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March 11th, 2016
Presentation of 4Q15 and Full Year2015 results
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2
Main actions carried out in 2015: generating greater value tocustomers and shareholders
Presentation of 4Q15 Results – 03/11/2016
Heavy Construction and Real Estate commercial management have been broughttogether in a single business unit;
Single inventory – better management More technical alternatives of projects and a complete product range for the real
estate market
Resource optimization Greater capillarity - more efficient client prospecting
Consolidation of Engineering and operational Officers functions;
Optimization of teams and projects More comprehensive qualification
Focus on the customer –
end of conflicts between operations and logistics
Financial and Investor Relations management were combined in the FinancialDepartment;
Consolidation of departments at all levels
A Human Resources Executive was hired
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3 Presentation of 4Q15 Results – 03/11/2016
Review of scope of utilities
Move of our head office from Barra da Tijuca to our address in Jacarepaguá
Administrative and operational departments are closer - improving the information flow, andsimplifying our decision-making process.
Search for greater austerity, costs and expenses reduction
Renegotiation of contracts of rent of deposits, security and cleaning Operating vehicles fleet analysis
Closing of branches in progress Five branches in Construction:
Low growth perspectiveNegative impact in cash
Three branches in Rental:Branches with longer maturity
Headcount reduction in all departments of backoffice;
Main actions carried out in 2015: generating greater value tocustomers and shareholders
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4
Organization structure as of September 2015
• With new organizational structure , with annualized personnel savings estimated at R$ 22million per year;
• Non recurring effects of R$ 2.8 million in 4Q15.
Presentation of 4Q15 Results – 03/11/2016
Ricardo Gusmão
Commercial Officerfor Construction
Avelino Garzoni
Engineering andOperationsOfficer
Marcelo YamaneRental Executive
T.B.N.CFO and IRO
Deise VieiraHuman Resources
Executive
Sérgio Kariya
CEO
Construction
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5
Impairment
Presentation of 4Q15 Results – 03/11/2016
This quarter a provision for impairment was required in the amount of R$ 57.1 million:
The recoverable amount of these assets was determined based on economic forecasts fordetermining the market value of the investee, upon a revenue approach, through a 10-year term :discounted cash flow forecast.
Assumptions(i) revenues were forecast based on historical data and growth prospective for the segment and
Brazilian economy;(ii) negative operating loss for 2015, resulting from the reduced activity of the industry;(iii) the corresponding cash flows are discounted at the average discount rate, obtained using a
methodology typically applied by the market, taking into account the weighed average cost ofcapital (WACC);
(iv) a strict working capital evolution control policy, during the forecasted period..
Construction Business Unit: Management estimates that the recoverable amount of theassets of the Construction Business Unit, including the goodwill on acquisiton of Jahu in2008 and of GP Sul, in 2011, is R$ 442.5 million, against R$ 473.4 million on December2014. This way, provision for impairment of this asset in the amount of R$ 30.9 millionwas required.
Investiment in Rohr: Management estimates that the recoverable amount in the investment
in Rohr is R$ 61.2 million, requiring a provision for impairment of this asset in the amount ofR$ 26.2 million.
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1 Reclassified excluding the Industrial Services business unit for comparison .
2 Sum of Rental and Construction business units, excluding Construction imparirment of R$ 30,9 million
6
Financial Performance¹
Presentation of 4Q15 Results – 03/11/2016
In R$ million
4Q15/4Q14 4Q15/3Q15 2015/2014 CAGR 12-15
Net revenue -30% -6% -27% -5%
EBITDA -46% -14% -51% -21%
181,9
163,9
147,9136,5
127,9
55,647,4 52,1
35,130,2
-6,2 -7,6 -8,2-17,2
-57,9
30,6% 28,9%
35,3%
25,7%
23,6%
6,6%4,0%
2,0%
0,8%-2,9%
4Q14 1Q15 2Q15 3Q15 4Q15²
Net revenue EBITDA Net earnings EBITDA margin (%) ROIC
665,5
832,3794,2
576,1
339,0
403,1
335,7
164,8151,5 172,6
64,3
-90,9
50,9%48,4%
42,3%
28,6%
14,7%
14,1% 6,6%
-2,9%
2012 2013 2014 2015²
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83,968,7 70,3
52,5
41,2 31,6
45,4
26,525,9
181,9
136,5127,9
4Q14 3Q15 4Q15
Per business unitR$ Million
Rental Heavy Construction Real Estate
Net Revenue Breakdown
7
4Q15/4Q14 4Q15/3Q15
Rental -26.4% -5.2%
Sales -27.2% 33.1%
Technical assistance and others -68.6% -57.3%
Total -29.7% -6.3%
4Q15/4Q14 4Q15/3Q15
Rental -16.2% 2.3%
Heavy Construction -39.8% -23.2%
Real Estate -42.9% -2.2%
Total -29.7% -6.3%
Presentation of 4Q15 Results – 03/11/2016
149,4
116,0 110,0
8,0
7,0 8,6
10,6
3,24,9
13,9
10,34,4
181,9
136,5127,9
4Q14 3Q15 4Q15
Per service type
R$ million
Rental Sales of semi-new equipment
Sales of new equipment Technical assistance and Others
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Sales reached R$ 53.9 millions in 2015, of which 54% of semi-new equipment
11,58,7
6,6 8,0 6.7 6,8 7,08,6
5,5
17,1
12,4 10,6 11,3
5,53,2
4,9
17,1
25,8
19,1 18,6 17,9
12,3
10,2
13,5
0,0
5,0
10,0
15,0
20,0
25,0
30,0
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
Sales of semi-new equipment Sales of new equipment
In R$ million
Equipment sales
Presentation of 4Q15 Results – 03/11/2016
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Evolution in Rental Net Revenue per business unit
9 Presentation of 4Q15 Results – 03/11/2016
56,2
3,82,2 50,3
3Q15 Volume Price and Mix 4Q15
Construction
59,8 0,1 0,1 59,7
3Q15 Volume Price and Mix 4Q15
Rental
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10
Utilization rate dropped in Construction and increased inRental
Presentation of 4Q15 Results – 03/11/2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Construction
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%Rental
LTM 4Q15 average = 61.9%LTM 4Q15 average = 49.9%
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Public51%
Private37%
PPP12%
Source of funds
R$ 29.1 million
11
Heavy Construction -Rental revenue breakdown in 4Q15
Infraestructur e
74%
Industry13%
Others13%
Per sector
R$ 29,1 million
Presentation of 4Q15 Results – 03/11/2016
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Central West and South
Papuda`s Penitentiary
Guaíba Bridge - RS
12
Important construction Works with Mills participation
States wtih Mills’ presence
North and Northeast
Parnamirim Bridge
Hydroelectric plant São Manoel
VLT Fortaleza
S11D project from Vale
Transposition of the São FranciscoRiver
CSN factory BA526 e Salvador Subway
Southeast
Velodrome
Sorocaba and SãoJosé dos Camposhospital
Mineradora Galvani
Duplicating Cofins Airport
Sanitation project
Subway lines 4 and 5
Rio Jones Bridge Viaduto Imigrantes
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Residential50%
Commercial42%
Others8%
Rental revenue per segment
R$ 21.1 million
Real Estate -Rental revenue breakdown in 4Q15
13Presentation of 4Q15 Results – 03/11/2016
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Construction sector remains in 4Q15 the main user of Mills’
motorized access equipment
14
Construction57%
Non-construction
31%
Spot12%
Rental revenue by useR$59.7 million
Rental
81%
Technicalassistance
1%
Sales12%
Others6%
Net revenues per type of serviceIn 4Q15
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Evolution of sales costs and write-offs
Presentation of 4Q15 Results – 03/11/2016
7,9
4,33,0 3,1
3,0
4,03,8
5,6
4,7
3,2
3,0
1,9
15,6
11,4
9,8
10,7
52%57% 55%
67%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
1Q15 2Q15 3Q15 4Q15
Sales of new equipment costs
Sales of semi-new equipment costs
Write-offs
Sales costs + Asset Write-offs / Sales net revenue + indemnities
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Evolution of execution of works and warehouse
Presentation of 4Q15 Results – 03/11/2016
17,1 18,4 18,919,7
9,310,6
12,8 9,72,7
4,24,2 4,6
2,33,9
3,5
2,431,4
37,139,4
36,419%
25%
29% 29%
0%
5%
10%
15%
20%
25%
30%
35%
0
10
20
30
40
50
60
70
1Q15 2Q15 3Q15 4Q15
Personnel Material/Maintenance and repair Others Freights % Net revenue
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22,1 21,82,2 0,1 1,9
0,9 0,5
5,0
10,0
15,0
20,0
25,0
30,0
COGS, ex-
depreciation 3Q15
Sales and Asset
write-offs
Personnel Maintenance Freight Others COGS, ex-
depreciation 4Q15
27,125,31,3
0,9 1,1 0,2 0,2
5,0
10,0
15,0
20,0
25,0
30,0
COGS, ex-
depreciation
3Q15
Sales and Asset
write-offs
Personnel Maintenance Freight Others COGS, ex-
depreciation
4Q15
17
Evolution of COGS, ex-depreciation, per business unit
Rental
Presentation of 4Q15 Results – 03/11/2016
Construction
COGS, ex – depreciationIn R$ million
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18
Commercial, Operating and Administrative G&A were 18%lower yoy.
4Q15/4Q14 4Q15/3Q15
Commercial, Operating and Administrative -24,6% -9,1%
General Services 8,6% -5,3%
Other Expenses -18,4% 138,9%
SG&A total, ex-depreciation and ADD -17,8% -2,4%
1
G&A corresponds to the sum of Rental and Construction business units, excluding Construction imparirment of R$ 30,9 millionPresentation of 4Q15 Results – 03/11/2016
37,734,4 31,5 31,2 28,4
9,910,0
10,9 11,310,7
5,03,7
2,9 1,74,1
52,6
48,245,3 44,3 43,2
0,0
10,0
20,0
30,0
40,0
50,0
60,0
0,0
10,0
20,0
30,0
40,0
50,0
60,0
4Q14 1Q15 2Q15 3Q15 4Q15
Commercial, Operating and Administrative General Services Other Expenses
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ADD reached 5.8% of net revenue in 4Q15
19
0,3%
1,7% 2,1%2,0%
5,3%
12,8%
1,2%
5,9% 5,8%
-1,0%
1,0%
3,0%
5,0%
7,0%
9,0%
11,0%
13,0%
15,0%
2010 2011 2012 2013 2014 1Q15 2Q15 3Q15 4Q15
2010-2014 Average = 2,3%
As % of net revenues
Changesin allowance for doubtful debts(ADD)
6,8%
Ex clients under investigation
4,2%5,9%
-0,8%
Presentation of 4Q15 Results – 03/11/2016
6,0%
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ADD Aging
20 Presentation of 4Q15 Results – 03/11/2016
27,0%
35,0%40,0%
45,0% 45,0%51,0%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
More than 120 days receivables / Accounts receivable total
29,8%
38,5%46,9% 48,6% 51,8%
58,0%
3Q14 4Q14 1Q15 2Q15 3Q15 4Q15
ADD balance/ Accounts receivable total
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21
EBITDA totaled R$ 30.2 million in 4Q15
In R$ million
Changes in EBITDA¹
1 EBITDA corresponds to the sum of Rental and Construction business units, excluding Construction imparirment of R$ 30,9 millionPresentation of 4Q15 Results – 03/11/2016
35,1
30,26,1
2,5 2,11,1 0,5
2,9
33,1
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
EBITDA 3Q15 Rented
volume
Sales, Tech
assist and
others
COGS G&A ex-ADD
and
impairment
Change in
ADD
EBITDA 4Q15 Non recurring
items
EBITDA 4Q15
ex-non
recurring
items
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22
EBITDA totaled R$ 164.8 million in 2015, considering R$ 21.9million of non recurring items
In R$ million
Changes inEBITDA¹
Presentation of 4Q15 Results – 03/11/2016
1
EBITDA corresponds to the sum of Rental and Construction business units, excluding Construction imparirment of R$ 30,9 million
335,7 178,9
39,2
17,6
25,7 3,9 164,8
21,9 186,7
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
EBTIDA 2014 Rented
volume
Sales, Tech
assist and
others
COGS G&A ex-ADD
and
impairment
Change in
ADD
EBITDA 2015 Non
recurring
items
EBITDA 2015
ex-non
recurring
items
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Construction –Financial Performance¹
23
4Q15/4Q14 4Q15/3Q15 2015/2014 CAGR 12-15
Net revenue -41% -15% -33% -12%
EBITDA -110% -125% -77% -45%
In R$ million
¹ It does not exclude non recurring items, except R$ 30,9 million of impairment in 4Q15Presentation of 4Q15 Results – 03/11/2016
98,0
84,3
73,467,7
57,5
22,409
13,012,7
8,7
-2,134
22,9%
15,4%17,3%
12,8%
-3,7%1,2%-2,2% -3,1%
-8,6%4Q14 1Q15 2Q15 3Q15 4Q15¹
Net revenue EBITDA Margem EBITDA (%) ROIC
412,0
474,9
423,4
283,0
197,7 201,9
139,0
32,2
48,0%
42,5%
32,8%
11,4%
4,4%
-8,6%
2012 2013 2014 2015¹
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Rental –Financial Performance¹
24
In R$ million
4Q15/4Q14 4Q15/3Q15 2015/2014 CAGR 12-15
Net revenue -16% 2% -21% 5%
EBITDA -3% 22% -33% -2%
¹ It does not exclude non recurring itemsPresentation of 4Q15 Results – 03/11/2016
83,9
79,674,5
68,7 70,3
33,2 34,4
39,4
26,4
32,3
39,6%
43,3%
53,0%
38,4%
45,9%
11,5% 8,8% 7,4%5,2% 5,5%
4Q14 1Q15 2Q15 3Q15 4Q15
Net revenue EBITDA EBITDA margin (%) ROIC
253,5
357,3370,8
293,2
141,2
207,0196,7
132,6
55,7%57,9%
53,0%
45,2%
18,2% 18,2%
11,5%
5,5%
2012 2013 2014 2015
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Cash generation
25
¹ Before the interest paid and investiments.
² Net cash generated by the operating activities minus net cash applied in investment activitiesPresentation of 4Q15 Results – 03/11/2016
158,9
198,9
295,5
383,7 372,7
288,3
-340,2
-218,8-190,8
5,3
116,1
202,4
2010 2011 2012 2013 2014 2015
Adjusted Operating cashflow¹ and Free cashflowIn R$ million
Adjusted Operating cashflow¹ Free cashflow
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232
174 150
106 106
38
Cashposition
2016 2017 2018 2019 2020
Principal amortization scheduleIn R$ million
574 47 232
389
Principal Interests CashPosition
Net Debt
Debt, as of December 31, 2015In R$ million
Debt profile
26Presentation of 4Q15 Results – 03/11/2016
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Debt Indicators
Net Debt/EBITDA
Debentures Covenants :(1)EBITDA/net financial results >= 2.0; and(2)Net Debt/EBITDA
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Capital Increase
Presentation of 4Q15 Results – 03/11/2016
Private subscription through the issuance of new shares
Preemptive rights to the subscription of the new shares: February 11, 2016 Exercise period of the preemptive rights: 2/15 until 3/15/2016
Established price: R$ 2.63 - average of daily closing prices weighted by thetrading volume in the trading sessions held between November 27th, 2015 andFebruary 4th, 2016
Minimum Subscription: R$ 105.4 million x 40 million shares
Maximum Subscription : R$ 125.0 million x 47 million shares
Reasons for the fundraising:
The resources aims to strengthen the capital structure of the Company, by reinforcing
its cash to meet medium- and long-term needs for development of its activities, allowinginvestment in new technologies, products that increases productivity, or acquisitions atan unstable macroeconomic scenario and in its sector. The strengthening of liquidity atthis point is relevant to assign greater flexibility to the Company to respond to variationsin cash generation and competitive conditions.
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Mills – Investor Relations
Tel.: (21) 3924-8768
E-mail: [email protected]
www.mills.com.br/ri
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