Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's 2016 and fourth-quarter 2016 results conference call. There is also a simultaneous webcast that may be accessed through Ultrapar's website at www.ultra.com.br/ri and Engage-X platform. Please feel free to flip through the slides during the conference call. Today with us we have Mr. Andre Pires, Chief Financial and Investor Relations Officer, together with other executives of Ultrapar. We would like 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. Pires. Mr. Pires, you may now begin the conference.

Well, thank you very much. Good morning, everyone. It's a great pleasure to be here to discuss Ultrapar's fourth-quarter and full-year 2016 performance. Some of my colleagues from our businesses and from the IR team are also here to help me answering your questions. Starting with slide number 3 when we're going to discuss the performance of 2016, I would like to start emphasizing that Ultrapar reached another year of earnings growth in 2016 despite the challenging economic environment we faced in Brazil. The resilience of our businesses, the execution capacity of our teams, the investments and our focus on differentiation and innovation all contributed to the continuation of our growth and value creation. In 2016, we reported a consolidated EBITDA of BRL4.2 billion, an increase of 7% year on year. Net earnings reached BRL1.6 billion, up 4% from 2015. Consistent earnings growth and consequent cash generation once again allowed us to increase dividends. The Board approved dividend payment of BRL472 million for the second half of the year, equivalent to BRL0.87 per share. As a result, the accumulated dividend declared in 2016 reached BRL907 million, in line with the growth of our earnings in 2016. The annualized dividend yield is 2.5% considering the average share price in 2016 and the payout ratio is 58%, same levels of recent years and an indication of our confidence on our results and performance going forward. In 2016, we analyzed and executed various initiatives and projects that allowed us to pave new avenues of growth for our businesses. Working diligently and as a solid business model, we announced three important transactions. We signed a sale and purchase agreement for the acquisition of Alesat in the fuel distribution business and Liquigas in LPG distribution, both pending approval from the Brazilian antitrust authority. We also…

[Operator Instructions] And the first question will come from Frank McGann of Bank of America. Please go ahead.

I have two questions if I could. One is just on Ipiranga. You've done an excellent job keeping margins very strong. So I was just wondering what types of, in the current weak environment that you're seeing, I was just wondering what types of pressures you're seeing either from a cost side or relative to the weak demand that might make it more difficult going forward to sustain those margins or what trends you're seeing that could affect those? And then secondly in terms of Extrafarma, in terms of going forward and continuing to expand the network, you mentioned the 45% of stores are in the mature phase. When do you think you pass kind of over some point, I don't know what percentage it would be, where the net positive effect of being in the mature phase with a little bit better cost sales mix begins to offset or be more than the period where you're having more that are immature and that have less favorable economics?

Well, starting with Ipiranga, I mean we continue to focus on the implementation of our business model throughout our network. I think there are some specific points that are worth noting when we look at the recent performance. One is the pace of the expansion of our network. I mean we finished 2016 opening 453 new service stations, which represents 333 net additions to our network. So the implementation and most part in most part of the cases, this expansion basically had convenience included. Our convenience penetration is now at 30% versus 23% a year ago, for example. In addition, out of this 453 openings, 70% of those were basically branded, unbranded service stations, which normally brings a better return on invested capital than when you open a new one. So as for the margins, obviously we have to bear in mind that the fourth quarter normally is a quarter that you have from a seasonality point of view a level of EBITDA margin per cubic meter that is higher than the average of the year. When we look at the average EBITDA margin or EBITDA in reals per cubic meter for 2016, which was BRL131 per cubic meter, we continued to focus on expanding this margin. However, obviously, the pace of expansion of this margin will not be as strong as it was in the last couple of years. That's one point. But the second point is in terms of volume, we are expecting better volumes in 2017 versus 2016 basically coming from the basically the maturity of this accelerated expansion of our network and also by the fact that we are probably going to have a more of, say, accretive competition environment in Brazil after the recent change in pricing policy from Petrobras. So those factors plus a…

Okay. Thank you very much.

[Operator Instruction] I am showing no additional questions. We will conclude the question and answer session. I would like to hand the conference back to Mr. Pires for any closing remarks.

Well, thanks, everyone. Thanks for the participation. And as always, any further questions you might have you could address to our IR team. And I hope to see you again in our next conference call, which will happen in May. Thank you very much. Have a good afternoon everybody.

Thank you, sir. Ladies and gentlemen, thank you. This concludes today's Ultrapar 2016 and fourth-quarter 2016 results conference call. You may disconnect your lines at this time.