3q12 presentation of results

7/30/2019 3Q12 Presentation of Results

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Presentation of 3Q12 Results


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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).

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3Q12 Highlights

41 ROIC: Return on Invested Capital

3Q12*/3Q11* +26.9% +50.9% +646 bps

148.9154.2

145.0

164.0175.1 175.1

193.5199.1

211.1222.2 222.2

55.945.4

52.858.0

50.859.9

76.486.2 84.4

96.190.4

28.5 30.122.2 22.6 17.8

23.829.5 32.7

39.2 38.0 34.7

37.6%

29.4%

36.4%35.4%

29.0% 34.2%

39.5%

43.3%

40.0%

43.2%

40.7%

20.3%18.8%

13.8%12.7%

8.6%11.1%

14.2%

15.1% 13.6%15.8%

14.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

-

50.0

100.0

150.0

200.0

250.0

3Q10 4Q10 1Q11 2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 3Q12*

Net revenues EBITDA Net Income EBITDA Margin ROIC

+336 bps+45.9%

3Q12*/2Q12 +5.3% +7.1% + 69 bps + 88 bps-11.4%

In R$ million

* 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 ofR$ 6.8 million in 3Q12

New

Records


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Net revenues reached R$ 222.2 million in 3Q12

5

Rental70%

TechnicalSupportServices

19%

Sales8%

Others3%

Per type of service

HeavyConstruction

21%

Jahu -Residential

and

Commercial27%Industrial

Services22%

Rental30%

Per business segment


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Heavy Construction

6

+37.1% +58.2% +668 bps + 628 bps

+8.5% +7.7% -37 bps +49 bps

In R$ million

3Q12*/3Q11*

3Q12*/2Q12

42.7

34.231.8

30.6

33.2 33.2

36.1

39.3

41.9

45.5 45.5

22.3

13.3 15.614.1

8.6

14.4

19.5 18.921.2

24.122.8

52.2%

38.8%

48.9%46.2%

26.0%

43.5%

54.0%

48.0%

50.6%52.9%

50.2%

25.5%

18.8%

14.4%12.1%

4.5%

12.0%

17.5% 16.6%17.8%

19.7%18.3%

0%

10%

20%

30%

40%

50%

60%

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

3Q10 4Q10 1Q11 2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 3Q12*

Net Revenue EBITDA EBITDA Margin ROIC


* 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


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-

20

40

60

80

100

120

140

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

7

Paranaensesarena Hydroelectric powerplant Colder BRT Transcarioca

Subway line 4 RJ

Hydroelectric powerplant JirauNorte-SulrailwayTransnordestinarailway Abreu e Limarefinery Comperj refiney Subway line 2 SP

SudestePort Verdostadium Pernambuco arenaVale projects

MaracanstadiumMan GarrinchastadiumGrmioarenaFonte Novastadium

BR-448 BRT TransoesteJacu Pssegohighway

Guarulhos AirportAuportAratuport Beltway in Fortaleza

BRT Belm

New phases ofBelo Monteand Teles Pireshydroeletric powerplants New stretches of subway lines 2 and 5 New streches of Monorail line Gold

New phases of the Comperj refinery New phase of the transposition ofSo Franciscoriver

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*


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The construction work related to World Cup and Olympic events represented 21%

of Mills 3Q12 revenue

8Source: Mills

3Q12 RevenueR$ 45.5 million

World Cup and

Olympics21%

Industry26%

Infrastructure41%

Others12%


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Sport events: the cherry of the cake

9

= = =12 stadiums(R$ 6.7 billion)

5 highways10.4 hydroelectric

powerplant31 railroad2

1 Considering the average investment of the Bus Rapid Transit (BRT): Transcarioca(R$ 1.3 billion), Transolmpica(R$ 2.2 billion) and Transoeste(R$ 0.7 billion)2

Investiment in the Norte-Sulrailway (R$ 6.7 billon)3 Investment in the Santo Antnio hydroelectric powerplant (R$ 16.0 billion)

Source: Mills


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Application of new technologies: Mills Modular System

10

Subway line 5So Paulo, SP


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Listed real estate companies contributed 17% of 3Q12 equipment rental revenues

In R$ million

19%12%

17%

32% 45% 36%

32%

34%34%

9%

3%2%

8% 6% 11%

45.3 48.5 49.2

1Q12 2Q12 3Q12

Others

Industrial

Commercial

Residential - others

Residential - listed companies

Residential51 %

Residential57 %

Residential53 %


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13

281294 303

317 326338

351365

377396

413434

472

508

0

100

200

300

400

500

600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Shopping Centers

Current deficit: 62,400 units

Investments of R$ 40 billion expected in the next 10

years

Number of new rooms should increase to 36,600 in

2020, almost 5x higher than the 7,700 in 2010

Projects of new hotels:

2011: 39

2013: ~78

2020: 180

Hotel Sector

Source: Abrasce (May 2012), Ernst & Young, HotelInvest consulting

Promising commercial market, driven by shopping centers and hotels


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Oil and Gas31%

Petrochemical27%

Pulp and Paper7%

Steel and Mining6%

Others29%

Maintenance62%

New plants38%

Maintenance contracts represented 62% of net revenue

15

Per type Per industry

3Q12 RevenueR$ 48.8 million


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25.8

30.833.7

41.2

45.6 45.6

54.9 56.5 55.4

67.4

14.6 14.7

18.922.3 21.7

25.0

30.7

34.931.4

38.0

56.6%

47.6%

56.0%54.1%

47.6%

54.8% 56.0%

61.8%

56.6%

56.5%

17.3%18.7%

17.3%17.1%

12.9%16.0%

18.6%20.3%

16.3% 16.3%

0%

10%

20%

30%

40%

50%

60%

70%

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

3Q10 4Q10 1Q11 2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12

Net Revenue EBITDA EBITDA Margin ROIC

Rental

16

+47.7% +52.2% +167 bps + 39 bps

+ 21.5% +21.3% - 13 bps 0 bps

In R$ million

3Q12/3Q11*

3Q12/2Q12

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



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16.522.3

27.2

35.0 35.9 35.041.4

17.2

18.9

18.4

19.8 20.6 20.4

26.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

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

EstablishedBranches

New Branches

The new branches represented 61% of 3Q12 revenue

17

2

1

Evolution of revenue (in R$ million)

33.7

45.6

54.956.5 55.4

67.4

41.2

Change3Q12/3Q11

(%)

41.3%

52.2%

2 Branches opened after January 2010

1Branches opened prior to 2010


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Agenda

3Q12 Results

Growth plan

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19

We invested R$ 221.3 million in organic growth in 9M12, equivalent to 86% of the 2012

revised budget

85%

115%

64%

79%

In R$ million

Capex

11

44 5223

51 44

0

4 7

40

107

136

5

15

17

0

50

100

150

200

250

300

3Q12 9M12 Revised 2012 Budget

Rental

Industrial Services

Jahu - Residential e Commercial

Heavy Construction

256

221

79

Realized /2012 Revised Budget

(%)


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Presentation of 3Q12 Results

Mills Investor Relations

Tel.: +55 (21) 2123-3700

E-mail: [email protected]

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3q12 presentation of results

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