ULTRAPAR HOLDINGS INC

6-K 1 dp39824_6k.htm FORM 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 July, 2013

Commission File Number: 001-14950

ULTRAPAR HOLDINGS INC.

(Translation of Registrant’s 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

ULTRAPAR HOLDINGS INC.

TABLE OF CONTENTS

ITEM

1.	Individual and Consolidated Interim Financial Information for the Three Months Ended June 30, 2013
2.	Earnings release 2Q13
3.	Board of Directors Minutes
4.	Notice to Shareholders
5.	Code of Ethics

Item 1

(Convenience Translation into English from the Original Previously Issued in Portuguese)
Ultrapar Participações S.A. and Subsidiaries Individual and Consolidated Interim Financial Information for the Three-Month Period Ended June 30, 2013 and Report on Review of Interim Financial Information

Ultrapar Participações S.A. and Subsidiaries

Individual and Consolidated Interim Financial Information for the Three-Month Period Ended June 30, 2013

Table of contents

Report on Review of Interim Financial Information	3– 4
Balance sheets	5 – 6
Income statements	7 – 8
Statements of comprehensive income	9 – 10
Statements of changes in equity	11 – 12
Statements of cash flows - Indirect method	13 – 14
Statements of value added	15
Notes to the interim financial information	16 – 94
Management report	95 – 102

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

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

To the Shareholders, Board of Directors and Management of

Ultrapar Participações S.A.

São Paulo - SP

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of Ultrapar Participações S.A. (the “Company”), identified as Parent and Consolidated, respectively, included in the Interim Financial Information Form (ITR), for the three-month period ended June 30, 2013, which comprises the balance sheet as of June 30, 2013 and the related statements of income and comprehensive income for the three and six-month periods then ended and of changes in equity and cash flows for the six-month period then ended, including the explanatory notes.

The Company’s Management is responsible for the preparation of the individual interim financial information in accordance with technical pronouncement CPC 21 (R1) - Interim Financial Information and the consolidated interim financial information in accordance with CPC 21 (R1) and the international standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board - IASB, as well as for the presentation of such information in accordance with the standards issued by the Brazilian Securities Commission (CVM), applicable to the preparation of the Interim Financial Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with Brazilian and international standards on review of interim financial information (NBC TR 2410 and ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion on individual interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying individual interim financial information included in the ITR referred to above was not prepared, in all material respects, in accordance with CPC 21 (R1), applicable to the preparation of the Interim Financial Information (ITR), and presented in accordance with the standards issued by CVM.

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

REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION

Conclusion on consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated interim financial information included in the ITR referred to above was not prepared, in all material respects, in accordance with CPC 21 (R1) and IAS 34, applicable to the preparation of Interim Financial Information (ITR), and presented in accordance with the standards issued by CVM.

Emphasis of matter

Restatement of corresponding amounts

We draw attention to note 2.w) to the interim financial information, which states that due to the changes in the accounting policy for joint ventures and for employee benefits, the individual and consolidated corresponding figures relating to the balance sheet as of December 31, 2012, and the individual and consolidated corresponding interim financial information relating to the statements of income and comprehensive income for the three and six-month periods ended June 30, 2012 and of changes in equity, cash flows and value added (supplemental information) for the six-month period ended June 30, 2012, presented as comparative information, have been adjusted and are restated as required by CPC 23 and IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, and CPC 26 (R1) and IAS 1 (Revised 2007) - Presentation of Financial Statements. Our conclusion is not qualified in respect of this matter.

Other matters

Statements of value added

We have also reviewed the individual and consolidated statements of value added, for the six-month period ended June 30, 2013, prepared under the responsibility of the Company’s Management, the presentation of which is required by the standards issued by the CVM applicable to the preparation of Interim Financial Information (ITR) and considered as supplemental information for International Financial Reporting Standards - IFRS, which do not require the presentation of these statements. These statements were subject to the same review procedures described above, and, based on our review, nothing has come to our attention that causes us to believe that they were not prepared, in all material respects, consistently with the individual and consolidated interim financial information taken as a whole.

The accompanying individual and consolidated interim financial information has been translated into English for the convenience of readers outside Brazil.

São Paulo, July 31, 2013

DELOITTE TOUCHE TOHMATSU	Edimar Facco
Auditores Independentes	Engagement Partner

Ultrapar Participações S.A. and Subsidiaries

Balance sheets

as of June 30, 2013 and December 31, 2012

(In thousands of Brazilian Reais)

Assets	Note	Parent — 06/30/2013	12/31/2012	Consolidated — 06/30/2013	12/31/2012
Current assets
Cash and cash equivalents	4	546,894	76,981	2,060,161	2,021,114
Financial investments	4	33,253	216	1,024,515	961,184
Trade receivables	5	-	-	2,483,474	2,306,521
Inventories	6	-	-	1,396,585	1,290,694
Recoverable taxes	7	45,694	63,266	401,077	477,959
Dividends receivable		179,548	57,014	-	1,292
Other receivables		1,102	314	30,209	20,463
Prepaid expenses	10	-	-	99,633	53,811
Total current assets		806,491	197,791	7,495,654	7,133,038
Non-current assets
Financial investments	4	-	-	104,533	149,530
Trade receivables	5	-	-	130,505	137,359
Related parties	8.a	767,149	781,312	10,858	10,858
Deferred income and social contribution taxes	9.a	7	43	430,623	469,331
Recoverable taxes	7	-	25,999	44,595	49,070
Escrow deposits		148	232	557,896	533,729
Other receivables		-	-	11,750	10,978
Prepaid expenses	10	-	-	83,497	79,652
		767,304	807,586	1,374,257	1,440,507
Investments
In subsidiaries	11.a	5,337,490	5,773,288	-	-
In joint-ventures	11.a;11.b	19,551	19,759	36,709	28,209
In associates	11.c	-	-	13,096	12,670
Other		-	-	2,814	2,814
Property, plant and equipment	12;14.i	-	-	4,686,115	4,667,020
Intangible assets	13	246,163	246,163	1,977,666	1,965,296
		5,603,204	6,039,210	6,716,400	6,676,009
Total non-current assets		6,370,508	6,846,796	8,090,657	8,116,516
Total assets		7,176,999	7,044,587	15,586,311	15,249,554

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Balance sheets

as of June 30, 2013 and December 31, 2012

(In thousands of Brazilian Reais)

Liabilities	Note	Parent — 06/30/2013	12/31/2012		06/30/2013		12/31/2012
Current liabilities
Loans	14	-		-		1,723,259		1,573,031
Debentures	14.g	13,841		50,412		19,433		52,950
Finance leases	14.i	-		-		1,883		1,974
Trade payables	15	39		177		986,259		1,297,735
Salaries and related charges	16	141		138		207,869		252,526
Taxes payable	17	30		3,059		134,598		107,673
Dividends payable	20.g	8,579		213,992		15,295		222,351
Income and social contribution taxes payable		-		-		40,875		75,235
Post-employment benefits	24.b	-		-		10,035		10,035
Provision for assets retirement obligation	18	-		-		3,482		3,719
Provision for tax, civil and labor risks	23.a	-		-		53,017		49,514
Other payables		214		214		13,170		56,453
Deferred revenue	19	-		-		13,059		18,054
Total current liabilities		22,844		267,992		3,222,234		3,721,250
Non-current liabilities
Loans	14	-		-		3,594,038		3,151,689
Debentures	14.g	797,240		795,479		1,397,054		1,395,269
Finance leases	14.i	-		-		43,401		40,939
Related parties	8.a	-		-		3,872		3,872
Deferred income and social contribution taxes	9.a	-		-		85,922		84,924
Provision for tax, civil and labor risks	23.a	524		519		562,666		550,963
Post-employment benefits	24.b	-		-		125,511		118,460
Provision for assets retirement obligation	18	-		-		67,977		66,692
Other payables		-		-		94,109		99,565
Deferred revenue	19	-		-		8,731		9,853
Total non-current liabilities		797,764		795,998		5,983,281		5,522,226
Shareholders’ equity
Share capital	20.a	3,696,773		3,696,773		3,696,773		3,696,773
Capital reserve	20.c	20,246		20,246		20,246		20,246
Revaluation reserve	20.d	6,583		6,713		6,583		6,713
Profit reserves	20.e	2,221,555		2,221,555		2,221,555		2,221,555
Treasury shares	20.b	(114,885	)	(114,885	)	(114,885	)	(114,885	)
Additional dividends to the minimum mandatory dividends	20.g	-		147,195		-		147,195
Retained earnings		530,007		2,994		530,007		2,994
Valuation adjustments	2.c;20.f	(12,602	)	(12,615	)	(12,602	)	(12,615	)
Cumulative translation adjustments	2.r;20.f	8,714		12,621		8,714		12,621
Shareholders’ equity attributable to:
Shareholders of the Company		6,356,391		5,980,597		6,356,391		5,980,597
Non-controlling interests in subsidiaries		-		-		24,405		25,481
Total shareholders’ equity		6,356,391		5,980,597		6,380,796		6,006,078
Total liabilities and shareholders’ equity		7,176,999		7,044,587		15,586,311		15,249,554

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Income statements

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais, except earnings per share)

	Note	Parent — 04/01/2013 to 06/30/2013	01/01/2013 to 06/30/2013		04/01/2012 to 06/30/2012		01/01/2012 to 06/30/2012
Net revenue from sales and services	25	-		-		-		-
Cost of products and services sold	26	-		-		-		-
Gross profit		-		-		-		-
Operating income (expenses)
Selling and marketing	26	-		-		-		-
General and administrative	26	(2,342	)	(5,196	)	(1,895	)	(4,967	)
Income from disposal of assets	27	-		-		-		-
Other operating income, net		2,343		5,246		1,889		4,967
Operating income before financial income (expenses) and share of profit of subsidiaries and joint ventures		1		50		(6	)	-
Financial income	28	28,061		48,602		28,480		63,017
Financial expenses	28	(28,640	)	(45,760	)	(22,550	)	(49,184	)
Share of profit of subsidiaries and joint ventures	11	331,963		584,956		229,008		414,052
Income before income and social contribution taxes		331,385		587,848		234,932		427,885
Income and social contribution taxes
Current	9.b	(49,317	)	(60,908	)	(2,011	)	(4,069	)
Deferred	9.b	(1	)	(36	)	3		(622	)
Tax incentives	9.b;9.c	-		-		-		-
		(49,318	)	(60,944	)	(2,008	)	(4,691	)
Net income for the period		282,067		526,904		232,924		423,194
Net income for the period attributable to:
Shareholders of the Company		282,067		526,904		232,924		423,194
Non-controlling interests in subsidiaries		-		-		-		-
Earnings per share (based on weighted average of shares outstanding) – R$
Basic	29	0.5281		0.9866		0.4362		0.7925
Diluted	29	0.5259		0.9823		0.4344		0.7893

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Income statements

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais, except earnings per share)

	Note	Consolidated — 04/01/2013 to 06/30/2013		01/01/2013 to 06/30/2013		04/01/2012 to 06/30/2012		01/01/2012 to 06/30/2012
Net revenue from sales and services	25	15,204,104		28,804,072		13,037,739		25,428,965
Cost of products and services sold	26	(14,043,739	)	(26,580,121	)	(12,031,174	)	(23,522,746	)
Gross profit		1,160,365		2,223,951		1,006,565		1,906,219
Operating income (expenses)
Selling and marketing	26	(433,957	)	(848,603	)	(393,151	)	(770,255	)
General and administrative	26	(241,864	)	(485,577	)	(216,742	)	(411,262	)
Income from disposal of assets	27	9,188		14,722		(2,772	)	(4,267	)
Other operating income, net		19,532		35,245		13,524		23,070
Operating income before financial income (expenses) and share of profit of joint ventures and associates		513,264		939,738		407,424		743,505
Financial income	28	47,501		100,438		51,809		115,021
Financial expenses	28	(141,723	)	(255,282	)	(138,917	)	(267,536	)
Share of profit of joint ventures and associates	11	(83	)	(2,042	)	2,924		5,968
Income before income and social contribution taxes		418,959		782,852		323,240		596,958
Income and social contribution taxes
Current	9.b	(125,052	)	(244,695	)	(67,341	)	(143,841	)
Deferred	9.b	(22,249	)	(30,051	)	(29,561	)	(43,832	)
Tax incentives	9.b;9.c	12,023		22,100		8,060		16,776
		(135,278	)	(252,646	)	(88,842	)	(170,897	)
Net income for the period		283,681		530,206		234,398		426,061
Net income for the period attributable to:
Shareholders of the Company		282,067		526,904		232,924		423,194
Non-controlling interests in subsidiaries		1,614		3,302		1,474		2,867
Earnings per share (based on weighted average of shares outstanding) – R$
Basic	29	0.5281		0.9866		0.4362		0.7925
Diluted	29	0.5259		0.9823		0.4344		0.7893

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Statements of comprehensive income

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais)

	Note	Parent — 04/01/2013 to 06/30/2013		01/01/2013 to 06/30/2013		04/01/2012 to 06/30/2012	01/01/2012 to 06/30/2012
Net income for the period attributable to shareholders of the Company		282,067		526,904		232,924	423,194
Net income for the period attributable to non-controlling interests in subsidiaries		-		-		-	-
Net income for the period		282,067		526,904		232,924	423,194
Valuation adjustments	2.c;20.f	(6	)	13		21	(162	)
Cumulative translation adjustments	2.r;20.f	20,102		(3,907	)	8,380	9,523
Total comprehensive income for the period		302,163		523,010		241,325	432,555
Total comprehensive income for the period attributable to shareholders of the Company		302,163		523,010		241,325	432,555
Total comprehensive income for the period attributable to non-controlling interest in subsidiaries		-		-		-	-

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Statements of comprehensive income

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais)

	Note	04/01/2013 to 06/30/2013		01/01/2013 to 06/30/2013		04/01/2012 to 06/30/2012	01/01/2012 to 06/30/2012
Net income for the period attributable to shareholders of the Company		282,067		526,904		232,924	423,194
Net income for the period attributable to non-controlling interests in subsidiaries		1,614		3,302		1,474	2,867
Net income for the period		283,681		530,206		234,398	426,061
Valuation adjustments	2.c;20.f	(6	)	13		21	(162	)
Cumulative translation adjustments	2.r;20.f	20,102		(3,907	)	8,380	9,523
Total comprehensive income for the period		303,777		526,312		242,799	435,422
Total comprehensive income for the period attributable to shareholders of the Company		302,163		523,010		241,325	432,555
Total comprehensive income for the period attributable to non-controlling interest in subsidiaries		1,614		3,302		1,474	2,867

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Statements of changes in equity

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais)

	Note	Share capital	Capital reserve	Revalua- tion reserve		Profit reserve — Legal reserve	Investments reserve	Retention of profits	Other comprehensive income — Valuation adjustments		Cumulative translation adjustments	Retained earnings		Treasury shares		Additional dividends to the minimum mandatory dividends		Shareholders’ equity attributable to: — Shareholders of the Company		Non-controlling interests in subsidiaries		Consolidated shareholders’ equity
Balance as of December 31, 2012		3,696,773	20,246	6,713		273,842	614,647	1,333,066	23		12,621	-		(114,885	)	147,195		5,990,241		25,495		6,015,736
Adoption of IAS 19 (CPC 33(R2)) - Employee benefits	2.w	-	-	-		-	-	-	(12,638	)	-	2,994		-		-		(9,644	)	(14	)	(9,658	)
Balance as of December 31, 2012 - restated		3,696,773	20,246	6,713		273,842	614,647	1,333,066	(12,615	)	12,621	2,994		(114,885	)	147,195		5,980,597		25,481		6,006,078
Net income for the period		-	-	-		-	-	-	-		-	526,904		-		-		526,904		3,302		530,206
Other comprehensive income:
Valuation adjustments for financial instruments	2.c; 20.f	-	-	-		-	-	-	13		-	-		-		-		13		-		13
Currency translation of foreign subsidiaries	2.r; 20.f	-	-	-		-	-	-	-		(3,907)	-		-		-		(3,907	)	-		(3,907	)
Total comprehensive income for the period		-	-	-		-	-	-	13		(3,907)	526,904		-		-		523,010		3,302		526,312
Realization of revaluation reserve	20.d	-	-	(130	)	-	-	-	-		-	130		-		-		-		-		-
Income and social contribution taxes on realization of revaluation reserve of subsidiaries	20.d	-	-	-		-	-	-	-		-	(21	)	-		-		(21	)	-		(21	)
Approval of additional dividends by the Shareholders’ Meeting	20.g	-	-	-		-	-	-	-		-	-		-		(147,195	)	(147,195	)	(4,378	)	(151,573	)
Balance as of June 30, 2013		3,696,773	20,246	6,583		273,842	614,647	1,333,066	(12,602	)	8,714	530,007		(114,885	)	-		6,356,391		24,405		6,380,796

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Statements of changes in equity

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais)

	Note	Share capital	Capital reserve	Revaluation reserve	Legal reserve	Investments reserve	Retention of profits	Valuation adjustments		Cumulative translation adjustments		Retained earnings		Treasury shares		Additional dividends to the minimum mandatory dividends		Shareholders of the Company		Non-controlling interests in subsidiaries		Consolidated shareholders’ equity
Balance as of December 31, 2011		3,696,773	9,780	7,075		223,292	281,309	1,333,066	193		(4,426	)	-		(118,234	)	122,239		5,551,067		26,169		5,577,236
Adoption of IAS 19 (CPC 33(R2)) - Employee benefits	2.w	-	-	-		-	-	-	(4,629	)	-		(5,910	)	-		-		(10,539	)	(4	)	(10,543	)
Balance as of December 31, 2011 - restated		3,696,773	9,780	7,075		223,292	281,309	1,333,066	(4,436	)	(4,426	)	(5,910	)	(118,234	)	122,239		5,540,528		26,165		5,566,693
Net income for the period		-	-	-		-	-	-	-		-		423,194		-		-		423,194		2,867		426,061
Other comprehensive income:
Valuation adjustments for financial instruments	2.c; 20.f	-	-	-		-	-	-	(162	)	-		-		-		-		(162	)	-		(162	)
Currency translation of foreign subsidiaries	2.r; 20.f	-	-	-		-	-	-	-		9,523		-		-		-		9,523		-		9,523
Total comprehensive income for the period		-	-	-		-	-	-	(162	)	9,523		423,194		-		-		432,555		2,867		435,422
Realization of revaluation reserve	20.d	-	-	(217	)	-	-	-	-		-		217		-		-		-			-	-
Income and social contribution taxes on realization of revaluation reserve of subsidiaries	20.d	-	-	-		-	-	-	-		-		(52)		-		-		(52)		-		(52	)
Deferred Stock Plan		-	495	-		-	-	-	-		-		-		(1,694	)	-		(1,199)		-		(1,199	)
Approval of additional dividends by the Shareholders' Meeting	20.g	-	-	-		-	-	-	-		-		-		-		(122,239	)	(122,239	)	(2,640	)	(124,879	)
Balance as of June 30, 2012 - restated		3,696,773	10,275	6,858		223,292	281,309	1,333,066	(4,598	)	5,097		417,449		(119,928	)	-		5,849,593		26,392		5,875,985

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Statements of cash flows - Indirect method

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais)

	Note	Parent — 06/30/2013	06/30/2012		06/30/2013	06/30/2012
Cash flows from operating activities
Net income for the period		526,904		423,194		530,206	426,061
Adjustments to reconcile net income to cash provided by operating activities
Share of profit of subsidiaries, joint ventures and associates	11	(584,956	)	(414,052	)	2,042	(5,968	)
Depreciation and amortization	12;13	-		-		382,237	328,157
PIS and COFINS credits on depreciation	12;13	-		-		6,119	5,662
Assets retirement expenses	18	-		-		(1,787)	(828	)
Interest, monetary and exchange variations		31,855		7,515		246,917	333,208
Deferred income and social contribution taxes	9.b	36		622		30,051	43,832
Income from disposal of assets	27	-		-		(14,722)	4,267
Others		-		-		2,638	800
Dividends received from subsidiaries		194,513		267,389		2,904	10,752
(Increase) decrease in current assets
Trade receivables	5	-		-		(173,802)	(157,042	)
Inventories	6	-		-		(106,430)	(4,496	)
Recoverable taxes	7	17,572		7,397		76,882	61,691
Other receivables		(788	)	1,052		(9,746)	(1,372	)
Prepaid expenses	10	-		-		(45,822)	(18,334	)
Increase (decrease) in current liabilities
Trade payables	15	(138	)	(24	)	(311,476)	(99,292	)
Salaries and related charges	16	3		11		(44,657)	(77,255	)
Taxes payable	17	(3,029	)	(2,337	)	26,925	(2,328	)
Income and social contribution taxes		-		-		117,739	69,684
Provision for tax, civil and labor risks	23.a	-		-		3,503	1,266
Other payables		-		-		(43,519)	(23,727	)
Deferred revenue	19	-		-		(4,995)	(743	)
(Increase) decrease in non-current assets
Trade receivables	5	-		-		6,854	5,684
Recoverable taxes	7	25,999		(14,137	)	4,475	(27,933	)
Escrow deposits		84		-		(24,167)	(38,115	)
Other receivables		-		-		(772)	(9,955	)
Prepaid expenses	10	-		-		(3,845)	2,744
Increase (decrease) in non-current liabilities
Post-employment benefits	24.b	-		-		7,051	7,667
Provision for tax, civil and labor risks	23.a	5		19		11,703	21,662
Other payables		-		-		(4,438)	10,959
Deferred revenue	19	-		-		(1,122)	(171	)
Income and social contribution taxes paid		-		-		(152,099)	(54,673	)
Net cash provided by operating activities		208,060		276,649		514,847	811,864

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries Statements of cash flows - Indirect method For the period ended June 30, 2013 and 2012 (In thousands of Brazilian Reais)

	Note	Parent — 06/30/2013		06/30/2012		Consolidated — 06/30/2013		06/30/2012
Cash flows from investing activities
Financial investments, net of redemptions		(33,037	)	(30,371	)	(18,334	)	24,780
Acquisition of subsidiaries, net	3.a	-		-		(6,168	)	-
Acquisition of property, plant and equipment	12	-		-		(234,164	)	(357,465	)
Increase in intangible assets	13	-		-		(178,953	)	(241,439	)
Capital increase in joint ventures	11.b	-		-		(12,580	)	-
Capital reduction to subsidiaries		700,000		-		-		-
Proceeds from disposal of assets	27	-		-		36,923		24,214
Net cash provided by (used in) investing activities		666,963		(30,371	)	(413,276	)	(549,910	)
Cash flows from financing activities
Loans and debentures
Borrowings	14	-		793,485		1,110,776		1,579,603
Repayments	14	-		(800,000	)	(355,518)		(1,636,985	)
Interest paid	14	(66,665)		(25,108	)	(456,865)		(209,678	)
Payment of financial lease	14.i	-		-		(2,232)		(2,309	)
Dividends paid		(352,608)		(272,319	)	(358,625)		(276,432	)
Related parties		14,163		54,151		-		(813	)
Net cash used in financing activities		(405,110)		(249,791	)	(62,464)		(546,614	)
Effect of exchange rate changes on cash and cash equivalents in foreign currency		-		-		(60)		241
Increase (decrease) in cash and cash equivalents		469,913		(3,513	)	39,047		(284,419	)
Cash and cash equivalents at the beginning of the period	4	76,981		178,672		2,021,114		1,765,506
Cash and cash equivalents at the end of the period	4	546,894		175,159		2,060,161		1,481,087

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Statements of value added

For the period ended June 30, 2013 and 2012

(In thousands of Brazilian Reais, except percentages)

	Note	Parent — 06/30/2013	%	06/30/2012	%	Consolidated — 06/30/2013	%	06/30/2012	%
Revenue
Gross revenue from sales and services, except rents and royalties	25	-		-		29,573,196		26,131,833
Rebates, discounts and returns	25	-		-		(129,571)		(121,856	)
Allowance for doubtful accounts - Reversal (allowance)		-		-		(4,273)		(2,379	)
Income from disposal of assets	27	-		-		14,722		(4,267	)
		-		-		29,454,074		26,003,331
Materials purchased from third parties
Raw materials used		-		-		(1,452,498)		(1,314,083	)
Cost of goods, products and services sold		-		-		(25,044,509)		(22,119,941	)
Third-party materials, energy, services and others		(2,871)		(2,596	)	(779,606)		(719,687	)
Reversal of impairment losses		5,246		4,987		7,695		2,610
		2,375		2,391		(27,268,918)		(24,151,101	)
Gross value added		2,375		2,391		2,185,156		1,852,230
Deductions
Depreciation and amortization		-		-		(388,356)		(333,819	)
Net value added by the Company		2,375		2,391		1,796,800		1,518,411
Value added received in transfer
Share of profit of subsidiaries, joint-ventures and associates	11	584,956		414,052		(2,042)		5,968
Rents and royalties	25	-		-		39,455		30,685
Financial income	28	48,602		63,017		100,438		115,021
		633,558		477,069		137,851		151,674
Total value added available for distribution		635,933		479,460		1,934,651		1,670,085
Distribution of value added
Labor and benefits		1,955	-	2,000	-	572,011	30	519,322	31
Taxes, fees and contributions		75,034	12	1,853	-	566,907	29	424,741	25
Financial expenses and rents		32,040	5	52,413	11	265,527	14	299,961	18
Retained earnings		526,904	83	423,194	89	530,206	27	426,061	26
Value added distributed		635,933	100	479,460	100	1,934,651	100	1,670,085	100

The accompanying notes are an integral part of these interim financial information.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Operations

Ultrapar Participações S.A. (“Ultrapar” or “Company”), is a publicly-traded company headquartered at the Brigadeiro Luis Antônio Avenue, 1343 in the city of Săo Paulo – SP, Brazil.

The Company engages in the investment of its own capital in services, commercial and industrial activities, by the subscription or acquisition of shares of other companies. Through its subsidiaries, it operates in the segments of liquefied petroleum gas - LPG distribution (“Ultragaz”), fuel distribution and related businesses (“Ipiranga”), production and marketing of chemicals (“Oxiteno”), and storage services for liquid bulk (“Ultracargo”). The Company also operates in oil refining through its joint-venture in Refinaria de Petróleo Riograndense S.A. (“RPR”).

EFPlaceholder

Summary of significant accounting policies

The Company’s consolidated interim financial information are presented in accordance with International Accounting Standards (“IAS”) 34 – Interim Financial Reporting by the International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and accounting practices adopted in Brazil (“BR GAAP”) in accordance with CPC 21 (R1), as issued by the Accounting Pronouncements Committee (“CPC”) and approved by the Brazilian Securities and Exchange Commission (“CVM”).

The Company’s individual interim financial information are presented in accordance with CPC 21 (R1) of the BR GAAP. The investments in subsidiaries, associates and joint ventures are measured by the equity method of accounting, which, for purposes of IFRS, would be measured at cost or fair value.

The presentation currency of the Company’s individual and consolidated interim financial information is the Brazilian Real (“R$”), which is the Company’s functional currency.

The accounting policies described below were applied by the Company and its subsidiaries in a consistent manner for all periods presented in these individual and consolidated interim financial information.

a. Recognition of income

Revenue and cost of sales are recognized when all risks and benefits associated with the products are transferred to the purchaser. Revenue from services provided and their costs are recognized when the services are provided. Costs of products and services sold provided include goods (mainly fuels/lubricants and LPG), raw materials (chemicals and petrochemicals) and production, distribution, storage and filling costs.

b. Cash and cash equivalents

Include cash, banks deposits and short-term highly-liquid investments that are readily convertible into a known amount of cash and are subject to an insignificant risk of change in value. See Note 4 for further details on cash and cash equivalents of the Company and its subsidiaries.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

c. Financial instruments

In accordance with IAS 32, IAS 39 and IFRS 7 (CPC 38, 39 and 40 (R1)), the financial instruments of the Company and its subsidiaries are classified in accordance with the following categories:

•	Measured at fair value through profit or loss: financial assets and liabilities held for trading, that is, acquired or incurred principally for the purpose of selling or repurchasing in the near term, and derivatives. The balances are stated at fair value. The interest earned, the exchange variation and changes in fair value are recognized in profit or loss.
•	Held to maturity: non-derivative financial assets with fixed or determinable payments, and fixed maturities for which the entity has the positive intention and ability to hold to maturity. The interest earned and the foreign currency exchange variation are recognized in profit or loss, and balances are stated at acquisition cost plus the interest earned, using the effective interest rate method.
•	Available for sale: non-derivative financial assets that are designated as available for sale or that are not classified into other categories at initial recognition. The balances are stated at fair value and the interest earned and the foreign currency exchange variation are recognized in profit or loss. Differences between fair value and acquisition cost plus the interest earned are recognized in a specific account in the shareholders’ equity. Accumulated gains and losses recognized in the shareholders’ equity are reclassified to profit or loss in case of prepayment.
•	Loans and receivables: non-derivative financial assets with fixed or determinable payments or receipts, not quoted in an active market, except: (i) those which the entity intends to sell immediately or in the near term and which the entity classified as measured at fair value through profit or loss; (ii) those classified as available for sale; or (iii) those for which the Company may not recover substantially all of its initial investment for reasons other than credit deterioration. The interest earned and the foreign currency exchange variation are recognized in profit or loss. The balances are stated at acquisition cost plus the interests, using the effective interest rate method. Loans and receivables include cash and banks, trade receivables, dividends receivable and other trade receivables.

The Company and its subsidiaries use derivative financial instruments for hedging purposes, applying the concepts described below:

•	Fair value hedge: derivative financial instrument used to hedge exposure to changes in the fair value of an item, attributable to a particular risk, which can affect the entity’s profit or loss.
•	Hedge accounting: In the initial designation of the fair value hedge, the relationship between the hedging instrument and the hedged item is documented, including the objectives of risk management, the strategy in conducting the transaction and the methods to be used to evaluate its effectiveness. Once the fair value hedge has been qualified as effective, the hedge item is also measured at fair value. Gains and losses from hedge instruments and hedge items are recognized in profit or loss. The hedge accounting must be discontinued when the hedge becomes ineffective.

•

Fair value hedge: derivative financial instrument used to hedge exposure to changes in the fair value of an item, attributable to a particular risk, which can affect the entity’s profit or loss.

•

Hedge accounting: In the initial designation of the fair value hedge, the relationship between the hedging instrument and the hedged item is documented, including the objectives of risk management, the strategy in conducting the transaction and the methods to be used to evaluate its effectiveness. Once the fair value hedge has been qualified as effective, the hedge item is also measured at fair value. Gains and losses from hedge instruments and hedge items are recognized in profit or loss. The hedge accounting must be discontinued when the hedge becomes ineffective.

For further detail on financial instruments of the Company and its subsidiaries, see Notes 4, 14, and 22.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

d. Trade receivables

Trade receivables are recognized at the amount invoiced, adjusted to present value if applicable, including all direct taxes attributable to the Company and its subsidiaries. An allowance for doubtful accounts is recorded based on estimated losses and is set at an amount deemed by management to be sufficient to cover any probable loss on realization of trade receivables (see Note 22 - Customer credit risk).

e. Inventories

Inventories are stated at the lower of acquisition cost or net realizable value. The cost value of inventory is measured using the weighted average cost and includes the costs of acquisition and processing directly related to the units produced based on the normal capacity of production. Estimates of net realizable value are based on the average selling prices at the end of the reporting period, net of applicable direct selling expenses. Subsequent events related to the fluctuation of prices and costs are also considered, if relevant. If net realizable values are below inventory costs, a provision corresponding to this difference is recognized. Provisions are also made for obsolescence of products, materials or supplies that (i) do not meet the Company and its subsidiaries’ specifications, (ii) have exceeded their expiration date or (iii) are considered slow-moving inventory. This classification is made by management with the support of its industrial team.

f. Investments

Investments in subsidiaries are accounted for under the equity method of accounting in the individual interim financial information of the parent company.

Investments in associates in which management has a significant influence or in which it holds 20% or more of the voting stock, or that are under shared control are also accounted for under the equity method of accounting in the individual and consolidated interim financial information (see Note 11).

Other investments are stated at acquisition cost less provision for losses, unless the loss is considered temporary.

g. Property, plant and equipment

Property, plant and equipment is recognized at acquisition or construction cost, including financial charges incurred on property, plant and equipment under construction, as well as maintenance costs resulting from scheduled plant outages and estimated costs to remove, to decommission or to restore assets (see Note 18).

Depreciation is calculated using the straight-line method, for the periods mentioned in Note 12, taking into account the useful life of the assets, which are reviewed annually.

Leasehold improvements are depreciated over the shorter of the lease contract term and useful life of the property.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

h. Leases

• Finance leases

Certain lease contracts transfer substantially all the risks and benefits associated with the ownership of an asset to the Company and its subsidiaries. These contracts are characterized as finance leases, and assets thereunder are capitalized at lease commencement at their fair value or, if lower, present value of the minimum lease payments under the contracts. The items recognized as assets are depreciated and amortized using the straight-line method based on the useful lives applicable to each group of assets as mentioned in Notes 12 and 13. Financial charges under the finance lease contracts are allocated to profit or loss over the lease contract term, based on the amortized cost and the effective interest rate method of the related lease obligation (see Note 14.i).

• Operating leases

There are lease transactions where the risks and benefits associated with the ownership of the asset are not transferred and where there is no purchase option or the purchase option at the end of the contract is equivalent to the market value of the leased asset. Payments made under an operating lease contract are recognized as cost or expenses in the income statement on a straight-line basis over the term of the lease contract (see Note 23.g).

i. Intangible assets

Intangible assets include assets acquired by the Company and its subsidiaries from third parties, according to the criteria below (see Note 13):

• Goodwill is carried net of accumulated amortization as of December 31, 2008, when it ceased to be amortized. Goodwill generated since January 1, 2009 is shown as intangible asset corresponding to the positive difference between the amount paid or payable to the seller and the fair value of the identified assets and liabilities assumed of the acquired entity, and is tested annually for impairment. Goodwill is allocated to the respective cash generating units (“CGU”) for impairment testing purposes.

• Bonus disbursements as provided in Ipiranga’s agreements with reseller service stations and major consumers are recognized as distribution rights when paid and amortized using the straight-line method according to the term of the agreement.

• Other intangible assets acquired from third parties, such as software, technology and commercial property rights, are measured at the total acquisition cost and amortized using straight-line method, for the periods mentioned in Note 13, taking into account their useful life, which is reviewed annually.

The Company and its subsidiaries have not recognized intangible assets that were created internally. The Company and its subsidiaries have not recognized intangible assets that have an indefinite useful life, except for goodwill and the “am/pm” brand.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

j. Other assets

Other assets are stated at the lower of cost and realizable value, including, if applicable, interest earned, monetary changes and changes in exchange rates incurred or less a provision for loss and, if applicable, adjustment to present value (see Note 2.u).

k. Financial liabilities

The Company and its subsidiaries’ financial liabilities include trade payables and other payables, loans, debentures and hedging instruments. Financial liabilities are classified as “financial liabilities at fair value through profit or loss” or “financial liabilities at amortised cost”. The financial liabilities at fair value through profit or loss refer to derivative financial instruments and financial liabilities designated as hedged items in a fair value hedge relationship upon initial recognition (see Note 2.c – fair value hedge). The financial liabilities at amortised cost are stated at the initial transaction amount plus related charges and transaction costs, net of amortization. The charges are recognized in profit or loss using the effective interest rate method (see Note 14.j).

Transaction costs incurred and directly attributable to the activities necessary for contracting loans or for issuing bonds, as well as premiums and discounts upon issuance of debentures and other debt or equity instruments, are allocated to the instrument and amortized to profit or loss over its term, using the effective interest rate method.

l. Income and social contribution taxes on income

Current and deferred income tax (“IRPJ”) and social contribution on net income tax (“CSLL”) are calculated based on their current rates, considering the value of tax incentives. Taxes are recognized based on the rates of IRPJ and CSLL provided for by the laws enacted on the last day of the interim financial information. For further details about recognition and realization of IRPJ and CSLL, see Note 9.

m. Provision for assets retirement obligation – fuel tanks

The Company and its subsidiaries have the legal obligation to remove Ipiranga’s underground fuel tanks located at Ipiranga-branded service stations after a certain period. The estimated cost of the obligation to remove these fuel tanks is recognized as a liability when tanks are installed. The estimated cost is recognized in property, plant and equipment and depreciated over the respective useful life of the tanks. The amounts recognized as a liability are monetarily restated until the respective tank is removed (see Note 18). An increase in the estimated cost of the obligation to remove the tanks could result in negative impact in future results. The estimated removal cost is reviewed and updated annually or when there is significant change in its amount.

n. Provisions for tax, civil and labor risks

A provision for tax, civil and labor risks is recognized for quantifiable risks, when the chance of loss is more-likely-than-not in the opinion of management and internal and external legal counsel, and the amounts are recognized based on evaluation of the outcomes of the legal proceedings (see Note 23 items a,b,c,d).

o. Post-employment benefits

Post-employment benefits granted and to be granted to employees, retirees, and pensioners are based on an actuarial calculation prepared by an independent actuary, using the projected unit credit method (see Note 24.b). The actuarial gains and losses are recognized in other comprehensive income and presented in the shareholder’s equity. Past service cost is recognized through the income statement.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

p. Other liabilities

Other liabilities are stated at known or measurable amounts plus, if applicable, related charges, monetary restatement and changes in exchange rates incurred. When applicable, other liabilities are recognized at present value based on interest rates that reflect the term, currency and risk of each transaction.

q. Foreign currency transactions

Foreign currency transactions carried out by the Company or its subsidiaries are remeasured into their functional currency at the exchange rate prevailing at the date of each transaction. Outstanding monetary assets and liabilities of the Company and its subsidiaries are translated using the exchange rate at the end of the reporting period. The effect of the difference between those exchange rates is recognized in profit or loss until the conclusion of each transaction.

r. Basis for translation of interim financial information of foreign subsidiaries

Assets and liabilities of the foreign subsidiaries, denominated in currencies other than that of the Company (functional currency: Brazilian Real), which have administrative autonomy, are translated using the exchange rate at the end of the reporting period. Revenues and expenses are translated using the average exchange rate of each period and shareholders’ equity are translated at the historic exchange rate of each transaction affecting shareholders’ equity. Gains and losses resulting from changes in these foreign investments are directly recognized in the shareholders’ equity as cumulative translation adjustments and will be recognized in profit or loss if these investments are disposed of. The recognized balance in other comprehensive income and presented in the shareholders’ equity as cumulative translation adjustments as of June 30, 2013 was a gain of R$ 8,714 (gain of R$ 12,621 as of December 31, 2012).

The foreign subsidiaries with functional currency different from the Company and which have administrative autonomy, are listed below:

Subsidiary	Functional currency	Location
Oxiteno México S.A. de C.V.	Mexican Peso	Mexico
Oxiteno Servicios Corporativos S.A. de C.V.	Mexican Peso	Mexico
Oxiteno Servicios Industriales de C.V.	Mexican Peso	Mexico
Oxiteno USA LLC	U.S. Dollar	United States
Oxiteno Andina, C.A.	Bolivar	Venezuela
American Chemical I.C.S.A.	U.S. Dollar	Uruguay

According to IAS 29, Venezuela is classified as a hyperinflationary economy. As a result, the interim financial information of Oxiteno Andina, C.A. (“Oxiteno Andina”) were adjusted by the Venezuelan Consumer Price Index.

The subsidiary American Chemical I.C.S.A. (“American Chemical”) determined its functional currency as the U.S. dollar, as its sales and purchases of goods, and financing activities are performed substantially in this currency.

Assets and liabilities of the other foreign subsidiaries, which do not have administrative autonomy, are considered as an extention of the activities of their parent company and are translated using the exchange rate at the end of the reporting period. Gains and losses resulting from changes in these foreign investments are directly recognized as financial income or loss. The gain recognized in income as of June 30, 2013 amounted to R$ 2,667 (R$ 2,036 gain as of June 30, 2012).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

s. Use of estimates, assumptions and judgments

The preparation of the interim financial information requires the use of estimates, assumptions and judgments for the accounting of certain assets, liabilities and income. Therefore, Company and subsidiaries’ management use the best information available at the time of preparation of the interim financial information, as well as the experience of past and current events, also considering assumptions regarding future events. The interim financial information therefore include estimates, assumptions and judgments related mainly to determining the fair value of financial instruments (Notes 4, 14 and 22), the determination of the allowance for doubtful accounts (Note 5), the determination of provisions for income taxes (Note 9), the useful life of property, plant and equipment (Note 12), the useful life of intangible assets and the determination of the recoverable amount of goodwill (Note 13), provisions for assets retirement obligations (Note 18), tax, civil and labor provisions (Note 23 items a,b,c,d) and estimates for the preparation of actuarial reports (Note 24.b). The actual result of the transactions and information may differ from their estimates.

t. Impairment of assets

The Company and its subsidiaries review, at least annually, the existence of indication that an asset may be impaired. If there is an indication, the Company and its subsidiaries estimate the recoverable amount of the asset. Assets that cannot be evaluated individually are grouped in the smallest group of assets that generate cash flow from continuous use and that are largely independent of cash flows of other assets (CGU). The recoverable amount of assets or CGUs corresponds to the greater of their fair value net of applicable direct selling costs and their value in use.

To assess the value in use, the Company and its subsidiaries consider the projections of future cash flows, trends and outlooks, as well as the effects of obsolescence, demand, competition and other economic factors. Such cash flows are discounted to their present values using the discount rate before tax that reflects market conditions for the period of impairment testing and the specific risks of the asset or CGU being evaluated. In cases where the expected discounted future cash flows are less than their carrying amount, the impairment loss is recognized for the amount by which the carrying value exceeds the fair value of these assets. Losses for impairment of assets are recognized in profit or loss. In case goodwill has been allocated to a CGU, the recognized losses are first allocated to reduce the corresponding goodwill. If the goodwill is not enough to absorb such losses, the surplus is allocated to the assets on a pro-rata basis. An impairment of goodwill cannot be reversed. For other assets, impairment losses may be reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if the impairment had not been recognized.

No impairment was recognized in the periods presented.

u. Adjustment to present value

Some of the Company’s subsidiaries recognized a present value adjustment to Tax on Goods and Services (“ICMS”, the Brazilian VAT) credit balances related to property, plant and equipment (CIAP – see Note 7). Because recovery of these credits occurs over a 48 months period, the present value adjustment reflects, in the interim financial information, the time value of the ICMS credits to be recovered.

The Company and its subsidiaries reviewed all items classified as non-current and, when relevant, current assets and liabilities and did not identify the need to recognize other present value adjustments.

v. Statements of value added

As required by Brazilian Corporate Law, the Company and its subsidiaries prepare the individual and consolidated statements of value added (“DVA”) according to CPC 09 – Statement of Value Added, as an integral part of the interim financial information as applicable to publicly-traded companies, and as supplemental information for IFRS, that do not require the presentation of DVA.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

w. Adoption of the pronouncements issued by CPC and IFRS

The following standards are effective on January 1 st , 2013 and have impacted the Company’s financial statements and interim financial information previously disclosed in 2012.

EFPlaceholder

(1) adoption of IFRS 11 (CPC 19 (R2)) - Joint arrangements: the investments in RPR, Maxfácil Participações S.A. (“Maxfácil”), Uni ăo Vopak Armazéns Gerais Ltda. (“Uniăo Vopak”) and ConectCar Soluç ões de Mobilidade Eletrônica S.A. (“Conectcar”) were no more proportionally consolidated and were accounted for using the equity method.

(2) amendments to IAS 19 Revised (CPC 33 (R2))- Employee benefits: actuarial gains and losses are no longer recognized in the income statement and have been recognized in shareholders’equity as other comprehensive income. Past service costs were recognized in shareholders’equity in the date of transition. From the date of transition, past service costs will be recognized in income statements.

The table below summarizes the effects of adopting these standards on the consolidated balance sheet as of December 31, 2012 and on the consolidated income statements and consolidated statement of cash flow as of June 30, 2012:

Balance sheet


Current assets
Cash and cash equivalents	2,050,051	(28,937	)	-	2,021,114
Financial investments	962,136	(952	)	-	961,184
Trade receivables	2,306,798	(277	)	-	2,306,521
Inventories	1,299,807	(9,113	)	-	1,290,694
Recoverable taxes	483,201	(5,242	)	-	477,959
Other receivables	20,541	(78	)	-	20,463
Dividends receivable	-	1,292		-	1,292
Prepaid expenses	54,036	(225	)	-	53,811
Total current assets	7,176,570	(43,532	)	-	7,133,038
Non-current assets
Deferred income and social contribution taxes	465,190	(834	)	4,975	469,331
Escrow deposits	534,009	(280	)	-	533,729
Prepaid expenses	80,856	(1,204	)	-	79,652
Investments in joint-ventures	-	28,209		-	28,209
Property, plant and equipment	4,701,406	(34,386	)	-	4,667,020
Intangible assets	1,968,615	(3,319	)	-	1,965,296
Other non-current assets	373,279	-		-	373,279
Total non-current assets	8,123,355	(11,814	)	4,975	8,116,516
Total assets	15,299,925	(55,346	)	4,975	15,249,554

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)


Current liabilities
Loans	1,573,463	(432	)	-		1,573,031
Debentures	65,663	(12,713	)	-		52,950
Trade payables	1,312,268	(14,533	)	-		1,297,735
Salaries and related charges	254,566	(2,040	)	-		252,526
Taxes payable	107,822	(149	)	-		107,673
Dividends payable	222,370	(19	)	-		222,351
Income and social contribution taxes payable	75,363	(128	)	-		75,235
Post-employment benefits	11,624	(1,589	)	-		10,035
Provision for tax, civil and labor risks	50,052	(538	)	-		49,514
Other payables	52,514	3,939		-		56,453
Other current liabilities	23,747	-		-		23,747
Total current liabilities	3,749,452	(28,202	)	-		3,721,250
Non-current liabilities
Loans	3,153,096	(1,408	)	-		3,151,688
Debentures	1,403,571	(8,301	)	-		1,395,270
Provision for tax, civil and labor risks	551,606	(643	)	-		550,963
Post-employment benefits	120,619	(16,792	)	14,633		118,460
Other non-current liabilities	305,845	-		-		305,845
Total non-current liabilities	5,534,737	(27,144	)	14,633		5,522,226
Total shareholders’ equity	6,015,736	-		(9,658	)	6,006,078
Total liabilities and shareholders’ equity	15,299,925	(55,346	)	4,975		15,249,554

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Income statement

Net revenue from sales and services	25,449,601		(20,636	)	-		25,428,965
Cost of products and services sold	(23,534,916	)	12,170		-		(23,522,746	)
Selling and marketing, general and administrative and other operating income, net	(1,163,696	)	4,300		949		(1,158,447	)
Income from disposal of assets	(4,249	)	(18	)	-		(4,267	)
Financial income, net	(147,770	)	(4,745	)	-		(152,515	)
Income and social contribution taxes	(173,709	)	3,135		(323	)	(170,897	)
Share of profit of joint ventures and associates	174		5,794		-		5,968
Net income for the period	425,435		-		626		426,061

Statement of cash flow

Net cash provided by operating activities	810,754		1,110		-	811,864
Net cash used by investing activities	(548,447	)	(1,463	)	-	(549,910	)
Net cash used in financing activities	(545,183	)	(1,431	)	-	(546,614	)
Increase (decrease) in cash and cash equivalents	(282,635	)	(1,784	)	-	(284,419	)
Cash and cash equivalents at the beginning of the period	1,790,954		(25,448	)	-	1,765,506
Cash and cash equivalents at the end of the period	1,508,319		(27,232	)	-	1,481,087

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

The following standards were effective on January 1 st , 2013 and have no impact on the financial statements and the interim financial information of the Company in 2012:

• Consolidated financial statements – IFRS 10 and transition guidance

• Disclosure of interests in other entities– IFRS 12 and transition guidance

• Amendments to IAS 27 – Separate financial statements

• Amendments to IAS 28 – Investments in associates and joint ventures

• Fair value measurement – IFRS 13

The following standards issued by IASB were effective on January 1st, 2013, but CPC has not yet issued pronouncements equivalent to these IAS/IFRS. The adoption of these pronouncements is subject to approval by the CVM and we expect no significant impacts on the financial statements of the Company and its subsidiaries:

• Amendments to IAS 1 – Presentation of financial statements: other comprehensive income

• Amendments to IFRS 7 – Financial instruments: offsetting financial assets and liabilities

Certain standards, amendments and interpretations to IFRS issued by IASB that have been issued but are not yet effective were not applied as of June 30, 2013, as follows:

	Effective date
• Amendments to IAS 32 – Financial instruments: presentation	2014
• IFRS 9 – Financial instruments’ classification and measurement	2015

CPC has not yet issued pronouncements equivalent to these IAS/IFRS, but is expected to do so before the date they become effective. The adoption of IFRS pronouncements is subject to prior approval by the CVM.

x. Authorization for issuance of the interim financial information

These interim financial information were authorized for issue by the Board of Directors on July 31, 2013.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Principles of consolidation and investments in subsidiaries

The consolidated interim financial information were prepared following the basic principles of consolidation established by IFRS 10 (CPC 36 (R3)). Investments of one company in another, balances of asset and liability accounts and revenues and expenses were eliminated, as well as the effects of transactions conducted between the companies. Non-controlling interests in subsidiaries are presented within consolidated shareholders’ equity and net income.

The consolidated interim financial information include the following direct and indirect subsidiaries:

		% interest in the share
		06/30/2013		12/31/2012
		Control		Control
	Location	Direct control	Indirect control	Direct control	Indirect control
Ultracargo - Operações Logísticas e Participações Ltda.	Brazil	100	-	100	-
Terminal Químico de Aratu S.A. – Tequimar	Brazil	-	99	-	99
Temmar - Terminal Marítimo do Maranhăo S.A.	Brazil	-	100	-	100
Melamina Ultra S.A. Indústria Química	Brazil	-	-	-	99
Oxiteno S.A. Indústria e Comércio	Brazil	100	-	100	-
Oxiteno Nordeste S.A. Indústria e Comércio	Brazil	-	99	-	99
Oxiteno Argentina Sociedad de Responsabilidad Ltda.	Argentina	-	100	-	100
Oleoquímica Indústria e Comércio de Produtos Químicos Ltda.	Brazil	-	100	-	100
American Chemical I.C.S.A.	Uruguay	-	100	-	100
Barrington S.L.	Spain	-	100	-	100
Oxiteno México S.A. de C.V.	Mexico	-	100	-	100
Oxiteno Servicios Corporativos S.A. de C.V.	Mexico	-	100	-	100
Oxiteno Servicios Industriales S.A. de C.V.	Mexico	-	100	-	100
Oxiteno USA LLC	United States	-	100	-	100
Global Petroleum Products Trading Corp.	Virgin Islands	-	100	-	100
Oxiteno Overseas Corp.	Virgin Islands	-	100	-	100
Oxiteno Andina, C.A.	Venezuela	-	100	-	100
Oxiteno Europe SPRL	Belgium	-	100	-	100
Oxiteno Colombia S.A.S	Colombia	-	100	-	100
Oxiteno Shanghai Trading LTD.	China	-	100	-	100
Empresa Carioca de Produtos Químicos S.A.	Brazil	-	100	-	100
Ipiranga Produtos de Petróleo S.A.	Brazil	100	-	100	-
am/pm Comestíveis Ltda.	Brazil	-	100	-	100
Centro de Conveniências Millennium Ltda.	Brazil	-	100	-	100
Conveniência Ipiranga Norte Ltda.	Brazil	-	100	-	100
Ipiranga Trading Limited	Virgin Islands	-	100	-	100
Tropical Transportes Ipiranga Ltda.	Brazil	-	100	-	100
Ipiranga Imobiliária Ltda.	Brazil	-	100	-	100
Ipiranga Logística Ltda.	Brazil	-	100	-	100
Isa-Sul Administraçăo e Participaç ões Ltda.	Brazil	-	100	-	100
Companhia Ultragaz S.A.	Brazil	-	99	-	99
Bahiana Distribuidora de Gás Ltda.	Brazil	-	100	-	100
Utingás Armazenadora S.A.	Brazil	-	57	-	57
LPG International Inc.	Cayman Islands	-	100	-	100
Imaven Imóveis Ltda.	Brazil	-	100	-	100
Oil Trading Importadora e Exportadora Ltda.	Brazil	-	100	-	100
SERMA - Ass. dos usuários equip. proc. de dados	Brazil	-	100	-	100

The percentages in the table above are rounded.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

In June 2013, in order to simplify the corporate structure, the subsidiary Melamina Ultra S.A. Indústria Química was merged into subsidiary Ultracargo – Operações Logísticas e Participações Ltda. (“Ultracargo Participações”).

The Company and its subsidiaries maintain a shared equity interest in the following companies, whose bylaws establish joint control. These joint ventures are accounted for under the equity method of accounting by the Company and its subsidiaries, as required by IFRS 11 (CPC 19 (R2)) – see Note 11.b).

		% interest in the share
		06/30/2013		12/31/2012
		Control		Control
	Location	Direct control	Indirect control	Direct control	Indirect control
Uniăo Vopak Armazéns Gerais Ltda.	Brazil	-	50	-	50
ConectCar Soluções de Mobilidade Eletrônica S.A.	Brazil	-	50	-	50
Refinaria de Petróleo Riograndense S.A.	Brazil	33	-	33	-

The percentages in the table above are rounded.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

a) Business combination – acquisition of American Chemical I.C.S.A.

On November 1 st , 2012, the Company, through its subsidiary Oxiteno S.A. Indústria e Comércio (“Oxiteno S.A.”), purchased 100% of the shares of American Chemical, a Uruguayan specialty chemicals company. American Chemical owns a plant in Montevideo, with production capacity of 81 thousand tons of specialty chemicals, particularly sulfonate and sulfate surfactants for the home and personal care industries, as well as products for the leather industry. The total amount paid was R$ 113,603, including the adjustments of working capital in the amount of R$ 6,168, paid in the first quarter of 2013.

The purchase price paid for the shares is being allocated among the identified assets acquired and liabilities assumed, measured at fair value. The recognition of fair values of inventories, property, plant and equipment and intangible assets was concluded in the first semester of 2013. During the process of identification of assets and liabilities, intangible assets which were not recognized in the acquired entity’s books were also taken into account. The goodwill is R$ 44,856.

The table below summarizes the assets acquired and liabilities assumed as of the acquisition date:

Current assets — Cash and cash equivalents	7,147	Current liabilities — Loans	32,481
Trade receivables	31,169	Trade payables	32,443
Inventories	33,459	Salaries and related charges	3,431
Recoverable taxes	3,163	Other	1,869
Other	1,906		70,224
	76,844
Non-current assets		Non-current liabilities
Property, plant and equipment	68,420	Loans	7,362
Intangible assets	1,969	Deferred income and social
Deferred income and social contribution taxes	7,465	contribution taxes	8,365
Goodwill	44,856		15,727
	122,710	Total liabilities assumed	85,951
Total assets acquired and goodwill	199,554	Consideration transferred	113,603

For details on property, plant and equipment and intangible assets acquired, see Notes 12 and 13, respectively.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Cash and cash equivalents and financial investments

Cash equivalents and financial investments, excluding cash and bank deposits, are substantially represented by investments: (i) in Brazil, in certificates of deposit of first-rate financial institutions linked to the Interbank Certificate of Deposit (“CDI”), in debentures and in short term investments funds, whose portfolio comprised exclusively of Brazilian Federal Government bonds; (ii) outside Brazil, in certificates of deposit of first-rate financial institutions and in short-term investment funds with a portfolio composed exclusively of bonds issued by the U.S. Government; and (iii) in currency and interest rate hedging instruments.

The financial assets were classified in Note 22, according to their characteristics and intention of the Company and its subsidiaries.

The balance of cash, cash equivalents and financial investments (Consolidated) amounted to R$ 3,189,209 at June 30, 2013 (R$ 3,131,828 at December 31, 2012) and are distributed as follows:

· · Cash and cash equivalents

Cash and cash equivalents are considered: (i) cash and bank deposits, and (ii) highly-liquid short-term investments that are readily convertible into a known amount of cash and are subject to an insignificant risk of change in value.

06/30/2013	12/31/2012	06/30/2013	12/31/2012
Cash and bank deposits
In local currency	90	173	40,711	35,786
In foreign currency	-	-	55,621	43,866
Financial investments
In local currency
Fixed-income securities and funds	546,804	76,808	1,959,385	1,912,217
In foreign currency
Fixed-income securities and funds	-	-	4,444	29,245
Total cash and cash equivalents	546,894	76,981	2,060,161	2,021,114

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

· Financial investments

The financial investments of the Company and its subsidiaries, which are not classified as cash and cash equivalents, are distributed as follows:

06/30/2013	12/31/2012	06/30/2013	12/31/2012
Financial investments
In local currency
Fixed-income securities and funds	33,253	216	664,122	641,022
In foreign currency
Fixed-income securities and funds	-	-	334,682	290,636
Currency and interest rate hedging instruments (a)	-	-	130,244	179,056
Total financial investments	33,253	216	1,129,048	1,110,714
Current	33,253	216	1,024,515	961,184
Non-current	-	-	104,533	149,530

(a) Accumulated gains, net of income tax (see Note 22).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Trade receivables (Consolidated)

Domestic customers	2,299,293		2,130,816
Reseller financing - Ipiranga	268,292		276,937
Foreign customers	186,403		164,943
(-) Allowance for doubtful accounts	(140,009	)	(128,816	)
Total	2,613,979		2,443,880
Current	2,483,474		2,306,521
Non-current	130,505		137,359

Reseller financing is provided for renovation and upgrading of service stations, purchase of products, and development of the automotive fuels and lubricants distribution market.

The breakdown of trade receivables, gross, is as follows:

Total	Current	less than 30 days	31-60 days	61-90 days	91-180 days	more than 180 days
06/30/2013	2,753,988	2,473,909	76,428	10,712	6,161	14,073	172,705
12/31/2012	2,572,696	2,270,632	81,666	18,463	8,932	25,885	167,118

Movements in the allowance for doubtful accounts are as follows:

Balance at December 31, 2012	128,816
Additions	15,460
Write-offs	(4,267	)
Balance at June 30, 2013	140,009

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Inventories (Consolidated)

Cost	Provision for losses		Net balance	Cost	Provision for losses		Net balance
Finished goods	258,395	(5,360	)	253,035	262,667	(6,314	)	256,353
Work in process	2,054	-		2,054	1,914	-		1,914
Raw materials	191,889	(135	)	191,754	205,252	(297	)	204,955
Liquefied petroleum gas (LPG)	39,625	-		39,625	36,820	-		36,820
Fuels, lubricants and greases	730,885	(728	)	730,157	629,527	(635	)	628,892
Consumable materials and bottles for resale	60,796	(1,122	)	59,674	63,226	(1,197	)	62,029
Advances to suppliers	95,046	-		95,046	72,899	-		72,899
Properties for resale	25,240	-		25,240	26,832	-		26,832
	1,403,930	(7,345	)	1,396,585	1,299,137	(8,443	)	1,290,694

Movements in the provision for losses are as follows:

Balance at December 31, 2012	8,443
Recoveries of realizable value adjustment	(1,174	)
Additions of obsolescence and other losses	76
Balance at June 30, 2013	7,345

The breakdown of provisions for losses related to inventories is shown in the table below:

Realizable value adjustment	4,236	5,410
Obsolescence and other losses	3,109	3,033
Total	7,345	8,443

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Recoverable taxes

Recoverable taxes are substantially represented by credits of ICMS, Taxes for Social Security Financing (COFINS), Employee’s Profit Participation Program (PIS), IRPJ and CSLL.

06/30/2013	12/31/2012	06/30/2013		12/31/2012
IRPJ and CSLL (1)	45,694	89,265	143,106		190,499
ICMS	-	-	196,523		198,041
Provision for ICMS losses (*)	-	-	(60,720	)	(61,717	)
Adjustment to present value of ICMS on property, plant and equipment - CIAP (see Note 2.u)	-	-	(482	)	(747	)
PIS and COFINS	-	-	124,095		156,491
Value-Added Tax (IVA) of subsidiaries Oxiteno Mexico, Oxiteno Andina and American Chemical	-	-	31,606		32,626
Excise tax - IPI	-	-	3,853		4,117
Other	-	-	7,691		7,719
Total	45,694	89,265	445,672		527,029
Current	45,694	63,266	401,077		477,959
Non-current	-	25,999	44,595		49,070

(1) The decrease in the balance of recoverable IRPJ and CSLL is due to their offset with IRPJ and CSLL payable levied on interest on equity received by the Parent Company in the second quarter of 2013.

(*) The provision for ICMS losses relates to tax credits that the subsidiaries believe to be unable to offset in the future and its movements are as follows:

Balance at December 31, 2012	61,717
Additions	2,206
Write-offs	(3,203	)
Balance at June 30, 2013	60,720

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Related parties

a. Related parties

· Parent company

Ipiranga Produtos de Petróleo S.A.	767,149	38,872
Total as of June 30, 2013	767,149	38,872

Trade receivables	Debentures	Total
Companhia Ultragaz S.A.	7,293	-	7,293	-
Terminal Químico de Aratu S.A. - Tequimar	3,003	-	3,003	-
Oxiteno S.A. Indústria e Comércio	858	-	858	-
Ipiranga Produtos de Petróleo S.A.	3,861	766,297	770,158	52,591
Total as of December 31, 2012	15,015	766,297	781,312
Total as of June 30, 2012				52,591

In March 2009, Ipiranga made its first private offering in a single series of 108 debentures at each face value of R$ 10,000,000.00 (ten million Brazilian Reais), nonconvertible into shares, unsecured debentures. The Company subscribed 75 debentures with maturity on March 31, 2016 and semiannual remuneration linked to CDI.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

· Consolidated

Assets	Liabilities	Receivables 1	Payables 1
Oxicap Indústria de Gases Ltda.	10,368	-	-	2,775
Química da Bahia Indústria e Comércio S.A.	-	3,046	-	-
Refinaria de Petróleo Riograndense S.A.	-	-	-	2,377
ConectCar Soluções de Mobilidade Eletrônica S.A.	-	-	299	-
Others	490	826	-	-
Total as of June 30, 2013	10,858	3,872	299	5,152

Assets	Liabilities	Receivables 1	Payables 1
Oxicap Indústria de Gases Ltda.	10,368	-	-	926
Química da Bahia Indústria e Comércio S.A.	-	3,046	-	-
Refinaria de Petróleo Riograndense S.A.	-	-	-	275
ConectCar Soluções de Mobilidade Eletrônica S.A.	-	-	9,871	-
Others	490	826	-	-
Total as of December 31, 2012	10,858	3,872	9,871	1,201

1 Included in “trade receivables” and “trade payables”, respectively.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Sales	Purchases
Oxicap Indústria de Gases Ltda.	3	5,981
Refinaria de Petróleo Riograndense S.A.	-	15,188
ConectCar Soluções de Mobilidade Eletrônica S.A.	4,662	-
Total as of June 30, 2013	4,665	21,169

Sales	Purchases
Oxicap Indústria de Gases Ltda.	3	6,420
Refinaria de Petróleo Riograndense S.A.	-	11,617
Total as of June 30, 2012	3	18,037

Purchase and sale transactions relate substantially to the purchase of raw materials, feedstock, transportation and storage services based on an arm’s-length market prices and terms with customers and suppliers with comparable operational performance. The above operations related to ConectCar refer to the adhesion to Ipiranga’s marketing plan and services provided. Borrowing agreements are for an indeterminate period and do not contain interest clauses. In the opinion of the Company and its subsidiaries’ management, transactions with related parties are not subject to credit risk, which is why no allowance for doubtful accounts or collaterals are provided. Collaterals provided by the Company in loans of subsidiaries and affiliates are mentioned in Note 14.k). Intercompany loans are contracted in light of temporary cash surpluses or deficits of the Company, its subsidiaries and its associates.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

b. Key executives - Compensation (Consolidated)

The Company’s compensation strategy combines short and long-term elements, following the principles of alignment of interests and of maintenance of a competitive compensation, and is aimed at retaining key officers and remunerating them adequately according to their attributed responsibilities and the value created to the Company and its shareholders.

Short-term compensation is comprised of: (a) fixed monthly compensation paid with the objective of rewarding the executive’s experience, responsibility and his/her position’s complexity, and includes salary and benefits such as medical coverage, check-up, life insurance and others; (b) variable compensation paid annually with the objective of aligning the executive’s and the Company’s objectives, which is linked to: (i) the business performance measured through its economic value creation EVA ® and (ii) the fulfillment of individual annual goals that are based on the strategic plan and are focused on expansion and operational excellence projects, people development and market positioning, among others. Further details about the Deferred Stock Plan are contained in Note 8.c) and about post-employment benefits in Note 24.b).

As of June 30, 2013, the Company and its subsidiaries recognized expenses for compensation of its key executives (Company’s directors and executive officers) in the amount of R$ 15,563 (R$ 15,100 as of June 30, 2012). Out of this total, R$ 12,929 relates to short-term compensation (R$ 12,886 as of June 30, 2012), R$ 1,893 to stock compensation (R$ 1,616 as of June 30, 2012) and R$ 741 (R$ 598 as of June 30, 2012) to post-employment benefits.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

c. Deferred Stock Plan

On April 27, 2001, the General Shareholders’ Meeting approved a benefit plan to members of management and employees in executive positions in the Company and its subsidiaries. On November 26, 2003, the Extraordinary General Shareholders’ Meeting approved certain amendments to the original plan of 2001 (the “Deferred Stock Plan”). In the Deferred Stock Plan, certain members of management of the Company and its subsidiaries have the voting and economic rights of shares and the ownership of these shares is retained by the subsidiaries of the Company. The Deferred Stock Plan provides for the transfer of the ownership of the shares to those eligible members of management after five to ten years from the initial concession of the rights subject to uninterrupted employment of the participant during the period. The total number of shares to be used for the Deferred Stock Plan is subject to the availability in treasury of such shares. It is incumbent on Ultrapar’s executive officers to select the members of management eligible for the plan and propose the number of shares in each case for approval by the Board of Directors. At June 30, 2013, the amount granted to the company’s executives, including tax charges, amounted R$ 63,643 (R$ 63,643 until December 31, 2012). This amount is amortized over the vesting period of Deferred Stock Plan. The amortization as of June 30, 2013 in the amount of R$ 4,950 (R$ 2,549 as of June 30, 2012) was recognized as a general and administrative expense. The fair value of the awards were determined on the grant date based on the market value of the shares on the BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros (“BM&FBOVESPA”), the Brazilian Securities, Commodities and Futures Exchange.

The table below summarizes shares provided to the Company and its subsidiaries’ management:

Grant date — November 7, 2012	350,000	Vesting period — 5 to 7 years	42.90	20,710	(2,345	)	18,365
December 14, 2011	120,000	5 to 7 years	31.85	5,272	(1,418	)	3,854
November 10, 2010	260,000	5 to 7 years	26.78	9,602	(4,349	)	5,253
December 16, 2009	250,000	5 to 7 years	20.75	7,155	(4,355	)	2,800
October 8, 2008	576,000	5 to 7 years	9.99	8,090	(6,556	)	1,534
December 12, 2007	106,640	5 to 7 years	16.17	3,570	(3,246	)	324
November 9, 2006	207,200	10 years	11.62	3,322	(2,215	)	1,107
December 14, 2005	93,600	10 years	8.21	1,060	(804	)	256
October 4, 2004	167,900	10 years	10.20	2,361	(2,066	)	295
December 18, 2003	239,200	10 years	7.58	2,501	(2,397	)	104
	2,370,540			63,643	(29,751	)	33,892

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Income and social contribution taxes

a. Deferred income and social contribution taxes

The Company and its subsidiaries recognize tax credits and debits, which are not subject to statute of limitations, resulting from tax loss carryforwards, temporary differences, negative tax bases and revaluation of property, plant and equipment, among others. Credits are sustained by the continued profitability of their operations. Deferred IRPJ and CSLL are recognized under the following main categories:

06/30/2013	12/31/2012	06/30/2013	12/31/2012
Assets - Deferred income and social contribution taxes on:
Provision for impairment of assets	-	-	28,228	27,503
Provisions for tax, civil and labor risks	7	6	110,786	110,563
Provision for post-employment benefit (see Note 24.b)	-	-	46,086	43,450
Provision for differences between cash and accrual basis	-	-	-	21,710
Goodwill (see Note 13)	-	-	95,780	134,598
Provision for assets retirement obligation	-	-	14,317	13,855
Other provisions	-	37	75,130	60,768
Tax losses and negative basis for social contribution carryforwards (d)	-	-	60,296	56,884
Total	7	43	430,623	469,331
Liabilities - Deferred income and social contribution taxes on:
Revaluation of property, plant and equipment	-	-	3,192	3,259
Lease	-	-	5,957	6,255
Provision for differences between cash and accrual basis	-	-	50,582	65,299
Provision for goodwill/negative goodwill	-	-	5,426	950
Temporary differences of foreign subsidiaries	-	-	4,242	3,489
Other provisions	-	-	16,523	5,672
Total	-	-	85,922	84,924

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

The estimated recovery of deferred tax assets relating to IRPJ and CSLL is stated as follows:

Up to 1 year	-	155,683
From 1 to 2 years	-	85,163
From 2 to 3 years	-	54,820
From 3 to 5 years	7	32,989
From 5 to 7 years	-	65,932
From 7 to 10 years	-	36,036
	7	430,623

b. Reconciliation of income and social contribution taxes

IRPJ and CSLL are reconciled to the statutory tax rates as follows:

06/30/2013		06/30/2012		06/30/2013		06/30/2012
Income before taxes and share of profit of Subsidiaries, joint ventures and associates	2,892		13,833		784,894		500,990
Statutory tax rates - %	34		34		34		34
Income and social contribution taxes at the statutory tax rates	(983	)	(4,703	)	(266,864	)	(200,936	)
Adjustments to the statutory income and social contribution taxes:
Operating provisions and nondeductible expenses/nontaxable revenues	(355	)	-		(12,026	)	(1,091	)
Adjustment to estimated income	-		-		3,206		16,171
Interest on equity	(59,617	)	-		(218	)	-
Other adjustments	11		12		1,156		(1,816	)
Income and social contribution taxes before tax incentives	(60,944	)	(4,691	)	(274,746	)	(187,673	)
Tax incentives - SUDENE	-		-		22,100		16,776
Income and social contribution taxes in the income statement	(60,944	)	(4,691	)	(252,646	)	(170,897	)
Current	(60,908	)	(4,069	)	(244,695	)	(143,841	)
Deferred	(36	)	(622	)	(30,051	)	(43,832	)
Tax incentives - SUDENE	-		-		22,100		16,776

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

c. Tax incentives - SUDENE

The following subsidiaries are entitled to federal tax benefits providing for IRPJ reduction under the program for development of northeastern Brazil operated by the Superintendency for the Development of the Northeast (“SUDENE”):

Subsidiary	Units	Incentive - %	Expiration
Oxiteno Nordeste S.A. Indústria e Comércio	Camaçari plant	75	2016
Bahiana Distribuidora de Gás Ltda.	Caucaia base (1)	75	2012
	Mataripe base	75	2013
	Aracaju base	75	2017
	Suape base	75	2018
Terminal Químico de Aratu S.A. – Tequimar	Aratu terminal (2)	75	2012
	Suape terminal	75	2020
Oleoquímica Indústria e Comércio de Produtos Químicos Ltda.	Camaçari plant	75	2022

(1) In the second semester of 2013 the subsidiary will request the extension of the recognition of tax incentive for another 10 years, due the production increase verified in the Caucaia base.

(2) In April 2013 the subsidiary requested the extension of the recognition of tax incentive for another 10 years, due the modernization verified in the Aratu terminal.

d. Income and social contribution taxes carryforwards

As of June 30, 2013, the Company and certain subsidiaries have loss carryforwards (income tax) amounting to R$ 181,181 (R$ 171,409 as of December 31, 2012) and negative basis of CSLL of R$ 166,675 (R$ 155,911 as of December 31, 2012), whose compensations are limited to 30% of taxable income, which do not expire. Based on these values the Company and its subsidiaries recognized deferred income and social contribution tax assets in the amount of R$ 60,296 as of June 30, 2013 (R$ 56,884 as of December 31, 2012).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Prepaid expenses (Consolidated)

Rents	69,134	60,931
Deferred Stock Plan, net (see Note 8.c)	27,343	31,438
Software maintenance	8,974	11,168
Insurance premiums	10,303	15,612
Advertising and publicity (1)	55,230	6,218
Purchases of meal and transportation tickets	4,341	4,545
Taxes and other prepaid expenses	7,805	3,551
	183,130	133,463
Current	99,633	53,811
Non-current	83,497	79,652

(1) On June 30, 2013, R$ 26,472 refer to marketing campaigns that will happen in 2014 due to the Soccer World Cup in Brazil.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Investments

a. Subsidiaries and joint-ventures (Parent company)

Ultracargo – Operações Logísticas e Participações Ltda.	Oxiteno S.A. Indústria e Comércio	Ipiranga Produtos de Petróleo S.A.	Refinaria de Petróleo Riograndense S.A.
Number of shares or units held	11,839,764	35,102,127	224,467,228,244	5,078,888
Assets	1,045,674	3,015,753	8,688,041	205,547
Liabilities	19,985	588,946	6,803,047	146,666
Shareholders’ equity adjusted for intercompany unrealized profits	1,025,689	2,426,807	1,884,994	58,881
Net revenue from sales and services	-	440,367	25,132,229	101,830
Net income for the period after adjustment for intercompany unrealized profits	37,178	81,430	464,944	7,120

Ultracargo – Operações Logísticas e Participações Ltda.	Oxiteno S.A. Indústria e Comércio	Ipiranga Produtos de Petróleo S.A.	Refinaria de Petróleo Riograndense S.A.
Number of shares or units held	9,323,829	35,102,127	224,467,228,244	5,078,888
Assets	1,008,765	3,142,610	8,934,599	229,328
Liabilities	19,921	789,697	6,493,500	169,820
Shareholders’ equity adjusted for intercompany unrealized profits	988,511	2,349,275	2,435,502	59,508
06/30/2012
Net revenue from sales and services	-	445,233	21,987,271	60,703
Net income for the period after adjustment for intercompany unrealized profits	39,561	70,682	301,786	6,089

Operating financial information of the subsidiaries is detailed in Note 21.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Balance as of December 31, 2012	988,844		2,352,973		2,441,115		19,759		5,802,691
Effect of adoption of IAS 19 (CPC 33 (R2)) - Employee benefits	(333	)	(3,698	)	(5,613	)	-		(9,644	)
Balance as of December 31, 2012 - restated	988,511		2,349,275		2,435,502		19,759		5,793,047
Share of profit of subsidiaries and joint ventures	37,178		81,430		464,944		1,404		584,956
Dividends and interest on equity (gross)	-		-		(315,435	)	(1,612	)	(317,047	)
Capital decrease	-		-		(700,000	)	-		(700,000	)
Tax liabilities on equity- method revaluation reserve	-		-		(21	)	-		(21	)
Valuation adjustment of subsidiaries	-		9		4		-		13
Translation adjustments of foreign-based subsidiaries	-		(3,907	)	-		-		(3,907	)
Balance as of June 30, 2013	1,025,689		2,426,807		1,884,994		19,551		5,357,041

Balance as of December 31, 2011	780,883		2,206,872		2,284,440		18,904		5,291,099
Effect of adoption of IAS 19 (CPC 33 (R2)) - Employee benefits	(361	)	(4,140	)	(6,038	)	-		(10,539	)
Balance as of December 31, 2011 - restated	780,522		2,202,732		2,278,402		18,904		5,280,560
Share of profit of subsidiaries and joint ventures	39,561		70,682		301,786		2,023		414,052
Dividends and interest on equity (gross)	-		-		(191,621	)	(2,432	)	(194,053	)
Tax liabilities on equity- method revaluation reserve	-		-		(52	)	-		(52	)
Valuation adjustment of subsidiaries	-		(103	)	(59	)	-		(162	)
Translation adjustments of foreign-based subsidiaries	-		9,523		-		-		9,523
Balance as of June 30, 2012	820,083		2,282,834		2,388,456		18,495		5,509,868

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

b. Joint ventures (Consolidated)

Uniăo Vopak	RPR		ConectCar		Total
Balance as of December 31, 2012	5,714	19,759		2,736		28,209
Capital increase	-	-		12,580		12,580
Received dividends	-	(1,612)		-		(1,612)
Share of profit (loss) of joint ventures	692	1,404	*	(4,564	)	(2,468	)
Balance as of June 30, 2013	6,406	19,551		10,752		36,709

*Includes adjustments related to the conclusion of the audit of 2012.

Uniăo Vopak		RPR		Maxfácil		Total
Balance as of December 31, 2011	6,331		18,904		95,568		120,803
Received dividends	(649	)	(2,432	)	(7,672	)	(10,753	)
Share of profit (loss) of joint ventures	598		2,023		3,173		5,794
Balance as of June 30, 2012	6,280		18,495		91,069		115,844

Uniăo Vopak	RPR	ConectCar
Current assets	4,550	110,107	13,687
Non-current assets	9,652	95,440	15,073
Current liabilities	1,390	39,175	7,258
Non-current liabilities	-	107,491	-
Shareholders’ equity	12,812	58,881	21,502
Net revenue from sales and services	6,404	101,830	1,379
Costs and operating expenses	(4,412)	(91,146)	(15,145)
Net financial income and income and social contribution taxes	(608)	(3,564)	4,638
Net income (loss) for the period	1,384	7,120	(9,128	)
Number of shares or units held	29,995	5,078,888	25,000,000
% of capital held	50	33	50

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Uniăo Vopak	RPR	ConectCar
Current assets	4,254	137,729	12,616
Non-current assets	9,908	91,599	9,363
Current liabilities	2,734	88,070	16,507
Non-current liabilities	-	81,750	-
Shareholders’ equity	11,428	59,908	5,472
Number of shares or units held	29,995	5,078,888	25,000,000
% of capital held	50	33	50

Uniăo Vopak		RPR		Maxfácil
Net revenue from sales and services	8,018		60,703		462
Costs and operating expenses	(6,309	)	(51,074	)	(195	)
Net financial income and income and social contribution taxes	(513	)	(3,540	)	6,079
Net income for the period	1,196		6,089		6,346
Number of shares or units held	29,995		5,078,888		10,997
% of capital held	50		33		50

The Company holds an interest in RPR, which is primarily engaged in oil refining.

The subsidiary Ultracargo Participações holds an interest in Uni ăo Vopak, which is primarily engaged in liquid bulk storage in the port of Paranaguá.

The subsidiary Ipiranga Pr odutos de Petróleo S.A. (“IPP”) holds an interest in ConectCar, which is primarily engaged in electronic payment of tolls, parking and fuel. ConectCar, formed in November 2012, started its operation on April 23, 2013 in the State of Săo Paulo.

The subsidiary IPP held an interest in Maxfácil, which was primarily engaged in the management of Ipiranga-branded credit cards. In November 2012, Maxfácil was split between the partners in proportion to their shareholdings and subsequently merged by each partner.

These investments are accounted for under the equity method of accounting based on their information as of June 30, 2013.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

c. Associates (Consolidated)

Transportadora Sulbrasileira de Gás S.A.	Oxicap Indústria de Gases Ltda.		Química da Bahia Indústria e Comércio S.A.		Total
Balance as of December 31, 2012	7,014	2,020		3,636		12,670
Share of profit (loss) of associates	469	(39	)	(4	)	426
Balance as of June 30, 2013	7,483	1,981		3,632		13,096

Transportadora Sulbrasileira de Gás S.A.		Oxicap Indústria de Gases Ltda.	Química da Bahia Indústria e Comércio S.A.		Total
Balance as of December 31, 2011	6,828		2,105	3,693		12,626
Received dividends	(146	)	-	-		(146	)
Share of profit (loss) of associates	139		96	(61	)	174
Balance as of June 30, 2012	6,821		2,201	3,632		12,654

Subsidiary IPP holds an interest in Transportadora Sulbrasileira de Gás S.A., which is primarily engaged in natural gas transportation services.

Subsidiary Oxiteno S.A. holds an interest in Oxicap Indústria de Gases Ltda. (“Oxicap”), which is primarily engaged in the supply of nitrogen and oxygen for its shareholders in the Mauá petrochemical complex.

Subsidiary Oxiteno Nordeste S.A. Indústria e Comércio (“Oxiteno Nordeste”) holds an interest in Química da Bahia Indústria e Comércio S.A., which is primarily engaged in manufacturing, marketing and processing of chemicals. The operations of this associate are currently suspended.

Subsidiary Companhia Ultragaz S.A. (“Cia. Ultragaz”) holds an interest in Metalúrgica Plus S.A., which is primarily engaged in the manufacture and trading of LPG containers. The operations of this associate are currently suspended.

Subsidiary IPP holds an interest in Plenogás Distribuidora de Gás S.A., which is primarily engaged in the marketing of LPG. The operations of this associate are currently suspended.

The investment of subsidiary Oxiteno S.A. in the associate Oxicap is accounted for under the equity method of accounting based on its information as of May 31, 2013, while the other associates are valued based on the interim financial information as of June 30, 2013.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Transportadora Sulbrasileira de Gás S.A.		Oxicap Indústria de Gases Ltda.		Química da Bahia Indústria e Comércio S.A.		Metalúrgica Plus S.A.		Plenogás Distribuidora de Gás S.A.
Current assets	10,636		16,548		93		357		287
Non-current assets	20,299		76,675		9,852		611		2,926
Current liabilities	671		9,707		-		26		121
Non-current liabilities	332		75,592		2,681		1,709		3,794
Shareholders’ equity	29,932		7,924		7,264		(767)		(702)
Net revenue from sales and services	3,975		15,629		-		-		-
Costs, operating expenses and income	(2,147)		(15,848)		(25)		(86)		182
Net financial income and income and social contribution taxes	48		63		17		-		-
Net income (loss) for the period	1,876		(156)		(8)		(86)		182
Number of shares or units held	20,124,996		156		1,493,120		3,000		1,384,308
% of capital held	25		25		50		33		33
12/31/2012
Transportadora Sulbrasileira de Gás S.A.		Oxicap Indústria de Gases Ltda.		Química da Bahia Indústria e Comércio S.A.		Metalúrgica Plus S.A.		Plenogás Distribuidora de Gás S.A.
Current assets	8,074		15,300		207		364		30
Non-current assets	20,881		88,938		9,745		678		3,150
Current liabilities	565		7,712		-		15		92
Non-current liabilities	332		88,446		2,682		1,708		3,972
Shareholders’ equity	28,058		8,080		7,270		(681	)	(884	)
06/30/2012
Net revenue from sales and services	2,457		16,479		-		-		-
Costs, operating expenses and income	(2,015	)	(15,958	)	(72	)	(74	)	254
Net financial income and income and social contribution taxes	110		(138	)	(49	)	3		(11	)
Net income (loss) for the period	553		383		(121	)	(71	)	244
Number of shares or units held	20,124,996		156		1,493,120		3,000		1,384,308
% of capital held	25		25		50		33		33

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Property, plant and equipment (Consolidated)

Balances and changes in property, plant and equipment are as follows:


Cost:
Land	-	403,563		3,760		-		(10	)	(4,480	)	6,881		880		410,594
Buildings	28	1,152,647		641		-		31,700		(4,919	)	(279	)	1,236		1,181,026
Leasehold improvements	12	507,548		2,057		-		22,570		(631	)	-		3		531,547
Machinery and equipment	12	3,465,698		37,969		-		50,005		(1,484	)	18,048		(8,551	)	3,561,685
Automotive fuel/lubricant distribution equipment and facilities	14	1,816,791		32,558		-		28,153		(7,832	)	-		-		1,869,670
LPG tanks and bottles	12	441,006		40,510		-		(30	)	(19,896	)	-		-		461,590
Vehicles	9	198,674		7,210		-		4,991		(6,347	)	156		(298	)	204,386
Furniture and utensils	8	117,296		1,732		-		1,926		(140	)	-		(65	)	120,749
Construction in progress	-	294,328		104,869		-		(143,433	)	(1,468	)	-		3,413		257,709
Advances to suppliers	-	12,881		1,616		-		(729	)	-		-		-		13,768
Imports in progress	-	174		60		-		(82	)	-		-		3		155
IT equipment	5	197,881		5,130		-		846		(2,051	)	-		253		202,059
		8,608,487		238,112		-		(4,093	)	(49,248	)	24,806		(3,126	)	8,814,938
Accumulated depreciation:
Buildings		(496,449	)	-		(19,274	)	(923	)	2,740		-		901		(513,005	)
Leasehold improvements		(237,447	)	-		(16,293	)	(31	)	537		-		(2	)	(253,236	)
Machinery and equipment		(1,673,635	)	-		(108,210	)	925		832		-		11,640		(1,768,448	)
Automotive fuel/lubricant distribution equipment and facilities		(972,014	)	-		(52,325	)	1		5,149		-		-		(1,019,189	)
LPG tanks and bottles		(216,707	)	-		(13,738	)	28		8,847		-		-		(221,570	)
Vehicles		(89,221	)	-		(4,436	)	-		4,313		-		285		(89,059	)
Furniture and utensils		(83,447	)	-		(4,137	)	1		110		-		315		(87,158	)
IT equipment		(166,721	)	-		(6,146	)	(1	)	1,490		-		2		(171,376	)
		(3,935,641	)	-		(224,559	)	-		24,018		-		13,141		(4,123,041	)
Provision for loss:
Land		(197	)	-		-		-		-		-		-		(197	)
Machinery and equipment		(5,616	)	(157	)	-		-		298		-		-		(5,475	)
IT equipment		(3	)	-		-		-		2		-		-		(1	)
Vehicles		-		(106	)	-		-		5		-		-		(101	)
Furniture and utensils		(10	)	-		-		-		2		-		-		(8	)
		(5,826	)	(263	)	-		-		307		-		-		(5,782	)
Net amount		4,667,020		237,849		(224,559	)	(4,093)		(24,923	)	24,806		10,015		4,686,115

(1) For further information on the American Chemical acquisition see Note 3.a).

Construction in progress relates substantially to expansions and renovations in industrial facilities and terminals and construction and upgrade of service stations and fuel distribution bases.

Advances to suppliers of property, plant and equipment relate basically to manufacturing of equipment for expansion of plants, terminals and bases, modernization of service stations and acquisition of real estate.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Intangible assets (Consolidated)

Balances and changes in intangible assets are as follows:

Balance as of December 31, 2012	804,697		91,357		9,540		11,368		1,018,954		29,380		1,965,296
Additions	-		9,135		-		-		169,195		624		178,954
Write-offs	-		-		-		-		-		(111	)	(111	)
Transferences	-		3,905		-		-		(320	)	-		3,585
Amortization	-		(16,239	)	(2,975	)	(275	)	(145,622	)	(31	)	(165,142	)
Effect of foreign currency exchange rate variation	-		614		-		-		-		2,676		3,290
American Chemical acquisition (1)	(10,071	)	-		-		-		1,865		-		(8,206	)
Balance as of June 30, 2013	794,626		88,772		6,565		11,093		1,044,072		32,538		1,977,666
Weighted average useful life (years)			5		5		30		5		9

(1) For further information on the American Chemical acquisition see Note 3.a).

i) Goodwill from acquisition of companies was amortized until December 31, 2008, when its amortization ceased. The net remaining balance is tested annually for impairment analysis purposes.

The Company has the following balances of goodwill:


Goodwill on the acquisition of:
Ipiranga	276,724	276,724
Uniăo Terminais	211,089	211,089
Texaco	177,759	177,759
American Chemical	44,856	54,927
Temmar	43,781	43,781
DNP	24,736	24,736
Repsol	13,403	13,403
Other	2,278	2,278
	794,626	804,697

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

On December 31, 2012 the Company tested the balances of goodwill shown in the table above for impairment. The determination of value in use involves assumptions, judgments and estimates of cash flows, such as growth rates of revenues, costs and expenses, estimates of investments and working capital and discount rates. The assumptions about growth projections and future cash flows are based on the Company's business plan, as well as comparable market data, and represent management’s best estimate of the economic conditions that will exist over the economic life of the various CGUs, to which goodwill is related.

The evaluation of the value in use is calculated for a period of five years, after which we calculate the perpetuity, considering the possibility of carrying the business on indefinitely.

The discount and growth rates used to extrapolate the projections ranged from 10.4% to 29.6% and 0% to 3.5% p.a., respectively, depending on the CGU analyzed.

The Company’s goodwill impairment tests did not result in the recognition of losses for the year ended December 31, 2012.

ii) Software includes user licenses and costs for the implementation of the various systems used by the Company and its subsidiaries, such as: integrated management and control, financial management, foreign trade, industrial automation, operational and storage management, accounting information and other systems.

iii) The subsidiaries Oxiteno S.A., Oxiteno Nordeste and Oleoquímica Indústria e Comércio de Produtos Químicos Ltda. (“Oleoquímica”) recognize as technology certain rights of use held by them. Such licenses include the production of ethylene oxide, ethylene glycols, ethanolamines, glycol ethers, ethoxylates, solvents, fatty acids from vegetable oils, fatty alcohols, and specialty chemicals, which are products that are supplied to various industries.

iv) Commercial property rights include those described below:

•

On July 11, 2002, subsidiary Terminal Químico de Aratu – Tequimar (“Tequimar”) executed an agreement with CODEBA – Companhia das Docas do Estado da Bahia, which allows it to explore the area in which the Aratu Terminal is located for 20 years, renewable for a similar period. The price paid by Tequimar was R$ 12,000, which is being amortized over the period from August 2002 to July 2042.

•

In addition, subsidiary Tequimar has a lease contract for an area adjacent to the Port of Santos for 20 years from December 2002, renewable for a similar period, which allows the construction, operation, and use of a terminal for liquid bulk unloading, tank storage, handling, and distribution. The price paid by Tequimar was R$ 4,334, which is being amortized over the period from August 2005 to December 2022.

v) Distribution rights refer mainly to bonus disbursements as provided in Ipiranga’s agreements with resellers and large customers. Bonus disbursements are recognized when paid and recognized as an expense in the income statement over the term of the agreement (typically 5 years) which is reviewed as per the changes occurred in the agreements.

vi) Others are represented substantially by the acquisition cost of the ‘am/pm’ brand in Brazil.

The amortization expenses were recognized in the interim financial information as shown below:

Inventories and cost of products and services sold	6,399	7,099
Selling and marketing	143,588	110,221
General and administrative	15,155	13,500
	165,142	130,820

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Loans, debentures and finance leases (Consolidated)

a. Composition

Description			Index/Currency		Maturity
Foreign currency – denominated loans:
Notes in the foreign market (b)	552,286	508,883	US$	+7.3	2015
Foreign loan (c.1) (*)	174,598	159,550	US$ + LIBOR (i)	+0.8	2015
Advances on foreign exchange contracts	136,042	114,760	US$	+1.6	< 348 days
Foreign loan (c.2)	132,588	122,152	US$ + LIBOR (i)	+1.0	2014
Financial institutions (e)	91,805	84,007	US$	+2.3	2013 to 2017
BNDES (d)	52,604	59,291	US$	+5.6	2013 to 2020
Financial institutions (e)	44,343	40,641	US$ + LIBOR (i)	+2.0	2017
Foreign currency advances delivered	28,107	52,744	US$	+1.5	< 109 days
Financial institutions (e)	24,352	25,259	MX$ + TIIE (ii)	+1.3	2014 to 2016
Financial institutions (e)	10,500	30,194	Bs (iii)	+10.4	2013 to 2015
Subtotal	1,247,225	1,197,481
Brazilian Reais – denominated loans:
Banco do Brasil – floating rate (f)	2,293,069	668,900	CDI	103.3	2014 to 2019
Banco do Brasil – fixed rate (f) (*)	867,806	1,948,096	R$	+12.1	2014 to 2015
Debentures - 4th issuance (g)	811,081	845,891	CDI	108.3	2015
BNDES (d)	678,542	677,840	TJLP (iv)	+2.5	2013 to 2020
Debentures - 1st public issuance IPP (g)	605,406	602,328	CDI	107.9	2017
Banco do Nordeste do Brasil	112,101	118,754	R$	+8.5 (vi)	2018 to 2021
BNDES (d)	54,881	49,163	R$	+5.3	2015 to 2019
Finance leases (i)	45,096	42,419	IGP-M (v)	+5.6	2031
FINEP	30,804	30,789	R$	+4.0	2019 to 2021
Export Credit Note (h) (*)	16,264	-	R$	+8.0	2016
FINEP	12,486	23,488	TJLP (iv)	+0.0	2014
Fixed finance leases (i)	188	494	R$	+13.7	2013 to 2014
FINAME	48	510	TJLP (iv)	+2.8	2013
Subtotal	5,527,772	5,008,672
Currency and interest rate hedging instruments	4,071	9,699
Total	6,779,068	6,215,852
Current	1,744,575	1,627,955
Non-current	5,034,493	4,587,897

(*) These transactions were designated for hedge accounting (see Note 22 – Hedge accounting).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

(i)	LIBOR = London Interbank Offered Rate.
(ii)	MX$ = Mexican Peso; TIIE = the Mexican interbank balance interest rate.
(iii)	Bs = Venezuelan Bolivar.
(iv)	TJLP (Long-term Interest Rate) = set by the National Monetary Council, TJLP is the basic financing cost of BNDES. On June 30, 2013, TJLP was fixed at 5.0% p.a.
(v)	IGP-M = General Market Price Index is a measure of Brazilian inflation, calculated by the Getúlio Vargas Foundation.
(vi)	Contract linked to the rate of FNE (Northeast Constitutional Financing Fund) fund whose purpose is to foster the development of the industrial sector, administered by Banco do Nordeste do Brasil. On June 30, 2013, the FNE interest rate was 10% p.a. FNE grants a discount of 15% over the interest rate for timely payments.

The long-term consolidated debt had the following maturity schedule:

From 1 to 2 years	1,994,288	1,440,473
From 2 to 3 years	1,209,018	2,105,115
From 3 to 4 years	215,603	166,648
From 4 to 5 years	698,082	762,556
More than 5 years	917,502	113,105
	5,034,493	4,587,897

As provided in IAS 39 (CPC 8 (R1)), the transaction costs and issuance premiums associated with debt issuance by the Company and its subsidiaries were added to their financial liabilities, as shown in Note 14.j).

The Company’s management entered into hedging instruments against foreign exchange and interest rate variations for a portion of its debt obligations (see Note 22).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

b. Notes in the foreign market

In December 2005, the subsidiary LPG International Inc. (“LPG Inc.”) issued US$ 250 million in notes in the foreign market, maturing in December 2015, with interest rate of 7.2% p.a., paid semiannually. The issuance price was 98.7% of the note’s face value, which represented a total yield for investors of 7.4% p.a. upon issuance. The notes were guaranteed by the Company and its subsidiary Oxiteno S.A.

As a result of the issuance of these notes, the Company and its subsidiaries are required to undertake certain obligations, including:

•	Limitation on transactions with shareholders that hold 5% or more of any class of stock of the Company, except upon fair and reasonable terms no less favorable than could be obtained in a comparable arm’s-length transaction with a third party.
•	Required board approval for transactions with shareholders that hold 5% or more of any class of stock of the Company, or with their subsidiaries, in an amount higher than US$ 15 million (except transactions of the Company with its subsidiaries and between its subsidiaries).

• Restriction on sale of all or substantially all assets of the Company and subsidiaries LPG and Oxiteno S.A.

• Restriction on encumbrance of assets exceeding US$ 150 million or 15% of the value of the consolidated tangible assets.

The Company and its subsidiaries are in compliance with the levels of covenants required by these loans. The restrictions imposed on the Company and its subsidiaries are customary in transactions of this kind and have not limited their ability to conduct their business to date.

c. Foreign loan

1) In November 2012 the subsidiary IPP contracted a foreign loan in the amount of US$ 80 million, with maturity in November 2015 and interest of LIBOR + 0.8% p.a., paid quarterly. IPP also contracted hedging instruments with floating interest rate in U.S. dollar and exchange rate variation, changing the foreign loan charge to 104.1% of CDI (see Note 22). IPP designated these hedging instruments as a fair value hedge; therefore, loan and hedging instruments are both stated at fair value from inception. The foreign loan is secured by the Company.

2) The subsidiary Oxiteno Overseas Corp. has a foreign loan in the amount of US$ 60 million with maturity in June 2014 and interest of LIBOR + 1.0% p.a., paid semiannually. The Company, through its subsidiary Cia. Ultragaz, contracted hedging instruments with floating interest rate in dollar and exchange rate variation, changing the foreign loan charge to 86.9% of CDI (see Note 22). The foreign loan is guaranteed by the Company and its subsidiary Oxiteno S.A.

As a result of these foreign loans, some obligations mentioned in Note 14.b) must also be maintained by the Company and its subsidiaries. Additionally, during these contracts, the Company shall maintain the following financial ratios, calculated based on its audited consolidated interim financial information:

• Maintenance of a financial ratio, determined by the ratio between consolidated net debt and consolidated Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA), at less than or equal to 3.5.

• Maintenance of a financial ratio, determined by the ratio between consolidated EBITDA and consolidated net financial expenses, higher than or equal to 1.5.

The Company is in compliance with the levels of covenants required by these loans. The restrictions imposed on the Company and its subsidiaries are usual for this type of transactions and have not limited their ability to conduct their business to date.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

d. BNDES

The Company and its subsidiaries have financing from BNDES for some of their investments and for working capital.

During the term of these agreements, the Company must maintain the following capitalization and current liquidity levels, as determined in the annual consolidated audited balance sheet:

capitalization level: shareholders’ equity / total assets equal to or above 0.3; and
current liquidity level: current assets / current liabilities equal to or above 1.3.

e. Financial institutions

The subsidiaries Oxiteno Mexico S.A. de C.V., Oxiteno Andina, Oxiteno USA LLC and American Chemical have loans to finance investments and working capital.

f. Banco do Brasil

The subsidiary IPP has fixed and floating interest rate loans with Banco do Brasil to finance the marketing, processing or manufacturing of agricultural goods (ethanol). IPP contracted interest hedging instruments, thus converting the fixed rates for these loans into an average 99.3% of CDI (see Note 22). IPP designates these hedging instruments as a fair value hedge; therefore, loans and hedging instruments are both stated at fair value from inception. Changes in fair value are recognized in profit or loss.

These loans mature, as follows:

Maturity
Jan/14	391,330
Mar/14	241,080
Apr/14	61,444
May/14	432,013
May/15	435,793
Feb/16	511,313
May/16	301,852
May/19	786,050
Total	3,160,875

During the first and second quarters of 2013, IPP renegotiated loans with original maturities in those periods, in the notional amounts of R$ 500 million and R$ 300 million, changing the maturity to February 2016 and May 2016, respectively, with floating charges of 104.3% of CDI.

In the second quarter of 2013, IPP contracted an additional loan in the notional amount of R$ 800 million, maturing in May 2019 and floating charges of 104.0% of CDI.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

g. Debentures

· In December 2012, the subsidiary IPP made its first issuance of public debentures in single series of 60,000 simple, nonconvertible into shares, unsecured, nominative and registered debentures, and its main characteristics are as follows:

Face value unit:	R$ 10,000.00
Final maturity:	November 16, 2017
Payment of the face value:	Lump sum at final maturity
Interest:	107.9% of CDI
Payment of interest:	Semiannually
Reprice:	Not applicable

· In March 2012, the Company made its fourth issuance of debentures, in a single series of 800 simple, nonconvertible into shares, unsecured debentures, and its main characteristics are as follows:

Face value unit:	R$ 1,000,000.00
Final maturity:	March 16, 2015
Payment of the face value:	Lump sum at final maturity
Interest:	108.3% of CDI
Payment of interest:	Annually
Reprice:	Not applicable

h. Export credit note

In March 2013, the subsidiary Oxiteno Nordeste contracted an export credit note in the amount of R$ 17.5 million, with maturity in March 2016 and interest rate of 8% p.a., paid quarterly. Oxiteno Nordeste contracted interest hedging instruments, thus converting the fixed rates for these loans into 93.9% of CDI (see Note 22) . Oxiteno Nordeste designated these hedging instruments as a fair value hedge; therefore, loans and hedging instruments are both stated at fair value from inception. Changes in fair value are recognized in profit or loss.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

i. Finance leases

The subsidiary Cia. Ultragaz has a finance lease contract related to LPG bottling facilities, maturing in April 2031.

The subsidiary Serma – Associaçăo dos Usuários de Equipamentos de Processamento de Dados e Serviços Correlatos (“ Serma”) has finance lease contracts related to IT equipment with terms of 36 months. The subsidiary has the option to purchase the assets at a price substantially lower than the fair market price on the date of option, and management intends to exercise such option.

The financial leases contracts of vehicles for fuel transportation of the subsidiary Tropical Transportes Ipiranga Ltda. (“Tropical”) ended in March and April 2013, and the subsidiary received the property rights of the vehicles.

The amounts of equipments and intangible assets, net of depreciation and amortization, and of the liabilities corresponding to such equipments, are shown below:

LPG bottling facilities	IT equipment	Vehicles for fuel transportation	Total
Equipment and intangible assets, net of depreciation and amortization	32,151	498	835	33,484
Financing (present value)	45,096	188	-	45,284
Current	1,695	188	-	1,883
Non-current	43,401	-	-	43,401

LPG bottling facilities	IT equipment	Vehicles for fuel transportation	Total
Equipment and intangible assets, net of depreciation and amortization	34,649	765	847	36,261
Financing (present value)	42,419	410	84	42,913
Current	1,533	357	84	1,974
Non-current	40,886	53	-	40,939

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

The future disbursements (installments) assumed under these contracts are presented below:

LPG bottling facilities	IT equipment	Vehicles for fuel transportation	Total
Up to 1 year	3,949	226	-	4,175
From 1 to 2 years	3,949	-	-	3,949
From 2 to 3 years	3,949	-	-	3,949
From 3 to 4 years	3,949	-	-	3,949
From 4 to 5 years	3,949	-	-	3,949
More than 5 years	50,678	-	-	50,678
	70,423	226	-	70,649

LPG bottling facilities	IT equipment	Vehicles for fuel transportation	Total
Up to 1 year	3,655	385	113	4,153
From 1 to 2 years	3,655	55	-	3,710
From 2 to 3 years	3,655	-	-	3,655
From 3 to 4 years	3,655	-	-	3,655
From 4 to 5 years	3,655	-	-	3,655
More than 5 years	48,730	-	-	48,730
	67,005	440	113	67,558

The above amounts include Services Tax (“ISS”) payable on the monthly installments, except for disbursements for the LPG bottling facilities.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

j. Transaction costs

Transaction costs incurred in issuing debt were deducted from the value of the related financial instrument and are recognized as expense according to the effective interest rate method, as follows:

Banco do Brasil (f)	0.4	13,315	16,212	(5,206	)	-	24,321
Debentures (g)	0.4	8,116	-	(1,595	)	-	6,521
Notes in the foreign market (b)	0.2	3,021	-	(506	)	214	2,729
Other	0.2	1,435	-	(265	)	23	1,193
Total		25,887	16,212	(7,572	)	237	34,764

The amount to be appropriated to profit or loss in the future is as follows:

Banco do Brasil (f)	7,868	3,890	2,452	2,951	3,514	3,646	24,321
Debentures (g)	3,575	2,810	53	58	25	-	6,521
Notes in the foreign market (b)	1,091	1,092	546	-	-	-	2,729
Other	557	332	189	86	29	-	1,193
Total	13,091	8,124	3,240	3,095	3,568	3,646	34,764

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

k. Guarantees

The financings are guaranteed by collateral in the amount of R$ 39,255 as of June 30, 2013 (R$ 41,466 as of December 31, 2012) and by guarantees and promissory notes in the amount of R$ 2,540,277 as of June 30, 2013 (R$ 2,423,240 as of December 31, 2012).

In addition, the Company and its subsidiaries offer collateral in the form of letters of credit for commercial and legal proceedings in the amount of R$ 148,852 as of June 30, 2013 (R$ 179,387 as of December 31, 2012).

Some subsidiaries issued collateral to financial institutions in connection with the amounts owed by some of their customers to such institutions (vendor financing). If a subsidiary is required to make any payment under these collaterals, this subsidiary may recover the amount paid directly from its customers through commercial collection. The maximum amount of future payments related to these collaterals is R$ 9,007 as of June 30, 2013 (R$ 12,137 as of December 31, 2012), with maturities of less than 210 days. As of June 30, 2013, the Company and its subsidiaries did not have losses in connection with these collaterals. The fair value of collaterals recognized in current liabilities as other payables is R$ 221 as of June 30, 2013 (R$ 298 as of December 31, 2012), which is recognized as profit or loss as customers settle their obligations with the financial institutions.

Some financing agreements of the Company and its subsidiaries have cross default clauses that require them to pay the debt assumed in case of default of other debts equal to or greater than US$ 15 million. As of June 30, 2013, there was no event of default of the debts of the Company and its subsidiaries.

Trade payables (Consolidated)

Domestic suppliers	900,898	1,242,447
Foreign suppliers	85,361	55,288
	986,259	1,297,735

The Company and its subsidiaries acquire oil based fuels and LPG from Petróleo Brasileiro S.A. - Petrobras and its subsidiaries and ethylene from Braskem S.A. and Braskem Qpar S.A. These suppliers control almost all the markets for these products in Brazil. The Company and its subsidiaries depend on the ability of those suppliers to deliver products in a timely manner and at acceptable prices and terms. The loss of any major supplier or a significant reduction in product availability from these suppliers could have a significant adverse effect on the Company and its subsidiaries. The Company and its subsidiaries believe that their relationship with suppliers is satisfactory.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Salaries and related charges (Consolidated)

Profit sharing, bonus and premium	60,712	114,305
Provisions on payroll	113,713	93,596
Social charges	22,996	32,643
Salaries and related payments	8,550	9,305
Benefits	1,225	1,466
Others	673	1,211
	207,869	252,526

Taxes payable (Consolidated)

ICMS	77,758	71,255
PIS and COFINS	7,541	10,564
Value-Added Tax (IVA) of subsidiaries Oxiteno Mexico, Oxiteno Andina and American Chemical	9,600	8,818
ISS	5,106	5,703
IPI	4,791	4,502
National Institute of Social Security (INSS)	2,115	3,448
Income Tax Withholding (IRRF)	23,044	1,432
Others	4,643	1,951
	134,598	107,673

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Provision for assets retirement obligation – fuel tanks (Consolidated)

This provision corresponds to the legal obligation to remove Ipiranga’s underground fuel tanks located at Ipiranga-branded service stations after a certain use period (see Note 2.m).

Movements in the provision for assets retirement obligations are as follows:

Balance at December 31, 2012	70,411
Additions (new tanks)	266
Expense with tanks removed	(1,787	)
Accretion expense	2,569
Balance at June 30, 2013	71,459
Current	3,482
Non-current	67,977

Deferred revenue (Consolidated)

The Company and its subsidiaries have recognized the following deferred revenue:

Loyalty program “Km de Vantagens”	8,562	13,545
‘am/pm’ franchising upfront fee	13,228	14,362
	21,790	27,907
Current	13,059	18,054
Non-current	8,731	9,853

Ipiranga has a loyalty program called Km de Vantagens under which registered customers are rewarded with points when they buy products at Ipiranga service stations or at its partners. The customers may exchange these points, during the period of one year, for discounts on products and services offered by Ipiranga and its partners. Points received by Ipiranga’s customers that may be used with the partner Multiplus Fidelidade and for discounts of fuel in Ipiranga’s website (www.postoipiranganaweb.com.br) are considered part of the sales revenue based on the fair value of the points granted. Revenue is deferred based on the expected redemption of points, and is recognized in profit or loss when the points are redeemed, on which occasion the costs incurred are also recognized. Deferred revenue of unredeemed points is also recognized in profit or loss when the points expire.

The franchising upfront fee related to the ‘am/pm’ convenience store chain received by Ipiranga is deferred and recognized in profit or loss on an accrual basis, based on the substance of the agreements with the franchisees.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Shareholders’ equity

a. Share capital

The Company is a publicly traded company listed on BM&FBOVESPA in the Novo Mercado listing segment and on the New York Stock Exchange (NYSE) in the form of level III American Depositary Receipts (“ADRs”). The subscribed and paid-in capital stock consists of 544,383,996 common shares with no par value, and the issuance of preferred shares and participation certificates is prohibited. Each common share entitles its holder to one vote at Shareholders’ Meetings.

The Company is authorized to increase capital up to the limit of 800,000,000 common shares, without amendment to the Bylaws, by resolution of the Board of Directors.

As of June 30, 2013, there were 34,014,797 common shares outstanding abroad in the form of ADRs.

b. Treasury shares

The Company acquired its own shares at market prices, without capital reduction, to be held in treasury and to be subsequently disposed of or cancelled, in accordance with CVM Instructions 10, of February 14, 1980 and 268, of November 13, 1997. In the six months of 2013, there were no stock repurchases.

As of June 30, 2013, 7,971,556 common shares were held in the Company’s treasury, acquired at an average cost of R$ 14.42 per share.

The price of the shares issued by the Company as of June 30, 2013 on BM&FBOVESPA was R$ 53.12.

c. Capital reserve

The capital reserve reflects the gain on the transfer of shares at market price to be held in treasury by the Company’s subsidiaries, at an average price of R$ 17.44 per share. Such shares were used in the Deferred Stock Plan granted to executives of these subsidiaries, as mentioned in Note 8.c).

d. Revaluation reserve

The revaluation reserve reflects the revaluation of assets of subsidiaries and is based on depreciation, write-off, or disposal of the revalued assets of the subsidiaries, as well as the tax effects recognized by these subsidiaries.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

e. Profit reserves

Legal reserve

Under Brazilian Corporate Law, the Company is required to appropriate 5% of net annual earnings to a legal reserve, until the balance reaches 20% of capital stock. This reserve may be used to increase capital or absorb losses, but may not be distributed as dividends.

Retention of profits

Reserve recognized in previous fiscal years and used for investments contemplated in a capital budget, mainly for expansion, productivity, and quality, acquisitions and new investments, in accordance with Article 196 of Brazilian Corporate Law.

Investments reserve

In compliance with Article 194 of the Brazilian Corporate Law and Article 55.c) of the Bylaws this reserve is aimed to protect the integrity of the Company’s assets and to supplement its capital stock, in order to allow new investments to be made.

f. Other comprehensive income

Valuation adjustments

The differences between the fair value and amortized cost of financial investments classified as available for sale are recognized as valuation adjustments. The gains and losses recognized in the shareholders’ equity are reclassified to profit or loss in case the financial instruments are prepaid.

Gains and losses relating to post-employment benefits, calculated based on a valuation conducted by an independent actuary, are recognized in shareholders’ equity as valuation adjustments. Gains and losses recorded in equity are reclassified to profit or loss in case of settlement of the post-employment benefits plan.

Cumulative translation adjustments

The change in exchange rates on assets, liabilities and income of foreign subsidiaries that have (i) functional currency other than the presentation currency of the Company and (ii) an independent administration, is directly recognized in the shareholders’ equity. This accumulated effect is reflected in profit or loss as a gain or loss only in case of disposal or write-off of the investment.

g. Dividends

The shareholders are entitled, under the Bylaws, to a minimum annual dividend of 50% of adjusted net income calculated in accordance with Brazilian Corporate Law. The dividends and interest on equity in excess of the obligation established in the Bylaws are recognized in shareholders’ equity until they are approved by the Shareholders’ Meeting. The proposed dividends payable as of December 31, 2012 in the amount of R$ 354,032 (R$ 0.66 – sixty six cents of Brazilian Reais per share), were approved by the Board of Directors on February 20, 2013, having been ratified in the Annual General Shareholders’ Meeting on April 10, 2013 and paid on March 8, 2013.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Segment information

The Company operates four main business segments: gas distribution, fuel distribution, chemicals, and storage. The gas distribution segment (Ultragaz) distributes LPG to residential, commercial, and industrial consumers, especially in the South, Southeast, and Northeast regions of Brazil. The fuel distribution segment (Ipiranga) operates the distribution and marketing of gasoline, ethanol, diesel, fuel oil, kerosene, natural gas for vehicles and lubricants and related activities throughout all the Brazilian territory. The chemicals segment (Oxiteno) produces ethylene oxide and its main derivatives and fatty alcohols, which are the raw materials for the home and personal care, agrochemical, paints, varnishes, and other industries. The storage segment (Ultracargo) operates liquid bulk terminals, especially in the Southeast, and Northeast regions of Brazil. The segments shown in the interim financial information are strategic business units supplying different products and services. Inter-segment sales are at prices similar to those that would be charged to third parties.

The main financial information of each of the Company’s segments can be stated as follows:


Net revenue:
Ultragaz	1,925,197	1,893,162
Ipiranga	25,159,437	22,039,259
Oxiteno	1,576,016	1,371,058
Ultracargo	161,367	139,282
Others (1)	17,323	26,241
Intersegment sales	(35,268)	(40,037)
Total	28,804,072	25,428,965
Intersegment sales:
Ultragaz	647	460
Ipiranga	-	-
Oxiteno	15	-
Ultracargo	17,393	13,381
Others (1)	17,213	26,196
Total	35,268	40,037
Net revenue, excluding intersegment sales:
Ultragaz	1,924,550	1,892,702
Ipiranga	25,159,437	22,039,259
Oxiteno	1,576,001	1,371,058
Ultracargo	143,974	125,901
Others (1)	110	45
Total	28,804,072	25,428,965

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)


Operating income:
Ultragaz	70,781	57,441
Ipiranga	690,748	526,362
Oxiteno	121,389	105,269
Ultracargo	54,340	52,007
Others (1)	2,480	2,426
Total	939,738	743,505
Financial income	100,438	115,021
Financial expenses	(255,282)	(267,536)
Share of profit of joint-ventures and associates	(2,042)	5,968
Income before taxes	782,852	596,958


Additions to property, plant and equipment and intangible assets:
Ultragaz	84,437	98,270
Ipiranga	256,520	357,658
Oxiteno	53,824	74,488
Ultracargo	18,246	69,497
Others (1)	4,038	5,001
Total additions to property, plant and equipment and intangible assets (see Notes 12 and 13)	417,065	604,914
Assets retirement obligation – fuel tanks (see Note 18)	(267)	(1,119)
Capitalized borrowing costs	(3,681)	(4,891)
Total investments in property, plant and equipment and intangible assets (cash flow)	413,117	598,904


Depreciation and amortization charges:
Ultragaz	66,331	65,449
Ipiranga	220,471	182,202
Oxiteno	66,290	59,908
Ultracargo	23,199	15,162
Others (1)	5,946	5,436
Total	382,237	328,157

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)


Total assets:
Ultragaz	2,394,911	2,302,009
Ipiranga	7,400,685	7,619,164
Oxiteno	3,567,855	3,532,076
Ultracargo	1,309,981	1,330,569
Others (1)	912,879	465,736
Total	15,586,311	15,249,554

(1) Composed primarily of the parent company Ultrapar.

Geographic area information

The fixed and intangible assets of the Company and its subsidiaries are located in Brazil, except those related to Oxiteno’ plants abroad, as shown below:

Mexico	56,358	46,248
Venezuela	19,521	22,418
Uruguay	48,313	43,769
United States of America	77,246	48,922

The Company generates revenue from operations in Brazil, Mexico, Venezuela and, from November 1 st , 2012, in Uruguay, as well as from exports of products to foreign customers, as disclosed below:


Net revenue:
Brazil	28,337,553	25,023,015
Mexico	66,784	59,949
Venezuela	88,570	62,594
Other Latin American countries	164,845	160,715
United States of America and Canada	76,174	54,436
Far East	18,809	17,865
Europe	32,547	24,363
Other	18,790	26,028
Total	28,804,072	25,428,965

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Risks and financial instruments (Consolidated)

Risk management and financial instruments - Governance

The main risks to which the Company and its subsidiaries are exposed reflect strategic/operational and economic/financial aspects. Operational/strategic risks (including, but not limited to, demand behavior, competition, technological innovation, and material changes in the industry structure) are addressed by the Company’s management model. Economic/financial risks primarily reflect default of customers, behavior of macroeconomic variables, such as exchange and interest rates, as well as the characteristics of the financial instruments used by the Company and its subsidiaries and their counterparties. These risks are managed through control policies, specific strategies, and the establishment of limits.

The Company has a conservative policy for the management of resources, financial instruments and risks approved by its Board of Directors (“Policy”). In accordance with the Policy, the main objectives of financial management are to preserve the value and liquidity of financial assets and ensure financial resources for the development of the business, including expansions. The main financial risks considered in the Policy are risks associated with currencies, interest rates, credit and selection of financial instruments. Governance of the management of financial risks and financial instruments follows the segregation of duties below:

•	Implementation of the management of financial assets, instruments and risks is the responsibility of the financial area, through its treasury department, with the assistance of the tax and accounting departments.
•	Supervision and monitoring of compliance with the principles, guidelines and standards of the Policy is the responsibility of the Risk and Investment Committee composed of members of the Company’s Executive Board (“Committee”). The Committee holds regular meetings and is in charge, among other responsibilities, of discussing and monitoring the financial strategies, existing exposures, and significant transactions involving investment, fund raising, or risk mitigation. The Committee monitors the risk standards established by the Policy through a monitoring map on a monthly basis.
•	Changes in the Policy or revisions of its standards are subject to the approval of the Board of Directors of Ultrapar.
•	Continuous improvement of the Policy is the joint responsibility of the Board of Directors, the Committee, and the financial area.

• The internal audit department audits the compliance with the requirements of the Policy.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Currency risk

Most transactions of the Company and its subsidiaries are located in Brazil and, therefore, the reference currency for risk management is the Brazilian Real. Currency risk management is guided by neutrality of currency exposures and considers the transactional, accounting, and operational risks of the Company and its subsidiaries and their exposure to changes in exchange rates. The Company considers as its main currency exposures the assets and liabilities in foreign currency and the short-term flow of net sales in foreign currency of Oxiteno.

The Company and its subsidiaries use exchange rate hedging instruments (especially between the Brazilian Real and the U.S. dollar) available in the financial market to protect their assets, liabilities, receipts and disbursements in foreign currency, in order to reduce the effects of changes in exchange rates on its results and cash flows in Brazilian Reais within the exposure limits under its Policy. Such foreign exchange hedging instruments have amounts, periods, and rates substantially equivalent to those of assets, liabilities, receipts and disbursements in foreign currency to which they are related. Assets and liabilities in foreign currencies are stated below, translated into Brazilian Reais as of June 30, 2013 and as of December 31, 2012:

Assets and liabilities in foreign currencies

In millions of Brazilian Reais
Assets in foreign currency
Cash, cash equivalents and financial investments in foreign currency (except hedging instruments)	394.7		363.7
Foreign trade receivables, net of allowance for doubtful accounts	185.3		163.2
Investments in foreign subsidiaries (non-monetary assets net of non-monetary liabilities)	353.2		300.4
	933.2		827.3
Liabilities in foreign currency
Financing in foreign currency	(1,247.2	)	(1,197.5	)
Payables arising from imports, net of advances to foreign suppliers	(57.7	)	(21.5	)
	(1,304.9	)	(1,219.0	)
Foreign currency hedging instruments	484.8		499.9
Net asset position – Total	113.1		108.2

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Sensitivity analysis of assets and liabilities in foreign currency

The table below shows the effect of exchange rate changes in different scenarios, based on the net asset position of R$ 113.1 million in foreign currency:

In millions of Brazilian Reais	Risk	10%	25%	50%
(1) Income effect	Real devaluation	(6.2)	(15.4)	(30.8)
(2) Equity effect		17.5	43.7	87.4
(1) + (2)	Net effect	11.3	28.3	56.6
(3) Income effect	Real appreciation	6.2	15.4	30.8
(4) Equity effect		(17.5)	(43.7)	(87.4)
(3) + (4)	Net effect	(11.3)	(28.3)	(56.6)

Gains (losses) directly recognized in equity in cumulative translation adjustments are due to changes in the exchange rate on equity of foreign subsidiaries (see Note 2.r).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Interest rate risk

The Company and its subsidiaries adopt conservative policies for borrowing and investing financial resources and for capital cost minimization. The financial investments of the Company and its subsidiaries are primarily held in transactions linked to the CDI, as set forth in Note 4. Borrowings primarily relate to financing from Banco do Brasil, BNDES and other development agencies, debentures and borrowings in foreign currency, as shown in Note 14.

The Company does not actively manage risks associated with changes in the level of interest rates and attempts to maintain its financial interest assets and liabilities at floating rates. As of June 30, 2013, the Company and its subsidiaries had interest rate derivative financial instruments linked to domestic loans, swapping the fixed interest rate of certain debts to floating interest rate (CDI).

The table below shows the financial assets and liabilities exposed to floating interest rates as of June 30, 2013 and December 31, 2012:

	Note	06/30/2013
CDI
Cash equivalents	4	1,959,385		1,912,217
Financial investments	4	664,122		641,022
Asset position of hedging instruments - CDI	22	26,479		21,141
Loans and debentures	14	(3,709,556	)	(2,117,120	)
Liability position of hedging instruments - CDI	22	(448,368	)	(495,560	)
Liability position of hedging instruments from pre-fixed interest to CDI	22	(809,289	)	(1,796,682	)
Net liability position in CDI		(2,317,227	)	(1,834,982	)
TJLP
Loans –TJLP	14	(691,076	)	(701,838	)
Net liability position in TJLP		(691,076	)	(701,838	)
LIBOR
Asset position of hedging instruments - LIBOR	22	310,713		286,039
Loans - LIBOR	14	(351,529	)	(322,343	)
Net liability position in LIBOR		(40,816	)	(36,304	)
TIIE
Loans - TIIE	14	(24,352	)	(25,259	)
Net liability position in TIIE		(24,352	)	(25,259	)
Total net liability position		(3,073,471	)	(2,598,383	)

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Sensitivity analysis of floating interest rate risk

The table below shows the incremental expenses and income that would be recognized in financial income as of June 30, 2013, due the effect of floating interest rate changes in different scenarios:

In millions of Brazilian Reais	Risk	Scenario I	Scenario II	Scenario III
		10%	25%		50%
Exposure of interest rate risk
Interest on cash equivalents and financial investments effect	Increase in CDI	6.9	17.1		34.1
Hedge instruments (assets in CDI) effect	Increase in CDI	0.1	0.1		0.3
Interest on debt effect	Increase in CDI	(9.3)	(23.3	)	(46.6	)
Hedge instruments (liability in CDI) effect	Increase in CDI	(6.3)	(15.6	)	(31.3	)
Incremental expenses		(8.6)	(21.7	)	(43.5	)
Interest on debt effect	Increase in TJLP	(1.7)	(4.2	)	(8.4	)
Incremental expenses		(1.7)	(4.2	)	(8.4	)
Hedge instruments (assets in LIBOR) effect	Increase in LIBOR	0.2	0.5		1.0
Interest on debt effect	Increase in LIBOR	(0.1)	(0.2	)	(0.3	)
Incremental income		0.1	0.3		0.7
Interest on debt effect	Increase in TIIE	(0.1)	(0.1	)	(0.3)
Incremental expenses		(0.1)	(0.1	)	(0.3)

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Credit risks

The financial instruments that would expose the Company and its subsidiaries to credit risks of the counterparty are basically represented by cash and bank deposits, financial investments, hedging instruments and trade receivables.

Credit risk of financial institutions - Such risk results from the inability of financial institutions to comply with their financial obligations to the Company and its subsidiaries due to insolvency. The Company and its subsidiaries regularly conduct a credit review of the institutions with which they hold cash and cash equivalents, financial investments, and hedging instruments through various methodologies that assess liquidity, solvency, leverage, portfolio quality, etc. Cash and cash equivalents, financial investments, and hedging instruments are held only with institutions with a solid credit history, chosen for safety and soundness. The volumes of cash and cash equivalents, financial investments and hedging instruments are subject to maximum limits by institution and, therefore, require diversification of counterparty.

Government credit risk - The Company's policy allows investments in government securities from countries classified as investment grade AAA or Aaa by specialized credit rating agencies and in Brazilian government bonds. The volume of such financial investments is subject to maximum limits by each country and, therefore, requires diversification of counterparties.

Customer credit risk - Such risks are managed by each business unit through specific criteria for acceptance of customers and credit rating and are additionally mitigated by diversification of sales. No single customer or group accounts for more than 10% of total revenue.

The Company maintained the following allowances for doubtful accounts on trade receivables:

Ipiranga	119,011	111,789
Ultragaz	16,283	13,755
Oxiteno	2,136	2,647
Ultracargo	2,579	625
Total	140,009	128,816

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Liquidity risk

The Company and its subsidiaries’ main sources of liquidity derive from (i) cash, cash equivalents and financial investments, (ii) cash generated from operations and (iii) financings. The Company and its subsidiaries believe that these sources are sufficient to satisfy their current funding requirements, which include, but are not limited to, working capital, capital expenditures, amortization of debt and payment of dividends.

The Company and its subsidiaries periodically examine opportunities for acquisitions and investments. They consider different types of investments, either directly or through joint ventures, or associated companies, and finance such investments using cash generated from operations, debt financing, through capital increases or through a combination of these methods.

The Company and its subsidiaries believe to have enough working capital to satisfy their current needs. The gross indebtedness due over the next twelve months totals R$ 1,800.3 million, including estimated interests on loans. Furthermore, the investment plan for 2013 totals R$ 1,426 million. On June 30, 2013, the Company and its subsidiaries had R$ 3,084.7 million in cash, cash equivalents and short-term financial investments (for quantitative information, see Notes 4 and 14).

The table below presents a summary of financial liabilities as of June 30, 2013 to be settled by the Company and its subsidiaries, by maturity. The amounts disclosed in this table are the contractual undiscounted cash outflows, and, therefore, these amounts can be different from the amounts disclosed on the balance sheet as of June 30, 2013.

Financial liabilities	Total	Less than 1 year	Between 1 and 3 years	In millions of Brazilian Reais — Between 3 and 5 years	More than 5 years
Loans including future contractual interest (1) (2)	8,590.7	1,800.3	4,032.0	1,128.7	1,629.7
Currency and interest rate hedging instruments (3)	45.1	18.4	25.4	1.3	-
Trade payables	986.3	986.3	-	-	-

(1) To calculate the estimated interest on loans some macroeconomic assumptions were used, including, on average for the period: (i) CDI of 10.52% p.a., (ii) exchange rate of the Real against the U.S. dollar of R$ 2.31 in 2013, R$ 2.50 in 2014, R$ 2.74 in 2015, R$ 2.96 in 2016 and R$ 3.15 in 2017 (iii) TJLP of 5.0% p.a. and (iv) IGP-M of 4.9% p.a. in 2013 and 5.6% p.a. in 2014, 5.5% in 2015, 5.5% in 2016 and 5.5% in 2017.

(2) Includes estimated interest payments on short-term and long-term loans until the payment.

(3) The currency and interest rate hedging instruments were estimated based on projected U.S dollar futures contracts and the futures curve of DI x Pre contract quoted on BM&FBOVESPA as of June 28, 2013, and on the futures curve of LIBOR (BBA - British Bankers Association) on June 28, 2013. In the table above, only the hedging instruments with negative result at the time of settlement were considered.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Capital management

The Company manages its capital structure based on indicators and benchmarks. The key performance indicators related to the capital structure management are the weighted average cost of capital, and the net debt / EBITDA, interest coverage and indebtedness / equity ratios. Net debt is composed of cash, cash equivalents and financial investments (see Note 4) and loans, including debentures (see Note 14). The Company can change its capital structure depending on the economic and financial conditions, in order to optimize its financial leverage and capital management. The Company seeks to improve its return on capital employed by implementing an efficient working capital management and a selective investment program.

Selection and use of financial instruments

In selecting financial investments and hedging instruments, an analysis is conducted to estimate rates of return, risks involved, liquidity, calculation methodology for the carrying value and fair value, and documentation applicable to the financial instruments. The financial instruments used to manage the financial resources of the Company and its subsidiaries are intended to preserve value and liquidity.

The Policy contemplates the use of derivative financial instruments only to cover identified risks and in amounts consistent with the risk (limited to 100% of the identified risk). The risks identified in the Policy are described in the above sections, and are subject to risk management. In accordance with the Policy, the Company and its subsidiaries can use forward contracts, swaps, options, and futures contracts to manage identified risks. Leveraged derivative instruments are not permitted. Because the use of derivative financial instruments is limited to the coverage of identified risks, the Company and its subsidiaries use the term “hedging instruments” to refer to derivative financial instruments.

As mentioned in the section “Risk management and financial instruments – Governance”, the Committee monitors compliance with the risk standards established by the Policy through a risk monitoring map, including the use of hedging instruments, on a monthly basis. In addition, the internal audit department verifies the compliance with the requirements of the Policy.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

The table below summarizes the position of hedging instruments adopted by the Company and its subsidiaries:

Hedging instruments	Counterparty	Maturity	Notional amount 1
			06/30/2013			12/31/2012		06/30/2013		12/31/2012		Amount receivable		Amount payable
								R$ million		R$ million		R$ million		R$ million
a –Exchange rate swaps receivable in U.S. dollars
Receivables in U.S. dollars (LIBOR)	Bradesco, BTMU,	Jul 2013	US$	140.0		US$	140.0		310.7		286.0		310.7	-
Receivables in U.S. dollars (Pre)	Citibank, HSBC, Itaú,	to Apr 2017	US$	89.0		US$	111.3		202.5		234.7		202.5	-
Payables in CDI interest rate	JP Morgan,		US$	(229.0	)	US$	(251.3	)	(448.4	)	(495.5	)	-	448.4
Total result	Santander			-			-		64.8		25.2		513.2	448.4
b – Exchange rate swaps payable in U.S. dollars + COUPON
Receivables in CDI interest rates	Bradesco,	Jul 2013	US$	12.7		US$	10.2		26.4		21.1		26.4	-
Payables in U.S. dollars	HSBC,	to Aug 2013	US$	(12.7	)	US$	(10.2	)	(28.3	)	(20.8	)	-	28.3
Total result	Itaú			-			-		(1.9	)	0.3		26.4	28.3
c – Interest rate swaps in R$
Receivables in fixed interest rate	Banco	May 2014 to	R$	617.5		R$	1,400.0		891.1		1,958.9		891.1	-
Payables in CDI interest rate	do Brasil,	Mar 2016	R$	(617.5	)	R$	(1,400.0	)	(809.3	)	(1,796.7	)	-	809.3
Total result	Itaú			-			-		81.8		162.2		891.1	809.3
Total gross result									144.7		187.7		1,430.7	1,286.0
Income tax									(18.6	)	(18.3	)	(18.6	)	-
Total net result									126.1		169.4		1,412.1	1,286.0
Positive result (see Note 4)									130.2		179.1
Negative result (see Note 14)									(4.1	)	(9.7	)
1 In million. Currency as indicated.

All transactions mentioned above were properly registered with CETIP S.A.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Hedging instruments existing as of June 30, 2013 are described below, according to their category, risk, and protection strategy:

a - Hedging against foreign exchange exposure of liabilities in foreign currency - The purpose of these contracts is (i) to offset the effect of the change in exchange rates of debts or firm commitments in U.S. dollars by converting them into debts or firm commitments in Brazilian Reais linked to CDI and (ii) change a financial investment linked to the CDI and given as guarantee to loan in U.S. dollar, into a financial investment linked to U.S. dollar. As of June 30, 2013, the Company and its subsidiaries had outstanding swap contracts totaling US$ 229.0 million in notional amount with liability position, on average of 106.2% of CDI, of which US$ 89.0 million, on average, had asset position at US$ + 4.8% p.a. and US$ 140.0 million had asset position at US$ + LIBOR + 1.0% p.a.

b - Hedging against foreign exchange exposure of operations - The purpose of these contracts is to make the exchange rate of the revenues of subsidiaries Oleoquímica, Oxiteno S.A. and Oxiteno Nordeste equal to the exchange rate of the cost of their main raw materials. As of June 30, 2013, these swap contracts totaled US$ 12.7 million and, on average, had an asset position at 74.4% of CDI and liability position at US$ + 0.0% p.a.

c - Hedging against the interest rate fixed in local financing - The purpose of these contracts is to convert the interest rate on financing contracted in Brazilian Reais from fixed into floating. On June 30, 2013 these swap contracts totaled R$ 617.5 million of notional amount, and on average had an asset position at 12.0% p.a. and liability position at 99.1% of CDI.

Hedge accounting

The Company and its subsidiaries test, throughout the duration of the hedge, the effectiveness of their derivatives, as well as the changes in their fair value. The Company and its subsidiaries designate as fair value hedges certain derivative financial instruments used to offset the variations in interest and exchange rates, based on the market value of financing contracted in Brazilian Reais and U.S. dollars.

On June 30, 2013 the notional amount of interest rate hedging instruments totaled R$ 617.5 million referring to the principal of the pre-fixed loans in Brazilian Reais. As of June 30, 2013, a loss of R$ 18.7 million related to the result of hedging instruments, an income of R$ 54.5 million related to the fair value adjustment of debt and an expense of R$ 80.3 million related to the accrued interest rate of the debt were recognized in the income statements, transforming the average effective cost of the operations into 99.1% of CDI.

On June 30, 2013 the notional amount of foreign exchange hedging instruments designated as fair value hedge totaled US$ 80.0 million. As of June 30, 2013, a gain of R$ 9.4 million related to the result of hedging instruments, an expense of R$ 0.7 million related to the fair value adjustment of debt and an expense of R$ 14.8 million related to the financial expense of the debt were recognized in the income statements, transforming the average effective cost of the operation into 104.1% of CDI (see Note 14.c.1).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Gains (losses) on hedging instruments

The following tables summarize the values of gains (losses) recognized as of June 30, 2013 and 2012, which affected the income statement and shareholders’ equity of the Company and its subsidiaries:


R$ million
Profit or loss		Equity
a – Exchange rate swaps receivable in U.S. dollars (i) (ii)	(12.6	)	-
b – Exchange rate swaps payable in U.S. dollars	(1.7	)	-
c – Interest rate swaps in R$ (iii)	35.7		-
Total	21.4		-


R$ million
Profit or loss		Equity
a – Exchange rate swaps receivable in U.S. dollars (i)	(9.7	)	-
b – Exchange rate swaps payable in U.S. dollars	(0.2	)	-
c – Interest rate swaps in R$ (iii)	22.3		-
Total	12.4		-

The table above: (i) does not consider the effect of exchange rate variation of exchange swaps receivable in U.S. dollars, when this effect is offset in the gain or loss of the hedged item (debt), (ii) considers the designation effect of foreign exchange hedging and (iii) considers the designation effect of interest rate hedging in Brazilian Reais.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Fair value of financial instruments

The fair values and the carrying values of the financial instruments, including currency and interest rate hedging instruments, as of June 30, 2013 and December 31, 2012, are stated below:

			06/30/2013 — Carrying	Fair	12/31/2012 — Carrying	Fair
	Category	Note	value	value	value	value
Financial assets:
Cash and cash equivalents
Cash and bank deposits	Loans and receivables	4	96,332	96.332	79,652	79,652
Financial investments in local currency	Measured at fair value through profit or loss	4	1,959,385	1,959,385	1,912,217	1,912,217
Financial investments in foreign currency	Measured at fair value through profit or loss	4	4,444	4,444	29,245	29,245
Financial investments
Fixed-income securities and funds in local currency	Available for sale	4	653,504	653,504	630,404	630,404
Fixed-income securities and funds in local currency	Held to maturity	4	10,618	10,618	10,618	10,618
Fixed-income securities and funds in foreign currency	Available for sale	4	334,682	334,682	290,636	290,636
Currency and interest rate hedging instruments	Measured at fair value through profit or loss	4	130,244	130,244	179,056	179,056
Total			3,189,209	3,189,209	3,131,828	3,131,828
Financial liabilities:
Financing	Measured at fair value through profit or loss	14	1,058,668	1,058,668	1,948,096	1,948,096
Financing	Measured at amortized cost	14	4,254,558	4,301,630	2,766,925	2,842,869
Debentures	Measured at amortized cost	14	1,416,487	1,408,620	1,448,219	1,450,300
Finance leases	Measured at amortized cost	14	45,284	45,284	42,913	42,913
Currency and interest rate hedging instruments	Measured at fair value through profit or loss	14	4,071	4,071	9,699	9,699
Total			6,779,068	6,818,273	6,215,852	6,293,877

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

The fair value of financial instruments, including currency and interest hedging instruments, was determined as follows:

•	The fair values of cash and bank deposits balances are identical to their carrying values.
•	Financial investments in investment funds are valued at the value of the fund unit as of the date of the reporting period, which corresponds to their fair value.
•	Financial investments in CDBs (Bank Certificates of Deposit) and similar investments offer daily liquidity through repurchase at the “yield curve” and, therefore, the Company believes their fair value corresponds to their carrying value.

• The fair value calculation of LPG Inc.’s notes in the foreign market (see Note 14.b) is based on the quoted prices in an active market.

The fair value of other financial investments and financings was determined using calculation methodologies commonly used for marking-to-market, which consist of calculating future cash flows associated with each instrument adopted and adjusting them to present value at the market rates as of June 30, 2013 and December 31, 2012. For some cases where there is no active market for the financial instrument, the Company and its subsidiaries can use quotes provided by the transaction counterparties.

The interpretation of market information on the choice of calculation methodologies for the fair value requires considerable judgment and estimates to obtain a value deemed appropriate to each situation. Consequently, the estimates presented do not necessary indicate the amounts that may be realized in the current market.

Financial instruments were classified as loans and receivables or financial liabilities measured at amortized cost, except (i) all exchange rate and interest rate hedging instruments, which are measured at fair value through profit or loss, (ii) financial investments classified as measured at fair value through profit or loss, (iii) financial investments that are classified as available for sale, which are measured at fair value through other comprehensive income (see Note 4), (iv) fundings measured at fair value through profit or loss (see Note 14) and (v) guarantees to customers that have vendor arrangements (see Note 14.k), which are measured at fair value through profit or loss. The financial investments classified as held-to-maturity are measured at amortized cost. Cash, banks and trade receivables are classified as loans and receivables. Trade payables and other payables are classified as financial liabilities measured at amortized cost.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Fair value hierarchy of financial instruments on the balance sheet

The financial instruments recognized at fair value on the balance sheet are classified in the following categories:

(a) Level 1 - prices negotiated (without adjustment) in active markets for identical assets or liabilities;

(b) Level 2 - inputs other than prices negotiated in active markets included in Level 1 and observable for the asset or liability, either directly (as prices) or indirectly (derived from prices); and

(c) Level 3 - inputs for the asset or liability which are not based on observable market variables (unobservable inputs).

The table below shows a summary of the financial assets and financial liabilities measured at fair value in the Company’s and its subsidiaries’ balance sheet as of June 30, 2013 and December 31, 2012:

	Category	Note
Financial assets:
Cash equivalents
Financial investments in local currency	Measured at fair value through profit or loss	4	1,959,385	1,959,385	-	-
Financial investments in foreign currency	Measured at fair value through profit or loss	4	4,444	4,444	-	-
Financial investments
Fixed-income securities and funds in local currency	Available for sale	4	653,504	653,504	-	-
Fixed-income securities and funds in foreign currency	Available for sale	4	334,682	87,156	247,526	-
Currency and interest rate hedging instruments	Measured at fair value through profit or loss	4	130,244	-	130,244	-
Total			3,082,259	2,704,489	377,770	-
Financial liabilities:
Financing	Measured at fair value through profit or loss	14	1,058,668	-	1,058,668	-
Currency and interest rate hedging instruments	Measured at fair value through profit or loss	14	4,071	-	4,071	-
Total			1,062,739	-	1,062,739	-

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

	Category	Note
Financial assets:
Cash equivalents
Financial investments in local currency	Measured at fair value through profit or loss	4	1,912,217	1,912,217	-	-
Financial investments in foreign currency	Measured at fair value through profit or loss	4	29,245	29,245	-	-
Financial investments
Fixed-income securities and funds in local currency	Available for sale	4	630,404	630,404	-	-
Fixed-income securities and funds in foreign currency	Available for sale	4	290,636	84,872	205,764	-
Currency and interest rate hedging instruments	Measured at fair value through profit or loss	4	179,056	-	179,056	-
Total			3,041,558	2,656,738	384,820	-
Financial liabilities:
Financing – Banco do Brasil fixed	Measured at fair value through profit or loss	14	1,948,096	-	1,948,096	-
Currency and interest rate hedging instruments	Measured at fair value through profit or loss	14	9,699	-	9,699	-
Total			1,957,795	-	1,957,795	-

Sensitivity analysis

The Company and its subsidiaries use derivative financial instruments only to hedge against identified risks and in amounts consistent with the risk (limited to 100% of the identified risk). Thus, for purposes of sensitivity analysis of market risks associated with financial instruments, as required by CVM Instruction 475/08, the Company analyzes the hedging instrument and the hedged item together, as shown on the charts below.

For the sensitivity analysis of foreign exchange hedging instruments, management adopted as a likely scenario the Real/U.S. dollar exchange rates at maturity of each swap, projected by U.S dollar futures contracts quoted on BM&FBOVESPA as of June 28, 2013. As a reference, the exchange rate for the last maturity of foreign exchange hedging instruments is R$ 3.02 in the likely scenario. Scenarios II and III were estimated with a 25% and 50% additional appreciation or depreciation of the Brazilian Real against the likely scenario, according to the risk to which the hedged item is exposed.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Based on the balances of the hedging instruments and hedged items as of June 30, 2013, the exchange rates were replaced, and the changes between the new balance in Brazilian Reais and the balance in Brazilian Reais as of June 30, 2013 were calculated in each of the three scenarios. The table below shows the change in the values of the main derivative instruments and their hedged items, considering the changes in the exchange rate in the different scenarios:

	Risk
Currency swaps receivable in U.S. dollars
(1) U.S. Dollar / Real swaps	Dollar	89,141		238,531		387,921
(2) Debts/firm commitments in dollars	appreciation	(89,133	)	(238,535	)	(387,936	)
(1)+(2)	Net effect	8		(4	)	(15	)
Currency swaps payable in U.S. dollars
(3) Real / U.S. Dollar swaps	Dollar	(285	)	6,809		13,902
(4) Gross margin of Oxiteno	devaluation	285		(6,809	)	(13,902	)
(3)+(4)	Net effect	-		-		-

For sensitivity analysis of hedging instruments for interest rates in Brazilian Reais, the Company used the futures curve of DI x Pre contract on BM&FBOVESPA as of June 28, 2013 for each of the swap and debt (hedged item) maturities, to determine the likely scenarios. Scenarios II and III were estimated based on a 25% and 50% deterioration, respectively, of the likely scenario pre-fixed interest rate.

Based on the three scenarios of interest rates in Brazilian Reais, the Company estimated the values of its debt and hedging instruments according to the risk which is being hedged (variations in the pre-fixed interest rates in Brazilian Reais), by projecting them to future value at the contracted rates and bringing them to present value at the interest rates of the estimated scenarios. The result is shown in the table below:

	Risk
Interest rate swap (in R$)
(1) Fixed rate swap - CDI	Decrease in	-	29,345		60,550
(2) Fixed rate financing	Pre-fixed rate	-	(29,345	)	(60,549	)
(1)+(2)	Net effect	-		-	1

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Provisions, contingencies and commitments (Consolidated)

a. Provisions for tax, civil and labor risks

The Company and its subsidiaries are parties in tax, civil and labor disputes and are discussing these issues both at the administrative and judiciary levels, which, when applicable, are backed by escrow deposits. Provisions for losses are estimated and updated by management, supported by the opinion of the legal departments of the Company and its outside legal counsel.

The table below demonstrates the breakdown of provisions by nature and its movement:

Provisions — IRPJ and CSLL	305,815	15,464	(641)	7,648	328,286
PIS and COFINS	82,938	-	-	2,070	85,008
ICMS	62,491	728	(17,422)	1,145	46,942
INSS	12,789	93	-	333	13,215
Civil litigation	91,242	8,688	(3,606)	-	96,324
Labor litigation	44,186	3,132	(2,537)	-	44,781
Other	1,016	80	-	31	1,127
Total	600,477	28,185	(24,206)	11,227	615,683
Current	49,514				53,017
Non-current	550,963				562,666

Some of the provisions above involve escrow deposits in the amount of R$ 423,637 as of June 30, 2013 (R$ 401,847 as of December 31, 2012).

b. Tax matters

Provisions

On October 7, 2005, the subsidiaries Cia. Ultragaz and Bahiana Distribuidora de Gás Ltda. (“Bahiana”) filed for and obtained a preliminary injunction to recognize and offset PIS and COFINS credits on LPG purchases, against other taxes levied by the Brazilian Federal Revenue Service, notably IRPJ and CSLL. The decision was confirmed by a trial court on May 16, 2008. Under the preliminary injunction, the subsidiaries were required to make escrow deposits for these debits in the accumulated amount of R$ 308,042 as of June 30, 2013 (R$ 291,483 as of December 31, 2012) and have recognized a corresponding liability.

The subsidiary IPP has provisions for IRPJ and CSLL related to the unconstitutionality of Law No. 9316/1996, that denied the deduction of CSLL from the IRPJ tax basis, in the amount of R$ 19,420 as of June 30, 2013 (R$ 19,120 as of December 31, 2012).

The subsidiaries Oxiteno S.A., Oxiteno Nordeste, Cia. Ultragaz, Tequimar, Tropical, Empresa Carioca de Produtos Químicos S.A. (“EMCA”) and IPP filed for a preliminary injunction seeking the deduction of ICMS from their PIS and COFINS tax bases. Oxiteno Nordeste and IPP obtained the right to pay the amounts into escrow deposits through an injunction, and recognized a corresponding provision in the amount of R$ 83,668 as of June 30, 2013 (R$ 81,622 as of December 31, 2012).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

The subsidiary Oxiteno S.A. decided to pay off, within the Decree 58811/2012 amnesty issued by the State of Săo Paulo, a tax assessment based on alleged u ndue ICMS credits taken on invoices issued for the symbolic return of raw materials that had previously been delivered to the subsidiary Oxiteno Nordeste for industrialization. The provision in the amount of R$ 15,364 was paid in April 2013 (R$ 15,226 as of December 31, 2012).

The subsidiary IPP and its subsidiaries have provisions related to ICMS, mainly with respect to: (a) tax notices filed in connection with interstate sales of fuel to industrial customers without the payment of ICMS in accordance with the interpretation of Article 2 of Supplementary Law No. 87/1996, R$ 12,289 as of June 30, 2013 (R$ 11,741 as of December 31, 2012), and (b) payment of ICMS for several reasons that resulted in tax assessments for which the proof of payment is not so evident, R$ 18,570 as of June 30, 2013 (R$ 19,499 as of December 31, 2012).

Contigent liabilities

The main tax claims of subsidiary IPP and its subsidiaries classified as having a possible risk of loss, and that have not been recognized in the interim financial information due to this assessment, are related to: (a) the required proportional reversal of ICMS credits recognized on the purchase of ethanol that was later resold at lower prices as a result of PROÁLCOOL, a Federal Government program to encourage alcohol production, determining the anticipation of financial subsidy by the distributors to the mill owners and their subsequent reimbursement by the DNC (current National Oil Agency), R$ 108,752 as of June 30, 2013 (R$ 104,086 as of December 31, 2012), (b) alleged undue ICMS credits for which the tax authorities understand that there was no proof of origin, R$ 29,105 as of June 30, 2013 (R$ 23,901 as of December 31, 2012), (c) assessments for alleged non-payment of ICMS, R$ 24,282 as of June 30, 2013 (R$ 23,096 as of December 31, 2012), (d) assessment issued in Ourinhos/SP in connection with the return of ethanol loans made with deferred tax, R$ 38,662 as of June 30, 2013 (R$ 36,324 as of December 31, 2012), (e) assessments in the State of Rio de Janeiro demanding the reversal of ICMS credits on interstate sales made under Article 33 of ICMS Convention 66/88, which allowed the use of the ICMS credit but was suspended by an injunction granted by STF, R$ 16,927 as of June 30, 2013 (R$ 16,060 as of December 31, 2012), (f) ICMS credits taken in relation to bills considered invalid, though the understanding of the STJ (the Brazilian High Court of Justice) is that it is possible to take credit, even if there is defect in the document of the seller, as long as it is confirmed that the transaction occurred, R$ 27,226 as of June 30, 2013 (R$ 28,515 as of December 31, 2012); (g) assessments arising from surplus or shortage of inventory, generated by differences in temperature or handling of the product, without the corresponding issuance of invoices, R$ 27,990 as of June 30, 2013 (R$ 31,380 as of December 31, 2012), (h) infraction relating to ICMS credits due to alleged non-compliance with legal formalities, R$ 35,895 as of June 30, 2013 (R$ 35,032 as of December 31, 2012) and; (i) assessments arising from ICMS credits related to inputs of ethanol from certain States that had granted tax benefits to producers of alcohol in alleged disagreement with the law, R$ 29,629 as of June 30, 2013 (R$ 24,662 as of December 31, 2012).

The subsidiary IPP has assessments invalidating the set-off of IPI credits in connection with the purchase of raw materials used in the manufacturing of products which sales are not subject to IPI under the protection of tax immunity. The non-provisioned amount of this contingency, as of June 30, 2013, is R$ 98,349 (R$ 81,868 as of December 31, 2012).

Contigent assets

The Company and its subsidiaries have favorable judgments to pay contributions to PIS and COFINS without the changes introduced by Law 9718/1998 in its original version. The ongoing questioning refers to the levy of these contributions on sources of income other than gross revenue. In 2005, the STF (the Brazilian Supreme Federal Court) decided the question in favor of the taxpayers. Although this has set a favorable precedent, the effect of this decision does not automatically apply to all companies, since they must await the formal decision in their own lawsuits. Certain lawsuits of the Company’s subsidiaries are currently pending trial and, in the event all such lawsuits are decided in favor of the subsidiaries, the Company estimates that the total positive effect on income before income and social contribution taxes, may reach R$ 35,588, net of attorney’s fees.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

c. Civil claims

Provisions

The Company and its subsidiaries maintained provisions for lawsuits and administrative proceedings, mainly derived from contracts entered into with customers and former services providers, as well as proceedings related to environmental issues in the amount of R$ 96,324 as of June 30, 2013 (R$ 91,242 as of December 31, 2012).

Contingent liabilities

The subsidiary Cia. Ultragaz is party to an administrative proceeding before CADE (Brazilian antitrust authority) based on alleged anti-competitive practices in the State of Minas Gerais in 2001. The CADE entered a decision against Cia. Ultragaz imposing a penalty of R$ 23,104. The imposition of such administrative decision was suspended by a court order and its merit is being judicially reviewed. Based on the above elements and on the opinion of its legal counsel, the subsidiary did not recognized a provision for this contingency.

d. Labor matters

Provisions

The Company and its subsidiaries maintained provisions of R$ 44,781 as of June 30, 2013 (R$ 44,186 as of December 31, 2012) for labor litigation filed by former employees and by employees of our service providers mainly contesting the non-payment of labor rights.

Contingent liabilities

In 1990, the Petrochemical Industry Labor Union (Sindiquímica), of which the employees of Oxiteno Nordeste and EMCA, companies located in the Camaçari Petrochemical Complex, are members, filed separate lawsuits against the subsidiaries demanding the compliance with the fourth section of the collective labor agreement, which provided for a salary adjustment in lieu of the salary policies practiced. In the same year, a collective labor dispute was also filed by the Union of Employers (SINPEQ) against Sindiquímica, requiring the recognition of the loss of effectiveness of such fourth section. Individual claims were rejected. The collective bargain agreement is currently pending trial by STF. In the second half of 2010, some companies in the Camaçari Petrochemical Complex signed an agreement with Sindiquímica and reported the fact in the collective bargain agreement dispute. Based on the opinion of their legal advisors, that reviewed the latest STF decision in the collective bargain agreement dispute as well as the status of the individual claims involving the subsidiaries Oxiteno Nordeste and EMCA, the management of such subsidiaries believed that it was not necessary to recognize a provision as of June 30, 2013.

The Company and its subsidiaries have other pending administrative and legal proceedings of tax, civil and labor nature, individually less relevant, which were estimated by their legal counsel as possible and/or remote risk (proceedings whose chance of loss is 50% or less), and the related potential losses were not provided for by the Company and its subsidiaries based on these opinions. The Company and its subsidiaries are also litigating for recovery of taxes and contributions, which were not recognized in the interim financial information due to their contingent nature.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

e. Contracts

Subsidiary Tequimar has agreements with CODEBA and Complexo Industrial Portuário Governador Eraldo Gueiros, in connection with its port facilities in Aratu and Suape, respectively. Such agreements establish a minimum cargo movement of products, as shown below:

Port	Minimum movement in tons per year	Maturity
Aratu	100,000	2016
Aratu	900,000	2022
Suape	250,000	2027
Suape	400,000	2029

If the annual movement is less than the minimum contractual movement, the subsidiary is liable to pay the difference between the effective movement and the minimum contractual movement, based on the port tariff rates in effect on the date established for payment. As of June 30, 2013, these rates were R$ 5.79 per ton for Aratu and R$ 1.38 per ton for Suape. The subsidiary has met the minimum cargo movement required since the beginning of the agreements.

Subsidiary Oxiteno Nordeste has a supply agreement with Braskem S.A. which establishes a minimum quarterly consumption level of ethylene and conditions for the supply of ethylene until 2021. The minimum purchase commitment clause provides a minimum annual consumption of 205 thousand tons and a maximum of 220 thousand tons. The minimum purchase commitment and the actual demand accumulated to June 30, 2013 and 2012, expressed in tons of ethylene, are shown below. Should the minimum purchase commitment not be met, the subsidiary would be liable for a fine of 40% of the current ethylene price for the quantity not purchased.

06/30/2013		06/30/2012		06/30/2013	06/30/2012
In tons of ethylene	104,484	(*)	103,445	(*)	108,292	105,006

(*) Adjusted for scheduled shutdowns in Braskem S.A. during the periods.

Subsidiary Oxiteno S.A has a supply agreement with Braskem Qpar S.A., valid until 2023, which establishes and regulates the conditions for supply of ethylene to Oxiteno based on the international market for this product. The minimum purchase is 22,050 tons of ethylene semiannually. Should the minimum purchase commitment not be met, the subsidiary would be liable for a fine of 30% of the current ethylene price for the quantity not purchased. The subsidiary has met the minimum purchase required in the agreement.

06/30/2013		06/30/2012		06/30/2013	06/30/2012
In tons of ethylene	19,614	(*)	18,518	(*)	19,888	19,759

(*) Adjusted for scheduled shutdowns in Braskem Qpar S.A. during the periods.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

f. Insurance coverage in subsidiaries

The Company maintains appropriate insurance policies with the objective of covering several risks to which it is exposed, including property insurance against losses caused by fire, lightning, explosion of any kind, gale, aircraft crash, electric damage, and other risks, covering the industrial plants and distribution bases and branches of all subsidiaries. The maximum compensation values based on the risk analysis of maximum losses of each business are shown below:

	Maximum compensation value (*)
Oxiteno	US$ 1,202
Ultragaz	R$ 152
Ipiranga	R$ 740
Ultracargo	R$ 550

In millions. Currency as indicated.

The General Liability Insurance program covers the Company and its subsidiaries with a maximum aggregate coverage of US$ 400 million against losses caused to third parties as a result of accidents related to commercial and industrial operations and/or distribution and sale of products and services.

Since March 2013, we maintain liability insurance policies to indemnify our directors, executive officers of Ultrapar and its subsidiaries and members of the fiscal council in the total amount of US$50 million, which cover liabilities resulting from wrongful acts, including any act or omission committed or attempted by a person acting in his or her capacity as director, executive officer of Ultrapar and its subsidiaries and member of the fiscal council or any matter claimed against such directors, executive officers of Ultrapar and its subsidiaries and members of the fiscal council solely by reason of his or her serving in such capacity, except if the act, omission or the claim is consequence of gross negligence or willful misconduct of such directors, executive officers of Ultrapar and its subsidiaries and members of the fiscal council.

In addition, group life and personal accident, health and national and international transportation and other insurance policies are also maintained.

The coverages and limits of the insurance policies maintained are based on a careful study of risks and losses conducted by independent insurance advisors, and the type of insurance is considered by management to be sufficient to cover potential losses based on the nature of the business conducted by the companies.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

g. Operating lease contracts

Subsidiaries Cia. Ultragaz, Bahiana, Utingás Armazenadora S.A., Tequimar, Serma and Oxiteno S.A. have operating lease contracts for the use of IT equipment. These contracts have terms of 36 and 45 months. The subsidiaries have the option to purchase the assets at a price equal to the fair market price on the date of option, and management does not intend to exercise such option. Subsidiaries Cia. Ultragaz and Bahiana have operating lease contracts related to vehicles in their fleets. These contracts have terms of 24 to 60 months and there is no purchase option. The future disbursements (installments), assumed under these contracts, amount approximately to:

June 30, 2013	16,509	24,458	-	40,967

The subsidiaries IPP and Cia. Ultragaz have operating lease contracts related to land and building of service stations and stores, respectively. The future disbursements and receipts (installments), arising from these contracts, amount approximately to:

payable	(61,647	(197,114)	(146,039)	(404,800)
receivable	48,025	144,209	96,706	288,940

The expense recognized as of June 30, 2013 for operating leases was R$ 19,004 (R$ 18,984 as of June 30, 2012), net of income.

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Employee benefits and private pension plan (Consolidated)

a. ULTRAPREV- Associaçăo de Previdência Complementar

In February 2001, the Company’s Board of Directors approved the adoption of a defined contribution pension plan to be sponsored by Company and each of its subsidiaries. Participating employees have been contributing to this plan, managed by Ultraprev - Ass ociaçăo de Previdência Complementar (“Ultraprev”), since August 2001. Under the terms of the plan, every year each participating employee chooses his or her basic contribution to the plan. Each sponsoring company provides a matching contribution in an amou nt equivalent to each basic contribution, up to a limit of 11% of the employee’s reference salary, according to the rules of the plan. As participating employees retire, they may choose to receive either (i) a monthly sum ranging between 0.5% and 1.0% of their respective accumulated fund in Ultraprev or (ii) a fixed monthly amount which will exhaust their respective accumulated fund over a period of 5 to 25 years. The sponsoring company does not guarantee the amounts or the duration of the benefits received by each employee that retires. As of June 30, 2013, the Company and its subsidiaries contributed R$ 8,735 (R$ 7,647 as of June 30, 2012) to Ultraprev, which amount is recognized as expense in the income statement. The total number of participating employees as of June 30, 2013 was 6,869 active participants and 97 retired participants. In addition, Ultraprev had 29 former employees receiving benefits under the rules of a previous plan whose reserves are fully constituted.

b. Post-employment benefits

The Company and its subsidiaries recognized a provision for post-employment benefits mainly related to seniority bonus, payment of Government Severance Indemnity Fund (“FGTS”), and health, dental care and life insurance plan for eligible retirees.

The amounts related to such benefits were determined based on a valuation conducted by an independent actuary and are recognized in the interim financial information in accordance with Resolution CVM 600/2009.

Health and dental care plan	43,310	41,535
FGTS Penalty	47,333	44,387
Bonus	24,580	23,058
Life insurance	20,323	19,515
Total	135,546	128,495
Current	10,035	10,035
Non-current	125,511	118,460

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Revenue from sale and services (Consolidated)

Gross revenue from sale	29,350,696	25,937,323
Gross revenue from services	255,838	224,281
Sales tax	(679,008)	(611,697	)
Discounts and sales returns	(129,571)	(121,856	)
Deferred revenue (see Note 19)	6,117	914
Net revenue from sales and services	28,804,072	25,428,965

Expenses by nature (Consolidated)

The Company discloses its consolidated income statement by function and is presenting below its breakdown by nature:

Raw materials and materials for use and consumption	26,104,262	23,105,093
Personnel expenses	655,042	595,894
Freight and storage	455,124	396,469
Depreciation and amortization	382,237	328,157
Advertising and marketing	80,681	83,032
Services provided by third parties	73,726	59,511
Lease of real estate and equipment	40,030	33,937
Other expenses	123,199	102,171
Total	27,914,301	24,704,264
Classified as:
Cost of products and services sold	26,580,121	23,522,746
Selling and marketing	848,603	770,255
General and administrative	485,577	411,263
Total	27,914,301	24,704,264

Research and development expenses are recognized in the income statements and amounted to R$ 12,718 as of June 30, 2013 (R$ 12,161 as of June 30, 2012).

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Income from disposal of assets (Consolidated)

Income from disposal of assets is determined as the difference between the selling price and residual book value of the investment, property, plant and equipment or intangible asset disposed of. As of June 30, 2013, the gain was of R$ 14,722 (loss of R$ 4,267 as of June 30, 2012), primarily from disposal of property, plant and equipment.

Financial income (expense)

06/30/2013		06/30/2012		06/30/2013		06/30/2012
Financial income:
Interest on financial investments	48,602		63,017		67,483		84,971
Interest from customers	-		-		30,025		28,358
Other financial income	-		-		2,930		1,692
	48,602		63,017		100,438		115,021
Financial expenses:
Interest on loans	-		-		(145,922	)	(180,068	)
Interest on debentures	(31,968	)	(52,349	)	(54,224	)	(52,349	)
Interest on finance leases	-		-		(4,592	)	(2,621	)
Bank charges, IOF, and other charges	(13,786	)	3,185		(26,465	)	(7,030	)
Exchange variation, net of gains and losses with derivative instruments	-		-		(19,807	)	(18,050	)
Monetary restatement of provisions, net, and other financial expenses	(6	)	(20	)	(4,272	)	(7,418	)
	(45,760	)	(49,184	)	(255,282	)	(267,536	)
Financial income (expense)	2,842		13,833		(154,844	)	(152,515	)

Ultrapar Participações S.A. and Subsidiaries

Notes to the interim financial information

(In thousands of Brazilian Reais, unless otherwise stated)

Earnings per share (Parent and Consolidated)

The table below presents a reconciliation of numerators and denominators used in computing earnings per share. As disclosed in Note 8.c), the Company sponsors a Deferred Stock Plan.

Basic earnings per share — Net income for the period of the Company	526,904	423,194
Weighted average shares outstanding (in thousands)	534,042	533,989
Basic earnings per share –R$	0.9866	0.7925

Diluted earnings per share — Net income for the period of the Company	526,904	423,194
Weighted average shares outstanding (in thousands), including Deferred Stock Plan	536,412	536,162
Diluted earnings per share –R$	0.9823	0.7893

Weighted average shares outstanding (in thousands) — Weighted average shares outstanding for basic per share calculation:	534,042	533,989
Dilution effect
Deferred Stock Plan	2,370	2,173
Weighted average shares outstanding for diluted per share calculation:	536,412	536,162

ULTRAPAR PARTICIPAÇÕES S.A.

MD&A - ANALYSIS OF CONSOLIDATED EARNINGS

Second Quarter 2013

(1) Selected financial information:

(R$ million)	2Q13	2Q12	1Q13	Variation 2Q13 X 2Q12	Variation 2Q13 X 1Q13	1H13	1H12	Variation 1H13 X 1H12
Net revenue from sales and services	15,204.1	13,037.7	13,600.0	17%	12%	28,804.1	25,429.0	13%
Cost of products and services sold	(14,043.7)	(12,031.2)	(12,536.4)	17%	12%	(26,580.1)	(23,522.7)	13%
Gross profit	1,160.4	1,006.6	1,063.6	15%	9%	2,224.0	1,906.2	17%
Selling, marketing, general and administrative expenses	(675.8)	(609.9)	(658.4)	11%	3%	(1,334.2)	(1,181.5)	13%
Other operating income, net	19.5	13.5	15.7	44%	24%	35.2	23.1	53%
Income from disposal of assets	9.2	(2.8)	5.5	431%	66%	14.7	(4.3)	445%
Operating income	513.3	407.4	426.5	26%	20%	939.7	743.5	26%
Financial income (expense), net	(94.2)	(87.1)	(60.6)	8%	55%	(154.8)	(152.5)	2%
Share of profit of joint ventures and associates	(0.1)	2.9	(2.0)	-103%	-96%	(2.0)	6.0	-134%
Income before income and social contribution taxes	419.0	323.2	363.9	30%	15%	782.9	597.0	31%
Income and social contribution taxes	(147.3)	(96.9)	(127.4)	52%	16%	(274.7)	(187.7)	46%
Tax incentives	12.0	8.1	10.1	49%	19%	22.1	16.8	32%
Net income	283.7	234.4	246.5	21%	15%	530.2	426.1	24%
Net income attributable to Ultrapar	282.1	232.9	244.8	21%	15%	526.9	423.2	25%
Net income attributable to non-controlling interests in subsidiaries	1.6	1.5	1.7	10%	-4%	3.3	2.9	15%
EBITDA (*)	706.0	577.4	614.0	22%	15%	1,319.9	1,077.6	22%
Volume – LPG sales – thousand tons	431.4	425.8	395.9	1%	9%	827.4	829.4	0%
Volume – Fuels sales – thousand of cubic meters	6,127.6	5,708.7	5,575.2	7%	10%	11,702.8	11,155.8	5%
Volume – Chemicals sales – thousand tons	206.6	185.3	198.0	12%	4%	404.6	371.7	9%

(*) For further information on EBITDA, see note (1) on page 101.

Considerations on the financial and operational information

Standards and criteria adopted in preparing the information

The selected financial information included in this analysis were extracted from Ultrapar’s interim financial information.

The accounting policies adopted by the Company and its subsidiaries are in accordance with the statements, interpretations and guidelines issued by the CPC and approved by the CVM in the process of convergence with international financial reporting (“IFRS”) issued by the IASB.

The Company’s consolidated interim financial information was prepared in accordance with technical pronouncement CPC 21 and IAS 34 - Interim Financial Reporting issued by the IASB, and presented in a consistent manner with the standards issued by the CVM.

The financial information of Ultrapar corresponds to the company’s consolidated information. The financial information of Ultragaz, Ipiranga, Oxiteno and Ultracargo is reported without elimination of intercompany transactions. Therefore, the sum of such information may not correspond to the consolidated financial information of Ultrapar. In addition, except when otherwise indicated, the amounts presented in this document are expressed in millions of Reais and, therefore, are subject to rounding off. Consequently, the total amounts presented in the tables may differ from the direct sum of the amounts that precede them.

On October 4 th , 2012, CVM issued the Instruction No. 527 (“ICVM 527”), which governs the disclosure by listed companies in Brazil of EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortization, and EBIT — Earnings Before Interest and Taxes, for the results disclosed from January 1 st , 2013 onwards.

From 2013 onwards, the adoption of IFRS 11 and IAS (International Accounting Standard) 19 became mandatory in the presentation of financial statements of publicly-traded companies, resulting in the following changes: (i) results from joint ventures (“JV”) are no longer proportionally consolidated and will be recognized through the equity method and (ii) actuarial gains and losses from post-employment benefits cease to affect the operating results and start to be recognized under shareholders’ equity.

In order to provide comparability of financial statements with periods prior to the adoption of the aforementioned accounting changes, the figures presented in this document relating to 2012 have been updated in accordance with ICVM 527, IFRS 11 and IAS 19. EBITDA according to ICVM 527, IFRS 11 and IAS 19 and net income according to IAS 19 differ from EBITDA and net income previously reported by the company, as shown below:

R$ million	1Q12	2Q12	3Q12	4Q12	2012
EBITDA prior to ICVM 527	501.6	579.0	646.9	674.0	2,401.6
(+) Income from sale of assets	(1.5)	(2.7)	4.8	3.1	3.7
(+) Equity in earnings (losses) of affiliates	(0.0)	0.2	0.0	(0.0)	0.2
EBITDA after ICVM 527	500.1	576.5	651.8	677.1	2,405.4
(-) EBITDA JV	(3.2)	(2.4)	(3.7)	(8.4)	(17.8)
(+) Equity in earnings (losses) of JV	3.1	2.7	2.5	2.0	10.3
(+) A ctuarial gains and losses from post-employment benefits	0.4	0.6	0.2	12.4	13.5
EBITDA after ICVM 527, IFRS 11 and IAS 19	500.2	577.4	650.8	683.0	2,411.4

R$ million	1Q12	2Q12	3Q12	4Q12	2012
Net income as previously reported	191.4	234.0	290.8	301.7	1 , 017.9
(+) A ctuarial gains and losses from post-employment benefits	0.2	0.4	0.1	8.2	8.9
Net income after IAS 19	191.7	234.4	290.9	309.8	1,026.8

(2) Performance Analysis:

Net revenue from sales and services : Ultrapar’s consolidated net revenue from sales and services grew by 17%, reaching R$ 15,204 million in 2Q13, due to the volume growth in all businesses. Compared with 1Q13, Ultrapar’s net revenue from sales and services increased by 12%, mainly due to the seasonality between periods. In 1H13, Ultrapar’s net revenue from sales and services increased by 13% compared with 1H12, totaling R$ 28,804 million.

Ultragaz: In 2Q13, Ultragaz’s sales volume reached 431 thousand tons, up 1% over 2Q12, driven by the 7% growth in the bulk segment, as a result of investments made to capture new clients and the increased number of working days, with an estimated effect of 3%. Compared with 1Q13, sales volume increased by 9%, mainly derived from the seasonality between periods. In the semester, Ultragaz sales volume totaled 827 thousand tons, in line with the sales volume of 1H12. Ultragaz's net revenue from sales and services totaled R$ 1,005 million in 2Q13, an increase of 3% and 9% compared with 2Q12 and 1Q13, respectively, mainly due to increased sales volume and to commercial initiatives. In 1H13, Ultragaz’s net revenue from sales and services reached R$ 1,925 million, up 2% over 1H12.

Ipiranga: Ipiranga's sales volume totaled 6,128 thousand cubic meters in 2Q13, 7% above 2Q12 volumes. In 2Q13, sales volume of fuels for light vehicles (Otto cycle) increased by 10%, as a result of the growth of the vehicle fleet and of the investments in the network expansion, in addition to the effect of the increased number of working days in 2Q13. The volume of diesel increased by 6% compared with 2Q12, due to an 8% growth in sales volume in the reseller segment, as a result of the investments made in the expansion of resellers network, and to the increased number of working days. Compared with 1Q13, sales volume increased by 10%, mainly due to the seasonality between periods. In 1H13, Ipiranga’s sales volume totaled 11,703 thousand meters cubic, a 5% growth over 1H12. Ipiranga's net revenue from sales and services totaled R$ 13,301 million in 2Q13, an 18% growth over 2Q12, mainly due to (i) increased sales volume, (ii) increases in diesel and gasoline costs by Petrobras, and (iii) the improved sales mix, resulting from investments in the service station network expansion, which enabled a higher share of fuels for light vehicles and diesel sold to the reseller segment. Compared with 1Q13, Ipiranga’s net revenue from sales and services increased by 12%, mainly derived from higher seasonal volume and increases in diesel and gasoline costs by Petrobras during 1Q13. In 1H13, Ipiranga’s net revenue from sales and services reached R$ 25,159 million, an increase of 14% compared with 1H12.

Oxiteno: Oxiteno’s sales volume in 2Q13 totaled 207 thousand tons, 12% growth over 2Q12. In the Brazilian market, sales volume grew by 7% (10 thousand tons), due to the investments made to expand capacity over the past few years. This volume growth in the domestic market occurred in almost all segments served by the company, especially in the home and personal care, paints and coatings segments. In the international market, sales volume grew by 23% (12 thousand tons), mainly due to the acquisition of the specialty chemicals plant in Uruguay. Compared with 1Q13, sales volume grew by 4% (9 thousand tons), due to increased sales of specialties. Oxiteno’s sales volume in 1H13 totaled 405 thousand tons, 9% higher than that in 1H12. Oxiteno's net revenue from sales and services totaled R$ 821 million in 2Q13, up 13% over 2Q12, due to the 12% growth in sales volume and the 5% weaker Real, partially offset by 4% lower average dollar prices. Compared with 1Q13, net revenue from sales and services increased by 9%, mainly due to the 4% increase in sales volume and the 4% weaker Real. Oxiteno’s net revenue from sales and services in 1H13 reached R$ 1,576 million, up 15% over 1H12.

Ultracargo: In 2Q13, Ultracargo’s average storage increased by 20% compared to 2Q12, mainly due to the acquisition of Temmar and increased handling in the Santos, Suape and Aratu terminals. Compared with 1Q13, the average storage increased by 17%, mainly due to the increased handling of ethanol and the startup of the expanded operations in Aratu. In 1H13, Ultracargo’s average storage increased by 16% compared with 1H12. Ultracargo's net revenue from sales and services totaled R$ 86 million in 2Q13, up 19% and 13% over 2Q12 and 1Q13, respectively, mainly derived from the increased average storage in the terminals. In 1H13, Ultracargo’s net revenue from sales and services totaled R$ 161 million, up 16% over 1H12.

Cost of products and services sold : In 2Q13, Ultrapar’s cost of products and services sold totaled R$ 14,044 million, up 17% over 2Q12, as a consequence of the increased cost of goods sold in all businesses. Compared with 1Q13, Ultrapar’s cost of products and services sold increased by 12%, mainly due to the seasonality between periods. In 1H13, Ultrapar’s cost of products and services sold increased by 13% over 1H12, totaling R$ 26,580 million in the semester.

Ultragaz: Ultragaz’s cost of products sold totaled R$ 854 million in 2Q13, an increase of 2% compared with 2Q12, mainly due to higher sales volume and to the effects of inflation on costs, especially on freight, partially offset by initiatives to reduce costs over the past 12 months. Compared with 1Q13, the cost of products sold increased by 8%, mainly due to the 9% seasonally higher volume. In 1H13, Ultragaz’s cost of products sold totaled R$ 1,643 million, up 1% compared with 1H12.

Ipiranga: Ipiranga’s cost of products sold totaled R$ 12,535 million in 2Q13, up 18% over 2Q12, due to increased sales volume and the cost increases by Petrobras (i) in diesel, in July 2012, January and March 2013, and (ii) in gasoline, in January 2013. Compared with 1Q13, Ipiranga’s cost of products sold increased by 13%, mainly due to the seasonally higher volume and increases in diesel and gasoline costs by Petrobras during 1Q13. In 1H13, Ipiranga’s cost of products sold totaled R$ 23,661 million, 14% increase over 1H12.

Oxiteno: Oxiteno’s cost of products sold in 2Q13 totaled R$ 630 million, up 12% over 2Q12, mainly as a result of the 12% higher sales volume and the 5% weaker Real, partially offset by a 4% reduction in unit variable costs in dollars, mainly due to the drop in international prices of ethylene. Compared with 1Q13, the cost of products sold increased by 5%, mainly due to the 4% weaker Real and the 4% higher sales volume, partially offset by lower unit variable costs in dollars. In 1H13, Oxiteno’s cost of products sold totaled R$ 1,230 million, up 13% over 1H12.

Ultracargo: Ultracargo’s cost of services provided in 2Q13 totaled R$ 33 million, up 16% over 2Q12, mainly as a result of increased average storage and increased depreciation, a consequence of the capacity expansions and the acquisition of Temmar. Compared with 1Q13, Ultracargo’s cost of services provided increased by 5%. In 1H13, Ultracargo’s cost of services provided totaled R$ 64 million, 17% higher than that in 1H12.

Gross profit: The gross profit of Ultrapar amounted to R$ 1,160 million in 2Q13, up 15% over 2Q12, as a consequence of the growth in the gross profit of all of Ultrapar’s businesses. Compared with 1Q13, Ultrapar’s gross profit increased by 9%, mainly as a result of the seasonality between periods . In 1H13, the gross profit of Ultrapar totaled R$ 2,224 million, up 17% over 1H12.

Selling, marketing, general and administrative expenses : Ultrapar’s selling, marketing, general and administrative expenses totaled R$ 676 million in 2Q13, an increase of 11% over 2Q12. Compared with 1Q13, Ultrapar's selling, marketing, general and administrative expenses increased by 3%. In 1H13, Ultrapar's selling, marketing, general and administrative expenses totaled R$ 1,334 million, up 13% over 1H12.

Ultragaz: Ultragaz's selling, marketing, general and administrative expenses totaled R$ 111 million in 2Q13, up 4% over 2Q12, mainly due to (i) the effects of inflation on personnel expenses, (ii) the increased sales volume, and (iii) the increase in variable compensation, partially offset by initiatives to reduce expenses. Compared with 1Q13, Ultragaz's selling, marketing, general and administrative expenses increased by 12%, mainly due to the higher seasonal volume and to higher expenses with marketing and sales campaigns. In 1H13, Ultragaz's selling, marketing, general and administrative expenses totaled R$ 209 million, up 3% over 1H12.

Ipiranga: Ipiranga's selling, marketing, general and administrative expenses totaled R$ 423 million in 2Q13, a 7% growth over 2Q12, mainly resulting from (i) increased sales volume and higher unit expenses with freight, mainly due to increases in diesel costs and inflation, (ii) the expansion of the distribution network, and (iii) the effects of inflation on personnel expenses, partially offset by non-recurring expenses of R$ 13 million related to the return of the Ipiranga brand to the Midwest, Northeast and North of Brazil in 2Q12. Compared with 1Q13, Ipiranga's selling, marketing, general and administrative expenses decreased by 3%, mainly due to a higher concentration of expenses with advertising and marketing in 1Q13, partially offset by the higher seasonal volume. In 1H13, Ipiranga's selling, marketing, general and administrative expenses totaled R$ 857 million, up 11% compared with 1H12.

Oxiteno: Oxiteno's selling, marketing, general and administrative expenses totaled R$ 118 million in 2Q13, up 23% compared with 2Q12, mainly due to (i) increased logistics expenses, resulting from higher sales volume, higher unit expenses with freight in Brazil and the effect of the weaker Real, (ii) the startup of the company’s operations in the United States, (iii) the acquisition of the specialty chemicals plant in Uruguay and (iv) the effects of inflation on expenses. Compared with 1Q13, Oxiteno's selling, marketing, general and administrative expenses increased by 11%, mainly due to increased logistics expenses and higher variable compensation. Oxiteno’s selling, marketing, general and administrative expenses totaled R$ 224 million in 1H13, up 24% over 1H12.

Ultracargo: Ultracargo's selling, marketing, general and administrative expenses totaled R$ 25 million in 2Q13, a 48% increase over 2Q12, mainly due to (i) the effects of inflation on expenses, (ii) the acquisition of Temmar and (iii) increased non-recurring expenses with projects and customers. Compared with 1Q13, Ultracargo's selling, marketing, general and administrative expenses increased by 20% mainly due to increased non-recurring expenses with projects and customers. Ultracargo’s selling, marketing, general and administrative expenses were R$ 46 million in 1H13, up 36% compared with 1H12.

Depreciation and amortization : Total depreciation and amortization costs and expenses in 2Q13 amounted to R$ 193 million, 15% higher than that in 2Q12, mainly as a result of increased investments, especially in Ipiranga, and the acquisitions of Temmar and the specialty chemicals plant in Uruguay. Compared with 1Q13, total depreciation and amortization costs and expenses increased by 2%. In 1H13, Ultrapar’s total depreciation and amortization costs totaled R$ 382 million, 16% higher than that in 1H12.

Operating income: Ultrapar’s operating income amounted to R$ 513 million in 2Q13, up 26% over 2Q12, as a result of the increase in the operating income of all of Ultrapar’s businesses . Compared with 1Q13, Ultrapar’s operating income increased by 20%, mainly as a result of the seasonality between periods. In 1H13, Ultrapar’s operating income totaled R$ 940 million, up 26% over 1H12.

Financial result: Ultrapar reported R$ 94 million of net financial expenses in 2Q13, R$ 7 million higher than that in 2Q12, mainly due to the effects of exchange rate fluctuations and taxes. Compared with 1Q13, net financial expenses increased by R$ 34 million, mainly due to the same factors above and the higher average net debt. Net debt at the end of 2Q13 totaled R$ 3,590 million, corresponding to 1.4 times EBITDA for the last 12 months compared with a ratio of 1.5 times in 2Q12 and 1Q13. In 1H13, Ultrapar reported net financial expenses of R$ 155 million, R$ 2 million higher than that in 1H12.

Income and social contribution taxes / Tax incentives : Ultrapar reported income tax and social contribution expenses, net of benefit of tax holidays of R$ 135 million, compared with expenses of R$ 89 million in 2Q12 and R$ 117 million in 1Q13, an increase of 52% and 15%, respectively, mainly as a result of a higher pre-tax profit. In 1H13, Ultrapar reported income tax and social contribution expenses, net of benefit of tax holidays of R$ 253 million, up 48% over 1H12 .

Net income: Net income in 2Q13 totaled R$ 284 million, 21% and 15% over 2Q12 and 1Q13, respectively, due to the EBITDA growth between periods. In 1H13, Ultrapar reported net income of R$ 530 million, up 24% over 1H12.

EBITDA: Ultrapar’s consolidated EBITDA totaled R$ 706 million in 2Q13, up 22% over 2Q12, as a result of the EBITDA growth in all businesses. Compared with 1Q13, Ultrapar’s EBITDA increased by 15%, due to the EBITDA growth in all businesses. In 1H13, Ultrapar’s EBITDA totaled R$ 1,320 million, an increase of 22% over 1H12.

Ultragaz: Ultragaz’s EBITDA amounted to R$ 74 million in 2Q13, up 17% over 2Q12, mainly due to commercial and expense reduction initiatives implemented over the past few quarters and the increased sales volume. Compared with 1Q13, Ultragaz’s EBITDA increased by 16%, mainly due to the higher seasonal volume. In 1H13, Ultragaz’s EBITDA totaled R$ 137 million, 12% higher than that in 1H12.

Ipiranga: Ipiranga's EBITDA totaled R$ 480 million in 2Q13, up 28% over 2Q12, equivalent to a unit EBITDA margin of R$ 78/m³, mainly due to (i) increased sales volume, especially in the reseller segment, (ii) the strategy of constant innovation in services and convenience in the service station and (iii) the effects of the evolution of diesel costs, partially offset by increased freight expenses and non-recurring items with a net positive effect of R$ 9 million in 2Q12 (a positive result of R$ 22 million from material sale of land and R$ 13 million expenses related to the return of the Ipiranga brand to the Midwest, Northeast and North of Brazil). Compared with 1Q13, Ipiranga’s EBITDA increased by 11%, mainly due to higher seasonal volume and lower advertising and marketing expenses. In 1H13, Ipiranga’s EBITDA totaled R$ 912 million, 28% higher than that in 1H12.

100

Oxiteno: Oxiteno’s EBITDA amounted to R$ 107 million in 2Q13, or US$ 250/ton, an 8% increase over 2Q12, mainly due to the increased sales volume and the effect of the 5% weaker Real, partially offset by increased unit expenses with logistics and by expenses related to the startup of the company's operations in the United States and Uruguay. Compared with 1Q13, Oxiteno’s EBITDA increased by 33%, mainly due to the increased sales volume, the depreciation of the Real during 2Q13, and the lower international price of ethylene. In 1H13, Oxiteno’s EBITDA totaled R$ 188 million, up 14% over 1H12 .

Ultracargo: Ultracargo’s EBITDA totaled R$ 42 million in 2Q13, up 18% over 2Q12, mainly due to the increased average storage in the terminals, partially offset by higher expenses. Compared with 1Q13, Ultracargo’s EBITDA increased by 18%, mainly due to the increased average storage in its terminals. In 1H13, Ultracargo’s EBITDA totaled R$ 78 million, up 15% compared with 1H12 .

EBITDA

R$ million	2Q13	2Q12	1Q13	Variation 2Q13v2Q12	Variation 2Q13v1Q13	1H13	1H12	Variation 1H13v1H12
Ultrapar	706.0	577.4	614.0	22%	15%	1,319.9	1,077.6	22%
Ultragaz	73.6	62.9	63.5	17%	16%	137.1	122.9	12%
Ipiranga	479.6	375.0	432.1	28%	11%	911.7	711.9	28%
Oxiteno	107.1	98.8	80.6	8%	33%	187.6	165.2	14%
Ultracargo	42.3	35.7	35.9	18%	18%	78.2	67.8	15%

(1) The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) presented in this document represents the net income before (i) income and social contribution taxes, (ii) net financial expense (income) and (iii) depreciation and amortization, presented in accordance with ICVM 527. The purpose of including EBITDA information is to provide a measure used by the management for internal assessment of our operating results, and because a portion of our employee profit sharing plan is linked directly or indirectly to EBITDA performance. It is also a financial indicator widely used by investors and analysts to measure our ability to generate cash from operations and our operating performance. We also calculate EBITDA in connection with covenants related to some of our financing, as described in Note 14 to our consolidated financial statements. We believe EBITDA allows a better understanding not only of our financial performance but also of our capacity of meeting the payment of interest and principal from our debt and of obtaining resources for our investments and working capital. Our definition of EBITDA may differ from, and, therefore, may not be comparable with similarly titled measures used by other companies, thereby limiting its usefulness as a comparative measure. Because EBITDA excludes net financial expense (income), income and social contribution taxes and depreciation and amortization, it provides an indicator of general economic performance that is not affected by debt restructurings, fluctuations in interest rates or changes in income and social contribution taxes, depreciation and amortization. EBITDA is not a measure of financial performance under accounting practices adopted in Brazil or IFRS, and it should not be considered in isolation, or as a substitute for net income, as a measure of operating performance, as a substitute for cash flows from operations or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company’s overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expense (income), income and social contribution taxes and depreciation and amortization.

The calculation of the EBITDA from the net income is presented below :

R$ million	2Q13	2Q12	1Q13	1H13	1H12
Net income	283.7	234.4	246.5	530.2	426.1
(+) Income tax and social contribution	135.3	88.8	117.4	252.6	170.9
(+) Net financial expense (income)	94.2	87.1	60.6	154.8	152.5
(+) Depreciation and amortization	192.8	167.0	189.4	382.2	328.2
EBITDA	706.0	577.4	614.0	1,319.9	1,077.6

101

We hereby inform that in accordance with the requirements of CVM Resolution 381/03, our independent auditors Deloitte Touche Tohmatsu Auditores Independentes have not performed during these six months of 2013 any service other than the external audit of the financial statements for the year ended December 31, 2012 and the review of interim financial information of Ultrapar and affiliated companies and subsidiaries.

102

Item 2

São Paulo, July 31 st , 2013 – Ultrapar Participações S.A . (BM&FBOVESPA: UGPA3 / NYSE: UGP), a company engaged in fuel distribution (Ultragaz/Ipiranga), specialty chemicals (Oxiteno) and storage for liquid bulk (Ultracargo), hereby reports its results for the second quarter of 2013.

Results conference call Brazilian conference call August 2 nd , 2013 10:00 a.m. (US EST) Telephone for connection: +55 11 2188 0155 Code: Ultrapar International conference call August 2 nd , 2013 11:30 a.m. (US EST) Participants in the USA: 1 877 317 6776 Participants in Brazil: 0800 891 0015 International participants: +1 412 317 6776 Code: Ultrapar IR Contact E-mail: [email protected] Telephone: + 55 11 3177 7014 Website: www.ultra.com.br Ultrapar Participações S.A. UGPA3 = R$ 53.12/share (06/30/13) UGP = US$ 23.94/ADR (06/30/13) We present one more quarter of positive earnings progression, reporting in 2Q13 the twenty-eighth consecutive quarter of EBITDA growth. During these seven years, we invested R$ 11 billion in the expansion of our service station and convenience store network, logistics infrastructure, production capacity, as well as acquisitions and modernization of our operations, investments that enabled this sustained growth. Ø VOLUMES, REVENUES AND EBITDA GROW IN ALL BUSINESSES Ø ULTRAPAR’S EBITDA REACHES R$ 706 MILLION IN 2Q13, 22% GROWTH OVER 2Q12 Ø NET EARNINGS REACH R$ 284 MILLION, 21% GROWTH OVER 2Q12 Ø ULTRAPAR IS ELECTED THE BEST CORPORATE GOVERNANCE IN THE IR MAGAZINE AWARDS BRAZIL 2013 Ø DIVIDEND DISTRIBUTION OF R$ 354 MILLION APPROVED “We are pleased to complete seven consecutive years of EBITDA growth, achieved through different economic cycles. This growth was enabled by investments in the strengthening and development of our businesses and by a corporate governance structure designed towards the alignment of interests and value creation. We also had the honor of being awarded by the IR Magazine Awards Brazil 2013 as the Best Corporate Governance in Brazil and the Best Investor Relations in the energy sector, awards that reinforce our enthusiasm to follow the path of development of good businesses and value creation." Thilo Mannhardt – CEO

Considerations on the financial and operational information

The financial information presented in this document has been prepared according to International Financial Reporting Standards (IFRS). The financial information of Ultrapar corresponds to the company’s consolidated information. The financial information of Ultragaz, Ipiranga, Oxiteno and Ultracargo is reported without elimination of intercompany transactions. Therefore, the sum of such information may not correspond to the consolidated financial information of Ultrapar. In addition, except when otherwise indicated, the amounts presented in this document are expressed in millions of Reais and, therefore, are subject to rounding off. Consequently, the total amounts presented in the tables may differ from the direct sum of the amounts that precede them.

On October 4 th , 2012, CVM issued the Instruction N o . 527 (“ICVM 527”), which governs the disclosure by listed companies in Brazil of EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortization, and EBIT — Earnings Before Interest and Taxes, for the results disclosed from January 1 st , 2013 onwards.

In order to provide comparability of financial statements with periods prior to the adoption of the aforementioned accounting changes, the figures presented in this document relating to 2012 have been updated in accordance with ICVM 527, IFRS 11 and IAS 19. EBITDA according to ICVM 527, IFRS 11 and IAS 19 and net earnings according to IAS 19 differ from EBITDA and net earnings previously reported by the company, as shown below:

R$ million	1Q12	2Q12	3Q12	4Q12	2012
EBITDA prior to ICVM 527	501.6	579.0	646.9	674.0	2,401.6
(+) Income from sale of assets	(1.5)	(2.7)	4.8	3.1	3.7
(+) Equity in earnings (losses) of affiliates	(0.0)	0.2	0.0	(0.0)	0.2
EBITDA after ICVM 527	500.1	576.5	651.8	677.1	2,405.4
(-) EBITDA JV	(3.2)	(2.4)	(3.7)	(8.4)	(17.8)
(+) Equity in earnings (losses) of JV	3.1	2.7	2.5	2.0	10.3
(+) A ctuarial gains and losses from post-employment benefits	0.4	0.6	0.2	12.4	13.5
EBITDA after ICVM 527, IFRS 11 and IAS 19	500.2	577.4	650.8	683.0	2,411.4

R$ million	1Q12	2Q12	3Q12	4Q12	2012
Net earnings as previously reported	191.4	234.0	290.8	301.7	1,017.9
(+) A ctuarial gains and losses from post-employment benefits	0.2	0.4	0.1	8.2	8.9
Net earnings after IAS 19	191.7	234.4	290.9	309.8	1,026.8

The calculation of EBITDA starting from net earnings is presented below:

R$ million	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1 H13	1H12	D (%) 1H13v1H12
Net earnings	283.7	234.4	246.5	21%	15%	530.2	426.1	24%
(+) Income and social contribution taxes	135.3	88.8	117.4			252.6	170.9
(+) Net financial expense (income)	94.2	87.1	60.6			154.8	152.5
(+) Depreciation and amortization	192.8	167.0	189.4			382.2	328.2
EBITDA	706.0	577.4	614.0	22%	15%	1,319.9	1,077.6	22%

Summary of the 2 nd quarter of 2013

Ultrapar – Consolidated data	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1H13	1H12	D (%) 1H13v1H12
Net sales and services	15,204	13,038	13,600	17%	12%	28,804	25,429	13%
Gross profit	1,160	1,007	1,064	15%	9%	2,224	1,906	17%
Operating profit	513	407	426	26%	20%	940	744	26%
EBITDA	706	577	614	22%	15%	1,320	1,078	22%
Net earnings¹	284	234	247	21%	15%	530	426	24%
Earnings attributable to Ultrapar per share ²	0.53	0.43	0.46	21%	15%	0.98	0.79	24%
Amounts in R$ million (except for EPS)

¹ Under IFRS, net earnings include net earnings attributable to non-controlling shareholders.

² Calculated based on the weighted average number of shares over the period, excluding shares held in treasury.

Ultragaz – Operational data	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1H13	1H12	D (%) 1H13v1H12
Total volume (000 tons)	431	426	396	1%	9%	827	829	(0%)
Bottled	285	289	264	(1%)	8%	550	555	(1%)
Bulk	146	137	131	7%	11%	277	274	1%

Ipiranga – Operational data	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1H13	1H12	D (%) 1H13v1H12
Volume total (mil m³)	6,128	5,709	5,575	7%	10%	11,703	11,156	5%
Diesel	3,366	3,188	2,943	6%	14%	6,309	6,164	2%
Gasoline, ethanol and NGV	2,668	2,417	2,545	10%	5%	5,213	4,788	9%
Other 3	94	104	87	(10%)	7%	181	204	(11%)

3 Fuel oils, kerosene, lubricants and greases.

Oxiteno – Operational data	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1H13	1H12	D (%) 1H13v1H12
Total volume (000 tons)	207	185	198	12%	4%	405	372	9%
Product mix
Specialty chemicals	177	155	163	14%	9%	340	306	11%
Glycols	29	30	35	(3%)	(16%)	65	66	(2%)
Geographical mix
Sales in Brazil	145	136	141	7%	3%	287	270	6%
Sales outside Brazil	61	50	57	23%	8%	118	102	16%

Ultracargo - Operational data	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1H13	1H12	D (%) 1H13v1H12
Effective storage 4 (000 m 3 )	730	609	623	20%	17%	676	585	16%

4 Monthly average

Macroeconomic indicators	2Q13	2Q12	1Q13	D (%) 2Q13v2Q12	D (%) 2Q13v1Q13	1H13	1H12	D (%) 1H13v1H12
Average exchange rate (R$/US$)	2.07	1.96	2.00	5%	4%	2.03	1.87	9%
Brazilian interbank interest rate (CDI)	1.8%	2.1%	1.6%			3.4%	4.6%
Inflation in the period (IPCA)	1.2%	1.1%	1.9%			3.1%	2.3%

Highlights

Ø Dividend distribution of R$ 354 million approved – The Board of Directors of Ultrapar approved today a dividend payment of R$ 354 million, equivalent to R$ 0.66 per share, as an advance of the dividends for the fiscal year 2013, to be paid from August 16 th , 2013 onwards. This amount represents an annualized dividend yield of 3% on Ultrapar’s average share price during the first half of 2013.

Ø Ultrapar’s credit rating is upgraded by Moody's – On May 24 th , 2013, the rating agency Moody's Investors Services (Moody's) upgraded Ultrapar’s global scale credit rating from Baa3 to Baa2. According to Moody’s, the rating assigned to Ultrapar reflects mainly its solid business model, its low-risk profile, the resilience of its cash flow and the leading positions in its different segments. The upgrade in Ultrapar’s credit rating highlights the cash flow generation capacity of its businesses and its sound financial management and corporate governance.

Ø Ultrapar receives important awards – Ultrapar received the awards of the Best Corporate Governance in Brazil and the Best Investor Relations in the energy sector in the IR Magazine Awards Brazil 2013, and was elected one of the top five earnings conference calls in the country. These awards reinforce the constant evolution of its corporate governance structure and its philosophy of dialogue with the capital markets. Ultrapar was also ranked 6 th in the Prêmio Destaque Agência Estado 2013 , a ranking of all Brazilian listed companies developed in partnership with Economática in which each company is evaluated under many aspects such as stock price appreciation, return, dividends, volatility, among others. Additionally, Ipiranga and Ultragaz brands were listed among the top 50 most valuable brands in Brazil, according to a ranking prepared by Brand Finance Brazil, and Ipiranga was awarded, for the third consecutive year, the best company in the Wholesale segment in Brazil in Exame magazine’s “Maiores e Melhores” publication.

Ø Ultrapar is included in the Brazil 50 Index – IBrX 50 – As from May, Ultrapar’s shares were included in the portfolio of the Brazil 50 Index (IBrX-50) of BM&FBOVESPA, an index composed by the 50 most liquid stocks traded on BM&FBOVESPA. In the theoretical portfolio for the period between May and August of 2013, Ultrapar’s shares are the 8 th most representative shares in the portfolio.

Executive summary of the results

During the second quarter of 2013, the macroeconomic environment deteriorated, with sharp adjustments in the expectations for the Brazilian economy growth in 2013. To curb rising inflation indicators, the Central Bank of Brazil raised the base interest rate of the economy from 7.25% p.a. at the end of March to 8.00% p.a. at the end of June. Despite the lower estimated economic growth, the fleet of light vehicles continues to grow at a fast pace, similar to what has been verified in recent years. In 2Q13, approximately 900 thousand light vehicles were licensed, a record for second quarters and 7% higher than 2Q12, allowing the continued strong growth of the fleet in Brazil. Additionally, the domestic macroeconomic scenario contributed to a strong appreciation of the dollar against the Real during the 2Q13, with the exchange rate ending the quarter at R$ 2.22/US$, 10% higher than the rate at the end of March.

In 2Q13, Ultragaz reported a growth of 1% in sales volume compared with 2Q12, driven by the 7% growth in the bulk segment, mainly as a result of investments made to capture new clients. In 2Q13, Ultragaz’s EBITDA increased by 17% compared with 2Q12, which demonstrates the progress in the recovery plan for the company's results through commercial and expense reduction initiatives implemented over the past few quarters.

At Ipiranga, fuel sales volume increased by 7% in 2Q13 compared with 2Q12, mainly driven by the growth in the light vehicle fleet and the investments made in expanding the network and related logistics infrastructure. Ipiranga’s EBITDA reached R$ 480 million, an increase of 28% compared with 2Q12, equivalent to an EBITDA unit margin of R$ 78/m³, mainly due to (i) increased sales volume, (ii) the strategy of constant innovation in services and convenience at stations, generating increased customer satisfaction and loyalty, and (iii) the effects of the evolution of the diesel costs .

Oxiteno's sales volume reached 207 thousand tons, a 12% increase compared with 2Q12, due to the investments made to expand capacity over the past few years and the acquisition of the specialty chemicals plant in Uruguay. Oxiteno’s EBITDA totaled R$ 107 million in 2Q13, or US$ 250/ton, up 8% over 2Q12, mainly due to the increased sales volume and the effects of the depreciation of the Real during the quarter, resulting in an average exchange rate 5% weaker compared with 2Q12.

In Ultracargo, the average storage grew by 20% compared with 2Q12, mainly due to the acquisition of Temmar and the increased product handling in its main terminals. Ultracargo's EBITDA reached R$ 42 million in 2Q13, up 18% over 2Q12, mainly due to the increased average storage of the terminals.

Ultrapar reported a consolidated EBITDA of R$ 706 million in 2Q13, up 22% compared with 2Q12, due to the EBITDA growth in all businesses. The net income in 2Q13 reached R$ 284 million, an increase of 21% over 2Q12, as a result of the EBITDA growth.

Operational performance

Ultragaz – In 2Q13, Ultragaz’s sales volume reached 431 thousand tons, up 1% over 2Q12, driven by the 7% growth in the bulk segment, as a result of investments made to capture new clients and the increased number of working days, with an estimated effect of 3%. Compared with 1Q13, sales volume increased by 9%, mainly derived from the seasonality between periods. In the semester, Ultragaz sales volume totaled 827 thousand tons, in line with the sales volume of 1H12.

Ultragaz – Sales volume (000 tons)

Ipiranga – Ipiranga’s sales volume totaled 6,128 thousand cubic meters in 2Q13, 7% above 2Q12 volumes. In 2Q13, sales volume of fuels for light vehicles (Otto cycle) increased by 10%, as a result of the growth of the vehicle fleet and of the investments in the network expansion, in addition to the effect of the increased number of working days in 2Q13. The volume of diesel increased by 6% compared with 2Q12, due to an 8% growth in sales volume in the reseller segment, as a result of the investments made in the expansion of resellers’ network, and to the increased number of working days. Compared with 1Q13, sales volume increased by 10%, mainly due to the seasonality between periods. In 1H13, Ipiranga’s sales volume totaled 11,703 thousand meters cubic, a 5% growth over 1H12.

Ipiranga – Sales volume (000 m³)

Oxiteno – Oxiteno’s sales volume in 2Q13 totaled 207 thousand tons, 12% growth over 2Q12. In the Brazilian market, sales volume grew by 7% (10 thousand tons), due to the investments made to expand capacity over the past few years. This volume growth in the domestic market occurred in almost all segments served by the company, especially in the home and personal care, paints and coatings segments. In the international market, sales volume grew by 23% (12 thousand tons), mainly due to the acquisition of the specialty chemicals plant in Uruguay. Compared with 1Q13, sales volume grew by 4% (9 thousand tons), due to increased sales of specialties. Oxiteno’s sales volume in 1H13 totaled 405 thousand tons, 9% higher than that in 1H12.

Oxiteno – Sales volume (000 tons)

Ultracargo – In 2Q13, Ultracargo’s average storage increased by 20% compared to 2Q12, mainly due to the acquisition of Temmar and increased handling in the Santos, Suape and Aratu terminals. Compared with 1Q13, the average storage increased by 17%, mainly due to the increased handling of ethanol and the startup of the expanded operations in Aratu. In 1H13, Ultracargo’s average storage increased by 16% compared with 1H12.

Ultracargo – Average storage (000 m³)

Economic-financial performance

Net sales and services – Ultrapar’s consolidated net sales and services grew by 17%, reaching R$ 15,204 million in 2Q13, due to the volume growth in all businesses. Compared with 1Q13, Ultrapar’s net sales and services increased by 12%, mainly due to the seasonality between periods. In 1H13, Ultrapar’s net sales and services increased by 13% compared with 1H12, totaling R$ 28,804 million.

Net sales and services (R$ million)

Ultragaz – Ultragaz’s net sales and services totaled R$ 1,005 million in 2Q13, an increase of 3% and 9% compared with 2Q12 and 1Q13, respectively, mainly due to increased sales volume and to commercial initiatives. In 1H13, Ultragaz’s net sales and services reached R$ 1,925 million, up 2% over 1H12.

Ipiranga – Ipiranga’s net sales and services totaled R$ 13,301 million in 2Q13, an 18% growth over 2Q12, mainly due to (i) increased sales volume, (ii) increases in diesel and gasoline costs by Petrobras, and (iii) the improved sales mix, resulting from investments in the service station network expansion, which enabled a higher share of fuels for light vehicles and diesel sold to the reseller segment. Compared with 1Q13, Ipiranga’s net sales and services increased by 12%, mainly derived from higher seasonal volume and increases in diesel and gasoline costs by Petrobras during 1Q13. In 1H13, Ipiranga’s net sales and services reached R$ 25,159 million, an increase of 14% compared with 1H12.

Oxiteno – Oxiteno’s net sales and services totaled R$ 821 million in 2Q13, up 13% over 2Q12, due to the 12% growth in sales volume and the 5% weaker Real, partially offset by 4% lower average dollar prices. Compared with 1Q13, net sales and services increased by 9%, mainly due to the 4% increase in sales volume and the 4% weaker Real. Oxiteno’s net sales and services in 1H13 reached R$ 1,576 million, up 15% over 1H12.

Ultracargo – Ultracargo’s net sales and services totaled R$ 86 million in 2Q13, up 19% and 13% over 2Q12 and 1Q13, respectively, mainly derived from the increased average storage in the terminals. In 1H13, Ultracargo’s net sales and services totaled R$ 161 million, up 16% over 1H12.

Cost of goods sold – In 2Q13, Ultrapar’s cost of goods sold totaled R$ 14,044 million, up 17% over 2Q12, as a consequence of the increased cost of goods sold in all businesses. Compared with 1Q13, Ultrapar’s cost of goods sold increased by 12%, mainly due to the seasonality between periods. In 1H13, Ultrapar’s cost of goods sold increased by 13% over 1H12, totaling R$ 26,580 million in the semester.

Ultragaz – Ultragaz’s cost of goods sold totaled R$ 854 million in 2Q13, an increase of 2% compared with 2Q12, mainly due to higher sales volume and to the effects of inflation on costs, especially on freight, partially offset by initiatives to reduce costs over the past 12 months. Compared with 1Q13, the cost of goods sold increased by 8%, mainly due to the 9% seasonally higher volume. In 1H13, Ultragaz’s cost of goods sold totaled R$ 1,643 million, up 1% compared with 1H12.

Ipiranga – Ipiranga’s cost of goods sold totaled R$ 12,535 million in 2Q13, up 18% over 2Q12, due to increased sales volume and the cost increases by Petrobras (i) in diesel, in July 2012, January and March 2013, and (ii) in gasoline, in January 2013. Compared with 1Q13, Ipiranga’s cost of goods sold increased by 13%, mainly due to the seasonally higher volume and increases in diesel and gasoline costs by Petrobras during 1Q13. In 1H13, Ipiranga’s cost of goods sold totaled R$ 23,661 million, 14% increase over 1H12.

Oxiteno – Oxiteno’s cost of goods sold in 2Q13 totaled R$ 630 million, up 12% over 2Q12, mainly as a result of the 12% higher sales volume and the 5% weaker Real, partially offset by a 4% reduction in unit variable costs in dollars, mainly due to the drop in international prices of ethylene. Compared with 1Q13, the cost of goods sold increased by 5%, mainly due to the 4% weaker Real and the 4% higher sales volume, partially offset by lower unit variable costs in dollars. In 1H13, Oxiteno’s cost of goods sold totaled R$ 1,230 million, up 13% over 1H12.

Ultracargo – Ultracargo’s cost of services provided in 2Q13 totaled R$ 33 million, up 16% over 2Q12, mainly as a result of increased average storage and increased depreciation, a consequence of the capacity expansions and the acquisition of Temmar. Compared with 1Q13, Ultracargo’s cost of services provided increased by 5%. In 1H13, Ultracargo’s cost of services provided totaled R$ 64 million, 17% higher than that in 1H12.

Sales, general and administrative expenses – Ultrapar’s sales, general and administrative expenses totaled R$ 676 million in 2Q13, an increase of 11% over 2Q12. Compared with 1Q13, Ultrapar’s sales, general and administrative expenses increased by 3%. In 1H13, Ultrapar's sales, general and administrative expenses totaled R$ 1,334 million, up 13% over 1H12.

Ultragaz – Ultragaz’s sales, general and administrative expenses totaled R$ 111 million in 2Q13, up 4% over 2Q12, mainly due to (i) the effects of inflation on personnel expenses, (ii) the increased sales volume, and (iii) the increase in variable compensation, partially offset by initiatives to reduce expenses. Compared with 1Q13, Ultragaz’s sales, general and administrative expenses increased by 12%, mainly due to the higher seasonal volume and to higher expenses with marketing and sales campaigns. In 1H13, Ultragaz’s sales, general and administrative expenses totaled R$ 209 million, up 3% over 1H12.

Ipiranga – Ipiranga’s sales, general and administrative expenses totaled R$ 423 million in 2Q13, a 7% growth over 2Q12, mainly resulting from (i) increased sales volume and higher unit expenses with freight, mainly due to increases in diesel costs and inflation, (ii) the expansion of the distribution network, and (iii) the effects of inflation on personnel expenses, partially offset by non-recurring expenses of R$ 13 million related to the return of the Ipiranga brand to the Midwest, Northeast and North of Brazil in 2Q12. Compared with 1Q13, Ipiranga’s sales, general and administrative expenses decreased by 3%, mainly due to a higher concentration of expenses with advertising and marketing in 1Q13, partially offset by the higher seasonal volume. In 1H13, Ipiranga’s sales, general and administrative expenses totaled R$ 857 million, up 11% compared with 1H12.

Oxiteno – Oxiteno’s sales, general and administrative expenses totaled R$ 118 million in 2Q13, up 23% compared with 2Q12, mainly due to (i) increased logistics expenses, resulting from higher sales volume, higher unit expenses with freight in Brazil and the effect of the weaker Real, (ii) the startup of the company’s operations in the United States, (iii) the acquisition of the specialty chemicals plant in Uruguay and (iv) the effects of inflation on expenses. Compared with 1Q13, Oxiteno's sales, general and administrative expenses increased by 11%, mainly due to increased logistics expenses and higher variable compensation. Oxiteno’s sales, general and administrative expenses totaled R$ 224 million in 1H13, up 24% over 1H12.

Ultracargo – Ultracargo’s sales, general and administrative expenses totaled R$ 25 million in 2Q13, a 48% increase over 2Q12, mainly due to (i) the effects of inflation on expenses, (ii) the acquisition of Temmar and (iii) increased non-recurring expenses with projects and customers. Compared with 1Q13, Ultracargo’s sales, general and administrative expenses increased by 20% mainly due to increased non-recurring expenses with projects and customers. Ultracargo’s sales, general and administrative expenses were R$ 46 million in 1H13, up 36% compared with 1H12.

EBITDA – Ultrapar’s consolidated EBITDA totaled R$ 706 million in 2Q13, up 22% over 2Q12, as a result of the EBITDA growth in all businesses. Compared with 1Q13, Ultrapar’s EBITDA increased by 15%, due to the EBITDA growth in all businesses. In 1H13, Ultrapar’s EBITDA totaled R$ 1,320 million, an increase of 22% over 1H12.

EBITDA (R$ million)

Ultragaz – Ultragaz’s EBITDA amounted to R$ 74 million in 2Q13, up 17% over 2Q12, mainly due to commercial and expense reduction initiatives implemented over the past few quarters and the increased sales volume. Compared with 1Q13, Ultragaz’s EBITDA increased by 16%, mainly due to the higher seasonal volume. In 1H13, Ultragaz’s EBITDA totaled R$ 137 million, 12% higher than that in 1H12.

Ipiranga – Ipiranga’s EBITDA totaled R$ 480 million in 2Q13, up 28% over 2Q12, equivalent to a unit EBITDA margin of R$ 78/m³, mainly due to (i) increased sales volume, especially in the reseller segment, (ii) the strategy of constant innovation in services and convenience in the service station , and (iii) the effects of the evolution of diesel costs, partially offset by increased freight expenses and non-recurring items with a net positive effect of R$ 9 million in 2Q12 (a positive result of R$ 22 million from material sale of land and R$ 13 million expenses related to the return of the Ipiranga brand to the Midwest, Northeast and North of Brazil). Compared with 1Q13, Ipiranga’s EBITDA increased by 11%, mainly due to higher seasonal volume and lower advertising and marketing expenses. In 1H13, Ipiranga’s EBITDA totaled R$ 912 million, 28% higher than that in 1H12.

Oxiteno – Oxiteno’s EBITDA amounted to R$ 107 million in 2Q13, or US$ 250/ton, an 8% increase over 2Q12, mainly due to the increased sales volume and the effect of the 5% weaker Real, partially offset by increased unit expenses with logistics and by expenses related to the startup of the company’s operations in the United States and Uruguay. Compared with 1Q13, Oxiteno’s EBITDA increased by 33%, mainly due to the increased sales volume, the depreciation of the Real during 2Q13, and the lower international price of ethylene. In 1H13, Oxiteno’s EBITDA totaled R$ 188 million, up 14% over 1H12.

Ultracargo – Ultracargo’s EBITDA totaled R$ 42 million in 2Q13, up 18% over 2Q12, mainly due to the increased average storage in the terminals, partially offset by higher expenses. Compared with 1Q13, Ultracargo’s EBITDA increased by 18%, mainly due to the increased average storage in its terminals. In 1H13, Ultracargo’s EBITDA totaled R$ 78 million, up 15% compared with 1H12.

Depreciation and amortization – Total depreciation and amortization costs and expenses in 2Q13 amounted to R$ 193 million, 15% higher than that in 2Q12, mainly as a result of increased investments, especially in Ipiranga, and the acquisitions of Temmar and the specialty chemicals plant in Uruguay. Compared with 1Q13, total depreciation and amortization costs and expenses increased by 2%. In 1H13, Ultrapar’s total depreciation and amortization costs totaled R$ 382 million, 16% higher than that in 1H12.

Financial result – Ultrapar reported R$ 94 million of net financial expenses in 2Q13, R$ 7 million higher than that in 2Q12, mainly due to the effects of exchange rate fluctuations and taxes. Compared with 1Q13, net financial expenses increased by R$ 34 million, mainly due to the same factors above and the higher average net debt. Net debt at the end of 2Q13 totaled R$ 3,590 million, corresponding to 1.4 times EBITDA for the last 12 months compared with a ratio of 1.5 times in 2Q12 and 1Q13. In 1H13, Ultrapar reported net financial expenses of R$ 155 million, R$ 2 million higher than that in 1H12.

Net Earnings – Net earnings in 2Q13 totaled R$ 284 million, 21% and 15% over 2Q12 and 1Q13, respectively, due to the EBITDA growth between periods. In 1H13, Ultrapar reported net earnings of R$ 530 million, up 24% over 1H12.

Investments – Total investments, net of disposals and repayments, totaled R$ 244 million in 2Q13, distributed as follows:

· At Ultragaz, R$ 40 million were invested, mainly directed to new customers in the bulk segment and renewal of LPG bottles.

· At Ipiranga, R$ 153 million were invested, mainly directed towards the expansion and maintenance of the service station network and logistics infrastructure. Ipiranga invested R$ 166 million in fixed and intangible assets, reduced by R$ 13 million related to repayments of financing from clients, net of loans granted.

· At Oxiteno, R$ 36 million were invested, directed mainly to expansions underway in the United States and Mexico and the maintenance of its production units.

· Ultracargo invested R$ 9 million, mainly directed towards maintenance of terminals

R$ million	2Q13	1H13
Additions to fixed and intangible assets		●
Ultragaz	40	75
Ipiranga	166	227
Oxiteno	36	53
Ultracargo	9	17
Total - additions to fixed and intangible assets 1	254	376
Financing to clients 2 – Ipiranga	(13)	(27)
Acquisition (disposal) of equity interest ³	3	19
Total investments, net of disposals and repayments	244	368
¹ Includes the consolidation of corporate IT services ² Financing to clients is included as working capital in the Cash Flow Statement ³ Includes capital invested in ConectCar and closing adjustments of the acquisition of American Chemical

Ultrapar in the capital markets

Ultrapar’s average daily trading volume in 2Q13 was R$ 72 million, 29% higher than the daily average of R$ 55 million in 2Q12, considering the combined trading volumes on the BM&FBOVESPA and the NYSE. Ultrapar’s share price closed 2Q13 quoted at R$ 53.12/share on the BM&FBOVESPA, with an accumulated appreciation of 4% in the quarter and 18% over the last 12 months. During the same periods, the Ibovespa index depreciated by 16% and 13%, respectively. At the NYSE, Ultrapar’s shares depreciated by 6% in 2Q13 and appreciated by 6% over the last 12 months, while the Dow Jones index appreciated by 2% in 2Q13 and 16% over the last 12 months. Ultrapar closed 2Q13 with a market value of R$ 29 billion, up 18% over 2Q12.

Performance of UGPA3 vs. Ibovespa – 2Q13 (Base 100) Average daily trading volume (R$ million)

Outlook

Attentive to the more volatile Brazilian and international economic environment settled in recent months, we expect to maintain the growth trajectory of our results, based on the resilient nature of our businesses, on the investments in expanding the operating scale and the differentiation of products and services, and on the consistent planning and execution of our strategy. Ipiranga will continue to invest in the expansion of its distribution network and related logistics infrastructure, leveraging the benefits of the growing fleet of light vehicles in Brazil, especially in the Midwest, North and Northeast of Brazil, where car penetration is only 9%, below the national average. Additionally, Ipiranga will intensify its differentiation initiatives, based on increasing the offer of products, services and convenience to its customers. Oxiteno will continue to reap benefits from the completion and maturing process of investments in Brazil, in addition to focusing on its international expansion plan, with investments underway in the United States and in Mexico, and the implementation of the business plan of the acquisition in Uruguay. Ultracargo will focus on capturing the benefits from completing a cycle of capacity expansions at its terminals, aiming at meeting the growing demand for liquid bulk storage in Brazil, and from the acquisition of the terminal in the port of Itaqui, which strengthened its operating scale. At Ultragaz, the benefits from the recent investments in capturing new clients and the focus on managing costs and expenses will contribute to the earnings progression. Additionally, Ultrapar will remain attentive to good acquisition and investments opportunities to continue its growth and value creation.

Forthcoming events

Conference call / Webcast: August 2 nd , 2013

Ultrapar will be holding a conference call for analysts on August 2 nd , 2013 to comment on the company's performance in the second quarter of 2013 and outlook. The presentation will be available for download on the company's website 30 minutes prior to the conference call.

Brazilian: 10:00 a.m. (US EST)

Telephone for connection: +55 11 2188 0155

Code: Ultrapar

International: 11:30 a.m. (US EST)

Participants in the US: 1 877 317 6776

Participants in Brazil: 0800 891 0015

Participants in other countries: +1 412 317 6776

Code: Ultrapar

WEBCAST live via Internet at www.ultra.com.br . Please connect 15 minutes in advance.

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

Operational and market information

Financial focus	2Q13	2Q12	1Q13	1H13	1H12
EBITDA margin Ultrapar	4.6%	4.4%	4.5%	4.6%	4.2%
Net margin Ultrapar	1.9%	1.8%	1.8%	1.8%	1.7%
Focus on human resources	2Q13	2Q12	1Q13	1H13	1H12
Number of employees – Ultrapar	9,287	9,071	9,349	9,287	9,071
Number of employees – Ultragaz	3,816	4,022	3,918	3,816	4,022
Number of employees – Ipiranga	2,640	2,526	2,581	2,640	2,526
Number of employees – Oxiteno	1,814	1,582	1,836	1,814	1,582
Number of employees – Ultracargo	602	542	595	602	542
Focus on capital markets	2Q13	2Q12	1Q13	1H13	1H12
Number of shares (000)	544,384	544,384	544,384	544,384	544,384
Market capitalization 1 – R$ million	28,727	22,860	26,740	27,753	21,641
BM&FBOVESPA	2Q13	2Q12	1Q13	1H13	1H12
Average daily volume (shares)	961,243	778,758	1,022,914	991,067	761,423
Average daily volume (R$ 000)	50,767	32,703	50,254	50,519	30,201
Average share price (R$/share)	52.8	42.0	49.1	51.0	39.7
NYSE	2Q13	2Q12	1Q13	1H13	1H12
Quantity of ADRs (000 ADRs)	34,015	46,076	34,015	34,015	46,076
Quantity of ADRs 2 (000 ADRs)	400,382	542,525	375,131	388,163	504,062
Average daily volume (US$ 000)	10,189	11,669	9,242	9,731	10,740
Average share price (US$/ADR)	25.4	21.5	24.6	25.1	21.3
Total	2Q13	2Q12	1Q13	1H13	1H12
Average daily volume (shares)	1,361,624	1,321,283	1,398,044	1,379,231	1,265,485
Average daily volume (R$ 000)	71,852	55,490	68,670	70,313	50,307

All financial information is presented according to the accounting principles laid down in the Brazilian Corporate Law. All figures are expressed in Brazilian Reais, except for the amounts on page 22, which are expressed in US dollars and were obtained using the average exchange rate (commercial dollar rate) for the corresponding periods.

For additional information, please contact:

Investor Relations - Ultrapar Participações S.A.

+55 11 3177 7014

[email protected]

www.ultra.com.br

¹ Calculated based on the weighted average price in the period.

² 1 ADR = 1 common share

ULTRAPAR

CONSOLIDATED BALANCE SHEET

In millions of Reais

JUN		JUN		MAR
2013		2012		2013
ASSETS
Cash, cash equivalents and financial investments	3,084.7		2,224.9		2,073.5
Trade accounts receivable	2,483.5		2,180.9		2,472.8
Inventories	1,396.6		1,308.9		1,574.2
Taxes	401.1		404.8		399.4
Other	129.8		79.9		108.8
Total Current Assets	7,495.7		6,199.3		6,628.8
Investments	52.6		131.3		51.3
Property, plant and equipment and intangibles	6,663.8		6,036.0		6,576.1
Financial investments	104.5		125.2		140.2
Trade accounts receivable	130.5		112.0		133.3
Deferred income tax	430.6		502.9		456.0
Escrow deposits	557.9		507.3		543.1
Other	150.7		196.6		167.3
Total Non-Current Assets	8,090.7		7,611.3		8,067.4
TOTAL ASSETS	15,586.3		13,810.7		14,696.1
LIABILITIES
Loans, financing and debentures	1,744.6		1,946.4		1,521.9
Suppliers	986.3		967.5		1,260.1
Payroll and related charges	207.9		190.0		169.5
Taxes	175.5		158.0		166.5
Other	108.1		124.3		125.5
Total Current Liabilities	3,222.2		3,386.2		3,243.6
Loans, financing and debentures	5,034.5		3,659.6		4,435.2
Provision for contingencies	562.7		533.9		548.5
Post-retirement benefits	125.5		105.1		122.0
Other	260.6		249.8		265.5
Total Non-Current Liabilities	5,983.3		4,548.5		5,371.2
TOTAL LIABILITIES	9,205.5		7,934.7		8,614.8
STOCKHOLDERS' EQUITY
Capital	3,696.8		3,696.8		3,696.8
Reserves	2,248.4		1,854.8		2,248.4
Treasury shares	(114.9	)	(119.9	)	(114.9	)
Others	526.1		417.9		223.9
Non-controlling interest	24.4		26.4		27.2
Total shareholders’ equity	6,380.8		5,876.0		6,081.4
TOTAL LIAB. AND STOCKHOLDERS' EQUITY	15,586.3		13,810.7		14,696.1
Cash and financial investments	3,189.2		2,350.1		2,213.7
Debt	(6,779.1	)	(5,606.0	)	(5,957.2	)
Net cash (debt)	(3,589.9	)	(3,255.9	)	(3,743.4	)

ULTRAPAR

CONSOLIDATED INCOME STATEMENT

In millions of Reais (except per share data)

JUN		JUN		MAR		JUN		JUN
2013		2012		2013		2013		2012
Net sales and services	15,204.1		13,037.7		13,600.0		28,804.1		25,429.0
Cost of sales and services	(14,043.7	)	(12,031.2	)	(12,536.4	)	(26,580.1	)	(23,522.7	)
Gross profit	1,160.4		1,006.6		1,063.6		2,224.0		1,906.2
Operating expenses
Selling	(434.0	)	(393.2	)	(414.6	)	(848.6	)	(770.3	)
General and administrative	(241.9	)	(216.7	)	(243.7	)	(485.6	)	(411.3	)
Other operating income (expenses), net	19.5		13.5		15.7		35.2		23.1
Income from sale of assets	9.2		(2.8	)	5.5		14.7		(4.3	)
Operating income	513.3		407.4		426.5		939.7		743.5
Financial results
Financial income	47.5		51.8		52.9		100.4		115.0
Financial expenses	(141.7	)	(138.9	)	(113.6	)	(255.3	)	(267.5	)
Equity in earnings (losses) of affiliates	(0.1	)	2.9		(2.0	)	(2.0	)	6.0
Income before income and social contribution taxes	419.0		323.2		363.9		782.9		597.0
Provision for income and social contribution taxes
Current	(125.1	)	(67.3	)	(119.6	)	(244.7	)	(143.8	)
Deferred	(22.2	)	(29.6	)	(7.8	)	(30.1	)	(43.8	)
Benefit of tax holidays	12.0		8.1		10.1		22.1		16.8
Net Income	283.7		234.4		246.5		530.2		426.1
Net income attributable to:
Shareholders of Ultrapar	282.1		232.9		244.8		526.9		423.2
Non-controlling shareholders of the subsidiaries	1.6		1.5		1.7		3.3		2.9
EBITDA	706.0		577.4		614.0		1,319.9		1,077.6
Depreciation and amortization	192.8		167.0		189.4		382.2		328.2
Total investments, net of disposals and repayments	243.9		353.0		124.5		368.4		555.8
RATIOS
Earnings per share - R$	0.53		0.43		0.46		0.98		0.79
Net debt / Stockholders' equity	0.56		0.55		0.62		0.56		0.55
Net debt / LTM EBITDA	1.35		1.52		1.48		1.35		1.52
Net interest expense / EBITDA	0.13		0.15		0.10		0.12		0.14
Gross margin	7.6	%	7.7	%	7.8	%	7.7	%	7.5	%
Operating margin	3.4	%	3.1	%	3.1	%	3.3	%	2.9	%
EBITDA margin	4.6	%	4.4	%	4.5	%	4.6	%	4.2	%

ULTRAPAR

CONSOLIDATED CASH FLOW STATEMENT

In millions of Reais

2013		2012
Cash Flows from operating activities	514.8		812.1
Net income	530.2		426.1
Depreciation and amortization	382.2		328.2
Working capital	(515.4	)	(251.9	)
Financial expenses (A)	246.9		333.4
Deferred income and social contribution taxes	30.1		43.8
Income from sale of assets	(14.7	)	4.3
Cash paid for income and social contribution taxes	(152.1	)	(54.7	)
Other (B)	7.7		(17.0	)
Cash Flows from investing activities	(394.9	)	(574.7	)
Additions to fixed and intangible assets, net of disposals	(376.2	)	(574.7	)
Acquisition and sale of equity investments	(18.7	)	-
Cash Flows from (used in) financing activities	(62.5	)	(546.6	)
Debt raising	1,110.8		1,579.6
Amortization of debt	(355.5	)	(1,637.0	)
Interest paid	(456.9	)	(209.7	)
Payment of financial lease	(2.2	)	(2.3	)
Related parties	-		(0.8	)
Dividends paid (C)	(358.6	)	(276.4	)
Net increase (decrease) in cash and cash equivalents	57.4		(309.2	)
Cash and cash equivalents at the beginning of the period (D)	3,131.8		2,659.3
Cash and cash equivalents at the end of the period (D)	3,189.2		2,350.1

(A) Comprised of interest and exchange rate and inflationary variation expenses on loans and financing. Does not include revenues from interest and exchange rate and inflationary variation on cash equivalents.

(B) Comprised mainly of noncurrent assets and liabilities variations net.

(D) Includes cash, cash equivalents and short and long term financial investments.

ULTRAGAZ

CONSOLIDATED INVESTED CAPITAL

In millions of Reais

JUN	JUN	MAR
2013	2012	2013
OPERATING ASSETS
Trade accounts receivable	201.5	204.3	199.4
Trade accounts receivable - noncurrent portion	25.2	26.3	24.4
Inventories	51.9	44.9	48.2
Taxes	32.5	26.2	30.5
Escrow deposits	137.5	121.4	133.7
Other	43.3	32.9	39.8
Property, plant and equipment, intangibles and investments	731.8	731.7	725.7
TOTAL OPERATING ASSETS	1,223.7	1,187.8	1,201.7
OPERATING LIABILITIES
Suppliers	53.0	51.4	48.1
Payroll and related charges	71.3	66.7	56.8
Taxes	5.7	5.0	4.6
Provision for contingencies	78.9	67.9	76.9
Other accounts payable	20.1	15.9	17.7
TOTAL OPERATING LIABILITIES	229.0	206.9	204.2

ULTRAGAZ

CONSOLIDATED INCOME STATEMENT

In millions of Reais

JUN		JUN		MAR		JUN		JUN
2013		2012		2013		2013		2012
Net sales	1,005.1		972.7		920.1		1,925.2		1,893.2
Cost of sales and services	(854.3	)	(835.3	)	(788.5	)	(1,642.8	)	(1,629.0	)
Gross profit	150.8		137.4		131.6		282.4		264.2
Operating expenses
Selling	(78.2	)	(77.4	)	(67.0	)	(145.2	)	(145.1	)
General and administrative	(32.3	)	(28.5	)	(31.4	)	(63.8	)	(58.4	)
Other operating income (expenses), net	(0.2	)	0.2		(0.3	)	(0.5	)	0.3
Income from sale of assets	0.0		(1.8	)	(2.2	)	(2.2	)	(3.6	)
Operating income	40.1		29.9		30.7		70.8		57.4
Equity in earnings (losses) of affiliates	(0.0	)	(0.0	)	0.0		0.0		0.0
EBITDA	73.6		62.9		63.5		137.1		122.9
Depreciation and amortization	33.5		33.0		32.8		66.3		65.4
RATIOS
Gross margin (R$/ton)	350		323		332		341		319
Operating margin (R$/ton)	93		70		77		86		69
EBITDA margin (R$/ton)	171		148		160		166		148

IPIRANGA

CONSOLIDATED INVESTED CAPITAL

In millions of Reais

JUN	JUN	MAR
2013	2012	2013
OPERATING ASSETS
Trade accounts receivable	1,792.9	1,535.6	1,794.3
Trade accounts receivable - noncurrent portion	104.6	85.4	108.1
Inventories	916.4	811.4	1,085.5
Taxes	131.1	158.5	117.8
Other	232.0	186.9	198.2
Property, plant and equipment, intangibles and investments	3,044.7	2,731.9	2,977.2
TOTAL OPERATING ASSETS	6,221.6	5,509.8	6,281.1
OPERATING LIABILITIES
Suppliers	761.3	776.2	1,046.4
Payroll and related charges	66.8	59.8	52.1
Post-retirement benefits	111.9	97.2	109.1
Taxes	71.4	68.5	59.7
Provision for contingencies	176.1	168.6	175.6
Other accounts payable	137.0	169.5	147.6
TOTAL OPERATING LIABILITIES	1,324.5	1,339.7	1,590.6

IPIRANGA

CONSOLIDATED INCOME STATEMENT

In millions of Reais

JUN		JUN		MAR		JUN		JUN
2013		2012		2013		2013		2012
Net sales	13,300.7		11,275.7		11,858.8		25,159.4		22,039.3
Cost of sales and services	(12,535.4	)	(10,614.1	)	(11,125.5	)	(23,660.9	)	(20,765.3	)
Gross profit	765.2		661.6		733.3		1,498.5		1,273.9
Operating expenses
Selling	(289.1	)	(268.3	)	(290.7	)	(579.7	)	(531.9	)
General and administrative	(134.1	)	(127.6	)	(143.5	)	(277.6	)	(243.7	)
Other operating income (expenses), net	17.6		15.9		14.9		32.6		30.8
Income from sale of assets	9.1		(1.1	)	7.9		17.0		(2.8	)
Operating income	368.7		280.5		322.0		690.7		526.4
Equity in earnings (losses) of affiliates	0.2		1.4		0.2		0.5		3.3
EBITDA	479.6		375.0		432.1		911.7		711.9
Depreciation and amortization	110.6		93.1		109.9		220.5		182.2
RATIOS
Gross margin (R$/m 3 )	125		116		132		128		114
Operating margin (R$/m 3 )	60		49		58		59		47
EBITDA margin (R$/m 3 )	78		66		78		78		64
EBITDA margin (%)	3.6	%	3.3	%	3.6	%	3.6	%	3.2	%

OXITENO

CONSOLIDATED INVESTED CAPITAL

In millions of Reais

JUN	JUN	MAR
2013	2012	2013
OPERATING ASSETS
Trade accounts receivable	461.4	423.0	456.0
Inventories	426.2	450.5	438.2
Taxes	124.7	145.8	131.8
Other	100.4	93.9	101.8
Property, plant and equipment, intangibles and investments	1,654.5	1,574.6	1,636.8
TOTAL OPERATING ASSETS	2,767.2	2,687.9	2,764.6
OPERATING LIABILITIES
Suppliers	159.6	132.1	154.7
Payroll and related charges	57.4	50.6	47.9
Taxes	30.4	28.9	23.9
Provision for contingencies	77.3	88.7	76.4
Other accounts payable	23.3	18.2	24.3
TOTAL OPERATING LIABILITIES	348.0	318.5	327.1

OXITENO

CONSOLIDATED INCOME STATEMENT

In millions of Reais

JUN		JUN		MAR		JUN		JUN
2013		2012		2013		2013		2012
Net sales	821.5		724.4		754.5		1,576.0		1,371.1
Cost of goods sold
Variable	(532.5	)	(472.9	)	(510.3	)	(1,042.8	)	(917.6	)
Fixed	(66.5	)	(59.2	)	(60.5	)	(127.0	)	(113.9	)
Depreciation and amortization	(30.9	)	(28.1	)	(29.3	)	(60.2	)	(55.3	)
Gross profit	191.6		164.2		154.4		346.0		284.3
Operating expenses
Selling	(60.7	)	(45.5	)	(53.0	)	(113.7	)	(89.5	)
General and administrative	(57.5	)	(50.9	)	(53.2	)	(110.7	)	(91.3	)
Other operating income (expenses), net	(0.3	)	0.2		0.0		(0.2	)	(0.3	)
Income from sale of assets	0.1		0.1		(0.1	)	(0.0	)	2.1
Operating income	73.2		68.2		48.2		121.4		105.3
Equity in earnings (losses) of affiliates	(0.1	)	0.1		0.1		(0.0	)	0.0
EBITDA	107.1		98.8		80.6		187.6		165.2
Depreciation and amortization	34.0		30.5		32.3		66.3		59.9
RATIOS
Gross margin (R$/ton)	927		887		780		855		765
Operating margin (R$/ton)	354		368		243		300		283
EBITDA margin (R$/ton)	518		533		407		464		445

ULTRACARGO

CONSOLIDATED INVESTED CAPITAL

In millions of Reais

JUN	JUN	MAR
2013	2012	2013
OPERATING ASSETS
Trade accounts receivable	27.9	20.5	25.4
Inventories	2.1	2.0	2.4
Taxes	11.1	7.3	11.1
Other	20.5	11.0	21.8
Property, plant and equipment, intangibles and investments	954.9	812.6	957.2
TOTAL OPERATING ASSETS	1,016.6	853.3	1,017.8
OPERATING LIABILITIES
Suppliers	9.5	11.5	12.1
Payroll and related charges	12.2	12.8	12.5
Taxes	4.8	4.4	4.3
Provision for contingencies	10.9	10.0	10.3
Other accounts payable¹	47.4	42.8	48.4
TOTAL OPERATING LIABILITIES	84.8	81.4	87.6

¹ Includes the long term obligations with clients account and the extra amount related to the acquisition of Temmar, in the port of Itaqui

ULTRACARGO

CONSOLIDATED INCOME STATEMENT

In millions of Reais

JUN		JUN		MAR		JUN		JUN
2013		2012		2013		2013		2012
Net sales	85.7		71.8		75.7		161.4		139.3
Cost of sales and services	(33.0	)	(28.3	)	(31.5	)	(64.5	)	(55.2	)
Gross profit	52.7		43.4		44.2		96.9		84.1
Operating expenses
Selling	(6.0	)	(2.0	)	(4.0	)	(10.0	)	(3.8	)
General and administrative	(19.1	)	(14.9	)	(16.8	)	(35.9	)	(29.9	)
Other operating income (expenses), net	2.3		1.1		1.1		3.4		1.6
Income from sale of assets	0.0		0.0		(0.1	)	(0.1	)	0.0
Operating income	30.0		27.6		24.3		54.3		52.0
Equity in earnings (losses) of affiliates	0.5		0.4		0.2		0.7		0.6
EBITDA	42.3		35.7		35.9		78.2		67.8
Depreciation and amortization	11.8		7.7		11.4		23.2		15.2
RATIOS
Gross margin	62	%	61	%	58	%	60	%	60	%
Operating margin	35	%	38	%	32	%	34	%	37	%
EBITDA margin	49	%	50	%	48	%	48	%	49	%

ULTRAPAR

CONSOLIDATED INCOME STATEMENT

In millions of US dollars except where otherwise mentioned

JUN	JUN	MAR	JUN	JUN
2013	2012	2013	2013	2012
Net sales
Ultrapar	7,345.0	6,640.6	6,814.6	14,169.2	13,630.7
Ultragaz	485.6	495.4	461.0	947.0	1,014.8
Ipiranga	6,425.4	5,743.1	5,942.1	12,376.4	11,813.7
Oxiteno	396.8	368.9	378.1	775.3	734.9
Ultracargo	41.4	36.5	37.9	79.4	74.7
EBITDA
Ultrapar	341.1	294.1	307.6	649.3	577.6
Ultragaz	35.6	32.1	31.8	67.4	65.9
Ipiranga	231.7	191.0	216.5	448.5	381.6
Oxiteno	51.7	50.3	40.4	92.3	88.6
Ultracargo	20.4	18.2	18.0	38.5	36.3
Operating income
Ultrapar	248.0	207.5	213.7	462.3	398.5
Ultragaz	19.4	15.3	15.4	34.8	30.8
Ipiranga	178.1	142.9	161.4	339.8	282.1
Oxiteno	35.4	34.7	24.1	59.7	56.4
Ultracargo	14.5	14.1	12.2	26.7	27.9
EBITDA margin
Ultrapar	5 %	4 %	5 %	5 %	4 %
Ultragaz	7 %	6 %	7 %	7 %	6 %
Ipiranga	4 %	3 %	4 %	4 %	3 %
Oxiteno	13 %	14 %	11 %	12 %	12 %
Ultracargo	49 %	50 %	48 %	48 %	49 %
EBITDA margin / volume
Ultragaz (US$/ton)	82	75	80	82	79
Ipiranga (US$/m 3 )	38	33	39	38	34
Oxiteno (US$/ton)	250	272	204	228	238
Net income
Ultrapar	137.0	119.4	123.5	260.8	228.4
Net income / share (US$)	0.25	0.22	0.23	0.48	0.42

ULTRAPAR PARTICIPAÇÕES S/A

LOANS

In millions of Reais - Accounting practices adopted in Brazil

LOANS — Foreign Currency	Balance in June/2013 1 — Ultragaz	Oxiteno	Ultracargo	Ipiranga	Ultrapar Parent Company / Other	Ultrapar Consolidated	Index/ Currency	Weighted average interest rate (% p.y.) 2	Maturity
Notes	552.3	-	-	-	-	552.3	US$	7.3	2015
Foreign loan	-	-	-	174.6	-	174.6	US$ + LIBOR	0.8	2015
Advances on foreign exchange contracts	-	136.0	-	-	-	136.0	US$	1.6	< 348 days
Foreign loan	-	132.6	-	-	-	132.6	US$ + LIBOR	1.0	2014
Financial institutions	-	91.8	-	-	-	91.8	US$	2.3	2013 to 2017
BNDES	17.0	27.5	-	8.1	-	52.6	US$	5.6	2013 to 2020
Financial institutions	-	44.3	-	-	-	44.3	US$ + LIBOR	2.0	2017
Foreign currency advances delivered	-	28.1	-	-	-	28.1	US$	1.5	< 109 days
Financial institutions	-	24.4	-	-	-	24.4	MX$ + TIIE	1.3	2014 to 2016
Financial institutions	-	10.5	-	-	-	10.5	Bs	10.4	2013 to 2015
Subtotal	569.2	495.3	-	182.7	-	1,247.2
Local Currency
Banco do Brasil floating rate	-	-	-	2,293.1	-	2,293.1	CDI	103.3	2014 to 2019
Banco do Brasil fixed rate 3	-	-	-	867.8	-	867.8	R$	12.1	2014 to 2015
Debentures - 4th issuance	-	-	-	-	811.1	811.1	CDI	108.3	2015
BNDES	209.6	174.5	124.9	169.5	-	678.5	TJLP	2.5	2013 to 2020
Debentures - 1st issuance IPP	-	-	-	605.4	-	605.4	CDI	107.9	2017
Banco do Nordeste do Brasil	-	66.2	45.9	-	-	112.1	R$	8.5	2018 to 2021
BNDES	8.9	10.2	2.0	33.8	-	54.9	R$	5.3	2015 to 2019
Financial leasing	45.1	-	-	-	-	45.1	IGPM	5.6	2031
Research and projects financing (FINEP)	-	20.1	-	10.7	-	30.8	R$	4.0	2019 to 2021
Export Credit Note	-	16.3	-	-	-	16.3	R$	8.0	2016
Research and projects financing (FINEP)	1.0	11.5	-	-	-	12.5	TJLP	0.0	2014
Financial leasing fixed rate	-	-	-	-	0.2	0.2	R$	13.7	2013 to 2014
Agency for Financing Machinery and Equipment (FINAME)	-	-	-	0.0	-	0.0	TJLP	2.8	2013
Subtotal	264.6	298.8	172.8	3,980.3	811.3	5,527.8
Unrealized losses on swaps transactions	-	2.9	-	1.2	-	4.1
Total	833.8	797.0	172.8	4,164.2	811.3	6,779.1
Composition per annum
Up to 1 year	53.7	469.0	40.0	1,167.8	14.0	1,744.6
From 1 to 2 years	53.9	79.2	38.0	1,025.9	797.2	1,994.3
From 2 to 3 years	605.6	80.3	32.2	491.0	-	1,209.0
From 3 to 4 years	40.4	110.4	27.4	37.3	-	215.6
From 4 to 5 years	20.1	41.5	16.6	619.9	-	698.1
Thereafter	60.1	16.5	18.6	822.3	-	917.5
Total	833.8	797.0	172.8	4,164.2	811.3	6,779.1

Libor = London Interbank Offered Rate / MX$ = Mexican Peso / TIIE = Mexican Interbank Interest Rate Even / Bs = Bolivar Forte from Venezuela / CDI = interbank certificate of deposit rate / TJLP = basic financing cost of BNDES (set by National Monetary Council. On June 30, 2013, TJLP was fixed at 5% p.a. / IGPM = General Index of Market Prices

Ultragaz	Oxiteno	Ultracargo	Ipiranga	Ultrapar Parent Company / Other	Ultrapar Consolidated
CASH AND LONG TERM INVESTMENTS	357.0	606.4	217.5	1,427.5	580.8	3,189.2

1 As provided in IAS 39, transaction costs incurred in obtaining financial resources were deducted from the value of the financial instrument.

2 Some loans have hedging against foreign currency exposure and interest rate (see note 22 to financial statements).

3 For this loan, a hedging instrument was hired with the objective of swapping the fixed to floating rate, equivalent to 99,25% of CDI on average.

Item 3

ULTRAPAR PARTICIPAÇÕES S.A.

Publicly Traded Company

CNPJ nº 33.256.439/0001- 39 NIRE 35.300.109.724

MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS (05/2013)

Date, Time and Location:

July 31 st , 2013, at 2:30 p.m., at the Company’s headquarters, located at Av. Brigadeiro Luís Antônio, n r 1343, 9 th floor, in the City and State of São Paulo.

Attendance :

(i) Members of the Board of Directors; and (ii) member of the Fiscal Council, pursuant to the terms of paragraph 3 of article 163, of the Brazilian Corporate Law.

Decisions :

After having analyzed and discussed the performance of the Company in the second quarter of the current fiscal year, the respective financial statements were approved.
“Ad referendum” of the Annual General Shareholders’ Meeting that will analyze the balance sheet and financial statements of the current fiscal year, to approve the dividends distribution, to be deducted from the net income account of the current year, in the total amount of R$ 354,032,210.40 (three hundred and fifty-four million thirty-two thousand two hundred and ten Reais and forty cents). Holders of common shares are entitled to receive R$ 0.66 (sixty-six cents of Real) per share, excluding the shares held in treasury at this date.
It has been determined that dividends declared herein will be paid from August 16 th , 2013 onwards, without remuneration or monetary adjustment. The record date for receiving the approved dividends will be August 7 th , 2013 in Brazil and August 12 th , 2013 in the United States of America.
The members of the Board of Directors analyzed the proposal of strategic positioning of Ipiranga, the Company’s fuel distribution business.
The members of the Board of Directors were updated on strategic and expansion projects of the Company.
The Board of Directors approved the amendment to the “Code of Ethics”, in order to increase the number of permanent members of the Conduct Committee (former Ethics Committee) from three (3) to four (4) members.
The members of the Board of Directors elected, to compose the Conduct Committee, Mr. Marcelo Fernandez Trindade, as the Chairman, Mr. André Covre (Chief Financial and Investor Relations Officer), Mr. Roberto Kutschat Neto (Corporate Controller) and Mr. Denis Celso Marques Cuenca (Auditing Executive Manager).

(Minutes of the Meeting of the Board of Directors of Ultrapar Participações S.A., held on July 31 st , 2013)

Observations: The deliberations were approved, with no amendments or qualifications, by all the Board Members present.

As there were no further matters to be discussed, the meeting was closed, and the minutes of this meeting were written, read and approved by all the undersigned Board Members present, as well as by the member of the Fiscal Council.

Paulo Guilherme Aguiar Cunha – Chairman

Lucio de Castro Andrade Filho – Vice Chairman

Ana Maria Levy Villela Igel

Nildemar Secches

Olavo Egydio Monteiro de Carvalho

Paulo Vieira Belotti

Pedro Wongtschowski

Renato Ochman

Member of the Fiscal Council:

Flavio César Maia Luz

Item 4

ULTRAPAR PARTICIPAÇÕES S.A.

Publicly-Traded Company

CNPJ nº 33.256.439/0001- 39

NIRE 35.300.109.724

NOTICE TO SHAREHOLDERS

Distribution of dividends

We hereby inform that the Board of Directors of Ultrapar Participações S.A. (“Ultrapar”), at the meeting held on July 31 st , 2013, approved the distribution of dividends, payable from the net earnings account for the fiscal year of 2013, in the amount of R$ 354,032,210.40 (three hundred and fifty-four million thirty-two thousand two hundred and ten Reais and forty cents), to be paid from August 16 th , 2013 onwards, without remuneration or monetary adjustment.

Holders of shares issued by Ultrapar as of the record dates informed below will receive the dividend of R$ 0.66 per share.

The record date to establish the right to receive the dividend will be August 7 th , 2013 in Brazil, and August 12 th , 2013 in the United States of America. Therefore, from August 8 th , 2013 onwards, the shares will be traded "ex-dividend" on both the São Paulo Stock Exchange (BM&FBOVESPA) and the New York Stock Exchange (NYSE).

São Paulo, July 31 st , 2013.

André Covre

Chief Financial and Investor Relations Officer

ULTRAPAR PARTICIPAÇÕES S.A.

CODE OF ETHICS

This Code of Ethics sets out the principles adopted by Ultrapar Participações S.A. (“Ultrapar”) and its subsidiaries (together denominated “Company”) as a reference for behavior standards, regardless of the country or region of operation.

Objectives of the Code of Ethics

(i) To reduce the subjectivity of personal interpretations of ethical principles;

(ii) To formalize and to institutionalize a reference for the professional behavior of the employees of the Company, including the ethical administration of real or apparent conflicts of interest, becoming a standard for the internal and external relationship of the Company with its stakeholders, which are: shareholders, clients, employees, partners, suppliers, service providers, labor unions, competitors, society, government and the communities in which the Company operates;

(iii) To ensure that the daily concerns with efficiency, competitiveness and profitability do not override ethical behavior; and

(iv) To ensure the adoption of corporate sustainability practices.

Scope

This Code applies to the members of the Board of Directors, members of the Fiscal Council, all employees and interns of Ultrapar and its subsidiaries, third-parties hired by the Company, hereinafter referred as “Professionals”.

Ethical Principles

In the exercise of his/her position or function, each Professional shall:

(i) Maintain a posture of honesty, integrity, respect, loyalty, efficiency, transparency and impartiality, which shall guide their relations with the Company and its stakeholders;

(ii) Not engage in transactions and activities that might compromise his/her professional dignity or damage his/her public image as well as the image of Ultrapar;

(iii) Carry out his/her professional activities with competence and diligence, seeking to constantly improve his/her performance from a technical perspective, to remain permanently up to date, and encourage all those involved in the activity to adopt the same conduct;

(iv) Behave strictly in a professional and impartial manner in the treatment with the public;

(v) Base the boss-employee relationship on mutual respect, honesty, dedication and kindness, fostering a sound business environment and organizational cohesion;

(vi) Have a behavior that leaves no room for discrimination or harassment, including moral and sexual harassment, particularly in the boss-employee relationship; and

(vii) Seek to maximize the value creation for the Company.

Labor Practices

In the relationship with colleagues and other Professionals and in the use of resources for the accomplishment of its activities, each Professional shall:

(i) Use qualifications (for example, educational background, experience, competence) as a basis for making decisions related to work which affect employees and candidates, valuing the diversity;

(ii) Do not exploit child and forced labor or slavery. Observe that such practice is not applied to the relationship between the Company and its stakeholders;

(iii) Do not use the influence inherent in his/her professional position to obtain favors or personal services from subordinates;

(iv) Promote a cultural environment, through leadership, in which ethical conduct is recognized, valued and taken as an example for all employees;

(v) Ensure that the Company's activities are conducted considering the local community and the environment, seeking to maximize the use of resources and minimize eventual negative impacts from its operations;

(vi) Ensure the competent use of the company's assets and resources, avoiding damage, inadequate handling, loss, theft or unauthorized withdrawal;

(vii) Inform, when aware of, the improper use of the company’s resources, being intentional damages to the work environment characterized as serious infraction; and

(viii) Adopt irreproachable conduct related to any type of corruption in its relationship with suppliers, clients, public agents or any other stakeholder.

Compliance with Laws, Rules and Regulations

Each Professional shall:

(i) Comply with the laws and rules regulations applicable to the Company’s businesses and to generally applicable commercial business practices;

(ii) Observe the company policy with regard to unfair trade competition; and

(iii) Respect the accounting principles, the laws and regulations for booking transactions and issue precise financial reports that truly reflect the reality of the Company.

Obedience to the principles of the Law Against Unfair Trade Competition

The Law Against Unfair Trade Competition (Law No. 8.884/94) is aimed at avoiding and restraining violations and infractions against economic order, particularly cartels, predatory pricing, pricing discrimination, etc.

Each professional shall act strictly in observance to Law No. 8.884/94, being forbidden quarrels related to:

(i) Combination of prices with competitors;

(ii) Division of clients;

(iii) Non-aggression agreements;

(iv) Commercial policies in general.

Contacts with competitors and class associations should receive particular attention. If Professional is involved in a doubtful situation, or one that is potentially in breach of the Law Against Unfair Trade Competition, he or she should immediately notify his or her superior, as well as the legal department.

Guarantee of Quality and of Proper Use of Information

Each Professional shall:

(i) Ensure that all internal processes are subject to rigorous controls which shall guarantee the precise accounting of the operations of the Company, thus guaranteeing that all management decisions are based on solid economic analyses, and that the physical and financial assets of the Company are efficiently used;

(ii) Maintain the confidentiality of the information and activities relating to the work in the area where he/she is employed, being forbidden the use of such information in benefit of particular or third parties’ interests;

(iii) Ensure the veracity of the information that is disclosed internally or externally by the Company aiming at a relationship of respect and transparency with its stakeholders;

(iv) Make sure that all reports and documents filed with or submitted to the Comissão de Valores Mobiliários, the United States Securities and Exchange Commission or any other public regulatory authorities or any other public communications shall include full, fair, accurate, timely and understandable disclosure; and

(v) Ensure that all transactions registered in the Company’s books be precise, complete, truthful and detailed, being dully supported by lawful documentation in accordance with the Company’s internal procedures, applicable laws and generally accepted accounting principles so as to ensure the quality of the Company’s financial statements.

Use of Non-Public Information and Disclosure

Each Professional holding important information about the Company that has not been disclosed to the public shall:

(i) Maintain the confidentiality of such information, except when disclosure is authorized or legally mandated.

(ii) Abstain him/herself from buying or selling securities using important non-public information obtained in the performance of their duties on behalf of the Company and providing any such information so obtained to others.

(iii) Adhere to the policy on Material Information, which establishes the procedure to be followed in relation to the announcement of Material Information or Facts and with respect to the trading of securities issued by Ultrapar, should the Professional occupy any position exposed to privileged information about the Company.

Conflicts of Interest

Each Professional has the obligation to act in ethical and honest manner, leading his/her professional activities in accordance with the best interest of the Company.

Each Professional should endeavor to avoid situations that present a potential or actual conflict between their interest and the interest of the Company.

Each Professional shall:

(i) Refuse, in the exercise of his/her professional activities, any type of financial aid, gratification, commissions, donations, or advantages of any kind for him/herself, family members or any other person;

(ii) Receive only promotional gifts without commercial value;

(iii) Consult with his or her superior to accept invitations to events subsidized by commercially related parties (suppliers, clients, service providers);

(iv) Properly deploy the Company’s resources, intellectual property, time and installations, including the access to the Internet, eliminating the excessive, commercial, unproductive use or the use that adversely compromises the image of the Company; and

(v) When making his/her personal investments, avoid conflicts of interest in relation to the activities in which he/she is engaged.

Compliance with this Code of Ethics and notification of unethical behavior

In the event that an actual or apparent conflict of interest arises involving the personal or professional relationships or activities of a Professional, the Professional involved is required to handle with such conflict of interest in accordance with the ethical principles defined in this Code of Ethics.

It is the responsibility of each Professional to consult the Conduct Committee of Ultrapar, defined below, regarding (i) any action that may involve a conflict of interest and (ii) in any case of doubt as to the most appropriate behavior in situations provided for under this Code of Ethics.

Furthermore it is the responsibility of each Professional to immediately notify Ultrapar’s Conduct Committee of any situations that are potentially contrary to ethical principles, or that are illegal, irregular or questionable, having the information source guaranteed confidentiality.

Any notification to the Conduct Committee shall be made either by website www.canalaberto.com.br, or by telephone, through the number 0800 701 7172.

The Company encourages all Professionals to report any suspected violations promptly. The name of the Professional and confidentiality of the case will be guaranteed.

The Company will thoroughly investigate any good faith reports of violations to this Code of Ethics and will not tolerate any kind of retaliation for reports or complaints regarding misconduct that were made in good faith.

Each Professional shall be required to cooperate in internal investigations of misconduct and unethical behavior.

The Conduct Committee of Ultrapar will be composed of 5 (five) members, nominated by the Board of Directors, being 4 (four) permanent members and one rotating member who should be the main executive of the business to which the query, potential unethical, illegal or questionable situation is related.

Accountability for adherence to the Code of Ethics

All Professionals are responsible for adhering to this Code. This includes individuals responsible for the failure to exercise proper supervision and to detect and report a violation by their subordinates.

Penalties

Any Professional who violate the Company’s ethical principles or this Code of Ethics shall be subject to disciplinary measures as determined by the Conduct Committee that may result in dismissal and legal proceedings in case of any violation of the law.

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.

Date: July 31, 2013

/s/ André Covre
Name:	André Covre
Title:	Chief Financial and Investor Relations Officer

(Interim Financial Information, Earnings Release 2Q13, Board of Directors Minutes, Notice to Shareholders, Code of Ethics)

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