ULTRAPAR HOLDINGS INC

6-K 1 aug0803_6k.htm ULTRAPAR 6-K

Form 6-K

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Report Of Foreign Private Issuer Pursuant To Rule 13a-16 Or 15d-16 Of The Securities Exchange Act Of 1934

For the month of August, 2003

Commission File Number: 001-14950

ULTRAPAR HOLDINGS INC. (Translation of Registrants Name into English)

Avenida Brigadeiro Luis Antonio, 1343, 9º Andar São Paulo, SP, Brazil 01317-910 (Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes No X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes No X

Indicate by check mark whether by furnishing the information contained in this Form, the Registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes No X

If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A

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ULTRAPAR HOLDINGS INC.

TABLE OF CONTENTS

ITEM
1.	Press
Release dated August 06, 2003
2.	Independent
Accountants Review Report for the quarter and six months
ended June 30, 2003
3.	Notice
to Shareholders, Distribution of Dividends

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ITEM 1

ULTRAPAR PARTICIPAÇÕES S.A.

(NYSE: UGP/ BOVESPA:UGPA4)

INFORMATION AND RESULTS FOR THE SECOND QUARTER 2003 (São Paulo, Brazil, August 6, 2003)

38% GROWTH IN NET REVENUE IN 2Q03 COMPARED TO 2Q02 15% GROWTH IN OPERATING PROFIT EBITDA INCREASED 13% IN 2Q03 COMPARED TO 2Q02 29% HIGHER EBITDA IN 1H03 COMPARED TO 1H02

With a great satisfaction we announced in July the signature of a protocol of understanding to the acquisition of Canamex, which will mean the first stage in Ultrapars globalization process. We work focused on the consistency of our results and on the expansion of our businesses, always having in mind the value creation to our shareholders.

Paulo G. A. Cunha - CEO

Ultrapar Participações S.A. UGPA4 = R$ 26.50 / 1,000 shares UGP = US$ 9.22 / ADR (06/30/03)

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2nd Quarter 2003 - Overview

Ultrapar, a company engaged in LPG distribution (Ultragaz), chemical and petrochemical production (Oxiteno), as well as transportation and storage of related products (Ultracargo), reported the following results for the second quarter 2003:

| Financial
Performance | 2Q03 | 2Q02 | Δ
(%) | 1H03 | 1H02 | Δ
(%) |
| --- | --- | --- | --- | --- | --- | --- |
| Ultrapar
Consolidated | | | 2Q03x2Q02 | | | 1H03x1H02 |
| Net
Sales Revenue | 933 | 674 | 38% | 1,867 | 1,254 | 49% |
| Gross
Profit | 188 | 161 | 17% | 380 | 294 | 29% |
| Operating
Profit | 85 | 74 | 15% | 175 | 128 | 37% |
| EBITDA | 119 | 105 | 13% | 241 | 187 | 29% |
| Net
Income | 52 | 43 | 21% | 112 | 67 | 67% |
| Earnings
per 1,000 shares | 0.74 | 0.81 | (9%) | 1.60 | 1.26 | 27% |
| In
millions of R$ (except EPS) | | | | | | |

| Operating
Performance | 2Q03 | 2Q02 | Δ
(%) | 1H03 | 1H02 | Δ
(%) |
| --- | --- | --- | --- | --- | --- | --- |
| Ultragaz | | | 2Q03x2Q02 | | | 1H03x1H02 |
| Sales
Volume (thousand ton) | 310.4 | 326.6 | (5%) | 600.2 | 633.7 | (5%) |
| Bottled | 198.9 | 194.5 | 2% | 378.1 | 380.1 | (1%) |
| Bulk | 111.4 | 132.1 | (16%) | 222.2 | 253.7 | (12%) |

| Operating
Performance | 2Q03 | 2Q02 | Δ
(%) | 1H03 | 1H02 | Δ
(%) |
| --- | --- | --- | --- | --- | --- | --- |
| Oxiteno | | | 2Q03x2Q02 | | | 1H03x1H02 |
| Sales
Volume (thousand ton) | 110.6 | 87.9 | 26% | 228.5 | 193.8 | 18% |
| Domestic | 61.5 | 69.4 | (11%) | 131.6 | 125.4 | 5% |
| Exports | 49.1 | 18.4 | 167% | 96.9 | 68.3 | 42% |

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Highlights:

| Ø | The
signature of a preliminary agreement to acquire the chemical
division of the Berci Group (CANAMEX) is the first stage in Ultrapars
globalization process. The acquisition is designed to establish
a more active presence in the Mexican market of specialty chemicals
and to create a production and distribution platform to the United
States. |
| --- | --- |
| Ø | On August
6, 2003, Ultrapars Board of Directors approved a dividend
distribution in the amount of R$ 0.508195 per 1,000 preferred
shares and R$ 0.461996 per 1,000 common shares, corresponding
to an advance on year-end 2003 earnings, to be paid on August
29, 2003. |
| Ø | During April,
May and July, Ultrapar, through Oxiteno, raised US$70 million
in pre-export facilities with an average 3 year term and an average
cost equivalent to 91.3% of the Interbank Deposit Certificate
CDI on the funding contract date. |

Ultrapar and the macroeconomic environment

A strong wage of optimism in the financial markets in the first half 2003 resulted in the strengthening of the Real and the reduction in the country risk premium. In the real economy, the high interests and inflation rates and the lack of a trigger to the e xports due to the currency appreciation, resulted in lower industrial production, lower investments and a decline in workers real wages.

Internationally, the post conflict scenario in Middle East drove down in 9% the average oil price in dollar (Brent) this quarter, compared to the average price practiced in the first quarter 2003. Following this trend, the average NWE benchmark price for naphtha decreased 27% between 2Q03 and 1Q03. However, when compared to the 2Q02, oil and nafta average prices increased 3% and 5%, respectively.

In Brazil, due to the delay to pass through the international prices and the currency variation to nafta prices, nafta average price remained, in reais, at the same levels when compared to the 1Q03, and presented a 83% average increase when compared to the 2Q02, impacting petrochemicals margins. The drop in oil related prices should reflect in Ultrapars costs only in the third quarter 2003.

Despite the scenario of low industrial production and high oil related prices, once again Ultrapar achieved significant improvements in its results in this quarter. Oxiteno achieved a favorable result compared to the second quarter 2002, when it suffered from a shortage of raw materials and an unfavorable price environment. Ultragaz was able to show a similar performance when compared to the 2Q02, even though the successive increases in the ex-refinery prices occurred during 2002, the demand retraction, and the client losses to natural gas, that impacted its results.

Operating Performance

Ultragaz - In 2Q03, the Brazilian LPG market was negatively impacted by the successive increases in Petrobras LPG prices, by demand retraction and by client losses due to competition from natural gas. As a result, the LPG market reported a year over year decline in sales volume of 5.2%. Ultragaz posted 2Q03 sales volume of 310.4 thousand tons, 5.0% lower when compared with the second quarter 2002. In the first half of 2003, Ultragaz recorded a sales volume of 600.2 thousand ton, 5.3% lower when compared with the first half of 2002, while the Brazilian LPG market as a whole was down 7.6% in the same period.

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Sales Volume Ultragaz (in thousand ton)

Sales volume in the bottled segment, served mainly by 13 Kg cylinders, increased 2% over 2Q02, a consequence of the geographic expansion mainly to the states of Minas Gerais and Rio de Janeiro. In the bulk segment, comprising mainly industrial and commercial consumers, 2Q03 sales volume dropped 20.7 thousand tons compared to 2Q02, mainly the result of industrial companies located along the Brazil-Bolivia gas pipeline that converted their energy source to natural gas. This situation was in line with companys expectations.

Oxiteno - Oxiteno is a producer of Ethylene Oxide and its main derivatives, as well as a large producer of specialty chemicals. Oxitenos products are used throughout many industrial sectors, including PET packaging, paints, cosmetics and detergents.

Oxitenos 2Q03 sales volume was 110.6 thousand tons, a 26% increase in relation to the second quarter 2002. This increase is a reflection of the greater supply of raw material this quarter in relation to 2Q02 when Braskem, ethylene supplier in Camaçari, interrupted operations as part of its program to expand production capacity, restricting Oxitenos ethylene supply in 22% in that quarter, impacting sales volume, particularly exports.

Sales volume to the domestic market was 61.5 thousand tons, a decline of 11% in relation to the second quarter 2002, a reflection of the drop in sales in the polyester and hydraulic fluid segments due to weaker economic activity of these segments this year. Exports were 49.1 thousand tons, a 167% growth compared to the preceding year, when exports were damaged by the ethylene restriction in Camaçari. In the first half of 2003, Oxitenos sales volume was 228.5 tons, a 18% increase compared to the first half of 2002.

Sales Volume Oxiteno (in thousand ton)

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Ultracargo. Through its subsidiaries Transultra and Tequimar, Ultracargo is one of the leaders in logistics for the chemical, petrochemicals and LPG sectors in Brazil. Among the solutions, Transultra offers integrated multi-modal transportation and operations of reception and expedition of goods at its customers installations. Transultra operates through its own and third-party fleets. Tequimar maintains and operates storage installations at port terminals and rail junctions for the movement of chemical and petrochemical products. Tequimar operates terminals i n Aratu, Camaçari, Maceió, Paulínia, Santos and Suape. The companys considerable storage capacity and the strategic location of its assets, facilitates product movement along its multi-modal logistics system. Besides storage services, Tequimar offers ship loading and unloading services, the operation of pipelines, logistics programming and installation engineering.

Transultra increased its fleet mileage by 39% in 2Q03, a consequence of winning new and important clients during 2002 and of investing in new trucks. At Tequimar, the effective storage capacity increased by 9% between second quarters, due to the 20 thousand cubic meters expansion in the Aratu terminal, occurred in June, and to the increase in the occupancy rate of Tequimars tanks. In 2Q03 it reached 94.3%, versus 91.2% in 2Q02.

Financial Performance

Net Sales Revenue - Consolidated net sales revenue totaled R$ 932.7 million in 2Q03, an increase of 38% when compared to 2Q02. In the first half of 2003, consolidated net sales revenue totaled R$ 1,866.9 million, 49% higher than in the first half of 2002.

Ultragaz  Net sales revenue at Ultragaz totaled R$ 616.7 million in 2Q03 a 31% increase over 2Q02. The increase reflects the increase in LPG costs during 2002. In the first half of 2003, net sales revenue totaled R$ 1,185.6 million, a 37% increase over 1H02.

Oxiteno  Net sales revenue totaled R$ 282.2 million in 2Q03, 56% higher than in the 2Q02. The real depreciation and the recovery of glycol prices in the international market, resulted in a 24% improvement in average sales prices, comparing the two second quarters. In the first half of 2003, net sales revenue increased by 76% over 1H02.

Ultracargo  Net sales revenue in 2Q03 was R$ 43.1 million, 43% higher than in 2Q02. This increase is a result of new clients at Transultra and the increase of storage volume at Tequimar.

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Cost of Goods Sold. Cost of goods sold at Ultrapar in 2Q03 totaled R$ 744.8 million, 45% higher than in the 2Q02. In the first half of 2003, cost of goods sold was 55% higher compared to the same period in 2003.

Ultragaz: The cost of goods sold in 2Q03 increased 37% over 2Q02, driven by LPG cost corrections, reflecting foreign exchange rate variation and LPG price levels practiced on the international market. Year over year, average LPG prices charged to the distributors increased 57%. Comparing the first six-month periods of 2003 and 2002, cost of goods sold at Ultragaz increased 47%.

Oxiteno: Cost of goods sold in 2Q03 increased 66% over 2Q02, reflecting increased sales volume together with an increase in variable unit costs, especially those of ethylene which year over year rose 61% per unit. Cost of goods sold increased 74% in the first half 2003 compared to the 1H02.

Ultracargo Cost of services rendered increased 50% in the 2Q03 compared to the same period last year, reflecting increases in the volume of operations and increases in the cost of its main raw materials. Fuel costs and third-party freight costs increased at Transultra and, at Tequimar, the increase was in the cost of nitrogen, used to clean the tanks.

Selling General and Administrative Expenses  Ultrapars SG&A expenses totaled R$ 104.0 million in 2Q03, 17% higher than the R$ 88.7 million in 2Q02. In the first half of 2003, SG&A expenses were R$ 207.6 million, 23% higher than in the same period in 2002.

Ultragaz General, administrative and selling expenses at Ultragaz were R$56.9 million in the quarter, R$3.8 million higher than in 2Q02, mainly due to the increase in depreciation expenses that were R$20.9 million in 2Q03, R$1.2 million higher than in the 2Q02, and to the increase in personnel expenses, a consequence of collective wage agreements negotiated in September 2002. Ultragazs operating expenses totaled R$ 111.4 million in 1H03, 13% higher than the in 1H02.

Oxiteno  General, administrative and selling expenses were R$39.1 million, an increase of R$8.8 million compared to the 2Q02, due to the R$8.5 million increase in selling expenses quarter over quarter, largely due to increased freight export expenses, compatible with growth in exports. In the first half of 2003, SG&A expenses at Oxiteno totaled R$ 80.8 million, R$ 22.3 million higher compared to the first half of 2002.

Ultracargo  General, administrative and selling expenses were R$9.2 million, an increase of R$1.9 million compared to the 2Q02, due to the increase in administrative expenses, a consequence of the need of hiring new employees after the celebration of new clients contracts and of collective wage agreements negotiated in the second half of 2002.

EBITDA Consolidated cash generation (EBITDA) totaled R$ 118.8 million in 2Q03, 13% higher than the same period last year. In the first half of 2003 EBITDA totaled R$ 240.9 million, 29% higher than in the first half of 2002, of R$ 187.4 million.

Ultragaz  EBITDA at Ultragaz totaled R$ 61.6 million, at similar levels to the 2Q02.

Oxiteno  EBITDA at Oxiteno was R$ 45.5 million, 29% higher than in 2Q02.

Ultracargo  Ultracargos EBITDA totaled R$ 10.1 million, 46% higher than in the same period last year.

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Financial Result  Ultrapar recorded a net financial expense of R$19.0 million in 2Q03 against financial income of R$14.8 million in 2Q02. During the second quarter 2003, Ultrapars net cash position remained close to zero. The effect of the Real appreciation on our overseas financial investments (therefore in dollar) impacted negatively our financial result in this quarter. Ultrapar's hedge policy is to protect all of the companys dollar-denominated liabilities against currency fluctuations. Ultrapars financial income of R$14.8 million reported in 2Q02 is a consequence of Ultrapars net cash position of R$ 268.7 million in that period, and the impact of the Real devaluation in the 2Q02 on our overseas financial investments.

Net Profit  Consolidated second quarter 2003 net income was R$51.6 million, a 21% growth compared to the 2Q02. The improvement was the result of better operating profit and of the elimination of the minority participation in Oxiteno and Ultragaz, at the end of the corporate restructuring in the second half of 2002. In the first half of 2003, net income totaled R$111.6 million, a 67% growth compared to the first half of 2002.

CAPEX  Capital expenditures totaled R$ 53.8 million in 2Q03, allocated as following:

At Ultragaz, primarily to the expansion in the bulk segment (UltraSystem), gas bottles and installing the ERP system;
At Oxiteno, capex focused on the modernization of the industrial facilities, installation of ERP system and development of new products;
At Ultracargo, investments in the expansion of the Aratu terminal and fleet expansion.


		●
CAPEX
2Q03	R$	% of
	MM	Total
Ultragaz	36.6	68 %
Oxiteno	11.0	20 %
Ultracargo	6.2	12 %
Ultrapar	53.8	100 %

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Ultrapar in the Capital Markets

Ultrapars shares showed a 14% growth in the 2Q03 while the Ibovespa index showed a 15% growth in the same period.

Share Repurchase Program  During the second quarter 2003, Ultrapar purchased a total of 63,600,000 shares.

Outlook

The signature of the preliminary agreement to the acquisition of Canamex reinforces Ultrapars intent and disposal to continue to look for growth opportunities, through solid and disciplined movements that add value for shareholders, and strengthen its market presence by growing the business, by improving performance and profitability or by technological improvement of its products and processes.

Oxiteno will continue to seek the development of new products and technologies as well as to conquer new markets through investments or through acquisitions, in Brazil or overseas. Ultragaz will keep its strategy of growth in UltraSystem but will also quest the expansion of its activities through acquisitions in the LPG sector in Brazil and abroad, mainly in Latin America. Ultracargo should strongly invest in its business expansion, exploring new opportunities that are arising from the large demand for logistics infrastructure in Brazil, the deregulation of the oil and oil derivatives market and from the strong growth in the international trade of vegetable oils and sugarcane alcohol.

Forthcoming Events

Results Release:

On August 07, 2003, Ultrapar will host a conference call with investors to discuss the companys first quarter 2003 performance and the outlook for 2003.

Conference Call in Portuguese: 11:00 a.m. (Brasilia time) Dial-in to pre-registering: 55 11 4613-0512 Website to pre-register: www.ccall.com.br/thomson Password for participants: 129 + registration number to be provided at pre-registration (PIN)

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Please call 5 minutes prior to the conference call time on 55 11 4613-0500 with your password.

Conference Call in English: 11:00 a.m. (New York time) / 12:00 a.m. (Brasilia time) Dial-in to pre-register: Calling from Brazil: 11 4613-0512 Calling from abroad: 55 11 4613-0513 Website: www.ccall.com.br/thomson (Click on version in English) Participant Password: 458 Connecting Telephones: Calling from Brazil: 11 4613-0503 Calling from the USA: 1-703-788-1236 or 1-866-812-0442 (toll free) Participant Password: 458 + Personal Identification Number (PIN)

Following the conference calls, replays will be made available until August 15, 2003 at the following numbers:

Conference Call in Portuguese: Telephone: 55 11 4613-0501 (Password 129)

Conference Call in English

For participants calling from Brazil: 11 4613-0502 (password 458) For participants calling from the USA: 1-703-788-1236 or 1-866-812-0442 (Password 458)

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Operational and Financial Summary

| Financial
Focus | 2Q03 | 2Q02 | 1H03 | 1H02 |
| --- | --- | --- | --- | --- |
| Ultrapar
EBITDA Margin | 13% | 16% | 13% | 15% |
| Ultrapar
Net Margin | 6% | 6% | 6% | 5% |
| Productivity | 2Q03 | 2Q02 | 1H03 | 1H02 |
| EBITDA
R$/ton Ultragaz (million) | 199 | 186 | 199 | 172 |
| EBITDA
R$/ton Oxiteno (million) | 412 | 403 | 525 | 316 |
| Human
Resources Focus | 2Q03 | 2Q02 | 1H03 | 1H02 |
| Employees - Ultrapar | 5,917 | 5,814 | 5,917 | 5,814 |
| Employees - Ultragaz | 4,026 | 4,064 | 4,026 | 4,064 |
| Employees - Oxiteno | 923 | 906 | 923 | 906 |
| Employees - Ultracargo | 784 | 669 | 784 | 669 |
| Capital
Market Focus | 2Q03 | 2Q02 | 1H03 | 1H02 |
| Total
Shares (million) | 69,691 | 53,000 | 69,691 | 53,000 |
| Market
Value R$ million | 1,847 | 1,107 | 1,847 | 1,107 |
| BOVESPA
Average Daily Volume thousand shares | 45,073 | 28,241 | 32,335 | 29,757 |
| BOVESPA
Average Daily Volume R$000 | 1,076,565 | 597,196 | 770,185 | 618,961 |
| BOVESPA
Average Price of the period R$/000 shares | 23,89 | 21,15 | 23,82 | 20,80 |
| Total
ADRs 1 at NYSE (000 ADRs) | 4,272 | 4,345 | 4,272 | 4,345 |
| ADRs
Average Daily Volume | 16,248 | 27,911 | 13,571 | 23,342 |
| ADRs
Average Daily Volume US$000 | 130,673 | 238,055 | 102,843 | 198,816 |
| ADR
Average price in the period (US$) | 8.04 | 8.53 | 7.58 | 8.52 |
| TOTAL 2 Average Daily Volume thousand shares | 61,321 | 54,854 | 45,354 | 51,376 |
| TOTAL 2 Average Daily Volume R$000 | 1,471,336 | 1,162,214 | 1,084,002 | 1,070,856 |
| 1 1 ADR = 1,000 preferred shares | | | | |
| 2 Total = BOVESPA + NYSE | | | | |

All financial information has been prepared in accordance with Brazilian corporate law accounting. All figures are given in Brazilian Reais, except on page 17 where they were converted into U.S. dollars, based on the average commercial exchange rate for the corresponding periods.

This document may contain forecasts as to future events. Such forecasts reflect merely expectations on the part of the Companys management. Words such as believe, expect, plan, strategy, prospect, forecast, estimate, project, anticipate, can and other words with a similar meaning, are to be understood as preliminary declarations as to future expectations and projections. Such declarations are subject to risks and uncertainties forecasted or otherwise by the Company and may make the effective results significantly different from those that have been projected. For this reason, the reader should not base his/her decisions solely on these estimates.

For further information please contact: Investor Relations Department Ultrapar Participações S.A (55 11) 3177-6513 [email protected] www.ultra.com.br

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ULTRAPAR PARTICIPAÇÕES S/A CONSOLIDATED BALANCE SHEET In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | JUN | MAR | |
| --- | --- | --- | --- | --- |
| | 2003 | 2002 | 2003 | |
| ASSETS | | | | |
| Cash
and marketable securities | 676.3 | 688.6 | 621.8 | |
| Trade
accounts receivable | 277.1 | 214.8 | 321.1 | |
| Inventories | 140.9 | 92.6 | 123.6 | |
| Other | 177.9 | 109.6 | 160.8 | |
| Total
Current Assets | 1,272.2 | 1,105.6 | 1,227.3 | |
| Investments | 33.4 | 89.7 | 32.5 | |
| Property,
plant and equipment | 807.7 | 720.5 | 791.2 | |
| Deferred
charges | 85.8 | 74.6 | 83.6 | |
| Other
long term assets | 53.5 | 54.6 | 52.6 | |
| Total
Long Term Assets | 980.4 | 939.4 | 959.9 | |
| TOTAL
ASSETS | 2,252.6 | 2,045.0 | 2,187.2 | |
| LIABILITIES
AND STOCKHOLDERS' EQUITY | | | | |
| Loans | 201.1 | 103.5 | 291.2 | |
| Suppliers | 88.7 | 89.1 | 102.6 | |
| Salaries
and related contributions | 52.9 | 44.6 | 46.9 | |
| Taxes | 12.0 | 27.8 | 14.7 | |
| Other
accounts payable | 22.9 | 23.0 | 22.9 | |
| Total
Current Liabilities | 377.6 | 288.0 | 478.3 | |
| Loans | 470.3 | 316.4 | 350.9 | |
| Deferred
income tax | 30.2 | 29.5 | 35.2 | |
| Other
long term liabilities | 40.9 | 71.9 | 40.7 | |
| Total
Long Term Liabilities | 541.4 | 417.8 | 426.8 | |
| TOTAL
LIABILITIES | 919.0 | 705.8 | 905.1 | |
| STOCKHOLDERS'
EQUITY | | | | |
| Capital | 664.0 | 433.9 | 664.0 | |
| Revalution
reserve | 25.2 | 24.9 | 25.6 | |
| Revenue
reserves | 499.6 | 339.8 | 501.1 | |
| Retained
earnings | 112.3 | 67.9 | 60.4 | |
| Total
Stockholders' Equity | 1,301.1 | 866.5 | 1,251.1 | |
| Minority
Interests | 32.5 | 472.7 | 31.0 | |
| TOTAL
STOCKHOLDERS' EQUITY & M.I. | 1,333.6 | 1,339.2 | 1,282.1 | |
| TOTAL
LIAB. AND STOCKHOLDERS' EQUITY | 2,252.6 | 2,045.0 | 2,187.2 | |
| Cash | 676.3 | 688.6 | 621.8 | |
| Debt | 671.4 | 419.9 | 642.1 | |
| Net
cash (debt) | 4.9 | 268.7 | (20.3 | ) |

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ULTRAPAR PARTICIPAÇÕES S/A CONSOLIDATED STATEMENT OF INCOME In millions of reais (except per share data) - Corporate law

| | QUARTERS
ENDED IN — JUN | | JUN | | MAR | | ACCUMULATED — JUN | | JUN | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2003 | | 2002 | | 2003 | | 2003 | | 2002 | |
| Net
sales | 932.7 | | 674.3 | | 934.2 | | 1,866.9 | | 1,253.9 | |
| Cost
of goods sold | (744.8 | ) | (512.9 | ) | (741.7 | ) | (1,486.5 | ) | (959.9 | ) |
| Gross
profit | 187.9 | | 161.4 | | 192.5 | | 380.4 | | 294.0 | |
| Operating
expenses | | | | | | | | | | |
| Selling | (38.2 | ) | (27.5 | ) | (36.8 | ) | (75.0 | ) | (52.2 | ) |
| General
and administrative | (43.5 | ) | (40.2 | ) | (45.1 | ) | (88.6 | ) | (75.9 | ) |
| Depreciation
and amortization | (22.3 | ) | (21.0 | ) | (21.7 | ) | (44.0 | ) | (40.0 | ) |
| Other
operating results | 1.2 | | 1.5 | | 0.7 | | 1.9 | | 2.3 | |
| Income
before equity and financial | | | | | | | | | | |
| results | 85.1 | | 74.2 | | 89.6 | | 174.7 | | 128.2 | |
| Financial
results | | | | | | | | | | |
| Financial
income | (70.4 | ) | 81.4 | | 2.5 | | (67.9 | ) | 103.6 | |
| Financial
expenses | 59.1 | | (58.8 | ) | (6.1 | ) | 53.0 | | (72.7 | ) |
| Taxes
on financial activities | (7.7 | ) | (7.8 | ) | (8.7 | ) | (16.4 | ) | (15.4 | ) |
| Equity
in earnings (losses) of affiliates | | | | | | | | | | |
| Affiliates | - | | - | | (0.4 | ) | (0.4 | ) | 1.1 | |
| Benefit
of tax holidays | 11.2 | | 7.7 | | 12.9 | | 24.1 | | 13.9 | |
| Non-operating
income (expense) | (0.2 | ) | (0.4 | ) | (0.9 | ) | (1.1 | ) | (1.7 | ) |
| Income
before taxes | 77.1 | | 96.3 | | 88.9 | | 166.0 | | 157.0 | |
| Social
contribution and income tax | (23.7 | ) | (22.9 | ) | (28.9 | ) | (52.6 | ) | (45.2 | ) |
| Income
before minority interest | 53.4 | | 73.4 | | 60.0 | | 113.4 | | 111.8 | |
| Minority
interest | (1.8 | ) | (30.8 | ) | - | | (1.8 | ) | (44.8 | ) |
| Net
Income | 51.6 | | 42.6 | | 60.0 | | 111.6 | | 67.0 | |
| EBITDA | 118.8 | | 104.9 | | 122.1 | | 240.9 | | 187.4 | |
| Depreciation
and amortization | 33.8 | | 30.7 | | 32.4 | | 66.2 | | 59.1 | |
| Investments | 56.6 | | 57.1 | | 48.2 | | 104.8 | | 86.4 | |
| RATIOS | | | | | | | | | | |
| Earnings
/ 1,000 shares | 0.74 | | 0.81 | | 0.86 | | 1.60 | | 1.26 | |
| Net
debt / Stockholders' equity | Na | | Na | | 0.02 | | - | | - | |
| Net
debt / LTM EBITDA | Na | | Na | | 0.04 | | - | | - | |
| Net
interest expense / EBITDA | 0.16 | | Na | | 0.10 | | 0.13 | | Na | |
| Operating
margin | 9 | % | 11 | % | 10 | % | 9 | % | 10 | % |
| EBITDA
margin | 13 | % | 16 | % | 13 | % | 13 | % | 15 | % |

*********** MARKER PAGE="sheet: 1; page: 1"

ULTRAPAR PARTICIPAÇÕES S/A CONSOLIDATED CASH FLOW STATEMENT In millions of reais - corporate law

	JUN — 2003		2002
Cash
Flows from operating activities	28.1		197.5
Net
income	111.6		67.0
Minority
interest	1.8		44.8
Depreciation
and amortization	66.2		59.1
Working
capital	(72.5	)	(22.8	)
Financial
expenses (A)	(71.8	)	48.7
Other	(7.2	)	0.7
Cash
Flows from investing activities	(103.1	)	(84.6	)
Additions
to property, plant, equipment and deferred charges	(102.2	)	(81.6	)
Disposals
of permanent assets	3.8		1.9
Acquisition
of minority interests (including treasury shares)	(2.6	)	(4.8	)
Dividends
received from affiliates	-		0.4
Other	(2.1	)	(0.5	)
Cash
Flows from financing activities	113.4		(80.3	)
Short
term debt, net	44.3		(25.0	)
Issuances	190.7		27.8
Debt
payments	(71.7	)	(46.6	)
Related
companies	(0.4	)	(0.4	)
Dividends
paid (B)	(47.2	)	(35.9	)
Other	(2.3	)	(0.2	)
Net
increase (decrease) in cash and cash equivalents	38.4		32.6
Cash
and cash equivalents at the beginning of the period	637.9		656.0
Cash
and cash equivalents at the end of the period	676.3		688.6
Supplemental
disclosure of cash flow information
Cash
paid for interest (C)	26.4		18.3
Cash
paid for taxes on income (C)	14.3		13.1
Supplier
financing of acquisition of property, plant and equipment	-		2.8

| (A) | Not
including financial income. Comprised basically of financial
expenses, in particular, exchange variations. |
| --- | --- |
| (B) | Including
dividends paid by Ultrapar and its subsidiaries. |
| (C) | Included
in cash flow from operating activities. |
| (D) | Included
ICMS on the Property, plant and equipment according to Law
Complemental no. 102/2000. |

*********** MARKER PAGE="sheet: 1; page: 1"

ULTRAGAZ PARTICIPAÇÕES LTDA. CONSOLIDATED BALANCE SHEET In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | JUN | MAR |
| --- | --- | --- | --- |
| | 2003 | 2002 | 2003 |
| OPERATING
ASSETS | | | |
| Trade
accounts receivable | 143.9 | 122.8 | 155.6 |
| Inventories | 23.1 | 17.1 | 25.3 |
| Other | 86.7 | 38.5 | 75.5 |
| Property,
plant & equipment | 379.7 | 339.3 | 365.3 |
| Deferred
charges | 76.3 | 72.4 | 76.3 |
| TOTAL
OPERATING ASSETS | 709.7 | 590.1 | 698.0 |
| OPERATING
LIABILITIES | | | |
| Suppliers | 41.2 | 56.5 | 26.6 |
| Salaries
and related contributions | 27.0 | 23.5 | 23.7 |
| Taxes | 1.3 | 1.7 | 1.5 |
| Other
accounts payable | 3.2 | 2.0 | 3.5 |
| TOTAL
OPERATING LIABILITIES | 72.7 | 83.7 | 55.3 |

ULTRAGAZ PARTICIPAÇÕES LTDA. CONSOLIDATED STATEMENT OF INCOME In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | | JUN | | MAR | | ACCUMULATED — JUN | | JUN | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2003 | | 2002 | | 2003 | | 2003 | | 2002 | |
| Net
sales | 616.7 | | 471.7 | | 568.9 | | 1,185.6 | | 862.5 | |
| Cost
of goods sold | (520.0 | ) | (378.6 | ) | (499.0 | ) | (1,019.0 | ) | (693.0 | ) |
| Gross
profit | 96.7 | | 93.1 | | 69.9 | | 166.6 | | 169.5 | |
| Operating
expenses | | | | | | | | | | |
| Selling | (19.6 | ) | (17.4 | ) | (17.4 | ) | (37.0 | ) | (31.6 | ) |
| General
and administrative | (16.4 | ) | (16.0 | ) | (16.8 | ) | (33.2 | ) | (30.0 | ) |
| Depreciation
and amortization | (20.9 | ) | (19.7 | ) | (20.3 | ) | (41.2 | ) | (37.6 | ) |
| Other
operating results | 0.9 | | 1.0 | | 0.3 | | 1.2 | | 1.4 | |
| EBIT | 40.7 | | 41.0 | | 15.7 | | 56.4 | | 71.7 | |
| EBITDA | 61.6 | | 60.7 | | 36.0 | | 97.6 | | 109.2 | |
| Depreciation
and amortization | 20.9 | | 19.7 | | 20.3 | | 41.2 | | 37.6 | |
| RATIOS | | | | | | | | | | |
| Operating
margin | 7 | % | 9 | % | 3 | % | 5 | % | 8 | % |
| EBITDA
margin | 10 | % | 13 | % | 6 | % | 8 | % | 13 | % |

*********** MARKER PAGE="sheet: 1; page: 1"

OXITENO S/A - INDÚSTRIA E COMÉRCIO CONSOLIDATED BALANCE SHEET In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | JUN | MAR |
| --- | --- | --- | --- |
| | 2003 | 2002 | 2003 |
| OPERATING
ASSETS | | | |
| Trade
accounts receivable | 116.3 | 81.1 | 148.0 |
| Inventories | 116.1 | 74.2 | 96.7 |
| Other | 37.2 | 15.6 | 22.1 |
| Property,
plant & equipment | 323.3 | 304.5 | 323.1 |
| Deferred
charges | 10.0 | 4.3 | 8.2 |
| TOTAL
OPERATING ASSETS | 602.9 | 479.7 | 598.1 |
| OPERATING
LIABILITIES | | | |
| Suppliers | 43.6 | 29.1 | 68.0 |
| Salaries
and related contributions | 20.1 | 17.2 | 17.4 |
| Taxes | 4.8 | 3.6 | 6.3 |
| Other
accounts payable | 18.0 | 19.3 | 15.8 |
| TOTAL
OPERATING LIABILITIES | 86.5 | 69.2 | 107.5 |

OXITENO S/A - INDÚSTRIA E COMÉRCIO CONSOLIDATED STATEMENT OF INCOME In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | | JUN | | MAR | | ACCUMULATED — JUN | | JUN | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2003 | | 2002 | | 2003 | | 2003 | | 2002 | |
| Net
sales | 282.2 | | 181.3 | | 333.3 | | 615.5 | | 350.5 | |
| Cost
of goods sold | | | | | | | | | | |
| Variable | (179.7 | ) | (101.1 | ) | (197.2 | ) | (376.9 | ) | (199.3 | ) |
| Fixed | (18.8 | ) | (16.0 | ) | (21.2 | ) | (40.0 | ) | (34.5 | ) |
| Depreciation
and amortization | (7.7 | ) | (7.3 | ) | (7.6 | ) | (15.3 | ) | (14.4 | ) |
| Gross
profit | 76.0 | | 56.9 | | 107.3 | | 183.3 | | 102.3 | |
| Operating
expenses | | | | | | | | | | |
| Selling | (18.6 | ) | (10.1 | ) | (19.4 | ) | (38.0 | ) | (20.6 | ) |
| General
and administrative | (19.5 | ) | (19.3 | ) | (21.4 | ) | (40.9 | ) | (36.3 | ) |
| Depreciation
and amortization | (1.0 | ) | (0.9 | ) | (0.9 | ) | (1.9 | ) | (1.6 | ) |
| Other
operating results | (0.1 | ) | 0.7 | | 0.5 | | 0.4 | | 1.4 | |
| EBIT | 36.8 | | 27.3 | | 66.1 | | 102.9 | | 45.2 | |
| EBITDA | 45.5 | | 35.4 | | 74.6 | | 120.1 | | 61.1 | |
| Depreciation
and amortization | 8.7 | | 8.1 | | 8.5 | | 17.2 | | 16.0 | |
| RATIOS | | | | | | | | | | |
| Operating
margin | 13 | % | 15 | % | 20 | % | 17 | % | 13 | % |
| EBITDA
margin | 16 | % | 20 | % | 22 | % | 20 | % | 17 | % |

*********** MARKER PAGE="sheet: 1; page: 1"

ULTRACARGO PARTICIPAÇÕES LTDA. CONSOLIDATED BALANCE SHEET In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | JUN | MAR |
| --- | --- | --- | --- |
| | 2003 | 2002 | 2003 |
| OPERATING
ASSETS | | | |
| Trade
accounts receivable | 16.9 | 12.0 | 19.3 |
| Inventories | 1.7 | 1.4 | 1.6 |
| Other | 2.1 | 2.0 | 1.5 |
| Property,
plant & equipment | 91.2 | 62.7 | 89.3 |
| Deferred
charges | 1.6 | 0.4 | 1.3 |
| TOTAL
OPERATING ASSETS | 113.5 | 78.5 | 113.0 |
| OPERATING
LIABILITIES | | | |
| Suppliers | 5.2 | 4.3 | 9.8 |
| Salaries
and related contributions | 5.5 | 3.8 | 5.7 |
| Taxes | 3.1 | 2.9 | 3.5 |
| Other
accounts payable | - | - | 0.1 |
| TOTAL
OPERATING LIABILITIES | 13.8 | 11.0 | 19.1 |

ULTRACARGO PARTICIPAÇÕES LTDA. CONSOLIDATED STATEMENT OF INCOME In millions of reais - Corporate law

| | QUARTERS
ENDED IN — JUN | | JUN | | MAR | | ACCUMULATED — JUN | | JUN | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | 2003 | | 2002 | | 2003 | | 2003 | | 2002 | |
| Net
sales | 43.1 | | 30.1 | | 41.5 | | 84.6 | | 57.8 | |
| Cost
of sales | (28.0 | ) | (18.6 | ) | (26.2 | ) | (54.2 | ) | (35.4 | ) |
| Gross
profit | 15.1 | | 11.5 | | 15.3 | | 30.4 | | 22.4 | |
| Operating
expenses | | | | | | | | | | |
| Selling | - | | - | | - | | - | | - | |
| General
and administrative | (9.0 | ) | (7.1 | ) | (8.5 | ) | (17.5 | ) | (13.4 | ) |
| Depreciation
and amortization | (0.2 | ) | (0.2 | ) | (0.2 | ) | (0.4 | ) | (0.4 | ) |
| Other
operating results | 0.2 | | 0.1 | | 0.1 | | 0.3 | | 0.3 | |
| EBIT | 6.1 | | 4.3 | | 6.7 | | 12.8 | | 8.9 | |
| EBITDA | 10.1 | | 6.9 | | 10.0 | | 20.1 | | 14.1 | |
| Depreciation
and amortization | 4.0 | | 2.6 | | 3.3 | | 7.3 | | 5.1 | |
| RATIOS | | | | | | | | | | |
| Operating
margin | 14 | % | 14 | % | 16 | % | 15 | % | 15 | % |
| EBTIDA
margin | 23 | % | 23 | % | 24 | % | 24 | % | 24 | % |

*********** MARKER PAGE="sheet: 1; page: 1"

ULTRAPAR PARTICIPAÇÕES S/A CONSOLIDATED INCOME STATEMENT In millions of US dollars (except per share data) - Corporate law

| | QUARTERS
ENDED IN — JUN | JUN | MAR | ACCUMULATED — JUN | JUN |
| --- | --- | --- | --- | --- | --- |
| (US$
millions) | 2003 | 2002 | 2003 | 2003 | 2002 |
| Net
sales | | | | | |
| Ultrapar | 312.4 | 269.2 | 267.5 | 576.4 | 513.2 |
| Ultragaz | 206.5 | 188.3 | 162.9 | 366.0 | 353.0 |
| Oxiteno | 94.5 | 72.4 | 95.4 | 190.0 | 143.5 |
| Ultracargo | 14.4 | 12.0 | 11.9 | 26.1 | 23.7 |
| EBIT | | | | | |
| Ultrapar | 28.5 | 29.6 | 25.7 | 53.9 | 52.5 |
| Ultragaz | 13.6 | 16.4 | 4.5 | 17.4 | 29.3 |
| Oxiteno | 12.4 | 10.9 | 18.9 | 31.8 | 18.5 |
| Ultracargo | 2.1 | 1.7 | 1.9 | 4.0 | 3.6 |
| Operating
margin | | | | | |
| Ultrapar | 9 % | 11 % | 10 % | 9 % | 10 % |
| Ultragaz | 7 % | 9 % | 3 % | 5 % | 8 % |
| Oxiteno | 13 % | 15 % | 20 % | 17 % | 13 % |
| Ultracargo | 14 % | 14 % | 16 % | 15 % | 15 % |
| EBITDA | | | | | |
| Ultrapar | 39.8 | 41.9 | 35.0 | 74.4 | 76.7 |
| Ultragaz | 20.6 | 24.2 | 10.3 | 30.1 | 44.7 |
| Oxiteno | 15.3 | 14.1 | 21.4 | 37.1 | 25.0 |
| Ultracargo | 3.4 | 2.8 | 2.9 | 6.2 | 5.7 |
| EBITDA
margin | | | | | |
| Ultrapar | 13 % | 16 % | 13 % | 13 % | 15 % |
| Ultragaz | 10 % | 13 % | 6 % | 8 % | 13 % |
| Oxiteno | 16 % | 19 % | 22 % | 20 % | 17 % |
| Ultracargo | 23 % | 23 % | 24 % | 24 % | 24 % |
| Net
income | | | | | |
| Ultrapar | 17.3 | 17.0 | 17.2 | 34.5 | 27.4 |
| Net
income/ 1000 shares (US$) | 0.25 | 0.32 | 0.25 | 0.49 | 0.52 |

*********** MARKER PAGE="sheet: 1; page: 1"

ULTRAPAR PARTICIPAÇÕES S/A LOANS, CASH AND MARKETABLE SECURITIES In millions of reais - Corporate law

| Loans | Balance
in June/2003 | | | | | | Index/ | Interest
Rate % | | | | Maturity
and |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | | | Currency
() | Minimum | | Maximum | | Amortization
Schedule |
| | Ultragaz | Oxiteno | Ultracargo | Ultrapar Holding | Other | Ultrapar Consolidated | | | | | | |
| Foreign
Currency | | | | | | | | | | | | |
| International
Finance Corporation - IFC | - | 7.2 | - | - | - | 7.2 | US$ | 9.4 | | 9.4 | | Semi-annually
until 2003 |
| Syndicated
loan | 172.7 | - | - | - | - | 172.7 | US$ | 7.2 | | 7.2 | | Semi-annually
until 2004 |
| Financings
of Inventories and Property Plant & Equipment | - | 11.2 | - | - | - | 11.2 | US$ | 7.3 | | 9.7 | | Semi-annually
and Anually until 2004 |
| | | | | | | | | | | | | Monthly,
Semi-annually and Anually |
| Export
prepayment, net of linked operations | - | 173.0 | - | - | - | 173.0 | US$ | 4.1 | | 16.3 | | until
2006 |
| National
Bank for Economic | | | | | | | | | | | | |
| and
Social Development - BNDES | 18.8 | 4.9 | 1.3 | - | - | 25.0 | UMBNDES | 10.4 | | 12.3 | | Monthly
until 2008 |
| Advances
on Foreign Exchange Contracts | - | 77.6 | - | - | - | 77.6 | US$ | 1.6 | | 10.5 | | Maximum
of 175 days |
| Subtotal | 191.5 | 273.9 | 1.3 | - | - | 466.7 | | | | | | |
| Local
Currency | | | | | | | | | | | | |
| National
Bank for Economic | | | | | | | | | | | | |
| and
Social Development - BNDES | 108.0 | 59.5 | 7.7 | - | - | 175.2 | TJLP
or IGP-M | 1.5 | | 6.5 | | Monthly
and semi-annually until 2008 |
| Agency
for Financing Machinery and Equipment (FINAME) | 3.6 | 2.8 | 20.6 | - | - | 27.0 | TJLP | 1.8 | | 3.9 | | Monthly
until 2008 |
| Onlendings | - | 2.5 | - | - | - | 2.5 | TJLP | (2.0 | ) | (2.0 | ) | Monthly
until 2009 |
| Subtotal | 111.6 | 64.8 | 28.3 | - | - | 204.7 | | | | | | |
| Total | 303.1 | 338.7 | 29.6 | - | - | 671.4 | | | | | | |
| Composition
per Annum | | | | | | | | | | | | |
| Up
to 1 Year | 47.6 | 146.0 | 7.5 | - | - | 201.1 | | | | | | |
| From
1 to 2 Years | 211.1 | 111.8 | 7.8 | - | - | 330.7 | | | | | | |
| From
2 to 3 Years | 26.8 | 62.2 | 6.5 | - | - | 95.5 | | | | | | |
| From
3 to 4 Years | 15.8 | 11.7 | 5.6 | - | - | 33.1 | | | | | | |
| From
4 to 5 Years | 1.8 | 6.2 | 2.2 | - | - | 10.2 | | | | | | |
| From
5 to 6 Years | - | 0.6 | - | - | - | 0.6 | | | | | | |
| From
6 to 7 Years | - | 0.2 | - | - | - | 0.2 | | | | | | |
| Total | 303.1 | 338.7 | 29.6 | - | - | 671.4 | | | | | | |
| ()
TJLP - Long Term Interest Rate/ IGPM
- Market General Price Index /UMBNDES
- BNDES Basket of Currencies | | | | | | | | | | | | |
| | Balance
in June/ 2003 | | | | | | | | | | | |
| | | | | Ultrapar | | Ultrapar | | | | | | |
| | Ultragaz | Oxiteno | Ultracargo | Holding | Other | Consolidated | | | | | | |
| Cash
and marketable securities | 52.7 | 489.3 | 28.4 | 71.0 | 34.9 | 676.3 | | | | | | |

*********** MARKER PAGE="sheet: 1; page: 1"

ITEM 2

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| Ultrapar
Participações S.A. |
| --- |
| Quarterly
Financial Information for the Quarter and Six Months Ended June 30, 2003 and Independent Accountants Review Report |

Deloitte Touche Tohmatsu Auditores Independentes

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese) INDEPENDENT ACCOUNTANTS REVIEW REPORT

To the Shareholders and Management of Ultrapar Participações S.A. São Paulo - SP

| 1. | We
have reviewed the accompanying quarterly financial information o f
Ultrapar Participações S.A. (the Company)
and subsidiaries as of and for the three and six-month periods ended
June 30, 2003 and 2002, prepared under the responsibility of management
and in conformity with Brazilian accounting practices, consisting
of the balance sheets (Company and consolidated), the statements of
income and the performance report, all expressed in Brazilian reais. |
| --- | --- |
| 2. | We
conducted our reviews in accordance with specific standards established
by the IBRACON - Brazilian Institute of Independent Auditors, together
with the Federal Accounting Council, which consisted principally of:
(a) inquiries of and discussions with persons responsible for the
accounting, financial and operating areas as to criteria adopted in
preparing the quarterly financial information, and (b) review of the
information and subsequent events that had or might have had material
effects on the financial position and operations of the Company and
its subsidiaries. |
| 3. | Based
on our reviews, we are not aware of any material modification that
should be made to the quarterly financial information referred to
in paragraph 1 for it to be in conformity with Brazilian accounting
practices and standards issued by the Brazilian Securities Commission
(CVM), specifically applicable to the preparation of mandatory quarterly
information. |
| 4. | The
accompanying quarterly financial information has been translated into
English for the convenience of readers outside Brazil. |

São Paulo, July 25, 2003

| DELOITTE
TOUCHE TOHMATSU | Altair
Tadeu Rossato |
| --- | --- |
| Auditores
Independentes | Engagement
Partner |

The original of this report has been delivered to the Company, duly signed, accompanied by the quarterly financial information (ITR) sheets, initialed only for identification purposes.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | June
30, 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER | |
| COMPANIES | |

REGISTRATION WITH CVM DOES NOT IMPLY ANY ANALYSIS OF THE COMPANY. COMPANY MANAGEMENT IS RESPONSIBLE FOR THE ACCURACY OF THE INFORMATION PRO VIDED.

01.01 IDENTIFICATION

| 1
CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |
| 4
State Registration Number NIRE 35.300.109.724 | | |

01.02 HEAD OFFICE

| 1
FULL ADDRESS Av. Brigadeiro Luiz Antonio, 1343 - 9º — 3
POSTAL CODE 01317 -910 | | 2
DISTRICT Bela Vista — 4
MUNICIPALITY São Paulo | | 5
STATE SP |
| --- | --- | --- | --- | --- |
| 6
AREA CODE 11 | 7
TELEPHONE 3177-6513 | 8
TELEPHONE 3177-6764 | 9
TELEPHONE 3177-6590 | 10
TELEX |
| 11
AREA CODE 11 | 12
FAX 3177-6107 | 13
FAX 3177-6246 | 14
FAX | |
| 15
E-MAIL [email protected] | | | | |

01.03 INVESTOR RELATIONS DIRECTOR (Company Mail Address)

| 1
NAME Fabio Schvartsman — 3
DISTRICT Bela Vista | 4
POSTAL CODE 01317-910 | 2
FULL ADDRESS Av. Brigadeiro Luiz Antonio, 1343 9º — 5
MUNICIPALITY São
Paulo | | |
| --- | --- | --- | --- | --- |
| 6
STATE SP | 7
AREA CODE 11 | 8
TELEPHONE 3177-6482 | 9
TELEPHONE 3177-6513 | 10
TELEPHONE 3177-6475 |
| 11
TELEX | 12
AREA CODE 11 | 13
FAX 3287-1931 | 14
FAX 3177-6246 | 15
FAX 3177-6107 |
| 16
E-MAIL [email protected] | | | | |

01.04 REFERENCE/ AUDITOR

| CURRENT
YEAR — 1
BEGINNING | 2
END | CURRENT
QUARTER — 3
QUARTER | 4
BEGINNING | 5
END | PRIOR
QUARTER — 6
- QUARTER | 7
- BEGINNING | 8
END |
| --- | --- | --- | --- | --- | --- | --- | --- |
| 01.01.2003 | 12.31.2003 | 2 nd | 04.01.2003 | 06.30.2003 | 1 st | 01.01.2003 | 03.31.2003 |
| 9
AUDITORS NAME/CORPORATE NAME | | | | | 10
- CVM CODE | | |
| DELOITTE TOUCHE TOHMATSU AUDITORES INDEPENDENTES | | | | | 00385-9 | | |
| 11
IN CHARGE ACCOUNTANT | | | | | 12
INDIVIDUAL T AXPAYER
NUMBER (CPF) OF THE IN CHARGE ACCOUNTANT | | |
| ALTAIR
TADEU ROSSATO | | | | | 060.977.208-23 | | |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | June
30, 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 1
CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕ ES S.A. | 33.256.439/0001-39 |

01.05 CAPITAL COMPOSITION

| Number
of shares (THOUSAND) | Current
quarter 06.30.2003 | Prior
quarter 03.31.2003 | Same
quarter of prior year 06.30.2002 |
| --- | --- | --- | --- |
| Paid-up
Capital | | | |
| 1
Common | 51,264,622 | 51,264,622 | 37,984,012 |
| 2
Preferred | 18,426,647 | 18,426,647 | 15,015,988 |
| 3
Total | 69,691,269 | 69,691,269 | 53,000,000 |
| Treasury
Stock | | | |
| 4
Common | 0 | 0 | 0 |
| 5
Preferred | 83,800 | 20,199 | 20,200 |
| 6
Total | 83,800 | 20,199 | 20,200 |
| 01.06
CHARACTERISTICS OF THE COMPANY | | | |
| 1
TYPE OF COMPANY Commercial, industrial and other | | | |
| 2
SITUATION Operating | | | |
| 3
NATURE OF OWNERSHIP Domestic
Holding | | | |
| 4
ACTIVITY CODE 1170000 - Participation and Administration | | | |
| 5
MAIN ACTIVITY Industrial, commercial and other | | | |
| 6
TYPE OF CONSOLIDATION Full | | | |
| 7
TYPE OF REPORT OF INDEPENDENT ACCOUNTANTS Unqualified | | | |

01.07 - COMPANIES EXCLUDED FROM THE CONSOLIDATED FINANCIAL STATEMENTS

1 ITEM 2 Corporate Taxpayer Number (CNPJ) 3 CORPORATE NAME

01.08 DIVIDENDS APPROVED AND/OR PAID DURING AND AFTER THE QUARTER

1 - ITEM 2 EVENT 3 APPROVAL 4 AMOUNT 5 BEGINNING OF PAYMENT 6 TYPE OF SHARE 7 AMOUNT PER SHARE

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | June
30, 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 1
- CVM COD | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001-39 |

01.09 SUBSCRIBED CAPITAL AND CHANGES IN THE CURRENT YEAR

1 ITEM 2 DATE OF CHANGE 3 AMOUNT OF CAPITAL (IN THOUSANDS OF REAIS) 4 AMOUNT OF CHANGE (IN THOUSANDS OF REAIS) 5 ORIGIN OF CHANGE 7 - NUMBER OF SHARES ISSUED (THOUSAND) 8 SHARE PRICE ON ISSUANCE DATE (IN REAIS)

01.10 INVESTOR RELATIONS DIRECTOR

1 DATE 07.31.2003 2 SIGNATURE

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | June
30, 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 1
CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕ ES S.A. | 33.256.439/0001-39 |

02.01 - BALANCE SHEETS - ASSETS (Thousands of Brazilian reais R$)

| 1
CODE | 2
DESCRIPTION | 06.30.2003 (unaudited) | 03.31.2003 (unaudited) |
| --- | --- | --- | --- |
| 1 | Total
assets | 1,748,893 | 1,699,098 |
| 1.01 | Current
assets | 84,529 | 81,661 |
| 1.01.01 | Cash
and cash equivalents | 70,967 | 67,609 |
| 1.01.01.01 | Cash
and banks | 183 | 71 |
| 1.01.01.02 | Temporary
cash investments | 70,784 | 67,538 |
| 1.01.02 | Receivables | 0 | 0 |
| 1.01.02.01 | Trade
accounts receivable | 0 | 0 |
| 1.01.02.02 | Dividends
receivable | 0 | 0 |
| 1.01.03 | Inventories | 0 | 0 |
| 1.01.04 | Other | 13,562 | 14,052 |
| 1.01.04.01 | Recoverable
taxes | 13,556 | 13,819 |
| 1.01.04.02 | Prepaid
expenses | 0 | 0 |
| 1.01.04.03 | Other
receivables | 6 | 233 |
| 1.02 | Noncurrent
ass ets | 54,221 | 56,049 |
| 1.02.01 | Accounts
receivable | 0 | 0 |
| 1.02.02 | Receivables
from related parties | 51,963 | 53,949 |
| 1.02.02.01 | Affiliates | 0 | 0 |
| 1.02.02.02 | Subsidiaries | 51,897 | 53,883 |
| 1.02.02.03 | Other
related parties | 66 | 66 |
| 1.02.03 | Other | 2,258 | 2,100 |
| 1.02.03.01 | Deferred
income and social contribution taxes | 2,258 | 2,100 |
| 1.03 | Permanent
assets | 1,610,143 | 1,561,388 |
| 1.03.01 | Investments | 1,610,143 | 1,561,388 |
| 1.03.01.01 | Investments
in affiliates | 152 | 149 |
| 1.03.01.02 | Investments
in subsidiaries | 1,609,802 | 1,561,053 |
| 1.03.01.03 | Other
investments | 189 | 186 |
| 1.03.02 | Property,
plant and equipment | 0 | 0 |
| 1.03.03 | Deferred
charges | 0 | 0 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | June
30, 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846-5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001-39 |

02.02 - BALANCE SHEETS - LIABILITIES AND STOCKHOLDERS' EQUITY (Thousands of Brazilian reais R$)

| 1
CODE | 2
DESCRIPTION | 06.30.2003 (unaudited) | 03.31.2003 (unaudited) |
| --- | --- | --- | --- |
| 2 | Total
liabilities and stockholders' equity | 1,748,893 | 1,699,098 |
| 2.01 | Current
liabilities | 326 | 506 |
| 2.01.01 | Loans
and financing | 0 | 0 |
| 2.01.02 | Debentures | 0 | 0 |
| 2.01.03 | Suppliers | 48 | 43 |
| 2.01.04 | Taxes
payable | 26 | 24 |
| 2.01.05 | Dividends | 10 | 337 |
| 2.01.06 | Accruals | 242 | 102 |
| 2.01.06.01 | Income
and social contribution taxes | 0 | 0 |
| 2.01.06.02 | Salaries
and payroll charges | 242 | 102 |
| 2.01.07 | Payables
to related parties | 0 | 0 |
| 2.01.08 | Other | 0 | 0 |
| 2.01.08.01 | Other
accounts payables | 0 | 0 |
| 2.02 | Long-term
liabilities | 447,534 | 447,581 |
| 2.02.01 | Loans
and financing | 0 | 0 |
| 2.02.02 | Debentures | 0 | 0 |
| 2.02.03 | Accruals | 6,458 | 6,071 |
| 2.02.03.01 | Income
and social contribution taxes | 0 | 0 |
| 2.02.03.02 | Other
taxes | 6,458 | 6,071 |
| 2.02.04 | Payables
to related parties | 441,076 | 441,510 |
| 2.02.05 | Other | 0 | 0 |
| 2.03 | Deferred
income | 0 | 0 |
| 2.05 | Stockholders
equity | 1,301,033 | 1,251,011 |
| 2.05.01 | Capital | 663,952 | 663,952 |
| 2.05.02 | Capital
reserves | 0 | 0 |
| 2.05.03 | Revaluation
reserves | 25,151 | 25,593 |
| 2.05.03.01 | Own
assets | 0 | 0 |
| 2.05.03.02 | Subsidiaries/
affiliates | 25,151 | 25,593 |
| 2.05.04 | Profit
reserves | 499,610 | 501,096 |
| 2.05.04.01 | Legal | 28,546 | 28,546 |
| 2.05.04.02 | Statutory | 0 | 0 |
| 2.05.04.03 | For
contingencies | 0 | 0 |
| 2.05.04.04 | Unrealized
profit | 40,592 | 40,592 |
| 2.05.04.05 | Retention
of profits | 432,356 | 432,356 |
| 2.05.04.06 | Special
for undistributed dividends | 0 | 0 |
| 2.05.04.07 | Other
profit res erves | (1,884) | (398) |
| 2.05.04.07.01 | Treasury
shares | (1,884) | (398) |
| 2.05.05 | Retained
earnings/accumulated deficit | 112,320 | 60,370 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | June
30, 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846-5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001-39 |

03.01 - STATEMENTS OF INCOME (Thousands of Brazilian reais R$) (unaudited)

| 1
- CODE | 2
DESCRIPTION | 3
04.01.2003 to
06.30.2003 | 4
01.01.2003 to
06.30.2003 | 5
04.01.2002 to
06.30.2002 | 6
01.01.2002 to
06.30.2002 |
| --- | --- | --- | --- | --- | --- |
| 3.01 | Gross
sales and services | 0 | 0 | 0 | 0 |
| 3.02 | Deductions
from gross sales and services | 0 | 0 | 0 | 0 |
| 3.03 | Net
sales and services | 0 | 0 | 0 | 0 |
| 3.04 | Cost
of sales and services | 0 | 0 | 0 | 0 |
| 3.05 | Gross
profit | 0 | 0 | 0 | 0 |
| 3.06 | Operating
income/expenses | 53,032 | 114,153 | 43,843 | 68,864 |
| 3.06.01 | Selling | 0 | 0 | 0 | 0 |
| 3.06.02 | General
and administrative | (845) | (1,502) | (754) | (1,265) |
| 3.06.03 | Financial | 4,084 | 7,680 | 3,040 | 5,419 |
| 3.06.03.01 | Financial
income | 3,509 | 7,817 | 3,361 | 6,311 |
| 3.06.03.02 | Financial
expenses | 575 | (137) | (321) | (892) |
| 3.06.04 | Other
operating income | 933 | 1,445 | 1,166 | 1,367 |
| 3.06.05 | Other
operating expenses | 0 | 0 | 0 | 0 |
| 3.06.06 | Equity
in subsidiaries and affiliates | 48,860 | 106,530 | 40,391 | 63,343 |
| 3.07 | Income
from operations | 53,032 | 114,153 | 43,843 | 68,864 |
| 3.08 | Nonoperating
income (expenses) | 0 | (3) | (3) | (3) |
| 3.08.01 | Income | 0 | 0 | 0 | 0 |
| 3.08.02 | Expenses | 0 | (3) | (3) | (3) |
| 3.09 | Income
before taxes and profit sharing | 53,032 | 114,150 | 43,840 | 68,861 |
| 3.10 | Provision
for income and social contribution taxes | (1,578) | (2,802) | (1,272) | (2,072) |
| 3.11 | Deferred
income tax | 158 | 225 | 104 | 217 |
| 3.12 | Statutory
profit sharing/contributions | 0 | 0 | 0 | 0 |
| 3.12.01 | Profit
sharing | 0 | 0 | 0 | 0 |
| 3.12.02 | Contributions | 0 | 0 | 0 | 0 |
| 3.13 | Reversal
of interest on capital | 0 | 0 | 0 | 0 |
| 3.15 | Net
income | 51,612 | 111,573 | 42,672 | 67,006 |
| | Number
of shares, excluding treasury shares (in | 69,607,469 | 69,607,469 | 52,979,800 | 52,979,800 |
| | Earnings
per share thousands) | 0.00074 | 0.00160 | 0.00081 | 0.00126 |
| | Loss
per share | 0 | 0 | 0 | 0 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

1. OPERATIONS

The Company invests in commercial and industrial activities, and also subscribes to or purchases shares and quotas of other companies with similar activities.

Through its subsidiaries, the Company distributes liquefied petroleum gas - LPG in Brazil, produces and sells chemical and petrochemical products, and provides transportation and storage services for LPG and chemical products.

2. PRESENTATION OF QUARTERLY INFORMATION

As established by Brazilian Securities Commission (CVM) Instruction No. 248 of March 29, 1996, and CVM Guidance Opinion No. 29 of April 11, 1996, the quarterly information (ITR) is being presented in accordance with Brazilian corporate law.

3. ACCOUNTING PRACTICES AND CONSOLIDATION CRITERIA

In the preparation of the quarterly information , the Company has applied the same accounting practices adopted in the preparation of the financial statements as of December 31, 2002, which are in accordance with standards established by the CVM and comply with accounting practices adopted in Brazil .

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

3.1 CONSOLIDATION CRITERIA

The consolidated financial statements were prepared in accordance with the basic consolidation principles of Brazilian corporate law and standards established by the CVM and include the following direct and indirect subsidiaries:

| | Ownership
interest - % — Direct | Indirect |
| --- | --- | --- |
| Ultragaz
Participações Ltda. | 100 | - |
| Companhia
Ultragaz S.A. | - | 86 |
| Bahiana
Distribuidora de Gás Ltda. | - | 100 |
| Utingás
Armazenadora S.A. | - | 56 |
| LPG
International Inc. | - | 100 |
| Ultraquímica
Participações Ltda. | 100 | - |
| Melamina
Ultra S.A. Indústria Química. | - | 93 |
| Oleoquímica
do Nordeste Ltda. | - | 100 |
| Oxiteno
S.A. Indústria e Comércio. | 100 | - |
| Oxiteno
Nordeste S.A. Ind. e Com. | - | 99 |
| Oxiteno
International Co. | - | 100 |
| Oxiteno
Overseas Co. | - | 100 |
| Ultracargo
Participações Ltda. | 100 | - |
| Transultra
- Armazenamento e Transporte Especializado
Ltda. | - | 100 |
| Terminal
Químico de Aratu S.A. Tequimar. | - | 99 |
| Ultratecno
Participações Ltda. | 100 | - |
| Imaven
Imóveis e Agropecuária Ltda. | 100 | - |

Intercompany investments, asset and liability balances, income and expenses, as well as the effects arising from significant intercompany transactions, were eliminated. Minority interest in subsidiary companies is presented separately in the financial statements.

On April 16, 2002, the subsidiary Oxiteno S.A. Indústria e Comércio acquired, through public offer, 93,871 shares from Oxiteno Nordeste S.A. Indústria e Comércio; as a result, Oxiteno Nordeste S.A. Indústria e Comércio registration with CVM as a publicly-held company was canceled.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

4. CORPORATE REORGANIZATION

In 2002, the Company undertook a corporate reorganization, disclosed in a relevant fact published on October 15, 2002, and approved at th e Extraordinary Stockholders Meeting on October 30, 2002. This reorganization was primarily aimed at: (i) streamlining the corporate structure of subsidiaries and affiliated companies, (ii) cost rationalization, and (iii) concentration of capital market liquidity in one company.

The main effects of the reorganization were:

I) Merger of Gipóia Participações S/C Ltda.: increase of the Companys interest in Ultragaz Participações Ltda, from 77% to 100% of total capital, with the issuance of 7,850,603,880 com mon shares.

II) Merger of Oxiteno S.A. - Indústria e Comércio Shares: increase of the Companys interest in Oxiteno S.A. - Indústria e Comércio from 48% to 100% of total capital. With the merger, 5,430,005,398 common shares and 3,410,659,550 preferred shar es were issued by the Company to the stockholders of Oxiteno S.A. - Indústria e Comércio, who opted to remain with the Company. The dissident stockholders of Oxiteno S.A. - Indústria e Comércio were paid a total of R$ 208,028, net of withholding income tax.

The corporate reorganization was based on the balance sheets as of June 30, 2002. As a consequence, the Company had full participation in the results of Ultragaz Participações Ltda. and Oxiteno S.A. - Indústria e Comércio beginning July 1, 2002.

On December 26, 2002, Oxiteno S.A. - Indústria e Comércio registration as a publicly-held company, was canceled.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

5. TEMPORARY CASH INVESTMENTS

These investments, contracted with first-line banks, are substantially comprised of fixed income securities, funds linked to interbank deposit (CDI) rates and currency hedge, which are stated at cost plus acrrued income (on a pro rata temporis basis).

	Company — 06.30.2003	03.31.2003	Consolidated — 06.30.2003		03.31.2003
Fixed
income securities and funds	70,784	67,538	567,201		439,979
Foreign
investments (*)	-	-	103,448		120,703
Currency
hedge (**)	-	-	(41,336	)	14,114
	70,784	67,538	629,313		574,796

(*) Investments made by the indirect subsidiary Oxiteno Overseas Co., principally in money market funds, high grade US corporate securities, and Brazilian corporate securities.

(**) Accumulated gain or loss on swap posit ions. The total amount hedged through these swaps is US$ 135,083 thousand.

6. ACCOUNTS RECEIVABLE

	Consolidated — 06.30.2003		03.31.2003
Local
customers	244,940		277,378
Foreign
customers	82,512		93,285
Advances
on foreign exchange contracts	(41,270	)	(40,319	)
Allowance
for doubtful accounts	(9,109	)	(9,259	)
	277,073		321,085

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846-5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

7. INVENTORIES

	Consolidated — 06.30.2003	03.31.2003
Finished
products	83,561	69,723
Raw
materials	28,586	22,907
Liquefied
petroleum gas (LPG)	19,151	20,005
Consumption
materials and cylinders for resale	9,623	10,970
	140,921	123,605

8. RECOVERABLE TAXES

Represented, substantially, by credit balances of State Value - Added Tax - ICMS, Federal Value - Added Tax - IPI, and prepaid income and social contribution taxes available for offset against future taxes payable.

	Consolidated — 06.30.2003	03.31.2003
Income
and social contribution taxes	50,815	58,547
ICMS
(State VAT)	48,972	38,763
IPI
(Federal VAT)	7,760	5,623
Other	3,532	2,900
	111,079	105,833

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

9. RELATED COMPANIES

| | Company — Loans | | Consolidated — Loans | | Trade
accounts | |
| --- | --- | --- | --- | --- | --- | --- |
| | Assets | Liabilities | Assets | Liabilities | Receivable | Payable |
| Ultraquímica
Participações Ltda. | 30 | 387,160 | - | - | - | - |
| Serma
Associação dos Usuários de | | | | | | |
| Equipamentos
de Processamentos de Dados e | | | | | | |
| Serviços
Correlatos | - | 904 | - | 904 | - | 596 |
| Petroquímica
União S.A. | - | - | - | - | - | 3,944 |
| Oxicap
Indústria de Gases Ltda. | - | - | - | - | | 548 |
| Agip
do Brasil S.A. | - | - | - | - | 115 | - |
| Companhia
Ultragaz S.A. | 51,867 | - | - | - | - | - |
| Ultracargo
Participações Ltda. | - | 2,129 | - | - | - | - |
| Química
da Bahia Indústria eComércio S.A. | - | - | - | 6,962 | - | - |
| Imaven
Imóveis e Agropecuária Ltda. | - | 22,673 | - | - | - | - |
| Petróleo
Brasileiro S.A. Petrobras | - | - | - | - | - | 14,301 |
| Copagaz
Distribuidora de Gás Ltda. | - | - | - | - | 16 | - |
| Oleoquímica
do Nordeste Ltda. | - | 27,563 | - | - | - | - |
| Braskem
S.A. | - | - | - | - | - | 10,968 |
| Supergasbras
Distribuidora de Gás S.A. | - | - | - | - | 51 | - |
| Cia.
Termelétrica do Planalto Paulista TPP | - | - | 1,133 | - | - | - |
| Sociedade
Butano Ltda. | - | - | - | - | 30 | - |
| Plenogás
Distribuidora de Gás S.A. | - | - | - | 969 | - | - |
| Other | 66 | 647 | 490 | 256 | 55 | 399 |
| Total
as of June 30, 2003 | 51,963 | 441,076 | 1,623 | 9,091 | 267 | 30,756 |
| Total
as of March 31, 2003 | 53,949 | 441,510 | 2,245 | 9,366 | 325 | 62,925 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

	Consolidated — Transactions		Financial
	Sales	Purchases	income
(expense)
Petroquímica
União S.A.	-	52,591	-
Oxicap
Indústria de Gases Ltda.	2	3,186	-
Agip
do Brasil S.A.	1,279	-	-
Companhia
Ultragaz S.A.	-	-	-
Ultracargo
Participações Ltda.	-	-	-
Ultratecno
Participações Ltda.	-	-	-
Química
da Bahia Indústria e Comércio S.A.	-	-	(370	)
Petróleo
Brasileiro S.A. Petrobras	42	878,178	-
Petrobras
Distribuidora S.A.	-	-	-
Copagaz
Distribuidora de Gás Ltda.	239	-	-
Oleoquímica
do Nordeste Ltda.	-	-	-
Braskem
S.A.	22,974	227,749	-
Supergasbras
Distribuidora de Gás S.A.	477	-	-
Cia.
Termelétrica do Planalto Paulista TPP	-	-	83
Plenogás
- Distribuidora de Gás S.A.	-	-	-
Other	513	596	-
Total
as of June 30, 2003	25,526	1,162,300	(287	)
Total
as of June, 30 2002	16,594	693,865	(250	)

The loan balances with Química da Bahia Indústria e Comércio S.A. and Cia. Termelétrica do Planalto Paulista - TPP are indexed based on the Brazilian long-term interest rate (TJLP). The other loans do not have financial charges nor determined maturity dates. Transactions refer principally to purchases of raw material, other materials and storage services, carried out at usual market prices and conditions.

The loan agreement with Ultraquímica Participações Ltda. results from the sale of shares issued by Oxiteno S.A. Indústria e Comércio to th e Company, intended to avoid the reciprocal shareholdings due to the corporate reorganization, mentioned in Note 4.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

10. INCOME AND SOCIAL CONTRIBUTION TAXES

a) Deferred income and social contribution taxes

The Company and its subsidiaries recognize deferred tax assets and liabilities which do not expire, arising from tax loss carryforwards, temporary add-backs, revaluation of property, plant and equipment, and others. The tax credits are substantiated by continued operating profitability. Management expects to realize these tax credits over a maximum period of three years. Deferred income and social contribution taxes are presented in the following principal categories:

	Company — 06.30.2003	03.31.2003	Consolidated — 06.30.2003	03.31.2003
Noncurrent
assets:
Deferred
income and social contribution taxes
on:
Accruals
tax-deductible only when the expenses are incurred	2,258	2,100	32,853	30,896
Income
and social contribution tax loss carryforwards	-	-	5,404	7,473
	2,258	2,100	38,257	38,369
Long-term
liabilities:
Deferred
income and social contribution taxes
on:
Revaluation
of property plant and equipment	-	-	1,912	2,013
Income
earned abroad	-	-	28,249	33,203
	-	-	30,161	35,216

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

b) Reconciliation of income and social contribution taxes in the statement of income

Income and social contribution taxes are reconciled to official tax rates as follows:

	Company				Consolidated
	Six
months ended June 30
	2003		2002		2003		2002
Income
before taxes, equity in subsidiaries and
affiliates
and minority interest	7,620		5,518		142,248		142,006
Official
tax rates - %	34.00		34.00		34.00		34.00
Income
and social contribution taxes at official rates	(2,591	)	(1,876	)	(48,364	)	(48,282	)
Adjustments
to the effective tax rate:
Operating
provisions and nondeductible expenses/nontaxable revenues	14		21		(5,134	)	1,118
Adjustment
to estimated income	-		-		774		1,544
Other	-		-		(269	)	(247	)
Income
and social contribution taxes before tax benefits	(2,577	)	(1,855	)	(52,993	)	(45,867	)
Tax
benefits
Workers
meal program (PAT)	-		-		246		566
Cultural
incentives	-		-		100		67
Income
and social contribution taxes in the statement
of income	(2,577	)	(1,855	)	(52,647	)	(45,234	)
Current	(2,802	)	(2,072	)	(62,277	)	(51,731	)
Deferred	225		217		9,630		6,497

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

c) Tax exemption

The following indirect subsidiaries have partial or total exemption from income tax in connection with a government program for the development of the Northeast region of Brazil, as follows:

| Subsidiary | Units | Exemption
- % | Expiration — date |
| --- | --- | --- | --- |
| Oxiteno
Nordeste S.A. Indústria e Comércio | Camaçari
plant | 100 | 2006 |
| Bahiana
Distribuidora de Gás Ltda. | Mataripe
base | 100 | 2003 |
| | Juazeiro
base | 100 | 2004 |
| | Suape
base | 100 | 2007 |
| | Ilhéus
base | 37,5 | 2003 |
| | Aracaju
base | 37,5 | 2003 |
| Terminal
Químico de Aratu S.A. Tequimar | Aratu
terminal | 100 | 2003 |
| | Suape
terminal (acetic acid | | |
| | and
butadiene byproducts) | 100 | 2005 |

Tax benefits from income tax exemptions are recorded in a specific capital reserve account in stockholders equity by the subsidiaries. These benefits are recognized in income by the Company through the equity pick-up, as shown in note 11.

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

11. INVESTMENTS

| | | | Equity
in subsidiaries and | | |
| --- | --- | --- | --- | --- | --- |
| | | | affiliates | | |
| | Investments | | Six
months ended June 30 | | |
| | 06.30.2003 | 03.31.2003 | 2003 | 2002 | |
| Ultragaz
Participações Ltda. | 211,888 | 198,772 | 9,912 | 19,583 | |
| Ultraquímica
Participações Ltda. | 514,475 | 513,281 | 2,071 | 36,146 | |
| Ultracargo
Participações Ltda. | 110,863 | 106,316 | 8,959 | 5,160 | |
| Ultratecno
Participações Ltda. | 8,732 | 8,630 | 112 | (83 | ) |
| Oxiteno
S.A. - Indústria e Comércio. | 719,442 | 690,894 | 83,052 | - | |
| Imaven
Imóveis e Agropecuária Ltda. | 44,402 | 43,160 | 2,416 | 2,353 | |
| Imaven
II Agropecuária S.A. | 152 | 149 | 8 | - | |
| Ultradata
S/C Ltda. | - | - | - | 184 | |
| Others. | 189 | 186 | - | - | |
| | 1,610,143 | 1,561,388 | 106,530 | 63,343 | |

In November 2002, Ultradata S/C Ltda. was merged into Ultraquím ica Partcipações Ltda.

The consolidated amount of equity in the results of subsidiaries and affiliated companies presented in the statement of income includes R$ 11,186 for the quarter and R$ 24,075 for the sixmonth period ended June 30, 2003 (2002- R$ 7,493 for the quarter and R$ 13,925 for the six-month period) of income tax incentives arising substantially from operations in regions eligible for such incentives.

In the consolidated financial statements, the investment of Oxiteno S.A. - Indústria e Comér cio in affiliated company Oxicap Indústria de Gases Ltda. is carried under the equity method, based on their financial statements as of May 31, 2003.

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| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

12. PROPERTY, PLANT AND EQUIPMENT (CONSOLIDATED)

			06.30.2003			03.31.2003
	Annual
	depreciation		Accumulated			Net
book
	rates
- %	Revalued
cost	depreciation		Net
book value	value
Land	-	47,742	-		47,742	47,623
Buildings	4	330,451	(116,150	)	214,301	210,471
Machinery
and equipment	5
to 10	823,226	(404,134	)	419,092	401,108
Vehicles	20
to 30	115,094	(77,572	)	37,522	36,761
Furniture
and fixtures	10	12,812	(4,666	)	8,146	7,751
Construction
in progress	-	32,380	-		32,380	41,294
Other	10
to 20	78,627	(30,142	)	48,485	46,189
		1,440,332	(632,664	)	807,668	791,197

Construction in progress refers basically to renovations of the subsidiaries plants. Other items primarily comprise computer equipment and commercial property rights.

13. DEFERRED CHARGES (CONSOLIDATED)

Represented substantially by costs incurred in the implementation of system modernization projects in the amount of R$ 23,141 (as of March 31, 2003 - R$ 24,051), being amortized over five to ten years, and in the installation of Ultrasystem equipment at customers premises in the amount of R$ 55,447 (as of March 31, 2003 - R$ 56,829), amortized over the periods of the LPG supply contracts with these customers.

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

14. FINANCING (CONSOLIDATED)

					Annual
				Index/	interest
Description	06.30.200		03.31.200	Currency	rate
- %	Maturity
and
	3		3			amortization
Foreign
currency:
International
Finance
Corporation
IFC	7,206		17,224	US$	9.38	Semiannually
to 2003
Syndicated
loan	172,696		205,262	US$	7.15	Semiannually
to 2004
Financing
for inventories and
property
additions	11,158		14,870	US$	From 7.3 to 9.68	Semiannually
and
						annually
to 2004
Advances
on foreign exchange	77,556		113,551	US$	From
1.55 to 10.5	Maximum
of 175 days
contracts
National
Bank for Economic and	25,048		27,975	UMBNDE	From
10.36 to	Monthly
to 2008
Social
Development (BNDES)				S	12.34
BNDES
Exim	-		16,949	US$	5.25	Quarterly
to 2003.
Export
prepayments, net of						Monthly,
semiannually
linked
operations	173,044		48,863	US$	From
4.1 to 16.3	and
annually to 2006
Subtotal	466,708		444,694
Local
currency:
BNDES	157,236		158,591	TJLP	From
1.5 to 5.0	Monthly
BNDES	17,964		17,728	IGP
M	6.5	Semiannually
to 2008
FINAME	26,954		21,078	TJLP	From
1.8 to 3.9	Monthly
to 2008
Onlending
operations	2,519		-	TJLP	-	Monthly
to 2009
Other	20		19		Various
Subtotal	204,693		197,416
Total
financing	671,401		642,110
Current
liabilities	(201,146	)	(291,218	)
Long-term
liabilities	470,255		350,892

TJLP = long-term interest rate

IGP-M = general market price index

UMBNDES = BNDES monetary unit

FINAME = government agency for machinery and equipment financing

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| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

The long-term portion matures as follows:

	06.30.2003	03.31.2003
From
1 to 2 years	330,644	263,364
From
2 to 3 years	95,519	44,751
From
3 to 4 years	33,094	32,431
Over
4 years	10,998	10,346
	470,255	350,892

In June 1997, the subsidiary Companhia Ultragaz S.A. issued Eurobonds in the total amount of US$ 60 million, maturing in 2005, with put/call options in 2002, and guaranteed by Ultrapar Participações S.A. and Ultragaz Participações Ltda. In June 2002, the indirect subsidiary LPG International Inc. exercised the call option for these securities by using funds from a syndicated loan maturing in August 2004.

The outstanding balance of the loan from International Finance Corporation - IFC to the indirect subsidiary Oxiteno Nordeste S.A. - Indústria e Comércio is equivalent to US$ 2,5 million and matures in 2003. The loan was earmarked for the expansion and modernization of the Camaçari plant in the state of Bahia, which started activities in 1997.

The financing is collateralized by liens on property, plant and equipment, shareholdings, and by promissory notes and sureties provided by the Company and its subsidiaries.

15. OTHER TAXES (CONSOLIDATED)

The Company and its subsidiaries obtained preliminary injunctions to pay taxes on revenues (PIS and COFINS) without the changes introduced by Law No. 9,718/98. The Companies are contesting the levy of these taxes on other revenues. The unpaid amounts were accrued in the financial statements of the Company and its subsidiaries and amount to R$ 26,242 (as of March 31, 2003 - R$ 26,394).

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| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

16. STOCKHOLDERS EQUITY

a) Capital

The Company is a listed corporation with shares traded on the São Paulo and New York Stock Exchanges. Subscribed and paid-up capital is represented by 69,691,268,828 shares without par value, comprised of 51,264,621,778 common and 18,426,647,050 preferred shares.

As of June 30, 2003, 4,271,758 preferred shares were outstanding in the foreign market, in the form of American Depositary Receipts - ADRs.

The following table shows the effects of the corporate reorganization detailed in Note 4.

| Events | Capital - R$ | Number
of shares — Common | Preferred | Total |
| --- | --- | --- | --- | --- |
| At
December 31, 2001 | 433,857 | 37,984,012,500 | 15,015,987,500 | 53,000,000,000 |
| Shares
issued for: | | | | |
| Merger
of Gipóia Participações | | | | |
| S/C
Ltda. | 38,527 | 7,850,603,880 | - | 7,850,603,880 |
| Merger
of shares of Oxiteno | | | | |
| S.A.
Indústria e Comércio | 191,568 | 5,430,005,398 | 3,410,659,550 | 8,840,664,948 |
| At
December 31, 2002 | 663,952 | 51,264,621,778 | 18,426,647,050 | 69,691,268,828 |

Preferred shares are nonconvertible into common shares and nonvoting, and entitle their holders to minimum dividends at least 10% higher than those attributable to common shares, and priority in capital redemption, without premium, in the event of liquidation of the Company.

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| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

b) Treasury shares

The Company was authorized to acquire its own shares at market price, without capital reduction, to be held in treasury.

As of June 30, 2003, there were 83,799,760 preferred shares in treasury.

c) Revaluation reserve

This reserve reflects the revaluation write-up of assets of subsidiaries and affiliated companies; realization occurs on depreciation, write-off or sale of the revalued assets and is transferred to retained earnings, net of the related tax effects.

In some cas es, taxes on the revaluation reserves of certain subsidiaries and affiliated companies are recognized only on realization of this reserve since the revaluations occurred prior to the publication of CVM Resolution No. 183/95. Deferred tax charges on these reserves total R$ 10,108 (as of March 31 - R$ 10,237).

17. NONOPERATING EXPENSES (CONSOLIDATED)

Composed substantially by the results on sales of permanent assets, especially on sales of cylinders.

18. RISKS AND FINANCIAL INSTRUMENTS (CONSOLIDATED)

The main risk factors to which the Company and its subsidiaries are exposed reflect strategic -operating and economic -financial aspects. Strategic -operating risks (such as demand behavior, competition, technological innovation, and relevant structural changes in industry, among others) are addressed by the Company management model. Economic -financial risks mainly reflect customer default, macroeconomic variables such as exchange and interest rates, as well as the characteristics of the financial instruments used by the Company. These risks are managed through control policies, specific strategies and the determination of limits, as follows:

o Customer default - These risks are managed by specific policies for accepting customers and credit analysis and are mitigated by diversification of sales. Oxiteno S.A. - Indústria e Comércio and Oxiteno Nordeste S.A. - Indústria e Comércio held R$ 6,760 (as of March 31, 2003 - R$ 6,761) and Companhia Ultragaz S.A., R$ 6,427 (as of March 31, 2003 - R$ 6,847) of allowances for potential losses on receivables.

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

o Interest rates - The Company and its subsidiaries adopt conservative policies to obtain and invest funds and to minimize the cost of capital. The short-term investments of the Company and its subsidiaries are comprised substantially of transactions linked to interbank deposit (CDI) rates, as described in Note 5. A portion of the financial assets is destined for foreign currency hedges, as mentioned below. Funds obtained originate from BNDES financing and from abroad, as mentioned in Note 14.

o Exchange rates - Basically, the subsidiaries use foreign currency hedge instruments available in the financial market to cover their liabilities and assets in foreign currency. Given the volatility of exchange rates during 2001, the Company fully hedged its foreign currency exposure. Such hedges have amounts, periods and indexes equivalent to bank loans in foreign currency, to which they are linked. The following summary shows the assets and liabilities in foreign currency, translated into Brazilian reais at June 30, 2003:

| | Book
value |
| --- | --- |
| Assets: | |
| Currency
hedge transactions and interest | 411,604 |
| Foreign
cash and cash equivalents | 105,155 |
| Receivables
from foreign customers, net of advances | |
| on
export contracts | 32,586 |
| Total | 549,345 |
| Liabilities: | |
| Foreign
currency financing | 466,708 |
| Import
payables | 19,785 |
| Total | 486,493 |
| Net
asset position | 62,852 |

The exchange variation on cash and cash investments of the subsidiary Oxiteno Overseas Co. was recorded as financial expense in the consolidated statement of income for the quarter ended in June 30, 2003, in the amount of R$ 23,988 (financial income in the amount of R$ 19,047 for the quarter ended in June 30, 2002). Other financial instruments recorded in the financial statements as of June 30, 2003 were determ ined in conformity with the accounting criteria and practices described in these notes, except for the interest held by Oxiteno S.A. - Indústria e Comércio in Petroquímica União S.A., mentioned below.

The investment in Petroquímica União S.A., representing 1.95% of total capital, was acquired at a privatization auction held in 1994, and is presented in the financial statements at cost restated through December 31, 1995, amounting to R$ 18,694. The market value of this investment at June 30, 2003, based on the quotation of the investees shares on the Stock Exchange, was approximately R$ 12,460.

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| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

Management believes that no valuation reserve is necessary for this investment, in view of its clear strategic and permanent nature, since the investee is an important supplier of raw material to Oxiteno S.A. - Indústria e Comércio. Also, the acquisition of this investment was made using lo ng-term financing from BNDES, at favorable interest rates compared to those prevailing in the market.

19. INSURANCE COVERAGE FOR SUBSIDIARIES

The subsidiaries maintain insurance policies in amounts considered sufficient to cover potential losses from damage to assets, as well as for civil responsibility for involuntary, material and/or physical damages caused to third parties arising from their industrial and commercial operations, considering the nature of their activities and the advice of their insurance consultants.

20. SURETIES AND GUARANTEES

The Company is responsible for sureties and guarantees offered on behalf of its subsidiaries, amounting to R$ 542,180.

The Company issued guarantees to financial institutions related to amounts owed to those institutions by certain of its customers (vendor financing). In the event of payment of such guarantees to those financial institutions, the Company may recover the amount of such payment directly from its customers through trade collection. Maximum potential future payments related to these guarantees amount to R$ 10,464, with maturities from 30 to 210 days. As of June 30, 2003, the Company has not recorded any liability related to these guarantees.

21. CONTINGENCIES AND COMMITMENTS (CONSOLIDATED)

The Petrochemical Industry Labor Union, which represents the employees of Oxiteno Nordeste S.A. - Indústria e Comércio, filed class action suits against the subsidiary in 1991, demanding compliance with the adjustments established in collective labor agreements or other specific in dexes, in lieu of the salary policies effectively followed. Based on the opinion of its legal counsel, who analyzed the final decision of the Federal Supreme Court on the class action suit in which such Union is a plaintiff, as well as the status of the specific suit against the subsidiary, its management does not believe that it is necessary to record a reserve at June 30, 2003.

The Company and its subsidiaries have other ongoing administrative and judicial proceedings; legal counsel considers the risks to be low or remote and, therefore, no reserves for potential losses on these proceedings have been recorded.

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

The subsidiary Terminal Químico de Aratu S.A - Tequimar has contracts with CODEBA - Companhia Docas do Estado da Bahia and Suape Complexo Industrial Portuário Governador Eraldo Gueiros, in connection with its harbor facilities in Aratu and Suape, respectively. Such contr acts establish minimum cargo movement of 1,000,000 tons per year for Aratu effective through 2022 and 250,000 tons per year for Suape effective through 2027. If annual movement is less than the minimum required, the subsidiary is required to pay the differ ence between the actual movement and the minimum contractual movement using the harbor rates in effect at the date established for payment. As of June 30, 2003, such rates were R$ 3.67 and R$ 3.44 per ton for Aratu and Suape, respectively. The Company has been in compliance with the minimum cargo movement since the inception of the contracts.

Oxiteno Nordeste S.A. - Indústria e Comércio has a supply contract with Braskem S.A. (present name of Copene Petroquímica do Nordeste S.A.) effective through 2012, which establishes a minimum annual ethylene consumption level. The minimum purchase commitment and the actual demand for the periods ended June 30, 2003 and 2002, expressed in tons of ethylene, are summarized below. If the minimum purchase commitment is not met, the subsidiary is liable for a fine of 40% of the current ethylene price for the quantity not purchased.

| | | Demand
for the six-month periods ended | |
| --- | --- | --- | --- |
| | | June
30, | |
| | Minimum
annual | | |
| | purchase
commitment | 2003 | 2002 |
| In
tons | 137,900 | 90,385 | 68,056 |

22. STOCK OPTION PLAN

At the Annual and Extraordinary Meetings held on April 27, 2001, the stockholders approved a Stock Option Plan, to be offered to all managers and employees in positions of responsibility in the Company and its subsidiaries. No options had been granted under this plan as of June 30, 2003.

23. EMPLOYEE BENEFITS AND PRIVATE PENSION PLAN (CONSOLIDATED)

The Company and its subsidiaries offer benefits to their employees, such as life insurance, health care and a pension plan. In addition, they offer loans for the acquisition of vehicles and personal computers to employees of certain subsidiaries. These benefits are recorded on the accrual basis and terminate at the end of the employment relationship.

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(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

04.01 - Notes to the Quarterly Information (Amounts in thousands of Brazilian reais R$ unless otherwise indicated) (unaudited)

In August 2001, the Company and its subsidiaries began to offer their employees a defined contribution pension plan. Adoption of this plan, managed by Ultraprev - Associação de Previdência Complementar, was approved at the Board of Directors Meeting on February 15, 2001. Under the terms of the plan, the basic contribution of each participating employee is defined annually by the participant between 0% and 11% of his/her salary. The sponsoring companies provide a matching contribution in an identical amount as the basic contribution. As participants retire, they may opt to receive monthly: (i) a percentage varying between 0.5% and 1.0% of the fund accumulated in their name at Ultraprev, or (ii) a fixed monthly amount which will extinguish the fund accumulated in the participants name during a period between 5 and 25 years. As such, neither the Company nor its subsidiaries assume responsibility for guaranteeing the levels of amounts or periods of receipt for the participants that retire under this plan. For the period ended June 30, 2003, the Company and its subsidiaries contributed R$ 1,605 to Ultraprev, which was charged to income. The total number of employee participants as of June 30, 2003 was 4,937, with no participants retired to date.

Additionally, Ultraprev has 2 active participants and 34 former employees receiving defined benefits according to the policies of a previous plan. Considering that the fair market value for the plans assets significantly exceeds the present actuarial value of the accumulated benefit obligations, the sponsoring entities have not been contributing to the plan for these 36 participants. On the other hand, the sponsoring entities do not believe that it would be possible to recover any amounts from the plan, based on legislation applicable to closed private pension entities. As a result, no asset or liability relating to these participants has been recorded in the financial statements of the sponsoring companies.

24. SUBSEQUENT EVENT

The Company announced on July 18, 2003, through a relevant fact published in the newspapers Gazeta Mercantil and Valor Econômico, that it has signed a preliminary agreement to acquire the chemical division of the Berci Group (CANAMEX).

CANAMEX is a specialty chemical producer with 2 plants in Mexico (Guadalajara and Coatzacoalcos), an installed production capacity of 52,800 ton/year and the same technological base as the one existing in the surfactant plants of Oxiteno S.A. - Indústria e Comércio. In 2002, CANAMEX reported sales of US$19.0 million and an operating cash generation (EBITDA) of US$2.0 million.

The agreement, which foreces the acquisition of 100% of the assets of the chemical division of the Berci Group (CANAMEX) in a single cash payment of US$ 11.0 million with no assumption of any remaining debt, should be concluded through the signing of a stock purchase and sale agreement. The agreement is still subject to completion of negotiations on a satisfactory basis, a process which is expected to be finalized within two months.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

05.01 Comments on the Companys Performance for the Quarter

See comments on consolidated performance.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

06.01 - CONSOLIDATED BALANCE SHEETS - ASSETS (Thousands of Brazilian reais R$)

| 1
CODE | 2
DESCRIPTION | 06.30.2003 (unaudited) | 03.31.2003 (unaudited) |
| --- | --- | --- | --- |
| 1 | Total
assets | 2,252,373 | 2,187,142 |
| 1.01 | Current
assets | 1,271,973 | 1,227,192 |
| 1.01.01 | Cash
and cash equivalents | 676,295 | 621,821 |
| 1.01.01.01 | Cash
and banks | 46,982 | 47,025 |
| 1.01.01.02 | Tem
porary cash investments | 629,313 | 574,796 |
| 1.01.02 | Receivables | 277,073 | 321,085 |
| 1.01.02.01 | Trade
accounts receivable | 277,073 | 321,085 |
| 1.01.02.02 | Dividends
receivable | 0 | 0 |
| 1.01.03 | Inventories | 140,921 | 123,605 |
| 1.01.04 | Other | 177,684 | 160,681 |
| 1.01.04.01 | Recoverable
taxes | 111,079 | 105,833 |
| 1.01.04.02 | Prepaid
expenses | 3,667 | 5,351 |
| 1.01.04.03 | Other
receivables | 62,938 | 49,497 |
| 1.02 | Noncurrent
assets | 53,538 | 52,639 |
| 1.02.01 | Accounts
receivable | 0 | 0 |
| 1.02.02 | Receivables
from related parties | 1,623 | 2,245 |
| 1.02.02.01 | Affiliates | 0 | 0 |
| 1.02.02.02 | Subsidiaries | 0 | 0 |
| 1.02.02.03 | Other
related parties | 1,623 | 2,245 |
| 1.02.03 | Other | 51,915 | 50,394 |
| 1.02.03.01 | Deferred
income and social contribution taxes | 38,257 | 38,369 |
| 1.02.03.02 | Escrow
deposits | 7,851 | 7,700 |
| 1.02.03.03 | Other
receivables | 5,807 | 4,325 |
| 1.03 | Permanent
assets | 926,862 | 907,311 |
| 1.03.01 | Investments | 33,365 | 32,501 |
| 1.03.01.01 | Investments
in affiliates | 7,310 | 7,172 |
| 1.03.01.02 | Investments
in subsidiaries | 0 | 0 |
| 1.03.01.03 | Other
investments | 26,055 | 25,329 |
| 1.03.02 | Property,
plant an d equipment | 807,668 | 791,197 |
| 1.03.03 | Deferred
charges | 85,829 | 83,613 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

06.02 CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS EQUITY (Thousands of Brazilian reais R$)

| 1
CODE | 2
DESCRIPTION | 06.30.2003 (unaudited) | 03.31.2003 (unaudited) |
| --- | --- | --- | --- |
| 2 | Total
liabilities and stockholders equity | 2,252,373 | 2,187,142 |
| 2.01 | Current
liabilities | 377,546 | 478,342 |
| 2.01.01 | Loans
and financing | 201,146 | 291,218 |
| 2.01.02 | Debentures | 0 | 0 |
| 2.01.03 | Suppliers | 88,685 | 102,611 |
| 2.01.04 | Taxes
payable | 9,258 | 11,306 |
| 2.01.05 | Dividends | 1,741 | 3,640 |
| 2.01.06 | Accruals | 55,600 | 50,279 |
| 2.01.06.01 | Income
and social contribution taxes | 2,748 | 3,369 |
| 2.01.06.02 | Salaries
and payroll charges | 52,852 | 46,910 |
| 2.01.07 | Payables
to related parties | 0 | 0 |
| 2.01.08 | Other | 21,116 | 19,288 |
| 2.02 | Long-term
liabilities | 541,281 | 426,766 |
| 2.02.01 | Loans
and financing | 470,255 | 350,892 |
| 2.02.02 | Debentures | 0 | 0 |
| 2.02.03 | Accruals | 59,320 | 64,262 |
| 2.02.03.01 | Income
and social contribution taxes | 30,161 | 35,216 |
| 2.02.03.02 | Other
taxes | 29,159 | 29,046 |
| 2.02.04 | Payables
to related parties | 9,091 | 9,366 |
| 2.02.05 | Other | 2,615 | 2,246 |
| 2.03 | Deferred
income | 0 | 0 |
| 2.04 | Minority
interest | 32,513 | 31,023 |
| 2.05 | Stockholders
equity | 1,301,033 | 1,251,011 |
| 2.05.01 | Capital | 663,952 | 663,952 |
| 2.05.02 | Capital
reserves | 0 | 0 |
| 2.05.03 | Revaluation
reserves | 25,151 | 25,593 |
| 2.05.03.01 | Own
assets | 0 | 0 |
| 2.05.03.02 | Subsidiaries/
affiliates | 25,151 | 25,593 |
| 2.05.04 | Profit
reserves | 499,610 | 501,096 |
| 2.05.04.01 | Legal | 28,546 | 28,546 |
| 2.05.04.02 | Statutory | 0 | 0 |
| 2.05.04.03 | For
contingencies | 0 | 0 |
| 2.05.04.04 | Unrealized
profit | 40,592 | 40,592 |
| 2.05.04.05 | Retention
of profits | 432,356 | 432,356 |
| 2.05.04.06 | Special
for undistributed dividends | 0 | 0 |
| 2.05.04.07 | Other
profit reserves | (1,884) | (398) |
| 2.05.04.07.01 | Treasury
shares | (1,884) | (398) |
| 2.05.05 | Retained
earnings/accumulated deficit | 112,320 | 60,370 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| 1
- CVM CODE | 2
COMPANY NAME | 3
CORPORATE TAXPAYER NUMBER (CNPJ) |
| --- | --- | --- |
| 01846 -5 | ULTRAPAR
PARTICIPAÇÕES S.A. | 33.256.439/0001 -39 |

07.01 CONSOLIDATED STATEMENTS OF INCOME (Thousands of Brazilian reais R$) (unaudited)

| 1
CODE | 2
DESCRIPTION | 3 04.01.2003 to 06.30.2003 | 4 01.01.2003 to 06.30.2003 | 5 04.01.2002 to 06.30.2002 | 6 01.01.2002 to 06.30.2002 |
| --- | --- | --- | --- | --- | --- |
| 3.01 | Gross
sales and services | 1,124,945 | 2,278,107 | 857,708 | 1,592,165 |
| 3.02 | Revenue
deductions | (192,219) | (411,199) | (183,364) | (338,251) |
| 3.03 | Net
sales and services | 932,726 | 1,866,908 | 674,344 | 1,253,914 |
| 3.04 | Cost
of sales and services | (744,832) | (1,486,533) | (512,931) | (959,878) |
| 3.05 | Gross
profit | 187,894 | 380,375 | 161,413 | 294,036 |
| 3.06 | Operating
income/ expenses | (110,643) | (213,323) | (64,665) | (135,269) |
| 3.06.01 | Selling | (38,124) | (74,958) | (27,501) | (52,201) |
| 3.06.02 | General
and administrative | (65,859) | (132,632) | (61,142) | (115,854) |
| 3.06.02.01 | Depreciation
expense | (22,369) | (44,022) | (20,987) | (39,996) |
| 3.06.02.02 | Other
expenses | (43,490) | (88,610) | (40,155) | (75,858) |
| 3.06.03 | Financial | (19,009) | (31,346) | 14,768 | 15,484 |
| 3.06.03.01 | Financial
income | (70,443) | (67,923) | 81,385 | 103,553 |
| 3.06.03.02 | Financial
expenses | 51,434 | 36,577 | (66,617) | (88,069) |
| 3.06.04 | Other
operating income | 1,122 | 1,873 | 1,500 | 2,283 |
| 3.06.05 | Other
operating expenses | 0 | 0 | 0 | 0 |
| 3.06.06 | Equity
in subsidiaries and affiliates | 11,227 | 23,740 | 7,710 | 15,019 |
| 3.07 | Incom
e from operations | 77,251 | 167,052 | 96,748 | 158,767 |
| 3.08 | Nonoperating
income (expenses) | (162) | (1,064) | (369) | (1,742) |
| 3.08.01 | Income | 945 | 1,780 | 4,958 | 5,619 |
| 3.08.02 | Expenses | (1,107) | (2,844) | (5,327) | (7,361) |
| 3.09 | Income
before taxes and profit sharing | 77,089 | 165,988 | 96,379 | 157,025 |
| 3.10 | Provision
for income and social contribution taxes | (28,693) | (62,277) | (25,738) | (51,731) |
| 3.11 | Deferred
income tax | 4,943 | 9,630 | 2,844 | 6,497 |
| 3.12 | Statutory
profit sharing/contributions | 0 | 0 | 0 | 0 |
| 3.12.01 | Profit
sharing | 0 | 0 | 0 | 0 |
| 3.12.02 | Contributions | 0 | 0 | 0 | 0 |
| 3.13 | Reversal
of interest on capital | 0 | 0 | 0 | 0 |
| 3.14 | Minority
interest | (1,727) | (1,768) | (30,813) | (44,785) |
| 3.15 | Net
income | 51,612 | 111,573 | 42,672 | 67,006 |
| | Number
of shares, excluding treasury shares (in thousands) | 69,607,469 | 69,607,469 | 52,979,800 | 52,979,800 |
| | Earnings
per share | 0.00074 | 0.00160 | 0.00081 | 0.00126 |
| | Loss
per share | 0 | 0 | 0 | 0 |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | March,
31 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 01846-5
Ultrapar Participações S.A. |
| --- |
| 09.01
Investments in subsidiaries and/or affiliates |
| 08.01
- Comments on the Companys Consolidated Performance for the
Quarter |

Net Sales : In 2Q03, Ultrapar reported net sales revenue of R$932.7 million, 38% higher than in the same period of prior year, reflecting the growth in net revenues from the chemical and gas divisions of 56% and 31%, respectively. Ultragazs net revenues were R$616.7 million in 2Q03, while Oxiteno posted net revenues of R$282.2 million. In the first half of 2003, revenues at Ultrapar were R$1,866.9 million, a year over year growth of 49%.

Ultragaz: In 2Q03, the Brazilian LPG market was negatively impacted by the increase in Petrobras LPG prices, by the demand retraction, and by client losses due to competition from natural gas. As a result, the LPG market reported a year over year decline in sales volume of 5.2%. Ultragaz posted 2Q03 sales volume of 310.4 thousand tons, 5.0% lower when compared with 2Q02. In the first half of 2003, Ultragaz recorded a sales volume of 600.2 thousand tons, 5.3% lower when compared with the first half of 2002, while the Brazilian LPG market as a whole was down 7.6% in the same period.

Oxiteno: Oxitenos 2Q03 sales volume was 110.6 thousand tons, a 26% increase in relation to 2Q02. This increase is a reflection of the greater supply of raw material in relation to 2Q02 when Braskem, Oxitenos ethylene supplier in Camaçari, interrupted operations as part of its program to expand production capac ity, restricting Oxitenos ethylene supply in 22% in that quarter, and impacting sales volume, particularly exports. Sales volume to the domestic market was 61.5 thousand tons, a decline of 11% in relation to 2Q02, a reflection of the drop in sales in the polyester and hydraulic fluid segments due to weaker economic activity of these segments this year. Exports were 49.1 thousand tons, a 167% growth compared to the preceding year. In the first half of 2003, Oxitenos sales volume was 228.5 tons, an 18% incr ease compared to the first half of 2002.

Cost of Goods Sold : Cost of goods sold for Ultrapar in 2Q03 was R$744.8 million, 45% higher than reported in the same period for 2002. Ultragaz posted a cost of goods sold of R$519.9 million, a 37% increase in relat ion to 2Q02. The cost of goods sold at Oxiteno in 2Q03 was R$206.2 million, a year over year growth of 66%.

Ultragaz: The increase in Ultragazs cost of goods sold in 2Q03 compared to 2Q02 was due to LPG cost corrections, reflecting foreign exchange rate variation and LPG price levels practiced on the international market. Year over year, average LPG prices charged to the distributors increased 57%.

Oxiteno: In 2Q03, Oxitenos cost of goods sold posted a year over year increase of 66% reflecting increased sales volume together with an increase in variable unit costs, especially those of ethylene which rose 61%.

Gross Profit: As a result of the evolution in net sales and costs described above, Ultrapar posted gross profits of R$187.9 million in 2Q03, 16% above the R$161.4 million for 2Q02. Ultragaz reported gross profits in the quarter of R$96.8 million compared with R$93.1 million in 2Q02. Oxitenos gross profit was R$76.0 million compared with R$56.9 million in the same quarter in 2002.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | March,
31 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 01846-5
Ultrapar Participações S.A. |
| --- |
| 09.01
Investments in subsidiaries and/or affiliates |
| 08.01
- Comments on the Companys Consolidated Performance for the
Quarter |

Selling, General and Administrative Expenses: Ultrapar recorded R$104.0 million in operating expenses in 2Q03 against R$88.6 million for the same period in 2002.

Ultragaz: General, administrative and selling expenses at Ultragaz were R$56.9 million in the quarter, R$3.8 million higher than in 2Q02. This increase was mainly due to the increase in depreciation expenses, that reached R$20.9 million in 2Q03, R$1.2 million higher than in 2Q02, and the increase in personnel expenses, a consequence of collective salary agreements made in September 2002.

Oxiteno: General, administrative and selling expenses were R$39.1 million, an increase of R$8.8 million compared to 2Q02, due to the R$8.5 million increase in selling expenses quarter over quarter, largely due to increased freight expenses, compatible with growth in sales volume, principally exports.

Income from operations : Ultrapars income from operations was R$85.0 million in 2Q03, a 14% increase in relation to 2Q02. Oxiteno reported income from operations of R$36.8 million in the quarter, an increase of 35% compared to 2Q02. At Ultragaz, income from operations remained at the same levels of 2Q02, changing from the R$41.0 million in 2Q02 to R$40.6 million in this quarter. In the first half of 2003, Ultrapars income from operations was R$174.7 million, a year over year increase of 36%.

Financial Income (Expense) : Ultrapar recorded a net financial expense of R$19.0 million in 2Q03 against financial income of R$14.8 million in 2Q02. During the second quarter 2Q03, Ultrapars net cash position remained close to zero. The negative financial result in this quarter is the effect of the Real appreciation on Ultrapars overseas financial investments (therefore in dollar). Ultrapars hedge policy is to protect all of the Companys dollar-denominated liabilities against currency fluctuations. Ultrapars financial income of R$14.8 million reported in 2Q02 is a consequence of Ultrapars net cash position of R$268.7 million in that period and of the Real devaluation in the 2Q02 on our overseas financial investments.

Equity in Subsidiaries and Affliates: Equity in subsidiaries and affliates was R$11.2 million in 2Q03, mainly due to tax incentives enjoyed by Oxiteno Nordeste, Bahiana Distribuidora de Gás and Tequimar. In the first half of 2003, equity in subsidiaries and affiliates was R$23.7 million, mainly generated from tax incentives. The year over year increase of 58% was basically a reflection of the increase in equity of Oxiteno Nordeste, compatible with its improved results.

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | March,
31 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 01846-5
Ultrapar Participações S.A. |
| --- |
| 09.01
Investments in subsidiaries and/or affiliates |
| 08.01
- Comments on the Companys Consolidated Performance for the
Quarter |

Income and Social Contribution Taxes: Income and social contribution tax expenses were R$23.7 million in 2Q03 and R$2 2.9 million in 2Q02. In the first half of 2003 income and social contribution tax expenses were R$52.6 million and R$45.2 million in the same period of 2002. The half over half increase in income and social contribution tax expenses was mainly due to the increase in non-deductible expenses.

Minority Interest: The expenses related to minority interest fell from R$30.8 million in 2Q02 to R$1.7 million in 2Q03. In the first half of 2003, minority interest was R$1.8 million, 96% lower than in the first half of 2002. This reduction reflects the corporate restructuring in the second half of 2002, when Ultrapar incorporated the minority interests of Oxiteno and Ultragaz.

Net Income: Ultrapars net income in 2Q03 was R$51.6 million, 21% higher than the R$42.7 million in 2Q02. In the first half of 2003, net income totaled R$111.6 million, a 67% growth compared to the same period in 2002.

EBITDA: Ultrapars EBITDA for 2Q03 totaled R$118.8 million, 13% higher than the R$104.9 million in 2Q02. Utragazs EBITDA was R$61.6 million, practically at the same level of the same period in 2002, of R$60.7 million. Oxitenos EBITDA was R$45.5 million, 29% higher than recorded for the same period last year as shown below. In the first half of 2003, Ultrapars EBITDA was 29% higher than for the first half of 2002.

EBITDA

| R$
million | 2 Q03 | 2 Q02 | Change | 1 H03 | 1 H02 | Change |
| --- | --- | --- | --- | --- | --- | --- |
| Ultrapar | 118.8 | 104.9 | 13 % | 240.9 | 187.4 | 29 % |
| Ultragaz | 61.6 | 60.7 | 1 % | 97.6 | 109.2 | (11 %) |
| Oxiteno | 45.5 | 35.4 | 29 % | 120.1 | 61.2 | 96 % |
| Ultracargo | 10.1 | 6.9 | 46 % | 20.1 | 14.1 | 43 % |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | March,
31 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 01846-5
Ultrapar Participações S.A. |
| --- |
| 09.01
Investments in subsidiaries and/or affiliates |

| 1-Item | 2
Company Name | 3
- Corporate Taxpayer Number (CNPJ) | 4
- Classification | 5
-% of ownership interest investee | 6
- % of investors net equity | 7
- Type of company | 8
- Number of shares held in the current quarter (in thoustands) | 9
- Number of shares held in the previous quarter (in thousands) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 01 | Ultraquímica | 34.266.973/0 | Closely-held | 100.00 | 39,54 | Commercial, | 2,461 | 2,461 |
| | Participações
Ltda. | 001-99 | subsidiary | | | industrial
and other | | |
| 02 | Ultragaz
Participações Ltda. | 57.651.960/0 | Closely-held | 100.00 | 16,29 | Commercial, | 4,336 | 4,336 |
| | | 001-39 | subsidiary | | | industrial
and other | | |
| 03 | Ultracargo | 55.215.487/0 | Closely-held | 100.00 | 8,52 | Commercial, | 2,857 | 2,857 |
| | Participações
Ltda. | 001-11 | subsidiary | | | industrial
and other | | |
| 04 | Ultratecno | 53.690.921/0 | Closely-held | 100.00 | 0,67 | Commercial, | 65,159 | 65,159 |
| | Participações
Ltda. | 001-90 | subsidiary | | | industrial
and other | | |
| 05 | Imaven | e
61.604.112/0 | Closely-held | 100.00 | 3,41 | Commercial, | 27,734 | 27,734 |
| | Agropecuária
Ltda. | 001-46 | subsidiary | | | industrial
and other | | |
| 06 | Oxiteno
S.A. - Indústria | 62.545.686/0 | Closely-held | 100.00 | 55,30 | Commercial, | 35,102 | 35,102 |
| | e
Comércio | 001-53 | subsidiary | | | industrial
and other | | |

*********** MARKER PAGE="sheet: 1; page: 1"

(Convenience Translation into English from the Original Previously Issued in Portuguese)

| FEDERAL
PUBLIC SERVICE | Corporate
Law |
| --- | --- |
| BRAZILIAN
SECURITIES COMMISSION (CVM) | March,
31 2003 |
| QUARTERLY
INFORMATION (ITR) | |
| COMMERCIAL,
INDUSTRIAL AND OTHER COMPANIES | |

| 01846-5
Ultrapar Participações S.A. |
| --- |
| 17.01
- REPORT ON LIMITED REVIEW UNQUALIFIED |

INDEPENDENT ACCOUNTANTS REVIEW REPORT To the Shareholders and Management of Ultrapar Participações S.A. São Paulo - SP - Brazil

We have reviewed the accompanying quarterly financial information of Ultrapar Participações S.A. (the Company) and subsidiaries as of and for the three and six-month periods ended June 30, 2003 and 2002, prepared under the responsibility of management and in conformity with Brazilian accounting practices, consisting of the balance sheets (Company and consolidated), the statements of income and the performance report, all expressed in Brazilian reais.
We conducted our reviews in accordance with specific standards established by the Brazilian Institute of Independent Auditors (IBRACON) together with the Federal Accounting Council, which consisted principally of: (a) inquiries of and discussions with persons responsible for the accounting, financial and operating areas as to criteria adopted in preparing the quarterly financial information, and (b) review of the information and subsequent events that had or might have had material effects on the financial position and operations of the Company and its subsidiaries.
Based on our reviews, we are not aware of any material modification that should be made to the quarterly financial information referred to in paragraph 1 for it to be in conformity with Brazilian accounting practices and standards issued by the Brazilian Securities Commission (CVM), specifically applicable to the preparation of mandatory quarterly information.
The accompanying quarterly financial information has been translated into English for the convenience of readers outside Brazil.

São Paulo, July 25, 2003

*********** MARKER PAGE="sheet: 1; page: 1"

Index

Group	Table	Description	Page
01	01	Identification	01
01	02	Head
office	01
01	03	Investor
relations director (Company
mailing address)	01
01	04	ITR
reference	01
01	05	Capital
composition	02
01	06	Characteristics
of the Company	02
01	07	Companies
excluded from the consolidated financial statements	02
01	08	Dividends
approved and/or paid during and after the quarter	02
01	09	Subscribed
capital and changes in the current year	03
01	10	Investor
relations director	03
02	01	Balance
sheet assets	04
02	02	Balance
sheet liabilities and stockholders' equity	05
03	01	Statement
of income	06
04	01	Notes
to the quarterly information	07
05	01	Comments
on the Companys performance for the quarter	27
06	01	Consolidated
balance sheet assets	28
06	02	Consolidated
balance sheet liabilities and stockholders equity	29
07	01	Consolidated
statement of income	30
08	01	Comments
on the consolidated performance for the quarter	31
09	01	Investments
in subsidiaries and/or affiliates	34
17	01	Report
on special review unqualified	35
		Ultraquímica
Participações Ltda
		Ultragaz
Participações Ltda
		Ultracargo
Participações Ltda.
		Ultratecno
Participações Ltda.
		Oxiteno
S.A. Indústria e Comércio
		Imaven
Imóveis e Agropecuária Ltda.

*********** MARKER PAGE="sheet: 1; page: 1"

ITEM 3

NOTICE TO SHAREHOLDERS

ULTRAPAR PARTICIPAÇÕES S.A.

CNPJ nº 33.256.439/0001-39

A PUBLICLY HELD COMPANY

DISTRIBUTION OF DIVIDENDS

The Board of Directors of Ultrapar Participações S.A., at its meeting held on August 06, 2003, approved the distribution of dividends, to be paid out of net profit account of the first semester of 2003, in the amount of R$ 33,000,050.88 (thirty three million and fifty reais and eighty eight centavos), to be paid from August 29, 2003 without remuneration or monetary restatement.

The holders of common shares will receive the dividend of R$ 0.461996 and holders of preferred shares will receive the dividend of R$ 0.508195 per thousand shares, already excluded from the calculation shares held as treasury stock.

The record date for dividend rights will be August 18, 2003. Shares will be traded ex-dividend as of August 19, 2003 on the São Paulo Stock Exchange and as of August 14, 2003 on the New York Stock Exchange.

São Paulo, August 07, 2003.

Fabio Schvartsman Investor Relations Director

*********** MARKER PAGE="sheet: 1; page: 1"

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| /s/
Fabio Schvartsman | |
| --- | --- |
| Name: | Fabio
Schvartsman |
| Title: | Chief
Financial Officer |

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