3Q13 Presentation of Results

8/14/2019 3Q13 Presentation of Results

1/18

Presentation of 3Q13 Results


2/18

Disclaimer

Thispresentation may include declarations about Millsexpectations regarding future

events or results. All declarations based upon future expectations, rather than

historical facts, are subject to various risks and uncertainties. Mills cannot guarantee

that such declarations will prove to be correct. These risks and uncertainties includefactors related to the following: the Brazilian economy, capital markets, infrastructure,

real estate and oil & gas sectors, among others, and governmental rules, that are

subject to change without prior notice. To obtain further information on factors that

may give rise to results different from those forecast by Mills, please consult the

reports filed with the Brazilian Comisso de Valores Mobilirios (CVM).

2


3/18

Agenda

3Q13 Results

Growth Plan

3


4/18

148,3156,3

173,4 173,4

187,5 188,4

211,8222,0

80,1 79,7

95,990,3

83,395,7 98,9

106,1

32,7 39,238,0

32,341,6 39,3

48,139,6

54,0%51,0%

55,3%

52,1%

44,4%

50,8%

46,7% 47,8%

15,1%13,6%

15,8%14,5% 14,5% 14,9% 14,2% 13,9%

0%

10%

20%

30%

40%

50%

60%

0,0

50,0

100,0

150,0

200,0

250,0

1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13 3Q13

Net Revenue EBITDA Net Income EBITDA Margin ROIC

3Q131Highlights

42ROIC: Return On Invested Capital

3Q13/3Q12 + 28.0% + 10.6% - 750 bps - 190 bps+ 4.4%

3Q13/2Q13 + 4.8% + 7.3% + 110 bps - 30 bps- 17.5%

In R$ million

NewRecords

Reclassified excluding the Industrial Services business unit, for comparison.* Excluding the positive impact of the provisions reversal in the amount of R$ 6.8 million in 3Q12


5/18

Net revenues totaled R$ 222.0 million in 3Q13

5

Rental77%

Technicalsupportservices

2%

Sales16%

Others5%

By service category

Heavy

Construction25%

Jahu -Residential

andCommercial

33%

Rental42%

By business unit


6/18

39,341,9

45,5 45,547,3 47,5

55,1 55,7 55,7

18,921,2

24,122,8

20,2

24,3 25,1

29,428,2

48,0%50,6%

52,9%50,2%

42,7%

51,3%

45,5% 52,8%

50,6%

16,6%

17,8%19,7%

18,3%

14,8%

18,6% 17,8%

20,9%19,7%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13 3Q13 3Q13*

Net Revenue EBITDA EBITDA Margin ROIC

Heavy ConstructionFinancial performance

1ROIC: Return On Invested Capital 6

+ 22.4% + 22.2% - 10 bps + 120 bps

+ 1.0% + 17.4% + 730 bps + 310 bps

In R$ million

3Q13/3Q12

3Q13/2Q13

NewRecords

* Excluding the positive impact of the provisions reversal in the amount of R$ 1.5 million in 3Q12 and taxes reversal in the amount of R$ 1.5 million in 3Q13


7/187

Important contracts per stage in the evolution of monthly revenue from the heavy

construction projectsNew

contracts*Contracts with

growing volume ofequipment

Contracts with highvolume of equipment

Contracts in thedemobilization process

Source: Mills

Time

RevenueIndex

(Basis100=Maximumm

onthlyrevenuein

thelifeofconstruction)

Newcontracts*

North beltway*Belo Montehydroelectric power plant*Norte-Sulrailroad*Duplication of BR-163 e MT-364 highways

Thermal power plant - MAPulp mill expansion- RS

Belo Montehydroelectricpower plantNorte-SulrailroadOeste-LesterailroadSubway line 4

SPCompanhia Siderrgica do

Pecmsteel millBraslia airportFortaleza airportNatal airportBRT Sul DFCais das Artes

ParaguaushipyardManaus thermal power plantLibrasterminal

Colder, Teles Pires andFerreira Gomeshydroelectricpower plantsComperjrefineryVale and Gerdau projectsEast beltway- SP

Gold and Silver monoraillines- SPMetropolitan Arch - RJSubway line 4 RJBRT TranscariocaViracopos airport

Guarulhos airportParanaensesarenaBeira-RiostadiumSurroundings of MaracanPorto Maravilha

Jirauhydroelectric power plantAbreu e Lima refineryCSN steel plantParanaensesArenaManaus airportPantanalarena

Natal arenaBR-448Cuiab lightrailSubway line 2 SPBRT Belo Horizonte

Vales S11D projectSo Lus airportTransposition of the So Francisco river*Subway lines 4 and 5 SP*

Viracopos and Guarulhos Airports*Companhia Siderrgica do Pecmsteel mill*

* New stretches


8/18

The construction work related to World Cup and Olympic events represented 38% of the

Heavy Construction business units 3Q13 revenue

8

1

4,2

1,5

0,70,3

2,9

7,5

6,1

0,4

Stadiums Urban Mobility Airports Ports

In Progress

Executed

Investments in infrastructure for the 2014 World CupTotal: R$ 23.6 billion

1In July 2013Source: 4th 2014 World Cup Report, Portal da Transparnciaand Mills

3Q13 Revenue

R$ 56.3 million

Industry

22%

Infrastructure

29%

Others

10%

Airports

16,7%

Urban mobility

10,4%

Stadiums

11,2%

World Cup and

Olympics

38%


9/18

Oil and Gas458

Mining48

Steel10

Chemical25

Pulp and Paper19

Others540

Industry investments 2014-2017R$ 1,100 billion

9

Energy176

Telecom125

Sanitation

45

Railways59

Roads62

Ports

34

Airports8

Infrastructure investments 2014-2017R$ 510 billion

Source: BNDES October 2013

Growth compared to the 2009-2012 period (%)

24% 25%

Investments in infrastructure and industry in Brazil should amount to R$ 1.6 trillion in the

2014-2017 period


10/18Tamoios

BR 116 (MG)

BR 153 (GO/TO)

BR 101 (BA)

BR 040 (DF-MG)

BR 163/267/262 (MS)

BR 060/153/262 (DF/GO/MG)

BR 163 (MT)

Ports - 1st stage - 31 contracts

Confins airport

Galeo airport

So Paulo subway line 6

BR 262 (MG/ES)

BR 050 (MG/GO)

Salvador subway line 2

InvestmentsIn R$ billion

10

Auction schedule of concessions: aprox. R$ 80 billion in the coming months

Dec-13

Nov-13

Oc

t-13

Sep-13

2014

Aug-13


11/18

52,5

58,960,5 60,5

66,0 64,966,5

72,4

26,3 27,2

33,8

29,426,1

27,724,6 24,4

50,1%46,1%

55,9%

48,6%

39,6%

42,8%

37,0%

33,7%

15,6% 14,8%

20,2%

16,9%

12,6% 12,8%

9,3% 8,2%

0%

10%

20%

30%

40%

50%

60%

0

10

20

30

40

50

60

70

80

1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13 3Q13


JahuResidential and CommercialFinancial performance

111ROIC: Return On Invested Capital

+ 19.6% - 27.9% - 2.220 bps - 1.200 bps

+ 8.8% - 0.8% - 330 bps - 110 bps

In R$ million

3Q13/3Q12

3Q13/2Q13

NewRecord

* Excluding the positive impact from tax contingency reversal in the amount of R$ 5.3 million in 3Q12.


12/1812

Commercial projects contributed 36% of 3Q13 equipment rental revenues

In R$ million

56%50% 50% 50% 50%

34%36% 37% 36% 36%

3%

1% 1% 2% 2%

6%13% 12% 12% 12%

3Q12 4Q12 1Q13 2Q13 3Q13

Others

Industrial

Commercial

Residential

49.2 49.9 53.3 52.0 47.8


13/18


14/18

50,9

54,8

48,8

59,3

51,5

59,857,2

6,24,7

0,1

8,46,3

8,5

3,3

12,1%

8,5%

0,2%

14,2%

12,2%14,3%

5,7%7,5%

3,9%

-6,2%

13,3% 8,9%

16,4%

9,5%

-10%

-5%

0%

5%

10%

15%

20%

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13


Industrial ServicesFinancial performance

141ROIC: Retorno On Invested Capital

+ 17.2% + 2,748.5% + 550 bps + 1.570 bps

- 4.3% - 61.9% - 860 bps - 690 bps

In R$ million

3Q13/3Q12

3Q13/2Q13


15/18

Agenda

3Q13 Results

Growth Plan

15


16/1816

Evolution of the number of branches

5 6 6 6 6 68 8

5 6

14 1516

17 17

4

44

66

7

7 7

4 4

1416

17

23 24

9

19 20

40

43

46

55 56

2007 2008 2009 2010 2011 2012 2Q13 Colunas1 3Q13

Rental

Industrial Services

Jahu - Residential andCommercial

Heavy Construction

+1


17/18

17

We invested R$ 119 million in rental equipment in 3Q13 and 79% of our 2013 revised budget

in the year to date

em R$ milhes

Capex

26

77 8916

86

112

2

2

6

74

217

274

119

382

481

3Q13 9M13 2013 Revised Budget

Rental

Industrial Services

Jahu - Residential andCommercial

Heavy Construction

Realized /2013 Budget (%)

86%

77%

41%

79%


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Mills Investor Relations

Tel.: (+55 21) 2123-3700

E-mail: [email protected]

www.mills.com.br/ri

Presentation of 3Q13 Results
mailto:[email protected]:[email protected]

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3Q13 Presentation of Results