Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar's 1Q '17 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 from Ultrapar. 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. Pires. Mr. Pires, you may now begin the conference.

Thank you very much. Good morning, everyone. It's a pleasure to be here with you to discuss Ultrapar's 1Q '17 results. Here with me are officers from our businesses as well as the Investor Relations team to help answering your questions. Starting with slide number 3, I'd like to open out discussions today with an overview of the main developments at Ultra, since our last call three months ago. The macroeconomic environment in the first quarter remained challenging. However, we're starting to see signs of a gradual recovery in the Brazil economy, which benefits our segments mostly in the GDP performance. A more stable environment together with investments and the strategic initiatives we're implementing allow us to pursue a pair of sustained growth at Ultra, both in 2017 and the long run. In the first three months we executed our CapEx plan by deploying BRL485 million in expanding our scale and the quality of operations, intensifying the initiatives of differentiation and modernization. We continue to implement our plan of expanding Ipiranga service station, Ultragaz with sellers and Extrafarma stores. Our project on Oxiteno's new ethoxylation plant in the United States is also evolving. In February, we obtained one of the approvals for Ultracargo's capacity expansion at the Itaqui port terminal. Overall Ultrapar's CapEx plan for 2017 is BRL2.2 billion. We have also been working on other sources of growth and value creation. One of them has recently taken a step forward by receiving a final approval from the Anti-Trust Authority, CADE, to create a new look lubricants company in a joint venture between with Ipiranga and Chevron. We're currently streamlining the integration plan in order to have a single company up and running, combine the lubricant businesses of both companies by the end of the year. In addition we have…

Thank you. The floor is now open for questions. [Operator Instructions] The first question comes from Lillian Yang of HFBB. Please go ahead.

Hi, thanks for taking my call, it's Lilly. Could you give us a little bit of color on how you see the few demand distribution in the competitive environment. Your margins got to be a little bit up versus first quarter and now versus first quarter, but how do you see that going forward? You mentioned in the press release there's been a little bit market share in the resellers business. Can you also talk about it? Thanks.

Hi, Lilly. Thanks for your question. Basically when you look at our margins measured by EBITDA equilibrium, we saw an increase of 6% in the first quarter of 2017 versus the first quarter of 2016. Obviously, from a seasonality point of view, normal, the first quarter has always a much higher EBITDA opportunity type of indicator, which happened obviously in the end of last year as well. What we have been telling our investors and the market in general is that we should concentrate and focus on the absolute EBITDA that Ipiranga generated obviously in 2016, in the first quarter of 2017 and our expectations for the absolute EBITDA for the year of 2017 as a whole. We are assuming performance in terms of EBITDA growth, which is very similar to what we had in 2016, but these are different drivers. While in 2016 this performance came exclusively from margins, in 2017 we're seeing of combination of better volumes and also the continuation of margin improvements at a slower pace than 2016, but a growth nevertheless. So that is talking about EBITDA. Regarding the competitive environment and market share changes, what we can say is that with accelerated expansion of our network, of Ipitanga's network which started to accelerate more intensively in the third and the fourth quarter of 2016 and obviously also in the first quarter of 2017. With expansion we bear fruits, are starting bear fruits as much as the network that is being added starts to become more mature. So these situations are in line with our strategy that is being in accelerating the expansion of our service stations network.

So just for me to understand a bit, yes, margins as you know they're improving very slowly, they should improve going further, but I also see that your CpEx investments are growing and your working capital financing is growing as well. So I can I think about this CapEx cycle because if I read well like the ROIC or ROEs of this year and maybe next we'll still be lower than when you compare with the primary three years there and if you think then only within three years from now the returns ROIC will be going back to the levels of three years ago or you think it's going to be fast like?

Well, when we talk about CapEx, our CapEx comparison with the first quarter of 2016 was higher. It was higher because - if you look Ipiranga's expansion last year the curve was very much inclined towards the end of the year, so we accelerated our CapEx in the third and fourth quarter of last year. For this year we're expecting a more let's say - more equilibrium in the distribution of our CapEx throughout the year should be more positive. So you should see a CapEx expense to me at the same levels throughout the four quarters of 2017. Obviously our CapEx plan as I explained in the call for 2017 is higher than 2016. We have a CapEx budget of BRL2.2 billion and in addition to the accelerated expansion of Ipiranga, we have also some other important projects this year such as the construction or the final part of the construction of the ethoxylation plant of oxygen in Pasadena, Texas and also the expansion of our port terminal Itaqui for Ultracargo and on and on. We should think back to the maturity of ROE, our ROE should be maintained at the same levels. You've been seeing the ROE, even with these increase in our CapEx, so you should not see a difference in our EBITDAs of the accelerated CapEx at this point in time.

Okay, thank you

[Operator Instructions] This concludes the question-and-answer section. At this time I would like to turn the floor back to Mr. Pires for any closing remarks.

Well, thank you everyone. I hope to see you all again on our next call in August. Thanks very much. Bye-bye.