2Q13 Quarterly Financial Reports

8/22/2019 2Q13 Quarterly Financial Reports

1/21

Presentation of 2Q13 Results


2/21

Disclaimer

This presentation may include declarations about Mills expectations 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


3/21

Sale of the Industrial Services business unit

2Q13 Results

Growth plan

Agenda

3


4/21

4

We entered into an agreement in July to sell our Industrial Services business unit

Objective:

To focus on businesses in which Mills competencies are able to add higher value to its

shareholders and clients.

Price:

R$ 102 million; implicit EV/EBITDA ratio= 5.2x

Form of payment:

R$ 25 million - advance payment on the date of the sale agreement

R$ 17 million on the closing of the sale

R$ 60 million in four equal annual installments, adjusted by the CDI rate

Financial results of Industrail Services1:

Net revenue: R$ 214 million

EBITDA: R$ 19.5 million, which represents 5.3% of Mills EBITDA1Last twelve months ended March 31, 2013.


5/21

Agenda


2Q13 Results

Growth plan

5


6/21

164.0175.1 175.1

193.5 199.1211.1

222.2 222.2

246.8239.9

271.5

58.050.8

59.9

76.486.2 84.4

96.1 90.4 91.7102.0 107.5

22.617.8

23.8 29.532.7

39.2 38.0 34.741.6 39.3

48.1

35.4%

29.0%

34.2%39.5%

43.3%

40.0%

43.2%40.7%

37.1%

42.5%

39.6%

12.7%

8.6% 11.1%

14.2% 15.1%13.6%

15.8%14.5% 14.5%

14.9% 14.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0.0

50.0

100.0

150.0

200.0

250.0

300.0

2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13

Net Revenues EBITDA Net Income EBITDA Margin ROIC

2Q13 Highlights

6

2Q13/2Q12 + 28.6% + 27.3% - 40 bps + 60 bps+ 22.5%

2Q13/1Q13 + 13.2% + 5.4% - 290 bps - 70 bps+ 22.4%

In R$ million

NewRecords

2 ROIC: Return on Invested Capital

* Excluding the negative impact of R$ 9.1 million of Allowance for Doubtful Debts (ADD) in 3Q11 and the positive impact of the provisions reversal in the

amount of R$ 6.8 million in 3Q121Pro forma result, including figures for the Industrial Services business unit


7/21

Net revenues reached R$ 271.5 million in 2Q13

7

Rental66%

TechnicalSupportServices

20%

Sales

10%

Others4%

Per type of service

HeavyConstruction

20%

Jahu -Residential

andCommercial

25%IndustrialServices

22%

Rental33%

Per business segment

1Pro forma result, including figures for the Industrial Services business unit


8/21

30.633.2 33.2

36.1

39.341.9

45.5 45.547.3 47.5

55.1

14.1

8.6

14.4

19.5 18.9 21.224.1

22.820.2

24.3 25.1

46.2%

26.0%

43.5%

54.0%

48.0%

50.6% 52.9%

50.2%

42.7%

51.3%

45.5%

12.1%

4.5%

12.0%

17.5% 16.6%17.8%

19.7%18.3%

14.8%

18.6% 17.8%

0%

10%

20%

30%

40%

50%

60%

-

10.0

20.0

30.0

40.0

50.0

60.0

2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13

Net Revenues EBITDA EBITDA Margin ROIC

Heavy Construction Financial performance

8

+ 31.5% + 18.2% - 510 bps 0 bps

+ 16.2% + 2.9% - 580 bps - 80 bps

In R$ million

2Q13/2Q12

2Q13/1Q13


* Excluding the negative impact of R$ 5.8 million of Allowance for Doubtful Debts (ADD) in 3Q11 and the positive impact of the provisions reversal in the amount of R$1.5 million in 3Q12

NewRecords


9/21

-

20

40

60

80

100

120

140

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33

9

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*

New phases ofBelo Monte hydroeletric powerplant New stretches of the Guarulhos airport New stretches of Subway lines 4 and 5 SP SP-055 highway

New phase of the transposition of the So Francisco river Duplication ofTamoios and Bandeirantes highwaysLibras terminal

Cuiab airportCais das ArtesCompanhia Siderrgica do Pecm steel mill Minas-Rio ore pipeline

North beltway SP Cable-stayed bridge in Laguna Manaus thermoelectric unit

Belo Monte hydroelectricpowerplantOesteLeste railway Monorail line Gold SP Braslia airport Fortaleza airport Natal airport BRT Belo Horizonte BRT Sul DF East beltway - SP

Companhia Siderrgica doPecm steel millParaguau shipyard

Colder, Jirau and Teles Pireshydroelectric powerplantsComperjrefinery Abreu e Lima refineryNorte-SulrailwayMonorail line Silver - SP

BRT Transcarioca Metropolitan arch RJVales mine and railway Viracopos airport

Guarulhos airportPorto Maravilha Pantanalarena Beira-Rio stadium Natal stadium Cuiab light rail

Subway line 2 - SP CSN steel plantParanaenses arena BR-448 Manaus airport


10/21

4.2

1.50.7

0.3

2.97.5

6.1

0.4

Stadiums Urban mobility Airports Ports

In Progress

Executed

The construction work related to World Cup and Olympic events represented 31% of the

Heavy Construction business segments 2Q13 revenue

10

2Q13 RevenueR$ 55.1 million

Industry

26%

Infrastructure

33%

Others11%

Airports

10.3%

Urban mobility

10.2%

Stadiums

10.2%

World Cup and

Olympics

31%

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

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


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34.7

39.4

52.552.5

58.960.5 60.5

66.0 64.966.5

13.516.4

23.926.3 27.2

33.8

29.426.1

27.724.6

38.8%41.6%

45.5%

50.1%

46.1%

55.9%

48.6%

39.6%

42.8%

37.0%

13.0%

12.5%16.3%

15.6% 14.8%

20.2%

16.9%

12.6% 12.8%

9.3%

0%

10%

20%

30%

40%

50%

60%

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13


Jahu Residential and Commercial Financial performance

11

+ 12.8% - 9.5% - 910 bps - 550 bps

+ 2.5% - 11.4% - 580 bps - 350 bps

In R$ million

2Q13/2Q12

2Q13/1Q13

* Excluding the positive effect of R$ 5.3 million of tax contingency reversal in 3Q121 ROIC: Return on Invested Capital

NewRecord


12/2112

Commercial projects contributed 36% of 2Q13 equipment rental revenues

In R$ million

12%17%

7%

18% 19%

45% 36%

43%

32% 31%

34%34% 36% 37% 36%

3%2%

1% 1% 2%

6%11% 13% 12% 12%

48.5 49.2 49.9 53.3 52.0

2Q12 3Q12 4Q12 1Q13 2Q13

Others

Industrial

Commercial

Residential - others

Residential - listedcompanies

Residential57 %

Residential53 %

Residential50%

Residential50%

Residential50%


13/2113

Real estate market continues with a good outlook

351

363376

392

408

430

457

504

536

2006 2007 2008 2009 2010 2011 2012 2013E 2014E

Number of shopping centers

Source: Abrasce, operational reports from companies and Mills

5.7

4.1

4.8

1Q12 2Q12 2Q13

Total launches

1 Cyrela, Direcional,Even, Eztec, Gafisa, Helbor, MRV, Rodobens, Tecnisa and Trisul

17%

in R$ billion


14/21

41.245.6 45.6

54.9 56.5 55.4

67.4

74.2 76.1

90.1

22.3 21.725.0

30.7 34.931.4

38.0 36.9

43.6

49.3

54.1%

47.6%

54.8% 56.0%

61.8%

56.6% 56.5%

49.8%

57.3%

54.7%

17.1%

12.9%16.0%

18.6%20.3%

16.3% 16.3% 16.9%19.1% 18.5%

0%

10%

20%

30%

40%

50%

60%

70%

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13


Rental Financial Performance

14

+62.6% + 57.1% - 190 bps + 220 bps

+ 18.5% + 13.1% - 260 bps - 60 bps

In R$ million

2Q13/2Q12

2Q13/1Q13

* Excluding the negative effect of R$ 3.3 million of Allowance for Doubtful Debt (ADD) in 3Q11


NewRecords


15/21

Mills is one of the top 5 access rental companies with largest fleet growth in 2012

15Source: Access International

5th

30th

Fleet size ranking, at the end of 2012

Largest fleet growth ranking, in 2012


16/21

The Brazilian fleet of motorized access equipment grew 19% up to May

16Source: Mills and Yengst Associates

8

11

16

21

25

40

0

5

10

15

20

25

30

35

40

45

2009 2010 2011 2012 2013 ... 2017E

Motorized access equipment fleet

In thousands of units

+19.0%

+34.9%

+46.2%

+32.1%

+13.9% p.a.


17/21

57.5 56.9

50.2 50.9

54.8

48.8

59.3

51.5

59.8

8.1

4.1

2.3

6.24.7

0.1

8.46.3

8.5

14.2%

7.2%

4.7%

12.1%

8.5%

0.2%

14.2% 12.2%

14.3%

14.2%

3.2%

-1.2%

7.5%

3.9%

-6.2%

13.3%

8.9%

16.4%

-10%

-5%

0%

5%

10%

15%

20%

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13


Industrial Services Financial performance

17

+ 9.0% + 82.5% + 580 bps + 1250 bps

+ 16.1% + 35.7% + 210 bps + 750 bps

In R$ million

2Q13/2Q12

2Q13/1Q13

1 ROIC: Return On Invested Capital


18/21


2Q13 Results

Growth plan

Agenda

18


19/21

19

Evolution of the number of branches

5 6 6 6 6 68 8

5 6

14 1516

16 17

4

44

66

77

7

4 4

1416

17

18

23

9

19 20

40

43

46

49

55

2007 2008 2009 2010 2011 2012 1Q13 Colunas1 2Q13

Rental

Industrial Services

Jahu - Residential andCommercial

Heavy Construction

+6


20/21

20

We invested R$ 143 million in rental equipment in 1Q13 and 55% of our 2013 revised budget

in the year to date

1H13Capex 2013

(%)

In R$ million

Capex

2950

8945

70

112

0

0

6

69

143

274

143

263

481

2Q13 1H13 2013 Budget

Rental

Industrial Services

Jahu - Residential andCommercial

Heavy Construction57%

62%

8%

52%


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Presentation of 2Q13 Results

Mills Investor Relations

Tel.: +55 (21) 2123-3700

E-mail: [email protected]

www.mills.com.br/ri
mailto:[email protected]:[email protected]

2Q13 Quarterly Financial Reports

Documents

Transcript of 2Q13 Quarterly Financial Reports