Good morning.

Thank you for waiting. Welcome to the earnings release call of UltraPAR to discuss the results referring to the second quarter of 2026. The presentation will be conducted by Mr. Rodrigo Pizzinatto, CEO of UltraPAR, and by Mr. Alexandre Palhares, CFO of UltraPAR. The Q&A session will also have Mr. Leonardo Linden, CEO of Ipiranga, Mr. Tabajara Portales, CEO of Ultragaz, and Mr. Fulvius Tomelin, CEO of Ultracaga. This call is being recorded and will be accessed through the website ri.ultra.com.br. After the presentation, we are going to start the Q&A session when further instructions will be provided. We'd also like to let you know that this earnings release call will be conducted in Portuguese and there is an option for simultaneous translation available by clicking on Interpretation. For those listening to the call in English, there is also the option of muting original audio. The presentation will be shown in Portuguese and there is a version in English available for download at the company's website or through the chat. Before moving on, we would like to clarify that forward-looking statements that may be made during this call with respect to business prospects, forecasts, operational and financial goals of the company are all based on beliefs and assumptions of the company's board and on currently available information. These forward-looking statements are no guarantee of performance. They involve risks and certainties and they relate to future events and therefore depend on circumstances which may or may not occur. Investors should understand that general economic conditions, the market and other operational factors may affect the future performance of UltraPAR and lead to results which may differ materially from those expressed in these forward-looking statements. I'd like now to hand it over to Mr. Rodrigo Pizzinatto, who will start the presentation. Mr. Pizzinatto, you can start.

Good morning, everyone. It is great to be here with you for another Ultrapar Earnings Conference call. We delivered another quarter of strong operational results at Ultrapar, with significant growth in EBITDA and net income. We achieved a record operating cash flow generation of R$ 4.8 billion, driven by solid operational performance and working capital release at Ipiranga. This significant cash generation contributed to the reduction of our leverage to its lowest level since 2018. This improvement in our results enabled us to anticipate this year's dividend distribution. We approved the distribution of 1 billion and 85 million reais in dividends relating to the first half of the year, equivalent to one real per share or dividend yield of 3.8%, in addition to a share buyback program of up to 18 million shares, returning part of the value created to our shareholders. We also continue to advance our growth and productivity agenda.

At Ultracargo,

I'd like to highlight that for the first time, UltraPAR was included in the Dow Jones Best in Class Emerging Markets Index. With that, I will now hand over to Alexandre to detail the results of the businesses.

Thank you, Rodrigo, and good morning, everyone. Before discussing the performance of our businesses, I would like to briefly remind you of the criteria and standards used in the analysis in this presentation. which can be seen on slide three. Moving on to UltraPARTS consolidated results on slide four. Once again, we present results that combine operational consistency, cash generation, and capital discipline, reflecting the quality of our portfolio and the execution capabilities of our businesses. We ended the period with recurring adjusted EBITDA of R$3,657,000,000. This result reflects improved results across all businesses, and especially Ipiranga's strong results, as I will comment on shortly. Net income was the highest ever reported by Ultrapar, totaling R$1,677,000,000, an increase of R$527,000,000 or 46% compared to the second quarter of last year. This result was driven by higher operating results of the businesses, partially offset by higher depreciation, amortization and financial expenses. reflecting, among other factors, the consolidation of Hidrovias in May 2025. Capex for the quarter totalled R$ 570 million, reflecting lower investments at Ultracargo as we approach the conclusion of its expansion cycle and lower investments at Hidrovias, partially offset by higher investments at Ultragas and Ipiranga, mainly related to the implementation of new ERP. We achieved record operating cash generation of R$ 4,789,000,000 in the quarter compared to a R$ 939,000,000 cash generation in the second quarter of 2025. These results reflect strong operational results the working capital release mainly at Ipiranga and the additional contracting of 833 million reais in draft discount for suppliers, which preserves liquidity in an environment still marked by volatility in international markets. Excluding this effect, operating cash flow would have totaled 3,956,000,000 reais. Moving to slide five, We see that we ended the quarter with net debt of R$8,864,000,000 and leverage of 0.9 times, the lowest level since 2008 as Rodrigo mentioned earlier. Strong operating cash generation enabled a reduction of gross debt through the payout of debts in Hidrovias and Ipiranga. Before discussing the business figures starting with Ipiranga, I would like to provide some context regarding the environment in which we operated during the quarter, on slide 6. As we discussed during our first quarter earnings call, the conflict in the Middle East brought significant volatility to global oil products markets and required rapid adjustments across the entire supply and logistics chain. In this environment, distributors with supply capabilities, logistics scale, and a long-term commitment to serving the market became increasingly relevant. As shown in this chart on the left, Ipiranga doubled its diesel imports during the first half of the year, increasing its share of total imports in Brazil, despite lower overall imports compared with the same period last year. Brazil recorded one of the lowest pass-through fuel price increases to consumers, as we can see in the chart in the center of the slide. This reflects government efforts through subsidy mechanisms and Petrobras pricing policy. Our ability to ensure supply under these circumstances, supported by a significant increase in diesel imports, strengthened Ipiranga's competitive position and contributed to 8% volume growth in the first half of 2026, compared with market growth of 3%. Moving to slide 7, we can observe the positive effects of the government's effort to combat irregularities in the fuel distribution sector. Unlike the temporary impacts associated with the conflict in the Middle East, this represents an important structural improvement that contributes to a fairer competitive environment. The chart on the left shows the reduction in the market share of distributors classified by ACL as illegal operators. Their market share declined from 24.4% to 20% during the period. This loss of share by irregular players allowed tax-compliant distributors to regain market share. Ipiranga stood out in this context, gaining 0.9 percentage points of market share. Beyond creating a fairer competitive environment, reducing distortions and illegal practices benefits society as a whole through higher tax collection and, consequently, greater public resources. The governments of São Paulo and Rio de Janeiro alone estimate that these initiatives may generate approximately 6 billion reais in additional annual tax revenues. The chart on the right shows the average retail fuel price in Brazil during the first half of the year, which stood at 6.14 reais per liter. Taxes accounted for 1.53 reais of this amount, while Ipiranga's EBITDA margin was 36 cents per liter. It is important to note that this margin does not include financial expenses, depreciation, amortization, or income taxes. Although distributors' profitability represents only a small portion of the final pump price, it is what enables the sector to continue investing in infrastructure and ensuring fuel supply throughout the country. Moving to slide 8, we present Ipiranga's second quarter results. The total volume sold was 6,173,000 cubic meters, an 8% increase compared to the second quarter of 2025, with an increase of 10% in diesel and 6% in the auto cycle. This result reflects the positive effects resulting from the recovery of the competitive environment in the sector, in addition to the effects related to the ongoing conflict in the Middle East. We ended the quarter with a network of 5,855 service stations, 29 more than in March of this year, resulting from 101 stations opened and 72 closed in the period. Ipiranga's recurring EBITDA totaled 2,782,000,000 reais in the quarter, with a margin of 451 reais per cubic meter, reflecting the combination of structural and conjunctural factors I mentioned earlier. For the third quarter, we continue to face the effects of the conflict, although we expect a lower impact from short-term factors. On the other hand, we continue to see the structural benefits arising Driven by the continued progress in combating irregularities across the sector, as a result, we expect margins to be below the level reported in the second quarter of 2026 and closer to those observed in the first quarter of this year. Moving now to slide 9 with UltraGas results. The volume of LPG sold in the quarter was 3% lower when compared to the same period last year. The decline in the bottled segment reflects lower market demand in the LPG and competitive dynamics, while the decrease in the bulk segment is due to lower demand from the industrial segment. Even so, we presented a consistent recurring EBITDA, totaling R$ 468 million, a 6% increase compared to the same period last year, reflecting a more favorable salesmax in LPG, which offset the lower volume and the effect of R$70 million in asset write-offs in Q2 2025. For the third quarter, we will continue our efforts to recover market share. As a result, we expect EBITDA to remain at a level similar to that reported in the third quarter of 2025. Moving to slide 10, we present UltraCargo's results. Average installed capacity reached at 1,156,000 cubic meters, an 8% increase in the annual comparison, reflecting capacity additions in Palmirenti, Hondenopolis, Santos, and Opla. The cubic meters sold increased by 19% compared to 2025, mainly reflecting the ramp up of newly installed capacities, despite lower demand for fuel import storage due to the conflict in the Middle East, with import windows remaining closed since March. Net revenue totaled R$265 million, a 7% year-over-year increase reflecting higher cubic meters sold, partially offset by a less favorable sales mix, as we have a greater share of in-land basis which have higher turnover and lower average price. The adjusted EBITDA was 159 million highs, a 13% increase compared to the second quarter of last year, reflecting higher volumes handled and lower expenses, partially offset by a less favorable sales max and higher operating costs associated with increased throughput. For the third quarter, we expect market dynamics and results to be similar to those reported in the second quarter. Finally, on Site 11, we present Hydrovia's results. Total volume handled decreased by 14% compared to the second quarter of 2025, mainly due to the sale of the coastal navigation operation in November 2025. Considering only continuing operations, the volume was 5% higher. Driven by stronger cargo handling in Paraguay and Santos, which more than offset lower volumes in the integrated northern system and weaker fertilizer demand in the region. Recurring adjusted EBITDA totaled R$ 322 million, 8% below when compared to the second quarter of 2025, also reflecting the sale of coastal navigation. Considering continuing operations only, recurring adjusted EBITDA was 1% below, reflecting the higher volume handled, offset by higher operating costs and expenses. For the third quarter, we expect market and navigation conditions to remain similar to those observed last year. As a result, we expect performance to be in line with that reported in the third quarter of 2025. Thank you all for joining us today. We remain available together with our investor relations team to address any questions and continue our discussions. We will now open the call for the Q&A session.

We are going to start now our question and answer session for investors and analysts. If you have a question, please raise your hand. If your question has been answered, you can leave the queue by clicking on lower your hand. To ask a question in writing, please submit it through the Q&A icon, informing your name and company. Questions will be answered later by the Investors Relations team. Please hold while we gather the questions. First question coming from Vicente Falanga with Bradesco BBI. Please unmute your mic. Good morning, Pizzinatto, Palhares, team. Thank you very much for taking my question. The first question is, the company has been providing excellent results, very robust cash generation. I'd like to understand About shareholders compensation, you've announced some dividend sharing, but in terms of capital allocation, would you think, or have you been considering speeding up, considering M&A opportunities, or the possibility of reinvesting in your own cases because of very attractive ROIC? My second question is, Rio de Janeiro seems to be improving a lot the illegal practice, informal practice as a result of the governor's effort. There will be a number of tax solidarity and repeated debtors, a number of opportunities to transform the informal market into a formal market. How are you prepared? How well are you prepared to take the opportunity of what's going on in Rio de Janeiro? Good morning, Rodrigo speaking. Thank you very much for your questions. In terms of shareholders' compensation, we've just announced 1.100 billion in dividend to be shared plus 500 million with the sharing's buyback. This progression is going to follow the profit rates of the business. I think this is the main driver. In addition to that, we are always considering opportunities of investments in an existing business and in new businesses. And it follows the process that we have already addressed before. We look for investments in which we can have strong long-term generation potential We do not have to increase capex or to make really adjustments. We are looking for good projects that make sense. If we cannot really obtain that as fast as we are improving our operations, we increase the dividends and keep on working on sharing buyback. This is our mindset. Now, Linden, to answer about Rio de Janeiro. Good morning. Yes, it's a fact. The state of Rio de Janeiro is showing major improvements because of everything that you've mentioned and something that we've been monitoring closely. We are very active in the market. We've been branding more stations than had been before. We've been very active on spot supply if necessary. And we've been very active in closing stations that used to operate within illegal rules that we do not agree with. It is a market going through major transformations as you've said. Governor of Rio de Janeiro deserves to be recognized as being a driving force in these activities and we are paying attention to them. Great, thank you. Next question comes from Milene Carvalho with JP Morgan. Please unmute your mic. Hello. Good morning. Great results. We have very positive Results and thank you for taking my questions. I would like to talk more about Ipranga's margin. You said that we should expect margins going back to the levels of the first quarter. So I have two points to ask. In the third quarter, there are going to be subsidies. How is that going to impact margins, working capital and the competition? And looking towards the mid-term as of 2027, can we expect results close to that of the first quarter, 26, or more to what we had in 25, 200 reals per cubic meter? Thank you. Let me set the context first. The guidance has been given. Palhares was very clear about it, but setting it To understand it from now on, it's quite clear that we've been dealing with double effect impact. On the one side, we are exposed to positive impact resulting from the fight against illegal practices. On the other hand, we have been impacted negatively by the Middle East conflict which impact the international supply. We can see a very competitive environment, but it's fair because everyone is investing and paying taxes. The recovery we can see in the business in terms of volume and margin It's a result of volumes and sales that had been lost to illegal market. And it's an effect that it's here to stay now. But because there is this double effect, we cannot account for what is exactly the turning point or the stability point. But there is a positive effect on volumes and margins which are here to stay and will be Fulvius Tomelin Fulvius Tomelin Because of this fight against illegal practices, of course. This is better to everyone. The next question comes from Monique Greco with Itaú BBA. Please unmute your mic. Ms. Greco cannot hear you. Now you can hear me. Wonderful. Yes. Thank you. Good morning, everyone. Great results. Thank you for the opportunity to ask a question. I'm going to build up on what Pizzinatto said about capital allocation. It's quite clear about your search for additional investments and observing the levels of profit. Now, what is the level of leverage would be considered optimal to you during this capital allocation journey? My second question is, considering the third quarter of Ipranga and Palhares was very clear about margins, But I would like to talk about working capital. There was a relevant swing in this demand in the first quarters of the year. So I would like to know what you anticipate for working capital in the third quarter. Thank you. Good morning, Monique. Thank you for your questions. Concerning leverage, I think you have made reference to an important topic and Linden talked about that and Ibranga's results. We have the results of the first half of the year, results impacted by two effects that are going to be maintained in the half year. We have to bear it in mind when we talk about leverage. What we've been observing is leverage of 1 to 1.5 times EBITDA. This is our level of comfort, especially during volatile situations and with high interest rates. If it gets outside these expected margins, we will maybe buy back or and the following are the main participants of this webinar. It reduces the need of making working capital investments because the payment terms are longer. As there is a reduction in the imports mix, there is going to be additional investments in working capital. Second level is the price ranges. As prices have been fluctuating significantly, It's about 3 billion Brazilian Rios between inventory, accounts payable and accounts receivable. Every 10% variation in price, it means 300 million of Brazilian Rios in working capital. So it serves as some sort of reference for you to understand our working capital dynamics. Thank you. The next question comes from Leonardo Marcondes with Bank of America. Please unmute your mic. Mr. Marcondes, please unmute your mic. I guess you can hear me now, right? Yes, please go on.

Good morning.

Thank you for taking my questions. The first question about Ipranga is the following. How do you see the opportunities of branded stations in the current market? And if you can make reference also to what had been asked about capital allocation, could we expect some additional branding operations from now on? And about UltraGas, I would also like to ask about that. We've observed a significant reduction year over year and a reduction of market share as well. And please correct me if I'm wrong, Could you please tell us more about competition in this industry? Thank you all very much. Hi, Leonardo. Because of everything that's going on in the market, there has been more requests of branding the new stations Because Ipranga is a supplier of high quality, well known, it has a strong brand. So, yes, we have had more requests of branding new stations or having wide flat conversion, but always maintaining our investments discipline in terms of capital and quality. We do not expect major capital variations. We hope to keep on making investments at assets of quality according to the criteria that we've defined and been used for a while. Leonardo Tabajara speaking here. Answering your question about market share, you are right. And I could focus on bottle because The corporate B2B is just related to economic variation. In bottled products, our main driver is how healthy our resellers are. We are in a process of expanding our resellers just in the organized retail market. And we've lost some space. Because we operate outside our target segment and in upcoming months, we are very much focused on maintaining this level of operation to all our resellers, supporting our programs, our initiatives to move on towards obtaining more and more customers. We are working very hard here. We believe we can improve the number and the quality of our resellers which ultimately interact with the high value market. This is what we've been observing and probably it's going to be sustained in upcoming months. That's great. Thank you very much. Our question and answer session is closed now. I would like now to hand it over to Alexandre Palhares for his closing remarks. Well, thank you all very much for your participation. Unfortunately, we couldn't have all questions answered, but our investor relations team is here to support you. Thank you all very much. See you next time.