1q16 presentation of results

8/17/2019 1Q16 Presentation of Results

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May 6, 2016

Presentation of 1Q16 Results


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2

Disclaimer

This presentation may contain statements that present expectations of the Management of Mills Estruturas e Serviços de Engenharia S/A(“Mills”) about future events or results. Such statements are based on beliefs and assumptions of our Management taken with our best

knowledge and information to which Mills currently has access. All statements, when based on future expectations, and not on historicalfacts, involve various risks and uncertainties, and are not performance guarantees. Mills and employees cannot guarantee that such

statements will prove to be correct. Such risks and uncertainties include factors relating to the Brazilian economy, the capital markets, the

infrastructure, real estate, and oil and gas sectors, competitive pressures, among others, and governmental rules that are subject tochange without notice. For additional information on the factors that may give rise to results different from those estimated by Mills, please

consult the reports filed with the Securities and Exchange Commission - SEC.

Presentation of results for 1Q16 - 06/06/2016


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3

Our Company

Complete in engineering products and services, in Brazi l for more than 60 years.

With ability to plan, integrate services and products for the construction and industry

sectors. We invested in the professional qualification, together with diversified expertise,

to del iver fas t, smar t and rel iab le responses that increase the product ivi ty o f the

works and the resul ts of our c lient.

National Coverage19 States and Federal District in 33 locations

Construction: Focus on infrastructure, Industrial, residential e Commercialprojects. Engineering solutions, sales and rental of concreting and shoring,

providing services of technical planning, project and supervision related to

equipment.

Rental : Rental and sale of motorized access equipment, such as aerialworking platforms and telescopic handlers to lift workers and cargos,

respectively.



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4

Subsequent Events


Registration and payment of the capital increase: Subscription in the maximum amount of BRL 125 million, in

order to:

(i) strengthen the Company's capital structure; and

(ii) strengthen its liquidity levels.

Payment of the last amortization of the 1st Issuance of Debentures in the amount of BRL90 million.

Hiring of Gustavo Zeno as Mills’ new Financial Administrative and Investor Relations Director. Zeno has

experience in the Investor Relations, Corporate Finance, Structured Operations and Development of New

Business, including professional experience in Europe.


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5

Current Scenario

Source: Tendências, abril/ 2016, BNDES e www.logisticabrasil.com.br

¹ ICC civil construction index

² IACI measures the area under construction (in foundation, structure and finishing phase) of residential, commercial, tourism real estate works, and others, with national coverage.

The Program of Investment in Logistics of the Federal Government “PIL” awaits for investments of BRL198.4 billion,

being BRL69.2 billion until 2018 and the remainder as of 2019, the estimate for 2016 is: auction of 6 highways; 26

public ports terminals; 4 airportos (Porto Alegre, Florianópolis, Salvador and Fortaleza); and railways (route FNS Sul,

route FNS Norte and Ferrogrão)

-14.0%

-9.0%

-4.0%

1.0%

6.0%

11.0%

2010 2011 2012 2013 2014 2015 2016E 2017E

PIB Brasil ICC¹ PIB Construção civil IACI²


64.9

90.9

136.4

168.4

138.9

156

190.4 187.8

135.9

18.1

2007 2008 2009 2010 2011 2012 2013 2014 2015 1T16

Main Indicators of the Sector BNDES DisbursementsBrl billion

Brazil GDP Civil Construction GDP1Q16


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6

Main Init iatives


ROIC LTM

-3.8%

Adj us ted ¹-1.0%

NOPAT

(55.2)(15.3)

Net Income

542.3

COGS

(199.2)

SG&A²

(257.4)(200.3)

depreciation:(166.8)

IT (rate of 30%) 24.3

7.2

Rohr Dividends 1.5

Invested Capital

1,439.5

Net Rental PP&E

972.9

Others

466.6

ROIC = NOPLAT/Average Invested Capital¹ Excluding impairment (BRL57.1 million) from NOPAT ² including PDD in the amount of BRL 26.3 million

Efforts to increase presence in the

international market

Sales of assets aiming at to real estate

market

Strengthen relationships with mid-sized

construction companies

Focus on non-construction markets for the

Rental unit

Continuous search for operational efficiency

and cost reduction

Closing of five branches of the Construction

unit in progress

InitiativesROIC Decomposition

In BRL million


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47.1 47.1 47.1 54.4

48.5 46.4 46.4 37.7

21.07.4 7.4 9.1

57.1116.5

157.9

100.8 101.1

1T15 4T15 4T15* 1T16

CPV SG&A PDD Impairment

-14.5

-57.9

-20.2-17.8

-70.0

-60.0

-50.0

-40.0

-30.0

-20.0

-10.0

0.0

10.0

1T15 4T15 4T15* 1T16

7

Consolidated - Financial Performance


In BRL million

Net Income Costs and Expenses

Ebitda and Ebitda Margin Net profit

163.9

127.9 130.1

-20.6%

1.7%

-20.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

1T15 4T15 1T16

47.3

-30.1

27.029.0

-23.5%

21.1%22.3%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

-50.0

-30.0

-10.0

10.0

30.0

50.0

1T15 4T15 4T15* 1T16

Ebitda Margem Ebitda

* Desconsidering Impairment of BRL 57.1 million

adjusted

adjusted

adjusted

Ebitda Ebitda Margin

1Q15 4Q15 1Q16

1Q15 4Q15* 1Q164Q15

1Q15 4Q15 1Q164Q15*

1Q15 4Q15 4Q15* 1Q16

COGS ADD


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Consolidated - EBITDA Amounted BRL 29.0 mill ion


In BRL million

(30.1)

27.12.2 7.3

8.7 1.7 29.0

Ebitda 4T15 Ebitda ex. Impairment Receita Líquida CPV G&A ex-PDD PDD Ebitda 1T16

Costs and Expenses

Ebitda Evolution

Ebitda 4Q15 Ebitda ex. Impairment Net Revenue Ebitda 1Q16COGS G&A ex Impairment ADD


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Consolidated - Free Cash Flow


In BRL million

¹Before interests paid referring to debentures and investment in rental.² Before interests paid referring to debentures

Cash Flow

158.9

198.9

295.5

383.7 372.7

288.3

80.8

-208.9

-356.5

-31.2

-154.3

116.1

281.9

79.5

2010 2011 2012 2013 2014 2015 2016

Fluxo de caixa operacional ajustado¹ Fluxo de caixa livre ajustado ²

Even on an adverse scenario, the Company remains generating free cash flow

Adjusted Operating Cash Flow¹ Adjusted Free Cash Flow2


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Consolidated - Financial Performance


In BRL million

Due to the reduction of the investments and assets sales, the average capital invested tends to fall, since it illustrates the

average in the period.

ROIC (LTM)

Invested Capital: is defined as the sum of the equity plus third parties‘ capital (including all onerous, bank and nonbank debts) being both the average amounts in the last thirteen months.

1,144.0 1,109.91,066.5

1,020.7972.9

517.8 507.9496.1

485.1466.6

1,661.8

1,617.7

1,562.5 1,505.81,439.5

4.0%

2.0%

0.8%

-2.9%

-3.8%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

-100.0

100.0

300.0

500.0

700.0

900.0

1,100.0

1,300.0

1,500.0

1,700.0

1,900.0

1T15 2T15 3T15 4T15 1T16

Capital investido médio - imobilizado de locação líquido Capital investido médio - outros ROIC Average invested Capital – Net Rental PP&E Average Invested Capital - others

1Q15 2Q15 3Q15 4Q15 1Q16


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Consolidated – Net Income Breakdown


In BRL million

Per Business Unit Per type

1Q16/1Q15 1Q16/4Q15

Rental -32.3% -18.5%

Sales 75.2% 132.1%

Technical support and others -33.3% 106.5%

Total -20.6% 1.7%

1Q16/1Q15 1Q16/4Q15

Rental -4.0% 8.6%

Infrastructure -37.8% 0.6%

Buildings -34.0% -15.5%

Total -20.6% 1.7%

79.670.3 76.4

51.1

31.631.8

33.2

25.921.9

163.9

127.9 130.1

1T15 4T15 1T16

Rental Infraestrutura Edif icações

132.4

110.0

89.6

6.7

8.6

29.2

11.3

4.9 2.1

13.6

4.4 9.0

163.9

127.9 130.1

1T15 4T15 1T16

Locação Vendas de Seminovos Vendas de Novos Assistência Técnica e OutrasRental Heavy

ConstructionReal Estate Rental Semi new equipment

sales

New equipment

Sales

Technical support and others

1Q15 4Q15 1Q16 1Q15 4Q15 1Q16


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Consolidated – Utilization Rate and Net Revenue


In BRL million

(*) Non segmentation of the utilization fee in the business unit Construction because the inventory of the equipment used in Buildings and Infrastructure are sharedVolume: variation of the income due to the volume leased in tons (Construction) and quantity of machines(Rental)

Price and Mix: variation of the income revenue due to the variation of rental prices and products mix.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1T10 3T10 1T11 3T11 1T12 3T12 1T13 3T13 1T14 3T14 1T15 3T15 1T16

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1T10 3T10 1T11 3T11 1T12 3T12 1T13 3T13 1T14 3T14 1T15 3T15 1T16

Average LTM 1Q16 = 6.,6%

50.3 4.26.3

39.7

4T15 Volume Preço e Mix 1T16

59.7 5.8

4.049.9

4T15 Volume Preço e Mix 1T16

Average LTM 1Q16 = 47.9%

Rental

Construction

Net RevenuePhysical Utilization Rate

1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15

1Q16

1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15 3Q15

1Q16

Volume Price and Mix4Q15

4Q15

1Q16

Volume Price and Mix 1Q16


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CPV is composed by the new and semi-new equipment sales cost, assets write-off and performance of works and

deposit

13

Consolidated - CPV


In BRL million

Sales cost and assets write off Execution cost and deposit

The new equipment sales cost is tied to the income with new equipment sales.

The new equipment sales cost is tied to the income with semi-new equipment sales, and it is equivalent to the write off of these PP&E (residual cost).

Assets write off cost is tied to the income with Indemnities, this value is the cost to write off the indemnified asses in our PP&E.

3.05.6

19.5

7.9 3.1

1.5

4.7

1.9

3.1

15.6

10.7

24.152.4%

66.6%61.8%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

1T15 4T15 1T16

Baixa de Ativos

Custos de vendas de novos

Custos de vendas de seminovos

Custo de vendas + Baixa de Ativos / Receita Liquida de vendas + indenizações

17.1 19.7 15.6

9.39.7

9.2

2.3

2.4

2.3

2.7

4.6

3.2

31.5

36.4

30.3

19.2%

28.5%23.3%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%0.0%

10.0%

20.0%

30.0%

40.0%

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

1T15 4T15 1T16

Outros

Frete

Material construção/manutenção e reparo

Pessoal

% Receita Líquida Total

1Q15 4Q15 1Q16 1Q15 4Q15 1Q16

Semi-new equipment sales cost

New equipment sales cost

Assets Write-off

Sales cost + assets write off / Net sales evenue + indemnities

Others

Freight

Costs of job execution/Equipment storage

Personnel

% Net Revenue


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14

Consolidated - SG&A


In BRL million

1Q16/1Q15 1Q16/4Q15

Commercial, Operational and Administrative -36.1% -22.5%

General Services -13.6% -18.9%

Other Expenses 76.8% -3.4%

SG&A total, ex-depreciation and PDD -22.2% -63.6%

1 Including the expenses with the Industrial Services business unit sold in 2013

SG&A¹ ex. impairment , presented reduction of 18.7% comparing to the previous quarter

34.4 28.4 22.0

10.010.7

8.7

4.07.3

7.0

57.1

48.5

103.5

37.7

-10.0

10.0

30.0

50.0

70.0

90.0

110.0

1T15 4T15 1T16

Comercial, Operacional e Administrat ivo Serviços Gerais Outras Despesas Impairment

1Q15 4Q15 1Q16

Commercial, Operational and

Administrative

General Services Other Expenses Impairment


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Heavy

Construction

Real Estate

Construction

B i U it C t ti


16/26

51.1

31.6 31.8

33.2

25.9 21.9

84.3

57.553.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

1T15 4T15 1T16Infraestrutura Edificações

-36,6%

-6,7%

16

Construct ion - Financial Performance


In BRL million

Net Income Costs and Expenses

Ebitda and Ebitda Margin ROIC (LTM)

13.0

-2.1

4.1

15.4%

-3.7%

7.7%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

-4.0

-2.0

0.0

2.0

4.0

6.08.0

10.0

12.0

14.0

1T15 4T15 1T16


26.5 25.3 21.9

32.027.8

21.6

12.8

6.6

6.1

30.971.3

90.6

49.6

1T15 4T15 1T16CPV SG&A PDD Impairment

555.8 502.4 481.3

245.7214.2 200.4

1.2%

-8.6% -9.8%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

1T15 4T15 1T16

Capital investido médio - outros

Capital investido médio - imobilizado de locação líquido

ROIC

Business Unit - Construction

1Q15 4Q15 1Q16 1Q15 4Q15 1Q16

1Q15 1Q16 1Q164Q151Q154Q15

Heavy Construction Real Estate


Average invested Capital – Net Rental PP&E

Average Invested Capital - others

ROIC

COGS ADD

B siness Unit Constr ction


17/26

17

Construct ion - main Works with Mills Participation


In BRL million

States with Mills presence

North and Northeast

Corredor expresso Aguanambi [expressroadway]

Usina hidrelétrica São Manoel

[hydroelectric plant]

Ponte Tauape [bridge]

Vale’s S11D Project

Transposition of São Francisco River

CSN Plant

Salvador BA093 and Metropolitan

Southeast

Nova Tamoios Highway

Transbrasil

Sorocaba and São Josédos Campos Hospital

Galvani Mining Company

Cofins Airport Duplication

Sanitation project

Metropolitan Line 5 and

Line 6

Monorail Linha Ouro

Imigrantes Viaduct

Beltway

Central-west and South

Papuda Penitenciary

Guaíba Bridge - RS


Business Unit Construction


18/26

Railways12.7%

Airports and ports

4.6%

Highways21,%

Urban Mobility28.8%

Sanitation5.1%

Industrial16.2%

Power 4.6% Others

7.0%

Public39.7%

Private47.3%

PPP13.0%

18

Heavy Construction - Rental Revenue Breakdown


In BRL million

Per Source of ResourcesBRL 23.9 million

Per sector BRL 23.9 million

Public: resources from the government

Private: resources from the private sector.

PPP (public –private partnership) : resources from the government and the private sector


Business Unit Construction


19/26

Residential57%

Commercial25%

Others17%

19

Real Estate - Rental Revenue Breakdown


In BRL million

Rental Revenue BreakdownBRL 15.8 million

Public: resources from the government

Private: resources from the private sector.

PPP (public –private partnership) : resources from the government and the private sector



20/26

Rental


21/26

79.6

70.376.4

-4.0%

8.6%

-40.0%

-20.0%

0.0%

20.0%

40.0%

-10.0

10.0

30.0

50.0

70.0

90.0

1T15 4T15 1T16

21

Rental - Financial Performance


In BRL million

Net Income

20.6 21.832.5

16.2 15.4

14.18.3 0.8

3.045.1

38.0

49.6

1T15 4T15 1T16

CPV SG&A PDD

34.432.3

26.8

43.3%

45.9%

35.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0.0

5.0

10.0

15.0

20.025.0

30.0

35.0

40.0

1T15 4T15 1T16


588.2518.3 491.6

124.2136.4

140.8

8.8%5.5% 5.1%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

0.0

100.0

200.0

300.0

400.0500.0

600.0

700.0

800.0

900.0

1,000.0

1T15 4T15 1T16

Capital investido médio - outros

Capital investido médio - imobilizado de locação líquido

ROIC

1Q15 4Q15 1Q16

1Q15 4Q15 1Q16

1Q15 4Q15 1Q16

1Q15 4Q15 1Q16


Average invested Capital – Net Rental PP&E

Average Invested Capital - others

ROIC

Costs and Expenses

ROIC (LTM)Ebitda and Ebitda Margin

COGS ADD


22/26

22

Rental - Net Revenu Breakdown


In BRL million

Net Rental Revenue per UseBRL 49.9 million

Net Revenue per Type of ServiceBRL 76.4 million

Construction48%

Non-Construction

37%

Spot15%

Locação65%

used equip.sales30%

Sales2%

Others2%

TechnicalSupoprt

1%


23/26

Consolidated - Indebtedness


24/26

424

173 150106 106

39

Cash position 2016 2017 2018 2019 2020+

574.356.8 631.1 423.5

207.5

Principal Interests Gross Debt Cash Net Debt

24

Consolidated - Indebtedness


In BRL million

Principal Amortization Schedule

23.4%

74.3%

2.3%

IPCA CDI TJLP

31.2%

68.8%

Curto Prazo Longo Prazo

BRL 90 million already

paid in April/16

We do not have foreign currency exposure.

Indebtedness on 03/31/2016

17.1% 31.0% 21.9% 21.9% 8.0%

Participation of the balance due (principal) excluding payment made in April/16

Gross Debt Profile


25/26

*Excluding extraordinary items from LTM EBITDA

4.5

3.9

3.5

3.0 2.8

Covenants 2,0

1T15 2T15 3T15 4T15 1T16

1.6

1.81.9

2.1

1.3

Covenants 3,0

1T15 2T15 3T15 4T15 1T16

Debentures Covenants:

(1) EBITDA*/financial income >= 2.0; and

(2) Net Debt/EBITDA*


26/26

Mills - Relation with Investors

Phone: +55 (21) 3924-8768

E-mail: [email protected]

www.mills.com.br/ri

1q16 presentation of results

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