ULTRAPAR PARTICIPAÇÕES S.A.
Publicly Traded Company
CNPJ nº 33.256.439/0001- 39
NIRE 35.300.109.724

MARKET ANNOUNCEMENT

Ultrapar announces its investment plan for 2016

São Paulo, December 10, 2015 - Ultrapar Participações S.A. ('Ultrapar') announces its investment plan for 2016, approved by its Board of Directors.

Ultrapar's investment plan for 2016 amounts to R$ 1,809 million, which demonstrates the continuity of good opportunities to grow through increased scale and productivity gains, as well as modernization of existing operations.

Organic investment plan¹ (R$ million)
2016 (B)
Ipiranga
887
Oxiteno
460
Ultragaz
208
Ultracargo
118
Extrafarma
124
Others
12
Total
1,809

¹ Net of disposals, excluding acquisitions

At Ipiranga, we plan to invest (i) R$ 354 million to maintain the pace of expansion of its distribution network (through the conversion of unbranded service stations and the opening of new gas stations) and of am/pm and Jet Oil franchises, focused on the Midwest, Northeast and North regions of Brazil, and in new distribution centers to supply the convenience stores, (ii) R$ 112 million in the expansion of its logistics infrastructure to support growth, mainly through the construction and expansion of logistics facilities, and (iii) R$ 421 million in the maintenance and modernization of its activities, mainly in the renewal of contracts of its distribution network and the renovation of service stations, as well as information systems to support its operations.

Oxiteno's investment plan approved for 2016 totals R$ 460 million. This amount includes US$ 65 million to the construction of the new ethoxylation unit at its Texas (USA) plant, which was announced in November 2015, and shall be concluded by the end of 2017. The new unit's capacity will be 170,000 tons per year at its final stage. The remaining amount will be focused in maintenance and modernization of its plants for higher productivity, as well as information systems.

At Ultragaz, investments will be focused mainly (i) on capturing new clients in the bottled and bulk segment, (ii) on the replacement and purchase of LPG bottles, (iii) on the expansion and maintenance of filling plants, and (iv) on IT with focus on systems to support its operations.

Ultracargo will invest R$ 118 million mainly (i) in the modernization of safety systems of its terminals, (ii) in the expansion of Itaqui terminal, which shall start operating in 2017, and (iii) in the adjustment and maintenance of the infrastructure of its terminals.

At Extrafarma, we plan to invest R$ 124 million mainly in the opening of new drugstores and in the maintenance of its activities.

In addition, the plan includes strengthening our IT platform in all business to serve even better our customers, to improve logistics efficiency, to develop new ways of selling and to expand relationships with our resellers and partners.

André Pires de Oliveira Dias


Chief Financial and Investor Relations Officer
Ultrapar Participações S.A.
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