6-K 1 dp46420_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 May, 2014
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 March 31, 2014
2. | Earnings release 1Q14
3. | Board of Directors Minutes

Item 1

(Convenience Translation into English from the Original Previously Issued in Portuguese)
Ultrapar Participações S.A. Individual and Consolidated Interim Financial Information for the Three-Month Period Ended March 31, 2014 and Report on Review of Interim Financial Information

1

Ultrapar Participações S.A. and Subsidiaries
Individual and Consolidated Interim Financial Information
for the Three-Month Period Ended March 31, 2014
Table of contents

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

2

(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 March 31, 2014, which comprises the balance sheet as of March 31, 2014 and the related statements of income, comprehensive income, changes in equity and cash flows for the three-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.
3

(Convenience Translation into English from the Original Previously Issued in Portuguese)
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.
Other matters
Statements of value added
We have also reviewed the individual and consolidated statements of value added, for the three-month period ended March 31, 2014, 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 - IFRSs, 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, May 14, 2014

DELOITTE TOUCHE TOHMATSU | Edimar Facco
Auditores Independentes | Engagement Partner

4

Ultrapar Participações S.A. and Subsidiaries
Balance sheets
as of March 31, 2014 and December 31, 2013
(In thousands of Brazilian Reais)

|  |  |  |  | Parent |  |  | Consolidated |
Assets |  | Note |  |  | 03/31/2014 |  |  | 12/31/2013 |  |  | 03/31/2014 |  |  | 12/31/2013 |
Current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 4 |  |  |  | 65,876 |  |  |  | 110,278 |  |  |  | 2,156,241 |  |  |  | 2,276,069 |
Financial investments |  |  | 4 |  |  |  | 1,277 |  |  |  | 264 |  |  |  | 1,028,073 |  |  |  | 1,149,132 |
Trade receivables, net |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  | 2,450,437 |  |  |  | 2,321,537 |
Inventories, net |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | 2,007,917 |  |  |  | 1,592,513 |
Recoverable taxes, net |  |  | 7 |  |  |  | 19,926 |  |  |  | 27,067 |  |  |  | 494,666 |  |  |  | 479,975 |
Dividends receivable |  |  |  |  |  |  | 51,412 |  |  |  | 296,918 |  |  |  | 177 |  |  |  | 177 |
Other receivables |  |  |  |  |  |  | 1,720 |  |  |  | 1,349 |  |  |  | 41,443 |  |  |  | 19,361 |
Prepaid expenses, net |  |  | 10 |  |  |  | - |  |  |  | 1,907 |  |  |  | 96,775 |  |  |  | 65,177 |
Total current assets |  |  |  |  |  |  | 140,211 |  |  |  | 437,783 |  |  |  | 8,275,729 |  |  |  | 7,903,941 |
Non-current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial investments |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | 109,891 |  |  |  | 118,499 |
Trade receivables, net |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  | 125,241 |  |  |  | 124,478 |
Related parties |  |  | 8.a |  |  |  | 762,653 |  |  |  | 772,194 |  |  |  | 10,858 |  |  |  | 10,858 |
Deferred income and social contribution taxes |  |  | 9.a |  |  |  | 6,796 |  |  |  | 395 |  |  |  | 414,797 |  |  |  | 376,132 |
Recoverable taxes, net |  |  | 7 |  |  |  | 33,927 |  |  |  | 21,464 |  |  |  | 47,031 |  |  |  | 37,365 |
Escrow deposits |  |  | 23 |  |  |  | 149 |  |  |  | 148 |  |  |  | 639,459 |  |  |  | 614,912 |
Other receivables |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 7,294 |  |  |  | 6,634 |
Prepaid expenses, net |  |  | 10 |  |  |  | - |  |  |  | - |  |  |  | 106,488 |  |  |  | 97,805 |
|  |  |  |  |  |  | 803,525 |  |  |  | 794,201 |  |  |  | 1,461,059 |  |  |  | 1,386,683 |
Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In subsidiaries |  |  | 11.a |  |  |  | 7,022,210 |  |  |  | 6,112,193 |  |  |  | - |  |  |  | - |
In joint-ventures |  |  | 11.a;11.b |  |  |  | 23,100 |  |  |  | 22,751 |  |  |  | 50,630 |  |  |  | 44,386 |
In associates |  |  | 11.c |  |  |  | - |  |  |  | - |  |  |  | 11,930 |  |  |  | 11,741 |
Other |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 2,814 |  |  |  | 2,814 |
Property, plant and equipment, net |  |  | 12 |  |  |  | - |  |  |  | - |  |  |  | 4,876,392 |  |  |  | 4,860,225 |
Intangible assets, net |  |  | 13 |  |  |  | 246,163 |  |  |  | 246,163 |  |  |  | 2,958,264 |  |  |  | 2,168,755 |
|  |  |  |  |  |  | 7,291,473 |  |  |  | 6,381,107 |  |  |  | 7,900,030 |  |  |  | 7,087,921 |
Total non-current assets |  |  |  |  |  |  | 8,094,998 |  |  |  | 7,175,308 |  |  |  | 9,361,089 |  |  |  | 8,474,604 |
Total assets |  |  |  |  |  |  | 8,235,209 |  |  |  | 7,613,091 |  |  |  | 17,636,818 |  |  |  | 16,378,545 |

The accompanying notes are an integral part of these interim financial information.
5

Ultrapar Participações S.A. and Subsidiaries
Balance sheets
as of March 31, 2014 and December 31, 2013
(In thousands of Brazilian Reais)

|  |  |  |  | Parent |  |  | Consolidated |
Liabilities |  | Note |  |  | 03/31/2014 |  |  | 12/31/2013 |  |  | 03/31/2014 |  |  | 12/31/2013 |
Current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  |  | 14 |  |  |  | - |  |  |  | - |  |  |  | 934,698 |  |  |  | 1,767,824 |
Debentures |  |  | 14.g |  |  |  | 799,840 |  |  |  | 53,287 |  |  |  | 841,180 |  |  |  | 60,377 |
Finance leases |  |  | 14.j |  |  |  | - |  |  |  | - |  |  |  | 3,044 |  |  |  | 1,788 |
Trade payables |  |  | 15 |  |  |  | 655 |  |  |  | 1,133 |  |  |  | 975,493 |  |  |  | 968,950 |
Salaries and related charges |  |  | 16 |  |  |  | 141 |  |  |  | 141 |  |  |  | 226,279 |  |  |  | 297,654 |
Taxes payable |  |  | 17 |  |  |  | 60 |  |  |  | 24 |  |  |  | 119,965 |  |  |  | 116,322 |
Dividends payable |  |  | 20.g |  |  |  | 11,594 |  |  |  | 237,938 |  |  |  | 15,897 |  |  |  | 242,207 |
Income and social contribution taxes payable |  |  |  |  |  |  | - |  |  |  | 559 |  |  |  | 95,947 |  |  |  | 113,922 |
Subscription warrants – working capital |  |  | 3.a |  |  |  | 44,005 |  |  |  | - |  |  |  | 44,005 |  |  |  | - |
Post-employment benefits |  |  | 24.b |  |  |  | - |  |  |  | - |  |  |  | 11,922 |  |  |  | 11,922 |
Provision for assets retirement obligation |  |  | 18 |  |  |  | - |  |  |  | - |  |  |  | 4,416 |  |  |  | 3,449 |
Provision for tax, civil and labor risks |  |  | 23.a |  |  |  | - |  |  |  | - |  |  |  | 68,061 |  |  |  | 69,306 |
Other payables |  |  |  |  |  |  | 604 |  |  |  | 320 |  |  |  | 53,706 |  |  |  | 93,040 |
Deferred revenue |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | 21,612 |  |  |  | 17,731 |

Total current liabilities |  |  |  |  |  |  | 856,899 |  |  |  | 293,402 |  |  |  | 3,416,225 |  |  |  | 3,764,492 |
Non-current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans |  |  | 14 |  |  |  | - |  |  |  | - |  |  |  | 4,388,762 |  |  |  | 3,697,999 |
Debentures |  |  | 14.g |  |  |  | - |  |  |  | 799,197 |  |  |  | 1,398,719 |  |  |  | 1,399,035 |
Finance leases |  |  | 14.j |  |  |  | - |  |  |  | - |  |  |  | 43,016 |  |  |  | 42,603 |
Related parties |  |  | 8.a |  |  |  | - |  |  |  | - |  |  |  | 3,870 |  |  |  | 3,872 |
Subscription warrants – indemnification |  |  | 3.a |  |  |  | 115,099 |  |  |  | - |  |  |  | 115,099 |  |  |  | - |
Deferred income and social contribution taxes |  |  | 9.a |  |  |  | - |  |  |  | - |  |  |  | 84,407 |  |  |  | 101,499 |
Provision for tax, civil and labor risks |  |  | 23.a |  |  |  | 535 |  |  |  | 531 |  |  |  | 633,820 |  |  |  | 569,714 |
Post-employment benefits |  |  | 24.b |  |  |  | - |  |  |  | - |  |  |  | 103,173 |  |  |  | 99,374 |
Provision for assets retirement obligation |  |  | 18 |  |  |  | - |  |  |  | - |  |  |  | 65,031 |  |  |  | 66,212 |
Other payables |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 83,390 |  |  |  | 77,725 |
Deferred revenue |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | 9,394 |  |  |  | 9,134 |
Total non-current liabilities |  |  |  |  |  |  | 115,634 |  |  |  | 799,728 |  |  |  | 6,928,681 |  |  |  | 6,067,167 |
Shareholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share capital |  |  | 20.a |  |  |  | 3,838,686 |  |  |  | 3,696,773 |  |  |  | 3,838,686 |  |  |  | 3,696,773 |
Capital reserve |  |  | 20.c |  |  |  | 526,087 |  |  |  | 20,246 |  |  |  | 526,087 |  |  |  | 20,246 |
Revaluation reserve |  |  | 20.d |  |  |  | 6,043 |  |  |  | 6,107 |  |  |  | 6,043 |  |  |  | 6,107 |
Profit reserves |  |  | 20.e |  |  |  | 2,706,632 |  |  |  | 2,706,632 |  |  |  | 2,706,632 |  |  |  | 2,706,632 |
Treasury shares |  |  | 20.b |  |  |  | (111,521) |  |  |  | (114,885) |  |  |  | (111,521) |  |  |  | (114,885) |
Additional dividends to the minimum mandatory dividends |  |  | 20.g |  |  |  | - |  |  |  | 161,584 |  |  |  | - |  |  |  | 161,584 |
Retained earnings |  |  |  |  |  |  | 246,977 |  |  |  | - |  |  |  | 246,977 |  |  |  | - |
Valuation adjustments |  |  | 2.c;2.o; 20.f |  |  |  | 5,476 |  |  |  | 5,428 |  |  |  | 5,476 |  |  |  | 5,428 |
Cumulative translation adjustments |  |  | 2.r;20.f |  |  |  | 44,296 |  |  |  | 38,076 |  |  |  | 44,296 |  |  |  | 38,076 |
Shareholders’ equity attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders of the Company |  |  |  |  |  |  | 7,262,676 |  |  |  | 6,519,961 |  |  |  | 7,262,676 |  |  |  | 6,519,961 |
Non-controlling interests in subsidiaries |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 29,236 |  |  |  | 26,925 |
Total shareholders’ equity |  |  |  |  |  |  | 7,262,676 |  |  |  | 6,519,961 |  |  |  | 7,291,912 |  |  |  | 6,546,886 |
Total liabilities and shareholders’ equity |  |  |  |  |  |  | 8,235,209 |  |  |  | 7,613,091 |  |  |  | 17,636,818 |  |  |  | 16,378,545 |

The accompanying notes are an integral part of these interim financial information.
6

Ultrapar Participações S.A. and Subsidiaries
Income statements
For the period ended March 31, 2014 and 2013
(In thousands of Brazilian Reais, except earnings per share)

|  |  |  |  | Parent |  |  | Consolidated |
|  | Note |  |  | 03/31/2014 |  |  | 03/31/2013 |  |  | 03/31/2014 |  |  | 03/31/2013 |
Net revenue from sales and services |  |  | 25 |  |  |  | - |  |  |  | - |  |  |  | 15,946,864 |  |  |  | 13,599,968 |
Cost of products and services sold |  |  | 26 |  |  |  | - |  |  |  | - |  |  |  | (14,674,871 | ) |  |  | (12,536,382 | )
Gross profit |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 1,271,993 |  |  |  | 1,063,586 |
Operating income (expenses) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Selling and marketing |  |  | 26 |  |  |  | - |  |  |  | - |  |  |  | (504,836 | ) |  |  | (414,646 | )
General and administrative |  |  | 26 |  |  |  | (19,276 | ) |  |  | (2,854 | ) |  |  | (303,900 | ) |  |  | (243,713 | )
Income from disposal of assets |  |  | 28 |  |  |  | - |  |  |  | - |  |  |  | 7,028 |  |  |  | 5,534 |
Other operating income, net |  |  | 27 |  |  |  | - |  |  |  | 2,903 |  |  |  | 20,014 |  |  |  | 15,713 |
Operating income before financial income (expenses) and share of profit of subsidiaries and joint ventures |  |  |  |  |  |  | (19,276) |  |  |  | 49 |  |  |  | 490,299 |  |  |  | 426,474 |
Financial income |  |  | 29 |  |  |  | 29,996 |  |  |  | 20,541 |  |  |  | 90,426 |  |  |  | 52,937 |
Financial expenses |  |  | 29 |  |  |  | (30,683 | ) |  |  | (17,120 | ) |  |  | (205,195 | ) |  |  | (113,559 | )
Share of profit of subsidiaries, joint ventures and associates |  |  | 11 |  |  |  | 260,485 |  |  |  | 252,993 |  |  |  | (2,567 | ) |  |  | (1,959) |
Income before income and social contribution taxes |  |  |  |  |  |  | 240,522 |  |  |  | 256,463 |  |  |  | 372,963 |  |  |  | 363,893 |
Income and social contribution taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 9.b |  |  |  | - |  |  |  | (11,591 | ) |  |  | (152,875 | ) |  |  | (119,643 | )
Deferred |  |  | 9.b |  |  |  | 6,401 |  |  |  | (35) |  |  |  | 15,815 |  |  |  | (7,802 | )
Tax incentives |  |  | 9.b;9.c |  |  |  | - |  |  |  | - |  |  |  | 13,372 |  |  |  | 10,077 |
|  |  |  |  |  |  | 6,401 |  |  |  | (11,626 | ) |  |  | (123,688 | ) |  |  | (117,368 | )
Net income for the period |  |  |  |  |  |  | 246,923 |  |  |  | 244,837 |  |  |  | 249,275 |  |  |  | 246,525 |
Net income for the period attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shareholders of the Company |  |  |  |  |  |  | 246,923 |  |  |  | 244,837 |  |  |  | 246,923 |  |  |  | 244,837 |
Non-controlling interests in subsidiaries |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 2,352 |  |  |  | 1,688 |
Earnings per share (based on weighted average of shares outstanding) – R$ |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  | 30 |  |  |  | 0.4550 |  |  |  | 0.4585 |  |  |  | 0.4550 |  |  |  | 0.4585 |
Diluted |  |  | 30 |  |  |  | 0.4516 |  |  |  | 0.4564 |  |  |  | 0.4516 |  |  |  | 0.4564 |

The accompanying notes are an integral part of these interim financial information.
7

Ultrapar Participações S.A. and Subsidiaries
Statements of comprehensive income
For the period ended March 31, 2014 and 2013
(In thousands of Brazilian Reais)

|  |  |  |  | Parent |  |  | Consolidated |
|  | Note |  |  |  | 03/31/2014 |  |  |  | 03/31/2013 |  |  |  | 03/31/2014 |  |  |  | 03/31/2013 |
Net income for the period attributable to shareholders of the Company |  |  |  |  |  | 246,923 |  |  |  | 244,837 |  |  |  | 246,923 |  |  |  | 244,837 |
Net income for the period attributable to non-controlling interests in subsidiaries |  |  |  |  |  | - |  |  |  | - |  |  |  | 2,352 |  |  |  | 1,688 |
Net income for the period |  |  |  |  |  | 246,923 |  |  |  | 244,837 |  |  |  | 249,275 |  |  |  | 246,525 |
Items that are subsequently reclassified to profit or loss: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Valuation adjustments for financial instruments |  |  | 2.c;20.f |  |  |  | 48 |  |  |  | 19 |  |  |  | 48 |  |  |  | 19 |
Cumulative translation adjustments, net of hedge of net investments in foreign operation |  |  | 2.c; 2.r;20.f |  |  |  | 6,220 |  |  |  | (24,009) |  |  |  | 6,220 |  |  |  | (24,009) |
Total comprehensive income for the period |  |  |  |  |  |  | 253,191 |  |  |  | 220,847 |  |  |  | 255,543 |  |  |  | 222,535 |
Total comprehensive income for the period attributable to shareholders of the Company |  |  |  |  |  |  | 253,191 |  |  |  | 220,847 |  |  |  | 253,191 |  |  |  | 220,847 |
Total comprehensive income for the period attributable to non-controlling interest in subsidiaries |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 2,352 |  |  |  | 1,688 |

The accompanying notes are an integral part of these interim financial information.
8

Ultrapar Participações S.A. and Subsidiaries
Statements of changes in equity
For the period ended March 31, 2014 and 2013
(In thousands of Brazilian Reais, except dividends per share)

|  |  |  |  |  |  |  |  |  |  |  |  |  | Profit reserve |  |  | Cumulative other comprehensive income |  |  |  |  |  |  |  |  |  |  |  | Shareholders’ equity attributable to: |  |  |  |
|  | Note |  |  | Share capital |  |  | Capital reserve |  |  | Revaluation reserve on subsidiaries |  |  | Legal reserve |  |  | Investments statutory 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, 2012 |  |  |  |  |  | 3,696,773 |  |  |  | 20,246 |  |  |  | 6,713 |  |  |  | 273,842 |  |  |  | 617,641 |  |  |  | 1,333,066 |  |  |  | (12,615 | ) |  |  | 12,621 |  |  |  | - |  |  |  | (114,885 | ) |  |  | 147,195 |  |  |  | 5,980,597 |  |  |  | 25,481 |  |  |  | 6,006,078 |
Net income for the period |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 244,837 |  |  |  | - |  |  |  | - |  |  |  | 244,837 |  |  |  | 1,688 |  |  |  | 246,525 |
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Valuation adjustments for financial instruments |  |  | 2.c; 20.f |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 19 |  |  |  | - |  |  |  | 19 |
Currency translation of foreign subsidiaries |  |  | 2.r; 20.f |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (24,009 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (24,009 | ) |  |  | - |  |  |  | (24,009 | )
Total comprehensive income for the period |  |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 19 |  |  |  | (24,009 | ) |  |  | 244,837 |  |  |  | - |  |  |  | - |  |  |  | 220,847 |  |  |  | 1,688 |  |  |  | 222,535 |
Realization of revaluation reserve |  |  | 20.d |  |  |  | - |  |  |  | - |  |  |  | (65 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 65 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Income and social contribution taxes on realization of revaluation reserve of subsidiaries |  |  | 20.d |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (11 | ) |  |  | - |  |  |  | - |  |  |  | (11 | ) |  |  | - |  |  |  | (11 | )
Dividends attributable to non-controlling interests |  |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (12 | ) |  |  | (12 | )
Approval of additional dividends by the Shareholders’ Meeting |  |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (147,195 | ) |  |  | (147,195 | ) |  |  | - |  |  |  | (147,195 | )
Balance as of March 31, 2013 |  |  |  |  |  |  | 3,696,773 |  |  |  | 20,246 |  |  |  | 6,648 |  |  |  | 273,842 |  |  |  | 617,641 |  |  |  | 1,333,066 |  |  |  | (12,596 | ) |  |  | (11,388 | ) |  |  | 244,891 |  |  |  | (114,885 | ) |  |  | - |  |  |  | 6,054,238 |  |  |  | 27,157 |  |  |  | 6,081,395 |

9

|  |  |  |  |  |  |  |  |  |  | Profit reserve |  | Cumulative other comprehensive income |  |  |  |  |  |  |  | Shareholders’ equity attributable to: |  |
|  |  | Note |  | Share capital |  | Capital reserve |  | Revaluation reserve on subsidiaries |  | Legal reserve |  | Investments statutory 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, 2013 |  |  |  |  | 3,696,773 |  | 20,246 |  | 6,107 |  | 335,099 |  | 1,038,467 |  | 1,333,066 |  | 5,428 |  | 38,076 |  | - |  | (114,885) |  | 161,584 |  | 6,519,961 |  | 26,925 |  | 6,546,886
Net income for the period |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 246,923 |  | - |  | - |  | 246,923 |  | 2,352 |  | 249,275
Other comprehensive income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Valuation adjustments for financial instruments |  |  | 2.c; 20.f |  | - |  | - |  | - |  | - |  | - |  | - |  | 48 |  | - |  | - |  | - |  | - |  | 48 |  | - |  | 48
Currency translation of foreign subsidiaries hedge of net investments in foreign operation |  |  | 2.c; 2.r; 20.f |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 6,220 |  | - |  | - |  | - |  | 6,220 |  | - |  | 6,220
Total comprehensive income for the period |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | 48 |  | 6,220 |  | 246,923 |  | - |  | - |  | 253,191 |  | 2,352 |  | 255,543
Increase in share capital |  |  | 3.a; 20.a |  | 141,913 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 141,913 |  | - |  | 141,913
Capital surplus on subscription of shares |  |  | 3.a; 20.c |  | - |  | 498,812 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 498,812 |  | - |  | 498,812
Costs directly attributable to issuing new shares |  |  | 3.a; 20.c |  | - |  | (2,260) |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (2,260) |  | - |  | (2,260)
Sale of treasury shares |  |  |  |  | - |  | 9,289 |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | 3,364 |  | - |  | 12,653 |  | - |  | 12,653
Realization of revaluation reserve |  |  | 20.d |  | - |  | - |  | (64) |  | - |  | - |  | - |  | - |  | - |  | 64 |  | - |  | - |  | - |  | - |  | -
Income and social contribution taxes on realization of revaluation reserve of subsidiaries |  |  | 20.d |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (10) |  | - |  | - |  | (10) |  | - |  | (10)
Dividends attributable to non-controlling interests |  |  |  |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (41) |  | (41)
Approval of additional dividends by the Shareholders’ Meeting |  |  | 20.g |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | - |  | (161,584) |  | (161,584) |  | - |  | (161,584)
Balance as of March 31, 2014 |  |  |  |  | 3,838,686 |  | 526,087 |  | 6,043 |  | 335,099 |  | 1,038,467 |  | 1,333,066 |  | 5,476 |  | 44,296 |  | 246,977 |  | (111,521) |  | - |  | 7,262,676 |  | 29,236 |  | 7,291,912

The accompanying notes are an integral part of these interim financial information.
10

Ultrapar Participações S.A. and Subsidiaries
S tatements of cash flows - Indirect method
For the period ended March 31, 2014 and 2013
(In thousands of Brazilian Reais)

|  |  |  |  | Parent |  |  | Consolidated |
|  | Note |  |  | 03/31/2014 |  |  | 03/31/2013 |  |  | 03/31/2014 |  |  | 03/31/2013 |
Cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income for the period |  |  |  |  |  | 246,923 |  |  |  | 244,837 |  |  |  | 249,275 |  |  |  | 246,525 |
Adjustments to reconcile net income to cash provided by operating activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share of profit of subsidiaries, joint ventures and associates |  |  | 11 |  |  |  | (260,485 | ) |  |  | (252,993 | ) |  |  | 2,567 |  |  |  | 1,959 |
Depreciation and amortization |  |  | 12;13 |  |  |  | - |  |  |  | - |  |  |  | 214,283 |  |  |  | 189,442 |
PIS and COFINS credits on depreciation |  |  | 12;13 |  |  |  | - |  |  |  | - |  |  |  | 3,102 |  |  |  | 3,036 |
Assets retirement expenses |  |  | 18 |  |  |  | - |  |  |  | - |  |  |  | (998 | ) |  |  | (1,056) |
Interest, monetary and exchange variations |  |  |  |  |  |  | 31,244 |  |  |  | 15,557 |  |  |  | 149,447 |  |  |  | 52,663 |
Deferred income and social contribution taxes |  |  | 9.b |  |  |  | (6,401 | ) |  |  | 35 |  |  |  | (15,815 | ) |  |  | 7,802 |
Income from disposal of assets |  |  | 28 |  |  |  | - |  |  |  | - |  |  |  | (7,028 | ) |  |  | (5,534 | )
Others |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 982 |  |  |  | 2,956 |
Dividends received from subsidiaries |  |  |  |  |  |  | 516,910 |  |  |  | 4,455 |  |  |  | - |  |  |  | - |
(Increase) decrease in current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  | (59,564) |  |  |  | (164,872 | )
Inventories |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | (249,601 | ) |  |  | (281,878 | )
Recoverable taxes |  |  | 7 |  |  |  | 7,141 |  |  |  | 10,220 |  |  |  | (1,730) |  |  |  | 78,513 |
Other receivables |  |  |  |  |  |  | (370) |  |  |  | (1,382) |  |  |  | (18,531 | ) |  |  | (2,365) |
Prepaid expenses |  |  | 10 |  |  |  | 1,907 |  |  |  | - |  |  |  | (27,221 | ) |  |  | (30,835 | )
Increase (decrease) in current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade payables |  |  | 15 |  |  |  | (478 | ) |  |  | (116 | ) |  |  | (110,659 | ) |  |  | (37,636 | )
Salaries and related charges |  |  | 16 |  |  |  | - |  |  |  | (3 | ) |  |  | (87,914 | ) |  |  | (83,061 | )
Taxes payable |  |  | 17 |  |  |  | 36 |  |  |  | (304 | ) |  |  | 214 |  |  |  | (12,369 | )
Income and social contribution taxes |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 90,852 |  |  |  | 74,013 |
Provision for tax, civil and labor risks |  |  | 23.a |  |  |  | - |  |  |  | - |  |  |  | (1,245 | ) |  |  | 2,500 |
Other payables |  |  |  |  |  |  | 285 |  |  |  | - |  |  |  | (46,647 | ) |  |  | (32,034 | )
Deferred revenue |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | 1,281 |  |  |  | 430 |
(Increase) decrease in non-current assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables |  |  | 5 |  |  |  | - |  |  |  | - |  |  |  | (763) |  |  |  | 4,011 |
Recoverable taxes |  |  | 7 |  |  |  | (12,463) |  |  |  | (4,374) |  |  |  | (9,666) |  |  |  | (19,517 | )
Escrow deposits |  |  |  |  |  |  | - |  |  |  | 14 |  |  |  | (23,263 | ) |  |  | (9,420 | )
Other receivables |  |  |  |  |  |  | - |  |  |  | - |  |  |  | (661) |  |  |  | (860 | )
Prepaid expenses |  |  | 10 |  |  |  | - |  |  |  | - |  |  |  | 1,153 |  |  |  | 3,614 |
Increase (decrease) in non-current liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Post-employment benefits |  |  | 24.b |  |  |  | - |  |  |  | - |  |  |  | 3,799 |  |  |  | 3,525 |
Provision for tax, civil and labor risks |  |  | 23.a |  |  |  | 4 |  |  |  | 2 |  |  |  | 17,907 |  |  |  | (2,498 | )
Other payables |  |  |  |  |  |  | - |  |  |  | - |  |  |  | (1,431 | ) |  |  | (4,771 | )
Deferred revenue |  |  | 19 |  |  |  | - |  |  |  | - |  |  |  | 260 |  |  |  | (401 | )
Income and social contribution taxes paid |  |  |  |  |  |  | (559) |  |  |  | - |  |  |  | (108,827) |  |  |  | (78,026 | )
Net cash provided by operating activities |  |  |  |  |  |  | 523,694 |  |  |  | 15,948 |  |  |  | (36,442 | ) |  |  | (96,144 | )

The accompanying notes are an integral part of these interim financial information.
11

Ultrapar Participações S.A. and Subsidiaries Statements of cash flows - Indirect method For the period ended March 31, 2014 and 2013 (In thousands of Brazilian Reais)

|  |  |  |  |  | Parent |  |  | Consolidated |
|  | Note |  |  |  | 03/31/2014 |  |  |  | 03/31/2013 |  |  |  | 03/31/2014 |  |  |  | 03/31/2013 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial investments, net of redemptions |  |  |  |  |  | (1,013) |  |  |  | 149 |  |  |  | 129,667 |  |  |  | 254,679 |
Acquisition of subsidiaries, net |  |  |  |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (6,168 | )
Cash and cash equivalents of acquired subsidiaries |  |  | 3.a |  |  |  | - |  |  |  | - |  |  |  | 9,123 |  |  |  | - |
Acquisition of property, plant and equipment |  |  | 12 |  |  |  | - |  |  |  | - |  |  |  | (106,414) |  |  |  | (100,343 | )
Acquisition of intangible assets |  |  | 13 |  |  |  | - |  |  |  | - |  |  |  | (41,837) |  |  |  | (39,039 | )
Capital increase in subsidiaries |  |  | 11.a |  |  |  | (123,600) |  |  |  | - |  |  |  | - |  |  |  | - |
Capital increase in joint ventures |  |  | 11.b |  |  |  | - |  |  |  | - |  |  |  | (9,000) |  |  |  | (9,579 | )
Capital reduction to subsidiaries |  |  | 11.a |  |  |  | - |  |  |  | 700,000 |  |  |  | - |  |  |  | - |
Proceeds from disposal of assets |  |  | 28 |  |  |  | - |  |  |  | - |  |  |  | 19,223 |  |  |  | 17,040 |
Net cash provided by (used in) investing activities |  |  |  |  |  |  | (124,613) |  |  |  | 700,149 |  |  |  | 762 |  |  |  | 116,590 |
Cash flows from financing activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans and debentures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Borrowings |  |  | 14 |  |  |  | - |  |  |  | - |  |  |  | 935,978 |  |  |  | 111,799 |
Repayments |  |  | 14 |  |  |  | - |  |  |  | - |  |  |  | (253,557) |  |  |  | (164,823 | )
Interest paid |  |  | 14 |  |  |  | (75,489) |  |  |  | (66,665 | ) |  |  | (374,935) |  |  |  | (277,064 | )
Payment of financial lease |  |  | 14.j |  |  |  | - |  |  |  | - |  |  |  | (1,270) |  |  |  | (1,134 | )
Dividends paid |  |  |  |  |  |  | (387,928) |  |  |  | (352,498 | ) |  |  | (387,933) |  |  |  | (352,714 | )
Sale of treasury shares |  |  |  |  |  |  | 12,653 |  |  |  | - |  |  |  | - |  |  |  | - |
Costs directly attributable to issuing new shares |  |  | 20.c |  |  |  | (2,260) |  |  |  | - |  |  |  | (2,260) |  |  |  | - |
Related parties |  |  |  |  |  |  | 9,541 |  |  |  | (15,892) |  |  |  | - |  |  |  | - |
Net cash used in financing activities |  |  |  |  |  |  | (443,483) |  |  |  | (435,055 | ) |  |  | (83,977) |  |  |  | (683,936 | )
Effect of exchange rate changes on cash and cash equivalents in foreign currency |  |  |  |  |  |  | - |  |  |  | - |  |  |  | (171) |  |  |  | 59 |
Increase (decrease) in cash and cash equivalents |  |  |  |  |  |  | (44,402) |  |  |  | 281,042 |  |  |  | (119,828) |  |  |  | (663,431) |

Cash and cash equivalents at the beginning of the period |  |  | 4 |  |  | 110,278 |  |  |  | 76,981 |  |  |  | 2,276,069 |  |  | 2,021,114 |
Cash and cash equivalents at the end of the period |  |  | 4 |  |  | 65,876 |  |  |  | 358,023 |  |  |  | 2,156,241 |  |  | 1,357,683 |
Additional information - transactions that not affect cash and cash equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Extrafarma acquisition – capital increase and subscription warrants |  |  | 3.a |  |  | 791,427 |  |  |  | - |  |  |  | 791,427 |  |  | - |
Extrafarma acquisition – gross debt assumed on close date |  |  | 3.a |  |  | 207,911 |  |  |  | - |  |  |  | 207,911 |  |  | - |

The accompanying notes are an integral part of these interim financial information.
12

Ultrapar Participações S.A. and Subsidiaries
Statements of value added
For the period ended March 31, 2014 and 2013
(In thousands of Brazilian Reais, except percentages)

|  |  |  |  | Parent |  |  |  | Consolidated
|  | Note |  |  | 03/31/2014 |  | % |  | 03/31/2013 |  | % |  | 03/31/2014 |  | % |  | 03/31/2013 |  | %
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gross revenue from sales and services, except rents and royalties |  | 25 |  |  |  | - |  |  |  |  | - |  |  |  |  | 16,400,277 |  |  |  |  | 13,996,250 |  |
Rebates, discounts and returns |  | 25 |  |  |  | - |  |  |  |  | - |  |  |  |  | (83,590 | ) |  |  |  | (72,831 | ) |
Allowance for doubtful accounts - Reversal (allowance) |  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (1,270 | ) |  |  |  | (501 | ) |
Income from disposal of assets |  | 28 |  |  |  | - |  |  |  |  | - |  |  |  |  | 7,028 |  |  |  |  | 5,534 |  |
|  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | 16,322,445 |  |  |  |  | 13,928,452 |  |
Materials purchased from third parties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Raw materials used |  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (850,706 | ) |  |  |  | (717,804 | ) |
Cost of goods, products and services sold |  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (13,768,141 | ) |  |  |  | (11,794,341 | ) |
Third-party materials, energy, services and others |  |  |  |  |  | (22,833 | ) |  |  |  | (1,676 | ) |  |  |  | (457,564 | ) |  |  |  | (380,750 | ) |
Reversal of impairment losses |  |  |  |  |  | 4,773 |  |  |  |  | 2,903 |  |  |  |  | (538 | ) |  |  |  | 3,112 |  |
|  |  |  |  |  | (18,060 | ) |  |  |  | 1,227 |  |  |  |  | (15,076,949 | ) |  |  |  | (12,889,783 | ) |
Gross value added |  |  |  |  |  | (18,060 | ) |  |  |  | 1,227 |  |  |  |  | 1,245,496 |  |  |  |  | 1,038,669 |  |
Deductions |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (214,283 | ) |  |  |  | (189,442 | ) |
PIS and COFINS credits on depreciation |  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (3,102 | ) |  |  |  | (3,036 | ) |
|  |  |  |  |  | - |  |  |  |  | - |  |  |  |  | (217,385 | ) |  |  |  | (192,478 | ) |
Net value added by the Company |  |  |  |  |  | (18,060 | ) |  |  |  | 1,227 |  |  |  |  | 1,028,111 |  |  |  |  | 846,191 |  |
Value added received in transfer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share of profit of subsidiaries, joint-ventures and associates |  | 11 |  |  |  | 260,485 |  |  |  |  | 252,993 |  |  |  |  | (2,567 | ) |  |  |  | (1,959 | ) |
Rents and royalties |  | 25 |  |  |  | - |  |  |  |  | - |  |  |  |  | 26,126 |  |  |  |  | 20,115 |  |
Financial income |  | 29 |  |  |  | 29,996 |  |  |  |  | 20,541 |  |  |  |  | 90,426 |  |  |  |  | 52,937 |  |
|  |  |  |  |  | 290,481 |  |  |  |  | 273,534 |  |  |  |  | 113,985 |  |  |  |  | 71,093 |  |
Total value added available for distribution |  |  |  |  |  | 272,421 |  |  |  |  | 274,761 |  |  |  |  | 1,142,096 |  |  |  |  | 917,284 |  |
Distribution of value added |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Labor and benefits |  |  |  |  |  | 1,024 |  | - |  |  | 922 |  | - |  |  | 345,737 |  | 30 |  |  | 279,793 |  | 31
Taxes, fees and contributions |  |  |  |  |  | (6,920 | ) | (3) |  |  | 13,244 |  | 5 |  |  | 314,314 |  | 28 |  |  | 259,710 |  | 28
Financial expenses and rents |  |  |  |  |  | 31,394 |  | 12 |  |  | 15,688 |  | 6 |  |  | 232,770 |  | 20 |  |  | 131,256 |  | 14
Retained earnings |  |  |  |  |  | 246,923 |  | 91 |  |  | 244,837 |  | 89 |  |  | 249,275 |  | 22 |  |  | 246,525 |  | 27
Value added distributed |  |  |  |  |  | 272,421 |  | 100 |  |  | 274,761 |  | 100 |  |  | 1,142,096 |  | 100 |  |  | 917,284 |  | 100

The accompanying notes are an integral part of these interim financial information.
13

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

1. | 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”), and, as from January 31, 2014, trading of pharmaceutical, hygiene, beauty and skincare products, through Imifarma Produtos Farmacêuticos e Cosméticos S.A. (“Extrafarma”) – see Note 3.a).

2. | Summary of significant accounting policies

The Company’s consolidated interim financial information were prepared in accordance with International Accounting Standard (“IAS”) 34 - Interim Financial Reporting issued by the International Accounting Standards Board (“IASB”), in accordance with CPC 21 (R1) - Interim Financial Reporting issued by the Accounting Pronouncements Committee (“CPC”) and presented in accordance with standards established by the Brazilian Securities and Exchange Commission (“CVM”).
The Company’s individual interim financial information were prepared in accordance with CPC 21 (R1) and presented in accordance with standards established by the CVM. The investments in subsidiaries, associates and joint ventures are measured through the equity method of accounting, which, for purposes of the International Financial Reporting Standards (“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 is measured at the fair value of the consideration received or receivable, net of sales returns, discounts and other deductions, if applicable.
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, LPG and pharmaceutical products), 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.
14

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 cumulative other comprehensive income 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 - fair value hedge: 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.
• | Hedge accounting - hedge of net investments in foreign operation: derivative financial instrument used to hedge exposure on net investments in foreign subsidiaries due to the fact that the local functional currency is different from the functional currency of the Company. The portion of the gain or loss on the hedging instrument that is determined to be effective referring to the exchange rate effect is recognized directly in equity in accumulated other comprehensive income as cumulative translation adjustments, while the ineffective portion and the operating costs are recognized in profit or loss. The gain or loss on the hedging instrument that has been recognized directly in accumulated other comprehensive income shall be recognized in income upon disposal of the foreign operation.

For further detail on financial instruments of the Company and its subsidiaries, see Notes 4, 14, and 22.
15

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 joint 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.
16

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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.j).
• 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.
17

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 amortized 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 amortized 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.k).
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 reporting period. The current rates in Brazil are 25% for income tax and 9% for social contribution on net income tax. 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.
18

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 cumulative other comprehensive income and presented in the shareholders’ equity as cumulative translation adjustments as of March 31, 2014 was a gain of R$ 44,296 (gain of R$ 38,076 as of December 31, 2013).
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
Oxiteno Uruguay S.A. | U.S. Dollar | Uruguay

According to IAS 29, Venezuela is classified as a hyperinflationary economy. As a result, the financial statements of Oxiteno Andina, C.A. (“Oxiteno Andina”) were adjusted by the Venezuelan Consumer Price Index.
The subsidiary Oxiteno Uruguay S.A. (“Oxiteno Uruguay”) 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 extension 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 loss recognized in income for the three-month period ended March 31, 2014 amounted to R$ 1,872 (R$ 637 loss for the three-month period ended March 31, 2013).
19

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 (Notes 5 and 22), the determination of provisions for losses of inventories (Note 6), the determination of deferred income taxes amounts (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.
The fair value less costs of disposal is determined by the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date, net of costs of removing the asset, and direct incremental costs to bring an asset into condition for its sale, legal costs and taxes.
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 (see Note 13.i).

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). 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 balance of these adjustment to present value totalized R$ 459 as of March 31, 2014 (R$ 354 as of December 31, 2013).
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.
20

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

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.

w. | Adoption of the pronouncements issued by CPC and IFRS

Certain standards, amendments and interpretations to IFRS issued by IASB that have been issued but are not yet effective were not applied as of March 31, 2014, as follows:

|  | Effective date
• Amendments to IAS 32 – Financial instruments: presentation: provides clarifications on the application of the offsetting rules. |  | 2014
• IFRS 9 (and corresponding 2010 and 2013 amendments): – Financial instruments’ classification and measurement: includes new requirements for the classification and measurement of financial assets and liabilities, derecognition requirements, new impairment methodology for financial instruments and new hedge accounting guidance (as issued in November, 2013). |  | 2015(*)

(*) the amendments issued by the IASB in November, 2013 removed the January 1st, 2015 mandatory effective date.
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. The Company is assessing the potential effects of these standards.

x. | Authorization for issuance of the interim financial information

These interim financial information were authorized for issue by the Board of Directors on May 14, 2014.
21

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

3. | 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.
Consolidation of a subsidiary begins when the parent company obtains direct or indirect control over of a company and ceases when the parent company loses control of a company. Income and expenses of a subsidiary acquired are included in the consolidated income statement and other comprehensive income from the date the parent company gains the control. Income and expenses of a subsidiary, in which the parent company loses control, are included in the consolidated income statement and other comprehensive income until the date the parent company loses control.
When necessary, adjustments are made to the interim financial information of subsidiaries to bring their accounting policies into line with the Company’s accounting policies.
22

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
The consolidated interim financial information includes the following direct and indirect subsidiaries:

|  | % interest in the share |  |  |  |
|  |  | 03/31/2014 |  | 12/31/2013 |  |
|  |  | Control |  | Control |  |
| Location |  | Direct control |  |  | Indirect control |  | Direct control |  |  | Indirect control |  |
Imifarma Produtos Farmacêuticos e Cosméticos S.A. | Brazil |  |  | 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 Participações 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 |  |  |
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 |  |  |
Oxiteno Uruguay 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 |  |  |
Ultracargo - Operações Logísticas e Participações Ltda. | Brazil |  |  | 100 |  |  |  | - |  |  | 100 |  |  |  | - |  |  |
Terminal Químico de Aratu S.A. – Tequimar | Brazil |  |  | - |  |  |  | 99 |  |  | - |  |  |  | 99 |  |  |
SERMA - Ass. dos usuários equip. proc. de dados | Brazil |  |  | - |  |  |  | 100 |  |  | - |  |  |  | 100 |  |  |

The percentages in the table above are rounded.
23

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
a) Business combination – acquisition of Extrafarma
On January 31, 2014 the merger of all shares issued by Extrafarma into Ultrapar was approved at the Extraordinary Shareholders’ Meetings of Ultrapar and Extrafarma. After the merger of shares, Extrafarma became a wholly-owned subsidiary of Ultrapar and the shareholders of Extrafarma became long-term shareholders of Ultrapar. The association with Extrafarma marks Ultrapar’s entry into Brazil's retail pharmacy sector, making it the third distribution and specialty retail business of the Company.
As a result, 12,021,100 new ordinary, nominative, book-entry shares with no par value of the Company were issued on January 31, 2014, increasing capital share by R$ 141,913, resulting in total capital share of R$ 3,838,686 represented by 556,405,096 shares and increasing capital reserves by R$ 498,812, totaling an increase in equity in the amount of R$ 640,725. This transaction did not affect the Company’ cash flow.
In addition, the Company issued subscription warrants that, if exercised, may lead to the issuance of up to 4,007,031 shares in the future, broken into 801,409 shares related to subscription warrants – working capital and 3,205,622 shares related to subscription warrants – indemnification. The number of shares of the subscription warrants – indemnification is adjusted according to the changes in the amounts of provision for tax, civil and labor risks and contingent liabilities related to the period previous to January 31, 2014. The subscription warrants – working capital and subscription warrants – indemnification are valued based on the share price of Ultrapar (UGPA3) on the reporting date. On March 31, 2014 the subscription warrants totaled:

|  | Number of shares |  | R$ |  |
Subscription warrants – working capital |  | 801,409 |  | 44,005 |  |
Subscription warrants – indemnification |  | 2,360,361 |  | 115,099 |  |
Total |  | 3,161,770 |  | 159,104 |  |

The temporary purchase price in the amount of R$ 791,427, subject to the customary final adjustments of working capital, will be allocated among the identified assets acquired and liabilities assumed, measured at fair value. The Company is measuring the open balance, fair value of assets and liabilities and, consequently, the goodwill. The purchase price allocation is being determined and its conclusion is estimated for the second semester of 2014. During the process of identification of assets and liabilities, intangible assets which are not recognized in the acquired entity’s books will also be taken into account. The temporary goodwill is R$ 836,182.
24

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below summarizes the temporary assets acquired and liabilities assumed as of the acquisition date, subject to the customary final adjustments of working capital and purchase price allocation:

Current assets |  |  |  |  |  | Current liabilities |  |  |  |
Cash and cash equivalents |  |  | 9,123 |  |  | Loans (1) |  |  | 179,818 |
Trade receivables |  |  | 68,398 |  |  | Trade payables |  |  | 117,202 |
Inventories |  |  | 164,590 |  |  | Salaries and related charges |  |  | 16,539 |
Recoverable taxes |  |  | 12,961 |  |  | Income and social contribution taxes payable |  |  | 3,429 |
Other |  |  | 5,110 |  |  | Deferred revenue |  |  | 2,599 |
|  |  | 260,182 |  |  | Other |  |  | 6,316 |
|  |  |  |  |  |  |  |  | 325,903 |
Non-current assets |  |  |  |  |  | Non-current liabilities |  |  |  |
Property, plant and equipment |  |  | 46,832 |  |  | Loans (1) |  |  | 28,093 |
Intangible assets |  |  | 13,723 |  |  | Provision for tax, civil and labor risks |  |  | 46,199 |
Deferred income and social contribution taxes |  |  | 40,516 |  |  | Other |  |  | 7,096 |
Escrow deposits |  |  | 1,283 |  |  |  |  |  | 81,388 |
Temporary goodwill |  |  | 836,182 |  |  |  |  |  |  |
|  |  | 938,536 |  |  | Total liabilities assumed |  |  | 407,291 |
Total assets acquired and temporary goodwill |  |  | 1,198,718 |  |  | Consideration transferred |  |  | 791,427 |

(1) The gross debt assumed on closing date amounted to R$ 207,911.
For further details on property, plant and equipment and intangibles acquired, see Notes 12 and 13 respectively.
For further details see Material Notice released on September 30, 2013, Material Notice, Protocol and Justification of merger of shares and Management’s proposal to Extraordinary Shareholders´ Meeting and its Annex released on December 19, 2013 and Market Announcement released on January 31, 2014.
25

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

4. | 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 repurchase agreement 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 (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$ 3,294,205 at March 31, 2014 (R$ 3,543,700 at December 31, 2013) 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.

|  | Parent |  |  |  | Consolidated |
|  | 03/31/2014 |  | 12/31/2013 |  |  |  | 03/31/2014 |  | 12/31/2013 |
Cash and bank deposits |  |  |  |  |  |  |  |  |  |  |
In local currency |  |  | 136 |  |  | 153 |  |  |  |  | 189,576 |  |  | 136,532 |
In foreign currency |  |  | - |  |  | - |  |  |  |  | 70,001 |  |  | 88,394 |
Financial investments considered cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
In local currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities |  |  | 65,740 |  |  | 110,125 |  |  |  |  | 1,893,942 |  |  | 2,051,143 |
In foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities |  |  | - |  |  | - |  |  |  |  | 2,722 |  |  | - |
Total cash and cash equivalents |  |  | 65,876 |  |  | 110,278 |  |  |  |  | 2,156,241 |  |  | 2,276,069 |

26

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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:

|  | Parent |  |  | Consolidated |
|  | 03/31/2014 |  |  | 12/31/2013 |  |  | 03/31/2014 |  |  | 12/31/2013 |
Financial investments |  |  |  |  |  |  |  |  |  |  |  |
In local currency |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities and funds |  |  | 1,277 |  |  |  | 264 |  |  |  | 668,936 |  |  |  | 747,256 |
In foreign currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities and funds |  |  | - |  |  |  | - |  |  |  | 375,500 |  |  |  | 368,781 |
Currency and interest rate hedging instruments (a) |  |  | - |  |  |  | - |  |  |  | 95,528 |  |  |  | 151,594 |
Total financial investments |  |  | 1,277 |  |  |  | 264 |  |  |  | 1,137,964 |  |  |  | 1,267,631 |
Current |  |  | 1,277 |  |  |  | 264 |  |  |  | 1,028,073 |  |  |  | 1,149,132 |
Non-current |  |  | - |  |  |  | - |  |  |  | 109,891 |  |  |  | 118,499 |

(a) Accumulated gains, net of income tax (see Note 22).
27

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

5. | Trade receivables (Consolidated)

The composition of trade receivables is as follows:

|  | 03/31/2014 |  |  | 12/31/2013 |
Domestic customers |  |  | 2,292,587 |  |  |  | 2,159,355 |
Reseller financing - Ipiranga |  |  | 270,145 |  |  |  | 276,044 |
Foreign customers |  |  | 172,002 |  |  |  | 157,696 |
(-) Allowance for doubtful accounts |  |  | (159,056 | ) |  |  | (147,080 | )
Total |  |  | 2,575,678 |  |  |  | 2,446,015 |
Current |  |  | 2,450,437 |  |  |  | 2,321,537 |
Non-current |  |  | 125,241 |  |  |  | 124,478 |

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 of allowance for doubtful accounts, is as follows:

|  |  |  |  |  |  |  | Past due
|  | Total |  |  | Current |  |  | less than 30 days |  |  | 31-60 days |  |  | 61-90 days |  |  | 91-180 days |  |  | more than 180 days |
03/31/2014 |  |  | 2,734,734 |  |  |  | 2,440,242 |  |  |  | 67,299 |  |  |  | 12,170 |  |  |  | 15,618 |  |  |  | 15,180 |  |  |  | 184,225 |
12/31/2013 |  |  | 2,593,095 |  |  |  | 2,282,310 |  |  |  | 104,544 |  |  |  | 12,906 |  |  |  | 6,428 |  |  |  | 7,786 |  |  |  | 179,121 |

Movements in the allowance for doubtful accounts are as follows:

Balance at December 31, 2013 |  |  | 147,080 |
Initial balance of Extrafarma (January 31, 2014) |  |  | 5,499 |
Additions |  |  | 7,247 |
Write-offs |  |  | (770) |
Balance at March 31, 2014 |  |  | 159,056 |

28

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

6. | Inventories (Consolidated)

The composition of inventories is as follows:

|  | 03/31/2014 |  | 12/31/2013 |
|  | Cost |  |  | Provision for losses |  |  | Net balance |  |  | Cost |  |  | Provision for losses |  |  | Net balance |
Finished goods |  |  | 358,783 |  |  |  | (7,178 | ) |  |  | 351,605 |  |  |  | 318,451 |  |  |  | (7,100 | ) |  |  | 311,351 |
Work in process |  |  | 1,929 |  |  |  | - |  |  |  | 1,929 |  |  |  | 2,626 |  |  |  | - |  |  |  | 2,626 |
Raw materials |  |  | 184,571 |  |  |  | (171 | ) |  |  | 184,400 |  |  |  | 209,735 |  |  |  | (169 | ) |  |  | 209,566 |
Liquefied petroleum gas (LPG) |  |  | 35,761 |  |  |  | (5,761 | ) |  |  | 30,000 |  |  |  | 41,678 |  |  |  | (5,761 | ) |  |  | 35,917 |
Fuels, lubricants and greases |  |  | 1,018,515 |  |  |  | (865 | ) |  |  | 1,017,650 |  |  |  | 817,016 |  |  |  | (758 | ) |  |  | 816,258 |
Consumable materials and bottles for resale |  |  | 71,173 |  |  |  | (1,634 | ) |  |  | 69,539 |  |  |  | 64,465 |  |  |  | (1,450 | ) |  |  | 63,015 |
Pharmaceutical, hygiene and beauty products |  |  | 216,635 |  |  |  | (3,938 | ) |  |  | 212,697 |  |  |  | - |  |  |  | - |  |  |  | - |
Advances to suppliers |  |  | 114,935 |  |  |  | - |  |  |  | 114,935 |  |  |  | 128,618 |  |  |  | - |  |  |  | 128,618 |
Properties for resale |  |  | 25,162 |  |  |  | - |  |  |  | 25,162 |  |  |  | 25,162 |  |  |  | - |  |  |  | 25,162 |
|  |  | 2,027,464 |  |  |  | (19,547 | ) |  |  | 2,007,917 |  |  |  | 1,607,751 |  |  |  | (15,238 | ) |  |  | 1,592,513 |

Movements in the provision for losses are as follows:

Balance at December 31, 2013 |  |  | 15,238 |
Initial balance of Extrafarma (January 31, 2014) |  |  | 3,164 |
Recoveries of realizable value adjustment |  |  | 1,184 |
Reversals of obsolescence and other losses |  |  | (39) |
Balance at March 31, 2014 |  |  | 19,547 |

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

|  | 03/31/2014 |  |  | 12/31/2013 |
Realizable value adjustment |  |  | 10,681 |  |  |  | 9,497 |
Obsolescence and other losses |  |  | 8,866 |  |  |  | 5,741 |
Total |  |  | 19,547 |  |  |  | 15,238 |

29

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

7. | 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.

|  | Parent |  |  |  | Consolidated |  |  |
|  | 03/31/2014 |  |  | 12/31/2013 |  |  |  | 03/31/2014 |  |  | 12/31/2013 |  |  |
IRPJ and CSLL |  | 53,853 |  |  | 48,531 |  |  |  | 155,134 |  |  | 160,590 |  |  |
ICMS |  | - |  |  | - |  |  |  | 235,665 |  |  | 210,045 |  |  |
Provision for ICMS losses (1) |  | - |  |  | - |  |  |  | (85,358 | ) |  | (65,180 | ) |  |
PIS and COFINS |  | - |  |  | - |  |  |  | 181,561 |  |  | 156,707 |  |  |
Value-Added Tax (IVA) of subsidiaries Oxiteno Mexico, Oxiteno Andina and Oxiteno Uruguay |  | - |  |  | - |  |  |  | 44,015 |  |  | 43,592 |  |  |
Excise tax - IPI |  | - |  |  | - |  |  |  | 4,630 |  |  | 3,997 |  |  |
Other |  | - |  |  | - |  |  |  | 6,050 |  |  | 7,589 |  |  |
Total |  | 53,853 |  |  | 48,531 |  |  |  | 541,697 |  |  | 517,340 |  |  |
Current |  | 19,926 |  |  | 27,067 |  |  |  | 494,666 |  |  | 479,975 |  |  |
Non-current |  | 33,927 |  |  | 21,464 |  |  |  | 47,031 |  |  | 37,365 |  |  |

(1) 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, 2013 |  |  | 65,180 |
Initial balance of Extrafarma (January 31, 2014) |  |  | 20,888 |
Additions |  |  | 3,669 |
Write-offs |  |  | (4,379 | )
Balance at March 31, 2014 |  |  | 85,358 |

30

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

8. | Related parties

a. | Related parties

· · | Parent company

|  | Assets |  |  | Financial income |
|  | Trade receivables |  |  | Debentures |  |  | Total |  |  |  |
Companhia Ultragaz S.A. |  |  | 5,716 |  |  |  | - |  |  |  | 5,716 |  |  |  | - |
Oxiteno S.A. Indústria e Comércio |  |  | 6,937 |  |  |  | - |  |  |  | 6,937 |  |  |  | - |
Ipiranga Produtos de Petróleo S.A. |  |  | - |  |  |  | 750,000 |  |  |  | 750,000 |  |  |  | 28,086 |
Total as of March 31, 2014 |  |  | 12,653 |  |  |  | 750,000 |  |  |  | 762,653 |  |  |  | 28,086 |

|  | Assets Debentures |  |  | Financial income |
Ipiranga Produtos de Petróleo S.A. |  |  | 772,194 |  |  |  | 18,696 |
Total as of December 31, 2013 |  |  | 772,194 |  |  |  |  |
Total as of March 31, 2013 |  |  |  |  |  |  | 18,696 |

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.
31

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

· · | Consolidated

Balances and transactions between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. The balances and transactions between the Company and its subsidiaries with other related parties are disclosed below:

|  | Loans |  |  | Commercial transactions |
|  | Assets |  |  | Liabilities |  |  | Receivables 1 |  |  | Payables 1 |
Oxicap Indústria de Gases Ltda. |  |  | 10,368 |  |  |  | - |  |  |  | - |  |  |  | 1,089 |
Química da Bahia Indústria e Comércio S.A. |  |  | - |  |  |  | 3,044 |  |  |  | - |  |  |  | - |
Refinaria de Petróleo Riograndense S.A. |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 484 |
ConectCar Soluções de Mobilidade Eletrônica S.A. |  |  | - |  |  |  | - |  |  |  | 765 |  |  |  | 236 |
Others |  |  | 490 |  |  |  | 826 |  |  |  | - |  |  |  | - |
Total as of March 31, 2014 |  |  | 10,858 |  |  |  | 3,870 |  |  |  | 765 |  |  |  | 1,809 |

|  | Loans |  |  | Commercial transactions |
|  | Assets |  |  | Liabilities |  |  | Receivables 1 |  |  | Payables 1 |
Oxicap Indústria de Gases Ltda. |  |  | 10,368 |  |  |  | - |  |  |  | - |  |  |  | 1,069 |
Química da Bahia Indústria e Comércio S.A. |  |  | - |  |  |  | 3,046 |  |  |  | - |  |  |  | - |
Refinaria de Petróleo Riograndense S.A. |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,051 |
ConectCar Soluções de Mobilidade Eletrônica S.A. |  |  | - |  |  |  | - |  |  |  | 7,952 |  |  |  | 1,210 |
Others |  |  | 490 |  |  |  | 826 |  |  |  | - |  |  |  | - |
Total as of December 31, 2013 |  |  | 10,858 |  |  |  | 3,872 |  |  |  | 7,952 |  |  |  | 3,330 |

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

|  | Commercial transactions |
|  | Sales |  |  | Purchases |
Oxicap Indústria de Gases Ltda. |  |  | 2 |  |  |  | 3,154 |
Refinaria de Petróleo Riograndense S.A. |  |  | - |  |  |  | 7,500 |
ConectCar Soluções de Mobilidade Eletrônica S.A. |  |  | 2,359 |  |  |  | - |
Total as of March 31, 2014 |  |  | 2,361 |  |  |  | 10,654 |

|  | Commercial transactions |
|  | Sales |  |  | Purchases |
Oxicap Indústria de Gases Ltda. |  |  | 2 |  |  |  | 3,205 |
Refinaria de Petróleo Riograndense S.A. |  |  | - |  |  |  | 7,680 |
ConectCar Soluções de Mobilidade Eletrônica S.A. |  |  | 2,327 |  |  |  | - |
Total as of March 31, 2013 |  |  | 2,329 |  |  |  | 10,885 |

32

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
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.l). Intercompany loans are contracted in light of temporary cash surpluses or deficits of the Company, its subsidiaries and its associates.

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. In addition, the chief executive officer is entitled to additional long term variable compensation relating to the Company’s shares’ performance between 2013 and 2018, reflecting the target of more than doubling the share value of the Company in 5 years. Further details about the Deferred Stock Plan are contained in Note 8.c) and about post-employment benefits in Note 24.b). As of March 31, 2014, the Company and its subsidiaries recognized expenses for compensation of its key executives (Company’s directors and executive officers) in the amount of R$ 9,820 (R$ 7,768 as of March 31, 2013). Out of this total, R$ 7,490 relates to short-term compensation (R$ 6,452 as of March 31, 2013), R$ 1,631 to stock compensation (R$ 947 as of March 31, 2013), R$ 416 to post-employment benefits (R$ 369 as of March 31, 2013) and R$ 283 to long-term compensation.

33

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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. 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 and the amounts are amortized between five and ten years from the initial concession. The table below summarizes shares provided to the Company and its subsidiaries’ management:

Grant date |  | Balance of number of shares granted |  | Vesting period |  | Market price of shares on the grant date (in R$ per share) |  |  | Total compensation costs, including taxes |  |  | Accumulated recognized compensation costs |  |  | Accumulated unrecognized compensation costs |
March 5, 2014 |  |  | 83,400 |  | 2019 to 2021 |  |  | 52.15 |  |  |  | 5,999 |  |  |  | (85 | ) |  |  | 5,914 |
February 3, 2014 |  |  | 150,000 |  | 2018 to 2020 |  |  | 55.36 |  |  |  | 11,454 |  |  |  | (392 | ) |  |  | 11,062 |
November 7, 2012 |  |  | 350,000 |  | 2017 to 2019 |  |  | 42.90 |  |  |  | 20,710 |  |  |  | (4,983 | ) |  |  | 15,727 |
December 14, 2011 |  |  | 120,000 |  | 2016 to 2018 |  |  | 31.85 |  |  |  | 5,272 |  |  |  | (2,089 | ) |  |  | 3,183 |
November 10, 2010 |  |  | 260,000 |  | 2015 to 2017 |  |  | 26.78 |  |  |  | 9,602 |  |  |  | (5,572 | ) |  |  | 4,030 |
December 16, 2009 |  |  | 250,000 |  | 2014 to 2016 |  |  | 20.75 |  |  |  | 7,155 |  |  |  | (5,266 | ) |  |  | 1,889 |
October 8, 2008 |  |  | 384,008 |  | 2013 to 2015 |  |  | 9.99 |  |  |  | 8,090 |  |  |  | (7,303 | ) |  |  | 787 |
December 12, 2007 |  |  | 53,320 |  | 2012 to 2014 |  |  | 16.17 |  |  |  | 3,570 |  |  |  | (3,456 | ) |  |  | 114 |
November 9, 2006 |  |  | 207,200 |  | 2016 |  |  | 11.62 |  |  |  | 3,322 |  |  |  | (2,464 | ) |  |  | 858 |
December 14, 2005 |  |  | 93,600 |  | 2015 |  |  | 8.21 |  |  |  | 1,060 |  |  |  | (883 | ) |  |  | 177 |
October 4, 2004 |  |  | 167,900 |  | 2014 |  |  | 10.20 |  |  |  | 2,361 |  |  |  | (2,243 | ) |  |  | 118 |
|  |  | 2,119,428 |  |  |  |  |  |  |  |  | 78,595 |  |  |  | (34.736 | ) |  |  | 43,859 |

The amortization as of March 31, 2014 in the amount of R$ 2,707 (R$ 2,474 as of December 31, 2013) was recognized as a general and administrative expense.
The table below shows the movement in the number of granted shares:

Balance as of December 31, 2013 |  |  | 1,886,028 |
Shares granted on February 3, 2014 |  |  | 150,000 |
Shares granted on March 5, 2014 |  |  | 83,400 |
Balance as of March 31, 2014 |  |  | 2,119,428 |

34

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

9. | 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:

|  | Parent | Consolidated |  |
|  | 03/31/2014 |  |  | 12/31/2013 |  | 03/31/2014 |  |  | 12/31/2013 |  |
Assets - Deferred income and social contribution taxes on: |  |  |  |  |  |  |  |  |  |  |  |
Provision for impairment of assets |  |  | - |  |  |  | - |  |  | 50,302 |  |  |  | 32,130 |  |
Provisions for tax, civil and labor risks |  |  | 11 |  |  |  | 10 |  |  | 127,351 |  |  |  | 111,395 |  |
Provision for post-employment benefit |  |  | - |  |  |  | - |  |  | 45,035 |  |  |  | 43,753 |  |
Provision for differences between cash and accrual basis |  |  | - |  |  |  | - |  |  | 2,427 |  |  |  | - |  |
Goodwill |  |  | - |  |  |  | - |  |  | 46,973 |  |  |  | 57,334 |  |
Provision for assets retirement obligation |  |  | - |  |  |  | - |  |  | 13,733 |  |  |  | 13,760 |  |
Other provisions |  |  | 3,149 |  |  |  | 385 |  |  | 83,462 |  |  |  | 72,153 |  |
Tax losses and negative basis for social contribution carryforwards (d) |  |  | 3,636 |  |  |  | - |  |  | 45,514 |  |  |  | 45,607 |  |
Total |  |  | 6,796 |  |  |  | 395 |  |  | 414,797 |  |  |  | 376,132 |  |
Liabilities - Deferred income and social contribution taxes on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revaluation of property, plant and equipment |  |  | - |  |  |  | - |  |  | 3,099 |  |  |  | 3,130 |  |
Lease |  |  | - |  |  |  | - |  |  | 5,500 |  |  |  | 5,640 |  |
Provision for differences between cash and accrual basis |  |  | - |  |  |  | - |  |  | 42,491 |  |  |  | 61,864 |  |
Provision for goodwill/negative goodwill |  |  | - |  |  |  | - |  |  | 8,094 |  |  |  | 6,709 |  |
Temporary differences of foreign subsidiaries |  |  | - |  |  |  | - |  |  | 6,117 |  |  |  | 4,088 |  |
Provision for post-employment benefit |  |  | - |  |  |  | - |  |  | 5,913 |  |  |  | 5,911 |  |
Other provisions |  |  | - |  |  |  | - |  |  | 13,193 |  |  |  | 14,157 |  |
Total |  |  | - |  |  |  | - |  |  | 84,407 |  |  |  | 101,499 |  |

35

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
Changes in the net balance of deferred IRPJ and CSLL are as follows:

|  | 03/31/2014 |  |  | 03/31/2013 |
Initial balance |  |  | 274,633 |  |  |  | 384,407 |
Deferred IRPJ and CSLL recognized in income of the period |  |  | 15,815 |  |  |  | (7,802 | )
Initial balance of Extrafarma (January 31, 2014) |  |  | 40,516 |  |  |  | - |
Deferred IRPJ and CSLL recognized in business combinations |  |  | - |  |  |  | (9,068 | )
Other |  |  | (574 | ) |  |  | (2,110 | )
Final balance |  |  | 330,390 |  |  |  | 365,427 |

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

|  | Parent |  |  | Consolidated |
Up to 1 year |  |  | 3,636 |  |  |  | 144,082 |
From 1 to 2 years |  |  | - |  |  |  | 78,333 |
From 2 to 3 years |  |  | 11 |  |  |  | 36,702 |
From 3 to 5 years |  |  | - |  |  |  | 31,942 |
From 5 to 7 years |  |  | 3,149 |  |  |  | 88,964 |
From 7 to 10 years |  |  | - |  |  |  | 34,774 |
|  |  | 6,796 |  |  |  | 414,797 |

36

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

b. | Reconciliation of income and social contribution taxes

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

|  | Parent |  |  | Consolidated |
|  | 03/31/2014 |  |  | 03/31/2013 |  |  | 03/31/2014 |  |  | 03/31/2013 |
Income before taxes and share of profit of subsidiaries, joint ventures and associates |  |  | (19,963) |  |  |  | 3,470 |  |  |  | 375,530 |  |  |  | 365,852 |
Statutory tax rates - % |  |  | 34 |  |  |  | 34 |  |  |  | 34 |  |  |  | 34 |
Income and social contribution taxes at the statutory tax rates |  |  | 6,788 |  |  |  | (1,180 | ) |  |  | (127,680) |  |  |  | (124,390 | )
Adjustments to the statutory income and social contribution taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nondeductible expenses (i) |  |  | (387) |  |  |  | (340) |  |  |  | (13,876) |  |  |  | (7,676 | )
Nontaxable revenues (ii) |  |  | - |  |  |  | (15) |  |  |  | 628 |  |  |  | 1,294 |
Adjustment to estimated income (iii) |  |  | - |  |  |  | - |  |  |  | 3,260 |  |  |  | 2,430 |
Interest on equity (iv) |  |  | - |  |  |  | (10,097 | ) |  |  | - |  |  |  | - |
Other adjustments |  |  | - |  |  |  | 6 |  |  |  | 608 |  |  |  | 897 |
Income and social contribution taxes before tax incentives |  |  | 6,401 |  |  |  | (11,626 | ) |  |  | (137,060) |  |  |  | (127,445 | )
Tax incentives - SUDENE |  |  | - |  |  |  | - |  |  |  | 13,372 |  |  |  | 10,077 |
Income and social contribution taxes in the income statement |  |  | 6,401 |  |  |  | (11,626 | ) |  |  | (123,688) |  |  |  | (117,368 | )
Current |  |  | - |  |  |  | (11,591 | ) |  |  | (152,875) |  |  |  | (119,643 | )
Deferred |  |  | 6,401 |  |  |  | (35 | ) |  |  | 15,815 |  |  |  | (7,802 | )
Tax incentives - SUDENE |  |  | - |  |  |  | - |  |  |  | 13,372 |  |  |  | 10,077 |
Effective IRPJ and CSLL rates - % |  |  |  |  |  |  |  |  |  |  | 32.9 |  |  |  | 32.1 |

| (i) | Nondeductible expenses, consist of certain expenses that cannot be deducted for tax purposes under applicable tax legislation, such as expenses with fines, donations, gifts, losses of assets and certain provisions;

| (ii) | Nontaxable revenues, consist of certain gains and income that are not taxable under applicable tax legislation, such as the reimbursement of taxes and the reversal of certain provisions;

| (iii) | Brazilian tax law allows for an alternative method of taxation for companies that generated gross revenues of up to R$ 78 million in their previous fiscal year. Certain subsidiaries of the Company adopted this alternative form of taxation, whereby income and social contribution taxes are calculated on a basis equal to 32% of operating revenues, as opposed to being calculated based on the effective taxable income of these subsidiaries. The adjustment to estimated income represents the difference between the taxation under this alternative method and the income and social contribution taxes that would have been paid based on the effective statutory rate applied to the taxable income of these subsidiaries;

| (iv) | Interest on equity is an option foreseen in Brazilian corporate law to distribute profits to shareholders, calculated based on the long-term interest rate (“TJLP”), which does not affect the income statement, but is deductible for purposes of IRPJ and CSLL.

37

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 (1) | 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 2014 the subsidiary will request the extension of the recognition of tax incentive for another 10 years, due to the production increase in the Caucaia base and modernization in the Mataripe base.
(2) On December 26, 2013, the petition requesting the extension of the tax incentive for another 10 years was granted by SUDENE, due the modernization in the Aratu terminal. On January 16, 2014 the report was filed with the Federal Revenue Service, which has a period of 120 days for approval before Tequimar can use the incentive retrospectively.

d. | Income and social contribution taxes carryforwards

As of March 31, 2014, the Company and certain subsidiaries have loss carryforwards (income tax) amounting to R$ 142,109 (R$ 142,952 as of December 31, 2013) and negative basis of CSLL of R$ 110,958 (R$ 109,652 as of December 31, 2013), 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$ 45,514 as of March 31, 2014 (R$ 45,607 as of December 31, 2013).

e. | Provisional Measure No. 627

On November 11, 2013 Provisional Measure No. 627 (MP 627/13) was issued, which, among other matters: (i) revokes the Transition Tax Regime (RTT) and regulates the incidence of taxes on the adjustments arising from the convergence of accounting practices adopted in Brazil and international financial reporting standards (IFRS) and (ii) provides for the taxation of residents in Brazil related to profits of overseas subsidiaries and associates.
The Company has assessed the potential effects of MP 627/13 and awaits its conversion into law for completion of the assessment of impacts, however the expected effects are not material based on a preliminary analysis.
38

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

10. | Prepaid expenses (Consolidated)

|  | 03/31/2014 |  |  | 12/31/2013 |
Rents |  |  | 92,106 |  |  |  | 92,375 |
Advertising and publicity (1) |  |  | 47,849 |  |  |  | 25,864 |
Deferred Stock Plan, net (see Note 8.c) |  |  | 35,434 |  |  |  | 23,408 |
Insurance premiums |  |  | 13,465 |  |  |  | 10,319 |
Software maintenance |  |  | 5,921 |  |  |  | 3,900 |
Purchases of meal and transportation tickets |  |  | 1,507 |  |  |  | 1,541 |
Taxes and other prepaid expenses |  |  | 6,981 |  |  |  | 5,575 |
|  |  | 203,263 |  |  |  | 162,982 |
Current |  |  | 96,775 |  |  |  | 65,177 |
Non-current |  |  | 106,488 |  |  |  | 97,805 |

(1) On March 31, 2014, R$ 35,679 (R$ 19,194 on December 31, 2013) refer to marketing campaigns that will happen due to the Soccer World Cup 2014 in Brazil.
39

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

11. | Investments

a. | Subsidiaries and joint-venture (Parent company)

The table below presents the full amounts of balance sheets and income statements of subsidiaries and joint venture:

|  | 03/31/2014 |
|  | Subsidiaries |  |  | Joint-venture |
|  | Ultracargo - Operações Logísticas e Participações Ltda. |  |  | Oxiteno S.A. Indústria e Comércio |  |  | Ipiranga Produtos de Petróleo S.A. |  |  | Imifarma Produtos Farmacêuticos e Cosméticos S.A. |  |  | Refinaria de Petróleo Riograndense S.A. |
Number of shares or units held |  |  | 11,839,764 |  |  |  | 35,102,127 |  |  |  | 224,467,228,244 |  |  |  | 152,240,000 |  |  |  | 5,078,888 |
Assets |  |  | 1,089,861 |  |  |  | 3,433,126 |  |  |  | 9,457,625 |  |  |  | 439,392 |  |  |  | 215,672 |
Liabilities |  |  | 3,915 |  |  |  | 480,134 |  |  |  | 7,392,507 |  |  |  | 357,479 |  |  |  | 146,101 |
Shareholders’ equity |  |  | 1,085,946 |  |  |  | 2,953,051 | (*) |  |  | 2,065,118 |  |  |  | 81,913 |  |  |  | 69,571 |
Net revenue from sales and services |  |  | - |  |  |  | 247,508 |  |  |  | 13,907,700 |  |  |  | 180,907 |  |  |  | 52,778 |
Net income for the period |  |  | 20,987 |  |  |  | 54,482 | (*) |  |  | 181,599 |  |  |  | 3,068 |  |  |  | 1,052 |
% of capital held |  |  | 100 |  |  |  | 100 |  |  |  | 100 |  |  |  | 100 |  |  |  | 33 |

(*) adjusted for intercompany unrealized profits
The percentages in the table above are rounded.

|  | 12/31/2013
|  | Subsidiaries |  | Joint-venture
|  | 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 |  |  | 1,068,847 |  |  |  | 3,373,026 |  |  |  | 9,389,351 |  |  |  | 214,375 |
Liabilities |  |  | 3,888 |  |  |  | 480,755 |  |  |  | 7,234,447 |  |  |  | 145,856 |
Shareholders’ equity |  |  | 1,064,959 |  |  |  | 2,892,330 | (*) |  |  | 2,154,904 |  |  |  | 68,519 |
|  | 03/31/2013
Net revenue from sales and services |  |  | - |  |  |  | 222,290 |  |  |  | 11,847,169 |  |  |  | 50,270 |
Net income (loss) for the period |  |  | 16,265 |  |  |  | 34,761 | (*) |  |  | 202,143 |  |  |  | (530 | )
% of capital held |  |  | 100 |  |  |  | 100 |  |  |  | 100 |  |  |  | 33 |

(*) adjusted for intercompany unrealized profits
The percentages in the table above are rounded.
Operating financial information of the subsidiaries is detailed in Note 21.
40

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
Balances and changes in subsidiaries and joint venture are as follows:

|  | Investments in subsidiaries |  |  | Joint-venture |  |  |  |
|  | Ultracargo - Operações Logísticas e Participações Ltda. |  |  | Oxiteno S.A. - Indústria e Comércio |  |  | Ipiranga Produtos de Petróleo S.A. |  |  | Imifarma Produtos Farmacêuticos e Comésticos S.A. |  |  | Total |  |  | Refinaria de Petróleo Riograndense S.A. |  |  | Total |
Balance as of December 31, 2013 |  |  | 1,064,959 |  |  |  | 2,892,330 |  |  |  | 2,154,904 |  |  |  | - |  |  |  | 6,112,193 |  |  |  | 22,751 |  |  |  | 6,134,944 |
Share of profit of subsidiaries and joint ventures |  |  | 20,987 |  |  |  | 54,482 |  |  |  | 181,599 |  |  |  | 3,068 |  |  |  | 260,136 |  |  |  | 349 |  |  |  | 260,485 |
Dividends and interest on equity (gross) |  |  | - |  |  |  | - |  |  |  | (271,404 | ) |  |  | - |  |  |  | (271,404 | ) |  |  | - |  |  |  | (271,404 | )
Capital increase in cash |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 123,600 |  |  |  | 123,600 |  |  |  | - |  |  |  | 123,600 |
Acquisition of shares |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (44,755 | ) |  |  | (44,755 | ) |  |  | - |  |  |  | (44,755 | )
Goodwill |  |  |  |  |  |  | - |  |  |  | - |  |  |  | 836,182 |  |  |  | 836,182 |  |  |  |  |  |  |  | 836,182 |
Tax liabilities on equity- method revaluation reserve |  |  | - |  |  |  | - |  |  |  | (10 | ) |  |  | - |  |  |  | (10 | ) |  |  | - |  |  |  | (10 | )
Valuation adjustment of subsidiaries |  |  | - |  |  |  | 19 |  |  |  | 29 |  |  |  | - |  |  |  | 48 |  |  |  | - |  |  |  | 48 |
Translation adjustments of foreign-based subsidiaries |  |  | - |  |  |  | 6,220 |  |  |  | - |  |  |  | - |  |  |  | 6,220 |  |  |  | - |  |  |  | 6,220 |
Balance as of March 31, 2014 |  |  | 1,085,946 |  |  |  | 2,953,051 |  |  |  | 2,065,118 |  |  |  | 918,095 |  |  |  | 7,022,210 |  |  |  | 23,100 |  |  |  | 7,045,310 |

|  | Investments in subsidiaries |  |  | Joint-venture |  |  |  |
|  | Ultracargo - Operações Logísticas e Participações Ltda. |  |  | Oxiteno S.A. - Indústria e Comércio |  |  | Ipiranga Produtos de Petróleo S.A. |  |  | Total |  |  | Refinaria de Petróleo Riograndense S.A. |  |  | Total |
Balance as of December 31, 2012 |  |  | 988,511 |  |  |  | 2,349,275 |  |  |  | 2,435,502 |  |  |  | 5,773,288 |  |  |  | 19,759 |  |  |  | 5,793,047 |
Share of profit of subsidiaries and joint ventures |  |  | 16,265 |  |  |  | 34,761 |  |  |  | 202,143 |  |  |  | 253,169 |  |  |  | (176 | ) |  |  | 252,993 |
Dividends and interest on equity (gross) |  |  | - |  |  |  | - |  |  |  | (29,697 | ) |  |  | (29,697 | ) |  |  | - |  |  |  | (29,697 | )
Capital decrease |  |  | - |  |  |  | - |  |  |  | (700,000 | ) |  |  | (700,000 | ) |  |  | - |  |  |  | (700,000 | )
Tax liabilities on equity- method revaluation reserve |  |  | - |  |  |  | - |  |  |  | (11 | ) |  |  | (11 | ) |  |  | - |  |  |  | (11 | )
Valuation adjustment of subsidiaries |  |  | - |  |  |  | 10 |  |  |  | 9 |  |  |  | 19 |  |  |  | - |  |  |  | 19 |
Translation adjustments of foreign-based subsidiaries |  |  | - |  |  |  | (24,009 | ) |  |  | - |  |  |  | (24,009 | ) |  |  | - |  |  |  | (24,009 | )
Balance as of March 31, 2013 |  |  | 1,004,776 |  |  |  | 2,360,037 |  |  |  | 1,907,946 |  |  |  | 5,272,759 |  |  |  | 19,583 |  |  |  | 5,292,342 |

41

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

b. | Joint ventures (Consolidated)

The Company holds an interest in RPR, which is primarily engaged in oil refining.
The subsidiary Ultracargo Participações holds an interest in União Vopak, which is primarily engaged in liquid bulk storage in the port of Paranaguá.
The subsidiary Ipiranga Produtos 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 and currently also operates in the States of Rio Grande do Sul, Paraná, Rio de Janeiro, Pernambuco and Bahia.
These investments are accounted for under the equity method of accounting based on their information as of March 31, 2014.
Balances and changes in joint ventures are as follows:

|  | Movements in investments
|  | Uniăo Vopak |  |  | RPR |  |  | ConectCar |  |  | Total |
Balance as of December 31, 2013 |  |  | 5,916 |  |  |  | 22,751 |  |  |  | 15,719 |  |  |  | 44,386 |
Capital increase |  |  | - |  |  |  | - |  |  |  | 9,000 |  |  |  | 9,000 |
Share of profit (loss) of joint ventures |  |  | 268 |  |  |  | 349 |  |  |  | (3,373) |  |  |  | (2,756) |
Balance as of March 31, 2014 |  |  | 6,184 |  |  |  | 23,100 |  |  |  | 21,346 |  |  |  | 50,630 |

|  | Movements in investments
|  | Uniăo Vopak |  |  | RPR |  |  | ConectCar |  |  | Total |
Balance as of December 31, 2012 |  |  | 5,714 |  |  |  | 19,759 |  |  |  | 2,736 |  |  |  | 28,209 |
Capital increase |  |  | - |  |  |  | - |  |  |  | 9,579 |  |  |  | 9,579 |
Share of profit (loss) of joint ventures |  |  | 188 |  |  |  | (176)* |  |  |  | (2,257) |  |  |  | (2,245) |
Balance as of March 31, 2013 |  |  | 5,902 |  |  |  | 19,583 |  |  |  | 10,058 |  |  |  | 35,543 |

*Includes adjustments related to the conclusion of the audit of 2012.
42

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below presents the full amounts of balance sheets and income statements of joint ventures:

|  | 03/31/2014 |
|  | Uniăo Vopak |  |  | RPR |  |  | ConectCar |
Current assets |  |  | 4,714 |  |  |  | 109,707 |  |  |  | 26,775 |
Non-current assets |  |  | 9,120 |  |  |  | 105,965 |  |  |  | 29,527 |
Current liabilities |  |  | 1,468 |  |  |  | 46,858 |  |  |  | 13,610 |
Non-current liabilities |  |  | - |  |  |  | 99,243 |  |  |  | - |
Shareholders’ equity |  |  | 12,366 |  |  |  | 69,571 |  |  |  | 42,692 |
Net revenue from sales and services |  |  | 3,058 |  |  |  | 52,778 |  |  |  | 1,452 |
Costs and operating expenses |  |  | (2,326 | ) |  |  | (50,834 | ) |  |  | (11,688 | )
Net financial income and income and social contribution taxes |  |  | (196 | ) |  |  | (892 | ) |  |  | 3,490 |
Net income (loss) |  |  | 536 |  |  |  | 1,052 |  |  |  | (6,746 | )
Number of shares or units held |  |  | 29,995 |  |  |  | 5,078,888 |  |  |  | 50,000,000 |
% of capital held |  |  | 50 |  |  |  | 33 |  |  |  | 50 |

The percentages in the table above are rounded.

|  | 12/31/2013 |
|  | Uniăo Vopak |  |  | RPR |  |  | ConectCar |
Current assets |  |  | 3,814 |  |  |  | 115,968 |  |  |  | 26,585 |
Non-current assets |  |  | 9,358 |  |  |  | 98,407 |  |  |  | 25,301 |
Current liabilities |  |  | 1,340 |  |  |  | 46,973 |  |  |  | 20,448 |
Non-current liabilities |  |  | - |  |  |  | 98,883 |  |  |  | - |
Shareholders’ equity |  |  | 11,832 |  |  |  | 68,519 |  |  |  | 31,438 |
Number of shares or units held |  |  | 29,995 |  |  |  | 5,078,888 |  |  |  | 50,000,000 |
% of capital held |  |  | 50 |  |  |  | 33 |  |  |  | 50 |

| 03/31/2013 |
| Uniăo Vopak |  | RPR |  | ConectCar |
Net revenue from sales and services | 2,752 |  | 50,270 |  |  | 13 |
Costs and operating expenses | (2,234 | ) | (46,588 | ) |  | (6,834 | )
Net financial income and income and social contribution taxes | (142 | ) | (1,319 | ) |  | 2,307 |
Net income (loss) | 376 |  | 2,363 |  |  | (4,514 | )

Number of shares or units held |  | 29,995 |  |  | 5,078,888 |  | 25,000,000 |
% of capital held |  | 50 |  |  | 33 |  | 50 |

The percentages in the table above are rounded.
43

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

c. | Associates (Consolidated)

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 interim financial information as of February 28, 2014, while the other associates are valued based on the interim financial information as of March 31, 2014.
Balances and changes in associates are as follows:

|  | Movements in investments |
|  | 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, 2013 |  |  | 5,962 |  |  |  | 2,144 |  |  |  | 3,635 |  |  |  | 11,741 |
Share of profit of associates |  |  | 121 |  |  |  | 64 |  |  |  | 4 |  |  |  | 189 |
Balance as of March 31, 2014 |  |  | 6,083 |  |  |  | 2,208 |  |  |  | 3,639 |  |  |  | 11,930 |

|  | Movements in investments |
|  | 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 of associates |  |  | 223 |  |  |  | 61 |  |  |  | 2 |  |  |  | 286 |
Balance as of March 31, 2013 |  |  | 7,237 |  |  |  | 2,081 |  |  |  | 3,638 |  |  |  | 12,956 |

44

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
The table below presents the full amounts of balance sheets and income statements of associates:

|  | 03/31/2014 |
|  | 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 |  |  | 5,124 |  |  |  | 11,441 |  |  |  | 87 |  |  |  | 2,314 |  |  |  | 20 |
Non-current assets |  |  | 20,156 |  |  |  | 74,607 |  |  |  | 10,089 |  |  |  | 341 |  |  |  | 2,829 |
Current liabilities |  |  | 613 |  |  |  | 3,374 |  |  |  | - |  |  |  | 444 |  |  |  | 104 |
Non-current liabilities |  |  | 332 |  |  |  | 73,844 |  |  |  | 2,900 |  |  |  | 1,708 |  |  |  | 3,386 |
Shareholders’ equity |  |  | 24,335 |  |  |  | 8,830 |  |  |  | 7,276 |  |  |  | 503 |  |  |  | (641 | )
Net revenue from sales and services |  |  | 1,739 |  |  |  | 7,786 |  |  |  | - |  |  |  | - |  |  |  | - |
Costs, operating expenses and income |  |  | (1,241 | ) |  |  | (7,368 | ) |  |  | (2 | ) |  |  | 455 |  |  |  | (48 | )
Net financial income and income and social contribution taxes |  |  | (13 | ) |  |  | (163 | ) |  |  | 9 |  |  |  | 888 |  |  |  | (1 | )
Net income (loss) for the period |  |  | 485 |  |  |  | 255 |  |  |  | 7 |  |  |  | 1,343 |  |  |  | (49 | )
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 |

The percentages in the table above are rounded.

|  | 12/31/2013 |
|  | 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 |  |  | 4,482 |  |  |  | 19,507 |  |  |  | 85 |  |  |  | 555 |  |  |  | 3 |
Non-current assets |  |  | 20,449 |  |  |  | 73,767 |  |  |  | 10,085 |  |  |  | 331 |  |  |  | 2,926 |
Current liabilities |  |  | 749 |  |  |  | 11,019 |  |  |  | - |  |  |  | 17 |  |  |  | 62 |
Non-current liabilities |  |  | 332 |  |  |  | 73,681 |  |  |  | 2,901 |  |  |  | 1,708 |  |  |  | 3,459 |
Shareholders’ equity |  |  | 23,850 |  |  |  | 8,574 |  |  |  | 7,269 |  |  |  | (839 | ) |  |  | (592 | )

45

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

|  | 03/31/2013 |
|  | 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. |
Net revenue from sales and services |  |  | 2,022 |  |  |  | 8,162 |  |  |  | - |  |  |  | - |  |  |  | - |
Costs, operating expenses and income |  |  | (1,145 | ) |  |  | (7,851 | ) |  |  | (3 | ) |  |  | (50 | ) |  |  | (152 | )
Net financial income and income and social contribution taxes |  |  | 12 |  |  |  | (66 | ) |  |  | 8 |  |  |  | (1 | ) |  |  | 14 |
Net income (loss) for the period |  |  | 889 |  |  |  | 245 |  |  |  | 5 |  |  |  | (51 | ) |  |  | (138 | )
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 |

The percentages in the table above are rounded.
46

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

12. | Property, plant and equipment (Consolidated)

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

|  | Weighted average useful life (years) |  |  | Balance in 12/31/2013 |  |  | Additions |  |  | Depreciation |  |  | Transfer |  |  | Write-offs and disposals |  |  | Extrafarma acquisiton (1) |  |  | Effect of foreign currency exchange rate variation |  |  | Balance in 03/31/2014 |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  | - |  |  |  | 458,619 |  |  |  | 2,686 |  |  |  | - |  |  |  | 73 |  |  |  | (1,128) |  |  |  | - |  |  |  | (360) |  |  |  | 459,890 |
Buildings |  |  | 30 |  |  |  | 1,219,746 |  |  |  | 1,010 |  |  |  | - |  |  |  | 14,827 |  |  |  | (671) |  |  |  | - |  |  |  | (4,309) |  |  |  | 1,230,603 |
Leasehold improvements |  |  | 12 |  |  |  | 549,841 |  |  |  | 1,907 |  |  |  | - |  |  |  | 11,194 |  |  |  | (23) |  |  |  | 23,059 |  |  |  | (5) |  |  |  | 585,973 |
Machinery and equipment |  |  | 13 |  |  |  | 3,745,901 |  |  |  | 13,727 |  |  |  | - |  |  |  | 15,455 |  |  |  | (1,112) |  |  |  | 6,366 |  |  |  | (5,047) |  |  |  | 3,775,290 |
Automotive fuel/lubricant distribution equipment and facilities |  |  | 14 |  |  |  | 1,939,720 |  |  |  | 20,153 |  |  |  | - |  |  |  | 62,301 |  |  |  | (2,864) |  |  |  | - |  |  |  | (1) |  |  |  | 2,019,309 |
LPG tanks and bottles |  |  | 12 |  |  |  | 460,596 |  |  |  | 14,423 |  |  |  | - |  |  |  | - |  |  |  | (10,719) |  |  |  | - |  |  |  | (1) |  |  |  | 464,299 |
Vehicles |  |  | 10 |  |  |  | 213,635 |  |  |  | 3,153 |  |  |  | - |  |  |  | 4,196 |  |  |  | (3,906) |  |  |  | 5,695 |  |  |  | (368) |  |  |  | 222,405 |
Furniture and utensils |  |  | 8 |  |  |  | 126,758 |  |  |  | 1,799 |  |  |  | - |  |  |  | 942 |  |  |  | (30) |  |  |  | 14,926 |  |  |  | 377 |  |  |  | 144,772 |
Construction in progress |  |  | - |  |  |  | 302,076 |  |  |  | 44,935 |  |  |  | - |  |  |  | (98,934) |  |  |  | - |  |  |  | 5,036 |  |  |  | 2,983 |  |  |  | 256,096 |
Advances to suppliers |  |  | - |  |  |  | 27,558 |  |  |  | 1,869 |  |  |  | - |  |  |  | (11,811) |  |  |  | (2,252) |  |  |  | - |  |  |  | - |  |  |  | 15,364 |
Imports in progress |  |  | - |  |  |  | 130 |  |  |  | - |  |  |  | - |  |  |  | 14 |  |  |  | - |  |  |  | - |  |  |  | (78) |  |  |  | 66 |
IT equipment |  |  | 5 |  |  |  | 206,286 |  |  |  | 2,241 |  |  |  | - |  |  |  | 932 |  |  |  | (706) |  |  |  | 8,680 |  |  |  | (200) |  |  |  | 217,233 |
|  |  |  |  |  |  | 9,250,866 |  |  |  | 107,903 |  |  |  | - |  |  |  | (811) |  |  |  | (23,411) |  |  |  | 63,762 |  |  |  | (7,009) |  |  |  | 9,391,300 |
Accumulated depreciation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Buildings |  |  |  |  |  |  | (533,776 | ) |  |  | - |  |  |  | (9,138) |  |  |  | (51) |  |  |  | 391 |  |  |  | - |  |  |  | 940 |  |  |  | (541,634) |
Leasehold improvements |  |  |  |  |  |  | (269,598) |  |  |  | - |  |  |  | (9,269) |  |  |  | (263) |  |  |  | 23 |  |  |  | (4,602) |  |  |  | 4 |  |  |  | (283,705) |
Machinery and equipment |  |  |  |  |  |  | (1,939,238 | ) |  |  | - |  |  |  | (55,467) |  |  |  | 322 |  |  |  | 738 |  |  |  | (1,756) |  |  |  | (2,203) |  |  |  | (1,997,604) |
Automotive fuel/lubricant distribution equipment and facilities |  |  |  |  |  |  | (1,066,425 | ) |  |  | - |  |  |  | (28,128) |  |  |  | - |  |  |  | 2,202 |  |  |  | - |  |  |  | 1 |  |  |  | (1,092,350) |
LPG tanks and bottles |  |  |  |  |  |  | (221,321 | ) |  |  | - |  |  |  | (7,084) |  |  |  | - |  |  |  | 4,347 |  |  |  | - |  |  |  | (1) |  |  |  | (224,059) |
Vehicles |  |  |  |  |  |  | (87,860 | ) |  |  | - |  |  |  | (3,523) |  |  |  | - |  |  |  | 2,776 |  |  |  | (2,954) |  |  |  | 701 |  |  |  | (90,860) |
Furniture and utensils |  |  |  |  |  |  | (93,246 | ) |  |  | - |  |  |  | (2,291) |  |  |  | - |  |  |  | 24 |  |  |  | (3,624) |  |  |  | (147) |  |  |  | (99,284) |
IT equipment |  |  |  |  |  |  | (173,942 | ) |  |  | - |  |  |  | (3,095) |  |  |  | - |  |  |  | 682 |  |  |  | (3,994) |  |  |  | 32 |  |  |  | (180,317) |
|  |  |  |  |  |  | (4,385,406 | ) |  |  | - |  |  |  | (117,995) |  |  |  | 8 |  |  |  | 11,183 |  |  |  | (16,930) |  |  |  | (673) |  |  |  | (4,509,813) |
Provision for losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Land |  |  |  |  |  |  | (197 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (197) |
Machinery and equipment |  |  |  |  |  |  | (5,027 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 139 |  |  |  | - |  |  |  | - |  |  |  | (4,888) |
IT equipment |  |  |  |  |  |  | (6 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (6) |
Furniture and utensils |  |  |  |  |  |  | (5 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | - |  |  |  | (4) |
|  |  |  |  |  |  | (5,235 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 140 |  |  |  | - |  |  |  | - |  |  |  | (5,095) |
Net amount |  |  |  |  |  |  | 4,860,225 |  |  |  | 107,903 |  |  |  | (117,995) |  |  |  | (803) |  |  |  | (12,088) |  |  |  | 46,832 |  |  |  | (7,682) |  |  |  | 4,876,392 |

(1) | For further information on the Extrafarma acquisition see Note 3.a).

Construction in progress relates substantially to expansions and renovations of 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.
47

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

13. | Intangible assets (Consolidated)

Balances and changes in intangible assets are as follows:

|  | Weighted average useful life (years) |  |  | Balance in 12/31/2013 |  |  | Additions |  |  | Amortization |  |  | Transfer |  |  | Write-offs and disposals |  |  | Extrafarma Aquisition (1) |  |  | Effect of foreign currency exchange rate variation |  |  | Balance in 03/31/2014 |
Cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill (i) |  |  | - |  |  |  | 896,609 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 836,182 |  |  |  | - |  |  |  | 1,732,791 |
Software (ii) |  |  | 5 |  |  |  | 353,637 |  |  |  | 8,039 |  |  |  | - |  |  |  | 812 |  |  |  | (5 | ) |  |  | 9,532 |  |  |  | (91 | ) |  |  | 371,924 |
Technology (iii) |  |  | 5 |  |  |  | 32,436 |  |  |  | 181 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 32,617 |
Commercial property rights (iv) |  |  | 30 |  |  |  | 16,334 |  |  |  | 456 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 11,904 |  |  |  | - |  |  |  | 28,694 |
Distribution rights (v) |  |  | 5 |  |  |  | 2,213,573 |  |  |  | 32,941 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,246,514 |
Others (vi) |  |  | 10 |  |  |  | 45,523 |  |  |  | 220 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (2,114 | ) |  |  | 43,629 |
|  |  |  |  |  |  | 3,558,112 |  |  |  | 41,837 |  |  |  | - |  |  |  | 812 |  |  |  | (5 | ) |  |  | 857,618 |  |  |  | (2,205 | ) |  |  | 4,456,169 |

Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  |  | (101,983 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (101,983 | )
Software |  |  | (261,693 | ) |  |  | - |  |  |  | (7,991 | ) |  |  | (9 | ) |  |  | 5 |  |  |  | (1,417 | ) |  |  | 70 |  |  |  | (271,035 | )
Technology |  |  | (27,690 | ) |  |  | - |  |  |  | (443 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (28,133 | )
Commercial property rights |  |  | (5,515 | ) |  |  | - |  |  |  | (588 | ) |  |  | 9 |  |  |  | - |  |  |  | (6,296 | ) |  |  | - |  |  |  | (12,390 | )
Distribution rights |  |  | (992,022 | ) |  |  | - |  |  |  | (90,942 | ) |  |  | (945 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (1,083,909 | )
Others |  |  | (454 | ) |  |  | - |  |  |  | (639 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 638 |  |  |  | (455 | )
|  |  | (1,389,357 | ) |  |  | - |  |  |  | (100,603 | ) |  |  | (945 | ) |  |  | 5 |  |  |  | (7,713 | ) |  |  | 708 |  |  |  | (1,497,905 | )
Net amount |  |  | 2,168,755 |  |  |  | 41,837 |  |  |  | (100,603 | ) |  |  | (133 | ) |  |  | - |  |  |  | 849,905 |  |  |  | (1,497 | ) |  |  | 2,958,264 |

(1) For further information on the Extrafarma acquisition see Note 3.a).
48

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
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:

| Segment |  | 03/31/2014 |  |  | 12/31/2013 |
Goodwill on the acquisition of: |  |  |  |  |  |  |
Extrafarma (*) | Extrafarma |  |  | 836,182 |  |  |  | - |
Ipiranga | Ipiranga |  |  | 276,724 |  |  |  | 276,724 |
Uniăo Terminais | Ultracargo |  |  | 211,089 |  |  |  | 211,089 |
Texaco | Ipiranga |  |  | 177,759 |  |  |  | 177,759 |
Oxiteno Uruguay | Oxiteno |  |  | 44,856 |  |  |  | 44,856 |
Temmar | Ultracargo |  |  | 43,781 |  |  |  | 43,781 |
DNP | Ipiranga |  |  | 24,736 |  |  |  | 24,736 |
Repsol | Ultragaz |  |  | 13,403 |  |  |  | 13,403 |
Others |  |  |  | 2,278 |  |  |  | 2,278 |
|  |  |  | 1,630,808 |  |  |  | 794,626 |

(*) For further information about the goodwill of Extrafarma, see Note 3.a).
On December 31, 2013 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.
On December 31, 2013 the discount and real growth rates used to extrapolate the projections ranged from 11.3% to 24.9% and 0% to 5.0% 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, 2013.
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.
49

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
iv) Commercial property rights include those described below:

• | On July 11, 2002, subsidiary 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.
• | Subsidiary Extrafarma pays key money to obtain certain commercial establishments to open drugstores which is stated at the cost of acquisition, amortized using the straight line method, considering the lease contract terms. In the case of closedown of stores the residual amount is recorded in income.

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:

|  | 03/31/2014 |  |  | 03/31/2013 |
Inventories and cost of products and services sold |  |  | 1,955 |  |  |  | 3,254 |
Selling and marketing |  |  | 89,975 |  |  |  | 71,828 |
General and administrative |  |  | 8,673 |  |  |  | 7,578 |
|  |  | 100,603 |  |  |  | 82,660 |

50

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

14 | Loans, debentures and finance leases (Consolidated)

a. | Composition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Description | 03/31/2014 |  | 12/31/2013 |  |  |  | Index/Currency |  |  | Weighted average financial charges 03/31/2014 - % p.a. |  |  | Maturity |  |
Foreign currency – denominated loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notes in the foreign market (b) | 575,192 |  | 584,521 |  |  |  | US$ |  |  |  | +7.3 |  |  |  | 2015 |
Foreign loan (c.1) (*) | 179,554 |  | 187,340 |  |  |  | US$ + LIBOR (i) |  |  |  | +0.8 |  |  |  | 2015 |
Foreign loan (c.2) | 134,740 |  | 140,341 |  |  |  | US$ + LIBOR (i) |  |  |  | +1.0 |  |  |  | 2017 |
Advances on foreign exchange contracts | 129,822 |  | 136,753 |  |  |  | US$ |  |  |  | +1.4 |  |  | < 340 days |
Financial institutions (e) | 91,384 |  | 95,792 |  |  |  | US$ |  |  |  | +2.1 |  |  | 2014 to 2017 |
Financial institutions (e) | 45,333 |  | 46,740 |  |  |  | US$ + LIBOR (i) |  |  |  | +2.0 |  |  |  | 2017 |
BNDES (d) | 39,525 |  | 46,623 |  |  |  | US$ |  |  |  | +5.9 |  |  | 2014 to 2020 |
Financial institutions (e) | 28,705 |  | 31,241 |  |  |  | MX$ + TIIE (ii) |  |  |  | +1.1 |  |  | 2014 to 2016 |
Foreign currency advances delivered | 15,792 |  | 25,511 |  |  |  | US$ |  |  |  | +1.3 |  |  | < 109 days |
Subtotal | 1,240,047 |  | 1,294,862 |  |  |  |  |  |  |  |  |  |  |  |  |
Brazilian Reais – denominated loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Banco do Brasil – floating rate (f) | 2,643,429 |  | 2,402,553 |  |  |  | CDI |  |  |  | 104.6 |  |  | 2015 to 2019 |
Debentures - 1st public issuance IPP (g.2 and g.3) | 1,440,059 |  | 606,929 |  |  |  | CDI |  |  |  | 107.9 |  |  | 2017 | to 2018 |
Debentures - 4th issuance (g.1) | 799,840 |  | 852,483 |  |  |  | CDI |  |  |  | 108.3 |  |  |  | 2015 |
BNDES (d) | 595,095 |  | 633,829 |  |  |  | TJLP (iii) |  |  |  | +2.5 |  |  | 2014 to 2020 |
Banco do Brasil – fixed rate (f) (*) | 463,517 |  | 905,947 |  |  |  | R$ |  |  |  | +12.1 |  |  | 2015 |
Working capital loans Extrafarma – floating rate (i) | 124,658 |  | - |  |  |  | CDI |  |  |  | +3.0 |  |  | 2014 to 2017 |
Banco do Nordeste do Brasil | 99,326 |  | 104,072 |  |  |  | R$ |  |  |  | +8.5 (v) |  |  | 2018 to 2021 |
BNDES (d) | 58,508 |  | 47,428 |  |  |  | R$ |  |  |  | +4.9 |  |  | 2015 to 2022 |
FINEP | 49,302 |  | 38,845 |  |  |  | R$ |  |  |  | +4.0 |  |  | 2019 to 2021 |
Finance leases (j) | 43,951 |  | 44,338 |  |  |  | IGP-M (iv) |  |  |  | +5.6 |  |  |  | 2031 |
Export Credit Note (h) (*) | 25,073 |  | 24,994 |  |  |  | R$ |  |  |  | +8.0 |  |  |  | 2016 |
Working capital loans Extrafarma – fixed rate (i) | 9,057 |  | - |  |  |  | R$ |  |  |  | +11.4 |  |  | 2014 to 2016 |
FINEP | 5,075 |  | 6,718 |  |  |  | TJLP (iii) |  |  |  | +0.0 |  |  | 2023 |
Fixed finance leases (j) | 1,541 |  | 53 |  |  |  | R$ |  |  |  | +15.6 |  |  | 2014 to 2017 |
FINAME | 656 |  | - |  |  |  | TJLP |  |  |  | +5.5% |  |  | 2016 | to 2022 |
Floating finance leases (j) | 568 |  | - |  |  |  | CDI |  |  |  | +2.8% |  |  |  | 2017 |
Subtotal | 6,359,655 |  | 5,668,189 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency and interest rate hedging instruments | 9,717 |  | 6,575 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total | 7,609,419 |  | 6,969,626 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current | 1,778,922 |  | 1,829,989 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-current | 5,830,497 |  | 5,139,637 |  |  |  |  |  |  |  |  |  |  |  |  |  |

(*) These transactions were designated for hedge accounting (see Note 22 – Hedge accounting).
51

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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) | TJLP (Long-term Interest Rate) = set by the National Monetary Council, TJLP is the basic financing cost of Banco Nacional de Desenvolvimento Econômico e Social (“BNDES”), the Brazilian Development Bank. On March 31, 2014, 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 March 31, 2014, 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:

|  | 03/31/2014 |  |  | 12/31/2013 |
From 1 to 2 years |  |  | 1,854,263 |  |  |  | 2,831,799 |
From 2 to 3 years |  |  | 1,362,133 |  |  |  | 493,356 |
From 3 to 4 years |  |  | 789,835 |  |  |  | 797,605 |
From 4 to 5 years |  |  | 865,604 |  |  |  | 68,640 |
More than 5 years |  |  | 958,662 |  |  |  | 948,237 |
|  |  | 5,830,497 |  |  |  | 5,139,637 |

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.k).
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).

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 7.3% p.a., paid semiannually. 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.
52

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

c. | Foreign loans 1) In November 2012 the subsidiary IPP contracted a foreign loan in the amount of US$ 80 million, due in November 2015 and bearing 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 measured at fair value from inception, with changes in fair value recognized through profit or loss. The foreign loan is secured by the Company. 2) The subsidiary Oxiteno Overseas Corp. (“Oxiteno Overseas”) has a foreign loan in the amount of US$ 60 million with 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 with maturity in June 2014 and 94,0% of CDI for the remaining term (see Note 22). The foreign loan is guaranteed by the Company and its subsidiary Oxiteno S.A. In January 2014, the subsidiary renegotiated the loan changing the maturity from June 2014 to January 2017. 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 financial statement:

| • | 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.

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. |

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.
53

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

e. | Financial institutions

The subsidiaries Oxiteno Mexico S.A. de C.V., Oxiteno USA LLC and Oxiteno Uruguay 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 instrument, thus converting the fixed rate for this loan into 99.5% of CDI (see Note 22). IPP designates this hedging instrument as a fair value hedge; therefore, loan and hedging instrument are both stated at fair value from inception. Changes in fair value are recognized in profit or loss.
In January 2014, the subsidiary IPP renegotiated loans, that would mature in 2014, in the notional amount of R$ 909.5 million, changing the maturities from April and May 2014 to January 2017, with floating interest rate of 105.5% of CDI.
These loans mature, as follows (include interest until March 31, 2014):

Maturity |  | 03/31/2014 |
Fev/15 |  |  | 381,910 |
May/15 |  |  | 687,368 |
Feb/16 |  |  | 166,667 |
May/16 |  |  | 100,000 |
Jan/17 |  |  | 925,491 |
May/19 |  |  | 845,510 |
Total |  |  | 3,106,946 |

54

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

g. | Debentures

1) | 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

2) | 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

3) | In January 2014, the subsidiary IPP made its second issuance of public debentures in single series of 80,000 simple nonconvertible into shares, unsecured, nominative and registered debentures, which main characteristics are as follows:

Face value unit: | R$ 10,000.00
Final maturity: | December 20, 2018
Payment of the face value: | Lump sum at final maturity
Interest: | 107.9% of CDI
Payment of interest: | Semiannually
Reprice: | Not applicable

55

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

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 fixed interest rate of 8% p.a., paid quarterly.
In August 2013, the subsidiary Oxiteno Nordeste contracted an export credit note in the amount of R$ 10.0 million, with maturity in August 2016 and fixed interest rate of 8% p.a., paid quarterly.
Oxiteno Nordeste contracted interest hedging instruments, thus converting the fixed rates for these loans into 88.8% of CDI (see Note 22). Oxiteno Nordeste designated these hedging instruments as a fair value hedge; therefore, loans and hedging instruments are both measured at fair value from inception. Changes in fair value are recognized in profit or loss.

i. | Working capital

The subsidiary Extrafarma has loans for financing its working capital, with maturities substantially in 2014 and fixed and floating rates.

j. | 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 subsidiary Extrafarma has finance lease contracts related to IT equipment, vehicles, furniture and utensils, with terms between 24 to 60 months.
The amounts of equipments and intangible assets, net of depreciation and amortization, and of the liabilities corresponding to such equipments, are shown below:

|  | 03/31/2014 |
|  | LPG bottling facilities |  |  | IT equipment |  |  | Vehicles |  |  | Furniture and utensils |  |  | Total |
Equipment and intangible assets, net of depreciation and amortization |  |  | 28,410 |  |  |  | 1,540 |  |  |  | 2,065 |  |  |  | 809 |  |  |  | 32,824 |
Financing (present value) |  |  | 43,951 |  |  |  | 1,383 |  |  |  | 376 |  |  |  | 350 |  |  |  | 46,060 |
Current |  |  | 1,755 |  |  |  | 705 |  |  |  | 276 |  |  |  | 308 |  |  |  | 3,044 |
Non-current |  |  | 42,196 |  |  |  | 678 |  |  |  | 100 |  |  |  | 42 |  |  |  | 43,016 |

56

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

|  | 12/31/2013 |
|  | LPG bottling facilities |  |  | IT equipment |  | Total |
Equipment and intangible assets, net of depreciation and amortization |  |  | 29,653 |  |  |  | 292 |  |  |  | 29,945 |
Financing (present value) |  |  | 44,338 |  |  |  | 53 |  |  |  | 44,391 |
Current |  |  | 1,735 |  |  |  | 53 |  |  |  | 1,788 |
Non-current |  |  | 42,603 |  |  |  | - |  |  |  | 42,603 |

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

|  | 03/31/2014 |
|  | LPG bottling facilities |  |  | IT equipment |  |  | Vehicles |  |  | Furniture and utensils |  |  | Total |
Up to 1 year |  |  | 4,214 |  |  |  | 822 |  |  |  | 314 |  |  |  | 338 |  |  |  | 5,688 |
From 1 to 2 years |  |  | 4,238 |  |  |  | 445 |  |  |  | 101 |  |  |  | 42 |  |  |  | 4,826 |
From 2 to 3 years |  |  | 4,238 |  |  |  | 298 |  |  |  | 5 |  |  |  | - |  |  |  | 4,541 |
From 3 to 4 years |  |  | 4,238 |  |  |  | 79 |  |  |  | - |  |  |  | - |  |  |  | 4,317 |
From 4 to 5 years |  |  | 4,238 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,238 |
More than 5 years |  |  | 51,204 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 51,204 |
Total |  |  | 72,370 |  |  |  | 1,644 |  |  |  | 420 |  |  |  | 380 |  |  |  | 74,814 |

|  | 12/31/2013 |
|  | LPG bottling facilities |  |  | IT equipment |  | Total |
Up to 1 year |  |  | 3,949 |  |  |  | 55 |  |  |  | 4,004 |
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 |  |  | 48,704 |  |  |  | - |  |  |  | 48,704 |
|  |  | 68,449 |  |  |  | 55 |  |  |  | 68,504 |

The above amounts include Services Tax (“ISS”) payable on the monthly installments, except for disbursements for the LPG bottling facilities.
57

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

k. | 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:

|  | Effective rate of transaction costs (% p.a.) |  |  | Balance as of December 31, 2013 |  |  | Incurred cost |  |  | Amortization |  |  | Balance as of March 31, 2014 |
Banco do Brasil (f) |  |  | 0.4 |  |  |  | 19,797 |  |  |  | - |  |  |  | (2,449 | ) |  |  | 17,348 |
Debentures (g) |  |  | 0.3 |  |  |  | 4,730 |  |  |  | 1,422 |  |  |  | (965 | ) |  |  | 5,187 |
Notes in the foreign market (b) |  |  | 0.2 |  |  |  | 2,309 |  |  |  | - |  |  |  | (358 | ) |  |  | 1,951 |
Other |  |  | 0.4 |  |  |  | 916 |  |  |  | 1,458 |  |  |  | (260 | ) |  |  | 2,114 |
Total |  |  |  |  |  |  | 27,752 |  |  |  | 2,880 |  |  |  | (4,032 | ) |  |  | 26,600 |

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

|  | Up to 1 year |  |  | 1 to 2 years |  |  | 2 to 3 years |  |  | 3 to 4 years |  |  | 4 to 5 years |  |  | More than 5 years |  |  | Total |
Banco do Brasil (f) |  |  | 3,924 |  |  |  | 2,660 |  |  |  | 2,818 |  |  |  | 3,364 |  |  |  | 3,992 |  |  |  | 590 |  |  |  | 17,348 |
Debentures (g) |  |  | 3,906 |  |  |  | 313 |  |  |  | 345 |  |  |  | 360 |  |  |  | 263 |  |  |  | - |  |  |  | 5,187 |
Notes in the foreign market (b) |  |  | 1,115 |  |  |  | 836 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,951 |
Other |  |  | 751 |  |  |  | 778 |  |  |  | 533 |  |  |  | 52 |  |  |  | - |  |  |  | - |  |  |  | 2,114 |
Total |  |  | 9,696 |  |  |  | 4,587 |  |  |  | 3,696 |  |  |  | 3,776 |  |  |  | 4,255 |  |  |  | 590 |  |  |  | 26,600 |

58

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

l. | Guarantees

The financings are guaranteed by collateral in the amount of R$ 172,867 as of March 31, 2014 (R$ 40,675 as of December 31, 2013) and by guarantees and promissory notes in the amount of R$ 3,310,919 as of March 31, 2014 (R$ 2,528,511 as of December 31, 2013).
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$ 159,353 as of March 31, 2014 (R$ 155,221 as of December 31, 2013).
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$ 11,201 as of March 31, 2014 (R$ 14,315 as of December 31, 2013), with maturities of less than 214 days. As of March 31, 2014, 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$ 274 as of March 31, 2014 (R$ 350 as of December 31, 2013), 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 March 31, 2014, there was no event of default of the debts of the Company and its subsidiaries.

15 | Trade payables (Consolidated)

|  | 03/31/2014 |  |  | 12/31/2013 |
Domestic suppliers |  |  | 910,837 |  |  |  | 907,138 |
Foreign suppliers |  |  | 64,656 |  |  |  | 61,812 |
|  |  | 975,493 |  |  |  | 968,950 |

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.
59

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

16 | Salaries and related charges (Consolidated)

|  | 03/31/2014 |  |  | 12/31/2013 |
Provisions on payroll |  |  | 119,256 |  |  |  | 111,831 |
Profit sharing, bonus and premium |  |  | 47,143 |  |  |  | 142,120 |
Social charges |  |  | 44,845 |  |  |  | 31,059 |
Salaries and related payments |  |  | 11,147 |  |  |  | 11,000 |
Benefits |  |  | 1,753 |  |  |  | 1,303 |
Others |  |  | 2,135 |  |  |  | 341 |
|  |  | 226,279 |  |  |  | 297,654 |

17 | Taxes payable (Consolidated)

|  | 03/31/2014 |  |  | 12/31/2013 |
ICMS |  |  | 76,846 |  |  |  | 75,883 |
Value-Added Tax (IVA) of subsidiaries Oxiteno Mexico, Oxiteno Andina and Oxiteno Uruguay |  |  | 8,917 |  |  |  | 11,445 |
PIS and COFINS |  |  | 7,152 |  |  |  | 9,128 |
ISS |  |  | 5,265 |  |  |  | 5,656 |
IPI |  |  | 4,909 |  |  |  | 4,304 |
National Institute of Social Security (INSS) |  |  | 2,207 |  |  |  | 3,998 |
Income Tax Withholding (IRRF) |  |  | 9,889 |  |  |  | 1,659 |
Others |  |  | 4,780 |  |  |  | 4,249 |
|  |  | 119,965 |  |  |  | 116,322 |

18 | 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 obligation are as follows:

Balance at December 31, 2013 |  |  | 69,661 |
Additions (new tanks) |  |  | 145 |
Expense with tanks removed |  |  | (998) |
Accretion expense |  |  | 639 |
Balance at March 31, 2014 |  |  | 69,447 |
Current |  |  | 4,416 |
Non-current |  |  | 65,031 |

60

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

19 | Deferred revenue (Consolidated)

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

|  | 03/31/2014 |  |  | 12/31/2013 |
‘am/pm’ franchising upfront fee |  |  | 14,526 |  |  |  | 14,049 |
Loyalty program “Km de Vantagens” |  |  | 13,714 |  |  |  | 12,816 |
Loyalty program “Club Extra” |  |  | 2,766 |  |  |  | - |
|  |  | 31,006 |  |  |  | 26,865 |
Current |  |  | 21,612 |  |  |  | 17,731 |
Non-current |  |  | 9,394 |  |  |  | 9,134 |

Loyalty program
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.
Extrafarma has a loyalty program called Club Extra under which registered customers are rewarded with points when they buy products at its drugstore chain. The customers may exchange these points, during the period of one year, for prizes in the drugstore chain or through the website www.clubextra.com.br.
Deferred revenue is based on the fair value of the points granted, considering the value of the prizes and the expected redemption of points. Deferred revenue 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.
Franchising fee
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.
61

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

20 | Shareholders’ equity

a. | Share capital

The Company is a publicly traded company listed on BM&FBOVESPA in the Novo Mercado listing segment under the ticker “UGPA3” and on the New York Stock Exchange (NYSE) in the form of level III American Depositary Receipts (“ADRs”) under the ticker “UGP”. As of March 31, 2014 the subscribed and paid-in capital stock consists of 556,405,096 common shares with no par value, (544,383,996 as of December 31, 2013) and the issuance of preferred shares and participation certificates is prohibited. Each common share entitles its holder to one vote at Shareholders’ Meetings.
The price of the shares issued by the Company as of March 31, 2014 on BM&FBOVESPA was R$ 54.91.
On January 31, 2014, the Extraordinary Shareholders’ Meetings of Ultrapar and Extrafarma approved the issuance of 12,021,100 new ordinary, nominative, book-entry shares with no par value of the Company, increasing its capital stock by R$ 141,913, resulting in a total capital stock of R$ 3,838,686 represented by 556,405,096 shares. For further information, see Note 3.a).
As of March 31, 2014, 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 March 31, 2014, there were 33,814,797 common shares outstanding abroad in the form of ADRs (34,314,797 as of December 31, 2013).

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 2014, there were no stock repurchases.
As of March 31, 2014, 7,738,156 common shares (7,971,556 as of December 31, 2013) were held in the Company’s treasury, acquired at an average cost of R$ 14.42 per share.

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$ 20.67 per share. Such shares were used in the Deferred Stock Plan granted to executives of these subsidiaries, as mentioned in Note 8.c).
As a result of the issuance of 12,021,100 new shares occurred on January 31, 2014, the Company recognized an increase in the capital reserves in the amount of R$ 498,812, due to the difference between the value attributable to share capital and the market value of the Ultrapar shares on the date of issue. For further information, see Note 3.a). In addition, the Company incurred costs directly attributable to issuing new shares in the amount of R$ 2,260, reducing the capital reserve amount.
62

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

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.

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. As provided in its Bylaws, the Company may allocate up to 45% of net income to the investments reserve, up to the limit of 100% of the share capital.
The amounts of retention of profits and investments reserve are free of distribution restrictions and totaled R$ 2,371,533 as of March 31, 2014 and December 31, 2013.

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 directly in equity 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.
Actuarial gains and losses relating to post-employment benefits, calculated based on a valuation conducted by an independent actuary, are recognized in shareholders’ equity under caption “valuation adjustments”. Actuarial gains and losses recorded in equity are not reclassified to profit or loss in subsequent periods.
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.
63

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
Balance and changes in other comprehensive income of the Company are as follows:

|  | Valuation adjustments |  |  |  |
|  | Fair value of financial investment available for sale |  |  | Actuarial gains (losses) of post-employment benefits |  |  | Total |  |  | Cumulative translation adjustment |
Balance as of December 31, 2013 |  |  | 5 |  |  |  | 5,423 |  |  |  | 5,428 |  |  |  | 38,076 |
Translation of foreign subsidiaries, including the exchange rate effect of hedge of investments |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6,220 |
Changes in fair value |  |  | 48 |  |  |  | - |  |  |  | 48 |  |  |  | - |
Balance as of March 31, 2014 |  |  | 53 |  |  |  | 5,423 |  |  |  | 5,476 |  |  |  | 44,296 |

|  | Valuation adjustments |  |  |  |
|  | Fair value of financial investment available for sale |  |  | Actuarial gains (losses) of post-employment benefits |  |  | Total |  |  | Cumulative translation adjustment |
Balance as of December 31, 2012 |  |  | 23 |  |  |  | (12,638 | ) |  |  | (12,615 | ) |  |  | 12,621 |
Translation of foreign subsidiaries |  |  | - |  |  |  | - |  |  |  | - |  |  |  | (24,009 | )
Changes in fair value |  |  | 19 |  |  |  | - |  |  |  | 19 |  |  |  | - |
Balance as of March 31, 2013 |  |  | 42 |  |  |  | (12,638 | ) |  |  | (12,596 | ) |  |  | (11,388 | )

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. The proposed dividends payable as of December 31, 2013 in the amount of R$ 389,495 (R$ 0.71 – seventy one cents of Brazilian Real per share), were approved by the Board of Directors on February 19, 2014, having been ratified in the Annual General Shareholders’ Meeting on April 16, 2014 and paid as from March 12, 2014.
64

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

21 | Segment information

The Company operates five main business segments: gas distribution, fuel distribution, chemicals, storage and, as from January 31, 2014, drugstores. 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 drugstores segment (Extrafarma) trades pharmaceutical, hygiene and beauty products, through its own drugstore chain in the states of Pará, Amapá, Maranhão, Piauí, Ceará and Rio Grande do Norte. 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:

|  | 03/31/2014 |  |  | 03/31/2013 |
Net revenue from sales and services: |  |  |  |  |  |
Ultragaz |  |  | 929,200 |  |  |  | 920,059 |
Ipiranga |  |  | 13,921,416 |  |  |  | 11,858,784 |
Oxiteno |  |  | 840,259 |  |  |  | 754,543 |
Ultracargo |  |  | 85,530 |  |  |  | 75,675 |
Extrafarma (1) |  |  | 180,907 |  |  |  | - |
Others (2) |  |  | 9,670 |  |  |  | 8,795 |
Intersegment sales |  |  | (20,118) |  |  |  | (17,888) |
Total |  |  | 15,946,864 |  |  |  | 13,599,968 |
Intersegment sales: |  |  |  |  |  |  |  |
Ultragaz |  |  | 340 |  |  |  | 348 |
Ipiranga |  |  | - |  |  |  | - |
Oxiteno |  |  | 475 |  |  |  | 15 |
Ultracargo |  |  | 9,695 |  |  |  | 8,784 |
Extrafarma (1) |  |  | - |  |  |  | - |
Others (2) |  |  | 9,608 |  |  |  | 8,741 |
Total |  |  | 20,118 |  |  |  | 17,888 |
Net revenue from sales and services, excluding intersegment sales: |  |  |  |  |  |  |  |
Ultragaz |  |  | 928,860 |  |  |  | 919,711 |
Ipiranga |  |  | 13,921,416 |  |  |  | 11,858,784 |
Oxiteno |  |  | 839,784 |  |  |  | 754,528 |
Ultracargo |  |  | 75,835 |  |  |  | 66,891 |
Extrafarma (1) |  |  | 180,907 |  |  |  | - |
Others (2) |  |  | 62 |  |  |  | 54 |
Total |  |  | 15,946,864 |  |  |  | 13,599,968 |

65

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

|  | 03/31/2014 |  |  | 03/31/2013 |
Operating income: |  |  |  |  |  |
Ultragaz |  |  | 27,607 |  |  |  | 30,672 |
Ipiranga |  |  | 368,016 |  |  |  | 322,032 |
Oxiteno |  |  | 75,684 |  |  |  | 48,159 |
Ultracargo |  |  | 28,755 |  |  |  | 24,321 |
Extrafarma (1) |  |  | 8,506 |  |  |  | - |
Others (2) |  |  | (18,269) |  |  |  | 1,290 |
Total |  |  | 490,299 |  |  |  | 426,474 |
Financial income |  |  | 90,426 |  |  |  | 52,937 |
Financial expenses |  |  | (205,195) |  |  |  | (113,559) |
Share of profit of joint-ventures and associates |  |  | (2,567) |  |  |  | (1,959) |
Income before income and social contribution taxes |  |  | 372,963 |  |  |  | 363,893 |

Additions to property, plant and equipment and intangible assets: |  |  |  |  |  |
Ultragaz |  |  | 35,955 |  |  |  | 38,700 |
Ipiranga |  |  | 82,636 |  |  |  | 75,015 |
Oxiteno |  |  | 19,771 |  |  |  | 17,233 |
Ultracargo |  |  | 4,316 |  |  |  | 8,546 |
Extrafarma (1) |  |  | 3,129 |  |  |  | - |
Others (2) |  |  | 3,933 |  |  |  | 1,781 |
Total additions to property, plant and equipment and intangible assets (see Notes 12 and 13) |  |  | 149,740 |  |  |  | 141,275 |
Assets retirement obligation – fuel tanks (see Note 18) |  |  | (145) |  |  |  | (174) |
Capitalized borrowing costs |  |  | (1,344) |  |  |  | (1,719) |
Total investments in property, plant and equipment and intangible assets (cash flow) |  |  | 148,251 |  |  |  | 139,382 |

Depreciation and amortization charges: |  |  |  |  |  |
Ultragaz |  |  | 33,345 |  |  |  | 32,824 |
Ipiranga |  |  | 130,529 |  |  |  | 109,879 |
Oxiteno |  |  | 32,948 |  |  |  | 32,338 |
Ultracargo |  |  | 12,316 |  |  |  | 11,436 |
Extrafarma (1) |  |  | 1,987 |  |  |  | - |
Others (2) |  |  | 3,158 |  |  |  | 2,965 |
Total |  |  | 214,283 |  |  |  | 189,442 |

66

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

|  |  | 03/31/2014 |  |  |  | 12/31/2013 |
Total assets (excluding intersegment sales): |  |  |  |  |  |  |  |
Ultragaz |  |  | 2,510,019 |  |  |  | 2,502,590 |
Ipiranga |  |  | 8,139,102 |  |  |  | 8,077,204 |
Oxiteno |  |  | 3,968,751 |  |  |  | 4,030,122 |
Ultracargo |  |  | 1,328,923 |  |  |  | 1,320,344 |
Extrafarma |  |  | 437,234 |  |  |  | - |
Others (2) |  |  | 1,252,789 |  |  |  | 448,285 |
Total |  |  | 17,636,818 |  |  |  | 16,378,545 |

(1) Information of the period from February 1st to March 31, 2014. See Note 3.a).
(2) Composed of the parent company Ultrapar (including certain goodwill) and subsidiaries Serma and Imaven Imóveis Ltda.
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:

|  | 03/31/2014 |  |  | 12/31/2013 |
United States of America |  |  | 106,335 |  |  |  | 109,451 |
Mexico |  |  | 88,712 |  |  |  | 85,610 |
Uruguay |  |  | 48,448 |  |  |  | 50,304 |
Venezuela |  |  | 24,935 |  |  |  | 24,834 |

The Company generates revenue from operations in Brazil, Mexico, United Stated of America, Uruguay and Venezuela, as well as from exports of products to foreign customers, as disclosed below:

|  | 03/31/2014 |  |  | 03/31/2013 |
Net revenue: |  |  |  |  |  |
Brazil |  |  | 15,726,692 |  |  |  | 13,387,159 |
Mexico |  |  | 34,350 |  |  |  | 30,825 |
Venezuela |  |  | 17,976 |  |  |  | 31,349 |
Other Latin American countries |  |  | 84,539 |  |  |  | 82,960 |
United States of America and Canada |  |  | 35,091 |  |  |  | 30,760 |
Far East |  |  | 12,224 |  |  |  | 8,702 |
Europe |  |  | 23,209 |  |  |  | 19,039 |
Others |  |  | 12,783 |  |  |  | 9,174 |
Total |  |  | 15,946,864 |  |  |  | 13,599,968 |

67

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

22 | 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.

68

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 and net investments in foreign operations, 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 March 31, 2014 and December 31, 2013:
Assets and liabilities in foreign currencies

In million of Brazilian Reais |  | 03/31/2014 |  |  | 12/31/2013 |
Assets in foreign currency |  |  |  |  |  |
Cash, cash equivalents and financial investments in foreign currency (except hedging instruments) |  |  | 446.2 |  |  |  | 457.2 |
Foreign trade receivables, net of allowance for doubtful accounts |  |  | 170.4 |  |  |  | 156.0 |
Net investments in foreign subsidiaries (except cash, cash equivalents, financial investments, trade receivables, financing and payables) |  |  | 433.8 |  |  |  | 443.4 |
|  |  | 1,050.4 |  |  |  | 1,056.6 |
Liabilities in foreign currency |  |  |  |  |  |  |  |
Financing in foreign currency |  |  | (1,240.0) |  |  |  | (1,294.9) |
Payables arising from imports, net of advances to foreign suppliers |  |  | (27.2) |  |  |  | (45.3) |
|  |  | (1,267.2) |  |  |  | (1,340.2) |
Foreign currency hedging instruments |  |  | 444.6 |  |  |  | 427.1 |
Net asset position – Total |  |  | 227.8 |  |  |  | 143.5 |

69

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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$ 227.8 million in foreign currency:

In million of Brazilian Reais | Risk |  | Scenario I |  |  | Scenario II |  |  | Scenario III |
|  |  |  | 10% |  |  |  | 25% |  |  |  | 50% |
(1) Income effect | Real devaluation |  |  | 3.6 |  |  |  | 8.9 |  |  |  | 17.9 |
(2) Equity effect |  |  |  | 19.2 |  |  |  | 48.0 |  |  |  | 96.0 |
(1) + (2) | Net effect |  |  | 22.8 |  |  |  | 56.9 |  |  |  | 113.9 |
(3) Income effect | Real appreciation |  |  | (3.6) |  |  |  | (8.9) |  |  |  | (17.9) |
(4) Equity effect |  |  |  | (19.2) |  |  |  | (48.0) |  |  |  | (96.0) |
(3) + (4) | Net effect |  |  | (22.8) |  |  |  | (56.9) |  |  |  | (113.9) |

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).
70

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 March 31, 2014, 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 March 31, 2014 and December 31, 2013:
In million of Brazilian Reais

| Note | 03/31/2014 |  |  |  | 12/31/2013 |
CDI |  |  |  |  |  |  |
Cash equivalents | 4 | 1,893.9 |  |  |  | 2,051.1 |
Financial investments | 4 | 668.9 |  |  |  | 747.3 |
Asset position of hedging instruments - CDI | 22 | 114.2 |  |  |  | 112.3 |
Loans and debentures | 14 | (5,008.6 | ) |  |  | (3,862.0 | )
Liability position of hedging instruments - CDI | 22 | (498.4 | ) |  |  | (452.5 | )
Liability position of hedging instruments from pre-fixed interest to CDI | 22 | (451.4 | ) |  |  | (854.6 | )
Net liability position in CDI |  | (3,281.4 | ) |  |  | (2,258.4 | )
TJLP |  |  |  |  |  |
Loans –TJLP | 14 | (600.8 | ) |  |  | (640.5 | )
Net liability position in TJLP |  | (600.8 | ) |  |  | (640.5 | )
LIBOR |  |  |  |  |  |
Asset position of hedging instruments - LIBOR | 22 | 317.1 |  |  |  | 329.7 |
Loans - LIBOR | 14 | (359.6 | ) |  |  | (374.4 | )
Net liability position in LIBOR |  | (42.5 | ) |  |  | (44.7 | )
TIIE |  |  |  |  |  |
Loans - TIIE | 14 | (28.7 | ) |  |  | (31.2 | )
Net liability position in TIIE |  | (28.7 | ) |  |  | (31.2 | )
Total net liability position |  | (3,953.4 | ) |  |  | (2,974.8 | )

71

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 March 31, 2014, due the effect of floating interest rate changes in different scenarios:

In million 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 |  |  | 7.4 |  |  |  | 18.3 |  |  |  | 36.6 |
Hedge instruments (assets in CDI) effect | Increase in CDI |  |  | 0.2 |  |  |  | 0.5 |  |  |  | 1.0 |
Interest on debt effect | Increase in CDI |  |  | (12.4) |  |  |  | (31.0) |  |  |  | (62.0) |
Hedge instruments (liability in CDI) effect | Increase in CDI |  |  | (2.3) |  |  |  | (5.9) |  |  |  | (11.7) |
Incremental expenses |  |  |  | (7.1) |  |  |  | (18.1) |  |  |  | (36.1) |
Interest on debt effect | Increase in TJLP |  |  | (0.8) |  |  |  | (1.9) |  |  |  | (3.8) |
Incremental expenses |  |  |  | (0.8) |  |  |  | (1.9) |  |  |  | (3.8) |
Hedge instruments (assets in LIBOR) effect | Increase in LIBOR |  |  | - |  |  |  | 0.1 |  |  |  | 0.1 |
Interest on debt effect | Increase in LIBOR |  |  | - |  |  |  | (0.1) |  |  |  | (0.1) |
Incremental expenses |  |  |  | - |  |  |  | - |  |  |  | - |
Interest on debt effect | Increase in TIIE |  |  | - |  |  |  | (0.1) |  |  |  | (0.1) |
Incremental expenses |  |  |  | - |  |  |  | (0.1) |  |  |  | (0.1) |

72

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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:

|  | 03/31/2014 |  |  | 12/31/2013 |
Ipiranga |  |  | 126,420 |  |  |  | 121,205 |
Ultragaz |  |  | 21,841 |  |  |  | 20,793 |
Extrafarma |  |  | 5,784 |  |  |  | - |
Ultracargo |  |  | 2,513 |  |  |  | 2,513 |
Oxiteno |  |  | 2,498 |  |  |  | 2,569 |
Total |  |  | 159,056 |  |  |  | 147,080 |

73

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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$ 1,962.0 million, including estimated interests on loans. Furthermore, the investment plan for 2014 totals R$ 1,484.0 million. On March 31, 2014, the Company and its subsidiaries had R$ 3,184.3 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 March 31, 2014 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 March 31, 2014.

|  |  |  |  |  | In million of Brazilian Reais |
Financial liabilities |  | Total |  |  | Less than 1 year |  |  | Between 1 and 3 years |  |  | Between 3 and 5 years |  |  | More than 5 years |
Loans including future contractual interest (1) (2) |  |  | 10,029.6 |  |  |  | 1,962.0 |  |  |  | 4,003.9 |  |  |  | 2,342.3 |  |  |  | 1,721.4 |
Currency and interest rate hedging instruments (3) |  |  | 41.0 |  |  |  | 25.4 |  |  |  | 15.6 |  |  |  | - |  |  |  | - |
Trade payables |  |  | 975.5 |  |  |  | 975.5 |  |  |  | - |  |  |  | - |  |  |  | - |

(1) To calculate the estimated interest on loans some macroeconomic assumptions were used, including, on average for the period: (i) CDI of 12.3% p.a., (ii) exchange rate of the Real against the U.S. dollar of R$ 2.35 in 2014, R$ 2.56 in 2015, R$ 2.83 in 2016, R$ 3.09 in 2017 and R$ 3.35 in 2018 (iii) TJLP of 5.0% p.a. and (iv) IGP-M of 7.0% in 2014, 6.8% in 2015, 6.3% in 2016, 6.3% in 2017 and 6.3% in 2018 (source: BM&FBOVESPA, Bulletin Focus and financial institutions).
(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 March 31, 2014, and on the futures curve of LIBOR (ICE - IntercontinentalExchange) on March 31, 2014. In the table above, only the hedging instruments with negative result at the time of settlement were considered.
74

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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.
75

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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:

|  |  | Notional amount 1 | Fair value | Amounts receivable | Amounts payable
Hedging instruments | Counterparty | Maturity
|  |  | 03/31/2014 | 12/31/2013 |  | 03/31/2014 | 12/31/2013 |  | 03/31/2014
|  |  |  |  |  | R$ million | R$ million |  | R$ million | R$ million
a –Exchange rate swaps receivable in U.S. dollars | Bradesco, BTMU, Citibank, HSBC, Itaú, JP Morgan, Santander |  |  |  |  |  |  |  |  |
Receivables in U.S. dollars (LIBOR) | Apr 2014 to Apr 2017 | US$ 140.0 | US$ 140.0 |  | 317.1 | 329.7 |  | 317.1 | -
Receivables in U.S. dollars (Fixed) | US$ 104.2 | US$ 87.4 |  | 240.3 | 212.8 |  | 240.3 | -
Payables in CDI interest rate | US$ (244.2) | US$ (227.4) |  | (498.4) | (452.5) |  | - | 498.4
Total result | - | - |  | 59.0 | 90.0 |  | 557.4 | 498.4
b.1 and b.2 – Exchange rate swaps payable in U.S. dollars + COUPON | Bradesco, HSBC, Itaú | Apr 2014 to Jun 2014 |  |  |  |  |  |  |  |
Receivables in CDI interest rates | US$ 49.8 | US$ 48.1 |  | 114.2 | 112.3 |  | 114.2 | -
Payables in U.S. dollars (Fixed) | US$ (49.8) | US$ (48.1) |  | (112.8) | (115.4) |  | - | 112.8
Total result | - | - |  | 1.4 | (3.1) |  | 114.2 | 112.8
c – Interest rate swaps in R$ | Banco do Brasil, Itaú | May 2015 to Aug 2016 |  |  |  |  |  |  |  |
Receivables in fixed interest rate | R$ 327.5 | R$ 627.5 |  | 492.9 | 937.0 |  | 492.9 | -
Payables in CDI interest rate | R$ (327.5) | R$ (627.5) |  | (451.4) | (854.6) |  | - | 451.4
Total result | - | - |  | 41.5 | 82.4 |  | 492.9 | 451.4
Total gross result |  |  |  |  |  | 101.9 | 169.3 |  | 1,164.5 | 1,062.6
Income tax |  |  |  |  |  | (16.1) | (24.3) |  | (16.1) | -
Total net result |  |  |  |  |  | 85.8 | 145.0 |  | 1,148.4 | 1,062.6
Positive result (see Note 4) |  |  |  |  |  | 95.5 | 151.6 |  |  |
Negative result (see Note 14) |  |  |  |  |  | (9.7) | (6.6) |  |  |

(1) In million. Currency as indicated.
All transactions mentioned above were properly registered with CETIP S.A.
76

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
Hedging instruments existing as of March 31, 2014 are described below, according to their category, risk, and hedging 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 March 31, 2014, the Company and its subsidiaries had outstanding swap contracts totaling US$ 244.2 million in notional amount with liability position, on average of 101.1% of CDI, of which US$ 104.2 million, on average, had asset position at US$ + 3.45% p.a. and US$ 140.0 million had asset position at US$ + LIBOR + 1.0% p.a.
b.1 - 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 during their operating cycles. As of March 31, 2014, these swap contracts totaled US$ 13.8 million and, on average, had an asset position at 79.8% of CDI and liability position at US$ + 0.0% p.a.
b.2 - Hedging against foreign exchange exposure of net investments in foreign operations - The purpose of these contracts is to minimize the effect of exchange variation of investments in foreign subsidiaries with functional currencies different from the functional currency of the Company, turning them into investments in Brazilian Reais. On March 31, 2014, the Company and its subsidiaries had outstanding swap contracts totaling US$ 36.0 million in notional amount with asset position at 94.6% of CDI and liability position of 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 March 31, 2014 these swap contracts totaled R$ 327.5 million of notional amount corresponding to principal amount of related debt, and on average had an asset position at 11.8% p.a. and liability position at 98.6% 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 March 31, 2014 the notional amount of interest rate hedging instruments totaled R$ 327.5 million referring to the principal of the pre-fixed loans in Brazilian Reais. As of March 31, 2014, a loss of R$ 1.0 million related to the result of hedging instruments, an income of R$ 7.6 million related to the fair value adjustment of debt and an expense of R$ 17.4 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 98.6% of CDI.
On March 31, 2014 the notional amount of foreign exchange hedging instruments designated as fair value hedge totaled US$ 80.0 million. For the three-month period ended March 31, 2014, an expense of R$ 11.5 million related to the result of hedging instruments, a gain of R$ 1.7 million related to the fair value adjustment of debt and a gain of R$ 5.8 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).
On March 31, 2014 the notional amount of exchange rate hedging instruments designated as hedges of net investment in a foreign operation totaled US$ 36 million relating to the portion of investments in entities which have functional currency different from the Real. In 2014 a gain of R$ 3.2 million was recorded. The exchange rate on investment and the hedging instrument effects were offset in equity.
77

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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, which affected the shareholders’ equity as of March 31, 2014 and December 31, 2013 and income statement as of March 31, 2014 and 2013 of the Company and its subsidiaries:

|  | 03/31/2014 |
|  | R$ million |
|  | Profit or loss |  |  | Equity |
a – Exchange rate swaps receivable in U.S. dollars (i) (ii) |  |  | (10.8 | ) |  |  | - |
b – Exchange rate swaps payable in U.S. dollars (ii) |  |  | 5.8 |  |  |  | 2.9 |
c – Interest rate swaps in R$ (iii) |  |  | 6.6 |  |  |  | - |
Total |  |  | 1.6 |  |  |  | 2.9 |

|  | R$ million |
|  | 03/31/2013 |  |  | 12/31/2013 |
|  | Profit or loss |  |  | Equity |
a – Exchange rate swaps receivable in U.S. dollars (i) (ii) |  |  | (8.7 | ) |  |  | - |
b – Exchange rate swaps payable in U.S. dollars (ii) |  |  | 0.5 |  |  |  | - |
c – Interest rate swaps in R$ (iii) |  |  | 22.0 |  |  |  | - |
Total |  |  | 13.8 |  |  |  | - |

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.
78

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 March 31, 2014 and December 31, 2013, are stated below:

|  |  |  |  |  | 03/31/2014 |  |  | 12/31/2013 |
| Category |  | Note |  |  | Carrying value |  |  | Fair value |  |  | Carrying value |  |  | Fair value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and bank deposits | Loans and receivables |  | 4 |  |  |  | 259,577 |  |  |  | 259,577 |  |  |  | 224,926 |  |  |  | 224,926 |
Financial investments in local currency | Measured at fair value through profit or loss |  | 4 |  |  |  | 1,893,942 |  |  |  | 1,893,942 |  |  |  | 2,051,143 |  |  |  | 2,051,143 |
Financial investments in foreign currency | Measured at fair value through profit or loss |  | 4 |  |  |  | 2,722 |  |  |  | 2,722 |  |  |  | - |  |  |  | - |
Financial investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities and funds in local currency | Available for sale |  | 4 |  |  |  | 658,318 |  |  |  | 658,318 |  |  |  | 736,638 |  |  |  | 736,638 |
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 |  |  |  | 375,500 |  |  |  | 375,500 |  |  |  | 368,781 |  |  |  | 368,781 |
Currency and interest rate hedging instruments | Measured at fair value through profit or loss |  | 4 |  |  |  | 95,528 |  |  |  | 95,528 |  |  |  | 151,594 |  |  |  | 151,594 |
Total |  |  |  |  |  |  | 3,294,205 |  |  |  | 3,294,205 |  |  |  | 3,543,700 |  |  |  | 3,543,700 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financing | Measured at fair value through profit or loss |  | 14 |  |  |  | 668,144 |  |  |  | 668,144 |  |  |  | 1,118,281 |  |  |  | 1,118,281 |
Financing | Measured at amortized cost |  | 14 |  |  |  | 4,645,599 |  |  |  | 4,626,808 |  |  |  | 4,340,967 |  |  |  | 4,373,680 |
Debentures | Measured at amortized cost |  | 14 |  |  |  | 2,239,899 |  |  |  | 2,225,682 |  |  |  | 1,459,412 |  |  |  | 1,456,282 |
Finance leases | Measured at amortized cost |  | 14 |  |  |  | 46,060 |  |  |  | 46,060 |  |  |  | 44,391 |  |  |  | 44,391 |
Currency and interest rate hedging instruments | Measured at fair value through profit or loss |  | 14 |  |  |  | 9,717 |  |  |  | 9,717 |  |  |  | 6,575 |  |  |  | 6,575 |
Subscription warrants – working capital | Measured at fair value through profit or loss |  | 3.a |  |  |  | 44,005 |  |  |  | 44,005 |  |  |  | - |  |  |  | - |
Subscription warrants – indemnification | Measured at fair value through profit or loss |  | 3.a |  |  |  | 115,099 |  |  |  | 115,099 |  |  |  | - |  |  |  | - |
Total |  |  |  |  |  |  | 7,768,523 |  |  |  | 7,735,515 |  |  |  | 6,969,626 |  |  |  | 6,999,209 |

79

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 subscription warrants – working capital and subscription warrants – indemnification are based on the share price of Ultrapar (UGPA3) at the reporting date.

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 March 31, 2014 and December 31, 2013. 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) loans and financing measured at fair value through profit or loss (see Note 14), (v) guarantees to customers that have vendor arrangements (see Note 14.l), which are measured at fair value through profit or loss and (vi) subscription warrants – working capital and subscription warrants – indemnification, 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.
80

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 March 31, 2014 and December 31, 2013:

| Category | Note |  | 03/31/2014 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial investments in local currency | Measured at fair value through profit or loss | 4 |  |  | 1,893,942 |  |  |  | 1,893,942 |  |  |  | - |  |  |  | - |
Financial investments in foreign currency | Measured at fair value through profit or loss | 4 |  |  | 2,722 |  |  |  | 2,722 |  |  |  | - |  |  |  | - |
Financial investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities and funds in local currency | Available for sale | 4 |  |  | 658,318 |  |  |  | 658,318 |  |  |  | - |  |  |  | - |
Fixed-income securities and funds in foreign currency | Available for sale | 4 |  |  | 373,500 |  |  |  | 138,496 |  |  |  | 235,004 |  |  |  | - |
Currency and interest rate hedging instruments | Measured at fair value through profit or loss | 4 |  |  | 95,528 |  |  |  | - |  |  |  | 95,528 |  |  |  | - |
Total |  |  |  |  | 3,024,010 |  |  |  | 2,693,478 |  |  |  | 330,532 |  |  |  | - |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financing | Measured at fair value through profit or loss | 14 |  |  | 668,144 |  |  |  | - |  |  |  | 668,144 |  |  |  | - |
Currency and interest rate hedging instruments | Measured at fair value through profit or loss | 14 |  |  | 9,717 |  |  |  | - |  |  |  | 9,717 |  |  |  | - |
Subscription warrants – working capital (1) | Measured at fair value through profit or loss | 3.a |  |  | 44,005 |  |  |  | - |  |  |  | 44,005 |  |  |  | - |
Subscription warrants – indemnification (1) | Measured at fair value through profit or loss | 3.a |  |  | 115,099 |  |  |  | - |  |  |  | 115,099 |  |  |  | - |
Total |  |  |  |  | 839,965 |  |  |  | - |  |  |  | 836,965 |  |  |  | - |

81

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

| Category | Note |  | 12/31/2013 |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial investments in local currency | Measured at fair value through profit or loss | 4 |  |  | 2,051,143 |  |  |  | 2,051,143 |  |  |  | - |  |  |  | - |
Financial investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed-income securities and funds in local currency | Available for sale | 4 |  |  | 736,638 |  |  |  | 736,638 |  |  |  | - |  |  |  | - |
Fixed-income securities and funds in foreign currency | Available for sale | 4 |  |  | 368,781 |  |  |  | - |  |  |  | 368,781 |  |  |  | - |
Currency and interest rate hedging instruments | Measured at fair value through profit or loss | 4 |  |  | 151,594 |  |  |  | - |  |  |  | 151,594 |  |  |  | - |
Total |  |  |  |  | 3,308,156 |  |  |  | 2,787,781 |  |  |  | 520,375 |  |  |  | - |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financing | Measured at fair value through profit or loss | 14 |  |  | 1,118,281 |  |  |  | - |  |  |  | 1,118,281 |  |  |  | - |
Currency and interest rate hedging instruments | Measured at fair value through profit or loss | 14 |  |  | 6,575 |  |  |  | - |  |  |  | 6,575 |  |  |  | - |
Total |  |  |  |  | 1,124,856 |  |  |  | - |  |  |  | 1,124,856 |  |  |  | - |

1) Refer to subscription warrants issued by the Company in the Extrafarma acquisition that, if exercised, may lead to the issuance of up to 4,007,031 shares in the future, broken into 801,409 shares related to subscription warrants – working capital and 3,205,622 shares related to subscription warrants – indemnification. The subscription warrants are measured using the price of the shares issued by the Ultrapar (UGPA3) on the reporting date. The subscription warrants – indemnification are also adjusted to the Company’s dividend yield, since the exercise is only possible from 2020 onwards and they are not entitled to dividends. The number of shares of subscription warrants – indemnification is adjusted according to the changes in the amounts of provision for tax, civil and labor risks and contingent liabilities related to the period previous to January 31, 2014. For further information of the Extrafarma acquisition, see Note 3.a).
82

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
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 March 31, 2014. As a reference, the exchange rate for the last maturity of foreign exchange hedging instruments is R$ 3.04 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.
Based on the balances of the hedging instruments and hedged items as of March 31, 2014, the exchange rates were replaced, and the changes between the new balance in Brazilian Reais and the balance in Brazilian Reais as of March 31, 2014 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 |  | Scenario I (likely) |  |  | Scenario II |  |  | Scenario III |
Currency swaps receivable in U.S. dollars |  |  |  |  |  |  |  |  |  |
(1) U.S. Dollar / Real swaps | Dollar |  |  | 67,855 |  |  |  | 223,501 |  |  |  | 379,147 |
(2) Debts/firm commitments in dollars | appreciation |  |  | (67,837) |  |  |  | (223,495) |  |  |  | (379,153) |
(1)+(2) | Net effect |  |  | 18 |  |  |  | 6 |  |  |  | (6) |
Currency swaps payable in U.S. dollars |  |  |  |  |  |  |  |  |  |  |  |  |
(3) Real / U.S. Dollar swaps | Dollar |  |  | (1,076) |  |  |  | 23,379 |  |  |  | 55,833 |
(4) Gross margin of Oxiteno | devaluation |  |  | 1,076 |  |  |  | (23,379) |  |  |  | (55,833) |
(3)+(4) | Net effect |  |  | - |  |  |  | - |  |  |  | - |

83

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
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 March 31, 2014 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 |  | Scenario I (likely) |  |  | Scenario II |  |  | Scenario III |
Interest rate swap (in R$) |  |  |  |  |  |  |  |  |  |
(1) Fixed rate swap - CDI | Decrease in |  |  | - |  |  |  | 15,525 |  |  |  | 32,009 |
(2) Fixed rate financing | Pre-fixed rate |  |  | - |  |  |  | (15,525 | ) |  |  | (32,009 | )
(1)+(2) | Net effect |  |  | - |  |  |  | - |  |  |  | - |

84

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

23 | 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 |  | Balance in 12/31/2013 |  |  | Initial balance Extrafarma |  |  | Additions |  |  | Write-offs |  |  | Monetary restatement |  |  | Balance in 03/31/2014 |
IRPJ and CSLL |  |  | 360,861 |  |  |  | 10,630 |  |  |  | 9,807 |  |  |  | - |  |  |  | 6,097 |  |  |  | 387,395 |
PIS and COFINS |  |  | 86,512 |  |  |  | 25,540 |  |  |  | - |  |  |  | - |  |  |  | 1,425 |  |  |  | 113,477 |
ICMS |  |  | 33,113 |  |  |  | 7,385 |  |  |  | - |  |  |  | (3,272 | ) |  |  | 481 |  |  |  | 37,707 |
INSS |  |  | 6,251 |  |  |  | - |  |  |  | 104 |  |  |  | - |  |  |  | 91 |  |  |  | 6,446 |
Civil litigation |  |  | 90,886 |  |  |  | 778 |  |  |  | 3,075 |  |  |  | (1,024 | ) |  |  | 33 |  |  |  | 93,748 |
Labor litigation |  |  | 60,174 |  |  |  | 1,866 |  |  |  | 1,148 |  |  |  | (1,844 | ) |  |  | 521 |  |  |  | 61,865 |
Other |  |  | 1,223 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 20 |  |  |  | 1,243 |
Total |  |  | 639,020 |  |  |  | 46,199 |  |  |  | 14,134 |  |  |  | (6,140 | ) |  |  | 8,668 |  |  |  | 701,881 |
Current |  |  | 69,306 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 68,061 |
Non-current |  |  | 569,714 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 633,820 |

Some of the tax provisions above involve escrow deposits in the amount of R$ 468,344 as of March 31, 2014 (R$ 456,075 as of December 31, 2013).

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$ 359,536 as of March 31, 2014 (R$ 345,513 as of December 31, 2013) 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$ 20,014 as of March 31, 2014 (R$ 19,806 as of December 31, 2013).
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$ 87,731 as of March 31, 2014 (R$ 86,306 as of December 31, 2013). The decisions of these and all claims involving this issue are suspended owing to the granting of injunctive relief on the Declaration of Constitutionality Action No. 18.
85

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)
The subsidiary IPP has provision related to ICMS, mainly with respect to several reasons that resulted in tax assessments for which the proof of payment is not so evident, R$ 19,867 as of March 31, 2014 (R$ 19,449 as of December 31, 2013).
Contingent 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 ICMS, and mainly, 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$ 115,755 as of March 31, 2014 (R$ 113,555 as of December 31, 2013), (b) alleged undue ICMS credits for which the tax authorities understand that there was no proof of origin, R$ 29,644 as of March 31, 2014 (R$ 29,565 as of December 31, 2013), (c) assessments for alleged non-payment of ICMS, R$ 25,980 as of March 31, 2014 (R$ 25,576 as of December 31, 2013), (d) assessment issued in Ourinhos/SP in connection with the return of ethanol loans made with deferred tax, R$ 41,941 as of March 31, 2014 (R$ 40,848 as of December 31, 2013), (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 (the Brazilian Federal Court of Justice), R$ 17,366 as of March 31, 2014 (R$ 17,222 as of December 31, 2013), (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$ 27,312 as of March 31, 2014 (R$ 27,215 as of December 31, 2013); (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$ 47,720 as of March 31, 2014 (R$ 47,106 as of December 31, 2013), (h) infraction relating to ICMS credits due to alleged non-compliance with legal formalities, R$ 36, 649 as of March 31, 2014 (R$ 36,398 as of December 31, 2013) 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$ 30,758 as of March 31, 2014 (R$ 30,726 as of December 31, 2013); (j) assessments that consider various possible breaches of auxiliary obligations, among them the alleged lack of issuance of invoices, the alleged failure of delivery or delivery with errors of informative reports to the tax authorities, errors in the filling of DANFE - Auxiliary Document Electronic Invoice, among others, R$ 11,813 as of March 31, 2014 (R$ 11,806 as of December 31, 2013); and (k) infraction notice for non-payment of ICMS related to the acquisition of basic lubricating oil, whose remittance was deferred to the time of the subsequent industrialized output relating to interstate transactions (covered by the constitutional non-incidence - article 155, X, ‘b’ of the Federal Constitution), R$ 10,884 as of March 31, 2014 (R$ 10,657 as of December 31, 2013).
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 classified as a possible risk of loss, as of March 31, 2014, is R$ 143,055 (R$ 117,697 as of December 31, 2013).
Contingent 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$ 36,197, net of attorney’s fees.
86

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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$ 93,748 as of March 31, 2014 (R$ 90,886 as of December 31, 2013).
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$ 61,865 as of March 31, 2014 (R$ 60,174 as of December 31, 2013) 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 March 31, 2014.
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.
87

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 March 31, 2014, 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 March 31, 2014 and 2013, 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. The subsidiary has met the minimum purchase required in the agreement.

|  | Minimum purchase commitment |  |  | Accumulated demand (actual) |
|  | 03/31/2014 |  |  | 03/31/2013 |  |  | 03/31/2014 |  |  | 03/31/2013 |
In tons of ethylene |  |  | 52,048 |  |  |  | 50,548 |  |  |  | 52,196 |  |  |  | 54,187 |

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. The minimum purchase commitment and the actual demand accumulated to March 31, 2014 and 2013, 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 30% of the current ethylene price for the quantity not purchased. The subsidiary has met the minimum purchase required in the agreement.

|  | Minimum purchase commitment |  |  | Accumulated demand (actual) |
|  | 03/31/2014 |  |  | 03/31/2013 |  |  | 03/31/2014 |  |  | 03/31/2013 |
In tons of ethylene |  |  | 10,964 |  |  |  | 10,964 |  |  |  | 10,471 |  |  |  | 10,722 |

88

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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 losses and damage from 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 possible losses of each business are shown below:

| Maximum compensation value (*) |
Oxiteno | US$ 1,202 |
Ultragaz | R$ 152 |
Ipiranga | R$ 740 |
Ultracargo | R$ 550 |
Extrafarma | R$ 116 |

(*) In million. 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.
The Company maintains liability insurance policies for directors and executive officers (D&O) to indemnify the members of the Board of 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.
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.
89

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated 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, Bahiana and Extrafarma 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:

|  | Up to 1 year |  |  | Between 1 and 5 years |  |  | More than 5 years |  |  | Total |
March 31, 2014 |  |  | 24,558 |  |  |  | 25,545 |  |  |  | - |  |  |  | 50,103 |

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

|  |  | Up to 1 year |  |  | Between 1 and 5 years |  |  | More than 5 years |  |  | Total |
March 31, 2014 | payable |  |  | (77,982) |  |  |  | (231,272) |  |  |  | (129,247) |  |  |  | (438,501) |
| receivable |  |  | 47,679 |  |  |  | 143,757 |  |  |  | 86,843 |  |  |  | 278,279 |

The expense recognized for the three-month period ended March 31, 2014 for operating leases was R$ 15,198 (R$ 10,158 for the three-month period ended March 31, 2013), net of income.
90

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

24. | 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 - Associaçăo 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 amount 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. For the three-month period ended March 31, 2014, the Company and its subsidiaries contributed R$ 4,868 (R$ 4,379 for the three-month period ended March 31, 2013) to Ultraprev, which amount is recognized as expense in the income statement. The total number of participating employees as of March 31, 2014 was 6,785 active participants and 121 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 as of December 31, 2013 and are recognized in the interim financial information in accordance with IAS 19 R2011 (CPC 33 R2).

|  | 03/31/2014 |  |  | 12/31/2013 |
Health and dental care plan |  |  | 32,953 |  |  |  | 32,028 |
FGTS Penalty |  |  | 45,005 |  |  |  | 43,349 |
Bonus |  |  | 21,335 |  |  |  | 20,545 |
Life insurance |  |  | 15,802 |  |  |  | 15,374 |
Total |  |  | 115,095 |  |  |  | 111,296 |
Current |  |  | 11,922 |  |  |  | 11,922 |
Non-current |  |  | 103,173 |  |  |  | 99,374 |

91

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

25 | Revenue from sale and services (Consolidated)

|  | 03/31/2014 |  |  | 03/31/2013 |
Gross revenue from sale |  |  | 16,286,765 |  |  |  | 13,896,548 |
Gross revenue from services |  |  | 141,194 |  |  |  | 119,845 |
Sales tax |  |  | (395,949) |  |  |  | (343,566) |
Discounts and sales returns |  |  | (83,590) |  |  |  | (72,831) |
Deferred revenue (see Note 19) |  |  | (1,556) |  |  |  | (28) |
Net revenue from sales and services |  |  | 15,946,864 |  |  |  | 13,599,968 |

92

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

26 | Expenses by nature (Consolidated)

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

|  | 03/31/2014 |  |  | 03/31/2013 |
Raw materials and materials for use and consumption |  |  | 14,412,245 |  |  |  | 12,308,277 |
Personnel expenses |  |  | 396,319 |  |  |  | 321,006 |
Freight and storage |  |  | 239,932 |  |  |  | 210,813 |
Depreciation and amortization |  |  | 214,283 |  |  |  | 189,442 |
Services provided by third parties |  |  | 61,978 |  |  |  | 33,219 |
Advertising and marketing |  |  | 54,032 |  |  |  | 42,483 |
Lease of real estate and equipment |  |  | 25,654 |  |  |  | 19,643 |
Other expenses |  |  | 79,164 |  |  |  | 69,858 |
Total |  |  | 15,483,607 |  |  |  | 13,194,741 |
Classified as: |  |  |  |  |  |  |  |
Cost of products and services sold |  |  | 14,674,871 |  |  |  | 12,536,382 |
Selling and marketing |  |  | 504,836 |  |  |  | 414,646 |
General and administrative |  |  | 303,900 |  |  |  | 243,713 |
Total |  |  | 15,483,607 |  |  |  | 13,194,741 |

Research and development expenses are recognized in the income statements and amounted to R$ 8,452 for the three-month period ended March 31, 2014 (R$ 6,097 for the three-month period ended March 31, 2013).

27 | Other operating income, net (Consolidated)

|  | 03/31/2014 |  |  | 03/31/2013 |
Promotions |  |  | 8,444 |  |  |  | 6,185 |
Merchandising |  |  | 8,029 |  |  |  | 8,433 |
Loyalty program |  |  | 1,658 |  |  |  | 337 |
Others |  |  | 1,883 |  |  |  | 758 |
Other operating income, net |  |  | 20,014 |  |  |  | 15,713 |

93

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

28 | 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. For the three-month period ended March 31, 2014, the gain was of R$ 7,028 (gain of R$ 5,534 for the three-month period ended March 31, 2013), represented primarily from disposal of property, plant and equipment.

29 | Financial income (expense)

|  | Parent |  |  | Consolidated |
|  | 03/31/2014 |  |  | 03/31/2013 |  |  | 03/31/2014 |  |  | 03/31/2013 |
Financial income: |  |  |  |  |  |  |  |  |  |  |  |
Interest on financial investments |  |  | 29,996 |  |  |  | 20,541 |  |  |  | 74,389 |  |  |  | 35,690 |
Interest from customers |  |  | - |  |  |  | - |  |  |  | 15,035 |  |  |  | 15,007 |
Other financial income |  |  | - |  |  |  | - |  |  |  | 1,002 |  |  |  | 2,240 |
|  |  | 29,996 |  |  |  | 20,541 |  |  |  | 90,426 |  |  |  | 52,937 |
Financial expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on loans |  |  | - |  |  |  | - |  |  |  | (108,554) |  |  |  | (70,022) |
Interest on debentures |  |  | (22,917) |  |  |  | (15,622) |  |  |  | (57,499) |  |  |  | (26,189) |
Interest on finance leases |  |  | - |  |  |  | - |  |  |  | (624) |  |  |  | (606) |
Bank charges, financial transactions tax and other charges |  |  | 639 |  |  |  | (1,495) |  |  |  | (11,177) |  |  |  | (6,409) |
Exchange variation, net of gains and losses with derivative instruments |  |  | - |  |  |  | - |  |  |  | (18,025) |  |  |  | (8,350) |
Changes in subscription warranty (see Note 3.a) |  |  | (8,401) |  |  |  | - |  |  |  | (8,401) |  |  |  | - |
Monetary restatement of provisions, net, and other financial expenses |  |  | (4) |  |  |  | (3) |  |  |  | (915) |  |  |  | (1,983) |
|  |  | (30,683) |  |  |  | (17,120) |  |  |  | (205,195) |  |  |  | (113,559) |
Financial income (expense) |  |  | (687) |  |  |  | 3,421 |  |  |  | (114,769) |  |  |  | (60,622) |

94

Ultrapar Participações S.A. and Subsidiaries
Notes to the individual and consolidated interim financial information
(In thousands of Brazilian Reais, unless otherwise stated)

30 | Earnings per share (Parent and Consolidated)

The table below presents a reconciliation of numerators and denominators used in computing earnings per share. The Company has subscription warrants and Deferred Stock Plan, as mentioned in Notes 3.a) and 8.c), respectively.

Basic earnings per share |  | 03/31/2014 |  |  | 03/31/2013
Net income for the period of the Company |  |  | 246,923 |  |  |  | 244,837 |
Weighted average shares outstanding (in thousands) |  |  | 542,670 |  |  |  | 534,042 |
Basic earnings per share –R$ |  |  | 0.4550 |  |  |  | 0.4585 |

Diluted earnings per share |  | 03/31/2014 |  |  | 03/31/2013
Net income for the period of the Company |  |  | 246,923 |  |  | 244,837
Weighted average shares outstanding (in thousands), including Deferred Stock Plan |  |  | 546,810 |  |  | 536,412
Diluted earnings per share –R$ |  |  | 0.4516 |  |  | 0.4564

Weighted average shares outstanding (in thousands) |  | 03/31/2014 |  |  | 03/31/2013 |
Weighted average shares outstanding for basic per share calculation: |  |  | 542,670 |  |  |  | 534,042 |
Dilution effect |  |  |  |  |  |  |  |
Subscription warrants |  |  | 2,126 |  |  |  | - |
Deferred Stock Plan |  |  | 2,014 |  |  |  | 2,370 |
Weighted average shares outstanding for diluted per share calculation: |  |  | 546,810 |  |  |  | 536,412 |

95

Item 2
ULTRAPAR PARTICIPAÇÕES S.A.
MD&A - ANALYSIS OF CONSOLIDATED EARNINGS
First Quarter 2014
(1) Selected financial information:

(R$ million) | 1Q14 | 1Q13 | 4Q13 | Variation | Variation
1Q14 X 1Q13 | 1Q14 X 4Q13
Net revenue from sales and services | 15,946.9 | 13,600.0 | 16,226.5 | 17% | -2%
Cost of products and services sold | (14,674.9) | (12,536.4) | (14,939.8) | 17% | -2%
Gross profit | 1,272.0 | 1,063.6 | 1,286.7 | 20% | -1%
Selling, marketing, general and administrative expenses | (808.7) | (658.4) | (708.2) | 23% | 14%
Other operating income, net | 20.0 | 15.7 | 33.3 | 27% | -40%
Income from disposal of assets | 7.0 | 5.5 | 21.9 | 27% | -68%
Operating income | 490.3 | 426.5 | 633.8 | 15% | -23%
Financial expenses, net | (114.8) | (60.6) | (93.9) | 89% | 22%
Share of profit of subsidiaries, joint ventures and associates | (2.6) | (2.0) | (1.2) | 31% | 119%
Income before income and social contribution taxes | 373.0 | 363.9 | 538.7 | 2% | -31%
Income and social contribution taxes – current and deferred | (137.1) | (127.4) | (180.0) | 8% | -24%
Income and social contribution taxes – tax incentives | 13.4 | 10.1 | 12.0 | 33% | 11%
Net income | 249.3 | 246.5 | 370.7 | 1% | -33%
Net income attributable to Ultrapar | 246.9 | 244.8 | 372.8 | 1% | -34%
Net income attributable to non-controlling interests in subsidiaries | 2.4 | 1.7 | (2.1) | 39% | -212%
EBITDA (*) | 702.0 | 614.0 | 833.5 | 14% | -16%
Volume – LPG sales – thousand tons | 392.0 | 395.9 | 422.1 | -1% | -7%
Volume – Fuels sales – thousand of cubic meters | 6,067.5 | 5,575.2 | 6,562.8 | 9% | -8%
Volume – Chemicals sales – thousand tons | 190.9 | 198.0 | 178.6 | -4% | 7%

(*) For further information on EBITDA, see note (1) on page 99.
96

Considerations on the financial and operational information
Standards and criteria adopted in preparing the information
The financial information presented in this document has been prepared based on the interim financial information for the three-month period ended March 31, 2014, prepared in accordance with IAS 34 issued by the IASB, in accordance with CPC 21 (R1), and presented in accordance with standards established by CVM. The financial information of Ultrapar corresponds to the company’s consolidated information. The financial information of Ipiranga, Oxiteno, Ultragaz, Ultracargo and Extrafarma 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, the financial and operational information presented in this document is subject to rounding off and, consequently, the total amounts presented in the tables and charts may differ from the direct sum of the amounts that precede them.
On September 30, 2013, Ultrapar entered into an association agreement with Extrafarma, one of Brazil’s ten largest drugstore chains. The transaction was closed on January 31, 2014 upon the approval of the association by the Extraordinary General Meetings of Ultrapar and Extrafarma. Extrafarma’s results were consolidated in Ultrapar’s financial statements as from February 1, 2014. Consequently, Ultrapar’s financial statements for the periods prior to February 1, 2014 do not include Extrafarma’s results and its operational data included in this release refer, for the first quarter of 2014, exclusively to the months of February and March 2014. Aiming to provide a comparison basis for the analysis of the evolution of Extrafarma’s performance, we present its results for the first quarter of 2013 including the months of February and March 2013. As a consequence of the closing of the transaction, 12,021,100 new common, nominative book-entry shares with no par value of Ultrapar were issued, which corresponded to R$ 141.9 million of capital increase and R$ 498.8 million of increase in capital reserve, totaling an increase in equity of R$ 640.7 million. In addition, Ultrapar issued subscription warrants that, if exercised, will result in an issuance of up to 4,007,031 shares in the future, registered as R$ 42.1 million in current liabilities and R$ 108.6 million in non-current liabilities as of the closing date. The provisory value of the association at the date of the merger of shares was R$ 791.4 million, subject to adjustments pursuant to the association agreement, notably working capital and net debt adjustments. For more information, see Note 3.a and Note 22 to our Interim Financial Information (ITR) for 1Q14.
97

(2) Performance Analysis:
Ultrapar
Net revenue from sales and services: Ultrapar’s consolidated net sales and services in 1Q14 increased by 17% compared to 1Q13, reaching R$ 15,947 million, due to the revenues growth in all businesses. Compared with 4Q13, Ultrapar’s net sales and services decreased by 2%, due to the seasonality between periods.
Cost of products and services sold: In 1Q14, Ultrapar’s cost of products and services sold increased by 17% compared to 1Q13, totaling R$ 14,675 million, due to the increased cost of products and services sold in all businesses, mainly by the growth in Ipiranga’s sales volume. Compared with 4Q13, Ultrapar’s cost of products and services sold decreased by 2%.
Gross profit: The gross profit of Ultrapar amounted to R$ 1,272 million in 1Q14, up 20% over 1Q13, as a consequence of the growth in the gross profit of Ipiranga, Oxiteno, Ultracargo and the consolidation of Extrafarma’s gross profit as from February 2014. Compared with 4Q13, Ultrapar’s gross profit decreased by 1%, mainly as a result of the seasonality between periods.
Selling, marketing, general and administrative expenses: Ultrapar’s selling, marketing, general and administrative expenses totaled R$ 809 million in 1Q14, an increase of 23% over 1Q13, as a result of the growth in Ipiranga’s sales volume and expenses with marketing and of the effects of inflation on expenses. Compared with 4Q13, Ultrapar’s selling, marketing, general and administrative expenses increased by 14%.
Depreciation and amortization: Total depreciation and amortization costs and expenses in 1Q14 amounted to R$ 214 million, a 13% increase from 1Q13, as a result of investments made during the last 12 months, mainly in Ipiranga, and the consolidation of Extrafarma as from February 2014. Compared with 4Q13, total depreciation and amortization costs and expenses increased by 7%.
Operating income: Ultrapar’s operating income amounted to R$ 490 million in 1Q14, up 15% over 1Q13, as a result of the increase in the operating income of Ipiranga, Oxiteno and Ultracargo. Compared with 4Q13, Ultrapar’s operating income decreased by 23%, mainly as a result of the seasonality between periods.
Financial result: Ultrapar’s net debt at the end of March 2014 was R$ 4.3 billion (1.4 times LTM EBITDA), compared to R$ 3.7 billion in March 2013 (1.5 times LTM EBITDA). Ultrapar reported R$ 115 million of net financial expenses in 1Q14, R$ 54 million higher than that in 1Q13, mainly due to increased net debt in 1Q14 and the 3.5 p.p. rise in the base interest rate between March 2013 and March 2014 and the effects of exchange rate fluctuations, especially related to changes in Venezuela’s currency exchange system. Compared with 4Q13, Ultrapar’s net financial expenses increased R$ 21 million, mainly due to increased net debt in 1Q14.
Income and social contribution taxes / Tax incentives: Ultrapar reported income tax and social contribution expenses, net of benefit of tax holidays of R$ 124 million in 1Q14, compared with expenses of R$ 117 million in 1Q13 and R$ 168 million in 4Q13, an increase of 5% and a reduction of 26%, respectively, mainly as a result of the fluctuations on pre-tax profit.
Net income: Net income in 1Q14 amounted to R$ 249 million, up 1% over 1Q13, mainly due to the EBITDA growth between periods, partially offset by increased net financial expenses and increased depreciation and amortization, resulting from investments made in expansions and in the maturing process. Compared with 4Q13, Ultrapar’s net income decreased by 33%, mainly due to the seasonal reduction of EBITDA in Ultrapar’s businesses.
EBITDA: Ultrapar’s consolidated EBITDA totaled R$ 702 million in 1Q14, up 14% over 1Q13, due to the EBITDA growth in Ipiranga, Oxiteno and Ultracargo and the consolidation of Extrafarma’s EBITDA as from February 2014. Compared with 4Q13, Ultrapar's EBITDA decreased by 16%, mainly due to the seasonality between periods.
98

R$ million | 1Q14 | 1Q13 | 4Q13 | Variation | Variation
1Q14 X 1Q13 | 1Q14 X 4Q13
Ultrapar | 702.0 | 614.0 | 833.5 | 14% | -16%
Ipiranga | 498.7 | 432.1 | 623.6 | 15% | -20%
Oxiteno | 108.7 | 80.6 | 106.9 | 35% | 2%
Ultragaz | 61.0 | 63.5 | 63.2 | -4% | -3%
Ultracargo | 41.3 | 35.9 | 37.5 | 15% | 10%
Extrafarma | 10.5 | 11.3 | - | -7% | n.a.

(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, in accordance with ICVM 527/12. 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 reconciliation of the EBITDA to the net income of the period is presented below:

R$ million | 1Q14 | 1Q13 | 4Q13
Net income | 249.3 | 246.5 | 370.7
(+) Income tax and social contribution | 123.7 | 117.4 | 168.0
(+) Net financial expenses | 114.8 | 60.6 | 93.9
(+) Depreciation and amortization | 214.3 | 189.4 | 200.9
EBITDA | 702.0 | 614.0 | 833.5

The performance analysis for each segment is presented below:
99

Ipiranga
Operational performance: Ipiranga’s sales volume totaled 6,067 thousand cubic meters in 1Q14, 9% above 1Q13 volume. In 1Q14, sales volume of fuels for light vehicles (Otto cycle) increased by 12%, driven by the growth in the vehicle fleet and significant investments made in Ipiranga’s network expansion. Diesel volume increased by 6% over 1Q13, as a result of investments made in network expansion, with a growth of 8% in sales volume in the reseller segment, and of the economic growth. Compared with 4Q13, sales volume decreased by 8%, mainly due to the seasonality between periods.
Net revenue from sales and services: Ipiranga’s net sales and services reached R$13,922 million in 1Q14, up 17% over 1Q13, mainly as a result of (i) increased sales volume, (ii) the rise in diesel and gasoline costs by Petrobras since 1Q13 and increased ethanol costs, and (iii) improved sales mix, resulting from investments in the expansion of the service station network, which enabled a higher share of fuels for light vehicles and of diesel sold through the reseller segment (sales at service stations). Compared with 4Q13, Ipiranga’s net sales and services decreased by 3%, mainly due to the seasonally lower volume, partially offset by increases in diesel, gasoline and ethanol costs.
Cost of products sold: Ipiranga’s cost of goods sold totaled R$13,093 million in 1Q14, up 18% compared to 1Q13, mainly due to increased sales volume and cost increases (i) in diesel, in January, March and November 2013, and (ii) in gasoline, in January and November 2013, and (iii) consequently, in ethanol. Compared with 4Q13, Ipiranga’s cost of goods sold decreased by 2%, due to the seasonally lower volume, partially offset by cost increases in diesel and gasoline in November 2013 (including the temporary inventory benefits in 4Q13) and by increased ethanol costs, mainly due to the inter-harvest period.
Selling, marketing, general and administrative expenses: Ipiranga’s selling, marketing, general and administrative expenses totaled R$ 482 million in 1Q14, up 11% over 1Q13, mainly resulting from (i) increased sales volume and higher unit freight costs, mainly due to the rise in diesel costs and inflation, (ii) the expansion of the distribution network, (iii) the effects of inflation on expenses, especially personnel, and (iv) increased expenses with advertising and marketing, mainly related to the World Cup 2014. Compared with 4Q13, Ipiranga’s selling, marketing, general and administrative expenses increased by 8%, mainly as a result of increased advertising expenses and marketing.
EBITDA: Ipiranga reported EBITDA of R$ 499 million in 1Q14, a 15% increase over 1Q13, mainly due to (i) increased sales volume, (ii) an improved sales mix, with greater share of the reseller segment (sales at service stations), (iii) the strategy of constant innovation in services and convenience at the service station, and (iv) initiatives to reduce the grey market, effects partially offset by increased expenses, especially with advertising, marketing, personnel and freight. Compared with 4Q13, Ipiranga’s EBITDA decreased by 20%, mainly due to seasonally lower sales volumes, increased personnel expenses (annual collective wage adjustments in January), increased expenses with advertising and marketing, and extraordinary effects in 4Q13, which benefited the EBITDA in 4Q13 by R$ 53 million, represented by (i) R$ 34 million related to the temporary effect of inventory gain resulting from the increase in gasoline and diesel costs by Petrobras, and (ii) R$ 19 million related to the sale of part of a logistics facility.
Oxiteno
Operational performance: The volume of specialty chemicals in the Brazilian market in 1Q14 grew by 4% (4 thousand tons), about 2 times the GDP growth estimated for the year, especially in the home and personal care and agrochemicals segments. Total volume sold in the Brazilian market decreased by 3% (4 thousand tons), with the growth in specialties being offset by lower sales of glycols (reduction of 8 thousand tons), a product with volatility in prices and in demand. In the foreign market, sales volume decreased by 5% (3 thousand tons), mainly as a result of the reduction in the operating level in Venezuela, due to the limitations in importing raw material in that country. With all these effects, Oxiteno’s sales volume in 1Q14 totaled 191 thousand tons, down 4% (7 thousand tons) compared to 1Q13. Compared to 4Q13, sales volume grew 7% (12 thousand tons), mainly due to increased sales of glycols.
100

Net revenue from sales and services: Oxiteno’s net revenues totaled R$ 840 million in 1Q14, up 11% over 1Q13, mainly due to the 18% weaker Real and the improved sales mix, with higher share of specialty chemicals in the Brazilian market, effects partially offset by lower sales volume. Compared with 4Q13, Oxiteno’s net revenues increased by 1%, due to the increased sales volume and the 4% weaker Real, effects partially offset by the growth of glycols in the product mix of the 1Q14.
Cost of products sold: Oxiteno’s cost of goods sold in 1Q14 totaled R$ 635 million, 6% higher than that in 1Q13, mainly due to (i) the effect of the 18% weaker Real on variable costs, (ii) increased personnel expenses, as a result of the effects of inflation and an increase in variable compensation, in line with the earnings progression, and (iii) the startup of Oxiteno’s operations in the United States and adjustment on the operating level in Venezuela, effects that were partially offset by lower sales volume and lower raw material prices, especially ethylene. Compared with 4Q13, Oxiteno’s cost of goods sold increased by 1%, mainly due to the effect of the 4% weaker Real on variable costs and the increased sales volume, partially offset by the effects of a 9% reduction in unit variable costs in dollars.
Selling, marketing, general and administrative expenses: Oxiteno’s selling, marketing, general and administrative expenses totaled R$ 129 million in 1Q14, up 21% over 1Q13, mainly due to (i) increased logistics expenses, mainly as a result of increases in diesel costs and the effect of a weaker Real, (ii) the effects of inflation on expenses, and (iii) an increase in variable compensation, in line with the earnings progression. Compared with 4Q13, Oxiteno’s selling, marketing, general and administrative expenses increased by 1%.
EBITDA: Oxiteno reported EBITDA of R$ 109 million in 1Q14, a 35% increase over 1Q13, equivalent to US$ 241/ton, mainly due to the effect of the 18% weaker Real and a more favorable sales mix in 1Q14. Compared with 4Q13, Oxiteno’s EBITDA increased by 2%, mainly due to the increased sales volume and the effect of the 4% weaker Real.
Ultragaz
Operational performance: In 1Q14, Ultragaz’s sales volume reached 392 thousand tons, down 1% from 1Q13, mainly due to high temperatures, above the historical average, registered in the South and Southeast regions of Brazil, partially offset by the effect of investments made to capture new customers, especially in the residential and small- and medium-sized companies segments. Compared with 4Q13, Ultragaz’s sales volume decreased by 7%, mainly due to seasonality between periods.
Net revenue from sales and services: Ultragaz’s net sales and services totaled R$ 929 million in 1Q14, a 1% growth over 1Q13, mainly due to commercial initiatives, including an improved sales mix in the bulk segment, especially in the residential and small- and medium-sized companies segments. Compared with 4Q13, Ultragaz’s net sales and services decreased by 8%, mainly due to seasonally lower volume.
Cost of products sold: Ultragaz’s cost of goods sold totaled R$ 798 million in 1Q14, up 1% over 1Q13, mainly as a result of the planned requalification of an increased number of LPG bottles, with an estimated effect of R$ 7 million. Compared with 4Q13, Ultragaz’s cost of goods sold decreased by 8%, mainly due to seasonally lower volume.
Selling, marketing, general and administrative expenses: Ultragaz’s selling, marketing, general and administrative expenses totaled R$ 108 million in 1Q14, up 9% over 1Q13, mainly as a result of the effects of inflation on personnel expenses and increased expenses with projects. Compared with 4Q13, Ultragaz’s selling, marketing, general and administrative expenses decreased by 3%, mainly due to seasonally lower volume.
EBITDA: Ultragaz’s EBITDA reached R$ 61 million in 1Q14, down 4% from 1Q13, mainly as a result of the planned requalification of an increased number of LPG bottles and lower sales volume, effects partially offset by commercial initiatives. Excluding the estimated effect of R$ 7 million with the requalification of an increased number of LPG bottles, Ultragaz’s EBITDA in 1Q14 would have grown by 7%. Compared with 4Q13, Ultragaz’s EBITDA decreased by 3%, mainly due to seasonally lower volume.
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Ultracargo
Operational performance: In 1Q14, Ultracargo’s average storage grew by 16% compared to 1Q13, mainly due to the increased handling (i) of fuel oil for thermoelectric plants and (ii) of fuels for vehicles, lubricants and methanol (used in the production of biodiesel), as a result of the growth in these segments. Compared with 4Q13, Ultracargo’s average storage increased by 4%, mainly due to the increased handling of the products above, partially offset by the typical seasonality between first and fourth quarters.
Net revenue from sales and services: Ultracargo’s net sales and services totaled R$ 86 million in 1Q14, up 13% over 1Q13 and 5% over 4Q13, mainly due to the growth in the average storage in its terminals in the respective periods.
Cost of services provided: Ultracargo’s cost of services provided in 1Q14 amounted to R$ 35 million, an 11% increase over 1Q13, mainly due to (i) increased average storage, (ii) effects of inflation on costs and (iii) increased depreciation, resulting from capacity expansions. Compared with 4Q13, Ultracargo’s cost of services provided increased by 5%, mainly due to the increased average storage in its terminals.
Selling, marketing, general and administrative expenses: Ultracargo’s selling, marketing, general and administrative expenses totaled R$ 23 million in 1Q14, up 9% over 1Q13, mainly due to the effects of inflation on expenses. Compared with 4Q13, Ultracargo’s selling, marketing, general and administrative expenses decreased by 6%, mainly due to lower expenses with projects in 1Q14.
EBITDA: Ultracargo’s EBITDA reached R$ 41 million in 1Q14, a 15% increase over 1Q13, mainly due to the increased average storage of its terminals. Compared with 4Q13, Ultracargo’s EBITDA increased by 10%, mainly due to the increase average storage in its terminals and lower expenses with projects in 1Q14.
Extrafarma
As highlighted in "Considerations on the financial and operational information", unless otherwise indicated, Extrafarma information for 1Q14 and 1Q13 refers to the months of February and March of each year.
Operational performance: Extrafarma ended 1Q14 with 200 drugstores in the North and Northeast regions of Brazil, an increase of 25 drugstores (14%) compared to the end of 1Q13. Due to the expansion of Extrafarma’s drugstore network, at the end of 1Q14, 33% of the drugstores were under-36 months of operation, a similar percentage compared to the 1Q13. However, total drugstores with less than one year of operation in 1Q14 was 14%, compared to 7% in 1Q13, as a result of the accelerated pace of drugstores openings during the last 12 months.
Gross revenues: Extrafarma’s gross revenues totaled R$ 190 million in 1Q14, an increase of 19% compared to 1Q13, mainly due to the increase of 22% in gross revenues of the retail segment, which totaled R$ 163 million. The growth in gross revenues of the retail segment is mainly derived from the 11% increase in the gross revenues of the drugstores with more than 1 year (same stores sales) and the increased average number of drugstores. During 1Q14, gross revenues of the wholesale segment increased by 4% compared to 1Q13.
Cost of products sold and gross profit: Extrafarma’s cost of goods sold totaled R$ 124 million in 1Q14, up 18% over 1Q13, mainly as a result of increased sales and the annual adjustment in the prices of medicines, set by the Chamber for the Regulation of the Medical Pharmaceuticals Market (CMED). In 1Q14, Extrafarma’s gross profit reached R$ 57 million, up 25% over 1Q13, mainly due to the growth in gross revenues in the retail segment.
Selling, marketing, general and administrative expenses: Extrafarma’s selling, marketing, general and administrative expenses totaled R$ 49 million in 1Q14, a 35% increase over 1Q13, mainly due to (i) the 15% increase in the average number of drugstores, (ii) the increases above inflation on unit expenses with personnel and (iii) expenses with the integration with Ultrapar and the structuring of Extrafarma for a more accelerated growth in the amount of R$ 3 million in 1Q14.
102

EBITDA: Extrafarma reported EBITDA of R$ 10 million in 1Q14, down 7% from 1Q13. Excluding the above-mentioned expenses with integration and structuring, Extrafarma’s EBITDA would have reached R$ 13 million, a 16% increase over 1Q13, mainly as a result of same stores sales growth. Excluding these expenses with integration and structuring, EBITDA margin in 1Q14 was 6.9%, 0.2 p.p. below the EBITDA margin in 1Q13, mainly due to the increased share of drugstores opened less than one year ago and, therefore, still in the maturing process.
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 three months of 2014 any service other than the external audit of the financial statements for the year ended December 31, 2013 and the review of interim financial information of Ultrapar and subsidiaries.
103

São Paulo, May 14, 2014 – Ultrapar Participações S.A. (BM&FBOVESPA: UGPA3 / NYSE: UGP), a multi-business company engaged in specialized distribution and retail (Ultragaz / Ipiranga / Extrafarma), specialty chemicals (Oxiteno) and storage for liquid bulk (Ultracargo), hereby reports its results for the first quarter of 2014.

Results conference call Brazilian conference call May 16, 2014 10:00 a.m. (US EST) Telephone for connection: +55 11 2188 0155 Code: Ultrapar International conference call May 16, 2014 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: invest@ultra.com.br Telephone: + 55 11 3177 7014 Website: www.ultra.com.br Ultrapar Participações S.A. UGPA3 = R$ 54.91/share (03/31/14) UGP = US$ 24.09/ADR (03/31/14) | Main highlights in 1Q14:
ü | ULTRAPAR’S NET REVENUES TOTAL R$ 16 BILLION IN 1Q14, A 17% GROWTH OVER 1Q13, WITH GROWTH IN ALL THE BUSINESSES.
ü | ULTRAPAR’S EBITDA REACHES R$ 702 MILLION IN 1Q14, UP 14% OVER 1Q13.
ü | ULTRAPAR WAS RANKED THE WORLD’S 2ND MOST ADMIRED COMPANY IN THE ENERGY SECTOR BY FORTUNE MAGAZINE.
ü | EXTRAFARMA STARTS TO OPERATE AS ULTRAPAR’S BUSINESS UNIT, WITH THE PROCESS OF INTEGRATION AND STRUCTURING FOR A MORE ACCELERATED GROWTH UNDER IMPLEMENTATION.
| “We started 2014 as planned, reporting another quarter of earnings growth, continuing the trend seen in previous years. Such growth, even in a more challenging economic environment, is the result of consistent investments to strengthen and expand our businesses, of our corporate governance and the unique combination of Ultrapar’s attributes, which allow for differentiation in our operating segments and consistent performance. We also concluded our association with Extrafarma on January 31, and have already completed several steps of the transaction’s business plan for its integration with Ultrapar and to structure the company for a more accelerated growth.” Thilo Mannhardt – CEO

1

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 Ipiranga, Oxiteno, Ultragaz Ultracargo and Extrafarma 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, the financial and operational information presented in this document is subject to rounding off and, consequently, the total amounts presented in the tables and charts may differ from the direct sum of the amounts that precede them.
In September 2013, Ultrapar entered into an association agreement with Extrafarma, one of Brazil’s ten largest drugstore chains. The transaction was closed on January 31, 2014 upon the approval of the association by the Extraordinary General Meetings of Ultrapar and Extrafarma. Extrafarma’s results were consolidated in Ultrapar’s financial statements as from February 1, 2014. Consequently, Ultrapar’s financial statements for the periods prior to February 1, 2014 do not include Extrafarma’s results and its operational data included in this release refer, for the first quarter of 2014, exclusively to the months of February and March 2014. Aiming to provide a comparison basis for the analysis of the evolution of Extrafarma’s performance, we present its results for the first quarter of 2013 including the months of February and March 2013. As a consequence of the closing of the transaction, 12,021,100 new common, nominative book-entry shares with no par value of Ultrapar were issued, which corresponded to R$ 141.9 million of capital increase and R$ 498.8 million of increase in capital reserve, totaling an increase in equity of R$ 640.7 million. In addition, Ultrapar issued subscription warrants that, if exercised, will result in an issuance of up to 4,007,031 shares in the future, registered as R$ 42.1 million in current liabilities and R$ 108.6 million in non-current liabilities as of the closing date. The provisory value of the association at the date of the merger of shares was R$ 791.4 million, subject to adjustments pursuant to the association agreement, notably working capital and net debt adjustments. For more information, see Note 3.a and Note 22 to our Interim Financial Information (ITR) for 1Q14.
EBITDA — Earnings Before Interest, Taxes, Depreciation and Amortization, and EBIT— Earnings Before Interest and Taxes, are presented in accordance with CVM Instruction No. 527, issued by CVM on October 4, 2012. The calculation of EBITDA starting from net earnings is presented below:

R$ million | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Net earnings | 249.3 | 246.5 | 370.7 | 1% | (33%)
(+) Income and social contribution taxes | 123.7 | 117.4 | 168.0 |  |
(+) Financial expenses (income), net | 114.8 | 60.6 | 93.9 |  |
(+) Depreciation and amortization | 214.3 | 189.4 | 200.9 |  |
EBITDA | 702.0 | 614.0 | 833.5 | 14% | (16%)

2

Summary of 1st quarter 2014

Ultrapar – Consolidated data | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Net sales and services | 15,947 | 13,600 | 16,227 | 17% | (2%)
Gross profit | 1,272 | 1,064 | 1,287 | 20% | (1%)
Operating profit | 490 | 426 | 634 | 15% | (23%)
EBITDA | 702 | 614 | 834 | 14% | (16%)
Net earnings¹ | 249 | 247 | 371 | 1% | (33%)
Earnings attributable to Ultrapar per share² | 0.45 | 0.46 | 0.70 | (1%) | (35%)
Amounts in R$ million (except for EPS) |  |  |  |  |

¹ Under IFRS, consolidated net earnings include net earnings attributable to non-controlling shareholders of the controlled companies.
2 Calculated based on the weighted average number of shares over the period, excluding shares held in treasury.

Ipiranga – Operational data | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Total volume (000 m³) | 6,067 | 5,575 | 6,563 | 9% | (8%)
Diesel | 3,133 | 2,943 | 3,440 | 6% | (9%)
Gasoline, ethanol and NGV | 2,854 | 2,545 | 3,031 | 12% | (6%)
Other3 | 81 | 87 | 92 | (7%) | (12%)

3 Fuel oils, kerosene, lubricants and greases.

Oxiteno – Operational data | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Total volume (000 tons) | 191 | 198 | 179 | (4%) | 7%
Product mix |  |  |  |  |
Specialty chemicals | 164 | 163 | 170 | 1% | (3%)
Glycols | 26 | 35 | 9 | (25%) | 197%
Geographical mix |  |  |  |  |
Sales in Brazil | 137 | 141 | 124 | (3%) | 11%
Sales outside Brazil | 54 | 57 | 55 | (5%) | (2%)

Ultragaz – Operational data | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Total volume (000 tons) | 392 | 396 | 422 | (1%) | (7%)
Bottled | 263 | 264 | 287 | (1%) | (8%)
Bulk | 129 | 131 | 136 | (2%) | (5%)

Ultracargo – Operational data | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Effective storage4 (000 m3) | 722 | 623 | 694 | 16% | 4%

4 Monthly average.
3

Extrafarma - Operational data5 | 1Q14 | 1Q13 | 1Q14v1Q13
Gross revenues (R$ million) | 190 | 159 | 19%
Number of drugstores (end of period) | 200 | 175 | 25

5 As highlighted in "Considerations on the financial and operational information," unless otherwise indicated, Extrafarma information for 1Q14 and 1Q13 refers to the months of February and March of each year.

Macroeconomic indicators | 1Q14 | 1Q13 | 4Q13 | D (%) 1Q14v1Q13 | D (%) 1Q14v4Q13
Average exchange rate (R$/US$) | 2.36 | 2.00 | 2.28 | 18% | 4%
Brazilian interbank interest rate (CDI) | 2.4% | 1.6% | 2.3% |  |
Inflation in the period (IPCA) | 2.2% | 1.9% | 2.0% |  |

Highlights

ü | Ultrapar receives important international recognition – Ultrapar was elected once again one of the world’s most admired energy companies. Ultrapar was ranked second in the Most Admired Companies 2014 list of Fortune Magazine, two positions above that of 2013 and three above that of 2012. The research evaluates nine criteria, from investment value to social responsibility, and this year about 4,000 executives, directors and equity analysts from 57 sectors participated in the survey.

ü | Ultrapar concludes the association agreement with Extrafarma and starts consolidating its results as from February 1 st – On September 30, 2013, Ultrapar entered into an association agreement with Extrafarma, one of Brazil’s ten largest drugstore chains. The transaction was closed on January 31, 2014 upon the approval of the transaction by the Extraordinary General Meetings of Ultrapar and Extrafarma. Extrafarma’s results were consolidated in Ultrapar's financial statements as from February 1, 2014. Concurrently to the closing, we initiated the process of integration with Ultrapar and of structuring Extrafarma for a more accelerated growth, to be achieved through an increased investment capacity, the strengthening of Extrafarma’s management team, by implementing Ultrapar’s recognized mechanisms of corporate governance, incentives, and alignment of interests, and the access to more than 11 thousand retail points of fuels and convenience with the Ipiranga brand and of LPG with the Ultragaz brand. Among the steps already implemented in the integration and the structuring for a more accelerated growth, we highlight (i) the centralization in the corporate center of treasury activities, accounts payable and legal department, starting the alignment of Extrafarma to Ultrapar’s management model, (ii) the establishment of a new organizational structure, with the creation of areas dedicated to the activities related to operations and expansion, allowing greater specialization and agility in the drugstore opening process, (iii) allocation of managers and analysts from Ultrapar and its businesses’ staff to Extrafarma, in order to strengthen its team and facilitate the process of functional and cultural integration, and (iv) the detailing of the working plan to enable accelerated drugstore openings from late 2014 onwards.

4

Executive summary of the results

During 1Q14, the Brazilian macroeconomic scenario followed the same trend seen in 2013 of modest growth and inflationary pressure. The Brazilian government continued to raise the base interest rate, increasing it from 10.0% at the end of December 2013 to 10.75% at the end of the March 2014, compared to 7.25% in March 2013. The Real ended 1Q14 at R$ 2.26/US$, with an average Real in 1Q14 18% weaker than that in 1Q13. The number of light vehicles registered in 1Q14 totaled 0.8 million, a slight decrease when compared to the same period of last year, which did not change the pace of growth in the average fleet seen in recent years. According to the members of Abrafarma, sales in the retail pharmacy sector grew 17% in 1Q14 compared to 1Q13, continuing the growth seen in recent years.
In this economic and operating environment, Ultrapar presented consolidated EBITDA of R$ 702 million in 1Q14, up 14% over 1Q13, due to the EBITDA growth in Ipiranga, Oxiteno and Ultracargo and the consolidation of Extrafarma’s EBITDA as from February 2014.
At Ipiranga, sales volume in 1Q14 grew by 9% compared to 1Q13, driven mainly by growth in the light vehicle fleet and by investments made in recent years in Ipiranga’s network expansion (opening of new service stations and conversion of unbranded service stations) and related logistics infrastructure. Ipiranga’s EBITDA reached R$ 499 million, a 15% increase over 1Q13, mainly due to increased sales volume, to improved sales mix, with greater share of the reseller segment (sales at service stations), to the strategy of constant innovation in services and convenience at the service station, generating greater customer satisfaction and loyalty, and to initiatives to reduce informality, such as the collection of PIS/Cofins taxes of the whole ethanol chain at the producer and the conversion of unbranded service stations.
Oxiteno’s sales volume reached 191 thousand tons, down 4% compared to 1Q13, due to lower sales of glycols, partially offset by increased sales of specialty chemicals, which were made ​​possible by investments in capacity expansion and acquisitions over the years. Oxiteno’s EBITDA totaled R$ 109 million in 1Q14, a 35% increase over 1Q13, mainly as a result of the effect of the 18% weaker Real and an improved sales mix in 1Q14.
Ultragaz presented a reduction of 1% in sales volume in 1Q14 compared to 1Q13, mainly due to high temperatures, above the historical average, registered in the South and Southeast regions of Brazil. In 1Q14, Ultragaz’s EBITDA decreased by 4% compared to 1Q13, mainly due to lower sales volume and the planned requalification of an increased number of LPG bottles since 4Q13, with an estimated effect of R$ 7 million. Excluding this effect, Ultragaz’s EBITDA would have grown 7%.
At Ultracargo, the average storage grew by 16% compared to 1Q13, reaching 722 thousand m³, mainly as a result of the increased handling of oil derivatives. Ultracargo’s EBITDA reached R$ 41 million in 1Q14, a 15% increase over 1Q13, mainly due to the increased average storage of terminals.
Extrafarma ended the 1Q14 with 200 company-owned stores in the North and Northeast regions of Brazil, an increase of 25 stores compared to 1Q13. Extrafarma’s EBITDA for February and March 2014 totaled R$ 10 million, down 7% from 1Q13. Excluding the expenses with integration and structuring detailed throughout this document, Extrafarma’s EBITDA would have reached R$ 13 million, a 16% increase over 1Q13, mainly as a result of increased revenues of drugstores existing for more than one year (same stores sales). Excluding these expenses with integration and structuring, EBITDA margin in 1Q14 was 6.9%, 0.2 p.p. below the EBITDA margin in 1Q13, mainly due to the increased share of drugstores opened less than one year ago and, therefore, still in the maturing process.
Net earnings in 1Q14 reached R$ 249 million, up 1% over 1Q13, due to the EBITDA growth, partially offset by (i) increased financial expenses, mainly as a result of the raise in the base interest rate by the Central Bank and the increased net debt, from R$ 3.7 billion in March 2013 (1.5 times LTM EBITDA) to R$ 4.3 billion in March 2014 (1.4 times LTM EBITDA), and (ii) increased depreciation and amortization expenses, as a result of investments made and in the maturing process.
5

Ipiranga

Operational performance – Ipiranga’s sales volume totaled 6,067 thousand cubic meters in 1Q14, 9% above 1Q13 volume. In 1Q14, sales volume of fuels for light vehicles (Otto cycle) increased by 12%, driven by the growth in the vehicle fleet and significant investments made in Ipiranga’s network expansion. Diesel volume increased by 6% over 1Q13, as a result of investments made in network expansion, with a growth of 8% in sales volume in the reseller segment, and of the economic growth. Compared with 4Q13, sales volume decreased by 8%, mainly due to the seasonality between periods.
Ipiranga – Sales volume (000 m³)
Net sales and services – Ipiranga’s net sales and services reached R$13,922 million in 1Q14, up 17% over 1Q13, mainly as a result of (i) increased sales volume, (ii) the rise in diesel and gasoline costs by Petrobras since 1Q13 and increased ethanol costs, and (iii) improved sales mix, resulting from investments in the expansion of the service station network, which enabled a higher share of fuels for light vehicles and of diesel sold through the reseller segment (sales at service stations). Compared with 4Q13, Ipiranga’s net sales and services decreased by 3%, mainly due to the seasonally lower volume, partially offset by increases in diesel, gasoline and ethanol costs.
Cost of goods sold – Ipiranga’s cost of goods sold totaled R$13,093 million in 1Q14, up 18% compared to 1Q13, mainly due to increased sales volume and cost increases (i) in diesel, in January, March and November 2013, and (ii) in gasoline, in January and November 2013, and (iii) consequently, in ethanol. Compared with 4Q13, Ipiranga’s cost of goods sold decreased by 2%, due to the seasonally lower volume, partially offset by cost increases in diesel and gasoline in November 2013 (including the temporary inventory benefits in 4Q13) and by increased ethanol costs, mainly due to the inter-harvest period.
Sales, general and administrative expenses – Ipiranga’s sales, general and administrative expenses totaled R$ 482 million in 1Q14, up 11% over 1Q13, mainly resulting from (i) increased sales volume and higher unit freight costs, mainly due to the rise in diesel costs and inflation, (ii) the expansion of the distribution network, (iii) the effects of inflation on expenses, especially personnel, and (iv) increased expenses with advertising and marketing, mainly related to the World Cup 2014. Compared with 4Q13, Ipiranga’s sales, general and administrative expenses increased by 8%, mainly as a result of increased advertising expenses and marketing.
EBITDA – Ipiranga reported EBITDA of R$ 499 million in 1Q14, a 15% increase over 1Q13, mainly due to (i) increased sales volume, (ii) an improved sales mix, with greater share of the reseller segment (sales at service stations), (iii) the strategy of constant innovation in services and convenience at the service station, and (iv) initiatives to reduce the grey market, effects partially offset by increased expenses, especially with advertising, marketing, personnel and freight. Compared with 4Q13, Ipiranga’s EBITDA decreased by 20%, mainly due to seasonally lower sales volumes, increased personnel expenses (annual collective wage adjustments in January), increased expenses with advertising and marketing, and extraordinary effects in 4Q13, which benefited the EBITDA in 4Q13 by R$ 53 million, represented by (i) R$ 34 million related to the temporary effect of inventory gain resulting from the increase in gasoline and diesel costs by Petrobras, and (ii) R$ 19 million related to the sale of part of a logistics facility.
6

Oxiteno

Operational performance – The volume of specialty chemicals in the Brazilian market in 1Q14 grew by 4% (4 thousand tons), about 2 times the GDP growth estimated for the year, especially in the home and personal care and agrochemicals segments. Total volume sold in the Brazilian market decreased by 3% (4 thousand tons), with the growth in specialties being offset by lower sales of glycols (reduction of 8 thousand tons), a product with volatility in prices and in demand. In the foreign market, sales volume decreased by 5% (3 thousand tons), mainly as a result of the reduction in the operating level in Venezuela, due to the limitations in importing raw material in that country. With all these effects, Oxiteno’s sales volume in 1Q14 totaled 191 thousand tons, down 4% (7 thousand tons) compared to 1Q13. Compared to 4Q13, sales volume grew 7% (12 thousand tons), mainly due to increased sales of glycols.
Oxiteno – Sales volume (000 tons)
Net sales and services – Oxiteno’s net revenues totaled R$ 840 million in 1Q14, up 11% over 1Q13, mainly due to the 18% weaker Real and the improved sales mix, with higher share of specialty chemicals in the Brazilian market, effects partially offset by lower sales volume. Compared with 4Q13, Oxiteno’s net revenues increased by 1%, due to the increased sales volume and the 4% weaker Real, effects partially offset by the growth of glycols in the product mix of the 1Q14.
Cost of goods sold – Oxiteno’s cost of goods sold in 1Q14 totaled R$ 635 million, 6% higher than that in 1Q13, mainly due to (i) the effect of the 18% weaker Real on variable costs, (ii) increased personnel expenses, as a result of the effects of inflation and an increase in variable compensation, in line with the earnings progression, and (iii) the startup of Oxiteno’s operations in the United States and adjustment on the operating level in Venezuela, effects that were partially offset by lower sales volume and lower raw material prices, especially ethylene. Compared with 4Q13, Oxiteno’s cost of goods sold increased by 1%, mainly due to the effect of the 4% weaker Real on variable costs and the increased sales volume, partially offset by the effects of a 9% reduction in unit variable costs in dollars.
Sales, general and administrative expenses – Oxiteno’s sales, general and administrative expenses totaled R$ 129 million in 1Q14, up 21% over 1Q13, mainly due to (i) increased logistics expenses, mainly as a result of increases in diesel costs and the effect of a weaker Real, (ii) the effects of inflation on expenses, and (iii) an increase in variable compensation, in line with the earnings progression. Compared with 4Q13, Oxiteno’s sales, general and administrative expenses increased by 1%.
EBITDA – Oxiteno reported EBITDA of R$ 109 million in 1Q14, a 35% increase over 1Q13, equivalent to US$ 241/ton, mainly due to the effect of the 18% weaker Real and a more favorable sales mix in 1Q14. Compared with 4Q13, Oxiteno’s EBITDA increased by 2%, mainly due to the increased sales volume and the effect of the 4% weaker Real.
7

Ultragaz

Operational performance – In 1Q14, Ultragaz’s sales volume reached 392 thousand tons, down 1% from 1Q13, mainly due to high temperatures, above the historical average, registered in the South and Southeast regions of Brazil, partially offset by the effect of investments made to capture new customers, especially in the residential and small- and medium-sized companies segments. Compared with 4Q13, Ultragaz’s sales volume decreased by 7%, mainly due to seasonality between periods.
Ultragaz – Sales volume (000 tons)
Net sales and services – Ultragaz’s net sales and services totaled R$ 929 million in 1Q14, a 1% growth over 1Q13, mainly due to commercial initiatives, including an improved sales mix in the bulk segment, especially in the residential and small- and medium-sized companies segments. Compared with 4Q13, Ultragaz’s net sales and services decreased by 8%, mainly due to seasonally lower volume.
Cost of goods sold – Ultragaz’s cost of goods sold totaled R$ 798 million in 1Q14, up 1% over 1Q13, mainly as a result of the planned requalification of an increased number of LPG bottles, with an estimated effect of R$ 7 million. Compared with 4Q13, Ultragaz’s cost of goods sold decreased by 8%, mainly due to seasonally lower volume.
Sales, general and administrative expenses – Ultragaz’s sales, general and administrative expenses totaled R$ 108 million in 1Q14, up 9% over 1Q13, mainly as a result of the effects of inflation on personnel expenses and increased expenses with projects. Compared with 4Q13, Ultragaz’s sales, general and administrative expenses decreased by 3%, mainly due to seasonally lower volume.
EBITDA – Ultragaz’s EBITDA reached R$ 61 million in 1Q14, down 4% from 1Q13, mainly as a result of the planned requalification of an increased number of LPG bottles and lower sales volume, effects partially offset by commercial initiatives. Excluding the estimated effect of R$ 7 million with the requalification of an increased number of LPG bottles, Ultragaz’s EBITDA in 1Q14 would have grown by 7%. Compared with 4Q13, Ultragaz’s EBITDA decreased by 3%, mainly due to seasonally lower volume.
8

Ultracargo

Operational performance – In 1Q14, Ultracargo’s average storage grew by 16% compared to 1Q13, mainly due to the increased handling (i) of fuel oil for thermoelectric plants and (ii) of fuels for vehicles, lubricants and methanol (used in the production of biodiesel), as a result of the growth in these segments. Compared with 4Q13, Ultracargo’s average storage increased by 4%, mainly due to the increased handling of the products above, partially offset by the typical seasonality between first and fourth quarters.
Ultracargo – Average storage (000 m³)
Net sales and services – Ultracargo’s net sales and services totaled R$ 86 million in 1Q14, up 13% over 1Q13 and 5% over 4Q13, mainly due to the growth in the average storage in its terminals in the respective periods.
Cost of services provided – Ultracargo’s cost of services provided in 1Q14 amounted to R$ 35 million, an 11% increase over 1Q13, mainly due to (i) increased average storage, (ii) effects of inflation on costs and (iii) increased depreciation, resulting from capacity expansions. Compared with 4Q13, Ultracargo’s cost of services provided increased by 5%, mainly due to the increased average storage in its terminals.
Sales, general and administrative expenses – Ultracargo’s sales, general and administrative expenses totaled R$ 23 million in 1Q14, up 9% over 1Q13, mainly due to the effects of inflation on expenses. Compared with 4Q13, Ultracargo’s sales, general and administrative expenses decreased by 6%, mainly due to lower expenses with projects in 1Q14.
EBITDA – Ultracargo’s EBITDA reached R$ 41 million in 1Q14, a 15% increase over 1Q13, mainly due to the increased average storage of its terminals. Compared with 4Q13, Ultracargo’s EBITDA increased by 10%, mainly due to the increase average storage in its terminals and lower expenses with projects in 1Q14.
9

Extrafarma

As highlighted in "Considerations on the financial and operational information", unless otherwise indicated, Extrafarma information for 1Q14 and 1Q13 refers to the months of February and March of each year.
Operational performance – Extrafarma ended 1Q14 with 200 drugstores in the North and Northeast regions of Brazil, an increase of 25 drugstores (14%) compared to the end of 1Q13. Due to the expansion of Extrafarma’s drugstore network, at the end of 1Q14, 33% of the drugstores were under-36 months of operation, a similar percentage compared to the 1Q13. However, total drugstores with less than one year of operation in 1Q14 was 14%, compared to 7% in 1Q13, as a result of the accelerated pace of drugstores openings during the last 12 months.
Extrafarma – number and maturation profile of drugstores
Gross revenues – Extrafarma’s gross revenues totaled R$ 190 million in 1Q14, an increase of 19% compared to 1Q13, mainly due to the increase of 22% in gross revenues of the retail segment, which totaled R$ 163 million. The growth in gross revenues of the retail segment is mainly derived from the 11% increase in the gross revenues of the drugstores with more than 1 year (same stores sales) and the increased average number of drugstores. During 1Q14, gross revenues of the wholesale segment increased by 4% compared to 1Q13.
Cost of goods sold and gross profit – Extrafarma’s cost of goods sold totaled R$ 124 million in 1Q14, up 18% over 1Q13, mainly as a result of increased sales and the annual adjustment in the prices of medicines, set by the Chamber for the Regulation of the Medical Pharmaceuticals Market (CMED). In 1Q14, Extrafarma’s gross profit reached R$ 57 million, up 25% over 1Q13, mainly due to the growth in gross revenues in the retail segment.
Sales, general and administrative expenses – Extrafarma’s sales, general and administrative expenses totaled R$ 49 million in 1Q14, a 35% increase over 1Q13, mainly due to (i) the 15% increase in the average number of drugstores, (ii) the increases above inflation on unit expenses with personnel and (iii) expenses with the integration with Ultrapar and the structuring of Extrafarma for a more accelerated growth in the amount of R$ 3 million in 1Q14.
EBITDA – Extrafarma reported EBITDA of R$ 10 million in 1Q14, down 7% from 1Q13. Excluding the above-mentioned expenses with integration and structuring, Extrafarma’s EBITDA would have reached R$ 13 million, a 16% increase over 1Q13, mainly as a result of same stores sales growth. Excluding these expenses with integration and structuring, EBITDA margin in 1Q14 was 6.9%, 0.2 p.p. below the EBITDA margin in 1Q13, mainly due to the increased share of drugstores opened less than one year ago and, therefore, still in the maturing process.
10

Ultrapar

Net sales and services – Ultrapar’s consolidated net sales and services in 1Q14 increased by 17% compared to 1Q13, reaching R$ 15,947 million, due to the revenues growth in all businesses. Compared with 4Q13, Ultrapar’s net sales and services decreased by 2%, due to the seasonality between periods.
EBITDA – Ultrapar’s consolidated EBITDA totaled R$ 702 million in 1Q14, up 14% over 1Q13, due to the EBITDA growth in Ipiranga, Oxiteno and Ultracargo and the consolidation of Extrafarma’s EBITDA as from February 2014. Compared with 4Q13, Ultrapar's EBITDA decreased by 16%, mainly due to the seasonality between periods.
EBITDA (R$ million)
Depreciation and amortization – Total depreciation and amortization costs and expenses in 1Q14 amounted to R$ 214 million, a 13% increase from 1Q13, as a result of investments made ​​during the last 12 months, mainly in Ipiranga, and the consolidation of Extrafarma as from February 2014. Compared with 4Q13, total depreciation and amortization costs and expenses increased by 7%.
Financial results – Ultrapar’s net debt at the end of March 2014 was R$ 4.3 billion (1.4 times LTM EBITDA), compared to R$ 3.7 billion in March 2013 (1.5 times LTM EBITDA). Ultrapar reported R$ 115 million of net financial expenses in 1Q14, R$ 54 million higher than that in 1Q13, mainly due to increased net debt in 1Q14 and the 3.5 p.p. rise in the base interest rate between March 2013 and March 2014 and the effects of exchange rate fluctuations, especially related to changes in Venezuela’s currency exchange system. Compared with 4Q13, Ultrapar’s net financial expenses increased R$ 21 million, mainly due to increased net debt in 1Q14.
Net earnings – Net earnings in 1Q14 amounted to R$ 249 million, up 1% over 1Q13, mainly due to the EBITDA growth between periods, partially offset by increased net financial expenses and increased depreciation and amortization, resulting from investments made in expansions and in the maturing process. Compared with 4Q13, Ultrapar’s net earnings decreased by 33%, mainly due to the seasonal reduction of EBITDA in Ultrapar’s businesses.
Investments – Total investments, net of disposals and repayments, amounted to R$ 914 million in 1Q14, allocated as follows:

· | At Ipiranga, R$ 60 million were invested, directed mainly to the expansion and maintenance of the service stations network and logistics infrastructure. Ipiranga invested R$ 75 million in fixed and intangible assets, reduced by R$ 15 million related to repayments of financing from clients, net of loans granted.

· | At Oxiteno, R$ 20 million were invested, directed mainly to the maintenance of its production units and expansions underway in Mexico.

· | At Ultragaz, R$ 25 million were invested, directed mainly to new customers in the bulk segment and renewal of LPG bottles.

· | Ultracargo invested R$ 3 million, mainly directed to the maintenance of its terminals.

· | At Extrafarma, R$ 3 million were invested, mainly directed towards the opening of new drugstores.

11

· | Additionally, we concluded in January 31 the association with Extrafarma, through the issuance of 12,021,100 Ultrapar’s shares, in addition to subscription warrants that may result in an issuance of up to 4,007,031 new Ultrapar’s shares in the future. The provisary value of the transaction corresponds to R$ 791 million.

R$ million | 1Q14 | Total investments, net of disposals and repayments (R$ million)
Additions to fixed and intangible assets 1 |
Ipiranga | 75
Oxiteno | 20
Ultragaz | 25
Ultracargo | 3
Extrafarma | 3
Total – additions to fixed and intangible assets 1 | 129
Financing to clients2 – Ipiranga | (15)
Acquisition (disposal) of equity interest3 | 9
Association with Extrafarma4 | 791
Total investments, net of disposals and repayments | 914

1 Includes the consolidation of corporate IT services
2 Financing to clients is included as working capital in the Cash Flow Statement
3 Capital invested in ConectCar
4 Not included in the Cash Flow Statement
12

Ultrapar in capital markets

Ultrapar’s average daily trading volume in 1Q14 was R$ 84 million, 22% higher than the daily average of R$ 69 million in 1Q13, considering the combined trading volumes on the BM&FBOVESPA and the NYSE. Ultrapar’s share price closed 1Q14 quoted at R$ 54.91/share on the BM&FBOVESPA, with an accumulated depreciation of 2% in the quarter, while the Ibovespa index depreciated by 2%. At the NYSE, Ultrapar’s shares appreciated by 2% in 1Q14, while the Dow Jones index depreciated by 1%. Ultrapar closed 1Q14 with a market value of R$ 31 billion, up 10% over 1Q13.
13

Outlook

Despite the challenging economic environment, Ultrapar will continue to invest in the expansion of its businesses, to reap the benefits of the investments already made, and to undertake initiatives towards differentiation and proximity to customers. Ipiranga will continue to invest in the expansion of its service station network and its related logistics infrastructure, focused on the North, Northeast and Midwest regions of Brazil, and will continue to leverage the benefits from the growth of the vehicle fleet in Brazil and the reduction of grey market, mainly in ethanol. Additionally, the company will proceed with its differentiation initiatives, based on increasing the offer of products, services and convenience, to further increase customer loyalty and expand the number of clients. Oxiteno will keep the focus on innovation, with the development of new products, and will act to maximize the benefits from the ramp up of investments in production capacity expansion in Brazil. At Ultragaz, the benefits from recent investments in capturing new customers and the continued focus on managing costs and expenses will contribute to continue its growth. Ultracargo will remain focused on capturing the benefits generated by the expansion of existing terminals and will keep attentive to opportunities from the growing demand for liquid bulk storage in Brazil, mainly as a result of the growing consumption of fuels for vehicles. At Extrafarma, we will focus on completing the integration with Ultrapar, planned to be finished in mid-2014, and on structuring the company for a more accelerated expansion, which should be developed more intensively from late 2014 onwards.
14

Forthcoming events

Conference call / Webcast: May 16, 2014
Ultrapar will be holding a conference call for analysts on May 16, 2014 to comment on the company's performance in the first quarter of 2014 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.
15

Operational and market information

Financial focus | 1Q14 | 1Q13 | 4Q13 |  |
EBITDA margin Ultrapar | 4.4% | 4.5% | 5.1% |  |
Net margin Ultrapar | 1.6% | 1.8% | 2.3% |  |
Focus on human resources | 1Q14 | 1Q13 | 4Q13 |  |
Number of employees – Ultrapar | 13,325 | 9,349 | 9,235 |  |
Number of employees – Ipiranga | 2,683 | 2,581 | 2,682 |  |
Number of employees – Oxiteno | 1,827 | 1,836 | 1,829 |  |
Number of employees – Ultragaz | 3,652 | 3,918 | 3,704 |  |
Number of employees – Ultracargo | 617 | 595 | 604 |  |
Number of employees – Extrafarma | 4,120 | - | - |  |
Focus on capital markets | 1Q14 | 1Q13 | 4Q13 |  |
Number of shares (000) | 556,405 | 544,384 | 544,384 |  |
Market capitalization1 – R$ million | 29,365 | 26,740 | 31,347 |  |
BM&FBOVESPA | 1Q14 | 1Q13 | 4Q13 |  |
Average daily volume (shares) | 1,245,149 | 1,022,914 | 928,662 |  |
Average daily volume (R$ 000) | 65,727 | 50,254 | 53,517 |  |
Average share price (R$/share) | 52.8 | 49.1 | 57.6 |  |
NYSE | 1Q14 | 1Q13 | 4Q13 |  |
Quantity of ADRs2 (000 ADRs) | 33,815 | 34,015 | 34,315 |  |
Average daily volume (ADRs) | 344,905 | 375,131 | 256,946 |  |
Average daily volume (US$ 000) | 7,713 | 9,242 | 6,474 |  |
Average share price (US$/ADR) | 22.4 | 24.6 | 25.2 |  |
Total | 1Q14 | 1Q13 | 4Q13 |  |
Average daily volume (shares) | 1,590,054 | 1,398,044 | 1,185,608 |  |
Average daily volume (R$ 000) | 83,916 | 68,670 | 68,270 |  |

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 Oxiteno’s margins on page 21, 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
invest@ultra.com.br
www.ultra.com.br
1 Calculated based on the weighted average price in the period.
2 1 ADR = 1 common share.
16

ULTRAPAR
CONSOLIDATED BALANCE SHEET
In millions of Reais

|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  | 2014 |  |  | 2013 |  |  | 2013 |
ASSETS |  |  |  |  |  |  |  |  |
Cash, cash equivalents and financial investments |  |  | 3,184.3 |  |  |  | 2,073.5 |  |  |  | 3,425.2 |
Trade accounts receivable |  |  | 2,450.4 |  |  |  | 2,472.8 |  |  |  | 2,321.5 |
Inventories |  |  | 2,007.9 |  |  |  | 1,574.2 |  |  |  | 1,592.5 |
Taxes |  |  | 494.7 |  |  |  | 399.4 |  |  |  | 480.0 |
Other |  |  | 138.4 |  |  |  | 108.8 |  |  |  | 84.7 |
Total Current Assets |  |  | 8,275.7 |  |  |  | 6,628.8 |  |  |  | 7,903.9 |
Investments |  |  | 65.4 |  |  |  | 51.3 |  |  |  | 58.9 |
Property, plant and equipment and intangibles |  |  | 7,834.7 |  |  |  | 6,576.1 |  |  |  | 7,029.0 |
Financial investments |  |  | 109.9 |  |  |  | 140.2 |  |  |  | 118.5 |
Trade accounts receivable |  |  | 125.2 |  |  |  | 133.3 |  |  |  | 124.5 |
Deferred income tax |  |  | 414.8 |  |  |  | 456.0 |  |  |  | 376.1 |
Escrow deposits |  |  | 639.5 |  |  |  | 543.1 |  |  |  | 614.9 |
Other |  |  | 171.7 |  |  |  | 167.3 |  |  |  | 152.7 |
Total Non-Current Assets |  |  | 9,361.1 |  |  |  | 8,067.4 |  |  |  | 8,474.6 |
TOTAL ASSETS |  |  | 17,636.8 |  |  |  | 14,696.1 |  |  |  | 16,378.5 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Loans, financing and debentures |  |  | 1,778.9 |  |  |  | 1,521.9 |  |  |  | 1,830.0 |
Suppliers |  |  | 975.5 |  |  |  | 1,260.1 |  |  |  | 968.9 |
Payroll and related charges |  |  | 226.3 |  |  |  | 169.5 |  |  |  | 297.7 |
Taxes |  |  | 215.9 |  |  |  | 166.5 |  |  |  | 230.2 |
Other |  |  | 219.6 |  |  |  | 125.5 |  |  |  | 437.7 |
Total Current Liabilities |  |  | 3,416.2 |  |  |  | 3,243.6 |  |  |  | 3,764.5 |
Loans, financing and debentures |  |  | 5,830.5 |  |  |  | 4,435.2 |  |  |  | 5,139.6 |
Provision for contingencies |  |  | 633.8 |  |  |  | 548.5 |  |  |  | 569.7 |
Post-retirement benefits |  |  | 103.2 |  |  |  | 122.0 |  |  |  | 99.4 |
Other |  |  | 361.2 |  |  |  | 265.5 |  |  |  | 258.4 |
Total Non-Current Liabilities |  |  | 6,928.7 |  |  |  | 5,371.2 |  |  |  | 6,067.2 |
TOTAL LIABILITIES |  |  | 10,344.9 |  |  |  | 8,614.8 |  |  |  | 9,831.7 |
STOCKHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Capital |  |  | 3,838.7 |  |  |  | 3,696.8 |  |  |  | 3,696.8 |
Reserves |  |  | 3,238.8 |  |  |  | 2,248.4 |  |  |  | 2,733.0 |
Treasury shares |  |  | (111.5 | ) |  |  | (114.9 | ) |  |  | (114.9 | )
Others |  |  | 296.7 |  |  |  | 223.9 |  |  |  | 205.1 |
Non-controlling interest |  |  | 29.2 |  |  |  | 27.2 |  |  |  | 26.9 |
Total shareholders’ equity |  |  | 7,291.9 |  |  |  | 6,081.4 |  |  |  | 6,546.9 |
TOTAL LIAB. AND STOCKHOLDERS' EQUITY |  |  | 17,636.8 |  |  |  | 14,696.1 |  |  |  | 16,378.5 |
Cash and financial investments |  |  | 3,294.2 |  |  |  | 2,213.7 |  |  |  | 3,543.7 |
Debt |  |  | (7,609.4 | ) |  |  | (5,957.2 | ) |  |  | (6,969.6 | )
Net cash (debt) |  |  | (4,315.2 | ) |  |  | (3,743.4 | ) |  |  | (3,425.9 | )

17

ULTRAPAR
CONSOLIDATED INCOME STATEMENT
In millions of Reais (except per share data)

|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  | 2014 |  |  | 2013 |  |  | 2013 |
Net sales and services |  |  | 15,946.9 |  |  |  | 13,600.0 |  |  |  | 16,226.5 |
Cost of sales and services |  |  | (14,674.9 | ) |  |  | (12,536.4 | ) |  |  | (14,939.8 | )
Gross profit |  |  | 1,272.0 |  |  |  | 1,063.6 |  |  |  | 1,286.7 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Selling |  |  | (504.8 | ) |  |  | (414.6 | ) |  |  | (446.4 | )
General and administrative |  |  | (303.9 | ) |  |  | (243.7 | ) |  |  | (261.8 | )
Other operating income (expenses), net |  |  | 20.0 |  |  |  | 15.7 |  |  |  | 33.3 |
Income from sale of assets |  |  | 7.0 |  |  |  | 5.5 |  |  |  | 21.9 |
Operating income |  |  | 490.3 |  |  |  | 426.5 |  |  |  | 633.8 |
Financial results |  |  |  |  |  |  |  |  |  |  |  |
Financial income |  |  | 90.4 |  |  |  | 52.9 |  |  |  | 73.9 |
Financial expenses |  |  | (205.2 | ) |  |  | (113.6 | ) |  |  | (167.8 | )
Equity in earnings (losses) of affiliates |  |  | (2.6 | ) |  |  | (2.0 | ) |  |  | (1.2 | )
Income before income and social contribution taxes |  |  | 373.0 |  |  |  | 363.9 |  |  |  | 538.7 |
Provision for income and social contribution taxes |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | (152.9 | ) |  |  | (119.6 | ) |  |  | (130.5 | )
Deferred |  |  | 15.8 |  |  |  | (7.8 | ) |  |  | (49.6 | )
Benefit of tax holidays |  |  | 13.4 |  |  |  | 10.1 |  |  |  | 12.0 |
Net Income |  |  | 249.3 |  |  |  | 246.5 |  |  |  | 370.7 |
Net income attributable to: |  |  |  |  |  |  |  |  |  |  |  |
Shareholders of Ultrapar |  |  | 246.9 |  |  |  | 244.8 |  |  |  | 372.8 |
Non-controlling shareholders of the subsidiaries |  |  | 2.4 |  |  |  | 1.7 |  |  |  | (2.1 | )
EBITDA |  |  | 702.0 |  |  |  | 614.0 |  |  |  | 833.5 |
Depreciation and amortization |  |  | 214.3 |  |  |  | 189.4 |  |  |  | 200.9 |
Total investments, net of disposals and repayments |  |  | 122.9 |  |  |  | 124.5 |  |  |  | 438.3 |
RATIOS |  |  |  |  |  |  |  |  |  |  |  |
Earnings per share - R$ |  |  | 0.45 |  |  |  | 0.46 |  |  |  | 0.70 |
Net debt / Stockholders' equity |  |  | 0.59 |  |  |  | 0.62 |  |  |  | 0.52 |
Net debt / LTM EBITDA |  |  | 1.44 |  |  |  | 1.48 |  |  |  | 1.17 |
Net interest expense / EBITDA |  |  | 0.16 |  |  |  | 0.10 |  |  |  | 0.11 |
Gross margin |  |  | 8.0 | % |  |  | 7.8 | % |  |  | 7.9 | %
Operating margin |  |  | 3.1 | % |  |  | 3.1 | % |  |  | 3.9 | %
EBITDA margin |  |  | 4.4 | % |  |  | 4.5 | % |  |  | 5.1 | %

18

ULTRAPAR
CONSOLIDATED CASH FLOW STATEMENT
In millions of Reais

|  | JAN - MAR |
|  | 2014 |  |  | 2013 |
Cash Flows from (used in) operating activities |  |  | (36.6 | ) |  |  | (96.1 | )
Net income |  |  | 249.3 |  |  |  | 246.5 |
Depreciation and amortization |  |  | 214.3 |  |  |  | 189.4 |
Working capital |  |  | (510.8 | ) |  |  | (489.6 | )
Financial expenses (A) |  |  | 149.3 |  |  |  | 52.7 |
Deferred income and social contribution taxes |  |  | (15.8 | ) |  |  | 7.8 |
Income from sale of assets |  |  | (7.0 | ) |  |  | (5.5 | )
Cash paid for income and social contribution taxes |  |  | (108.8 | ) |  |  | (78.0 | )
Other (B) |  |  | (7.0 | ) |  |  | (19.4 | )
Cash Flows from (used in) investing activities |  |  | (138.0 | ) |  |  | (138.1 | )
Additions to fixed and intangible assets, net of disposals |  |  | (129.0 | ) |  |  | (122.3 | )
Acquisition and sale of equity investments |  |  | (9.0 | ) |  |  | (15.7 | )
Cash Flows from (used in) financing activities |  |  | (84.0 | ) |  |  | (683.9 | )
Debt raising |  |  | 936.0 |  |  |  | 111.8 |
Amortization of debt |  |  | (253.6 | ) |  |  | (164.8 | )
Interest paid |  |  | (374.9 | ) |  |  | (277.1 | )
Payment of financial lease |  |  | (1.3 | ) |  |  | (1.1 | )
Dividends paid (C) |  |  | (387.9 | ) |  |  | (352.7 | )
Other (D) |  |  | (2.3 | ) |  |  | - |
Net increase (decrease) in cash and cash equivalents |  |  | (258.6 | ) |  |  | (918.1 | )
Cash from subsidiaries acquired |  |  | 9.1 |  |  |  | - |
Cash and cash equivalents at the beginning of the period (E) |  |  | 3,543.7 |  |  |  | 3,131.8 |
Cash and cash equivalents at the end of the period (E) |  |  | 3,294.2 |  |  |  | 2,213.7 |
Supplemental disclosure of cash flow information |  |  |  |  |  |  |  |
Acquisition of Extrafarma - subscription of shares and subscription warrants (F) |  |  | 791.4 |  |  |  | - |
Acquisition of Extrafarma - gross debt assumed at the closing (F) |  |  | 207.9 |  |  |  | - |

(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. |  |  |
(C) | Includes dividends paid by Ultrapar and its subsidiaries to third parties. |  |  |
(D) | Corresponds to the transaction cost for the issuance of shares in 2014. |  |  |
(E) | Includes cash, cash equivalents and short and long term financial investments. |  |  |
(F) | As a result of the association with Extrafarma. For more information, see Note 3.a to our Interim Financial Information for 1Q14. |  |

19

IPIRANGA
CONSOLIDATED INVESTED CAPITAL
In millions of Reais

|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  | 2014 |  |  | 2013 |  |  | 2013 |
OPERATING ASSETS |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | 1,727.9 |  |  |  | 1,794.3 |  |  |  | 1,755.8 |
Trade accounts receivable - noncurrent portion |  |  | 97.3 |  |  |  | 108.1 |  |  |  | 100.4 |
Inventories |  |  | 1,194.6 |  |  |  | 1,085.5 |  |  |  | 1,033.0 |
Taxes |  |  | 208.2 |  |  |  | 117.8 |  |  |  | 177.0 |
Other |  |  | 264.5 |  |  |  | 198.2 |  |  |  | 223.8 |
Property, plant and equipment, intangibles and investments |  |  | 3,317.6 |  |  |  | 2,977.2 |  |  |  | 3,369.3 |
TOTAL OPERATING ASSETS |  |  | 6,810.1 |  |  |  | 6,281.1 |  |  |  | 6,659.4 |
OPERATING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Suppliers |  |  | 666.4 |  |  |  | 1,046.4 |  |  |  | 772.8 |
Payroll and related charges |  |  | 58.5 |  |  |  | 52.1 |  |  |  | 104.1 |
Post-retirement benefits |  |  | 94.8 |  |  |  | 109.1 |  |  |  | 91.7 |
Taxes |  |  | 80.4 |  |  |  | 59.7 |  |  |  | 80.0 |
Provision for contingencies |  |  | 159.7 |  |  |  | 175.6 |  |  |  | 159.4 |
Other accounts payable |  |  | 158.1 |  |  |  | 147.6 |  |  |  | 188.0 |
TOTAL OPERATING LIABILITIES |  |  | 1,217.9 |  |  |  | 1,590.6 |  |  |  | 1,396.0 |

IPIRANGA |
CONSOLIDATED INCOME STATEMENT |
In millions of Reais |
|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2013 |
Net sales |  |  | 13,921.7 |  |  |  | 11,858.8 |  |  |  | 14,312.8 |
Cost of sales and services |  |  | (13,093.2 | ) |  |  | (11,125.5 | ) |  |  | (13,421.5 | )
Gross profit |  |  | 828.4 |  |  |  | 733.3 |  |  |  | 891.2 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Selling |  |  | (327.2 | ) |  |  | (290.7 | ) |  |  | (308.8 | )
General and administrative |  |  | (155.2 | ) |  |  | (143.5 | ) |  |  | (137.3 | )
Other operating income (expenses), net |  |  | 17.8 |  |  |  | 14.9 |  |  |  | 34.8 |
Income from sale of assets |  |  | 4.2 |  |  |  | 7.9 |  |  |  | 24.1 |
Operating income |  |  | 368.0 |  |  |  | 322.0 |  |  |  | 504.0 |
Equity in earnings (losses) of affiliates |  |  | 0.1 |  |  |  | 0.2 |  |  |  | 0.2 |
EBITDA |  |  | 498.7 |  |  |  | 432.1 |  |  |  | 623.6 |
Depreciation and amortization |  |  | 130.5 |  |  |  | 109.9 |  |  |  | 119.4 |
RATIOS |  |  |  |  |  |  |  |  |  |  |  |
Gross margin (R$/m3) |  |  | 137 |  |  |  | 132 |  |  |  | 136 |
Operating margin (R$/m3) |  |  | 61 |  |  |  | 58 |  |  |  | 77 |
EBITDA margin (R$/m3) |  |  | 82 |  |  |  | 78 |  |  |  | 95 |
EBITDA margin (%) |  |  | 3.6 | % |  |  | 3.6 | % |  |  | 4.4 | %

20

OXITENO
CONSOLIDATED INVESTED CAPITAL
In millions of Reais

|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  | 2014 |  |  | 2013 |  |  | 2013 |
OPERATING ASSETS |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | 429.5 |  |  |  | 456.0 |  |  |  | 373.2 |
Inventories |  |  | 548.7 |  |  |  | 438.2 |  |  |  | 506.6 |
Taxes |  |  | 115.6 |  |  |  | 131.8 |  |  |  | 130.1 |
Other |  |  | 106.7 |  |  |  | 101.8 |  |  |  | 98.7 |
Property, plant and equipment, intangibles and investments |  |  | 1,660.5 |  |  |  | 1,636.8 |  |  |  | 1,685.3 |
TOTAL OPERATING ASSETS |  |  | 2,861.0 |  |  |  | 2,764.6 |  |  |  | 2,793.9 |
OPERATING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Suppliers |  |  | 137.1 |  |  |  | 154.7 |  |  |  | 139.4 |
Payroll and related charges |  |  | 71.5 |  |  |  | 47.9 |  |  |  | 94.3 |
Taxes |  |  | 25.9 |  |  |  | 23.9 |  |  |  | 26.6 |
Provision for contingencies |  |  | 89.7 |  |  |  | 76.4 |  |  |  | 88.0 |
Other accounts payable |  |  | 18.7 |  |  |  | 24.3 |  |  |  | 31.8 |
TOTAL OPERATING LIABILITIES |  |  | 342.9 |  |  |  | 327.1 |  |  |  | 380.1 |

OXITENO |
CONSOLIDATED INCOME STATEMENT |
In millions of Reais |
|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2013 |
Net sales |  |  | 840.3 |  |  |  | 754.5 |  |  |  | 834.9 |
Cost of goods sold |  |  |  |  |  |  |  |  |  |  |  |
Variable |  |  | (528.9 | ) |  |  | (510.3 | ) |  |  | (524.0 | )
Fixed |  |  | (77.0 | ) |  |  | (60.5 | ) |  |  | (77.2 | )
Depreciation and amortization |  |  | (29.5 | ) |  |  | (29.3 | ) |  |  | (29.7 | )
Gross profit |  |  | 204.8 |  |  |  | 154.4 |  |  |  | 204.0 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Selling |  |  | (61.3 | ) |  |  | (53.0 | ) |  |  | (59.0 | )
General and administrative |  |  | (67.5 | ) |  |  | (53.2 | ) |  |  | (69.0 | )
Other operating income (expenses), net |  |  | (0.3 | ) |  |  | 0.0 |  |  |  | (2.3 | )
Income from sale of assets |  |  | 0.0 |  |  |  | (0.1 | ) |  |  | 0.3 |
Operating income |  |  | 75.7 |  |  |  | 48.2 |  |  |  | 74.0 |
Equity in earnings (losses) of affiliates |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 |
EBITDA |  |  | 108.7 |  |  |  | 80.6 |  |  |  | 106.9 |
Depreciation and amortization |  |  | 32.9 |  |  |  | 32.3 |  |  |  | 32.7 |
RATIOS |  |  |  |  |  |  |  |  |  |  |  |
Gross margin (R$/ton) |  |  | 1,073 |  |  |  | 780 |  |  |  | 1,143 |
Gross margin (US$/ton) |  |  | 454 |  |  |  | 391 |  |  |  | 502 |
Operating margin (R$/ton) |  |  | 396 |  |  |  | 243 |  |  |  | 415 |
Operating margin (US$/ton) |  |  | 168 |  |  |  | 122 |  |  |  | 182 |
EBITDA margin (R$/ton) |  |  | 569 |  |  |  | 407 |  |  |  | 599 |
EBITDA margin (US$/ton) |  |  | 241 |  |  |  | 204 |  |  |  | 263 |

21

ULTRAGAZ
CONSOLIDATED INVESTED CAPITAL
In millions of Reais

|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  | 2014 |  |  | 2013 |  |  | 2013 |
OPERATING ASSETS |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | 178.6 |  |  |  | 199.4 |  |  |  | 168.4 |
Trade accounts receivable - noncurrent portion |  |  | 27.7 |  |  |  | 24.4 |  |  |  | 23.7 |
Inventories |  |  | 48.9 |  |  |  | 48.2 |  |  |  | 51.0 |
Taxes |  |  | 37.4 |  |  |  | 30.5 |  |  |  | 35.7 |
Escrow deposits |  |  | 169.4 |  |  |  | 133.7 |  |  |  | 153.4 |
Other |  |  | 36.5 |  |  |  | 39.8 |  |  |  | 29.9 |
Property, plant and equipment, intangibles and investments |  |  | 733.8 |  |  |  | 725.7 |  |  |  | 738.9 |
TOTAL OPERATING ASSETS |  |  | 1,232.2 |  |  |  | 1,201.7 |  |  |  | 1,201.0 |
OPERATING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Suppliers |  |  | 32.9 |  |  |  | 48.1 |  |  |  | 40.5 |
Payroll and related charges |  |  | 60.4 |  |  |  | 56.8 |  |  |  | 83.4 |
Taxes |  |  | 5.3 |  |  |  | 4.6 |  |  |  | 5.1 |
Provision for contingencies |  |  | 85.3 |  |  |  | 76.9 |  |  |  | 82.5 |
Other accounts payable |  |  | 23.0 |  |  |  | 17.7 |  |  |  | 26.2 |
TOTAL OPERATING LIABILITIES |  |  | 206.9 |  |  |  | 204.2 |  |  |  | 237.7 |
ULTRAGAZ |
CONSOLIDATED INCOME STATEMENT |
In millions of Reais |
|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2013 |
Net sales |  |  | 929.2 |  |  |  | 920.1 |  |  |  | 1,006.8 |
Cost of sales and services |  |  | (798.4 | ) |  |  | (788.5 | ) |  |  | (863.8 | )
Gross profit |  |  | 130.8 |  |  |  | 131.6 |  |  |  | 143.0 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Selling |  |  | (73.2 | ) |  |  | (67.0 | ) |  |  | (74.7 | )
General and administrative |  |  | (34.5 | ) |  |  | (31.4 | ) |  |  | (36.1 | )
Other operating income (expenses), net |  |  | 1.0 |  |  |  | (0.3 | ) |  |  | (0.0 | )
Income from sale of assets |  |  | 3.4 |  |  |  | (2.2 | ) |  |  | (2.5 | )
Operating income |  |  | 27.6 |  |  |  | 30.7 |  |  |  | 29.6 |
Equity in earnings (losses) of affiliates |  |  | - |  |  |  | 0.0 |  |  |  | (0.0 | )
EBITDA |  |  | 61.0 |  |  |  | 63.5 |  |  |  | 63.2 |
Depreciation and amortization |  |  | 33.3 |  |  |  | 32.8 |  |  |  | 33.5 |
RATIOS |  |  |  |  |  |  |  |  |  |  |  |
Gross margin (R$/ton) |  |  | 334 |  |  |  | 332 |  |  |  | 339 |
Operating margin (R$/ton) |  |  | 70 |  |  |  | 77 |  |  |  | 70 |
EBITDA margin (R$/ton) |  |  | 156 |  |  |  | 160 |  |  |  | 150 |

22

ULTRACARGO
CONSOLIDATED INVESTED CAPITAL
In millions of Reais

|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  | 2014 |  |  | 2013 |  |  | 2013 |
OPERATING ASSETS |  |  |  |  |  |  |  |  |
Trade accounts receivable |  |  | 25.2 |  |  |  | 25.4 |  |  |  | 26.9 |
Inventories |  |  | 1.9 |  |  |  | 2.4 |  |  |  | 1.9 |
Taxes |  |  | 10.6 |  |  |  | 11.1 |  |  |  | 10.8 |
Other |  |  | 21.6 |  |  |  | 21.8 |  |  |  | 18.5 |
Property, plant and equipment, intangibles and investments |  |  | 938.3 |  |  |  | 957.2 |  |  |  | 949.1 |
TOTAL OPERATING ASSETS |  |  | 997.6 |  |  |  | 1,017.8 |  |  |  | 1,007.3 |
OPERATING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |
Suppliers |  |  | 8.9 |  |  |  | 12.1 |  |  |  | 16.5 |
Payroll and related charges |  |  | 16.5 |  |  |  | 12.5 |  |  |  | 15.7 |
Taxes |  |  | 4.4 |  |  |  | 4.3 |  |  |  | 4.4 |
Provision for contingencies |  |  | 10.5 |  |  |  | 10.3 |  |  |  | 10.4 |
Other accounts payable¹ |  |  | 48.5 |  |  |  | 48.4 |  |  |  | 49.2 |
TOTAL OPERATING LIABILITIES |  |  | 88.8 |  |  |  | 87.6 |  |  |  | 96.2 |
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 |
|  | QUARTERS ENDED IN |
|  | MAR |  |  | MAR |  |  | DEC |
|  |  | 2014 |  |  |  | 2013 |  |  |  | 2013 |
Net sales |  |  | 85.5 |  |  |  | 75.7 |  |  |  | 81.6 |
Cost of sales and services |  |  | (34.9 | ) |  |  | (31.5 | ) |  |  | (33.2 | )
Gross profit |  |  | 50.6 |  |  |  | 44.2 |  |  |  | 48.4 |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |
Selling |  |  | (4.0 | ) |  |  | (4.0 | ) |  |  | (3.9 | )
General and administrative |  |  | (18.8 | ) |  |  | (16.8 | ) |  |  | (20.3 | )
Other operating income (expenses), net |  |  | 1.6 |  |  |  | 1.1 |  |  |  | 0.9 |
Income from sale of assets |  |  | (0.6 | ) |  |  | (0.1 | ) |  |  | 0.0 |
Operating income |  |  | 28.8 |  |  |  | 24.3 |  |  |  | 25.1 |
Equity in earnings (losses) of affiliates |  |  | 0.3 |  |  |  | 0.2 |  |  |  | 0.3 |
EBITDA |  |  | 41.3 |  |  |  | 35.9 |  |  |  | 37.5 |
Depreciation and amortization |  |  | 12.3 |  |  |  | 11.4 |  |  |  | 12.1 |
RATIOS |  |  |  |  |  |  |  |  |  |  |  |
Gross margin |  |  | 59 | % |  |  | 58 | % |  |  | 59 | %
Operating margin |  |  | 34 | % |  |  | 32 | % |  |  | 31 | %
EBITDA margin |  |  | 48 | % |  |  | 48 | % |  |  | 46 | %

23

EXTRAFARMA
CONSOLIDATED INVESTED CAPITAL
In millions of Reais

|  | QUARTERS ENDED IN |
|  | MAR |  |  | JAN 1 |
|  | 2014 |  |  | 2014 |
OPERATING ASSETS |  |  |  |  |  |
Trade accounts receivable |  |  | 91.9 |  |  |  | 68.4 |
Inventories |  |  | 213.9 |  |  |  | 164.6 |
Taxes |  |  | 11.7 |  |  |  | 7.7 |
Other |  |  | 7.1 |  |  |  | 6.4 |
Property, plant and equipment, intangibles and investments |  |  | 61.7 |  |  |  | 60.6 |
TOTAL OPERATING ASSETS |  |  | 386.4 |  |  |  | 307.7 |
OPERATING LIABILITIES |  |  |  |  |  |  |  |
Suppliers |  |  | 133.5 |  |  |  | 117.2 |
Payroll and related charges |  |  | 19.3 |  |  |  | 16.5 |
Taxes |  |  | 3.6 |  |  |  | 3.3 |
Provision for contingencies |  |  | 45.5 |  |  |  | 46.2 |
Other accounts payable¹ |  |  | 16.9 |  |  |  | 16.0 |
TOTAL OPERATING LIABILITIES |  |  | 218.8 |  |  |  | 199.2 |
¹Opening balance sheet |  |  |  |  |  |  |  |

EXTRAFARMA
CONSOLIDATED INCOME STATEMENT
In millions of Reais
|  | QUARTERS ENDED IN |
|  | MAR¹ |  |  | MAR¹ |
|  |  | 2014 |  |  |  | 2013 |
Gross revenues |  |  | 189.9 |  |  |  | 159.0 |
Sales returns, discounts and taxes |  |  | (9.0 | ) |  |  | (8.0 | )
Net sales |  |  | 180.9 |  |  |  | 151.1 |
Cost of sales and services |  |  | (123.6 | ) |  |  | (105.1 | )
Gross profit |  |  | 57.3 |  |  |  | 46.0 |
Operating expenses |  |  | (48.7 | ) |  |  | (36.1 | )
Other operating income (expenses), net |  |  | (0.1 | ) |  |  | (0.0 | )
Income from sale of assets |  |  | 0.0 |  |  |  | 0.1 |
Operating income |  |  | 8.5 |  |  |  | 9.9 |
Equity in earnings (losses) of affiliates |  |  |  |  |  |  |  |
EBITDA |  |  | 10.5 |  |  |  | 11.3 |
Depreciation and amortization |  |  | 2.0 |  |  |  | 1.4 |
RATIOS² |  |  |  |  |  |  |  |
Gross margin (R$/ton) |  |  | 30 | % |  |  | 29 | %
Operating margin (R$/ton) |  |  | 4 | % |  |  | 6 | %
EBITDA margin (R$/ton) |  |  | 6 | % |  |  | 7 | %
¹Relative to the months of February and March 2014 |  |  |  |  |  |  |  |
²Calculated based on gross revenues |  |  |  |  |  |  |  |

24

ULTRAPAR PARTICIPAÇÕES S/A
LOANS
In millions of Reais - Accounting practices adopted in Brazil

LOANS |  | Balance in March/20141 |  |  |  |  |  |  |
|  | Spironga |  | Oxiteno |  | Ultragaz |  | Ipiranga |  | Extrafarma |  | Ultrapar Parent Company / Other |  | Ultrapar Consolidated |  | Index/ Currency |  | Weighted average interest rate (% p.y.) 2 |  | Maturity |
Foreign Currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Notes |  | 575.2 |  | - |  | - |  | - |  | - |  | - |  | 575.2 |  | US$ |  | +7.3 |  | 2015 |
Foreign loan 4 |  | - |  | - |  | - |  | 179.6 |  | - |  | - |  | 179.6 |  | US$ + LIBOR |  | +8.0 |  | 2015 |
Foreign loan |  | - |  | 134.7 |  | - |  | - |  | - |  | - |  | 134.7 |  | US$ + LIBOR |  | +1.0 |  | 2017 |
Advances on foreign exchange contracts |  | - |  | 129.8 |  | - |  | - |  | - |  | - |  | 129.8 |  | US$ |  | +1.4 |  | < 340 days |
Financial institutions |  | - |  | 91.4 |  | - |  | - |  | - |  | - |  | 91.4 |  | US$ |  | +2.1 |  | 2014 to 2017 |
Financial institutions |  | - |  | 45.3 |  | - |  | - |  | - |  | - |  | 45.3 |  | US$ + LIBOR |  | +2.0 |  | 2017 |
BNDES |  | 12.1 |  | 20.9 |  | - |  | 6.5 |  | - |  | - |  | 39.5 |  | US$ |  | +5.9 |  | 2014 to 2020 |
Financial institutions |  | - |  | 28.7 |  | - |  | - |  | - |  | - |  | 28.7 |  | MX$ + TIIE |  | +1.1 |  | 2014 to 2016 |
Foreign currency advances delivered |  | - |  | 15.8 |  | - |  | - |  | - |  | - |  | 15.8 |  | US$ |  | +1.3 |  | < 109 days |
Subtotal |  | 587.3 |  | 466.7 |  | - |  | 186.0 |  | - |  | - |  | 1,240.0 |  |  |  |  |  |  |
Local Currency |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Banco do Brasil floating rate |  | - |  | - |  | - |  | 2,643.4 |  | - |  | - |  | 2,643.4 |  | CDI |  | 104.6 |  | 2015 to 2019 |
Debentures - 1st and 2nd issuances IPP |  | - |  | - |  | - |  | 1,440.1 |  | - |  | - |  | 1,440.1 |  | CDI |  | 107.9 |  | 2017 to 2018 |
Debentures - 4th issuance |  | - |  | - |  | - |  | - |  | - |  | 799.8 |  | 799.8 |  | CDI |  | 108.3 |  | 2015 |
BNDES |  | 189.0 |  | 129.1 |  | 103.0 |  | 173.9 |  | - |  | - |  | 595.1 |  | TJLP |  | +2.5 |  | 2014 to 2020 |
Banco do Brasil fixed rate 3 |  | - |  | - |  | - |  | 463.5 |  | - |  | - |  | 463.5 |  | R$ |  | +12.1 |  | 2015 |
Working capital loan - floating rate |  | - |  | - |  | - |  | - |  | 124.7 |  | - |  | 124.7 |  | CDI |  | +3.0 |  | 2014 to 2017 |
Banco do Nordeste do Brasil |  | - |  | 56.3 |  | 43.0 |  | - |  | - |  | - |  | 99.3 |  | R$ |  | +8.5 |  | 2018 to 2021 |
BNDES |  | 9.4 |  | 7.1 |  | 1.6 |  | 38.4 |  | 2.1 |  | - |  | 58.5 |  | R$ |  | +4.9 |  | 2015 to 2022 |
Research and projects financing (FINEP) |  | - |  | 28.2 |  | - |  | 21.1 |  | - |  | - |  | 49.3 |  | R$ |  | +4.0 |  | 2019 to 2021 |
Financial leasing |  | 44.0 |  | - |  | - |  | - |  | - |  | - |  | 44.0 |  | IGPM |  | +5.6 |  | 2031 |
Export Credit Note 5 |  | - |  | 25.1 |  | - |  | - |  | - |  | - |  | 25.1 |  | R$ |  | +8.0 |  | 2016 |
Working capital loan - fixed rate |  | - |  | - |  | - |  | - |  | 9.1 |  | - |  | 9.1 |  | R$ |  | +11.4 |  | 2014 to 2016 |
Research and projects financing (FINEP) |  | 2.0 |  | 1.6 |  | - |  | 1.5 |  | - |  | - |  | 5.1 |  | TJLP |  | +0.0 |  | 2023 |
Financial leasing fixed rate |  | - |  | - |  | - |  | - |  | 1.5 |  | 0.0 |  | 1.5 |  | R$ |  | +15.6 |  | 2014 to 2017 |
Agency for Financing Machinery and Equipment (FINAME) |  | - |  | - |  | - |  | - |  | 0.7 |  | - |  | 0.7 |  | TJLP |  | +5.5 |  | 2016 to 2022 |
Financial leasing floating rate |  | - |  | - |  | - |  | - |  | 0.6 |  | - |  | 0.6 |  | CDI |  | +2.8 |  | 2017 |
Subtotal |  | 244.3 |  | 247.3 |  | 147.7 |  | 4,782.0 |  | 138.5 |  | 799.9 |  | 6,359.7 |  |  |  |  |  |  |
Unrealized losses on swaps transactions |  | - |  | 8.1 |  | - |  | 1.6 |  | - |  | - |  | 9.7 |  |  |  |  |  |  |
Total |  | 831.7 |  | 722.1 |  | 147.7 |  | 4,969.6 |  | 138.5 |  | 799.9 |  | 7,609.4 |  |  |  |  |  |  |
Composition per annum |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Up to 1 year |  | 64.9 |  | 293.6 |  | 39.5 |  | 465.6 |  | 115.5 |  | 799.9 |  | 1,778.9 |  |  |  |  |  |  |
From 1 to 2 years |  | 622.9 |  | 87.2 |  | 33.9 |  | 1,093.7 |  | 16.7 |  | - |  | 1,854.3 |  |  |  |  |  |  |
From 2 to 3 years |  | 47.1 |  | 203.7 |  | 30.4 |  | 1,075.8 |  | 5.1 |  | - |  | 1,362.1 |  |  |  |  |  |  |
From 3 to 4 years |  | 27.2 |  | 106.1 |  | 21.7 |  | 633.8 |  | 1.0 |  | - |  | 789.8 |  |  |  |  |  |  |
From 4 to 5 years |  | 21.7 |  | 16.9 |  | 6.6 |  | 820.3 |  | 0.2 |  | - |  | 865.6 |  |  |  |  |  |  |
Thereafter |  | 47.9 |  | 14.6 |  | 15.4 |  | 880.5 |  | 0.1 |  | - |  | 958.7 |  |  |  |  |  |  |
Total |  | 831.7 |  | 722.1 |  | 147.7 |  | 4,969.6 |  | 138.5 |  | 799.9 |  | 7,609.4 |  |  |  |  |  |  |

Libor = London Interbank Offered Rate / MX$ = Mexican Peso / TIIE = Mexican Interbank Interest Rate Even / CDI = interbank certificate of deposit rate / TJLP = basic financing cost of BNDES (set by National Monetary Council. On March 31, 2014, TJLP was fixed at 5% p.a. / IGPM = General Index of Market Prices

|  | Balance in March/20141 |  |  |  |  |  |  |  |  |
|  | Ipiranga |  | Oxiteno |  | Ultragaz |  | Ultracargo |  | Extrafarma |  | Ultrapar Parent Company / Other |  | Ultrapar Consolidated |  |  |  |  |  |  |
CASH AND LONG TERM INVESTMENTS |  | 1,595.4 |  | 930.4 |  | 416.0 |  | 267.9 |  | 8.9 |  | 75.6 |  | 3,294.2 |  |  |  |  |  |  |

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 99.50% of CDI on average.
4 For this loan, a hedging instrument was hired with the objective of swapping the fixed to floating rate, equivalent to 104.10% of CDI on average.
5 For this loan, a hedging instrument was hired with the objective of swapping the fixed to floating rate, equivalent to 88.79% of CDI on average.
25

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 (02/2014)
Date, Time e Location:
May 14th, 2014, at 2:30 p.m., at the Company’s headquarters, located at Av. Brigadeiro Luís Antônio, nr 1,343 – 9th floor, in the City and State of São Paulo.
Attendance:
(i) Members of the Board of Directors, duly signed; and (ii) member of the Fiscal Council duly signed, pursuant to the terms of paragraph 3 of article 163 of the Brazilian Corporate Law.
Decisions:

| 1. | After having analyzed and discussed the performance of the Company in the first quarter of the current fiscal year, the respective financial statements were approved.

| 2. | The members of the Board of Directors were updated on strategic and expansion projects of the Company.

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

(Minutes of the Meeting of the Board of Directors of Ultrapar Participações S.A., held on May 14th, 2014)
As there were no further matters to be discussed, the meeting was closed, the minutes of this meeting were written, read and approved by all the undersigned member present, as well as by the undersigned 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
Flavio César Maia Luz – President of the Fiscal Council

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: May 14, 2014

| ULTRAPAR HOLDINGS INC. |
| By: | /s/ André Covre |
|  | Name: André Covre |
|  | Title: Chief Financial and Investor Relations Officer |