3Q14 Presentation of Results

November 6th, 2014

Presentation of 3Q14 Results

1

Financial Performance3

¹ Excluding Easy Set effect.

² ROIC: Return on Invested Capital. Until 2010, ROIC was calculated considering the effective income tax rate for the period, while from 2011 onwards ROIC was calculated considering a

theoretical 30% income tax rate.

³ Reclassified excluding the Industrial Services business unit, for comparison

Presentation of 3Q14 Results – 11/06/2014

In R$ million

188.4

211.8222.0

210.1 207.8213.0

191.5 191.5

95.7 98.9106.1 102.4

107.5 105.9

66.7

79.0

39.348.1

39.645.6

33.9 33.4

3.211.3

50.8%46.7% 47.8%

48.7% 51.7% 49.7%

34.8%

41.3%

14.7%14.8% 14.4% 14.1% 13.8%

12.3%

9.4% 9.9%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 3Q14¹

Net revenue EBITDA Net earnings EBITDA margin (%) ROIC²

354.5

462.8

665.5

832.3 822.3 822.3

168.4217.4

339.0

403.1 382.4 394.8

103.3 92.2

151.5172.6

116.1 124.1

47.5% 47.0%50.9% 48.4% 46.5% 48.0%

21.0%

12.3%

14.7% 14.1%9.4% 9.9%

2010 2011 2012 2013 LTM3Q14 LTM3Q14¹

3Q14¹/3Q13 3Q14¹/2Q14 LTM3T14¹/LTM3T13 CAGR 10-13

Net revenue -14% -10% 2% 33%

EBITDA -26% -25% 3% 34%

Net earnings -72% -66% -26% 19%

Locação84%

Technical assistence

1%

Sales10%

Others5%

Per service type

Heavy Construction

27%

Real Estate25%

Rental48%

Per business unit

2 Presentation of 3Q14 Results – 11/06/2014

Net revenue totaled R$ 191.5 million in 3Q14


EBITDA reduction of R$ 27 million qoq

105.9

10

4.43.9

3.8 3.1 1.5

79.0

0

20

40

60

80

100

120

EBITDA2Q14

Rentedvolume

Price andmix

Sales volume PDD Maintenance Layoffs EBITDA3Q14

In R$ million

EBITDA Evolution


Historical level of Mills’ ADD represented 1.9% of net revenue

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2010 2011 2012 2013 9M14

Heavy Construction

Real Estate

Rental

Mills

2010-9M14 Average

In R$ million

Allowance for doubtful debts (ADD) evolution

Positive cash flow of R$ 74 million


(340)

(219)

(31)

(154)

(13)

11

74

(400)

(350)

(300)

(250)

(200)

(150)

(100)

(50)

-

50

100

2010 2011 2012 2013 1Q14 2Q14 3Q14

Free cash flow1

1 Net cash generated by the operating activities minus net cash applied in investment activities

7447 51

106

35

104185

60

90

15

131

163

161

267

105

15

18

20

36

21

324

413

292

499

177

2010 2011 2012 2013 9M14

Rental

Real Estate

HeavyConstruction

In R$ million

Capex ¹

Realized 9M14 /

2014 Capex

budget (%)

96%

60%

62%

Mills invested R$ 155.3 million in rental equipment in 9M14, of

which R$ 13.8 million in 3Q14

6

¹ Reclassified excluding Industrial Services business unit, for comparison.


Total 76%

Rental equipment

In R$ million

Heavy Construction – Financial Performance

7

* Excluding the positive effect of tax reversal in the amount of R$ 1.5 million in 3Q13.

1 ROIC: Return on Invested Capital. Until 2010, ROIC was calculated considering the effective income tax rate for the period, while from 2011 onwards ROIC was calculated considering a



47.5

55.1 55.7 55.758.6

51.0

55.5

51.9

24.3 25.1

29.4 28.2 29.3

25.6 25.6

21.4

51.3%

45.5%

52.8%50.6%

49.9%50.2%

46.2%41.2%

17.8% 17.7% 18.1% 18.1% 19.2%17.9%

16.3%13.3%

1Q13 2Q13 3Q13 3Q13* 4Q13 1Q14 2Q14 3Q14

Net revenue EBITDA EBITDA margin (%) ROIC¹

154.3

131.6

174.1

217.0 217.1

73.6

57.8

84.3

108.1101.9

47.7%

43.9%

48.5% 49.8%46.9%

24.1%

12.1%

17.2%

19.2%

13.3%

2010 2011 2012 2013 LTM3Q14

3Q14/3Q13 3Q14/2Q14 LTM3T14/LTM3T13 CAGR 10-13

Net revenue -7% -7% 0% 12%

EBITDA -27% -17% -6% 14%

• Cafezal mountain

• Tamoios highway

outline

• Fortaleza subway

• Joá Elevated road

duplication - RJ

• Comperj refinery*

•Transoceânica

highway - BA

• Sanitation projects–

CE

•BR-040 highway –

MG/MT/GO

•BR- 163 highway –

MT

•Gerdau expansion –

MG

• BR-381 highway

duplication – MGEvo

luti

on

of

reve

nu

eg

en

era

tio

n

(Ba

sis

10

0=

Ma

xim

um

mo

nth

ly r

eve

nu

e in t

he

life

of co

nstr

uctio

n)

Length of time of Mills participation in the construction work – average cycle is 24 months

• Belo Monte

hydroelectric power

plant

•Jirau hydroelectric

power plant*

• Vale’s S11D project

•Transnordestina

railroad

•Oeste-Leste railroad

• North beltway

• Subway line 5 – SP

• Salvador subway

• Olympic Park

• Reduc-Comperj

Pipeline

• Silver monorail line -

SP

• Colíder and Teles Pires

hydroelectric power plants

• Comperj refinery

• Companhia Siderúrgica do

Pecém steel mill

• Norte-Sul railroad

• Transposition of the São

Francisco river

• Vale projects

• Gold monorail line- SP

• Subway line 4 – RJ

• Olympic Park

• Subway line 4 – SP

• Cuiabá light rail

• Paraguaçu shipyard

• Jirau hydroelectric power plant

• Viracopos airport.

• Goiânia airport.

• BRT Transcarioca

• Metropolitan Arch – RJ

• Vale projects

• Pulp mill expansion- RS

New

contracts*

Contracts with growing

volume of equipment

Contracts with high volume

of equipmentContracts in the process of

demobilization

* New stretches

Important contracts per stage1 in the evolution of monthly

revenue from projects

8

1 In 3Q14


1 in 3Q14

9

Characteristics of the major projects in progress


Private54%

PPP15%

Public31%

Source of funds¹

Industry36%

Infrastructure

56%

Others8%

Per sector¹

Of the R$ 104 billion investments planned, approximately R$

74 billion have been successfully auctioned

10

Lucas do Rio Verde railroad

Curitiba subway

Ports - 2th stage - 18 contracts

Ports - 1th stage - 31 contracts

BR 262 (MG/ES)

BR 116 (MG)

BR 101 (BA)

Tamoios highway

São Paulo subway line 18

BR 153 (GO/TO)

BR 040 (DF-MG)

BR 163/267/262 (MS)

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

BR 163 (MT)

Goiânia VLT

Confins airport

Galeão airport

São Paulo subway line 6

BR 262 (MG/ES)

BR 050 (MG/GO)

Salvador subway line 2

InvestimentsIn R$ billlion

2013

×

2014

Source: Mills, Goldman Sachs and Credit Suisse


Real Estate – Financial Performance

11

¹ Excluding Easy Set effect.

² ROIC: Return on Invested Capital. Until 2010, ROIC was calculated considering the effective income tax rate for the period, while from 2011 onwards ROIC was calculated considering a



In R$ million

64.966.5

72.4

54.2

59.5 58.8

48.6 48.6

27.724.6 24.4

17.1

23.525.2

-4.7

7.7

42.8%

37.0% 33.7%31.5%

39.4%42.8%

-9.6%

15.8%15.0%13.4%

10.6%8.1% 6.7% 6.5%

2.1%3.8%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 3Q14¹

Net revenue EBITDA EBITDA margin (%) ROIC²

105.1

155.8

238.0

258.0

221.2 221.2

43.9

66.0

113.4

93.8

61.173.4

41.7% 42.4%47.7%

36.4%

27.6%

33.2%

23.5%

14.3% 15.7%

8.1%

2.1%3.8%

2010 2011 2012 2013 LTM3Q14 LTM3Q14¹

3Q14¹/3Q13 3Q14¹/2Q14 LTM3T14¹/LMT3T13 CAGR 10-13

Receita Líquida -33% -17% -18% 35%

EBITDA -69% -70% -29% 29%

18.0

15.6

32.0 32.5

14.5

6.2

3.5

13.5

0.6

-11.2 -15.0

-10.0

-5.0

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2010 2011 2012 2013 2014

Net revenues marginal operating profit


Easy Set: revenues reached R$ 102 million, with operating

profit of 12.4%, since its release

Easy Set performanceR$ million

12


EBITDA reduction of R$ 18 million qoq, of which R$ 6 million

are non-recurring items

25.2 4.3

3.8

1.1 1.8

0.8 13.4 4.8

0.9 7.7

0

5

10

15

20

25

30

EBITDA2Q14

Rentedvolume

Price andmix

Salesvolume

ADD Others EBITDA3Q14*

Bonusreversal

Layoffs EBITDA3Q14

Non-recurrent items


• Merge of Real Estate and Heavy Construction maintenance

activities

• Sale of used equipment

• Transfer of equipment to Heavy Construction

• Expand presence in markets less exploited, such as the light

industrial and sanitation markets

Actions to improve Real Estate result

76.1

90.193.9

97.2 97.3 98.6

91.0

43.649.3

52.356.0 58.4

55.150.0

57.3%54.7% 55.7%

57.7%60.1%

55.8% 54.9%

18.0%18.5% 18.1% 18.2% 17.8%

16.2%14.5%

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Net revenue EBITDA EBITDA margin (%) ROIC¹

Rental – Financial Performance

15

1 ROIC: Return on Invested Capital. Until 2010, ROIC was calculated considering the effective income tax rate for the period, while from 2011 onwards ROIC was calculated considering a



In R$ million

3Q14/3Q13 3Q14/2Q14 LTM3Q14/LMT3Q13 CAGR 10-13

Net revenue -3% -8% 15% 55%

EBITDA -4% -9% 21% 58%

95.1

175.4

253.5

357.3

384.0

51.0

93.6

141.2

201.2219.5

53.6% 53.4%55.7%

56.3%

57.2%

19.2%16.5% 18.2% 18.2%

14.5%

2010 2011 2012 2013 LMT3Q14

8

11

16

21

30

34

0

5

10

15

20

25

30

35

40

2009 2010 2011 2012 2013 9M14

16

Motorized acess equipment fleet

In thousands of units

Source: Mills


+13%

In the first 9 months of this year 4,000 motorized access units

came onto the Brazilian market

Mills - Investor Relations

Tel.: +55 21 2123-3700

E-mail: [email protected]

www.mills.com.br/ri

Documents

3Q14 Presentation of Results