32.

Segment Information

The Company operates five main business segments: gas distribution, fuel distribution, chemicals, storage and 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 raw materials used in 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 North, Northeast and Southeast regions of the country. The segments shown in the financial statements are strategic business units supplying different products and services. Intersegment sales are at prices similar to those that would be charged to third parties.

a. Financial information related to segments

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


	2018			2017			2016
				Restated (i)			Restated (i)
Net revenue from sales and services:
Ultragaz		7,043,246			6,071,002			5,365,106
Ipiranga		76,473,421			66,950,501			65,793,696
Oxiteno		4,748,428			3,959,416			3,701,413
Ultracargo		493,649			438,360			355,412
Extrafarma		2,027,988			1,868,919			1,578,605

		90,786,732			79,288,198			76,794,232
Others (1)		51,156			50,752			45,504
Intersegment sales		(139,905	)		(108,936	)		(99,703	)

Total		90,697,983			79,230,014			76,740,033

Intersegment sales:
Ultragaz		2,879			2,178			2,942
Ipiranga		935			1,003
Oxiteno		6,325			919			2,519
Ultracargo		82,573			54,174			48,941
Extrafarma		—			—			—

		92,712			58,274			54,402
Others (1)		47,193			50,662			45,301

Total		139,905			108,936			99,703

Net revenue from sales and services, excluding intersegment sales:
Ultragaz		7,040,367			6,068,824			5,362,164
Ipiranga		76,472,486			66,949,498			65,793,696
Oxiteno		4,742,103			3,958,497			3,698,894
Ultracargo		411,076			384,186			306,471
Extrafarma		2,027,988			1,868,919			1,578,605

		90,694,020			79,229,924			76,739,830
Others (1)		3,963			90			203

Total		90,697,983			79,230,014			76,740,033


	2018			2017			2016
				Restated (i)			Restated (i)
Operating income (expense):
Ultragaz		35,567			255,935			267,272
Ipiranga		1,396,574			2,357,125			2,364,014
Oxiteno		457,128			141,350			311,525
Ultracargo		124,720			75,042			127,739
Extrafarma		(118,329	)		(37,721	)		(3,848	)

		1,895,660			2,791,731			3,066,702
Others (1)		3,694			1,011			3,172

Total		1,899,354			2,792,742			3,069,874

Share of profit (loss) of joint-ventures and associates:
Ultragaz		12			1,245			(39	)
Ipiranga		(18,169	)		(19,777	)		(23,178	)
Oxiteno		880			1,417			975
Ultracargo		1,350			1,578			(27	)

		(15,927	)		(15,537	)		(22,269	)
Others (1)		1,148			36,210			29,745

Total		(14,779	)		20,673			7,476

Income before financial result, income and social contribution taxes		1,884,575			2,813,415			3,077,350

Financial result, net		(113,536	)		(474,296	)		(842,576	)

Income before income and social contribution taxes		1,771,039			2,339,119			2,234,774

Additions to property, plant, and equipment and intangible assets (excluding intersegment account balances):
Ultragaz		245,069			244,187			248,627
Ipiranga		417,519			536,936			387,138
Oxiteno		473,026			466,967			291,294
Ultracargo		167,034			105,028			81,166
Extrafarma		118,577			171,183			140,454

		1,421,225			1,524,301			1,148,679
Others (1)		18,382			22,626			17,365

Total additions to property, plant, and equipment and intangible assets (see Notes 13 and 14)		1,439,607			1,546,927			1,166,044
Asset retirement obligation – fuel tanks (see Note 20)		(264	)		(537	)		(483	)
Capitalized borrowing costs		(23,438	)		(22,243	)		(23,980	)

Total investments in property, plant, and equipment and intangible assets (cash flow)		1,415,905			1,524,147			1,141,581

Payments of contractual assets with customers – exclusive rights (see Note 11):

Ipiranga		390,177			529,732			514,291


	2018		2017		2016
			Restated (i)		Restated (i)
Depreciation and amortization charges:
Ultragaz		222,527		182,833		158,193
Ipiranga		283,426		245,424		220,282
Oxiteno		167,357		153,110		149,716
Ultracargo		52,414		47,669		43,356
Extrafarma		71,552		60,856		42,666

		797,276		689,892		614,213
Others (1)		15,213		14,652		13,943

Total		812,489		704,544		628,156

Amortization of contractual assets with customers – exclusive rights (see Note 11):
Ipiranga		371,825		463,049		463,490


	12/31/2018		12/31/2017
			Restated (i)
Total assets (excluding intersegment account balances):
Ultragaz		2,719,425		2,408,600
Ipiranga		15,381,887		15,388,646
Oxiteno		7,452,331		6,557,456
Ultracargo		1,478,697		1,394,083
Extrafarma		2,107,901		1,948,808

		29,140,241		27,697,593
Others (1)		1,359,154		586,753

Total		30,499,395		28,284,346

⁽¹⁾	Composed of the parent company Ultrapar (including goodwill of certain acquisitions) and subsidiaries Serma—Associação dos Usuários de Equipamentos de Processamento de Dados e Serviços Correlatos (“Serma”) and Imaven Imóveis Ltda.

⁽ⁱ⁾	See Note 2.x.

b. 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:


	12/31/2018		12/31/2017
United States of America (*)		857,049		511,912
Mexico		124,037		109,034
Uruguay		72,345		65,876
Venezuela (**)		2,427		22,480

	1,055,858		709,302

^(*)	The increase refers to the construction of a new plant in Pasadena, Texas.

^(**)

The reduction refers to the effects of the adoption of the Bolivar Soberano (See Note 2.s.1.ii).

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


	2018		2017		2016
			Restated (i)		Restated (i)
Net revenue:
Brazil		89,183,342		77,986,363		75,670,139
Mexico		207,615		190,205		183,124
Uruguay		48,096		33,873		33,782
Venezuela		68,877		54,788		25,393
Other Latin American countries		425,973		427,875		448,814
United States of America and Canada		465,840		292,709		158,280
Far East		96,394		72,469		57,662
Europe		138,347		119,097		97,261
Others		63,499		52,635		65,578

Total		90,697,983		79,230,014		76,740,033

⁽ⁱ⁾	See Note 2.x.

Sales to the foreign market are made substantially by the Oxiteno segment.