Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's 3Q15 Results Conference Call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at www.ultra.com.br/ri. Please feel free to flip through the slides during the conference call. Today with us we have Mr. Thilo Mannhardt, Ultrapar's Chief Executive Officer; and Mr. Andre Pires de Oliveira Dias, Chief Financial and Investor Relations Officer. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the Company's presentation. After Ultrapar's remarks are completed, there will be a question-and-answer session. At that time further instructions will be given. [Operator Instructions]. We remind you that questions which will be answered during the Q&A session may be posted in advance in the webcast. A replay of this call will be available for one week. Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ultrapar Management and on information currently available to the Company. They involve risks, uncertainties and assumptions, because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ultrapar and could cause results to differ materially from those expressed in such forward-looking statements. Now, I'll turn the conference over to Mr. Mannhardt. Mr. Mannhardt, you may now begin the conference.

Thank you very much. Good afternoon to everybody. I would like to thank you all for your attendance in this conference call. It is a pleasure to talk to you. For today's meeting, we have prepared a presentation that will follow the agenda you may see in slide 3. As we usually do in the third quarter, we held today our Investors Meeting in Brazil, so the presentation today is a bit longer to address certain additional aspects of our business. I would start by presenting our trajectory from the perspective of strategy, management and corporate governance which allowed us to grow, create value and boost our businesses. After my presentation Andre Pires, my colleague and CFO of Ultra, will comment on the performance of each business and also on the trends for the next 12 to 15 months. In the end of the presentation, we will share with you some thoughts on our priorities and views for the coming years, followed by the already indicated Q&A session. I ask you all to kindly move to slide number five. Ultrapar is a multi-business company that is present in the day-to-day life of Brazilians, with Ipiranga, Oxiteno, Ultragaz and Ultracargo and more recently with Extrafarma as well all shown on this slide. Thanks to the hard work and extreme dedication of our team, we achieved leadership positions in the markets we operate at and consequently we stand out as one of Brazil's largest companies. If you move to slide six, I'd like to highlight the main attributes that characterize our businesses and that contributed to our growth over time. These attributes represent Ultra's working philosophy and the main characteristics of our businesses. It's a unique combination that makes us more solid, where our businesses are partly of resilience nature and partly…

Thank you, Thilo. Good afternoon, everybody. I would like to thank you all for participating in this conference call. As you may know, this is my first results conference call for Ultrapar. I took the position of CFO on July 20. And since then I have participated in an intensive process of integration. It has been a very rich period for me and I have witnessed the resilience of Ultra's business model and the outstanding professional capability of our people. I will - after Thilo's presentation on strategy, I will comment on the performance of each business and also on the trends for the next 12 to 15 minutes. So going to slide 16, let's begin our presentation with Ultrapar's historical performance. Ultrapar even though having undergone various economic cycles presented between 2006 and 2015 an annual growth of 35% in net sales of 24% growth in EBITDA and a 19% growth in net earnings. This does not mean that everything we will grow constantly forever, but it means that we don't rely on good economic conditions alone to achieve good performance and that resilience in our business model and the execution capability of our leaders many times are able to contract a more challenging operational environments. It is not by chance also the Ultrapar shares had a strong performance since the IPO, with operational performance influencing the market value of our stock. Shares had an average annual growth of 23% since the IPO, considering the reinvestment of dividends. In the same period the CDI which is a proxy for the Brazilian risk free rates, the appreciation of the CDI was 14% per year and Ibovespa, the index grew at 9% per year. Our consistent earnings growth and the resulting cash generation have allowed the company to pay higher dividends…

[Operator Instructions]. Our first question comes from Frank McGann of Bank of America Merrill Lynch. Please go ahead.

No, just a kind of a broad question, looking at what is a very difficult overall economic environment right now, you've been able to show very good growth on a very consistent basis for many, many years and the outlook remains still relatively positively. But I was wondering in terms of allocating capital, in terms of thinking about the growth in your various businesses, are you more cautious now in terms of CapEx and are you likely to - or do you think of your businesses as perhaps having less potential now say than six to 12 months ago and how have your views changed towards your businesses over the last six months or so?

Obviously, we've always been cautious in terms of focusing on the right opportunities and making sure that our CapEx would increase value for our shareholders over the long period of time. So in that sense, we haven't changed our approach towards CapEx. It's very clear to us that the economic environment is very challenging, but at the same time we're very confident on the resilience of our business model and also on the execution capability of our leaders. So obviously, we're looking at the opportunities in terms of organic growth, we're looking at the opportunities in terms of inorganic growth eventually, but keeping the financial discipline that we always had kept when making decisions. So to summarize, we're not changing or restricting CapEx at this point in times, taking into consideration the economic environment. We continue to see a business that will continue to generate a very healthy cash flow going forward. And therefore, we believe that our strategy will be maintained as it has been in the past.

Our next question comes from Christian Audi of Santander. Please go ahead.

I had a few questions, four to be exact. The first one, maybe Thilo could address this one. You are in a very strong financial position as a company and in a very unique position to be able to look probably at many inorganic growth opportunities. I was just wondering, are you still as aggressive as before in looking at these inorganic opportunities or given the very low visibility on the economic front, you're just referring to take a more conservative stance as you analyze this? So, that's the first question. The second question, if maybe you could speak in general terms Andre, about the impact the rising unemployment is having on your business in particular, maybe on Ipiranga. The third question, have you seen on Ipiranga any changes at all to the positive or negative in your conversion process? Is it becoming more difficult, is it becoming easier to convert the unbranded? And then, lastly, on Oxiteno, you made it very clear in your comments Andre, the guidance of margin of around R$300 per ton. I was just curious if this is a more of a conservative outlook. Do you think there is depending on FX and end market conditions space for this to be somewhere between R$300 and R$325 or no, you feel very good about the R$300 level? Thanks.

Well, I'll try to address on the order that they have been asked. Question number one, regarding our solid financial position and potential opportunities for M&A or inorganic growth, I believe that our approach remains the same. Obviously, the scenario, as I said, continues to be very challenging, but also there are a lot of opportunities, that is part of our DNA to analyze these opportunities. We don't have anything specific to talk about at this point, but it's part of our job and it's part of our DNA to evaluate opportunities if they appear. As I said before, the financial discipline is a key aspect of our DNA as well. So we will be obviously looking at this very cautiously, but we haven't changed our approach and again if you look at the history of Ultrapar, part of the growth that we had happened through inorganic opportunities. So, we're not giving that up taking into consideration the economic scenario. The second question which is the impact on rising unemployment specifically for Ipiranga, we continue to see, let's say, a stronger correlation when we look at Otto cycle with the average growth of our fleet. So clearly, when we look at our fleet growing at the pace around 3% to 4% per annum and when we compare to the Otto cycle, we see that the growth is very similar. So at this point, the rising unemployment hasn't changed this trend so far. Obviously, it's something that we're monitoring very closely, but we haven't seen any specific impact of the rising unemployment related to the overall volume, the volumes that we're seeing at Ipiranga. Obviously, you probably noticed that in our release, when you look at the mix of the Otto cycle. The mix is different now, right. I mean there…

And last follow up changing to the topic of taxation. Can you just explain why we saw this pick up on the tax rate this quarter versus the past one?

Christian, those are things that eventually happen one quarter to another. I think you should focus more on the long-term trend. Sometimes you have in a specific quarter higher deferred taxes than current taxes, that has to do with our operations overseas, but this is not a trend. I believe that it's normal to have some differences between quarter-to-quarter, but when you look over the long period of time, there is definite stability in terms of the overall tax bracket that we have in our results around the 30% level.

So you suggest that we continue to use 30% longer-term.

Yes.

Our next question comes from Wesley Bernabe of Banco do Brasil. Please go ahead.

I have a simple follow-up question for the conference call in Portuguese about Ultracargo. You mentioned that the Company is working on its commission of equipment and it was mentioned that recovery is expected for the next year. I would like to know do you expect this to happen at the end of the first half or by the end of the year? And the second point is about ConectCar. It was mentioned in the Events, but these are kind of cross-selling strategy by which customers who pay using ConectCar are using scanty fuel and you have now more than 500,000 users. My point is, what's the level of growth quarter-over-quarter is in the number of users since this strategy has started or how this growth path has changed the system? Thank you.

On Ultracargo, basically what we said there is that we're going to go through a decommissioning phase throughout 2016 and also what we call a rehabilitation of the terminal. Once this is all said and done and this could take all over a good portion of the year, we need to get all the licenses from the authorities who start operating. So it's very difficult to give you a specific date when this portion of the terminal would be operated. That's why we're not giving you a date. This could take the good portion of 2016 as a whole. On ConectCar, I think the cross-selling initiatives that ConectCar has, it's one of its main strategies. Obviously, I cannot give you an estimate in terms of number of users and all the other opportunities, because as we've mentioned as well, we just got a new partner that announced the transaction a couple of weeks ago. So the transaction is undergoing all its authorizations in order to be closed. I mean it's going to close in the next few months. So once this is all said and done, we need to sit down with our new partner and re-discuss and redesign all the business plan for that joint venture. But it's clear for us obviously that this brings a very interesting opportunity in terms of growth potential for this type of product and this type of business.

This concludes the question and answer session. At this time, I would like to turn the floor back over to Mr. Mannhardt for any closing remarks.

Okay. Well, thank you all for participating in the call. I'm looking forward to the next call, when we announce the results of the fourth quarter of 2015. Thank you very much.

Thank you. This concludes today's Ultrapar 3Q15 results conference call. You may disconnect your lines at this time.