental expenses |
| 2,865 | 2,899 | 2,957 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| 12/31/2020 | ||||||||||
| Risk | Scenario I | Scenario II | Scenario III | |||||||
Exposure of interest rate risk |
| Base | 25% | 50% | |||||||
Interest effect on cash equivalents and financial | Increase in DI | 13,175 | 32,937 | 65,875 | |||||||
Interest effect on debt in DI | Increase in DI | (19,674) | (49,184) | (98,368) | |||||||
Interest rate hedging instruments (liabilities in DI) effect | Increase in DI | (1,137) | (11,934) | (29,929) | |||||||
Incremental expenses |
| (7,636) | (28,181) | (62,422) | |||||||
Interest effect on debt in TJLP | Increase in TJLP | (301) | (752) | (1,503) | |||||||
Incremental expenses |
| (301) | (752) | (1,503) | |||||||
Foreign exchange hedging instruments (assets in LIBOR) effect | Increase in LIBOR | 528 | 1,320 | 2,640 | |||||||
Interest effect on debt in LIBOR | Increase in LIBOR | (1,410) | (3,525) | (7,050) | |||||||
Incremental expenses |
| (882) | (2,205) | (4,410) | |||||||
Interest effect on debt in SELIC | Increase in SELIC | (41) | (102) | (203) | |||||||
Incremental expenses |
| (41) | (102) | (203) |
d. Credit risks
The financial instruments that would expose the Company and its subsidiaries to credit risks of the counterparty are basically represented by cash and bank deposits, financial investments, hedging instruments (see Note 4), and trade receivables (see Note 5).
d.1 Credit risk of financial institutions
Such risk results from the inability of financial institutions to comply with their financial obligations to the Company and its subsidiaries due to insolvency. The Company and its subsidiaries regularly conduct a credit review of the institutions with which they hold cash and cash equivalents, financial investments, and hedging instruments through various methodologies that assess liquidity, solvency, leverage, portfolio quality, etc. Cash and cash equivalents, financial investments, and hedging instruments are held only with institutions with a solid credit history, chosen for safety and soundness. The volume of cash and cash equivalents, financial investments, and hedging instruments are subject to maximum limits by each institution and, therefore, require diversification of counterparties.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
d.2 Government credit risk
The Company's policy allows investments in government securities from countries classified as investment grade AAA or aaa by specialized credit rating agencies (S&P, Moody’s and Fitch) and in Brazilian government bonds. The volume of such financial investments is subject to maximum limits by each country and, therefore, requires diversification of counterparties.
The credit risk of financial institution and government of cash, cash equivalents and financial investments is summarized below:
|
| Fair value | ||
Counterparty credit rating |
| 03/31/2021 |
| 12/31/2020 |
AAA |
| 7,749,656 |
| 8,190,428 |
AA |
| 501,777 |
| 317,894 |
A |
| 249,615 |
| 163,838 |
Total |
| 8,501,048 |
| 8,672,160 |
d.3 Customer credit risk
The credit policy establishes the analysis of the profile of each new customer, individually, regarding their financial condition. The review carried out by the subsidiaries of the Company includes the evaluation of external ratings, when available, financial statements, credit bureau information, industry information and, when necessary, bank references. Credit limits are established for each customer and reviewed periodically, in a shorter period the greater the risk, depending on the approval of the responsible area in cases of sales that exceed these limits.
In monitoring credit risk, customers are grouped according to their credit characteristics and depending on the business the grouping takes into account, for example, whether they are natural or legal clients, whether they are wholesalers, resellers or final customers, considering also the geographic area.
The expected of credit losses are calculated by the expected loss approach based on the probability of default rates. Loss rates are calculated on the basis of the average probability of a receivable amount to advance through successive stages of default until full write-off. The probability of default calculation takes into account a credit risk score for each exposure, based on data considered to be capable of foreseeing the risk of loss (external classifications, audited financial statements, cash flow projections, customer information available in the press, for example), with addition of the credit assessment based on experience.
Such credit risks are managed by each business unit through specific criteria for acceptance of customers and their credit rating and are additionally mitigated by the diversification of sales. No single customer or group accounts for more than 10% of total revenue.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The subsidiaries of the Company request guarantees related to trade receivables and other receivables in specific situations to customers, but these guarantees don’t influence in the calculation of risk of loss. The subsidiaries of the Company maintained the following allowance for expected losses on doubtful accounts balances on trade receivables:
| 03/31/2021 |
| 12/31/2020 |
Ipiranga | 447,842 |
| 447,389 |
Ultragaz | 117,329 |
| 113,621 |
Oxiteno | 17,457 |
| 16,430 |
Extrafarma | 64 |
| 73 |
Ultracargo | 1,579 |
| 1,594 |
Total | 584,271 |
| 579,107 |
The table below presents information about credit risk exposure:
| 03/31/2021 |
| 12/31/2020 | ||||||||
| Weighted average rate of losses |
| Accounting balance |
| Provision for losses |
| Weighted average rate of losses |
| Accounting balance |
| Provision for losses |
Current | 1.1% |
| 4,080,672 |
| 46,344 |
| 1.2% |
| 3,751,067 |
| 44,091 |
less than 30 days | 2.5% |
| 155,925 |
| 3,934 |
| 2.2% |
| 134,836 |
| 2,939 |
31-60 days | 6.1% |
| 48,961 |
| 2,993 |
| 8.2% |
| 43,207 |
| 3,563 |
61-90 days | 7.1% |
| 40,253 |
| 2,861 |
| 10.9% |
| 42,589 |
| 4,630 |
91-180 days | 47.7% |
| 65,458 |
| 31,250 |
| 36.8% |
| 76,158 |
| 28,062 |
more than 180 days | 55.1% |
| 902,133 |
| 496,889 |
| 55.7% |
| 890,756 |
| 495,822 |
|
|
| 5,293,402 |
| 584,271 |
|
|
| 4,938,613 |
| 579,107 |
The information about expected losses on doubtful accounts balances by geographic area are as follows:
| 03/31/2021 |
| 12/31/2020 |
Brazil | 572,710 |
| 568,461 |
Mexico | 17 |
| - |
Uruguay | 30 |
| 76 |
Other Latin American countries | 118 |
| 271 |
United States of America and Canada | 1,256 |
| 1,146 |
Europe | 10,000 |
| 9,120 |
Others | 140 |
| 33 |
| 584,271 |
| 579,107 |
For further information about the allowance for expected losses on doubtful accounts, see Notes 5.a and 5.b.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
d.4 Price risk
The Company and its subsidiaries are exposed to commodity price risk, due the fluctuation in prices for diesel and gasoline, among others. These products are traded on the stock exchange and are subjected to the impacts of macroeconomic and geopolitical factors outside the control of the Company and its subsidiaries.
To mitigate the risk of the fluctuation of diesel and gasoline prices, the Company and its subsidiaries permanently monitor the market, seeking to protection of price movements through hedge transactions for cargo purchased in the international market, used contracts of derivative for heating oil (diesel) traded on the stock exchange.
The table below shows the positions of derivative financial instruments to hedge commodity price risk at March 31, 2021:
Derivative |
| Contract |
| Notional amount (m3) |
| Notional amount (USD thousands) |
| Fair value | ||||||||||
|
| Position |
| Product |
| Maturity |
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| R$ thousands |
| R$ thousands |
Term |
| Sold |
| Heating Oil |
| abr-21 |
| 161,690 |
| 108,429 |
| 79,112 |
| 42,399 |
| 20,037 |
| (563) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 20,037 |
| (563) |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
e. Liquidity risk
The Company and its subsidiaries’ main sources of liquidity derive from (i) cash, cash equivalents, and financial investments, (ii) cash generated from operations and (iii) financing. The Company and its subsidiaries believe that these sources are sufficient to satisfy their current funding requirements, which include, but are not limited to, working capital, capital expenditures, amortization of debt, and payment of dividends.
The Company and its subsidiaries periodically examine opportunities for acquisitions and investments. They consider different types of investments, either directly, through joint ventures, or through associated companies, and finance such investments using cash generated from operations, debt financing, through capital increases, or through a combination of these methods.
On March 2021, the gross indebtedness due over the next twelve months totaled R$ 3,685,107, including estimated interests on loans (for quantitative information, see Note 16.a). Furthermore, the investments for 2021 totaled R$ 1,890,763. Until the first quarter, R$ 278,819 were realized. On March 31, 2021, the Company and its subsidiaries had R$ 7,486,677 in cash, cash equivalents, and short-term financial investments (for quantitative information, see Note 4).
The table below presents a summary of financial liabilities as of March 31, 2021 by the Company and its subsidiaries, listed by maturity. The amounts disclosed in this table are the contractual undiscounted cash outflows, and, therefore, these amounts may be different from the amounts disclosed on the balance sheet.
Financial liabilities | Total | Less than 1 year | Between 1 and 3 years | Between 3 and 5 years | More than 5 years |
Loans including future contractual interest (1) (2) | 21,966,849 | 3,685,107 | 7,031,989 | 1,872,753 | 9,377,000 |
Currency and interest rate hedging instruments (3) | 659,366 | 38,785 | 194,412 | 202,733 | 223,436 |
Trade payables | 4,526,144 | 4,526,144 | - | - | - |
Leases payable | 2,665,640 | 396,497 | 671,284 | 512,615 | 1,085,244 |
(1) To calculate the estimated interest on loans some macroeconomic assumptions were used, including averaging for the period the following: (i) DI of % 3.85% to 2021, 5.73% to 2022 and 7.10% to 2023; (ii) exchange rate of the Real against the U.S. dollar of R$ 5.38 in 2021, R$ 5.45 in 2022, R$ 5.30 in 2023, R$ 5.10 in 2024, R$ 4.90 in 2025, R$ 4.81 in 2026, R$ 4.84 in 2027, R$ 4.86 in 2028 and R$ 4.88 in 2029; (iii) TJLP of 4.61%; (iv) IGP-M of 4.79% in 2021, 4.02% in 2022, 3.25% as from 2023; (v) IPCA of 4.71% in 2021, 3.59% in 2022, 3.0% as from 2023; (vi) exchange rate of the Real against the mexican peso of R$ 0.28; (vii) exchange rate of the mexican peso against the U.S. dollar of MXN 20.60. (source: B3, Bulletin Focus and financial institutions).
(2) Includes estimated interest payments on short-term and long-term loans until the payment date.
(3) The currency and interest rate hedging instruments were estimated based on projected U.S dollar futures contracts and the futures curves of DI x Pre and DI x IPCA contracts quoted on B3 on March 31, 2021 and on the futures curve of LIBOR (ICE – Intercontinental Exchange) and commodities heating oil contracts quoted on New York Mercantile Exchange (“NYMEX”) on March 31, 2021. In the table above, only the hedging instruments with negative results at the time of settlement were considered.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
f. Capital management
The Company manages its capital structure based on indicators and benchmarks. The key performance indicators related to the capital structure management are the weighted average cost of capital, net debt / EBITDA, interest coverage, and indebtedness / equity ratios. Net debt is composed of cash, cash equivalents, and financial investments (see Note 4) and loans, including debentures (see Note 16). The Company can change its capital structure depending on the economic and financial conditions, in order to optimize its financial leverage and capital management. The Company seeks to improve its return on invested capital by implementing efficient working capital management and a selective investment program.
g. Selection and use of financial instruments
In selecting financial investments and hedging instruments, an analysis is conducted to estimate rates of return, risks involved, liquidity, calculation methodology for the carrying value and fair value, and a review is conducted of any documentation applicable to the financial instruments. The financial instruments used to manage the financial resources of the Company and its subsidiaries are intended to preserve value and liquidity.
The Policy contemplates the use of derivative financial instruments only to cover identified risks and in amounts consistent with the risk (limited to 100% of the identified risk). The risks identified in the Policy are described in the above sections and are subject to risk management. In accordance with the Policy, the Company and its subsidiaries can use forward contracts, Swaps, options, and futures contracts to manage identified risks. Leveraged derivative instruments are not permitted. Because the use of derivative financial instruments is limited to the coverage of identified risks, the Company and its subsidiaries use the term “hedging instruments” to refer to derivative financial instruments.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below summarizes the position of hedging instruments entered by the Company and its subsidiaries:
Designated as hedge accounting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Product |
| Hedged object |
| Rates agreement |
| Maturity |
| Note |
| Notional amount 1 |
| Fair value | ||||||
|
|
|
| Assets | Liabilities |
|
|
|
|
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 | |
Foreign exchange swap |
| Debt |
| USD + 4.58 % | 103.9% DI |
| sep-23 |
| 33.h.1 |
| USD 185,000 |
| USD 185,000 |
| 374,748 |
| 298,889 | |
Foreign exchange swap |
| Debt |
| USD + LIBOR-3M + 1.14% | 105.0% DI |
| jun-22 |
| 33.h.1 |
| USD 50,000 |
| USD 50,000 |
| 116,374 |
| 94,782 | |
Interest rate swap |
| Debt |
| 4.40% + IPCA | 101.4% DI |
| mar-28 |
| 33.h.1 |
| R$ 1,266,054 |
| R$ 806,054 |
| 211,626 |
| 203,837 | |
Interest rate swap |
| Debt |
| 6.47% | 99.9% DI |
| nov-24 |
| 33.h.1 |
| R$ 90,000 |
| R$ 90,000 |
| (2,378) |
| 3,498 | |
Term |
| Firm commitments |
| BRL | Heating Oil |
| abr-21 |
| 33.h.1 |
| USD 79,112 |
| USD 42,399 |
| 20,037 |
| (563) | |
NDF |
| Firm commitments |
| BRL | USD |
| abr-21 |
| 33.h.1 |
| USD 40,034 |
| USD 23,124 |
| (2,838) |
| (733) | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 717,569 |
| 599,710 |
Not designated as hedge accounting |
|
|
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Product |
| Hedged object |
| Rates agreement |
| Maturity |
| Notional amount 1 |
| Fair value | ||||||
|
|
|
| Assets | Liabilities |
|
|
| 03/31/2021 |
| 12/31/2020 |
| 03/31/2021 |
| 12/31/2020 | |
Foreign exchange swap |
| Debt |
| USD + 0.18% | 55.5% DI |
| jun-29 |
| USD 320,000 |
| USD 320,000 |
| 532,103 |
| 519,260 | |
NDF |
| Firm commitments |
| BRL | USD |
| sep-21 |
| USD 387,725 |
| USD 378,550 |
| 32,983 |
| (112,152) | |
Interest rate swap |
| Debt |
| 2.67% | 100% DI |
| may-21 |
| R$ 700,000 |
| R$ 1,300,000 |
| - |
| (5) | |
Interest rate swap |
| Debt |
| 5.25% | DI - 1.1% |
| jun-29 |
| USD 100,000 |
| - |
| (17,069) |
| - | |
|
|
|
|
|
|
|
|
|
|
|
|
| 548,017 |
| 407,103 |
(1) Currency as indicated.
All transactions mentioned above were properly registered with CETIP S.A.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
h. Hedge accounting
The Company and its subsidiaries use derivative and non-derivative financial instruments for hedging purposes and test, throughout the duration of the hedge, their effectiveness, as well as the changes in their fair value.
h.1 Fair value hedge
The Company and its subsidiaries designate as fair value hedges certain financial instruments used to offset the variations in interest and exchange rates, which are based on the market value of financing contracted in Brazilian Reais and U.S. dollars.
The foreign exchange hedging instruments designated as fair value hedge are:
In thousands, except the DI % | 03/31/2021 |
| 12/31/2020 |
Notional amount – US$ | 235,000 |
| 235,000 |
Result of hedging instruments – gain/(loss) – R$ | 113,691 |
| 574,378 |
Fair value adjustment of debt – R$ | 14,306 |
| (13,131) |
Finance expense in the statements of profit or loss – R$ | (116,686) |
| (597,735) |
Average effective cost – DI % | 104.1 |
| 104.1 |
For more information, see Note 16.c.1.
The interest rate hedging instruments designated as fair value hedge are:
In thousands, except the DI % | 03/31/2021 |
| 12/31/2020 |
Notional amount – US$ | 1,266,054 |
| 806,054 |
Result of hedging instruments – gain/(loss) – R$ | 7,789 |
| 67,446 |
Fair value adjustment of debt – R$ | 37,068 |
| (18,446) |
Finance expense in the statements of profit or loss – R$ | 1,990 |
| (99,555) |
Average effective cost – DI % | 101.4 |
| 95.8 |
For more information, see Notes 16.f.2, 16.f.4, 16.f.6, 16.f.8 and 16.f.9.
In thousands, except the DI % | 03/31/2021 |
| 12/31/2020 |
Notional amount – US$ | 90,000 |
| 90,000 |
Result of hedging instruments – gain/(loss) – R$ | (5,876) |
| 6,528 |
Fair value adjustment of debt – R$ | 6,750 |
| 3,250 |
Finance expense in the statements of profit or loss – R$ | 5,331 |
| (8,968) |
Average effective cost – DI % | 99.9 |
| 99.9 |
For more information, see Note 16.f.7.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The foreign exchange hedging instruments and commodities designated as fair value hedge are as described below. The purpose of this relationship is to transform the cost of the imported product from fixed to variable until the moment of blend the fuel, as occurs with the price practiced in its sales. The subsidiary Ipiranga realizes these operations with over-the-counter derivatives that are designated in a hedge accounting relationship, as a fair value hedge in an amount equivalent to the inventories of imported product.
In thousands, except the DI % | 03/31/2021 |
| 12/31/2020 |
Notional amount – US$ | 119,146 |
| 65,523 |
Result of hedging instruments – gain/(loss) – R$ | (40,296) |
| (87,448) |
Fair value adjustment of inventories – R$ | (30,561) |
| 18,468 |
h.2 Cash flow hedge
The Company and its subsidiaries designate, as cash flow hedge of firm commitment and highly probable transactions, derivative financial instruments to hedge firm commitments and non-derivative financial instruments to hedge highly probable future transactions, to hedge against fluctuations arising from changes in exchange rate.
On March 31, 2021, the notional amount of foreign exchange hedging instruments for highly probable future transactions designated as cash flow hedge, related to notes in the foreign market totaled US$ 447,858 (US$ 468,215 on December 31, 2020). On March 31, 2021, the unrealized loss of “Other comprehensive income” is R$ 121,506 (loss of R$ 315,403 on December 31, 2020), net of deferred IRPJ and CSLL.
h.3 Net investment hedge in foreign entities
The Company and its subsidiaries designate, as net investment hedge in foreign entities, notes in the foreign market, for hedging net investment in foreign entities, to offset changes in exchange rates.
On March 31, 2021 the balance of foreign exchange hedging instruments designated as net investments hedge in foreign entities, related to part of the investments made in entities which functional currency is other than the Brazilian Real, totaled US$ 95,000 (US$ 95,000 on December 31, 2020).On March 31, 2021, the unrealized loss of “Other comprehensive income” is R$ 31,388 (loss of R$ 73,108 on December 31, 2020), net of deferred income and social contribution taxes. The effects of exchange rate changes on investments and hedging instruments were offset in equity.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
i. Gains (losses) on hedging instruments
The following tables summarize the value of gains (losses) recognized, which affected the equity of the Company and its subsidiaries:
| 03/31/2021 | ||
| Profit or loss |
| Equity |
a – Exchange rate derivates receivable in U.S. dollars (i) and (ii) and commodities | (115,516) |
| - |
c – Interest rate swaps in R$ (iii) | 45,740 |
| - |
d – Non-derivative financial instruments (iv) | (578,734) |
| (890,365) |
Total | (648,510) |
| (890,365) |
| 03/31/2020 |
| 12/31/2020 |
| Profit or loss |
| Equity |
a – Exchange rate derivates receivable in U.S. dollars (i) and (ii) and commodities | 413,158 |
| - |
b – Exchange rate derivates payable in U.S. dollars (ii) | (238,750) |
| 80 |
c – Interest rate swaps in R$ (iii) | 13,235 |
| - |
d – Non-derivative financial instruments (iv) | (598,001) |
| (737,471) |
Total | (410,358) |
| (737,391) |
(i) Does not consider the effect of exchange rate variation of exchange Swaps receivable in U.S. dollars when this effect is offset in the gain or loss of the hedged item (debt/firm commitments).
(ii) Considers the designation effect of foreign exchange hedging.
(iii) Considers the designation effect of interest rate hedging in Brazilian Reais; and
(iv) Considers the results of notes in the foreign market (for further information see Note 16.b).
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
j. Fair value of financial instruments
The fair values and the carrying values of the financial instruments, including currency and interest rate hedging instruments, are stated below:
|
|
| 03/31/2021 |
| 12/31/2020 | ||||
| Category | Note | Carrying value |
| Fair value |
| Carrying value |
| Fair value |
Financial assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
Cash and bank | Measured at amortized cost | 4.a | 459,497 |
| 459,497 |
| 405,081 |
| 405,081 |
Financial investments in local currency | Measured at fair value through other comprehensive income | 4.a | 3,441,797 |
| 3,441,797 |
| 2,241,852 |
| 2,241,852 |
Financial investments in foreign currency | Measured at fair value through profit or loss | 4.a | 31,909 |
| 31,909 |
| 14,561 |
| 14,561 |
Financial investments: |
|
|
|
|
|
|
|
|
|
Fixed-income securities and funds in local currency | Measured at fair value through profit or loss | 4.b | 1,841,197 |
| 1,841,197 |
| 3,643,286 |
| 3,643,286 |
Fixed-income securities and funds in local currency | Measured at fair value through other comprehensive income | 4.b | 172,063 |
| 172,063 |
| 31,315 |
| 31,315 |
Fixed-income securities (guarantee of loans) | Measured at amortized cost | 4.b | 75,569 |
| 75,569 |
| 75,251 |
| 75,251 |
Fixed-income securities and funds in foreign currency | Measured at fair value through other comprehensive income | 4.b | 1,378,702 |
| 1,378,702 |
| 1,278,940 |
| 1,278,940 |
Currency and interest rate hedging and commodities instruments | Measured at fair value through profit or loss | 4.b | 1,100,314 |
| 1,100,314 |
| 981,874 |
| 981,874 |
Trade Receivables | Measured at amortized cost | 5.a | 3,763,313 |
| 3,738,483 |
| 3,391,122 |
| 3,369,766 |
Reseller Financing | Measured at amortized cost | 5.b | 945,818 |
| 942,708 |
| 968,384 |
| 965,645 |
Total |
|
| 13,210,179 |
| 13,182,239 |
| 13,031,666 |
| 13,007,571 |
Financial liabilities: |
|
|
|
|
|
|
|
|
|
Financing | Measured at fair value through profit or loss | 16.a | 1,401,214 |
| 1,401,214 |
| 1,308,928 |
| 1,308,928 |
Financing | Measured at amortized cost | 16.a | 10,174,242 |
| 10,460,530 |
| 9,406,013 |
| 10,186,947 |
Debentures | Measured at amortized cost | 16.a | 5,463,575 |
| 5,419,853 |
| 5,450,751 |
| 5,363,621 |
Debentures | Measured at fair value through profit or loss | 16.a | 1,535,515 |
| 1,535,515 |
| 1,093,365 |
| 1,093,365 |
Leases payable | Measured at amortized cost | 13 | 1,793,830 |
| 1,793,830 |
| 1,833,288 |
| 1,833,288 |
Commodities, currency and interest rate hedging instruments | Measured at fair value through profit or loss | 16.a | 31,716 |
| 31,716 |
| 117,159 |
| 117,159 |
Trade payables | Measured at amortized cost | 17 | 4,526,144 |
| 4,478,659 |
| 4,040,652 |
| 4,008,457 |
Subscription warrants – indemnification | Measured at fair value through profit or loss | 24 | 75,658 |
| 75,658 |
| 86,439 |
| 86,439 |
Total |
|
| 25,001,894 |
| 25,196,975 |
| 23,336,595 |
| 23,998,204 |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
The fair value of financial instruments, including currency and interest hedging instruments, was determined as follows:
- The fair value of cash and bank deposit balances are identical to their carrying values.
- Financial investments in investment funds are valued at the value of the fund unit as of the date of the financial statements, which corresponds to their fair value.
- Financial investments in CDBs (Bank Certificates of Deposit) and similar investments offer daily liquidity through repurchase at the “yield curve” and the Company calculates their fair value through methodologies commonly used for mark to the market.
- The fair value of trade receivables and trade payables are approximate to their carrying values and the Company calculates its fair value through methodologies commonly used in the market.
- The subscription warrants – indemnification was measured based on the share price of Ultrapar (UGPA3) at the financial statements date and are adjusted to the Company’s dividend yield, since the exercise is only possible starting in 2020 onwards and they are not entitled to dividends until then. The number of shares of subscription warrants – indemnification is also adjusted according to the changes in the amounts of provision for tax, civil, and labor risks and contingent liabilities related to the period prior to January 31, 2014 (see Note 24).
- The fair value calculation of notes in the foreign market is based on the quoted price in an active market (see Note 16.b).
The fair value of other financial investments, financing and leases payable was determined using calculation methodologies commonly used for mark-to-market reporting, which consist of calculating future cash flows associated with each instrument adopted and adjusting them to present value at the market rates as of the date of the financial statements. For some cases where there is no active market for the financial instrument, the Company and its subsidiaries can use quotes provided by the transaction counterparties.
The interpretation of market information on the choice of calculation methodologies for the fair value requires considerable judgment and estimates to obtain a value deemed appropriate to each situation. Consequently, the estimates presented do not necessary indicate the amounts that may be realizable in the current market.
Financial instruments were classified as financial assets or liabilities measured at amortized cost, except (i) all exchange rate and interest rate hedging instruments, which are measured at fair value through profit or loss, financial investments classified as measured at fair value through profit or loss and financial investments that are classified as measured at fair value through other comprehensive income (see Note 4.b), (ii) loans and financing measured at fair value through profit or loss (see Note 16.a), (iii) guarantees to customers that have vendor arrangements (see Note 16.i), which are measured at fair value through profit or loss, and (iv) subscription warrants – indemnification, which are measured at fair value through profit or loss (see Note 24). Cash, banks, trade receivables and reseller financing are classified as measured at amortized cost. Trade payables, leases payable and other payables are classified as financial liabilities measured at amortized cost.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
j.1 Fair value hierarchy of financial instruments
The financial instruments are classified in the following categories:
(a) Level 1 – prices negotiated (without adjustment) in active markets for identical assets or liabilities;
(b) Level 2 – inputs other than prices negotiated in active markets included in Level 1 and observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).
The table below shows the categories of the financial assets and financial liabilities:
| Category | Note | 03/31/2021 |
| Level 1 |
| Level 2 |
Financial assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
Cash and bank | Measured at amortized cost | 4.a | 459,497 |
| - |
| - |
Financial investments in local currency | Measured at fair value through other comprehensive income | 4.a | 3,441,797 |
| - |
| 3,441,797 |
Financial investments in foreign currency | Measured at fair value through profit or loss | 4.a | 31,909 |
| 31,909 |
| - |
Financial investments: |
|
|
|
|
|
|
|
Fixed-income securities and funds in local currency | Measured at fair value through profit or loss | 4.b | 1,841,197 |
| 1,841,197 |
| - |
Fixed-income securities and funds in local currency | Measured at fair value through other comprehensive income | 4.b | 172,063 |
| - |
| 172,063 |
Fixed-income securities (guarantee of loans) | Measured at amortized cost | 4.b | 75,569 |
| - |
| - |
Fixed-income securities and funds in foreign currency | Measured at fair value through other comprehensive income | 4.b | 1,378,702 |
| 33,044 |
| 1,345,658 |
Currency and interest rate hedging and commodities instruments | Measured at fair value through profit or loss | 4.b | 1,100,314 |
| - |
| 1,100,314 |
Trade Receivables | Measured at amortized cost | 5.a | 3,738,483 |
| - |
| - |
Reseller Financing | Measured at amortized cost | 5.b | 942,708 |
| - |
| - |
Total |
|
| 13,182,239 |
|
|
|
|
Financial liabilities: |
|
|
|
|
|
|
|
Financing | Measured at fair value through profit or loss | 16.a | 1,401,214 |
| - |
| 1,401,214 |
Financing | Measured at amortized cost | 16.a | 10,460,530 |
| - |
| - |
Debentures | Measured at amortized cost | 16.a | 5,419,853 |
| - |
| - |
Debentures | Measured at fair value through profit or loss | 16.a | 1,535,515 |
| - |
| 1,535,515 |
Leases payable | Measured at amortized cost | 13 | 1,793,830 |
| - |
| - |
Commodities, currency and interest rate hedging instruments | Measured at fair value through profit or loss | 16.a | 31,716 |
| - |
| 31,716 |
Trade payables | Measured at amortized cost | 17 | 4,478,659 |
| - |
| - |
Subscription warrants – indemnification (1) | Measured at fair value through profit or loss | 24 | 75,658 |
| - |
| 75,658 |
Total |
|
| 25,196,975 |
|
|
|
|
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
| Category | Note | 12/31/2020 |
| Level 1 |
| Level 2 |
Financial assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
|
|
Cash and bank | Measured at amortized cost | 4.a | 405,081 |
| - |
| - |
Financial investments in local currency | Measured at fair value through other comprehensive income | 4.a | 2,241,852 |
| - |
| 2,241,852 |
Financial investments in foreign currency | Measured at fair value through profit or loss | 4.a | 14,561 |
| 14,561 |
| - |
Financial investments: |
|
|
|
|
|
|
|
Fixed-income securities and funds in local currency | Measured at fair value through profit or loss | 4.b | 3,643,286 |
| 3,643,286 |
| - |
Fixed-income securities and funds in local currency | Measured at fair value through other comprehensive income | 4.b | 31,315 |
| - |
| 31,315 |
Fixed-income securities (guarantee of loans) | Measured at amortized cost | 4.b | 75,251 |
| - |
| - |
Fixed-income securities and funds in foreign currency | Measured at fair value through other comprehensive income | 4.b | 1,278,940 |
| 30,245 |
| 1,248,695 |
Currency and interest rate hedging and commodities instruments | Measured at fair value through profit or loss | 4.b | 981,874 |
| - |
| 981,874 |
Trade Receivables | Measured at amortized cost | 5.a | 3,369,766 |
| - |
| - |
Reseller Financing | Measured at amortized cost | 5.b | 965,645 |
| - |
| - |
Total |
|
| 13,007,571 |
|
|
|
|
Financial liabilities: |
|
|
|
|
|
|
|
Financing | Measured at fair value through profit or loss | 16.a | 1,308,928 |
| - |
| 1,308,928 |
Financing | Measured at amortized cost | 16.a | 10,186,947 |
| - |
| - |
Debentures | Measured at amortized cost | 16.a | 5,363,621 |
| - |
| - |
Debentures | Measured at fair value through profit or loss | 16.a | 1,093,365 |
| - |
| 1,093,365 |
Leases payable | Measured at amortized cost | 13 | 1,833,288 |
| - |
| - |
Commodities, currency and interest rate hedging instruments | Measured at fair value through profit or loss | 16.a | 117,159 |
| - |
| 117,159 |
Trade payables | Measured at amortized cost | 17 | 4,008,457 |
| - |
| - |
Subscription warrants – indemnification (1) | Measured at fair value through profit or loss | 24 | 86,439 |
| - |
| 86,439 |
Total |
|
| 23,998,204 |
|
|
|
|
(1) Refers to subscription warrants issued by the Company in the Extrafarma acquisition.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
k. Sensitivity analysis of derivative financial instruments
The Company and its subsidiaries use derivative financial instruments only to hedge against identified risks and in amounts consistent with the risk (limited to 100% of the identified risk). Thus, for purposes of sensitivity analysis of market risks associated with financial instruments, the Company analyzes the hedging instrument and the hedged item together, as shown on the charts below.
For the sensitivity analysis of foreign exchange hedging instruments as of March 31, 2021, management adopted as a base scenario the Real/U.S. dollar exchange rates at maturity of each swap, projected by U.S dollar futures contracts quoted on B3. As a reference, the exchange rate for the last maturity of foreign exchange hedging instruments is R$ 9.62 (R$ 8.23 as of December 31, 2020) in the base scenario. Scenarios II and III were estimated with a 25% and 50% additional appreciation or depreciation of the Brazilian Real against the base scenario, according to the risk to which the hedged item is exposed.
Based on the balances of the hedging instruments and hedged items as of March 31, 2021 and December 31, 2020, the exchange rates were replaced, and the changes between the new balance in Brazilian Reais and the original balance in Brazilian Reais were calculated in each of the three scenarios. The table below shows the change in the values of the main derivative instruments and their hedged items, considering the changes in the exchange rate in the different scenarios:
03/31/2021 | Risk | Scenario I Base |
| Scenario II |
| Scenario III |
Currency swaps receivable in U.S. dollars |
|
|
|
|
|
|
(1) U.S. Dollar / Real swaps | Dollar appreciation | 1,256,378 |
| 2,587,969 |
| 3,811,068 |
(2) Debts / firm commitments in dollars | (1,272,248) |
| (2,603,839) |
| (3,826,938) | |
(1)+(2) | Net effect in result | (15,870) |
| (15,870) |
| (15,870) |
Currency swaps payable in U.S. dollars |
|
|
|
|
|
|
(3) Real / U.S. Dollar swaps | Dollar devaluation | (34,861) |
| (521,462) |
| (1,008,063) |
(4) Gross margin of Oxiteno/Ipiranga | 34,861 |
| 521,462 |
| 1,008,063 | |
(3)+(4) | Net effect in result | - |
| - |
| - |
Cash Flow Hedge |
|
|
|
|
|
|
(1) Cash Flow Hedge | Dollar devaluation | 472,256 |
| 1,228,216 |
| 1,984,175 |
(2) Debts | (472,256) |
| (1,228,216) |
| (1,984,175) | |
(1)+(2) | Net effect in equity | - |
| - |
| - |
Net Investment |
|
|
|
|
|
|
(1) Net Investment Hedge | Dollar devaluation | 224,532 |
| 415,976 |
| 607,420 |
(2) Debts | (224,532) |
| (415,976) |
| (607,420) | |
(1)+(2) | Net effect in equity | - |
| - |
| - |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
12/31/2020 | Risk | Scenario I Base |
| Scenario II |
| Scenario III |
Currency swaps receivable in U.S. dollars |
|
|
|
|
|
|
(1) U.S. Dollar / Real swaps | Dollar appreciation | 1,013,826 |
| 1,522,343 |
| 2,030,860 |
(2) Debts / firm commitments in dollars | (1,013,824) |
| (1,522,330) |
| (2,030,835) | |
(1)+(2) | Net effect in result | 2 |
| 13 |
| 25 |
Currency swaps payable in U.S. dollars |
|
|
|
|
|
|
(3) Real / U.S. Dollar swaps | Dollar devaluation | 59 |
| 17,877 |
| 35,694 |
(4) Gross margin of Oxiteno | (59) |
| (17,877) |
| (35,694) | |
(3)+(4) | Net effect in result | - |
| - |
| - |
|
|
|
|
|
| |
Cash Flow Hedge |
|
|
|
|
|
|
(1) Cash Flow Hedge | Dollar devaluation | 368,439 |
| 1,042,394 |
| 1,716,350 |
(2) Debts | (368,439) |
| (1,042,394) |
| (1,716,350) | |
(1)+(2) | Net effect in equity | - |
| - |
| - |
Net Investment |
|
|
|
|
|
|
(1) Net Investment Hedge | Dollar devaluation | 170,315 |
| 336,315 |
| 502,316 |
(2) Debts | (170,315) |
| (336,315) |
| (502,316) | |
(1)+(2) | Net effect in equity | - |
| - |
| - |
For sensitivity analysis of hedging instruments for interest rates in Brazilian Reais as of March 31, 2021 and December 31, 2020, the Company used the futures curve of the DI x Pre contract quoted on B3 as of March 31, 2021 for each of the swap and debt (hedged item) maturities, to determine the base scenario. Scenarios II and III were estimated based on a 25% and 50% deterioration, respectively, of the base scenario pre-fixed interest rate.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
Based on the three scenarios of interest rates in Brazilian Reais, the Company estimated the values of its debt and hedging instruments according to the risk which is being hedged (variations in the pre-fixed interest rates in Brazilian Reais), by projecting them to future value at the contracted rates and bringing them to present value at the interest rates of the estimated scenarios. The results are shown in the table below:
03/31/2021 | Risk | Scenario I Base |
| Scenario II |
| Scenario III |
Interest rate swap (Real) – Debentures - CRA |
|
|
|
|
|
|
(1) Fixed rate swap - DI | Decrease in Pre-fixed rate | (511,521) |
| (412,731) |
| (301,180) |
(2) Fixed rate debt | 511,521 |
| 412,731 |
| 301,180 | |
(1)+(2) | Net effect in result | - |
| - |
| - |
12/31/2020 | Risk | Scenario I Base |
| Scenario II |
| Scenario III |
Interest rate swap (Real) – Debentures - CRA |
|
|
|
|
|
|
(1) Fixed rate swap - DI | Decrease in Pre-fixed rate | (39,412) |
| (230,705) |
| (187,597) |
(2) Fixed rate debt | 39,412 |
| 230,705 |
| 187,597 | |
(1)+(2) | Net effect in result | - |
| - |
| - |
For the sensitivity analysis of the commodity price swings hedging instruments on December 31, 2020 and December 31, 2019, the Company used the futures heating oil contracts quoted on NYMEX. Scenarios II and III were estimated based on 25% and 50% deterioration, respectively, of the base scenario commodity price.
Based on the balances of the hedging instruments and the objects hedged on March 31, 2021 and December 31, 2020, prices were substituted and the variations between the new balance in Reais and the balance in Reais in the report date were calculated in each of the three scenarios. The table below shows the variation of the amounts of the derivative instruments and their objects of hedge, considering the variations in commodity prices in the different scenarios:
03/31/2021 | Risk | Scenario I Base |
| Scenario II |
| Scenario III |
NDF Commodities |
|
|
|
|
|
|
(1) NDF Commodities | Decrease in Commodities Price | - |
| 1,069,726 |
| 2,139,452 |
(2) Gross margin from Ipiranga | - |
| (1,069,726) |
| (2,139,452) | |
(1)+(2) | Net effect in result | - |
| - |
| - |
12/31/2020 | Risk | Scenario I Base |
| Scenario II |
| Scenario III |
NDF Commodities |
|
|
|
|
|
|
(1) NDF Commodities | Decrease in Commodities Price | - |
| 551,794 |
| 1,103,589 |
(2) Gross margin from Ipiranga | - |
| (551,794) |
| (1,103,589) | |
(1)+(2) | Net effect in result | - |
| - |
| - |
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
34. Commitments (Consolidated)
a. Contracts
a.1 Subsidiary Tequimar has agreements with CODEBA, with the Complexo Industrial Portuário Governador Eraldo Gueiros and with the company Empresa Maranhense de Administração Portuária, in connection with its port facilities in Aratu, Suape and Itaqui, respectively. Such agreements establish a minimum cargo movement of products, as shown below:
Port | Minimum movement per year | Maturity |
Aratu | 900,000 ton. | 2022 |
Suape | 250,000 ton. | 2027 |
Suape | 400,000 ton. | 2029 |
Aratu | 397,000 ton. | 2031 |
Itaqui | 1,222,377 m³ | 2049 |
If the annual movement is less than the minimum contractual movement, the subsidiary is liable to pay the difference between the effective movement and the minimum contractual movement, based on the port tariff rates in effect on the date established for payment. As of March 31, 2021, these rates were R$ 8.37 and R$ 2.67 per ton for Aratu and Suape, respectively and R$ 0.78 per m³ for Itaqui. According to contractual conditions and tolerances, on March 31, 2021 there were not material pending issues regarding the minimum purchase limits of the contract.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
a.2 Subsidiary Oxiteno S.A. has a supply agreement with Braskem S.A. which establishes and regulates the conditions for the supply of ethylene to Oxiteno based on the international market for this product. These contracts establish a minimum commitment to according to the table below:
Plant | Minimum purchase (tons) per year | Maturity |
Camaçari | 205,000 | 2021 |
Mauá | 44,100 | 2023 |
Should the minimum purchase commitment not be met, the subsidiary would be liable for a fine based on the current ethylene price for the quantity not purchased. According to contractual conditions and tolerances, on March 31, 2021 there are no material issues regarding the minimum purchase commitment.
b. Insurance coverage
The Company is supported by insurance policies with the objective of covering several risks to which it is exposed.
In the insurance policies the maximum compensation values based on the risk analysis of certain locations.
The General Liability Insurance program covers the Company and its subsidiaries with a maximum aggregate coverage of US$ 250 million.
The Company maintains liability insurance policies for directors, executive officers and council to indemnify Ultrapar and its subsidiaries in the total amount of US$ 80 million.
Since February 2020, Ultrapar has maintained a cyber risk policy with a hedge value of up to R$ 100 million.
In addition, group life and personal accident, health and national and international transportation and other insurance policies are also maintained.
The coverage and limit of the insurance policies are based on a careful study of risks and losses conducted by independent insurance advisors. The type of insurance is considered by management to be sufficient to cover potential losses based on the nature of the business conducted by the companies.
Ultrapar Participações S.A. and Subsidiaries
Notes to the Parent’s Separate and Consolidated Interim Financial Information
(In thousands of Brazilian Reais, unless otherwise stated)
c. Area port lease
On March 22, 2019, Ultrapar, through its subsidiary IPP, won the port concessions of three areas with minimum storage capacity of 64 thousand m³ (not reviewed) located at the port of Cabedelo, in the state of Paraíba, and one area with minimum storage capacity of 66 thousand m³ (not reviewed) at the port of Vitória, in the state of Espírito Santo, which will be designated for handling, storage and distribution of fuels. These concessions were carried out by two consortiums of which IPP holds one third of the total participation. For the port of Cabedelo, the companies Nordeste Logística I, Nordeste Logística II and Nordeste Logística III were incorporated, in partnership with Raízen Combustível S.A. and Petrobrás Distribuidora S.A. For the port of Vitória, the company Navegantes was incorporated, in partnership with Raízen Combustível S.A. and Petrobrás Distribuidora S.A. The total investments regarding IPP’s stake sums up to R$160 million (not reviewed) for a concession term of 25 years.
On April 5, 2019, Company, through its subsidiary IPP and Tequimar, also won three concessions. IPP won two concessions in the port of Miramar, in Belém, state of Pará: (i) area BEL02A, through a consortium 50% owned by IPP,that shall have minimum storage capacity of 41 thousand m³, and (ii) area BEL04, which is currently operated by IPP with minimum storage capacity of 23 thousand m³. Such areas will be operated for at least 15 years, according to the auction notice. For the area BEL02A, Latitude was incorporated, together with Petróleo Sabbá S.A.. Tequimar won the concession of area VDC12 in the port of Vila do Conde, in Barcarena, state of Pará. The minimum storage capacity will be 59 thousand m³. The area will be operated by Tequimar for at least 25 years, according to the auction notice. For the area VDC12, Tequimar Vila do Conde was incorporated (see Note 3.b). The estimated investments regarding the participation of IPP and Tequimar sums up to R$ 450 million, approximately, to be disbursed throughout the next five years including the auction grants and the minimum investment required for these areas.
35. Subsequent events
a. Port concessions
On April 9, 2021, the subsidiarie Ultracargo was awarded the concession of IQI13 area in the Itaqui port, state of Maranhão, for storage and handling of liquid bulk products, specially fuels. The minimum installed capacity will be 79 thousand cubic meters. The area will be operated by Ultracargo for at least 20 years, according to the auction notice. The estimated investments regarding this port concession is approximately R$310 million, to be disbursed throughout the next six years.
São Paulo, May 5, 2021 – Ultrapar Participações S.A. (“Company”, “Ultra Group” or “Ultrapar”, B3: UGPA3 / NYSE: UGP), a company engaged in the oil & gas chain through Ipiranga, Ultragaz and Ultracargo, specialty chemicals through Oxiteno and retail pharmacy with Extrafarma, today announces its results for the first quarter of 2021.
Net revenues | Adjusted EBITDA | Net income |
R$ 24 billion | R$ 996 | R$ 137 million |
|
|
|
Investments | Cash flow from operations | Market cap |
R$ 294 | R$ 128 | R$ 24 billion |
Highlights
- Resilience of Ultrapar’s portfolio, with EBITDA growth in all businesses compared to 1Q20, despite the continuity of the pandemic and the beginning of a new wave of restrictions.
- Record recurring quarterly results for Ultracargo and Oxiteno, and record for Ultragaz for first quarters.
- Renewal of the Board of Directors, with the election of three new members, bringing complementary experiences and skills to Ultrapar’s strategy and future.
- Ultracargo’s winning bid at the IQI13 area in the port of Itaqui (MA), where it will build a terminal of liquid bulk products with a minimum installed capacity of 79 thousand m³, consolidating its position in a key port aligned with its strategy of expansion and profitability.
- Creation of the Sustainability and Corporate Affairs executive position, to accelerate and integrate Ultra Group’s efforts and initiatives into a unified agenda with broad visibility, with clearly defined ESG goals to be disclosed in 2021.
- First event of the Ultra Series – Meet Ultrapar’s Leaders, with Décio Amaral, CEO of Ultracargo, to detail business growth opportunities and initiatives for productivity gains. The series of events aims to promote more transparency and greater exposure of the strategy, the perspectives and the business executives to the capital markets.
Considerations on the financial and operational information |
The financial information presented in this document was prepared in accordance with the International Financial Reporting Standards (IFRS) norms. The financial information of Ultrapar corresponds to the Company’s consolidated information. The information on Ultragaz, Ultracargo, Oxiteno, Ipiranga and Extrafarma are presented without the elimination of intersegment transactions. Therefore, the sum of such information may not correspond to Ultrapar’s consolidated information. Additionally, the financial and operational information presented in this document 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.
The financial information presented in this document includes the adoption of the IFRS 16 norm and the segregation of certain expenses pertaining to the holding.
Information denominated EBITDA – Earnings Before Interest, Taxes on Income and Social Contribution on Net Income, Depreciation and Amortization; Adjusted EBITDA – adjusted by the amortization of contractual assets with customers – exclusive rights and by the cash flow hedge from bonds; and EBIT – Earnings Before Interest and Taxes on Income and Social Contribution on Net Income are presented in accordance to Instruction No. 527, issued by the Brazilian Securities and Exchange Commission – CVM on October 4, 2012. The calculation of EBITDA based on net income is shown below:
Quarter | ||||||
R$ million | 1Q21 | 1Q20 | 4Q21 | |||
Net income | 137.4 | 168.9 | 431.5 | |||
(+) Income and social contribution taxes | 101.0 | 137.1 | 214.7 | |||
(+) Net financial (income) expenses | 333.7 | 167.6 | (136.5) | |||
(+) Depreciation and amortization | 332.7 | 303.7 | 326.7 | |||
EBITDA | 904.8 | 777.3 | 836.4 | |||
Adjustments | ||||||
(+) Amortization of contractual assets with customers - exclusive rights (Ipiranga) | 47.8 | 82.5 | 64.6 | |||
(+) Amortization of contractual assets with customers - exclusive rights (Ultragaz) | 0.4 | 0.4 | 0.4 | |||
(+) Cash flow hedge from bonds (Oxiteno) | 43.3 | 19.6 | 47.9 | |||
Adjusted EBITDA | 996.3 | 879.8 | 949.3 | |||
Ultragaz | 150.2 | 147.0 | 154.4 | |||
Ultracargo | 92.5 | 90.5 | 77.0 | |||
Oxiteno | 226.9 | 192.6 | 261.9 | |||
Ipiranga | 563.0 | 479.9 | 487.5 | |||
Extrafarma | 11.5 | 8.9 | 34.0 | |||
Holding¹/Others | (47.9) | (39.0) | (65.4) | |||
Non-recurring items that affected EBITDA | ||||||
(-) Tax credits (Oxiteno) | - | (70.9) | (84.8) | |||
Recurring EBITDA | 996.3 | 808.9 | 864.6 | |||
Ultragaz | 150.2 | 147.0 | 154.4 | |||
Ultracargo | 92.5 | 90.5 | 77.0 | |||
Oxiteno | 226.9 | 121.6 | 177.2 | |||
Ipiranga | 563.0 | 479.9 | 487.5 | |||
Extrafarma | 11.5 | 8.9 | 34.0 | |||
Holding¹/Others | (47.9) | (39.0) | (65.4) |
¹ Mainly expenses related to governance bodies (Board of Directors, Fiscal Council, Committees), to the Presidency, Financial Department and areas linked to the Group's strategy, risk management, portfolio management and capital allocation, such as IR and M&A
Ultrapar |
Amounts in R$ million | 1Q21 | 1Q20 | 4Q20 | Δ | Δ |
1Q21 v 1Q20 | 1Q21 v 4Q20 | ||||
Net revenues | 23,950 | 21,387 | 23,216 | 12% | 3% |
Adjusted EBITDA | 996 | 880 | 949 | 13% | 5% |
Recurring EBITDA¹ | 996 | 809 | 865 | 23% | 15% |
Depreciation and amortization² | 381 | 387 | 392 | (1%) | (3%) |
Financial result³ | (377) | (187) | 89 | 101% | n/a |
Net income | 137 | 169 | 432 | (19%) | (68%) |
Earnings per share attributable to shareholders4 | 0.12 | 0.15 | 0.39 | (18%) | (69%) |
Investments5 | 294 | 350 | 485 | (16%) | (39%) |
Cash flow from operations | 128 | 932 | 508 | (86%) | (75%) |
¹ Does not include the effects of Oxiteno’s tax credits of R$ 71 million and R$ 85 million in 1Q20 and 4Q20, respectively
² Includes amortization of contractual assets with clients – exclusive rights
³ Includes the result of the cash flow hedge from bonds
4 Calculated in Reais based on the weighted average number of shares over the period, net of shares held in treasury
5 Includes R$ 29 million related to the grant of Ultracargo's terminal in Vila do Conde in 1Q21
Net revenues – Total of R$ 23,950 million (+12%), due to the increase in net revenues at Ipiranga, Oxiteno, Ultragaz and Ultracargo. In relation to 4Q20, net revenues grew by 3%, mainly reflecting sales growth at Ipiranga.
Adjusted EBITDA – Total of R$ 996 million, a growth of 13%, due to the increase in EBITDA of all businesses, with emphasis on Ipiranga and Oxiteno year on year progression. Excluding the non-recurring effect of R$ 71 million in tax credits from Oxiteno in 1Q20, EBITDA grew by 23% in 1Q21. In relation to 4Q20, there was a 5% increase, as a result of higher EBITDA at Ipiranga, Oxiteno and Ultracargo, attenuated by the reduction in EBITDA at Extrafarma and Ultragaz’s and extemporaneous tax credits recorded in 4Q20.
Results from the holding, affiliates and abastece aí – In addition to the results of the five main businesses, Ultrapar recorded a negative result of R$ 48 million, comprised of (i) R$ 31 million of negative EBITDA from the holding, (ii) R$ 11 million of negative EBITDA from abastece aí (new digital payments business), due to expenses with technology and marketing to consolidate the performance and expansion of the application and loyalty program and (iii) R$ 6 million of negative EBITDA from affiliates.
Depreciation and amortization – Total of R$ 381 million (-1%), mainly due to a reduction in amortization of contractual assets at Ipiranga, offset by higher investments made over the last twelve months. In relation to 4Q20, total costs and expenses with depreciation and amortization were 3% lower, due to a reduction in amortization of contractual assets at Ipiranga.
Financial result – Ultrapar reported net financial expenses of R$ 377 million in 1Q21, compared to net financial expenses of R$ 187 million in 1Q20, mainly reflecting the temporary worsening in the mark-to-market of currency hedging instruments, and the interest accrual on non-recurring tax credits of R$ 78 million related to the exclusion of ICMS from the calculation base of PIS/Cofins in 1Q20 and increased expenses derived from the cash flow hedge of Ultrapar’s bonds, due to the greater exchange rate devaluation. Compared to 4Q20, when Ultrapar recorded net financial revenue of R$ 89 million, the difference is mainly explained by the temporary positive result of mark-to-market of currency hedging instruments and by the interest accrual on non-recurring tax credits of R$ 160 million in 4Q20.
Net income – Total of R$ 137 million, 19% and 68% below 1Q20 and 4Q20, respectively, as a result of the increase in net financial expenses and non-recurring tax credits recorded in 1Q20 and 4Q20, partially offset by the EBITDA growth.
Cash flow from operations – Generation of R$ 128 million in 1Q21, compared to a generation of R$ 932 million in 1Q20, mainly due to the increased investment in working capital in 1Q21, especially due to the significant rise in prices of fuels and LPG in the period, compared to a reduction in working capital in 1Q20, when there was a reduction in prices of fuels.
Ultragaz |
| 1Q21 | 1Q20 | 4Q20 | Δ | Δ |
1Q21 v 1Q20 | 1Q21 v 4Q20 | ||||
Total volume (000 tons) | 406 | 421 | 426 | (4%) | (5%) |
Bottled | 274 | 288 | 289 | (5%) | (5%) |
Bulk | 132 | 134 | 137 | (1%) | (4%) |
EBITDA (R$ million) | 150 | 147 | 154 | 2% | (3%) |
Operational performance – Sales volume at Ultragaz in 1Q21 fell by 4% from 1Q20, resulting from a reduction of 5% in sales in the bottled segment, mainly due to the initial effects of the pandemic on the demand for LPG bottles in March 2020, when there was a significant temporary growth in consumption of the product. In the bulk segment, the volume was 1% lower, due to lower sales to commercial and services segments, resulting from the impacts of the pandemic, partially offset by higher sales to industries. In relation to 4Q20, sales volume fell by 5% as a result of the typical seasonality between the periods, as well as the impact from the pandemic's upsurge on sales of the bulk segment for commercial and services.
Net revenues – Total of R$ 2,038 million (+16%), due to the increase in LPG cost, mitigated by lower sales volume. In relation to 4Q20, there was an increase of 4%, for the same reasons mentioned above.
Cost of goods sold – Total of R$ 1,812 million (+19%), due to the readjustment of LPG costs by Petrobras, mitigated by lower freight costs. In relation to 4Q20, the cost of goods sold increased 6%, for the same reasons mentioned above.
Sales, general and administrative expenses – Total of R$ 147 million, a drop of 5% in relation to 1Q20, because of lower expenses with provision for doubtful accounts and freight, due to logistics optimizations, in addition to initiatives for reducing expenses in several lines. In relation to 4Q20, sales, general and administrative expenses decreased 14%, due to lower personnel expenses, mainly variable compensation, in line with the progression of results, and labor claims.
EBITDA – Total of R$ 150 million (+2%), mainly due to expenses reduction, despite the lower volume and costs increases in the period. In relation to 4Q20, there was a drop of 3%, due to the seasonally lower sales volume, partially offset by lower expenses.
Investments – R$ 71 million were invested in this quarter, mainly to install tanks in new customers in the bulk segment, the new bottling facility in Belém (PA), the acquisition and replacement of gas bottles and the maintenance of existing operations.
Ultracargo |
| 1Q21 | 1Q20 | 4Q20 | Δ | Δ |
1Q21 v 1Q20 | 1Q21 v 4Q20 | ||||
Installed capacity¹ (000 m³) | 843 | 822 | 838 | 3% | 1% |
m³ sold (000 m³) | 3,137 | 3,149 | 3,070 | 0% | 2% |
EBITDA (R$ million) | 93 | 91 | 77 | 2% | 20% |
¹Monthly average
Operational performance – Ultracargo’s average installed capacity increased 3% in relation to 1Q20, as a result of the start up of expansions in Itaqui in the last twelve months. The m³ sold remained stable, with a higher volume in Itaqui, as a result of capacity expansions, mitigated by lower fuels handling in Suape, Santos and Aratu, due to the drop in imports of these products. The m³ sold increased by 2% compared to 4Q20, due to higher fuels handling in Itaqui and ethanol in Suape, partially offset by lower fuels handling in Santos.
Net revenues – Total R$ 172 million in 1Q21 (+5%), due to contractual readjustments and spot operations. Compared to 4Q20, net revenues increased by 4%, mainly due to the growth in m³ sold.
Cost of services provided – Total of R$ 69 million, a 10% increase in relation to 1Q20, due to increased costs with leases readjustments and higher depreciation (capacity expansions). In relation to 4Q20, the cost of services provided dropped by 7%, because of lower spending on personnel and maintenance, due to lower consumption of materials, in line with the reduction in fuels handling, mitigated by increased costs with leases.
Sales, general and administrative expenses – Total of R$ 34 million (+4%), due to higher personnel expenses (mainly variable compensation, in line with the progression of results) and IT (productivity initiatives). In relation to 4Q20, sales, general and administrative expenses decreased 1%, due to lower expenses with engineering services, partially offset by higher personnel expenses.
Other operating results – Reduction of R$ 4 million in relation to 1Q20, due to the extraordinary positive effect of R$ 4 million registered in 1Q20 related to the refund of a compulsory loan to Eletrobrás.
EBITDA – Ultracargo reached a record EBITDA level of R$ 93 million (+2%), mainly due to the increase in net revenues, partially offset by higher costs and expenses and lower other operating results. In relation to 4Q20, EBITDA grew by 20%, as a result of the greater handling of products, contractual readjustments and lower costs and expenses.
Investments – Investments in the period amounted to R$ 120 million, directed to the construction of the new terminal in Vila do Conde (PA), the expansion of the Itaqui terminal and projects for efficiency gains, maintenance and operational safety of the terminals.
Oxiteno |
| 1Q21 | 1Q20 | 4Q20 | Δ | Δ |
1Q21 v 1Q20 | 1Q21 v 4Q20 | ||||
Average exchange rate (R$/US$) | 5.47 | 4.46 | 5.40 | 23% | 1% |
Total volume (000 tons) | 181 | 181 | 204 | 0% | (11%) |
Commodities | 19 | 32 | 33 | (42%) | (44%) |
Specialty chemicals/Others | 162 | 148 | 171 | 9% | (5%) |
Sales in Brazil | 127 | 128 | 154 | (1%) | (18%) |
International sales | 54 | 53 | 50 | 2% | 8% |
EBITDA (R$ million) | 227 | 193 | 262 | 18% | (13%) |
Recurring EBITDA¹ (R$ million) | 227 | 122 | 177 | 87% | 28% |
¹ Does not include the effects of tax credits of R$ 71 million and R$ 85 million in 1Q20 and 4Q20, respectively
Operational performance – Oxiteno’s total sales volume remained stable in relation to 1Q20, with a 9% growth in specialty chemicals, driven by higher sales across all segments in Brazil, with emphasis on crop solutions and home and personal care, in addition to higher sales in its international units. Oxiteno’s operation in the USA was impacted by the severe winter that hit Texas in February, and this plant remained closed for approximately 30 days. As a result, the volume growth recorded in the period was 5%. The drop of 42% noted in the volume of commodities is due to the prioritization of other products in a period of scheduled shutdowns. In relation to 4Q20, the volume dropped 11%, as a result of the typical seasonality between periods, mitigated by higher sales in international units.
Net revenues – Total of R$ 1,436 million (+30%), due to the 23% average depreciation of the Real (R$ 1.01/US$) and the 7% increase in average dollar prices, as a result of a larger share of specialty chemicals in the sales mix. Compared to 4Q20, net revenues decreased 3%, due to the lower seasonal sales volume, despite the 8% increase in average dollar prices.
Cost of goods sold – Total of R$ 1,105 million (+26%), due to the 23% average depreciation of the Real (R$ 1.01/US$), higher maintenance expenses, as a result of the scheduled shutdowns, and a larger spending at the plant in the United States, due to the weather situation in the region. In related to 4Q20, cost of goods sold decreased 7%, due to the lower sales volume and the effect of the zero cost collar in 4Q20 (ZCC – margin hedge, discontinued in 2021), mitigated by higher expenses with maintenance due to the shutdowns and higher expenses at the United States plant.
Sales, general and administrative expenses – Total of R$ 224 million (+15%), because of exchange variation on international units, the provision for disposal of waste from the Uruguay plant and higher freight expenses. In relation to 4Q20, sales, general and administrative expenses fell 2%, mainly due to lower freight expenses, in line with the volume reduction.
Other operating results – Decrease of R$ 70 million and R$ 84 million in relation to 1Q20 and 4Q20, respectively, due to the non-recurring tax credits related to the exclusion of ICMS from the PIS/Cofins calculation base recorded in 1Q20 and 4Q20.
EBITDA – Total of R$ 227 million, growth of 18% related to 1Q20, due to the better sales mix and margins, with a greater share of specialty chemicals, and average Real 23% more devalued (R$ 1.01/US$), mitigated by the tax credits recorded in 1Q20 and higher costs and expenses. Compared to 4Q20, EBITDA decreased by 13%, due to the tax credits recorded in 4Q20 and the lower sales volume, partially offset by the better sales mix, the reduction in costs and expenses and the ZCC effect. Excluding the non-recurring effects of tax credits, the increase in EBITDA was 87% and 28% in relation to 1Q20 and 4Q20, respectively, a record level of company results.
Investments – Investments in the period amounted to R$ 32 million, mainly directed to investments in maintenance and safety of production units.
Ipiranga |
| 1Q21 | 1Q20 | 4Q20 | Δ | Δ |
1Q21 v 1Q20 | 1Q21 v 4Q20 | ||||
Total volume (000 m³) | 5,367 | 5,490 | 5,815 | (2%) | (8%) |
Diesel | 2,751 | 2,722 | 2,861 | 1% | (4%) |
Otto cycle | 2,501 | 2,669 | 2,847 | (6%) | (12%) |
Others¹ | 115 | 99 | 107 | 15% | 7% |
EBITDA (R$ million) | 563 | 480 | 487 | 17% | 15% |
¹ Fuel oils, arla 32, kerosene, lubricants and greases
Operational performance – Ipiranga had a 2% reduction in sales volume compared to 1Q20, with a 6% drop in the Otto cycle, as a result of the restriction measures imposed by the pandemic, and 1% growth in diesel. In 2020, January and February were months of year-on-year growth in volumes, and the first impacts of the pandemic were felt from the second half of March. In 2021, volumes started the year impacted by the pandemic, but the effects of the new restrictions from March 2021 onwards were less severe than in the last year. Compared to 4Q20, sales volume was 8% lower, due to the drop of 12% in the Otto cycle and 4% in diesel, mainly due to the typical seasonality between the periods.
Net revenues – Total of R$ 19,845 million (+11%), due to the increase in the average prices of ethanol and oil derivatives, despite the lower sales volume, in addition to higher sales of lubricants at Iconic. In relation to 4Q20, net revenues grew by 4%, due to the higher average prices of oil derivatives and ethanol, mitigated by lower sales volume.
Cost of goods sold – Total of R$ 18,948 million (+10%), due to the increase in costs practiced by Petrobras, and in costs of ethanol, despite the lower volume sold. In relation to 4Q20, there was an increase of 3%, due to the same reasons mentioned above, mitigated by the seasonally smaller volume.
Sales, general and administrative expenses – Total of R$ 487 million (+4%), due to the increase in unit freight expenses, influenced by the increase in diesel, one-off expenses with civil contingencies and the growth in AmPm’s company operated stores, partially offset by lower provisions for doubtful accounts. In relation to 4Q20, sales, general and administrative expenses increased 3%, as a result of higher personnel expenses and reversals of provisions for doubtful accounts in 4Q20, mitigated by lower expenses with marketing and freight, due to the lower sales volume.
Other operating results – R$ 20 million negative result, a decrease of R$ 64 million in relation to 1Q20, due to CBios costs recorded in connection with the RenovaBio’s goals in the amount of R$ 33 million in 1Q21 and the establishment of extraordinary PIS/Cofins credits in the amount of R$ 39 million in 1Q20, mitigated by increased merchandising revenues from suppliers. In relation to 4Q20, the reduction was R$ 43 million, due to the lower costs with CBios and extraordinary PIS/Cofins credits recorded in 4Q20.
Disposal of property – Total of R$ 6 million, similar to 1Q20. In relation to 4Q20, the reduction was R$ 41 million, due to the higher sales of real estate assets in the previous quarter.
EBITDA – Total of R$ 563 million (+17%), mainly due to the variations in prices and costs in the period, mitigated by the reduction in other operating results. In relation to 4Q20, growth was 15%, as a result of better margins, mitigated by lower sales volume and reductions in the lines of other operating results and disposal of property.
Investments – R$ 38 million were invested, directed to the expansion and maintenance of Ipiranga’s service stations and franchise network and logistics infrastructure. Of the total invested, R$ 46 million refer to fixed assets and additions to intangible assets and R$ 36 million to contractual assets with clients (exclusive rights). These values were attenuated by R$ 43 million from the receipt of properties sold in installments at the end of 2020, net of financing releases to costumers.
Extrafarma |
| 1Q21 | 1Q20 | 4Q20 | Δ | Δ |
1Q21 v 1Q20 | 1Q21 v 4Q20 | ||||
Number of stores (end of the period) | 402 | 411 | 405 | (2%) | (1%) |
% of mature stores (+3 years) | 80% | 60% | 75% | 20.5 p.p. | 5.0 p.p. |
Gross revenues (R$ million) | 517 | 521 | 548 | (1%) | (6%) |
EBITDA (R$ million) | 12 | 9 | 34 | 30% | (66%) |
Operational performance – Extrafarma ended 1Q21 with 402 drugstores, with 2 store openings and 11 closures in the last twelve months, a reduction of 2% in its network, resulting from greater selectivity in expansion and a more rigorous approach to underperforming stores. Over the course of 1Q21, approximately 5% of stores, located in shopping malls, remained temporarily closed, due to stricter measures related to the pandemic. At the end of the quarter, stores still at the ramping-up phase (with up to three years of operation) represented 20% of the network.
Gross revenues – Total of R$ 517 million (-1%), due to the lower number of stores (-2%), the temporary closing of shopping mall stores and the effects from the cyberattack that occurred in January 2021, which impacted the systems of stores and distribution centers. The estimated impact of the incident on Extrafarma’s gross revenues loss is around 5%. These effects were partially offset by the expansion of sales through digital channels and by higher same store sales. In relation to 4Q20, gross revenues dropped by 6%, mainly due to the cyberattack and the seasonality between periods.
Cost of goods sold and gross profit – Cost of goods sold amounted to R$ 346 million (-1%), following the reduction in sales. Gross profit reached R$ 144 million (-1%), equivalent to a gross margin of 27.8%, in line with 1Q20. In relation to 4Q20, cost of goods sold decreased by 5% whereas gross profit fell by 8%, mainly due to the cyberattack and seasonality between periods.
Sales, general and administrative expenses – Total of R$ 167 million (-4%), due to the lower number of stores and productivity gains initiatives, logistic optimization and expenses reduction. In relation to 4Q20, sales, general and administrative expenses increased by 7%, mainly due to higher personnel expenses and services from third parties.
EBITDA – Total of R$ 12 million, increase of 30% in relation to 1Q20. This growth is a result of the implemented process for closing underperforming stores, greater profitability of the existing network and initiatives for enhancing productivity and expenses reduction, mitigated by the impact caused by the cyberattack and the effects of the pandemic. In relation to 4Q20, there was a reduction of 66%, mainly due to the typical seasonality between the periods and the impact caused by the cyberattack. The estimated impact of the cyberattack on Extrafarma’s EBITDA is R$ 6 million.
Investments – In 1Q21, R$ 9 million were invested, mainly directed to the maintenance of stores and projects related to information technology. It is worth mentioning that the distribution center in the state of Maranhão started operations in 1Q21, which will contribute to margin gains and logistical optimizations.
Indebtedness (R$ million) |
Ultrapar consolidated | 1Q21 | 4Q20 | 1Q20 |
Gross debt | (18,606) | (17,376) | (16,962) |
Cash and cash equivalents | 8,501 | 8,672 | 7,249 |
Net debt (ex-IFRS 16) | (10,105) | (8,704) | (9,713) |
Leases payable | (1,794) | (1,833) | (1,704) |
Net debt | (11,899) | (10,537) | (11,418) |
Net debt/LTM Adjusted EBITDA¹ (ex-IFRS 16) | 3.2x | 2.8x | 3.1x |
Net debt/LTM Adjusted EBITDA¹ | 3.3x | 3.0x | 3.3x |
Average cost of debt | 212% DI | 184% DI | 121% DI |
DI + 2.3% | DI + 1.6% | DI + 0.9% | |
Average cash yield (% DI) | 82% | 80% | 90% |
Average debt duration (years) | 4.6 | 4.6 | 4.7 |
¹ LTM Adjusted EBITDA does not include the impairment of Extrafarma of R$ 593 million for 1Q20
Ultrapar ended 1Q21 with a net financial debt of R$ 10.1 billion, comprised of gross debt of R$ 18.6 billion and cash position of R$ 8.5 billion. Considering leases payable (IFRS 16) of R$ 1.8 billion, the total net debt was R$ 11.9 billion (3.3x Adjusted EBITDA LTM) compared to R$ 10.5 billion on December 31, 2020 (3.0x Adjusted EBITDA LTM). The increase in net debt compared to the position at the end of 4Q20 refers mainly to the consumption of operating cash in working capital in 1Q21, the payment of dividends in March 2021 and the R$ 174 million effect of exchange rate variation over net debt on the portion of notes designated for hedge accounting. The increase in financial leverage is due to the increase in net debt, due to the reasons explained above, despite the increase in EBITDA LTM. The financial leverage was stable compared to 1Q20.
Maturity profile and debt breakdown:
Updates on ESG themes |
In March 2021, Ultrapar created the Sustainability and Corporate Affairs executive position, reporting directly to the CEO, to accelerate and integrate the efforts and actions of the Ultra Group’s businesses into a unified, objective and widely visible agenda, with clearly defined and disseminated goals.
In April 2021, the Company’s Annual and Extraordinary General Shareholders’ Meeting took place, in which the members of the Board of Directors were elected. The Shareholders’ Meeting was attended by more than 70% of the Company’s total capital, with all matters approved by 88% to 99% of the attendees. None of the matters had a rejection rate greater than 1%. The present slate, whose term of office is in force until 2023, brings together professionals with relevant experiences and skills in strategic issues related to the Company’s businesses and future. Among the skills and experiences assessed, we highlight specific knowledge of the Company's operating segments, experience as CEO and people management, expertise in portfolio management, corporate governance, finance, energy matrix, technology, innovation and sustainability.
Ultra Group has teamed up with 11 companies to donate more than 5 thousand oxygen concentrators for the treatment of patients with COVID-19. The equipment was sent to the Ministry of Health for distribution according to the needs of each region and should serve up to 20 thousand patients per month. Together, the 12 partner companies have invested more than R$ 35 million in this initiative. Additionally, the Ultra Group joined the Donation Campaign of AMA – Association of Residents and Friends of São Conrado, which helps communities in Rio de Janeiro to combat the pandemic. The donation was intended for the purchase of basic food baskets, which will help around 300 low-income families covered by the project. Furthermore, in this first quarter, more than R$ 5 million have already been approved to social initiatives focused on COVID-19 through partner institutions in conjunction with the Group's companies.
Ultragaz reviewed its materiality matrix incorporating new themes and expanding the scope of existing themes. In addition, it built its sustainability model, defining strategic objectives to be pursued. Ultragaz continued its social and environmental actions, being recognized with the gold award in the environment category of the LPG Innovation and Technology Award, due to its project “Collect Oil Campaign”, in force since 2014, which consists of the collection of cooking oil in homes by Ultragaz trucks for the production of biodiesel and biodegradable soap in various parts of Brazil. The Company also initiated a national action to combat COVID-19, which aims to impact 10 million people in 50 cities in 19 states, together with the startup Criatividade e Entretenimento Educação e Saúde. This action is called Educational Campaign – The Boy in the Yellow Mask, whose goal is to take preventive information about the pandemic in a playful manner, mainly for children of the communities served by Ultragaz.
In order to align its strategy with the potential to contribute as an industry leader, Ultracargo released its material themes and renewed its support for the Na Mão Certa Program. Ultracargo also started an operational training course, aimed at the community surrounding the new Vila do Conde (PA) terminal, through which residents of the Barcarena region were selected for basic training in the operation of port terminals. Additional initiatives in the eco-efficiency matter include the use of a rainwater reuse system in Vila do Conde (PA) and Itaqui (MA), with a significant reduction in the consumption of treated water, and supply of the Itaqui (MA), Suape (PE), Aratu (BA) and Santos (SP) terminals with renewable energy from solar, wind or biomass.
Oxiteno holds its position in the Platinum category of EcoVadis Sustainability Rating, the highest in the ranking, which is taken by only 1% of the evaluated companies, being the second Brazilian company to achieve this position. It also won the Seal of Ethnic-Racial Diversity in the commitment category of the city hall of Salvador. To continue the implementation of the Strategic Sustainability Plan, Oxiteno carried out the split of sustainability goals into individual goals of top leadership, the implementation of the diversity and quality of life program, and the assessment of the sustainability performance of almost 70% of its suppliers through the EcoVadis platform in less than a year.
As a partner, Ipiranga launched the Pro-Frotas Carbon Neutral initiative, which will allow fleet companies to calculate their greenhouse gas emissions, generated from the consumption of fuels, and later compensate them with the purchase of carbon credits. On the front of diversity and inclusion, Ipiranga launched its Internship Program with 50% of the vacancies reserved for black professionals, achieving a higher than expected result. In addition, Ipiranga contributed with humanitarian actions in the context of worsening pandemic, with the donation of fabric masks, gel alcohol and food vouchers to communities around Ipiranga base in Manaus, in partnership with the NGO Aldeias Infantis.
Capital markets |
Ultrapar’s combined average daily financial volume on B3 and NYSE totaled R$ 193 million/day in 1Q21 (-14%). Ultrapar’s shares ended the quarter quoted at R$ 21.21 on B3, a depreciation of 11% in the quarter, while the Ibovespa stock index fell by 2%. In NYSE, Ultrapar’s shares decreased by 16% in 1Q21, while the Dow Jones stock index appreciated 8%. Ultrapar ended 1Q21 with a market cap of R$ 24 billion.
Capital markets | 1Q21 | 1Q20 | 4Q20 |
Number of shares (000) | 1,115,077 | 1,114,919 | 1,115,006 |
Market capitalization¹ (R$ million) | 23,651 | 13,970 | 26,470 |
B3 |
|
|
|
Average daily trading volume (000 shares) | 6,859 | 9,902 | 6,940 |
Average daily financial volume (R$ 000) | 145,258 | 184,163 | 140,381 |
Average share price (R$/share) | 21.18 | 18.60 | 20.23 |
NYSE |
|
|
|
Quantity of ADRs² (000 ADRs) | 49,955 | 47,480 | 47,413 |
Average daily trading volume (000 ADRs) | 2,282 | 1,935 | 1,136 |
Average daily financial volume (US$ 000) | 8,733 | 9,031 | 4,390 |
Average share price (US$/ADRs) | 3.83 | 4.67 | 3.86 |
Total |
|
|
|
Average daily trading volume (000 shares) | 9,141 | 11,836 | 8,076 |
Average daily financial volume (R$ 000) | 193,310 | 223,771 | 163,786 |
¹ Calculated on the closing share price for the period
² 1 ADR = 1 common share
UGPA3 x Ibovespa Performance – 1Q21
(Dec 30, 2020 = 100)
1Q21 Conference Call |
Ultrapar will host a conference call for analysts and investors on May 6, 2021 to comment on the Company’s performance in the first quarter of 2021 and outlook. The presentation will be available for download in the Company’s website 30 minutes prior to the conference call.
The conference call will be transmitted via WEBCAST and held in Portuguese with simultaneous translation into English. The access link is available at ri.ultra.com.br. Please connect 10 minutes in advance.
Conference call in Portuguese with simultaneous translation into English
Time: 11:00 a.m. (BRT) / 10:00 a.m. (EDT)
Participants in Brazil: +55 (11) 3181-8565 or +55 (11) 4210-1803
Code: Ultrapar – in Portuguese
Replay: +55 (11) 3193-1012 or +55 (11) 2820-4012 (available for seven days)
Code: 3167603#
International participants: +1 (844) 204-8942 or +1 (412) 717-9627
Code: Ultrapar – in English
Replay: +55 (11) 3193-1012 or +55 (11) 2820-4012 (available for seven days)
Code: 9792937#
ULTRAPAR | ||||||
CONSOLIDATED BALANCE SHEET | ||||||
In million of Reais | MAR 21 | MAR 20 | DEC 20 | |||
ASSETS | ||||||
Cash and cash equivalents | 3,933.2 | 2,494.0 | 2,661.5 | |||
Financial investments and hedging instruments | 3,553.5 | 3,460.7 | 5,033.3 | |||
Trade receivables and reseller financing | 4,240.8 | 3,629.4 | 3,868.1 | |||
Inventories | 4,491.7 | 3,394.8 | 3,846.2 | |||
Recoverable taxes | 1,482.7 | 1,436.5 | 1,410.9 | |||
Prepaid expenses | 162.0 | 157.1 | 132.1 | |||
Contractual assets with customers - exclusive rights | 490.9 | 473.5 | 478.9 | |||
Other receivable | 61.7 | 83.3 | 58.1 | |||
Total Current Assets | 18,416.4 | 15,129.3 | 17,489.1 | |||
Financial investments and hedging instruments | 1,014.4 | 1,294.0 | 977.4 | |||
Trade receivables and reseller financing | 468.3 | 401.2 | 491.5 | |||
Deferred income and social contribution taxes | 1,061.4 | 916.1 | 974.7 | |||
Recoverable taxes | 1,730.7 | 1,085.9 | 1,736.0 | |||
Escrow deposits | 950.4 | 957.2 | 949.8 | |||
Prepaid expenses | 59.5 | 62.4 | 70.5 | |||
Contractual assets with customers - exclusive rights | 1,270.6 | 1,065.8 | 1,227.4 | |||
Other receivables | 236.4 | 197.2 | 227.5 | |||
Investments | 169.5 | 171.7 | 167.5 | |||
Right to use assets | 2,125.3 | 2,069.7 | 2,150.3 | |||
Property, plant and equipment | 8,176.1 | 7,884.7 | 8,005.9 | |||
Intangible assets | 1,792.4 | 1,780.5 | 1,782.7 | |||
Total Non-Current Assets | 19,054.8 | 17,886.5 | 18,761.1 | |||
TOTAL ASSETS | 37,471.2 | 33,015.9 | 36,250.2 | |||
LIABILITIES | ||||||
Loans, financing and hedge derivative financial instruments | 2,277.9 | 1,529.5 | 2,306.0 | |||
Debentures | 971.3 | 276.8 | 949.9 | |||
Trade payables | 4,526.1 | 2,405.3 | 4,040.7 | |||
Salaries and related charges | 384.7 | 340.1 | 468.6 | |||
Taxes payable | 440.9 | 343.1 | 455.3 | |||
Leases payable | 263.1 | 230.5 | 260.2 | |||
Other payables | 354.6 | 319.2 | 760.1 | |||
Total Current Liabilities | 9,218.6 | 5,444.5 | 9,240.8 | |||
Loans, financing and hedge derivative financial instruments | 9,329.2 | 8,771.5 | 8,526.1 | |||
Debentures | 6,027.8 | 6,384.2 | 5,594.2 | |||
Provisions for tax, civil and labor risks | 859.1 | 887.2 | 854.4 | |||
Post-employment benefits | 259.0 | 245.8 | 257.6 | |||
Leases payable | 1,530.7 | 1,473.8 | 1,573.1 | |||
Other payables | 284.1 | 307.2 | 293.7 | |||
Total Non-Current Liabilities | 18,290.0 | 18,069.7 | 17,099.1 | |||
TOTAL LIABILITIES | 27,508.6 | 23,514.2 | 26,339.9 | |||
EQUITY | ||||||
Share capital | 5,171.8 | 5,171.8 | 5,171.8 | |||
Reserves | 5,008.0 | 4,595.4 | 5,006.7 | |||
Treasury shares | (489.1) | (485.4) | (489.1) | |||
Other | (107.2) | (165.1) | (155.6) | |||
Non-controlling interests in subsidiaries | 379.2 | 385.0 | 376.5 | |||
Total equity | 9,962.6 | 9,501.7 | 9,910.3 | |||
TOTAL LIABILITIES AND EQUITY | 37,471.2 | 33,015.9 | 36,250.2 | |||
Cash and financial investments | 8,501.0 | 7,248.7 | 8,672.2 | |||
Loans and debentures | (18,606.3) | (16,962.0) | (17,376.2) | |||
Leases payable | (1,793.8) | (1,704.2) | (1,833.3) | |||
Net cash (debt) | (11,899.0) | (11,417.6) | (10,537.3) | |||
Net cash (debt) ex-IFRS 16 | (10,105.2) | (9,713.3) | (8,704.1) |
ULTRAPAR | ||||||
CONSOLIDATED INCOME STATEMENT | ||||||
In million of Reais | 1Q21 | 1Q20 | 4Q20 | |||
Net revenue from sales and services | 23,950.3 | 21,387.1 | 23,215.7 | |||
Cost of products and services sold | (22,234.4) | (19,977.2) | (21,702.7) | |||
Gross profit | 1,715.9 | 1,409.9 | 1,513.0 | |||
Operating expenses | ||||||
Selling and marketing | (658.5) | (644.9) | (677.9) | |||
General and administrative | (468.7) | (409.9) | (459.6) | |||
Other operating income, net | (12.4) | 123.9 | 107.1 | |||
Gain (loss) on disposal of property, plant and equipment and intangibles | 8.1 | 6.9 | 40.2 | |||
Operating income (loss) | 584.4 | 486.0 | 522.8 | |||
Financial result | ||||||
Financial income | 61.6 | 182.1 | 220.9 | |||
Financial expenses | (395.2) | (349.7) | (84.4) | |||
Share of profit (loss) of subsidiaries, joint ventures and associates | (12.2) | (12.4) | (13.1) | |||
Income before income and social contribution taxes | 238.4 | 306.0 | 646.2 | |||
Provision for income and social contribution taxes | ||||||
Current | (118.2) | (124.3) | (283.1) | |||
Deferred | 5.4 | (28.8) | 41.1 | |||
Benefit of tax holidays | 11.7 | 16.0 | 27.3 | |||
Net income | 137.4 | 168.9 | 431.5 | |||
Net income attributable to: | ||||||
Shareholders of the Company | 132.2 | 160.9 | 426.0 | |||
Non-controlling interests in subsidiaries | 5.3 | 8.0 | 5.5 | |||
Adjusted EBITDA | 996.3 | 879.8 | 949.3 | |||
Depreciation and amortization¹ | 380.9 | 386.6 | 391.6 | |||
Cash flow hedge bonds | 43.3 | 19.6 | 47.9 | |||
Total investments² | 293.8 | 350.1 | 484.5 | |||
RATIOS | ||||||
Earnings per share (R$) | 0.12 | 0.15 | 0.39 | |||
Net debt (ex-IFRS 16) / Stockholders' equity | 1.01 | 1.02 | 0.88 | |||
Net debt / Stockholders' equity | 1.19 | 1.20 | 1.06 | |||
Net debt / LTM Adjusted EBITDA³ (ex-IFRS16) | 3.18 | 3.12 | 2.83 | |||
Net debt / LTM Adjusted EBITDA³ | 3.31 | 3.27 | 3.03 | |||
Net interest expense / Adjusted EBITDA | 0.33 | 0.19 | na | |||
Gross margin (%) | 7.2% | 6.6% | 6.5% | |||
Operating margin (%) | 2.4% | 2.3% | 2.3% | |||
Adjusted EBITDA margin (%) | 4.2% | 4.1% | 4.1% | |||
Number of employees | 16,304 | 15,887 | 15,946 | |||
¹ Includes amortization with contractual assets with customers – exclusive rights | ||||||
² Includes property, plant and equipment and additions to intangible assets, contractual assets with customers (exclusive rights), initial direct costs of assets with right of use, financing of clients and rental advances (net of repayments) and acquisition of shareholdings ³ LTM adjusted EBITDA does not consider impairment of Extrafarma for 1Q20 | ||||||
ULTRAPAR | |||||
CONSOLIDATED CASH FLOW | |||||
In million of Reais | JAN - MAR | JAN - MAR | |||
2021 | 2020 | ||||
Cash flows from operating activities | |||||
Net income for the period | 137.4 | 168.9 | |||
Adjustments to reconcile net income to cash provided by operating activities | |||||
Share of loss (profit) of subsidiaries, joint ventures and associates | 12.2 | 12.4 | |||
Amortization of contractual assets with customers - exclusive rights | 48.2 | 82.9 | |||
Amortization of right to use assets | 87.3 | 77.9 | |||
Depreciation and amortization | 245.4 | 225.9 | |||
PIS and COFINS credits on depreciation | 4.3 | 4.5 | |||
Interest and foreign exchange rate variations | 424.8 | 505.4 | |||
Deferred income and social contribution taxes | (5.4) | 28.8 | |||
(Gain) loss on disposal of property, plant and equipment and intangibles | (8.1) | (6.9) | |||
Expected losses on doubtful accounts | 3.9 | 30.3 | |||
Provision for losses in inventories | (4.7) | (4.6) | |||
Provision for post-employment benefits | 0.0 | 5.2 | |||
Equity instrument granted | 3.6 | 2.1 | |||
Provision for decarbonization - CBIOs | 32.6 | - | |||
Provision for tax, civil, and labor risks | 3.6 | 12.0 | |||
Other provisions and adjustments | 2.8 | (3.2) | |||
988.1 | 1,141.5 | ||||
(Increase) decrease in current assets | |||||
Trade receivables and reseller financing | (372.0) | 416.5 | |||
Inventories | (640.8) | 328.6 | |||
Recoverable taxes | (71.7) | 11.1 | |||
Other receivables | (6.6) | (42.9) | |||
Prepaid expenses | (44.3) | (45.7) | |||
Increase (decrease) in current liabilities | |||||
Trade payables | 413.3 | (309.6) | |||
Salaries and related charges | (84.0) | (65.6) | |||
Taxes payable | 56.7 | (24.8) | |||
Income and social contribution taxes | 24.2 | (28.1) | |||
Post-employment benefits | 0.0 | 0.9 | |||
Other payables | (15.1) | (16.8) | |||
Deferred revenue | (2.0) | (1.5) | |||
(Increase) decrease in non-current assets | |||||
Trade receivables and reseller financing | 23.2 | 17.2 | |||
Recoverable taxes | 5.3 | (213.6) | |||
Escrow deposits | (0.6) | (35.7) | |||
Other receivables | (0.9) | 0.2 | |||
Prepaid expenses | 9.4 | 6.9 | |||
Increase (decrease) in non-current liabilities | |||||
Post-employment benefits | 1.3 | (3.3) | |||
Other payables | (2.3) | (13.8) | |||
CBIO acquisition | (20.8) | - | |||
Payments of contractual assets with customers - exclusive rights | (35.9) | (145.4) | |||
Contingency payments | (0.8) | (5.2) | |||
Income and social contribution taxes paid | (95.4) | (38.8) | |||
Net cash provided by operating activities | 128.4 | 932.0 | |||
Cash flows from investing activities | |||||
Financial investments, net of redemptions | 1,719.6 | (143.3) | |||
Acquisition of property, plant, and equipment | (247.8) | (177.4) | |||
Acquisition of intangible assets | (31.9) | (43.2) | |||
Capital increase in joint ventures | (15.0) | - | |||
Related parties | (5.0) | - | |||
Proceeds from disposal of property, plant and equipment and intangibles | 22.5 | 19.7 | |||
Net cash provided by (used in) investing activities | 1,442.4 | (344.2) | |||
Cash flows from financing activities | |||||
Loans and debentures | |||||
Proceeds | 463.0 | 240.7 | |||
Repayments | (126.5) | (89.5) | |||
Interest paid | (50.5) | (90.4) | |||
Payments of leases¹ | (122.2) | (85.7) | |||
Dividends paid | (477.4) | (260.6) | |||
Related parties | (0.1) | (0.0) | |||
Net cash provided by (used in) financing activities | (313.7) | (285.5) | |||
Effect of exchange rate changes on cash and cash equivalents in foreign currency | 14.6 | 76.4 | |||
Increase (decrease) in cash and cash equivalents | 1,271.7 | 378.6 | |||
Cash and cash equivalents at the beginning of the period | 2,661.5 | 2,115.4 | |||
Cash and cash equivalents at the end of the period | 3,933.2 | 2,494.0 | |||
Transactions without cash effect: | |||||
Addition on right to use assets and leases payable | 58.6 | 169.4 | |||
Addition on contractual assets with costumers - exclusive rights | 72.2 | 14.9 | |||
Issuance of shares related to the subscription warrants - indemnification - Extrafarma acquisition | 1.4 | 53.1 | |||
¹ Includes R$ 29 million related to the grant of Ultracargo's terminal in Vila do Conde in 1Q21 |
ULTRAGAZ | ||||||
CONSOLIDATED BALANCE SHEET | ||||||
In million of Reais | MAR 21 | MAR 20 | DEC 20 | |||
OPERATING ASSETS | ||||||
Trade receivables | 398.5 | 386.5 | 369.1 | |||
Non-current trade receivables | 32.0 | 12.6 | 30.6 | |||
Inventories | 158.4 | 109.6 | 139.0 | |||
Taxes | 87.1 | 84.4 | 102.2 | |||
Escrow deposits | 220.3 | 219.6 | 214.4 | |||
Other | 81.9 | 68.0 | 79.7 | |||
Right to use assets | 105.2 | 110.4 | 110.7 | |||
Property, plant and equipment / Intangibles | 1,084.2 | 1,001.9 | 1,082.6 | |||
TOTAL OPERATING ASSETS | 2,167.7 | 1,993.0 | 2,128.3 | |||
OPERATING LIABILITIES | ||||||
Suppliers | 101.5 | 89.0 | 103.4 | |||
Salaries and related charges | 68.7 | 65.3 | 81.5 | |||
Taxes | 16.0 | 12.1 | 24.6 | |||
Judicial provisions | 129.3 | 128.4 | 128.4 | |||
Leases payable | 144.7 | 147.6 | 150.3 | |||
Other | 68.6 | 97.3 | 79.3 | |||
TOTAL OPERATING LIABILITIES | 528.8 | 539.7 | 567.6 | |||
CONSOLIDATED INCOME STATEMENT | ||||||
In million of Reais | 1Q21 | 1Q20 | 4Q20 | |||
Net revenues | 2,037.8 | 1,761.5 | 1,968.6 | |||
Cost of products sold | (1,811.9) | (1,522.9) | (1,708.1) | |||
Gross profit | 225.9 | 238.6 | 260.5 | |||
Operating expenses | ||||||
Selling | (96.2) | (106.6) | (108.2) | |||
General and administrative | (50.5) | (47.5) | (62.7) | |||
Other operating income | 5.6 | 4.9 | 1.1 | |||
Gain (loss) on disposal of property, plant and equipment and intangibles | 2.6 | 0.9 | 2.1 | |||
Operating income (loss) | 87.4 | 90.2 | 92.9 | |||
Share of profit of subsidiaries, joint ventures and associates | 0.0 | 0.0 | (0.0) | |||
Adjusted EBITDA | 150.2 | 147.0 | 154.4 | |||
Depreciation and amortization¹ | 62.8 | 56.7 | 61.5 | |||
Ratios | ||||||
Gross margin (R$/ton) | 557 | 566 | 612 | |||
Operating margin (R$/ton) | 216 | 214 | 218 | |||
Adjusted EBITDA margin (R$/ton) | 370 | 349 | 363 | |||
Number of employees | 3,445 | 3,420 | 3,397 | |||
¹ Includes amortization with contractual assets with customers - exclusive rights |
ULTRACARGO | ||||||
CONSOLIDATED BALANCE SHEET | ||||||
In million of Reais | MAR 21 | MAR 20 | DEC 20 | |||
OPERATING ASSETS | ||||||
Trade receivables | 30.4 | 42.1 | 32.2 | |||
Inventories | 7.9 | 6.5 | 7.8 | |||
Taxes | 25.6 | 23.4 | 21.7 | |||
Other | 30.8 | 20.8 | 31.0 | |||
Right to use assets | 472.7 | 466.0 | 468.1 | |||
Property, plant and equipment / Intangibles / Investments | 1,535.9 | 1,320.1 | 1,463.5 | |||
TOTAL OPERATING ASSETS | 2,103.3 | 1,878.9 | 2,024.2 | |||
OPERATING LIABILITIES | ||||||
Suppliers | 43.5 | 29.4 | 81.3 | |||
Salaries and related charges | 34.2 | 24.2 | 39.1 | |||
Taxes | 8.9 | 10.4 | 8.1 | |||
Judicial provisions | 10.2 | 10.2 | 10.0 | |||
Leases payable | 416.7 | 422.7 | 437.5 | |||
Other¹ | 69.0 | 96.4 | 95.3 | |||
TOTAL OPERATING LIABILITIES | 582.5 | 593.4 | 671.3 | |||
¹ Includes the long term obligations with clients account | ||||||
CONSOLIDATED INCOME STATEMENT | ||||||
In million of Reais | 1Q21 | 1Q20 | 4Q20 | |||
Net revenues | 172.0 | 163.3 | 166.0 | |||
Cost of services sold | (68.8) | (62.5) | (73.8) | |||
Gross profit | 103.3 | 100.8 | 92.1 | |||
Operating expenses | ||||||
Selling | (2.0) | (1.7) | (1.8) | |||
General and administrative | (31.7) | (30.8) | (32.2) | |||
Other operating income | (0.8) | 2.9 | (2.3) | |||
Gain (loss) on disposal of property, plant and equipment and intangibles | 0.1 | (0.2) | (1.0) | |||
Operating income (loss) | 68.7 | 71.0 | 54.8 | |||
Share of profit of subsidiaries, joint ventures and associates | 0.5 | 0.1 | (0.2) | |||
EBITDA | 92.5 | 90.5 | 77.0 | |||
Depreciation and amortization | 23.3 | 19.5 | 22.3 | |||
Ratios | ||||||
Gross margin (%) | 60.0% | 61.7% | 55.5% | |||
Operating margin (%) | 40.0% | 43.4% | 33.0% | |||
EBITDA margin (%) | 53.8% | 55.4% | 46.4% | |||
Number of employees | 917 | 809 | 926 |
OXITENO | ||||||
CONSOLIDATED BALANCE SHEET | ||||||
In million of Reais | MAR 21 | MAR 20 | DEC 20 | |||
OPERATING ASSETS | ||||||
Trade receivables | 869.5 | 700.1 | 875.6 | |||
Inventories | 1,238.5 | 829.1 | 1,034.3 | |||
Taxes | 693.4 | 712.1 | 741.7 | |||
Other | 148.1 | 164.4 | 157.9 | |||
Right to use assets | 43.6 | 38.2 | 45.8 | |||
Property, plant and equipment / Intangibles / Investments | 2,979.8 | 2,948.3 | 2,881.4 | |||
TOTAL OPERATING ASSETS | 5,972.9 | 5,392.2 | 5,736.7 | |||
OPERATING LIABILITIES | ||||||
Suppliers | 984.9 | 469.9 | 714.8 | |||
Salaries and related charges | 111.9 | 110.5 | 158.4 | |||
Taxes | 50.3 | 34.8 | 49.5 | |||
Judicial provisions | 33.4 | 26.3 | 24.9 | |||
Leases payable | 48.7 | 39.8 | 48.8 | |||
Other | 56.1 | 39.6 | 42.4 | |||
TOTAL OPERATING LIABILITIES | 1,285.2 | 721.0 | 1,038.7 | |||
CONSOLIDATED INCOME STATEMENT | ||||||
In million of Reais | 1Q21 | 1Q20 | 4Q20 | |||
Net revenues | 1,436.4 | 1,107.9 | 1,476.8 | |||
Cost of products sold | ||||||
Variable | (905.9) | (729.0) | (1,009.4) | |||
Fixed | (144.8) | (102.4) | (124.7) | |||
Depreciation and amortization | (54.2) | (45.5) | (52.3) | |||
Gross profit | 331.5 | 231.0 | 290.4 | |||
Operating expenses | ||||||
Selling | (100.7) | (84.5) | (106.8) | |||
General and administrative | (122.8) | (109.7) | (120.6) | |||
Other operating income | 1.5 | 71.9 | 85.2 | |||
Gain (loss) on disposal of property, plant and equipment and intangibles | 0.3 | (0.2) | (5.0) | |||
Operating income (loss) | 109.8 | 108.5 | 143.2 | |||
Share of profit of subsidiaries, joint ventures and associates | (0.1) | 0.2 | (0.2) | |||
Adjusted EBITDA | 226.9 | 192.6 | 261.9 | |||
Depreciation and amortization | 73.9 | �� 64.2 | 71.0 | |||
Cash flow hedge from bonds | 43.3 | 19.6 | 47.9 | |||
Ratios | ||||||
Gross margin (R$/ton) | 1,834 | 1,279 | 1,424 | |||
Gross margin (US$/ton) | 335 | 287 | 264 | |||
Operating margin (R$/ton) | 607 | 601 | 702 | |||
Operating margin (US$/ton) | 111 | 135 | 130 | |||
Adjusted EBITDA margin (R$/ton) | 1,255 | 1,066 | 1,284 | |||
Adjusted EBITDA margin (US$/ton) | 229 | 239 | 238 | |||
Number of employees | 1,873 | 1,813 | 1,851 |
IPIRANGA | ||||||
CONSOLIDATED BALANCE SHEET | ||||||
In million of Reais | MAR 21 | MAR 20 | DEC 20 | |||
OPERATING ASSETS | ||||||
Trade receivables | 2,903.6 | 2,431.9 | 2,546.6 | |||
Non-current trade receivables | 436.0 | 388.3 | 460.6 | |||
Inventories | 2,580.4 | 1,910.9 | 2,144.5 | |||
Taxes | 1,495.9 | 946.2 | 1,412.8 | |||
Contractual assets with customers - exclusive rights | 1,756.2 | 1,533.3 | 1,700.6 | |||
Other | 508.3 | 539.9 | 503.8 | |||
Right to use assets | 1,090.0 | 1,002.4 | 1,106.3 | |||
Property, plant and equipment / Intangibles / Investments | 3,572.2 | 3,615.8 | 3,579.3 | |||
TOTAL OPERATING ASSETS | 14,342.6 | 12,368.8 | 13,454.7 | |||
OPERATING LIABILITIES | ||||||
Suppliers | 3,162.0 | 1,575.5 | 2,886.9 | |||
Salaries and related charges | 92.8 | 76.3 | 99.3 | |||
Post-employment benefits | 265.0 | 235.0 | 262.4 | |||
Taxes | 242.6 | 153.3 | 183.4 | |||
Judicial provisions | 301.2 | 334.0 | 309.1 | |||
Leases payable | 754.6 | 642.5 | 766.1 | |||
Other | 323.6 | 275.7 | 259.4 | |||
TOTAL OPERATING LIABILITIES | 5,141.8 | 3,292.3 | 4,766.7 | |||
CONSOLIDATED INCOME STATEMENT | ||||||
In million of Reais | 1Q21 | 1Q20 | 4Q20 | |||
Net revenues | 19,845.0 | 17,899.6 | 19,115.9 | |||
Cost of products and services sold | (18,947.8) | (17,204.6) | (18,414.3) | |||
Gross profit | 897.2 | 695.0 | 701.5 | |||
Operating expenses | ||||||
Selling | (305.4) | (307.8) | (316.0) | |||
General and administrative | (181.7) | (158.9) | (156.3) | |||
Other operating income | (19.8) | 44.1 | 23.1 | |||
Gain (loss) on disposal of property, plant and equipment and intangibles | 5.8 | 6.5 | 46.7 | |||
Operating income (loss) | 396.0 | 279.0 | 299.0 | |||
Share of profit of subsidiaries, joint ventures and associates | (6.5) | 0.4 | (1.8) | |||
Adjusted EBITDA | 563.0 | 479.9 | 487.5 | |||
Depreciation and amortization¹ | 173.4 | 200.5 | 190.2 | |||
Ratios | ||||||
Gross margin (R$/m³) | 167 | 127 | 121 | |||
Operating margin (R$/m³) | 74 | 51 | 51 | |||
Adjusted EBITDA margin (R$/m³) | 105 | 87 | 84 | |||
Adjusted EBITDA margin (%) | 2.8% | 2.7% | 2.5% | |||
Number of service stations | 7,107 | 7,106 | 7,107 | |||
Number of employees | 3,626 | 3,341 | 3,378 | |||
¹ Includes amortization with contractual assets with customers - exclusive rights |
EXTRAFARMA | ||||||
BALANCE SHEET | ||||||
In million of Reais | MAR 21 | MAR 20 | DEC 20 | |||
OPERATING ASSETS | ||||||
Trade receivables | 40.7 | 71.2 | 41.3 | |||
Inventories | 506.6 | 538.7 | 520.6 | |||
Taxes | 241.4 | 223.9 | 237.5 | |||
Other | 28.2 | 31.6 | 25.2 | |||
Right to use assets | 378.2 | 415.9 | 383.8 | |||
Property, plant and equipment / Intangibles | 476.5 | 526.5 | 488.3 | |||
TOTAL OPERATING ASSETS | 1,671.6 | 1,807.7 | 1,696.7 | |||
OPERATING LIABILITIES | ||||||
Suppliers | 184.7 | 232.2 | 237.8 | |||
Salaries and related charges | 42.4 | 42.1 | 43.2 | |||
Taxes | 19.7 | 33.6 | 18.5 | |||
Judicial provisions | 9.6 | 20.3 | 9.9 | |||
Leases payable | 390.5 | 412.9 | 392.1 | |||
Other | 17.8 | 18.1 | 19.3 | |||
TOTAL OPERATING LIABILITIES | 664.6 | 759.1 | 720.8 | |||
CONSOLIDATED INCOME STATEMENT | ||||||
In million of Reais | 1Q21 | 1Q20 | 4Q20 | |||
Gross revenues | 517.2 | 520.9 | 548.0 | |||
Sales returns, discounts and taxes | (27.4) | (27.5) | (29.0) | |||
Net revenues | 489.8 | 493.3 | 518.9 | |||
Cost of products and services sold | (345.9) | (348.5) | (363.3) | |||
Gross profit | 143.8 | 144.8 | 155.6 | |||
Operating expenses | (167.5) | (174.4) | (156.9) | |||
Other operating income | (1.5) | (0.3) | (1.1) | |||
Gain (loss) on disposal of property, plant and equipment and intangibles | (0.6) | (0.0) | (1.2) | |||
Impairment | - | - | - | |||
Operating income (loss) | (25.8) | (29.9) | (3.7) | |||
EBITDA | 11.5 | 8.9 | 34.0 | |||
Depreciation and amortization | 37.3 | 38.8 | 37.7 | |||
Ratios¹ | ||||||
Gross margin (%) | 27.8% | 27.8% | 28.4% | |||
Operating margin (%) | (5.0%) | (5.7%) | (0.7%) | |||
EBITDA margin (%) | 2.2% | 1.7% | 6.2% | |||
Number of employees | 5,948 | 6,108 | 5,921 | |||
¹ Calculated based on gross revenues |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: May 5, 2021
ULTRAPAR HOLDINGS INC.
By: /s/ Rodrigo de Almeida Pizzinatto______________________
Name: Rodrigo de Almeida Pizzinatto
Title: Chief Financial and Investor Relations Officer
(Parent and Consolidated Interim Financial Information as of and the Three-month period Ended March 31, 2021 and Report on Review of Interim Financial Information, 1Q21 Earnings Release)