Filer: Ultrapar Participações S.A.
Issuer: Ultrapar Participações S.A.
Subject of the offer: Refinaria de Petróleo Ipiranga S.A.,
Distribuidora de Produtos de Petróleo Ipiranga S.A. and
Companhia Brasileira de Petróleo Ipiranga S.A.
Commission File Number: 001-14950
 
 
o Paulo, August 8, 2007 - Ultrapar Participações S.A. (BOVESPA: UGPA4 / NYSE: UGP), a company engaged in fuel distribution (Ultragaz/Ipiranga), the production of chemicals (Oxiteno), as well as integrated solutions for special bulk cargo (Ultracargo), hereby reports its results for the second quarter of 2007.
 

Investor Relations
   
E-mail: invest@ultra.com.br
   
Telephone: 55 11 3177-7014
   
Website: www.ultra.com.br
We started to consolidate Ipirangas fuel distribution businesses
 
into our financial statements in this second quarter, setting a new
Results Conference Calls
level of results for Ultrapar. Consolidated EBITDA amounted to R$
 
225 million in 2Q07, up 66% compared to 2Q06.
Local Conference Call
   
Date: August 10, 2007
   
10 a.m. (US EST)
   
Telephone: 55 11 2101-4848
   
Code: Ultrapar
VOLUME AT ULTRAGAZ INCREASED BY 2% AND 9% COMPARED TO
   
2Q06 AND 1Q07, RESPECTIVELY
International Conference Call
   
Date: August 10, 2007
 
VOLUME AT IPIRANGA INCREASED BY 4% AND 7% COMPARED TO
12 p.m. (US EST)
 
2Q06 AND 1Q07, RESPECTIVELY
Participants in Brazil: 0-800-891-3951
   
Participants in the US: 1-800-418-6854
   
International participants: 1 (973) 935-8893
 
THE VOLUME OF SPECIALTY CHEMICALS AT OXITENO ROSE BY
Code: Ultrapar or 8982716
 
16% AND 14%, COMPARED TO 2Q06 AND 1Q07, RESPECTIVELY
     
     
 
AVERAGE VOLUME STORED IN M³ AT ULTRACARGO INCREASED BY 17% AND 5%, COMPARED TO 2Q06 AND 1Q07, RESPECTIVELY
Ultrapar Participações S.A.
UGPA4 = R$ 64.39/share
UGP = US$ 33.20/ ADR
(06/30/07)
   
 
We invested in the acquisition of Ipirangas fuel distribution businesses in the South and Southeast regions of Brazil, believing in the potential to grow above of historical levels. It is a pleasure to report the confirmation of this growth potential in our first earnings release including Ipiranga in the consolidated numbers, contributing to value generation prospects for the businesses acquired. We continue to dedicate ourselves to expansion projects in all of the companys businesses, seeking new growth opportunities. 
     
   
Pedro Wongtschowski  CEO


 
 
 
- 1 - 
 


 
 
Summary of the Second Quarter 2007
 

Profit and Loss Data
 
2Q07
   
2Q06
   
1Q07
   
Δ (%)
   
Δ (%)
   
1H07
   
1H06
   
Δ (%)
 
Ultrapar Consolidated
                   
2Q07 vs.2Q06
   
2Q07 vs.1Q07
   
 
          1H07vs.1H06   
                                     
Net Sales and Services
   
6,181
     
1,197
     
1,174
      416 %     426 %    
7,355
     
2,295
      220 %
Gross Profit
   
477
     
237
     
223
      101 %     114 %    
700
     
436
      61 %
Operating Profit
   
145
     
90
     
67
      61 %     115 %    
212
     
149
      42 %
EBITDA
   
225
     
136
     
115
      66 %     96 %    
340
     
243
      40 %
Net Earnings
   
37
     
88
     
37
      (58 %)     1 %    
75
     
145
      (49 %)
Earnings per share*
   
0.46
     
1.08
     
0.46
      (58 %)     1 %    
0.92
     
1.78
      (49 %)
Amounts in R$ million (except EPS)
                                                               
* Based on the weighted average of the number of shares during the period
                     

Operational Data Ultragaz  
2Q07
   
2Q06
   
1Q07
   
Δ (%)
2Q07vs.2Q06
   
Δ(%)
2Q07 vs.1Q07
   
1H07
   
1H06
   
Δ (%)
1H07vs.1H06
 
Total Volume ('000 tons)
   
402
     
393
     
368
      2 %     9 %    
770
     
748
      3 %
Bottled
   
269
     
271
     
247
      (1 %)     9 %    
516
     
511
      1 %
Bulk
   
133
     
122
     
121
      9 %     10 %    
254
     
237
      7 %

Operational Data Ipiranga
 
2Q07
   
2Q06
Pro-forma
   
1Q07
Pro-forma
   
Δ (%)
2Q07 vs.2Q06
   
Δ (%)
2Q07 vs.1Q07
   
1H07
Pro-forma
   
1H06
Pro-forma
   
D (%)
1H07vs.1H06
 
Total Volume ('000 m³)
   
2,753
     
2,648
     
2,575
      4 %     7 %    
5,328
     
5,122
      4 %
Diesel
   
1,665
     
1,640
     
1,518
      2 %     10 %    
3,183
     
3,127
      2 %
Gasoline
   
749
     
757
     
736
      (1 %)     2 %    
1,486
     
1,494
      (1 %)
Ethanol
   
194
     
110
     
185
      76 %     5 %    
379
     
229
      65 %
NGV
   
66
     
55
     
63
      20 %     5 %    
129
     
105
      23 %
Fuel oils and kerosene
   
44
     
54
     
41
      (18 %)     7 %    
85
     
109
      (22 %)
Lubricants and greases
   
34
     
32
     
31
      7 %     9 %    
66
     
58
      (13 %)

Operational Data Oxiteno
 
2Q07
   
2Q06
   
1Q07
   
Δ (%)
2Q07 vs.2Q06
   
Δ (%)
2Q07 vs.1Q07
   
1H07
   
1H06
   
Δ (%)
1H07vs.1H06
 
Total volume ('000 tons)
   
147
     
134
     
144
      9 %     2 %    
291
     
263
      11 %
Sales in Brazil
   
112
     
94
     
112
      18 %     0 %    
223
     
181
      24 %
Sales outside Brazil
   
35
     
40
     
32
      (11 %)     11 %    
67
     
82
      (18 %)

Operational Data Ultracargo
 
2Q07
   
2Q06
   
1Q07
   
Δ (%)
2Q07 vs.2Q06
   
Δ (%)
2Q07 vs.1Q07
   
1H07
   
1H06
   
Δ (%)
1H07vs.1H06
 
Effective storage ('000 m3 )1
   
276
     
235
     
263
      17 %     5 %    
269
     
230
      17 %
Total kilometrage (million)
   
8.5
     
11.4
     
8.9
      (25 %)     (4 %)    
17.4
     
24.1
      (28 %)
1 Monthly average
                                                               

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Macroeconomic indicators
                   
Δ (%)
   
Δ (%)
               
Δ (%)
 
   
2Q07
   
2Q06
   
1Q07
   
2Q07 vs.2Q06
   
2Q07 vs.1Q07
   
1H07
   
1H06
   
1H07vs.1H06
 
Exchange-rate average (R$/US$)
   
1.982
     
2.185
     
2.108
      (9 %)     (6 %)    
2.045
     
2.191
      (7 %)
Brazilian basic interest rate (CDI)
    2.9 %     3.6 %     3.0 %     (19 %)     (4 %)     6.0 %     7.8 %     (23 %)
Inflation in the period (IPCA)
    0.8 %     0.1 %     1.3 %     716 %     (35 %)     2.1 %     1.5 %     35 %

Highlights
 
  
Ipiranga.Last April we acquired the controlling stake of certain companies of the Ipiranga Group, becoming owners of (i) the fuel and lubricant distribution businesses in the South and Southeast of Brazil, together with related activities, (ii) EMCA Empresa Carioca de Produtos Químicos, a producer of white mineral oils and special fluids, and (iii) a stake in the refinery operations. Ultrapar's figures in 2Q07 already consolidate the results from the acquired businesses. The references to Ipiranga correspond to the fuel and lubricant distribution businesses acquired in the South and Southeast and related activities, as well as EMCA. Except where otherwise mentioned, the figures for Ultrapar referring to periods prior to 2Q07 do not include the acquired operations. Unaudited figures have been prepared relating Ipiranga for periods prior to 2Q07 (Pro-forma Ipiranga), with the sole purpose of providing a comparison base to facilitate the analysis of the company's performance. With the same purpose, when indicated, certain Ultrapar figures referring to quarters prior to 2Q07 include the operations acquired (Pro-forma Ultrapar).
 
 
Ipiranga Group acquisition transaction is composed of four stages. The first stage was completed on April 18 with the change of control. We are currently on the second stage of the transaction, complying with the legal procedures to obtain the register for the mandatory tag along tender offers of Refinaria de Petróleo Ipiranga S.A. (RPI), Distribuidora de Produtos de Petróleo Ipiranga S.A. (DPPI) and Companhia Brasileira de Petróleo Ipiranga S.A. (CBPI). We estimate that this stage will be completed in September 2007, and that the whole transaction will be completed during 4Q07.
 
  
Share Buyback On August 8, the Board of Directors of Ultrapar approved the renewal of a program to buy back shares issued by the company, continuing the program begun on August 2, 2006, once the buyback of Ultrapar shares is an attractive investment option for the company's available cash. The program allows for the buyback of up to 10% of the preferred shares outstanding and remains in force for one year with the possibility of renewal.
 
  
Certification under section 404 of the Sarbanes-Oxley ActUltrapar is pleased to announce that it has obtained the certification under section 404 of the Sarbanes-Oxley Act, attesting to the efficiency of the company's internal controls over financial disclosure. The document is available in the 2006 annual report Form 20-F, filed with the SEC (Securities and Exchange Commission) as well as with the CVM (the Brazilian securities and exchange commission) and is also available on the company's website - www.ultra.com.br, on the investor relations page. The obtaining of SOX certification reinforces Ultrapar's commitment to quality in the process, risks and control management, as well as the high standards of transparency adopted in the company's financial statements.
 
  
Oxiteno Mexico, S.A. de C.V. Since July Canamex has been operating with a new name. Formerly named Canamex Químicos, S.A. de C.V., Oxitenos subsidiary in Mexico has now a new name: Oxiteno Mexico, S.A. de C.V.. The good performance of the Mexican operations, which presented a 49% year-over-year growth in the volume sold in 2006, has proven the importance of the Oxiteno brand and its global reach. This change represents another step in the strengthening of the companys internationalization process.

Ultrapar in the Macroeconomic Scenario
 
During the second quarter of 2007 we saw the continuity of an increasing economic activity trend, as reflected by indicators such as industrial employment, which showed an increase of 1.5% in the first five months of the year, compared to a stable situation in 2006. The Institute of Applied Economic Research (IPEA) estimates that Brazilian GDP has grown by 5.5% in the second quarter of the year, compared to the second quarter 2006. In addition, the

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retail sales indicator published by Serasa recorded a 9.6% growth in the first half of 2007, compared to the same period in 2006. Specialist retail, which includes vehicles and electro-electronic goods and textiles, led this growth, rising by 11.9%, driven basically by the increased availability of credit and a rise in the employment levels and the Brazilian population income.
 

This scenario has had a positive influence on Brazil's LPG market, which grew by 2% in 2Q07, compared to 2Q06. Sales volume at Ultragaz amounted to 402,000 tons in the period, up 2% on 2Q06, in line with the growth in the market. EBITDA at Ultragaz amounted to R$ 78 million in 2Q07, in line with the EBITDA reported in 2Q06.

The greater availability of credit and the improvement in the Brazilian population income resulted in record levels of vehicle sales in the first half of this year, amounting to 1.082 million vehicles registered, including cars, trucks and buses. This is a 25.7% increase compared to the first half of 2006, according to figures published by the National Vehicle Registry (Renavam). This growth has been having a positive influence on demand for fuels. Additionally, amendments to the legislation, as well as more rigorous inspection and procedure enforcement measures implemented in the sector, have contributed to improving the level of efficiency in the fuel distribution market, particularly in ethanol sales. EBITDA at Ipiranga amounted to R$ 105 million in 2Q07, 31% higher than in 2Q06, as a consequence of increased volume, as well as improvements implemented in the sector.

At Oxiteno, the improved performance of the economy, commercial initiatives, the development of new products and the greater availability of ethylene resulted in a 9% increase in volume compared to 2Q06, with an enhanced sales mix due to an increased percentage of specialty chemicalsand sales to the domestic market. Despite the volume growth, the effect of the 9% appreciation in the Brazilian Real on revenues and the increase in the cost of raw materials, especially ethylene, had a negative impact on EBITDA at Oxiteno, which amounted to R$ 28 million in 2Q07, down 40% compared to 2Q06. During 2Q07, Oxiteno continued to focus on its projects to expand the specialty chemicals production capacity, which will allow a significant increase in volumes from 2008, with higher added value products and scale gains.

At Ultracargo, the improved performance at the Santos Terminal and the expansion of the Suape Terminal contributed to an increase of 13% in EBITDA, compared to 2Q06, which amounted to R$ 12 million in 2Q07.

As a result, Ultrapar's consolidated EBITDA totaled R$ 225 million in 2Q07, up 66% compared to 2Q06, basically as a consequence of Ipiranga acquisition.

 

Operational Performance
 
Ultragaz  The Brazilian LPG market expanded by 2% in 2Q07, compared to 2Q06, basically reflecting an improvement in the performance of the economy, as well as an increase in the Brazilian population income. In the same period, the volume sold by Ultragaz totaled 402,000 tons, up 2% on the volume sold in 2Q06, in line with the growth in the market. The bulk segment grew by 9% (11,000 tons), as a consequence of higher consumption of large

- 4 - 




 
customers. In the bottled segment, the volume sold decreased by 1% (2,000 tons), as a result of increased sales in 2Q06 due to uncertainties related to the supply of natural gas from Bolivia in that quarter. Compared to 1Q07, Ultragaz's sales volume was 9% higher, due to the seasonal increase in sales volumes seen between the two periods. In the first half of the year Ultragaz's total sales volume amounted to 770,000 tons, up 3% on 1H06.
 

 

Ipiranga – The expansion in the vehicles market and the improvements made to legislation and inspection implemented in the sector, for example ANP resolution Nº 07, the implementation of CODIF/Passe Fiscal and the addition of colorant to anhydrous ethanol, had a positive influence on Ipiranga's sales volume, which amounted to 2,753,000 cubic meters in 2Q07. This volume represented a 4% increase compared to 2Q06, seeing that (i) the volume of gasoline, ethanol and natural gas for vehicles (NGV) increased by 9.5% (87,000 cubic meters), influenced by expansion in Brazil's vehicle fleet - particularly flex-fuel vehicles, improvements made in the sector and investment made in the gas stations for NGV distribution, and (ii) diesel volume increased by 1.5% (25,000 cubic meters), as a consequence of increased economic activity, with expansions seen in the fuel resale segment, and increased consumption on the part of major end consumer clients. Compared to 1Q07 there was an increase of 7% in Ipiranga's sales volume, particularly in diesel sales volume, as a result of seasonal variation between the two periods, largely as a function of the agricultural harvest, as well as better positioning on the part of Ipiranga to capture this volume.

 

- 5 -




 
Oxiteno - Total sales volume at Oxiteno in 2Q07 amounted to 147,000 tons, up 9% on 2Q06, with an 18% growth in the volume sold in the domestic market, resulting in better geographical and product sales mix. Growth in the domestic market occurred mainly in the cosmetics & detergents, agrochemicals, polyester and paint & varnishes segments. In the export market, sales decreased by 11% compared to 2Q06, as a consequence of a lower availability of products due to increased volume in the local market. Sales volume at Oxiteno Mexico increased by 24% in this quarter, amounting to 8,700 tons. Compared to 1Q07, Oxiteno showed a 2% increase in total volume sold, due to higher sales of specialty chemicals (+14%), in detriment to the sale of glycols. In the first half of the year, Oxiteno's sales volume amounted to 291,000 tons, up 11% on 1H06.
 

 

Ultracargo – In 2Q07, average storage volumes at Ultracargo, measured in cubic meters, were 17% higher than in 2Q06, basically due to an increase in operations at the Santos Terminal and the Suape Terminal, whose expansion was completed in 4Q06. Compared to 1Q07, this represented a 5% increase, the result of the higher utilization rate at the Santos and Aratu terminals. Total kilometrage traveled was down 25% and 4% compared to 2Q06 and 1Q07, respectively, basically as a consequence of Ultracargo's decision to concentrate its operations on the providing of differentiated services. In the first half of the year, Ultracargo's average storage volume, as measured in cubic meters, showed an increase of 17% while kilometrage traveled dropped by 28%.
 
 

- 6 -




 
Economic-Financial Performance
 
Net Sales and Services Ultrapar's consolidated net sales and services in 2Q07 amounted to R$ 6,181 million, 416% and 426% up on the net sales in 2Q06 and 1Q07, respectively, as a result of the acquisition of Ipiranga. Taking Ultrapar Pro-forma figures in 2Q06 and 1Q07, net revenues would have increased by 3% and 8%, respectively, basically driven by the increase in Ultragaz and Ipiranga net sales and services. In 1H07, Ultrapar's net sales and services amounted to R$ 7,355 million, up 220% on 1H06.

 

Ultragaz  Net sales and services at Ultragaz amounted to R$ 798 million in 2Q07, up 2% compared to 2Q06, in line with the expansion of 2% in volume sold. Compared to 1Q07, net sales were up by 8%, basically as a result of a seasonal increase in sales volume. In 1H07, Ultragaz's net sales amounted to R$ 1,533 million, up 4% on 1H06.
 

Ipiranga  Net sales at Ipiranga amounted to R$ 4,959 million in 2Q07, up 4% and 9% compared to 2Q06 and 1Q07 Ipiranga Pro-forma figures, respectively, basically as a result of the expansion in the vehicles market and improvements in legislation and inspection implemented in the sector, partly offset by the variation in anhydrous and hydrated ethanol prices, which saw a drop as a result of the record levels of the sugarcane harvest in 2007 and the decrease in the ICMS tax rate in the state of Rio Grande do Sul. In 1H07, Ipiranga Pro-forma net sales amounted to R$ 9,505 million, up 3% compared to Ipiranga Pro-forma in 1H06.

 

- 7 -




 
Oxiteno  Oxiteno reported net sales and services of R$ 388 million in 2Q07, up 5% on 2Q06, basically as a result of an improvement in sales mix and better international commodity prices the 9% increase in volume sold offset the 9% appreciation in the Brazilian Real against the US Dollar. Compared to 1Q07, there was a 2% reduction in net sales and services, basically due to the 6% appreciation in the Brazilian Real against the US Dollar. Net sales and services in 1H07 amounted to R$ 784 million, up 8% on 1H06.
 
 

Ultracargo  Net revenues at Ultracargo amounted to R$ 57 million in 2Q07, down 3% on 2Q06, as a result of a reduction in transport operations, partially offset by (i) an increase in storage revenue and (ii) new internal logistics operations as a result of the acquisition of Petrolog in May. Compared to 1Q07, net revenues in the quarter increased by 5% as a result of increased storage levels at the Aratu and Santos Terminals, and of the new internal logistics operations. In 1H07, net revenues at Ultracargo totaled R$ 111 million, 5% below the net revenue reported in 1H06.
 

Cost of Sales and Services  Ultrapar's cost of sales and services amounted to R$ 5,704 million in 2Q07, up 494% and 500% on 2Q06 and 1Q07, respectively, basically due to the acquisition of Ipiranga. Taking Ultrapar Pro-forma in 2Q06 and 1Q07, the cost of sales and services would have increased by 3% and 8%, respectively, driven basically by increased sales volume in all the businesses managed by Ultrapar, particularly Ipiranga. In 1H07, Ultrapar's cost of sales and services amounted to R$ 6,655 million, up 258% compared to 1H06, as a result of the addition of Ipirangas costs from 2Q07.
 

Ultragaz  The cost of sales and services at Ultragaz amounted to R$ 670 million in 2Q07, up 3% and 8% compared to 2Q06 and 1Q07, respectively, in line with sales volume performance. Compared to 2Q06, the increase was also a result of the effects of inflation on distribution costs, as well as an increase in the cost associated with UltraSystem to bring it up to new safety standards. Compared to 1Q07, the benefits generated by the companys distribution structure review partially offset the increase due the higher volume sold. In 1H07 Ultragaz's cost of sales and services amounted to R$ 1,288 million, up 3% compared to 1H06.
 

Ipiranga  The cost of sales and services at Ipiranga amounted to R$ 4,702 million in 2Q07, up 3% on Ipiranga Pro-forma in 2Q06, as a result of an increase in volume sold, partly offset by a reduction in the cost of ethanol, due to record levels of the sugarcane harvest in 2007, and an alteration in the ICMS tax rate in the state of Rio Grande do Sul. Compared to Ipiranga Pro-forma in 1Q07, the cost of sales and services increased by 9%, basically as a result of higher volume sold. In 1H07 Pro-forma, Ipiranga's cost of sales and services amounted to R$ 9,001 million, up 3% compared to 1H06 Pro-forma.
 

Oxiteno  Oxiteno's cost of sales and services in 2Q07 amounted to R$ 319 million, up 12% compared to 2Q06, as a result of (i) a 9% increase in volume sold and (ii) a 21% increase in the ethylene cost in US$, partly offset by the 9% appreciation in the Brazilian Real in the period. Compared to 1Q07, there was a 2% increase in the cost of sales and services, in line with the volume sold the increases in unit costs in dollar terms were offset by the 6% appreciation in the Real. In 1H07, Oxiteno's cost of sales and services amounted to R$ 630 million, up 12% on 1H06.
 

Ultracargo  The cost of services provided by Ultracargo in 2Q07 amounted to R$ 34 million, down 6% compared to the same quarter in 2006, basically as a result of a reduction in transport costs, and up 4% on 1Q07, the result of higher volume of products handled at the Santos Terminal and increased internal logistics activities. In 1H07, the company's cost of services provided was down by 9% compared to 1H06.
 

Sales, General and Administrative Expenses Ultrapar's sales, general and administrative expenses amounted to R$ 336 million in 2Q07, up 128% and 116%, respectively on 2Q06 and 1Q07, due to Ipiranga acquisition. Taking Ultrapar Pro-forma figures in 2Q06 and 1Q07, sales, general and administrative expenses would have increased by 4% and would have decreased by 2%, respectively. In 1H07, Ultrapar's sales, general and administrative expenses amounted to R$ 492 million, up 71% compared to 1H06, as a result of adding the expenses associated with Ipiranga from 2Q07.
 

Ultragaz  Ultragaz's sales, general and administrative expenses amounted to R$ 81 million in 2Q07, almost unchanged compared to 2Q06, basically as a result of operational improvements implemented and non-recurring claims indemnity made in 2Q06. Compared to 1Q07, sales, general and administrative expenses were down by 6%, the result of operational improvements and higher expenditure on conventions and advertising in the first quarter of the year. In 1H07, sales, general and administrative expenses amounted to R$ 167 million, up 9% on 1H06.

- 8 - 




 
Ipiranga  Sales, general and administrative expenses at Ipiranga amounted to R$ 175 million in 2Q07, up 7% compared to Ipiranga Pro-forma in 2Q06, due to increased freight expenses and non-recurring expenses as a result of laying off the corporate staff that provided the support for the former controlling shareholders. Compared to Ipiranga Pro-forma in 1Q07, sales, general and administrative expenses were down 1%, due to a concentration of advertising and marketing expenses in 1Q07. Disregarding the above mentioned non-recurring expenses , which amounted to R$ 11 million in this quarter, sales, general and administrative expenses would have remained stable compared to Ipiranga Pro-forma in 2Q06 and would have decreased by 7% compared to Ipiranga Pro-forma in 1Q07. Ipiranga Pro-forma sales, general and administrative expenses in 1H07 amounted to R$ 351 million, up 6% on Ipiranga Pro-forma in 1H06.
 

Oxiteno  Oxiteno's sales, general administrative expenses totaled R$ 53 million in 2Q07, up 3% on 2Q06, as a result of increased sales expenses due to (i) an increase in volume sold and (ii) higher expenses at Oxiteno Mexico associated with exports. Administrative expenses were down 5%, as a result of lower employee profit-sharing - in line with the company's performance. Compared to 1Q07, sales, general and administrative expenses were down 3%, basically as a result of to the decrease in freight costs and lower employees profit-sharing. In 1H07, general expenses totaled R$ 108 million, up 7% on 1H06.
 

Ultracargo  Sales, general and administrative expenses at Ultracargo totaled R$ 17 million in 2Q07, down 2% on 2Q06, as a result of a reduction in the size of the company's workforce, due to a downsizing of operations in the transport segment, partially offset by higher expenses associated with increased storage operations. Compared to 1Q07, there was an increase of R$ 1 million in sales, general and administrative basically as a result of increased operations. In 1H07, sales, general and administrative expenses totaled R$ 34 million, down 7% on 1H06.
 

EBITDA  Ultrapar reported consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of R$ 225 million in 2Q07, up 66% on 2Q06, and 96% on 1Q07, basically as a result of the acquisition of Ipiranga. Taking Ultrapar Pro-forma figures in 2Q06 and 1Q07, the increase in EBITDA would have been 4% and 6% compared to 2Q06 and 1Q07, respectively. In 1H07, EBITDA at Ultrapar amounted to R$ 340 million, up 40% compared to 1H06, as a result of the addition of Ipirangas EBITDA in 2Q07. 

 

Ultragaz  Ultragaz reported EBITDA of R$ 78 million in 2Q07, almost unchanged compared to the EBITDA reported in 2Q06, basically as a result of an increase in distribution costs due to inflation effects in 2Q07, which neutralized the increase in sales volume. Compared to 1Q07, EBITDA was up 29%, a reflection of the 9% increase in sales volume and lower operational expenses. In 1H07, EBITDA at Ultragaz totaled R$ 138 million, up 4% on 1H06, principally the result of the increase in sales volume.

- 9 -




 
Ipiranga  Ipiranga reported EBITDA of R$ 105 million in 2Q07, up 31% and 9% compared to Ipiranga Pro-forma in 2Q06 and 1Q07, respectively, basically as a result of increased sales volume and measures implemented to improve legislation and inspection of the fuel sector. In 1H07, EBITDA Pro-forma at Ipiranga totaled R$ 202 million, up 16% on Ipiranga Pro-forma in 1H06.
 

Oxiteno EBITDA totaled R$ 28 million in 2Q07, down 40% and 33% compared to 2Q06 and 1Q07, respectively, basically as a result of the appreciation in the Brazilian Real and an increase in the cost of raw materials, particularly the ethylene. In 1H07, EBITDA at Oxiteno totaled R$ 70 million, 19% down on 1H06.
 

Ultracargo Ultracargo reported EBITDA of R$ 12 million, an increase of 14% and 12%, respectively, on 2Q06 and 1Q07, as a result of increased operations in the storage and internal logistics segments. In 1H07, EBITDA at Ultracargo totaled R$ 24 million, up 16% on 1H06.
 

Financial Result Ultrapar reported net financial expenses of R$ 27 million in 2Q07, compared to net financial expenses of R$ 8 million in 1Q07, and net financial revenues of R$ 22 million in 2Q06. The financial result in 2Q06 benefited from an extraordinary gain of R$ 27 million, due to the winning of lawsuits related to the levying of PIS and COFINS taxes on financial revenues. In addition, the result in 2Q07 reflects Ultrapar's increased levels of net debt as a result of the first payment related to the acquisition of Ipiranga. Ultrapar ended the quarter with net debt of R$ 1,176 million, compared to net cash of R$ 162 million in 2Q06, and net debt of R$ 48 million in 1Q07. As per the material notice released on March 19, 2007, Ipiranga acquisition transaction is composed of some stages, with completion estimated for 4Q07. After the completion of these stages under the terms of the above mentioned material notice, Ultrapar should receive R$ 1.7 billion for the assets acquired on behalf of Braskem and Petrobras.
 

Benefit of tax holidays In December 2006, the income tax exemption enjoyed by Oxiteno's unit at Camaçari expired and a request was filed with ADENE (Northeast Development Agency), responsible to manage this incentive program, asking for a 75% reduction in income tax until 2016, which was deferred on May 25, 2007. On July 3, 2007, the report issued by ADENE was sent to the Federal Tax Authorities for approval, which has a time limit of 120 days to occur. After this period, Oxiteno will be able to book the amount of the tax benefit in its results, with retroactive effect to January 1st, 2007. Should the tax benefit had been obtained since January 1, 2007, the total expense with income tax and social contribution would have been reduced by R$ 8.4 million, R$ 2.2 million referring to the effect of the tax benefit in 2Q07.
 

Minority Interest The minority interest of Ultrapar amounted to R$ 48 million in 2Q07, reflecting the stake by minority shareholders in Ipiranga. Ultrapar currently holds 11.52% of CBPI capital and 32.45% of DPPI capital. After the completion of the stages of Ipiranga acquisition transaction, under the terms of the material notice released on March 19, 2007, Ultrapar shall hold 100% of CBPI and DPPI capital.
 

Goodwill on the acquisition IpirangaThe acquisition of the control of Ipiranga involved a goodwill of R$ 425 million in 2Q07, which is being amortized over a period of 10 years. In 2Q07, the amortization of this goodwill totaled R$ 10.6 million.
 

Net Earnings Ultrapar's consolidated net earnings in 2Q07 amounted to R$ 37 million, 58% lower than the net earnings reported in 2Q06, and 1% higher than the figure reported in 1Q07, despite the increase in EBITDA between the periods analyzed, basically because of the effects related to financial results, tax incentives, the goodwill for the acquisition of Ipiranga and minority interest.
 

Investments Total investment, net of disposals and repayment, amounted to R$ 902 million in 2Q07, allocated as follows:

  
Ultragaz invested R$ 28 million mainly on the renewal of existing cylinders and tanks, as well as in the expansion of the overall amount.
 
  
At Ipiranga, R$ 30 million was allocated mainly in the renovation and operational improvement of the company's service stations and distribution facilities and on the expansion of NGV service stations. Of the total amount invested, R$ 16 million referred to the addition of property, plant and equipment (PP&E) and deferred charges,

- 10 -




 
 
net of disposals, R$ 6 million referred to the financing operations for the company's clients1 , net of repayment, and R$ 7 million referred to leasing operations.
 
  
At Oxiteno, R$ 119 million investments were basically concentrated on production capacity expansion projects, particularly the building of the fatty alcohol plant, expansion to specialty chemical production capacity, as well as expansion to ethylene oxide production capacity at Mauá. During the 2H07, the expansion of the alcoxylation production capacity and the ethanolamines production capacity in Camacari will be coming on stream, enabling an increased production of specialty chemicals.
 
  
Ultracargo invested R$ 10 million in the expansion of the Aratu terminal for the storage of palm kernel oil and the maintenance of its facilities.
 
  
Acquisitions amounted to R$ 703 million in 2Q07, and include the acquisition of the shares held by the former shareholders of Ipiranga Group, the acquisition of Petrolog and the purchase of shares issued by Ultrapar for holding as treasury stock.
 

 
 
Ultrapar in the capital markets

The shares of Ultrapar appreciated by 6% in 2Q07. In this same period, the Ibovespa and IBX index appreciated by 19% and 17%, respectively. In 1H07 the shares of Ultrapar appreciated by 31%, while the Ibovespa and IBX index appreciated by 22% and 20%, respectively. Ultrapar's average daily trading volume amounted to R$ 16 million/day in 2Q07, compared to R$ 4 million/day in 2Q06, considering both the trading volume in Bovespa and in the NYSE. For the year to date, Ultrapar's average daily trading volume amounted to R$ 13 million/day, compared to R$ 5 million/day in the same period in 2006.
 
 
 
 

 
1 Financing operations for the company's clients are reported at the working capital at the Cash Flow Statement 

- 11 - 




 
Outlook
 
We have carried out the integration of Ipiranga into Ultrapar and have begun the process of bringing the businesses acquired into line with our management model. We will be continuing this process, which should result in not only the capturing of the benefits expected, but also additional gains as a result of the exchange of know how between Ipiranga and the other businesses of Ultrapar. We will also be continuing to dedicate ourselves to ongoing expansion projects, which will enable a significant growth in Oxitenos volumes from 2008. We are optimists with regard to new and relevant opportunities coming from the increased scope in all our businesses.

Forthcoming Events
 
Conference Call/ Webcast for market analysts: August 10, 2007
 
Ultrapar will be holding conference calls on August 10, 2007, to comment on the company's performance in the second quarter of 2007 and future outlook. The presentation will be available for download on the company's website 1 hour prior to the conference calls.
 
Local: 10 a.m. (US EST) / 11 a.m. (Brazil time)
 
For connection please call 5 minutes before the conference call on telephone number 55 11 2101-4848. Code: Ultrapar
 

International: 12-midday (US EST) / 1 p.m. (Brazil time) /
Participants in Brazil: 0-800-891-3951
Participants in the USA: 1-800-418-6854
International participants: +1 (973) 935-8893
Code: Ultrapar or 8982716

WEBCAST live by Internet on site www.ultra.com.br. Please connect 15 minutes in advance.
 

 
This document may contain forecasts of future events. Such predictions merely reflect the expectations of the Company's management. Words such as: "believe", "expect", "plan", "strategy", "prospects", "envisage", "estimate", "forecast", "anticipate", "may" and other words with similar meaning are intended as preliminary declarations regarding expectations and future forecasts. Such declarations are subject to risks and uncertainties, anticipated by the Company or otherwise, which could mean that the reported results turn out to be significantly different from those forecast. Therefore, the reader should not base investment decisions solely on these estimates.

- 12 -




 
Operational and Market Information
 
Financial focus
2Q07
2Q06
1Q07
1H07
1H06
Ultrapar - EBITDA Margin
 
4%
 
11%
 
10%
 
5%
 
11%
Ultrapar - Net Margin
 
1%
 
7%
 
3%
 
1%
 
6%
Productivity
2Q07
2Q06
1Q07
1H07
1H06
EBITDA R$/ton Ultragaz
 
194
 
197
 
164
 
180
 
178
EBITDA R$/m3 Ipiranga1
 
32
 
26
 
32
 
32
 
30
EBITDA R$/ton Oxiteno
 
190
 
345
 
293
 
241
 
330
Focus on Human Resources
2Q07
2Q06
1Q07
1H07
1H06
Number of employees: Ultrapar
 
9,567
 
6,905
 
6,978
 
9,567
 
6,905
Number of employees: Ultragaz
 
4,475
 
4,273
 
4,461
 
4,475
 
4,273
Number of employees: Ipiranga2
 
2,367
 
2,385
 
2,435
 
2,367
 
2,385
Number of employees: Oxiteno
 
1,345
 
1,248
 
1,330
 
1,345
 
1,248
Number of employees: Ultracargo
 
1,160
 
1,171
 
964
 
1,160
 
1,171
Focus on capital markets
2Q07
2Q06
1Q07
1H07
1H06
Quantity of shares (million)
 
81,325
 
81,325
 
81,325
 
81,325
 
81,325
Market Capitalization 3 R$ million
 
4,997
 
2,936
 
4,278
 
4,997
 
2,858
Bovespa
 
 
               
Average Daily Volume ('000 shares)
 
132,400
 
58,656
 
124,716
 
126,532
 
65,919
Average Daily Financial Volume (R$' 000)
 
8,180
 
2,092
 
6,572
 
7,264
 
2,301
Average Share Price (R$ /' 000)
 
61.8
 
35.7
 
52.7
 
57.4
 
34.9
NYSE
                   
Quantity of ADRs4 (' 000 ADRs)
 
10,702
 
11,652
 
12,601
 
10,702
 
11,652
Average daily Volume (ADRs)
 
126,538
 
48,748
 
65,473
 
126,532
 
72,382
Average Daily Financial Volume (US$' 000)
 
3,899
 
820
 
1,629
 
2,760
 
1,172
Average Price (US$ / ADRs)
 
30.8
 
16.8
 
24.9
 
28.8
 
16.2
Total5
                   
Average Daily Volume (000 shares)
 
258,938
 
107,403
 
190,189
 
222,258
 
138,301
Average Daily Financial Volume (R$ 000)
 
15,909
 
3,877
 
10,004
 
12,835
 
4,859

 
All financial information is presented according to the accounting principles laid down in Brazilian Corporate Legislation (BR GAAP). All figures are expressed in Brazilian Reais, except for the amounts on page 21, which are expressed in US dollars and were obtained using the average rate of exchange (commercial dollar rate) for the corresponding periods.
 
For additional information please contact:
Investor Relations Department - Ultrapar Participações S.A.
(55 11) 3177-7014
invest@ultra.com.br
www.ultra.com.br

1 Only for fuels and lubricants sales. Figures in 2006 and 1Q07 are pro-forma, non-audited, included only to provide a comparison base  
2 Figures in 2006 and 1Q07 are pro-forma, non-audited, included only to provide a comparison base 
3 Calculated based on the weighted average price in the period 
4 1 ADR = 1 preferred share 
5 Total = BOVESPA + NYSE 

- 13 - 



 

ULTRAPAR PARTICIPAÇÕES S/A
CONSOLIDATED BALANCE SHEET
In millions of reais - Accounting practices adopted in Brazil
       
   
QUARTERS ENDED IN   
 
   
JUN
   
JUN
   
MAR
 
   
2007
   
2006
   
2007
 
ASSETS
                 
Cash and cash equivalents
   
1,521.9
     
1,111.4
     
869.1
 
Trade accounts receivable
   
1,260.9
     
355.6
     
383.7
 
Inventories
   
540.4
     
197.2
     
228.0
 
Other
   
319.9
     
130.0
     
167.1
 
Total Current Assets
   
3,643.1
     
1,794.2
     
1,647.9
 
Investments
   
38.9
     
33.0
     
30.7
 
Property, plant and equipment
   
2,066.3
     
1,089.2
     
1,238.5
 
Deferred charges
   
543.8
     
107.1
     
116.2
 
Long term investments
   
118.9
     
522.4
     
551.3
 
Other long term assets
   
444.4
     
171.6
     
186.9
 
Total Long Term Assets
   
3,212.3
     
1,923.3
     
2,123.6
 
TOTAL ASSETS
   
6,855.4
     
3,717.5
     
3,771.5
 
LIABILITIES
                       
Loans and financing
   
302.7
     
120.3
     
125.4
 
Debentures
   
1,015.3
     
15.3
     
303.1
 
Suppliers
   
450.7
     
90.0
     
104.4
 
Payroll and related charges
   
105.3
     
66.9
     
66.0
 
Taxes
   
88.2
     
21.7
     
23.2
 
Other accounts payable
   
88.6
     
19.8
     
41.9
 
Total Current Liabilities
   
2,050.8
     
334.0
     
664.0
 
Loans and financing
   
1,149.1
     
1,036.1
     
1,040.2
 
Debentures
   
350.0
     
300.0
     
-
 
Income and social contribution taxes
   
26.5
     
24.7
     
26.2
 
Other long term liabilities
   
175.8
     
49.3
     
38.8
 
Total Long Term Liabilities
   
1,701.4
     
1,410.1
     
1,105.2
 
TOTAL LIABILITIES
   
3,752.2
     
1,744.1
     
1,769.2
 
STOCKHOLDERS' EQUITY
                       
Capital
   
946.0
     
946.0
     
946.0
 
Capital reserve
   
0.7
     
0.4
     
0.6
 
Revalution reserves
   
12.3
     
14.2
     
12.6
 
Profit reserves
   
953.3
     
829.1
     
971.7
 
Retained earnings
   
75.2
     
151.8
     
37.6
 
Total Stockholders' Equity
   
1,987.5
     
1,941.5
     
1,968.5
 
Minority Interests
   
1,115.7
     
31.9
     
33.8
 
TOTAL STOCKHOLDERS' EQUITY & M.I.
   
3,103.2
     
1,973.4
     
2,002.3
 
TOTAL LIAB. AND STOCKHOLDERS' EQUITY
   
6,855.4
     
3,717.5
     
3,771.5
 
Cash and Long term investments
   
1,640.8
     
1,633.8
     
1,420.4
 
Debt
   
2,817.1
     
1,471.7
     
1,468.7
 
Net cash (debt)
    (1,176.3 )    
162.1
      (48.3 )

- 14 -

 


ULTRAPAR PARTICIPAÇÕES S/A
CONSOLIDATED STATEMENT OF INCOME
In millions of reais (except per share data) - Accounting practices adopted in Brazil
             
   
QUARTERS ENDED IN
   
ACCUMULATED
 
   
JUN
   
JUN
   
MAR
   
JUN
   
JUN
 
   
2007
   
2006
   
2007
   
2007
   
2006
 
Net sales and services
   
6,181.1
     
1,197.4
     
1,174.1
     
7,355.2
     
2,295.1
 
Cost of sales and services
    (5,704.2 )     (960.7 )     (950.9 )     (6,655.1 )     (1,859.4 )
Gross profit
   
476.9
     
236.7
     
223.2
     
700.1
     
435.7
 
Operating expenses
                                       
Selling
    (124.6 )     (47.6 )     (53.2 )     (177.8 )     (93.6 )
General and administrative
    (146.1 )     (69.2 )     (70.8 )     (216.9 )     (133.0 )
Depreciation and amortization
    (65.6 )     (30.5 )     (31.8 )     (97.4 )     (61.1 )
Other operating income (expenses)
   
4.2
     
0.5
      (0.1 )    
4.1
     
1.1
 
Income before equity and financial
                                       
  results
   
144.8
     
89.9
     
67.3
     
212.1
     
149.1
 
Financial results
    (27.3 )    
22.4
      (7.9 )     (35.2 )    
34.8
 
Financial income
   
37.1
     
40.1
     
31.8
     
68.9
     
73.8
 
Financial expenses
    (57.3 )     (40.2 )     (34.7 )     (92.0 )     (72.5 )
Taxes on financial activities
    (7.1 )    
22.5
      (5.0 )     (12.1 )    
33.5
 
Equity in earnings (losses) of affiliates
                                       
Affiliates
   
-
     
0.6
      (0.1 )     (0.1 )    
0.6
 
Nonoperating income (expense)
    (1.1 )     (11.1 )     (0.8 )     (1.9 )     (13.2 )
Income before taxes and profit sharing
   
116.4
     
101.8
     
58.5
     
174.9
     
171.3
 
Provision for income and social contribution tax
    (32.0 )     (31.9 )     (23.4 )     (55.4 )     (54.9 )
Benefit of tax holidays
   
3.3
     
19.4
     
2.8
     
6.1
     
30.8
 
Income before minority interest
   
87.7
     
89.3
     
37.9
     
125.6
     
147.2
 
Employees statutory interest
    (2.8 )    
-
     
-
      (2.8 )    
-
 
Minority interest
    (47.5 )     (1.2 )     (0.7 )     (48.2 )     (2.3 )
Net Income
   
37.4
     
88.1
     
37.2
     
74.6
     
144.9
 
EBITDA
   
225.3
     
136.0
     
115.1
     
340.4
     
242.6
 
Depreciation and amortization
   
83.3
     
46.1
     
47.8
     
131.1
     
93.5
 
Total investments, net of write-off and repayments
   
902.4
     
80.9
     
122.7
     
1,025.1
     
135.3
 
RATIOS
                                       
Earnings / share - R$
   
0.46
     
1.08
     
0.46
     
0.92
     
1.78
 
Net debt / Stockholders' equity
   
0.38
   
Na
     
0.02
                 
Net debt / LTM EBITDA
   
1.91
   
Na
     
0.09
                 
Net interest expense / EBITDA
   
0.12
   
Na
     
0.07
     
0.10
   
Na
 
Gross margin
    8 %     20 %     19 %     10 %     19 %
Operating margin
    2 %     8 %     6 %     3 %     6 %
EBITDA margin
    4 %     11 %     10 %     5 %     11 %

- 15 -

 

ULTRAPAR PARTICIPAÇÕES S/A
CONSOLIDATED CASH FLOW STATEMENT
In millions of reais - Accounting practices adopted in Brazil

   
JAN - JUN
 
   
2007
   
2006
 
Cash Flows from operating activities
   
218.5
     
197.4
 
Net income
   
74.6
     
144.9
 
Minority interest
   
48.2
     
2.3
 
Depreciation and amortization
   
131.1
     
93.5
 
Working capital
    (10.8 )     (45.8 )
Financial expenses (A)
   
5.5
     
6.1
 
Deferred income and social contribution taxes
    (22.7 )     (11.2 )
Other (B)
    (7.4 )    
7.6
 
Cash Flows from investing activities
    (1,011.8 )     (135.3 )
Additions to property, plant, equipment and deferred charges, net of disposals (C)
    (306.3 )     (135.3 )
Acquisition of minority interests (D)
    (705.5 )    
-
 
Cash Flows from (used in) financing activities
   
577.2
      (51.9 )
Short term debt, net
    (117.8 )     (131.3 )
Issuance of debentures
   
675.0
     
-
 
Issuances
   
87.5
     
168.5
 
Related companies
    (3.6 )     (1.6 )
Dividends paid (E)
    (63.9 )     (87.5 )
Net increase (decrease) in cash and cash equivalents
    (216.1 )    
10.2
 
Cash from acquired subsidiaries (F)
   
238.8
     
-
 
Cash and cash equivalents at the beginning of the period (G)
   
1,618.1
     
1,623.6
 
Cash and cash equivalents at the end of the period (G)
   
1,640.8
     
1,633.8
 
Supplemental disclosure of cash flow information
               
Cash paid for interest (H)
   
47.1
     
43.7
 
Cash paid for taxes on income (I)
   
29.7
     
6.6
 

(A)  
Not including financial income. Comprised basically of financial expenses, in particular, exchange variations.
(B)  
Comprised mainly cost of permanent asset sold and noncurrent assets and liabilities net.
(C)  
Included ICMS on the Property, plant and equipment according to Law Complemental no. 102/2000.
(D)  
Included R$ 676.4 of Ipiranga / Refinery acquisition, R$ 8.1 of Petrolog acquisition and R$ 20.9 of treasury shares.
(E)  
Including dividends paid by Ultrapar and its subsidiaries for third parties.
(F)  
The debt amount assumed of subsidiaries acquisition totalized R$ 675.3.
(G)  
Included Long term investments.
(H)  
Included in cash flow used in financing activities.
(I)  
Included in cash flow from operating activities.
 
- 16 -

 

 
ULTRAGAZ PARTICIPAÇÕES LTDA.
CONSOLIDATED BALANCE SHEET
In millions of reais - Accounting practices adopted in Brazil
       
   
QUARTERS ENDED IN
 
   
JUN
   
JUN
   
MAR
 
   
2007
   
2006
   
2007
 
OPERATING ASSETS
                 
Trade accounts receivable
   
173.3
     
161.2
     
153.3
 
Trade accounts receivable - noncurrent portion
   
14.2
     
19.7
     
17.2
 
Inventories
   
36.7
     
43.2
     
40.6
 
Other
   
16.6
     
10.3
     
11.1
 
Property, plant and equipment
   
393.1
     
406.3
     
391.7
 
Deferred charges
   
83.2
     
75.9
     
84.9
 
TOTAL OPERATING ASSETS
   
717.1
     
716.6
     
698.8
 
OPERATING LIABILITIES
                       
Suppliers
   
28.3
     
29.4
     
24.1
 
Payroll and related charges
   
38.3
     
35.6
     
35.3
 
Taxes
   
4.5
     
4.1
     
4.1
 
Other accounts payable
   
1.0
     
1.9
     
1.3
 
TOTAL OPERATING LIABILITIES
   
72.1
     
71.0
     
64.8
 

ULTRAGAZ PARTICIPAÇÕES LTDA.
CONSOLIDATED STATEMENT OF INCOME
In millions of reais - Accounting practices adopted in Brazil
             
   
QUARTERS ENDED IN
   
ACCUMULATED
 
   
JUN
   
JUN
   
MAR
   
JUN
   
JUN
 
   
2007
   
2006
   
2007
   
2007
   
2006
 
Net sales
   
797.6
     
781.1
     
735.4
     
1,533.0
     
1,475.3
 
Cost of sales and services
    (669.7 )     (652.3 )     (618.3 )     (1,288.0 )     (1,245.9 )
Gross profit
   
127.9
     
128.8
     
117.1
     
245.0
     
229.4
 
Operating expenses
                                       
Selling
    (28.5 )     (27.9 )     (28.8 )     (57.3 )     (52.3 )
General and administrative
    (21.9 )     (23.3 )     (28.0 )     (49.9 )     (44.8 )
Depreciation and amortization
    (30.2 )     (28.3 )     (29.3 )     (59.5 )     (56.5 )
Other operating results
   
0.4
     
0.1
     
0.1
     
0.5
     
0.6
 
EBIT
   
47.7
     
49.4
     
31.1
     
78.8
     
76.4
 
EBITDA
   
77.9
     
77.6
     
60.4
     
138.3
     
132.9
 
Depreciation and amortization
   
30.2
     
28.3
     
29.3
     
59.5
     
56.5
 
RATIOS
                                       
Gross margin
    16 %     16 %     16 %     16 %     16 %
Operating margin
    6 %     6 %     4 %     5 %     5 %
EBITDA margin
    10 %     10 %     8 %     9 %     9 %
                                   
*We included "Long term trade accounts receivable" in the operating assets
                                 


- 17 -

 


IPIRANGA
CONSOLIDATED BALANCE SHEET
In millions of reais - Accounting practices adopted in Brazil
       
   
QUARTERS ENDED IN
 
   
JUN
   
JUN
   
MAR
 
   
2007
   
2006
   
2007
 
OPERATING ASSETS
                 
Trade accounts receivable
   
886.6
     
767.4
     
880.8
 
Trade accounts receivable - noncurrent portion
   
141.7
     
122.6
     
139.8
 
Inventories
   
289.0
     
354.6
     
304.8
 
Other
   
87.2
     
71.8
     
78.1
 
Property, plant and equipment
   
708.8
     
681.4
     
714.2
 
Deferred charges
   
0.2
     
1.7
     
0.2
 
TOTAL OPERATING ASSETS
   
2,113.5
     
1,999.5
     
2,117.9
 
OPERATING LIABILITIES
                       
Suppliers
   
324.3
     
260.2
     
293.9
 
Payroll and related charges
   
35.8
     
40.6
     
29.1
 
Post-retirement benefits
   
74.9
     
86.0
     
77.9
 
Taxes
   
27.8
     
20.1
     
28.4
 
Other accounts payable
   
19.8
     
28.9
     
26.0
 
TOTAL OPERATING LIABILITIES
   
482.6
     
435.8
     
455.3
 

IPIRANGA
CONSOLIDATED STATEMENT OF INCOME
In millions of reais - Accounting practices adopted in Brazil
             
   
QUARTERS ENDED IN
   
ACCUMULATED
 
   
JUN
   
JUN
   
MAR
   
JUN
   
JUN
 
   
2007
   
2006
   
2007
   
2007
   
2006
 
Net sales
   
4,958.8
     
4,775.9
     
4,546.0
     
9,504.8
     
9,233.8
 
Cost of sales and services
    (4,702.4 )     (4,553.9 )     (4,298.3 )     (9,000.7 )     (8,775.3 )
Gross profit
   
256.4
     
222.0
     
247.7
     
504.1
     
458.5
 
Operating expenses
                                       
Selling
    (72.1 )     (68.6 )     (80.2 )     (152.3 )     (145.0 )
General and administrative
    (80.8 )     (74.7 )     (75.8 )     (156.6 )     (146.0 )
Depreciation and amortization
    (22.0 )     (20.9 )     (20.4 )     (42.4 )     (41.7 )
Other operating results
   
2.7
     
3.4
     
3.3
     
6.0
     
6.7
 
EBIT
   
84.2
     
61.2
     
74.6
     
158.8
     
132.5
 
EBITDA
   
105.1
     
80.4
     
96.7
     
201.8
     
174.1
 
Depreciation and amortization
   
23.7
     
22.6
     
22.1
     
45.8
     
45.0
 
Employees statutory interest
   
2.8
     
3.4
     
-
     
2.8
     
3.4
 
RATIOS
                                       
Gross margin
    5.2 %     4.6 %     5.4 %     5.3 %     5.0 %
Operating margin
    1.7 %     1.3 %     1.6 %     1.7 %     1.4 %
EBITDA margin
    2.1 %     1.7 %     2.1 %     2.1 %     1.9 %

*Figures in 2006 and 1T07 are pro forma, non-audited, included only to provide a comparison base.

- 18 -

 

OXITENO S/A - INDÚSTRIA E COMÉRCIO
CONSOLIDATED BALANCE SHEET
In millions of reais - Accounting practices adopted in Brazil
       
   
QUARTERS ENDED IN
 
   
JUN
   
JUN
   
MAR
 
   
2007
   
2006
   
2007
 
OPERATING ASSETS
                 
Trade accounts receivable
   
180.5
     
175.5
     
213.8
 
Inventories
   
200.5
     
150.3
     
183.7
 
Other
   
122.2
     
78.8
     
110.3
 
Property, plant and equipment
   
734.1
     
476.0
     
629.0
 
Deferred charges
   
15.5
     
14.3
     
15.4
 
TOTAL OPERATING ASSETS
   
1,252.8
     
894.9
     
1,152.2
 
OPERATING LIABILITIES
                       
Suppliers
   
89.0
     
56.7
     
76.0
 
Payroll and related charges
   
21.6
     
22.5
     
21.8
 
Taxes
   
15.9
     
8.2
     
15.4
 
Other accounts payable
   
3.8
     
1.6
     
1.9
 
TOTAL OPERATING LIABILITIES
   
130.3
     
89.0
     
115.1
 

OXITENO S/A - INDÚSTRIA E COMÉRCIO
CONSOLIDATED STATEMENT OF INCOME
In millions of reais - Accounting practices adopted in Brazil
             
   
QUARTERS ENDED IN
   
ACCUMULATED
 
   
JUN
   
JUN
   
MAR
   
JUN
   
JUN
 
   
2007
   
2006
   
2007
   
2007
   
2006
 
Net sales
   
387.7
     
370.4
     
396.2
     
783.9
     
727.8
 
Cost of goods sold
                                       
Variable
    (281.8 )     (250.9 )     (274.2 )     (556.0 )     (493.8 )
Fixed
    (27.4 )     (24.6 )     (27.3 )     (54.7 )     (51.5 )
Depreciation and amortization
    (9.8 )     (9.3 )     (9.9 )     (19.7 )     (18.7 )
Gross profit
   
68.7
     
85.6
     
84.8
     
153.5
     
163.8
 
Operating expenses
                                       
Selling
    (23.5 )     (20.5 )     (24.3 )     (47.8 )     (41.7 )
General and administrative
    (27.3 )     (28.8 )     (28.3 )     (55.6 )     (54.7 )
Depreciation and amortization
    (2.2 )     (2.0 )     (2.1 )     (4.3 )     (4.0 )
Other operating results
   
0.3
     
0.6
     
-
     
0.3
     
0.6
 
EBIT
   
16.0
     
34.9
     
30.1
     
46.1
     
64.0
 
EBITDA
   
28.0
     
46.2
     
42.1
     
70.1
     
86.7
 
Depreciation and amortization
   
12.0
     
11.3
     
12.0
     
24.0
     
22.7
 
RATIOS
                                       
Gross margin
    18 %     23 %     21 %     20 %     23 %
Operating margin
    4 %     9 %     8 %     6 %     9 %
EBITDA margin
    7 %     12 %     11 %     9 %     12 %

 
- 19 -

 


ULTRACARGO PARTICIPAÇÕES LTDA.
CONSOLIDATED BALANCE SHEET
In millions of reais - Accounting practices adopted in Brazil
       
   
QUARTERS ENDED IN
 
   
JUN
   
JUN
   
MAR
 
   
2007
   
2006
   
2007
 
OPERATING ASSETS
                 
Trade accounts receivable
   
26.3
     
23.7
     
22.2
 
Inventories
   
3.8
     
3.7
     
3.7
 
Other
   
9.2
     
7.3
     
8.0
 
Property, plant and equipment
   
216.0
     
197.7
     
207.2
 
Deferred charges
   
8.5
     
8.5
     
10.9
 
TOTAL OPERATING ASSETS
   
263.8
     
240.9
     
252.0
 
OPERATING LIABILITIES
                       
Suppliers
   
11.2
     
8.4
     
9.2
 
Payroll and related charges
   
8.9
     
8.8
     
8.8
 
Taxes
   
2.3
     
3.7
     
2.4
 
Other accounts payable
   
0.2
     
-
     
-
 
TOTAL OPERATING LIABILITIES
   
22.6
     
20.9
     
20.4
 

ULTRACARGO PARTICIPAÇÕES LTDA.
CONSOLIDATED STATEMENT OF INCOME
In millions of reais - Accounting practices adopted in Brazil
             
   
QUARTERS ENDED IN
   
ACCUMULATED
 
   
JUN
   
JUN
   
MAR
   
JUN
   
JUN
 
   
2007
   
2006
   
2007
   
2007
   
2006
 
Net sales
   
57.0
     
58.7
     
54.3
     
111.3
     
116.8
 
Cost of sales and services
    (34.4 )     (36.5 )     (33.1 )     (67.5 )     (74.5 )
Gross profit
   
22.6
     
22.2
     
21.2
     
43.8
     
42.3
 
Operating expenses
                                       
Selling
    (0.3 )    
0.9
      (0.1 )     (0.4 )    
0.5
 
General and administrative
    (17.0 )     (18.4 )     (16.1 )     (33.1 )     (36.3 )
Depreciation and amortization
    (0.1 )     (0.2 )     (0.1 )     (0.2 )     (0.3 )
Other operating results
   
0.8
     
-
      (0.1 )    
0.7
     
-
 
EBIT
   
6.0
     
4.5
     
4.8
     
10.8
     
6.2
 
EBITDA
   
12.4
     
10.9
     
11.1
     
23.5
     
20.2
 
Depreciation and amortization
   
6.4
     
6.4
     
6.3
     
12.7
     
14.0
 
RATIOS
                                       
Gross margin
    40 %     38 %     39 %     39 %     36 %
Operating margin
    11 %     8 %     9 %     10 %     5 %
EBITDA margin
    22 %     19 %     20 %     21 %     17 %

 
- 20 -

 


ULTRAPAR PARTICIPAÇÕES S/A
CONSOLIDATED INCOME STATEMENT
In millions of US dollars (except per share data) - Accounting practices adopted in Brazil
             
   
QUARTERS ENDED IN
   
ACCUMULATED
 
   
JUN
   
JUN
   
MAR
   
JUN
   
JUN
 
(US$ millions)
 
2007
   
2006
   
2007
   
2007
   
2006
 
Net sales
                             
Ultrapar
   
3,118.9
     
548.0
     
557.0
     
3,597.0
     
1,047.7
 
Ultragaz
   
402.5
     
357.5
     
348.9
     
749.7
     
673.5
 
Ipiranga
   
2,502.2
     
2,185.6
     
2,156.8
     
4,648.3
     
4,215.2
 
Oxiteno
   
195.6
     
169.5
     
188.0
     
383.4
     
332.2
 
Ultracargo
   
28.8
     
26.9
     
25.8
     
54.4
     
53.3
 
EBIT
                                       
Ultrapar
   
73.1
     
41.1
     
31.9
     
103.7
     
68.1
 
Ultragaz
   
24.1
     
22.6
     
14.8
     
38.5
     
34.9
 
Ipiranga
   
42.5
     
28.0
     
35.4
     
77.7
     
60.5
 
Oxiteno
   
8.1
     
16.0
     
14.3
     
22.5
     
29.2
 
Ultracargo
   
3.0
     
2.1
     
2.3
     
5.3
     
2.8
 
Operating margin
                                       
Ultrapar
    2.3 %     7.5 %     5.7 %     2.9 %     6.5 %
Ultragaz
    6.0 %     6.3 %     4.2 %     5.1 %     5.2 %
Ipiranga
    1.7 %     1.3 %     1.6 %     1.7 %     1.4 %
Oxiteno
    4.1 %     9.4 %     7.6 %     5.9 %     8.8 %
Ultracargo
    10.5 %     7.7 %     8.9 %     9.7 %     5.3 %
EBITDA
                                       
Ultrapar
   
113.7
     
62.2
     
54.6
     
166.5
     
110.7
 
Ultragaz
   
39.3
     
35.5
     
28.7
     
67.6
     
60.7
 
Ipiranga
   
53.0
     
36.8
     
45.9
     
98.7
     
79.5
 
Oxiteno
   
14.1
     
21.2
     
20.0
     
34.3
     
39.6
 
Ultracargo
   
6.3
     
5.0
     
5.3
     
11.5
     
9.2
 
EBITDA margin
                                       
Ultrapar
    3.6 %     11.4 %     9.8 %     4.6 %     10.6 %
Ultragaz
    9.8 %     9.9 %     8.2 %     9.0 %     9.0 %
Ipiranga
    2.1 %     1.7 %     2.1 %     2.1 %     1.9 %
Oxiteno
    7.2 %     11.5 %     10.6 %     8.9 %     11.9 %
Ultracargo
    21.8 %     18.6 %     20.5 %     21.1 %     17.3 %
Net income
                                       
Ultrapar
   
18.9
     
40.3
     
17.6
     
36.5
     
66.1
 
Net income / share (US$)
   
0.23
     
0.50
     
0.22
     
0.45
     
0.81
 

*Figures in 2006 and 1T07 are pro forma, non-audited, included only to provide a comparison base.

- 21 -

 

 
ULTRAPAR PARTICIPAÇÕES S/A 
LOANS, DEBENTURES, CASH AND MARKETABLE SECURITIES 
In millions of reais - Accounting practices adopted in Brazil 
 
LOANS AND DEBENTURES
 
Balance in June/2007
 
 Index/
 
Interest Rate %
   
                                 
Ultrapar
     
 Currency
 
Minimum
   
Maximum
 
 Maturity
   
Ultragaz
   
Oxiteno
   
Ultracargo
   
Ipiranga
   
Other
   
Parent Company
   
Ultrapar
Consolidated
                 
Foreign Currency
                                                         
                                                           
   Sindicated loan
   
-
     
115.7
     
-
     
-
     
-
     
-
     
115.7
 
 US$
   
5.1
     
5.1
 
 2008
   Notes
   
115.9
     
-
     
-
     
-
     
-
     
-
     
115.9
 
 US$
   
9.0
     
9.0
 
 2020
   Notes
   
482.5
     
-
     
-
     
-
     
-
     
-
     
482.5
 
 US$
   
7.3
     
7.3
 
 2015
   Notes
   
-
     
-
     
-
     
112.5
     
-
     
-
     
112.5
 
 US$
   
9.9
     
9.9
 
 2008
   Working capital loan
   
-
     
6.4
     
-
     
-
     
-
     
-
     
6.4
 
 MX$ + TIIE (*)
   
1.0
     
1.0
 
 2008
   Working capital loan
   
-
     
-
     
-
     
2.6
     
-
     
-
     
2.6
 
 US$
   
7.1
     
8.6
 
 2007
   Foreign financing
   
-
     
23.6
     
-
     
-
     
-
     
-
     
23.6
 
 US$ + LIBOR
   
2.0
     
2.0
 
 2009
   Financings for Property Plant and Equipment
   
-
     
22.7
     
-
     
-
     
-
     
-
     
22.7
 
 MX$ + TIIE (*)
   
1.1
     
2.0
 
 2009 to 2014
   Financings for Property Plant and Equipment
   
-
     
-
     
-
     
3.2
     
-
     
-
     
3.2
 
 US$ + LIBOR
   
1.5
     
1.8
 
 2009
   Import Financing (REFINIMP)
   
-
     
-
     
-
     
2.0
     
-
     
-
     
2.0
 
 US$
   
6.8
     
6.8
 
 2007
   Import Financing (FINIMP)
   
-
     
-
     
-
     
-
     
5.2
     
-
     
5.2
 
 US$ + LIBOR
   
0.2
     
0.2
 
 2007
   Advances on Foreign Exchange Contracts
   
-
     
31.7
     
-
     
5.1
     
-
     
-
     
36.8
 
 US$
   
5.2
     
6.2
 
 < 149 days
   National Bank for Economic
   
5.8
     
0.3
     
2.4
     
0.5
     
-
     
-
     
9.0
 
 UMBNDES(*)
   
4.5
     
10.4
 
 2007 to 2011
and Social Development - BNDES
   
4.9
     
4.6
     
1.1
     
-
     
-
     
-
     
10.6
 
 US$
   
7.7
     
10.8
 
 2010 to 2013
   Export prepayment, net of linked operations
   
-
     
6.7
     
-
     
-
     
-
     
-
     
6.7
 
 US$
   
6.2
     
6.2
 
 2008
                                                                             
Subtotal
   
609.1
     
211.7
     
3.5
     
125.9
     
5.2
     
-
     
955.4
                     
                                                                             
Local Currency
                                                                           
                                                                             
   National Bank for Economic
   
84.8
     
57.8
     
54.0
     
3.1
     
-
     
-
     
199.7
 
 TJLP
   
1.8
     
4.9
 
 2007 to 2013
and Social Development - BNDES
   
-
     
4.7
     
-
     
-
     
-
     
-
     
4.7
 
 IGP-M
   
6.5
     
6.5
 
 2008
   Agency for Financing Machinery and Equipment (FINAME)
   
0.4
     
11.2
     
22.4
     
39.8
     
-
     
-
     
73.8
 
 TJLP
   
2.5
     
5.1
 
 2007 to 2011
   Research and projects financing (FINEP)
   
-
     
67.3
     
-
     
-
     
-
     
-
     
67.3
 
 TJLP
    (2.0 )    
5.0
 
 2009 to 2014
   Debentures
   
-
     
-
     
-
     
-
     
-
     
1,004.8
     
1,004.8
 
 CDI (*)
   
102.5
     
102.5
 
 2008
   Debentures
   
-
     
-
     
-
     
360.5
     
-
     
-
     
360.5
 
 CDI (*)
   
103.8
     
103.8
 
 2011
   Banco do Nordeste do Brasil
   
-
     
44.2
     
-
     
-
     
-
     
-
     
44.2
       
9.8
     
11.5
 
 2018
   Financial institution
   
-
     
-
     
-
     
91.4
     
-
     
-
     
91.4
 
 CDI (*)
   
100.0
     
100.0
 
 2008
   Other
   
-
     
-
     
0.3
     
15.0
     
-
     
-
     
15.3
                     
                                                                             
Subtotal
   
85.2
     
185.2
     
76.7
     
509.8
     
-
     
1,004.8
     
1,861.7
                     
                                                                             
Total
   
694.3
     
396.9
     
80.2
     
635.7
     
5.2
     
1,004.8
     
2,817.1
                     
                                                                             
Composition per Annum
                                                                           
                                                                             
Up to 1 Year
   
30.6
     
201.3
     
24.9
     
51.2
     
5.2
     
1,004.8
     
1,318.0
                     
From 1 to 2 Years
   
29.1
     
45.9
     
24.6
     
333.4
     
-
     
-
     
433.0
                     
From 2 to 3 Years
   
12.1
     
58.6
     
20.0
     
128.4
     
-
     
-
     
219.1
                     
From 3 to 4 Years
   
10.6
     
27.3
     
4.9
     
121.4
     
-
     
-
     
164.2
                     
From 4 to 5 Years
   
10.3
     
20.4
     
4.2
     
1.3
     
-
     
-
     
36.2
                     
Thereafter
   
601.6
     
43.4
     
1.6
     
-
     
-
     
-
     
646.6
                     
                                                                             
Total
   
694.3
     
396.9
     
80.2
     
635.7
     
5.2
     
1,004.8
     
2,817.1
                     

(*) TJLP - Long Term Interest Rate   /   IGPM - Market General Price Index   /   UMBNDES - BNDES Basket of Currencies   /   TIIE - Interbank Interest Rate Even / CDI - interbank deposit rate     
 
   
Balance in June/2007
 
                                 
Ultrapar
   
Ultrapar
 
   
Ultragaz
   
Oxiteno
   
Ultracargo
   
Ipiranga
   
Other
   
Parent Company
   
Consolidated
 
                                           
CASH AND LONG TERM INVESTIMENTS
   
81.4
     
1,128.7
     
60.0
     
301.0
     
1.7
     
68.0
     
1,640.8
 
                                                         
 
 
 
- 22 -

 
Investors will be able to obtain copies of the offering document and other documents from the SEC's Public Reference Room at 450 Fifth Street N.W., Washington D.C., 20549. Please call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room. The documents may also be obtained from the website maintained by the SEC at http://www.sec.gov, which contains reports and other information regarding registrants that file electronically with the SEC. In addition, documents (including any exhibits) filed with the SEC by Ultrapar Participações S.A. will be available free of charge from the Investor Relations office of Ultrapar Participações S.A., located at Avenida Brigadeiro Luis Antonio, 1343, 9º Andar São Paulo, SP, Brazil 01317-910, tel: 011-55-11-3177-6695. PLEASE, READ THE DOCUMENTS CAREFULLY BEFORE MAKING A DECISION REGARDING THE MERGER.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.