A pioneer in the LPG distribution market, Ultragaz maintains leadership in this segment, serving approximately 11 million households and 42 thousand customers in the bulk segment – which represents a market share of over 23% in Brazil. Ultragaz has a well-spread distribution network in Brazil, served by 17 filling plants and 21 satellite stations.
In 2011, Ultragaz increased it scale and improved its position to keep on a growth trajectory. The company acquired in October the LPG distribution business of Repsol in Brazil, strengthening its position in the bulk LPG segment.
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In August 2011, Ultragaz reached a milestone in its business performance: 158 thousand tons of LPG were sold in Brazil, a new record in monthly sales for the company, surpassing the previous mark of 147 thousand tons recorded in August 2010. In the year, Ultragaz sales grew 3% compared to the volume sold in 2010, driven primarily by bulk LPG sales. This sales record proves the success of the strategy followed in recent years, focused on expanding its business in the bulk segment and household market in the Northeast and North regions of Brazil, which grow above the national average, and also seeking new ways to sell LPG, growing in more profitable niches.
In 2011, Ultragaz reached a larger scale and improved its positioning to keep on a growth trajectory. In October, the company acquired Repsol’s LPG distribution business in Brazil for R$ 48 million. With Repsol’s assets, Ultragaz strengthens its position in the bulk LPG segment, reaping economies of scale in logistics and management and incorporating an annual sales volume of 22 thousand tons, corresponding to 1% of the Brazilian LPG market in this segment.
Ultragaz signed the UN Global Compact in 2009, and has developed a structured program for spreading the sustainability theme, through a series of initiatives with internal and external audiences, taking the following position: “Ultragaz Faz Sustentável. E quer fazer sempre
mais” (Ultragaz does sustainably and always wants to do more), which aims to identify, create and communicate all sustainable actions promoted by the company.
Based on the sustainability mission of “contributing to the socioeconomic development of communities by investing in educational, cultural, and environmental preservation programs with a focus on business sustainability,” Ultragaz has emphasized its investment in socio-environmental actions. In 2011, the company continued to work on one of its biggest projects, Ultragaz Cultural. This initiative aims to bring culture to disadvantaged communities across the country through music, theater, literature and movies. Started in 2008 with focus on a traveling movie theater, the program has already visited over 40 cities in 22 different states and reached more than 80 thousand youngsters and children.
The volume sold by Ultragaz grew by 2% in the bottled segment and 5% in the bulk segment, an increase of 3% over the total volume sold in the previous year.
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ULTRAGAZ’S UNITS LOCATION MAP
ULTRAGAZ – SALES VOLUME AND MARKET SHARE
ULTRAGAZ – EBITDA (R$ million)
Market shareVolume (million tons)
1.59
23.7% 23.2% 23.2%
1.57 1.65
23.7%
2007 20112008 2009 2010
1.60 1.61
23.6%
281307
252282
2007 20112008 2009 2010
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Regions of operation Filling plants
ANNUAL REPORT 2011 ULTRAPAR 61
Bulk transport truck
Pipelines
Primary storage facility
Bulk transport truck
Filling plants Delivery truck Home delivery
Satellite storage facility
Small bulk delivery truck
Large bulk delivery truck Large bulk client
Points of sale
Independent dealers
Small bulk client
Secondary storage facility
LPG storage
Local refinery
Imports
LGP DISTRIBUTION IN BRAZIL
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ANNUAL REPORT 2011 ULTRAPAR 63