About Ultrapar Participações

Ultrapar Participações S.A. engages in the gas distribution, fuel distribution and storage businesses. As of December 31, 2022, Ultrapar owned three main businesses: Ipiranga, Ultragaz and Ultracargo. The company has three relevant business segments: Gas Distribution, Fuel Distribution, and Storage. 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 Storage segment (Ultracargo) operates liquid bulk terminals, especially in the Southeast and Northeast regions of Brazil. The Digital Payments segment (Abastece aí) offers digital payments services, combining the ‘abastece aí’ app and the loyalty program ‘Km de Vantagens’. In 2022, Ultrapar has ceased to present abastece aí as a separate segment, due to the small relevance of this business relative to the overall results of the company. Ultragaz When Ultragaz began its operations, it served only the Southeast region of Brazil. Ultragaz operates nationwide in the distribution of both bottled and bulk LPG, including the most highly populated states in Brazil, such as São Paulo, Rio de Janeiro and Bahia; and may sell bottled LPG through independent dealers. Bulk LPG is serviced through Ultragaz own infrastructure. In 1995, Ultragaz introduced its own bobtail trucks system to process small bulk distribution to residential, commercial and industrial segments, and started the process of geographical expansion through the construction of new LPG filling and satellite plants. In 2003, Ultragaz acquired Shell Gás, Royal Dutch Shell plc’s LPG operations in Brazil. With this acquisition, Ultragaz became the Brazilian market leader in LPG, with a 24% share of the Brazilian market on that date. In 2011, Ultragaz acquired Repsol’s LPG distribution business in Brazil. On September 12, 2022, Ultragaz signed an agreement for the acquisition of all shares of Stella, a technology platform founded in 2019 that connects renewable electricity generators and customers through distributed generation, and the transaction closed on October 1, 2022. Stella has been part of UVC’s portfolio (Ultrapar's Corporate Venture Capital fund) since 2021. This acquisition marked Ultragaz entry into the electricity segment, in line with its strategy of expanding its offering of energy solutions to its customers, leveraging on its capillarity, commercial strength, the Ultragaz brand and its extensive base of industrial and residential customers. Additionally, on November 21, 2022, Ultragaz signed an agreement for the acquisition of all shares of NEOgás, a pioneer in the transportation of compressed natural gas in Brazil, operating in several segments, including the industrial, vehicular and development of special projects in partnership with natural gas distributors. The transaction was approved by CADE in January 2023 and closed on February 1, 2023. This acquisition marks Ultragaz's entry into the compressed natural gas distribution segment and, in addition, Ultragaz believes that NEOgás is an ideal platform to enable biomethane distribution opportunities. This transaction reinforces Ultragaz’s strategy of expanding its offering of energy solutions to its industrial customers, making use of its capillarity, commercial strength and brand. Ultracargo Ultracargo is the largest independent provider of liquid bulk storage in Brazil. In 2005, Ultracargo started up a new terminal in Santos, in the state of São Paulo, its second port terminal, that integrates road, rail and maritime transportation systems. In 2008, Ultracargo acquired 100% of the shares of União Terminais held by Unipar, with port terminals in Santos and Rio de Janeiro, in the state of Rio de Janeiro. The combination of its operations with those of União Terminais doubled the size of Ultracargo’s results and made it the largest liquid bulk storage company in Brazil, strengthening its operating scale. With this acquisition, Ultracargo increased its presence in the port of Santos, the largest Brazilian port, and was strategically positioned in the port of Rio de Janeiro, where the company did not previously have operations. Also in 2008, Ultracargo acquired the 50% stake held by Unipar in União Vopak total capital stock, the owner of a port terminal in Paranaguá, in the state of Paraná, representing 28 thousand m³ of static capacity. In 2022, Ultracargo decided to discontinue its operations in Paranaguá and, as of the date of this annual report, the demobilization process of the storage capacity at this terminal is ongoing. In 2009, Ultracargo acquired Puma Storage do Brasil Ltda., a storage terminal for liquid bulk located at the port of Suape, in the state of Pernambuco. In 2012, Ultracargo acquired Temmar from Temmar Netherlands B.V. and Noble Netherlands B.V., subsidiaries of Noble Group. Temmar owned a terminal in the port of Itaqui, in the state of Maranhão. In March 2018, Ultracargo Logística acquired all shares of TEAS, owned by Raízen Energia S.A. and Raízen Araraquara Açúcar e Álcool Ltda., whose assets had already been operated by Ultracargo Logística in the port of Santos. In April 2019, Ultracargo won the concession of the area VDC12 at the Vila do Conde port, in Barcarena, state of Pará, with a minimum storage capacity of 59 thousand m³. The area will be operated by Ultracargo for at least 25 years. In December 2021, Ultracargo started its operations at this new terminal, with a total storage capacity of 110 thousand m³. The new terminal is in a region that is strategic for Ultracargo since it is the only provider of storage services for liquid bulk at this port. In April 2021, Ultracargo won the concession of the IQI13 area in the Itaqui port, for storage and handling of liquid bulk products, especially fuels. The minimum installed capacity will be 79 thousand m³. The area will be operated by Ultracargo for at least 20 years, according to the auction notice. Ultracargo expects to start operating in this area by 2026. Throughout 2021, Ultracargo also completed the phase 3 expansion at the Itaqui terminal, which increased Ultracargo’s total capacity by 46 thousand m³, resulting in a total capacity of 155 thousand m³ in this terminal. Ipiranga In 2007, Ultrapar, Petrobras and Braskem announced their intent to acquire the Ipiranga Group. After the completion of the acquisition of Ipiranga Group, its businesses were divided among Petrobras, Ultrapar and Braskem. Ultrapar retained the fuel and lubricant distribution businesses located in the South and Southeast regions of Brazil and a one-third stake in RPR; Petrobras received the fuel and lubricant distribution businesses located in the North, Northeast and Midwest regions of Brazil; Petrobras and Braskem received the Petrochemical Business, in the proportion of 60% for Braskem and 40% for Petrobras. Following the acquisition, Ultrapar, which was already Brazil’s largest LPG distributor, became the second largest fuel distributor in the country, with a 14% market share in 2007. In 2008, Ipiranga entered into a sale and purchase agreement with Chevron for the acquisition of 100% of the shares of CBL and Galena. The combination with Texaco created a nationwide fuel distribution business, strengthening its competitiveness through a larger operational scale. By the end of 2012, Ipiranga had converted all the acquired Texaco branded stations into the Ipiranga brand. In 2010, Ipiranga acquired 100% of the shares of DNP. DNP distributed fuels in the states of Amazonas, RondÔnia, Roraima, Acre, Pará and Mato Grosso, with 4% market share in 2009 in the North of Brazil. In 2012, Ipiranga entered into the segment of electronic toll and parking payment with Odebrecht by creating a company named ConectCar. In June 2021, Ultrapar signed a share purchase agreement for the sale of its equity interest in ConectCar (50% of ConectCar’s shares), through its subsidiary Ipiranga, to Porto Seguro, through its subsidiary Portoseg S.A. The sale was closed on October 1, 2021. In 2016, Ipiranga entered into an association agreement with Chevron to create a new company in the lubricants business, Iconic, of which Ipiranga and Chevron hold 56% and 44%, respectively. Operations commenced in December 2017. Ipiranga’s AmPm Convenience Stores The first AmPm convenience stores in Brazil were established in 1993 at the Atlantic’s service stations, whose national operation was acquired by Ipiranga in that same year. In 2012, Ipiranga acquired the AmPm brand and its right of use in Brazil. In 2008, Ipiranga started its first AmPm bakery operation. As of December 31, 2022, the company had 762 bakeries operating within Ipiranga’s AmPm convenience stores. Since 2013, AmPm has its own supply structure (AmPm Suprimentos), which has four distribution centers in the states of Rio de Janeiro, São Paulo, Rio Grande do Sul and Paraná. This initiative aims to streamline AmPm operations, improve the franchisees’ competitiveness and ensure a higher quality product assortment, creating value for clients and franchisees. In 2019, AmPm was separated from Ipiranga and became a standalone business unit, in order to strengthen its network, promote greater agility and increase the company’s profitability. AmPm follows Ipiranga’s complete offering strategy, but with a totally separate organizational structure, which includes a management team fully dedicated to AmPm, the implementation of specialized retail systems, the internalization of key business processes and an exclusive advisory board for AmPm. Also in 2019, AmPm started its company-operated stores, which serves as a laboratory for the continuous development of the franchise model, acting as a reference of operational excellence for franchisees, increasing their engagement to the business and ensuring the application of operational standards established by the franchisor. In December 2022, AmPm had 229 company-operated stores. In 2020, AmPm launched its new store concept, which allows the consumer to have a more fluid experience at the stores, focusing on food service. The new concept provides consumers with a more intuitive and intelligent shopping experience in a nicer and cozier environment. The new model has a comprehensive digital services package which is offered on the main marketplaces in Brazil, in the delivery applications, abastece aí and WhatsApp, and in other company-operated stores solutions. In December 2022, AmPm had 300 stores using the new concept, of which 101 are company-operated stores and 199 are franchises. AmPm is part of Ipiranga's complete offering strategy, which brings together all synergistic businesses. abastece aí In July 2020, Ultrapar announced the creation of a business in the digital payment segment, combining the abastece aí app and the loyalty program Km de Vantagens. The application also offers discounts and cashback at a growing network of retail partners. This initiative is designed to accelerate the value creation of these platforms and the expansion of the services provided, with the potential for creating a digital ecosystem of sizeable proportions and capillarity. As a result of this initiative, the abastece aí app and the Km de Vantagens program became a subsidiary of Ultrapar, that operates under the brand abastece aí. In 2022, Ultrapar has ceased to present abastece aí as a separate segment, due to the small relevance of this business relative to the overall results of the company. Discontinued Operations Oxiteno As of April 1, 2022, Oxiteno was a multinational producer of surfactants and specialty chemicals in the Americas. Prior to its sale to Indorama, described below, Oxiteno was a wholly-owned subsidiary of the company and had eleven industrial units across Brazil, the United States, Mexico and Uruguay, in addition to research and development centers and commercial offices in the Americas, Europe and Asia. As part of the review of the company’s business portfolio aimed at streamlining and expanding the company’s business operations within the energy and infrastructure sectors in Brazil, through Ipiranga, Ultragaz and Ultracargo, the company decided to sell Oxiteno. In August 2021, the company announced the signing of a share purchase agreement for the sale of all shares of Oxiteno to Indorama and, on April 1, 2022, the transaction was closed. Extrafarma In May 2021, Ultrapar entered into a share purchase agreement for the sale of all shares of Extrafarma to Pague Menos and, on August 1, 2022, the transaction was closed. NEOgás On November 21, 2022, Ultrapar through its subsidiary Ultragaz, signed an agreement for the acquisition of all shares of NEOgás. The transaction was approved by CADE in January 2023 and was closed on February 1, 2023. Acquisitions On April 19, 2023, Ultracargo signed an agreement for the acquisition of a 50% stake in Opla, held by Copersucar S.A. Strategies The company’s strategies are to streamline its business portfolio and further invest in the energy and infrastructure sectors in Brazil; build on the strength of the company’s brands; invest in building a succession pipeline for key leadership positions; maintain a strong relationship with the company’s resellers in the LPG and fuel distribution businesses; invest in logistics infrastructure in certain regions to expand the company’s market share and efficiency in fuel distribution; promote and benefit from the formalization of the fuel distribution market; invest in niche segments for LPG distribution; and expand the company’s bulk storage capacity while maintaining operational efficiency. Ultragaz As of December 31, 2022, Ultragaz was the leading company in the Brazilian bulk LPG market and the second largest in total volumes, according to ANP. Founded in 1937, Ultragaz was the first LPG distributor in Brazil, when wood stoves and, to a lesser extent, alcohol, kerosene and coal stoves were used. Ultragaz is consisted of the following operating subsidiaries: Cia Ultragaz, which comprises: Ultragaz, the company that pioneered the company’s LPG operations; Bahiana, which primarily operates in the Northeast region of Brazil; Utingás, a storage services provider that operates two facilities in São Paulo and Paraná. Utingás was incorporated in 1967 when Ultragaz and other LPG distributors joined to construct LPG storage facilities based in the states of São Paulo and Paraná. Ultragaz indirectly owns 57% of Utingás; and Ultragaz Energia, a company that aims to provide other types of energy beyond LPG, which comprises: Stella, a technology platform that connects renewable electricity generators and customers through distributed generation. It is an alternative for low voltage consumers to access lower energy prices. Furthermore, on February 1, 2023, Ultragaz closed the acquisition of all shares of NEOgás. This acquisition marks Ultragaz's entry into the compressed natural gas distribution segment and, in addition, Ultragaz believes that NEOgás is an ideal platform to enable biomethane distribution opportunities. This transaction reinforces Ultragaz’s strategy of expanding the energy solutions it offers to its industrial customers, making use of its capillarity, commercial strength and brand. Markets and Marketing: When Ultragaz began its operations, it served only the Southeast region of Brazil. Ultragaz is present in almost all of Brazil’s significant population centers. Ultragaz’s bulk sales include large industrial clients, such as companies in the food, metallurgical, steel and home and personal care sectors. In the case of large volume consumers, Ultragaz is competing with other highly competitive energy sources, such as natural gas, diesel, wood, fuel oil and electricity. Ultragaz’s strategy for the bulk LPG distribution is to continue its process of product and service innovation. Ultragaz has a team to identify the needs of each bulk LPG client and to develop technical solutions for using LPG as an energy source. Furthermore, in 2015, Ultragaz started operating under a new concept for the small and medium business clients, named Ultrapronto. As an innovative concept in the LPG industry, Ultrapronto represents a more agile and complete service to the client, including prospecting of clients, setup of equipment, logistics and after-sale services. Ultragaz has been developing new technologies for different markets, such as industrial, agribusiness, small and medium businesses, residential buildings, and household customers. For segments, such as the industrial laundries, Ultragaz has developed a new system to control the whole seed drying process using Internet of Things (IoT) to optimize LPG consumption. Ultragaz has also expanded LPG uses portfolio to agribusiness, such as a solution for grain and seed drying, increasing productivity. Finally, tracking consumption trends in the bulk segment, Ultragaz has created a food recycler solution, which converts 80% of a typical restaurant waste into fertilizer through a fully automated process. In May 2021, Ultragaz launched its new brand image. The new visual identity addressed its purpose of contributing to changing people’s lives. With an eye to the future, and in the spirit of its new motto ‘Somando energias’ (Combining energies), Ultragaz is employing its vast experience together with technology to create energy solutions that focus on its customers’ needs, helping them to better manage the energy usage in their homes and businesses. Contracts: Ultragaz supplies its bulk clients based on contracts with terms ranging typically from two to five years. The contract also requires that any tank supplied by Ultragaz may only be filled up with LPG delivered by the company. By having customers in contract, Ultragaz is able to build a closer relationship and identify opportunities for expanding the consumption of LPG and for energy transition. Distribution Infrastructure: Ultragaz’s distribution strategy includes having its own infrastructure for bulk LPG, given that the proximity to customers is a significant success factor. Ultragaz also maintains a large independent reseller network for bottled LPG. Deliveries for both bottled and bulk LPG are made by a staff wearing Ultragaz uniforms and driving vehicles with Ultragaz’s logo. Ultragaz has also invested in information technology for improving its process, such as logistics optimization and production efficiency, and has established a partnership to produce electric tricycles, which will be offered to Ultragaz’s resellers for delivering LPG to the end customer, thus contributing to the reduction of GHG. Ultragaz delivers bottled LPG, using a distribution network, which included 5.8 thousand independent resellers and a fleet of 111 vehicles for the delivery of gas bottles and 304 vehicles for bulk delivery as of December 31, 2022. Bottled sales capacity derives from the number of bottles bearing Ultragaz’s brands. As of December 31, 2022, there were 25.0 million 13 kg bottles stamped with Ultragaz’s brands in the market. Independent Resellers. Ultragaz’s independent distribution network ranges from large resellers, which carry out extensive home deliveries, to single retail stores, which sell small quantities of LPG bottles. ANP Resolution 51/16, as amended, sets that the independent resellers must be registered with ANP and comply with a list of prerequisites, as well as those required by law for the storage of bottles up to 90 kg. Also, each municipality sets forth its own safety regulations, including a minimum distance from certain locations, such as schools. For the year ended December 31, 2022, 96% of Ultragaz’s bottled LPG sales were made through resellers. The agreements entered between Ultragaz and independent resellers require the use of the Ultragaz brand and the display of the Ultragaz logo in the delivery vehicles and on the uniforms worn by delivery personnel. Proprietary rights of the trademark and the logo are retained by Ultragaz and are duly registered with INPI – Instituto Nacional de Propriedade Industrial (the National Institute of Industrial Property). All contracted resellers are Ultragaz’s exclusive representatives. Under the terms of the respective contracts, each dealer agrees not to deliver non-Ultragaz LPG bottles. In 2020, Ultragaz created a digital relationship channel with its resellers called MAP – Meu Aplicativo Parceiro (my partner app), which has 6 thousand connected partners. In this app resellers have access to resources that improve their work process. Through MAP, the reseller also accesses a marketplace platform, namely Portal Ultragaz, where they can purchase several items. In 2020, Ultragaz also developed the Amigu app, the company’s last-mile tool that identifies the closest Ultragaz’s delivery person to the customer location. The app has more than 10 thousand downloads with deliverymen connected in more than 900 cities across Brazil. Distribution channels to bulk consumers. Bulk distribution is made directly to customers by delivering LPG to storage tanks located at customers' facilities. Both large and small bulk distribution are mainly made by bobtail trucks and, in some cases, third-party tanker trucks. Ultragaz has improved the digitization of its processes and sales channels by offering an omnichannel solution to customers. This digital service channel offers greater security, transparency, and agility in service. Ultragaz’s logistics strategy is also focused on the customer journey. The investments in routing systems, demand planning and last-mile solutions are intended to provide high-level delivery and information services to the client. In addition to improving the customer experience, Ultragaz raises its own operational efficiency. Payment terms. Ultragaz’s sales through its retail stores and through home delivery are made mainly on a cash basis. Ultragaz’s sales to independent resellers and to industrial and commercial users have payment terms of 18 days on average. Supply of LPG: The main LPG supplier to Ultragaz is Petrobras. In 2019, Petrobras entered into an agreement with CADE aimed at promoting the competition in the natural gas market in Brazil, including the sale of shareholdings in companies operating thereof as a means of encouraging the entry of new players into the LPG supply network. In 2022, 14% of Ultragaz’s overall supply needs were met by private suppliers, other than Petrobras. Storage of LPG. On December 31, 2022, Ultragaz’s storage capacity was approximately 20.8 thousand tons, including Utingás’ storage capacity. Based on its 2022 average LPG sales, Ultragaz could store approximately 3.7 days of LPG supply. Ultragaz stores its LPG in large tanks at each of its filling plants located throughout the regions in which it operates. Primary filling plants receive LPG directly from refineries and processing units by pipeline; secondary filling plants are supplied by truck; and satellite plants primarily hold LPG which is used to fill bob-tail trucks for small bulk distribution to customers that are not located near a primary or secondary filling plant. Competition: Ultragaz’s main competitors are Copa Energia, a group created in 2021 that owns the LPG distributors Liquigás and Copagaz; Nacional Gás, a Brazilian LPG distributor, which has been present in the market for more than 60 years; and Supergasbrás, a company controlled by SHV Energy (a major multinational LPG distributor), formed by the merger of Minasgás S.A. and Supergasbrás S.A. Ultracargo Ultracargo is the largest private provider of liquid bulk storage in Brazil. The company stores and handles liquid bulk, mainly fuels, ethanol, chemicals, corrosives and vegetable oils. Through its multipurpose terminals, Ultracargo operates a wide range of products, which allows it to meet the needs of different clients. Besides other skills that allow Ultracargo to efficiently operate multipurpose terminals, the company has an important operational know-how concerning proper coating and cooling temperatures of its tanks in order to avoid chemical reactions that could affect the safety of the terminals. Ultracargo also offers ship loading and unloading services, operation of pipelines, logistics programming and installation engineering. Ultracargo operates with a diversified portfolio of clients and long-term contracts. Ultracargo’s ten largest clients accounted for 69% of its revenues in 2022, with its three largest clients, Ipiranga (a related party), Vibra and Braskem, accounting for 17%, 11% and 11% of Ultracargo’s revenues, respectively. Terminal Infrastructure: As of December 31, 2022, Ultracargo operated 6 terminals, along the Brazilian coast, with a total capacity of 955 thousand m³. Ultracargo’s strategic location of its operations, close to the main Brazilian port terminals, railroad junctions and roads, is one of the company’s main strengths and a key driver for integrated services profitability. Ultracargo’s history is one of pioneering logistics solutions in the Brazilian market. Storage Facilities. Ultracargo primarily provides storage services for liquid bulk, especially fuels, ethanol, chemicals, corrosives and vegetable oils. In 2022, Ultracargo decided to discontinue its operations in Paranaguá and, as of the date of this annual report, the demobilization process of the storage capacity of Paranaguá terminal is underway. Competition Ultracargo’s main competitors are Cattalini, which is the largest liquid bulk operator in Paranaguá port, with 610 thousand m³ of storage capacity; Ageo, which is the largest liquid bulk operator in Santos port, with 510 thousand m³ of storage capacity; and Vopak, which is one of the world leaders in tank storage. Vopak operates terminals in Santos and Aratu. Environmental, Health and Safety Standards Ultracargo is in compliance with international standards as ISO 9001, ISO 14001 and ISO 45001. Ipiranga’s Betim terminal has ISO 9001, ISO 14001 and ISO 45001 certifications. Ipiranga Ipiranga was established in 1937 and is one of the largest fuel distributors in Brazil, according to ANP, with 18.4% market share in 2022 in terms of diesel, gasoline, and ethanol sales volume. Ipiranga distributes diesel, gasoline, ethanol, NGV, fuel oil, kerosene, ARLA 32 (liquid agent to reduce nitrogen oxides emissions from heavy vehicles), lubricants, and greases nationwide through its network of 6,771 service stations and 88 storage terminals as of December 31, 2022. Ipiranga has implemented a differentiation strategy by offering a broad range of products and services throughout its service station network. This strategy has led to the development of a convenience store business, branded AmPm, as well as lubricant servicing businesses, Jet Oil and the consolidation of other related products and services. Ipiranga’s fuel distribution Ipiranga operates in the retail segment of the fuel distribution market through a network of service stations operating under the Ipiranga brand throughout Brazil and, to a significantly lesser extent, through spot sales to un-branded (white flag) service stations. Sales volumes from the service stations network accounted for 76% of Ipiranga’s total sales in 2022. Ipiranga also operates in the business-to-business (B2B) segment with almost 7 thousand customers, such as state and municipal governments, industries, and cargo and passenger transportation fleet owners. Distribution to B2B accounted for 24% of Ipiranga's sales in 2022. Network of service stations. Responsible for 76% of total sales in 2022, the retail segment of the fuel distribution market had, as of December 31, 2022, a network of 6,771 service stations operating under the Ipiranga brand throughout Brazil, of which 772 were located on land owned by or leased to Ipiranga, while 5,999 were located on lands owned by third parties. In 2022, 90% of these stations were in urban areas, whereas the remaining 10% were on highways. B2B – Business to business. Ipiranga operates in the B2B segment with almost 7 thousand clients, such as state and municipal governments, industries and cargo and passenger transportation fleet owners, TRRs and others. In 2022, Ipiranga’s ten largest clients in B2B segment accounted for 18% of its revenues and no single customer accounted for more than 4%. Distribution to B2B represented 24% of Ipiranga’s sales in 2022. Ipiranga has implemented a differentiation strategy in the B2B segment, offering a variety of premium products and technological services to provide better customer experience and promote customer retention. Ipiranga’s goal is to continue to develop new products and services to meet the needs of its B2B clients in the various segments in which it operates and become the first choice of corporative consumers. To achieve this, Ipiranga’s B2B team relies on a group of highly skilled and experienced professionals dedicated to multiple projects designed to provide new solutions to the B2B market. Supply of fuels. Ipiranga purchase most oil-derivative fuels from Petrobras under a formal supply contract that establishes the volume and the terms of supply. The contract with Petrobras is renewed annually. Storage of fuels. Ipiranga stores its fuels in large tanks at each of its facilities located throughout the regions in which it operates. Primary facilities receive fuels directly from Petrobras by pipeline and from distilleries by railroad and road transportation, while secondary facilities are supplied by railroad and trucks. AmPm AmPm convenience store is the seventh largest franchise network in the country, with 1,598 stores, a penetration of 24% in the total service stations as of December 31, 2022. Through its AmPm convenience stores, Ipiranga has been developing initiatives to increase product offerings. In 2010, the company announced the launch of private label products, including energy drinks and snacks, and the expansion of the AmPm bakeries, providing to resellers an additional source of income, as well as strengthening the AmPm brand. In 2020, the company expanded the bakery foodservice mix and items related to grocery, home, and personal care categories, following the company’s new product mix management policy. With nationwide presence, the company’s bakeries serve fresh products, such as bread, coffee, snacks, and hot meals through more than 150 items, including AmPm branded products. A convenience store with a bakery has the potential to substantially increase revenues compared to a regular AmPm by offering more products of daily consumption and increasing the flow of costumers in the store. Ipiranga ended 2022 with 762 bakeries. In 2014, Ipiranga launched a new beer purchase experience through its Beer Cave, which is a walk-in refrigerated area that stores more than 100 premium brands of beer. Ipiranga ended 2022 with 407 Beer Caves. In order to strengthen the AmPm convenience stores’ product offerings and operations, Ipiranga launched in 2014 its own supply solution. The AmPm Suprimentos concentrates logistics, sales, and customer service of the convenience store main products in just one structure serving approximately 1.5 thousand stores. This initiative aims to streamline the AmPm convenience store’s operation, increase the competitiveness of franchisees and ensure higher-quality product range and higher standardization of products assortment and availability. This model allows the entry of a wider range of suppliers, who are unable to deliver to each store individually, and eliminates the effort required for franchisees to keep their stores stocked. At the end of 2022, AmPm Suprimentos operated four distribution centers located in Rio de Janeiro, São Paulo, Paraná, and Rio Grande do Sul states, which supply the stores in those states with the main categories of products, except tobacco and ice cream. As of December 31, 2022, AmPm had 300 stores in the new concept, being 101 company-operated stores and 199 franchises. In order to expand the company’s franchise network, the company also started operating its own AmPm stores. AmPm ended 2022 with 229 units and expects to further expand the number of company-operated stores going forward. The company-operated stores have a management model focused on business results, efficient management controls and a specialized team with experience in retail management. The location choices are determined by an expansion committee that analyzes the trade with indicators and decide whether to go ahead with the venue in question. This allows the company to accelerate the expansion of AmPm in a more strategic and secure way with the goal of improving financial return of each business. Jet Oil The Jet Oil business unit, Ipiranga’s lubricant-changing and automotive specialized service network, is the 14º in ABF ranking among all kind of franchises. Jet Oil ended 2022 with 1,134 franchises. More than 7,730 oil changes were made at Jet Oil units per day and 75.4% of the products sold were premium products in 2022. Jet Oil units offer an oil change service that features technology and safety, unifying quality products and expert services. Competition Ipiranga’s main competitors in 2022 were Vibra and Raízen, a joint-venture between Cosan and Shell International Petroleum Company Limited (‘Shell’), a subsidiary of Royal Dutch Shell. igital platform for mobility abastece aí is a digital platform, created in 2020, to leverage the benefits of the loyalty program Km de Vantagens and the abastece aí app that were previously offered by Ipiranga. The company offers a unified ecosystem of advantages and benefits to clients, especially car drivers, integrated with a digital payment solution and great capillarity, including adoption by other business partners outside service stations. Km de Vantagens was created in 2009, pioneering the customer loyalty program within the fuel industry, allowing customers and resellers to redeem rewards and benefits in areas of entertainment, tourism, magazines, airline tickets, car rental, among others. With over 37 milllion participants in December 2022, Km de Vantagens has served as an important platform, strengthening the relationship with Ipiranga’s customers. In 2022, more than 30 million transactions were redeemed at Km de Vantagens. Ipiranga developed and launched abastece aí in 2016, a mobile payment service app, that seeks to maximize advantages from the integration of platforms to offer even greater convenience and benefits to customers. Through the abastece aí app, customers can obtain discounts in exchange for Km de Vantagens points. In addition, they can receive rewards of their preference and finalize the fueling process by using a unique Km de Vantagens password in a safe payment method. In 2022, approximately 1 million digital accounts have been created. Operation abastece aí is a relevant ecosystem of advantages for vehicles’ drivers, integrated with a financial platform that expands the purchasing power of its users. The application offers a varied range of services for its clients, such as: cashbacks on purchases from partner companies, payment of slips, transfers, functions of cash in/cash out on digital wallet and various financial products. The main revenue stream for abastece aí derives from Ipiranga service stations. abastece aí has partnerships with other companies operating in various sectors, such as TAM Linhas Aereas S/A (LATAM), Movida Locação de Veículos S.A., among others. In 2022, the strategy of abastece aí was concentrated around the revenues from the association fee with partner companies, being the main partnership with Ipiranga, operating more than 39 million transactions. Property Ultragaz Ultragaz’s LPG distribution network includes 19 filling plants. Ultragaz also operates storage bases for LPG, known as satellite bases, for supplying the company’s bulk trucks. As of December 31, 2022, Ultragaz had a total storage capacity of 21 thousand tons, including the storage capacity indirectly held through its stake in Utingás. Ipiranga As of December 31, 2022, Ipiranga distributed fuels through 88 storages terminals, which are strategically located to provide fast and efficient delivery of its products. There are two types of storage terminals: primary, which are usually located near the coast and large cities and are supplied by refineries through pipelines, and secondary storage terminals, mainly located inland and supplied by primary storage terminals through railways or road transportation at locations not serviced by railway systems. Large customers and TRRs are also serviced by primary storage terminals. As of December 31, 2022, Ipiranga had 51 primary storage terminals and 37 secondary storage terminals. History Ultrapar Participações S.A. was founded in 1937. The company was incorporated in 1953.