Andre Pires - Chief Financial and Investor Relations Officer

Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to Ultrapar’s Second Quarter 2017 results conference call. There is also a simultaneous webcast that may be accessed through Ultrapar’s website at www.ultra.com.br/ri in MZiQ 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 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 second quarter of 2017 results. Here with me are the leaders of our businesses, as well as the Investor Relations team to help answering your questions. I’d like to take this first opportunity after the announcement of the CEO’s succession to welcome Frederico Curado, he will take off as the new CEO in October and will continue to generate and strengthen Ultra’s strategy that has been conducted by Thilo. Curado joined our team as part of the planned transition process on July 3rd and this man has intensively dedicated his time to interact with the company and its people. Thilo will continue with Ultrapar until the end of the current quarter and will remain with us through the end of December to support this transition process. I’d like to open our discussion today in Slide #3 with an overview of the main developments at Ultrapar, since our last call three months ago. As announced in June 2016, the acquisition of Alesat by was submitted to CADE, the Brazilian Antitrust Authority. Through over the last 14 months we worked intensively to demonstrate all the benefits involved in this transaction, as well as to offer an agreement which addressed the concerns raised by CADE. Nevertheless on August 2nd, CADE’s Administrative Board decided to reject the transaction. Consequently the acquisition will not take place anymore and either of the parties will be subject to any penalties. We did everything possible to reach an agreement and were absolutely focused on approving the transaction. On the other hand we respect CADE’s decision and intend to continue pursuing other growth bets for Ipiranga and Ultra. Specifically for Ipiranga, we have more than BRL1 billion of CapEx focused on…

Thank you. The floor is now open for questions. [Operator Instructions] Since there are no questions, this concludes the question-and-answer session. At this time, I would like to turn the floor back to Mr. Pires for any closing remarks.

Well, thanks for your participation and just before I conclude, a very – let’s say, a question that showed up in our call early on in Portuguese was about the size of the inventory losses that we had in the second quarter related to the price movements in diesel and gasoline and ethanol and since we gave this information in the conference call in Portuguese, I thought it was important to give the same information as well in the conference call in English. So the level of inventory losses in the second quarter for Ipiranga was around BRL100 million, so I wanted to make sure that this information is same for everyone. So with that, I conclude and thank you again for your participation and I hope to talk to you again in the conference call for the third quarter results early November. Thank you very much.

Thank you. This concludes today’s Ultrapar’s second quarter 2017 results conference call. You may disconnect your lines at this time.