...Good morning! Thank you for waiting. Welcome to Ultrapar's first quarter 2024 results conference call. There is also simultaneous webcast that may be accessed through Ultrapar's website at ri.ultra.com.br and through MZiQ platform. The presentation will be conducted by Mr. Rodrigo Pizzinatto, Ultrapar's Chief Financial and Investor Relations Officer. And in the Q&A session, we will also have Mr. Marcos Lutz, Ultrapar's CEO, and the CEO of the businesses, Mr. Tabajara Bertelli, Mr. Décio Amaral and Mr. Leonardo Linden. We would like to inform you that this event is being recorded, and all participants will be in listen-only mode during the company's presentation. After Ultrapar's remarks are completed, there will be a Q&A session. At that time, further instructions will be given. We would like to remind you that questions will be answered through the Q&A session and may be posted in advance in the webcast. A replay of this call will be available for seven days. Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ultrapar management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events, and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ultrapar and could cause results to differ materially from those expressed in such forward-looking statements. Now, I would like to turn it over to Mr. Rodrigo Pizzinatto, who is going to start our call. Mr. Pizzinatto, you have the floor. Good morning, everyone. It is a pleasure to be here once more to talk about Ultrapar's results. On slide two, I want to highlight that both the earnings release and this presentation consider Ultrapar's data from continuing operations in 2023 and 2024. With the conclusion of the sales of Oxiteno and Extrafarma throughout 2022, Ultrapar's consolidated data since has no longer included the results of these two companies. Moving now to slide three, as you can see in the chart in the upper left side, our recurring EBITDA totaled BRL 1,306 million in the first quarter of 2024, 28% higher than that of the first quarter of 2023. This increase is due to the higher EBITDA of the three main businesses, especially Ipiranga, results that I will detail in the next slides. Ultrapar's net income was BRL 455 million, 66% higher year-over-year, due to the EBITDA growth I've just mentioned and the lower net financial expenses. Investments totaled BRL 438 million in the first quarter of 2024, an increase of 20% year-over-year, mainly as a result of greater investments at Ultracargo. We had an operating cash consumption of BRL 573 million in the first quarter of 2024, BRL 138 million lower than the consumption we had in the first quarter last year, mainly reflecting the higher EBITDA of the businesses and the increase of BRL 265 million in draft discount operations in this first quarter. These effects were attenuated by higher working capital at Ipiranga. Moving now to slide 4 to talk about our liability management. We ended the first quarter with a net debt of BRL 7.8 billion, an increase of BRL 1.7 billion in relation to December 2023. This increase is mainly a consequence of the payment of dividends in March this year and the investment in working capital. We have a seasonal calendar effect in the first quarters, as you can see in the chart, resulting from the bank holiday at the end of the year. Added to this, Ipiranga recorded a higher level of working capital in the first month of 2024, with the effect on prices of tax increases, higher inventories and lower suppliers due to the reduction in imports, which have longer payment terms. Our leverage went from 1.1x in December 2023 to 1.3x in March 2024, due to the higher net debt that I've just mentioned, attenuated by higher EBITDA in the last 12 months. I'd like to point out that the numbers of net debt for the first quarter of 2024 still do not include pending receivables of BRL 964 million related to the sales of Oxiteno and Extrafarma. As you can also see in the table at the bottom of this slide, the net debt in March 2024, added to the draft discount, vendor and pending receivables of Oxiteno and Extrafarma, is BRL 8.4 billion, which is approximately BRL 900 million lower than the balance of the same period last year. Moving now to the next slide, slide number 5, to talk about another good quarter for Ultragaz. The volume of LPG sold in the first quarter was 4% lower year-over-year, due to the 6% reduction in the bottled segment on the back of lower market demand and a more competitive environment after the pass-through of tax increases in the, in some segments. The bulk segment remained stable, with its growth offset by lower sales to condominiums. Ultragaz's SG&A in the first quarter of 2024 was 1% lower than that of the first quarter of 2023, due to initiatives to increase operational efficiency and lower expenses with sales commissions, partially offset by higher personnel expenses, mainly resulting from collective bargaining agreements. Ultragaz EBITDA totaled BRL 401 million in the quarter, 4% above that of the first quarter last year. This growth is explained by initiatives to increase efficiency and productivity implemented in the last quarters, by better sales mix, and by inflation pass-through, despite lower sales volume. For the second quarter, we expect Ultragaz to continue its good operating performance, with EBITDA similar to that of the first quarter, despite seasonally stronger volumes. Moving now to slide 6, to talk about another great result of Ultracargo. The company's average stock capacity was 1,067,000 cubic meters in the first quarter of 2024, a growth of 12% over the first quarter of 2023, due to the capacity additions coming from Opla, Vila do Conde, and Rondonópolis terminals throughout the second half of last year. These capacity additions still had a small impact on this quarter's results, and should begin to gradually contribute to the upcoming months as operations ramp up. The cubic meters sold grew 21% year-over-year, mainly due to greater handling of fuels in Santos, Vila do Conde, and Aratu, and the startup of operations in Opla and Rondonópolis. Ultracargo's net revenues were BRL 263 million in the first quarter of 2024, 11% higher than that of the first quarter of 2023, as a result of the higher cubic meters sold and spot sales. Combined costs and expenses were 8% above that of the first quarter of 2023, as a consequence of higher personnel expenses, legal advisory with contractual renewal, and depreciation in line with the capacity additions. Ultracargo's EBITDA totaled BRL 165 million in the quarter, a 16% growth year-over-year, due to greater capacity occupancy with profitability gains, through spot sales and productivity and efficiency gains, despite higher expenses. EBITDA margin was 63% in this quarter, three percentage points above that of the first quarter of 2023. For the second quarter, we expect Ultracargo to continue its good results, with EBITDA levels close to those seen in the last quarters. To conclude this presentation, moving now to slide 7, let's talk about Ipiranga's results. First, I'd like to draw your attention to a change we made in our report. Abastece Aí, which since the beginning of 2020, had been reported with the results of the holding company and other companies, is again consolidated into Ipiranga's results. To allow comparability between test periods, we added the results of Abastece Aí into Ipiranga's for 2023 as well. On page 3 of the earnings release, we have detailed the composition of these adjustments to allow a complete understanding. About the results, the volumes sold by Ipiranga in the first quarter grew by 2% over the first quarter of 2023, with a 7% growth in the Otto cycle, driven by greater share of ethanol in the product mix, partially offset by a 3% decrease in diesel. We ended the first quarter with a network of 5,881 service stations, 4 more than in December 2023. A total of 55 service stations were added to the network, and 51 were closed during the quarter. Furthermore, we ended the quarter with 1,532 AmPm stores, with same-store sales growth of 6% in the first quarter. Ipiranga's SG&A increased by 5% over the first quarter of 2023, due to higher personnel expenses, mainly increased headcount and collective bargaining agreement, and provisions for doubtful accounts. These effects were partially offset by lower expenses with contingencies provisions. The other operating results line totaled -BRL 165 million in the quarter, a worsening of BRL 26 million year-over-year, as a result of higher costs with carbon tax credits. The line of results from the disposal of assets totaled positive BRL 36 million, resulting from the sale of eight real estate assets. Ipiranga's EBITDA totaled BRL 819 million in the quarter. Recurring EBITDA totaled BRL 783 million, 48% higher year-over-year. The higher EBITDA reflects better margins, mainly due to commercial environment normalization and inventory gains in the first quarter of 2024, despite three negative effects: The higher level of inventories in the sector due to distribution companies positioning for the planned tax increases in the first month of the year, due to tax distortions, with the emphasis on the Amapá tax benefit, which was revoked last April, and irregularities in the biodiesel mixture, which had a share increase from 10% to 14% in the mix in the last 12 months. For the second quarter, we do not anticipate significant inventory gains. On the other hand, we expect the normalization of the inventory levels in the sector and the reduction of the effect of tax distortions in Amapá. Therefore, we expect a profitability similar to that of the first quarter. With that, I now conclude my presentation, and I appreciate your, your interest and attention. Let's now move on to the Q&A session to answer your, your questions. Thank you. We are going to start now the question and answer session for investors and analysts. The first question comes from Monique Greco, Itaú BBA. Ms. Greco, please. Hello, good morning. Hello, everyone. Thank you very much for the opportunity to ask a question, and I have two questions. ...The first one concerns Ipiranga. In the webcast of the previous quarter, you indicated that you expected Ipiranga to reach margins aligned with the recurring margins of 2023, but the results were below what was expected. Pizzinatto has just highlighted that it was a quarter with higher inventory levels and competition due to irregularities and tax discrepancies. But despite these reasons, to what extent do you think that the limited opportunities of trading may also have contributed to results below what was expected? The second question is the following: Could you please share with us, I know it's early, but could you please share us more about the impact of everything that's happening with the floods in the south of Brazil, especially with Ipiranga and Ultragaz? And what kind of impact are you anticipating for upcoming months because of the floods in the south of Brazil? Thank you. Hi, Monique. This is Linden speaking. Let me tell you about the whole quarter. Arbitrage started in January at break-even levels, and gradually it was closing. It was somewhat closed by the end, but at the same time, despite it, the diesel market had an excess supply for two reasons. First, because there was a perspective of gaining inventory with all the difference in taxes in January and February. So everyone increased their inventory levels for a quarter that normally, as part of the season, is slower or is slower. And in the first quarter, there was the adversity, which was widely discussed, which was the special regime at Amapá, which meant BRL 930 per square meter loss. That was inventory levels adjustment. It was expected, but not Amapá. Amapá, we didn't expect that tax discrepancies to be present, and it has impacted our margin forecast. Because ultimately, we had to really support and be able to compete. That impact on the tax exemption impacted our stations. Very important stations have lost volume and margins. So to preserve businesses, especially our own contracts with service stations, we've brought down our margins, maintaining volume levels. And that was the right decision, in my opinion, because if you analyze the first quarter over the first quarter of 2024, we can see a volume gain of 2%, and very little impact in terms of market share. Therefore, it was a strategy to maintain our business. Now, concerning opportunities of trading gain, I wouldn't say we have anything there. It's an important means to us. It has helped us, and we are going to carry on with the same strategy, with the same beliefs about how trading can help us in our businesses. Now, concerning the south of Brazil, the material impact over Ipiranga is not relevant, but this is not a material discussion, a discussion about relevance. I would like to emphasize, and normally we have a high participation, I would like to say that Ipiranga, that's where Rio Grande do Sul is where Ipiranga started. Ipiranga is fully involved in the process of providing support to the population from the region, making donation, fuel, water, food, being part of some rescue activities. Today, we've set up a new logistic to support physicians to take them to Rio Grande do Sul, carrying medications and other extremely needed goods. We are also working with NGO Ação da Cidadania, and everyone is invited to make a donation, and then Ipiranga matches what is donated by the population. There is a link in Ipiranga's Instagram, in my own personal account. Just click, and I know I can count on everyone's collaboration. The state needs help, and the sooner they can resume their lives, their activities in the state, the better to everyone, and this is what we should all focus on. Great, Linden, thank you very much for your detailed answer, and congrats on your initiatives there in the region. Thank you. The next question comes from Luiz Carvalho, UBS. Hello. Thank you very much for taking my question. I have two quick questions. First, to Lutz. We've been emphasizing that strategy of capital allocation of the company. You've had a very good turnaround in the main businesses of the company, and maybe now you can give us some more details about the recent acquisition of a stake in Hidrovias do Brasil, part of the interest of Hidrovias do Brasil. So tell us what you expect in terms of synergy, return on investment. What are the main metrics that should be considered when trying to understand the investment in Hidrovias? I would like to hear more about other opportunities as well. The deal of Hidrovias does not impact the leverage of the company, and you have a very comfortable indebtedness level. Secondly, concerning Ultragaz, we've seen a recovery of the whole industry, especially with the privatization of Liquigás. But speaking with other players in the area, we've seen some reduction of prices. You've said that the ROIC of new entrants would be lower and limiting interested parties. I would like to understand, how are you understanding that ROIC dynamics for Ultragaz? Is it at the same level as we've been observing, or do you expect it to be reduced? Thank you. Concerning Hidrovias, we've been as part of the process of increasing our shares, getting to a maximum of 40%. The asset has a number of market opportunities in our opinion. There is a synergy of knowledge, which is very relevant for Ipiranga, for Ultracargo. The North Region transportation is very relevant, and the area will probably increase, really using that crop and off-crop period in Mato Grosso. So we think the investment has been very positive. As I've told you before, I don't... Hidrovias has a model where they grow in scale and operationally, and I believe we can help a lot. As it's a publicly traded company, I don't think it's on us to make any comments. They would make comments when the right time comes. Let me now hand it over to Tabajara to make the comments about Ultragaz. Thank you for the question. In our opinion, we've maintained the strategy, still operating in the segments that we've prioritized, working on operational efficiency. The market has a number of cycles. We want to be closer to our clients, developing our network of resellers. We are expanding our network of resellers. There are situations going on in the market, as you've pointed out, but I think that we are on the right track, focusing on customers and relationships with the network, and we can see strengthening of commercial relationship and expansion of that in upcoming years. This is the best strategy to us. Great, thank you. If I could go back, Lutz. In this level of leverage, do you expect to mature the investment of Hidrovias, or are you already open for other opportunities concerning your level of leverage of the company? We want to expect and develop further the investment of Hidrovias, but we are also open to other opportunities. Thank you. The next question comes from Gabriel Barra, Citi. Thank you for taking my questions. There are two important points which are follow-ups to some extent of the previous questions. First, about Ultragaz. We've seen lower volumes in bottled operations, and based on what Pizzinatto has said about the dynamic for the next quarter, maybe there are going to be higher volumes with stable results. That would be in line and similar to the previous quarter. So I'd like to understand, in the mid and long term, are there any initiatives that will get more matured throughout the years? What can we expect in terms of volume and margins looking ahead? In recent conference calls, and Tabajara has said that maybe we shouldn't expect such high margins as we've had in previous years. But what can we anticipate for 2025, 2026? Now, thinking about Ipiranga, and going back to the first question we had today, I recall Pizzinatto talking about the margins in the end of February, thinking about margins aligned with the average of the year. But the negative impact, it was all concentrated in March, a month where there was not that much visibility. And this is why I decided to ask you. Amapá was one of the main detractors of margins in the quarter, and there was just most of the month of April has also been under the effect, until finally, the injunction was passed in the court. So can you tell us something about the margins in the beginning of this next quarter? How are you doing with that? I think the dynamics now is much better than what used to be in the past, but what can you anticipate in terms of short term and also mid-term? Thank you. This is Tabajara speaking. Based on what I've said before, we have the same strategic view. We have long-term initiatives. You mentioned one, capturing financial efficiency. We've met exactly what we have planned. But there is still room every single quarter to expand further. In terms of profitability, we can see a gradual improvement. But in upcoming years, we believe we can go deeper and build something else in the long term. There is huge potential for the company, in our opinion. You are right. March was the worst month, says Linden. There was an impact in January and February, but things got worse in March. And yes, it invaded the month of April until that special tax regime was revoked. We expect now a natural recovery once it's over. Thank you. The next question comes from Vicente Falanga, Bradesco. Hello, good morning. Thank you for taking my question. I would like to insist once again on Ultragaz market. You've mentioned in the release that the competitive environment is somewhat tougher. Is there anything that concerns you? Has there been some players acting not very rationally? Have you lost market share, and if yes, how are you planning to recover that? Is it only price? Are you going to do anything else? This is the topic that I would like to hear more from. And finally, about ethanol, which is part now of the tax reform. It's going to go into effect as of 2027. Do you believe that it can be anticipated to some extent? Because this is a mechanism that have been considered for a while, and it would be somewhat simple, to implement. Let me start with Ultragaz, especially about the quarter. In our opinion, it was a competitive quarter. There were some problems of taxes that has led to price increases in the market. We see increased competitiveness, especially in the bottled segment. We still maintain our strategy of strengthening and protecting our network. We are expanding our network of resellers, having a stronger network, and we want to really expand it to be more and more competitive. And also a progression in operational efficiency. If we have a strong position in the bottled area and expanded network, we can keep on competing at good level. The last point about that monophasic tax understanding. It has proved to be very effective, improving tax rate, improving competition and everything. Now, the industry is considering that it makes sense, and just expand that to hydrated ethanol. And that makes sense to, all players, the government, manufacturers, distributors, everyone. What I can tell you is that there are some discussions of possibly anticipating that having a unified system for the whole process. In the field, there is a difference at what level the taxes are collected. If it's at the consumption level or at the consumption point. These are just technical issues, but as it's part of the tax reform, it's going to go into effect anyway. It does make sense to possibly anticipate that. We believe that's going to happen. Thank you. The next question comes from Bruno Montanari of Morgan Stanley. Please go ahead. Hello, good morning. Thank you for taking my questions. First, level of inventory, especially for diesel. Into the end of the quarter, do you expect to have inventory levels within your expected range and then be able to really compare things around there? We've been hearing from different players about the importance of agribusiness, and Ultragaz was one of the first players to focus on this industry. In your opinion, where can you really get differentiated concerning agribusiness and other business? How can you really stand out and set apart? What are the strengths that can really provide you an opportunity to really surf the wave expressly and successfully? Thank you. Well, Bruno, the inventory levels are going down. Compared to the peak, there has been a decrease towards what would be a normal level. And yes, we believe that by the end of the quarter, these levels will be within the normal range. In a macro perspective, says Lutz, everyone says that agribusiness is more resilient. It goes through economic crisis. It does not depend on domestic GDP. Agribusiness is top. Our investments in Hidrovias, of course, means we want to have stronger links with agribusiness, but all companies have some strategies focused to all industries, but also with agribusiness. Ultracargo of going into fuel and terminals in the countryside area, serving provision of LLL, which is an Ipiranga company that provides really services to agribusiness, which has developed great customers and created very good relationships with large operators in the Center-West. Ultragaz has done a number of works in grain drying and others, bringing efficiency, low cost in regions that are historically involved with agribusiness. There is no silver bullet there, of course. Well, I can simply do it and everything will become just a company focused on agribusiness. No, of course not. I wouldn't say there is not one single sentence to sum up our strategy. Thank you, Lutz and Linden. Thank you for your answers. The next question is by Leonardo Marcondes, Bank of America. Hello, good morning. Thank you for taking my question. The first question concerns Ipiranga margins, and I apologize, Leonardo, but the margins of the second quarter will be similar to those of the first quarter. Did I get that right? But it will be a healthier landscape, so to speak, right? Because of the revocation of the special regime in Amapá and because of the market at large. Can you tell us a bit more about that? Have you seen any other factors pressing down margins in the quarter? The second question concerns your branded units. Your liberation strategy ended in the end of last year. So how are you thinking about these new branded stations? Do you expect it to be about 5,900 stations, or would you like to get any higher share in this area? Well, yes, we expect to have similar margins in the second quarter because there is no gain in inventory. Even by improving the environment, there is not going to be the benefit that we expected in terms of tax. In terms of our branded stations, this is the strategy we've been sharing with you. We keep on investing, we keep on doing business very selectively, and we are maintaining our plan. The sales we had to do had to do, are completed. Now it's just regular turnover of businesses. We'll keep on investing. But nothing really abnormal, just fine. That's great. Thank you for your answers. The next question comes from Regis Cardoso, XP. Hello, good morning, everyone. Thank you very much for taking my questions. Congrats on your efforts to help the people in the floods, the flooded area of Rio Grande do Sul, and also for your investments in Hidrovias. I'd like to ask about the equity story of Ipiranga going from the short term and looking ahead to a five-year perspective. What do you think will be the... Sorry, will there be an expansion of profitability, turnaround? Do you expect to grow volumes or have a diversification? I would like to hear that from you. In the investments of Hidrovias, there is a level of exposure to agribusiness. Does it make sense for Ultrapar to consider additional assets in this area, expand its position to vegetable oils or grains, anything outside oil and gas? Thank you. Well, Regis, our story has been consistently told throughout the years, working focused on the four pillars, which are essential to our business. It's not a turnaround story anymore, because it has already done. Now, it's continuous improvement. The four pillars are going to keep on being emphasized so that we can gain in operational excellence or operating excellence. I'm not going to repeat what I've said in our calls, in Ultra Day. So I think yes, we are gaining operating efficiency based on the plan that you are all familiar with. Concerning exposure in other positions beyond oil and gas, we've been considering maybe more than a dozen targets in the last 12 months. We think that Ultracargo going into solid bulk for grains, for fertilizer, for supply, does make sense. A good strategy has to be designed in advance, but actions have to match the opportunities. Good morning. I'm speaking too far away from the microphone. Indeed. We are not looking, we do not want to only grow, we want to generate value. This is always going to be in our radar. So that's what we want. Good. Thank you. The next question comes from Rodrigo Almeida, Santander. Hello, good morning, everyone. I'd like to go back to the topic of investment in capital, and hear more about a piece of news saying that you were thinking about gas production and Ultragaz that was not really excluded from your strategy. What can we anticipate looking ahead? And also, with your acquisition of Hidrovias and thinking about others, leverage is within controlled levels. So what can we expect for shareholders? Yes, more dividends, but do you have any opinion about buying back? Do you discuss it internally? It also helps us. Let me answer the question about Ultragaz. Our strategic path is what we've designed before. We've been trying to identify other synergies. We are just thinking about commercial relationship, using our brand and capillarity to bring more complete solutions to our customers, and constantly looking for additional opportunities. For Ultragaz, we are paying very close attention and designing our strategy. Good morning, Rodrigo. This is Pizzinatto speaking. Just to talk about dividends, we believe that our comfort level of leverage is 1-1.5 times. And based on that, we can think whether there are projects that would make sense to maintain resources, if not, resources in cash, if not, we would share dividends. That's it. Just a follow-up: Do you have any defined opinion about buying back shares? In Brazil, there is no tax benefit of purchasing buyback rather than sharing dividend. We prefer to share dividends, and then our shareholders decides if they want to buy back or if they simply want to invest the dividend anywhere else. As there are no further questions, I would like to hand it back to Rodrigo Pizzinatto for his closing remarks. Well, thank you all very much for your questions, for your attention once again, and see you in the next quarter. Questions which were not answered, will be later answered to you through our investor relations officer. Thank you. Our conference call is closed now. Thank you all very much. Have a great day. Thank you.