Ramon Vazquez 1Q14 Results 2 Mills - Financial Performance Reclassified excluding the Industrial Services business unit, for comparison. 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.
1Q14/1Q13 1Q14/4Q13 LMT1Q14/2013 CAGR 10-13 Net Revenue +10% -1% +2% +33% EBITDA +12% +5% +3% +34% Net Earnings -14% -26% -3% +19% Presentation of 1Q14 Results 05/07/2014 In R$ millions 187,5 188,4 211,8 222,0 210,1 207,8 83,3 95,7 98,9 106,1 102,4 107,5 41,7 39,3 48,1 39,6 45,6 33,9 44,4% 50,8% 46,7% 47,8% 48,7% 51,7% 14,5% 14,9% 14,2% 13,9% 13,4% 11,5% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Net Revenue EBITDA Net Earnings EBITDA Margin ROIC 354,5 462,8 665,5 832,3 851,7 168,4 217,4 339,0 403,1 414,9 103,3 92,2 151,5 172,6 167,2 47,5% 47,0% 50,9% 48,4% 48,7% 21,0% 12,3% 14,7% 14,1% 13,9% 2010 2011 2012 2013 LTM1Q14 Rental 85% Technical support services 1% Sales 8% Others 6% By service category Heavy Construction 29% Real Estate 24% Rental 47% By business unit 3 Presentation of 1Q14 Results 05/07/2014 Net revenues totaled R$ 207.8 million in 1Q14 4 We launched an expense reduction program to minimize the effect of higher G&A allocated in the remaining business units after the sale of Industrial Services 13,9 16,7 12,6 16,5 15,9 21,9 22,3 22,9 20,8 22,0 15,5 16,0 18,3 19,5 19,6 8,8 8,9 12,5 9,6 1,1 1Q13 2Q13 3Q13 4Q13 1Q14 Industrial Services Rental Real Estate Heavy Construction -12% +3% 63.8 66.4 66.4 58.5 51.3 54.9 53.9 56.8 Excluding capital gain from the sale of the Industrial Services business unit
60.1 Presentation of 1Q14 Results 05/07/2014 In R$ million 1Q14/1Q13 1Q14/4Q13 LTM1Q14/2013 CAGR 10-13 Net Revenue +8% -13% +2% +12% EBITDA +5% -12% +1% +14% Heavy Construction Financial Performance 5 * 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 theoretical 30% income tax rate. Presentation of 1Q14 Results 05/07/2014 47,3 47,5 55,1 55,7 55,7 58,6 51,0 20,2 24,3 25,1 29,4 28,2 29,3 25,6 42,7% 51,3% 45,5% 52,8% 50,6% 49,9% 50,2% 14,8% 18,6% 17,8% 20,9% 19,7% 19,1% 14,0% 4Q12 1Q13 2Q13 3Q13 3Q13* 4Q13 1Q14 Net Revenue EBITDA EBITDA Margin ROIC 154,3 131,6 174,1 217,0 220,5 73,6 57,8 84,3 108,1 109,4 47,7% 43,9% 48,5% 49,8% 49,6% 24,1% 12,1% 17,2% 19,2% 17,9% 2010 2011 2012 2013 LTM1Q14 Transposition of the So Francisco river* Comperj refinery* Subway line 5 SP* Raposo Tavares highway Belo Monte hydroelectric power plant* Norte-Sul railroad* Jurong shipyard Olympic park Silver monorail line- SP* Gold monorail line- SP* Pulp mill expansion- RS* E v o l u t i o n
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Length of time of Mills participation in the construction work average cycle is 24 months Belo Monte hydroelectric power plant Vales S11D project Norte-Sul railroad Oeste-Leste railroad North beltway Subway lines 4 e 5 SP Companhia Siderrgica do Pecm steel mill Paraguau shipyard Salvador subway Goinia airport Confins airport Pulp mill expansion- RS Colder and Teles Pires hydroelectric power plants Comperj refinery Transposition of the So Francisco river Cais das Artes Vale projects East beltway- SP Gold monorail line- SP Subway line 4 RJ BRT Transcarioca Libra terminal Cuiab light rail Jacu-Pssego highway Jirau hydroelectric power plants Abreu e Lima refinery Natal airport Fortaleza airport Viracopos and Guarulhos airport Braslia airport Confins airport Metropolitan Arch RJ Surroundings of Maracan Gerdau projects Minas-Rio pipeline New contracts* Contracts with growing volume of equipment Contracts with high volume of equipment Contracts in the demobilization process * New streches Important contracts per stage 1 in the evolution of monthly revenue from Heavy Construction projects 6 1 In 1Q14 Presentation of 1Q14 Results 05/07/2014 7 New products that offer gains of productivity and security Mills Light
Lifting carts
Presentation of 1Q14 Results 05/07/2014 1Q13/1Q14 1Q14/4Q13 LTM1Q14/2013 CAGR 10-13 Net Revenue -8% +10% -2% +35% EBITDA -15% +37% -5% +29% Real Estate Financial Performance
8 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 theoretical 30% income tax rate. Presentation of 1Q14 Results 05/07/2014 In R$ million 66,0 64,9 66,5 72,4 54,2 59,5 26,1 27,7 24,6 24,4 17,1 23,5 39,6% 42,8% 37,0% 33,7% 31,5% 39,4% 12,6% 12,8% 9,3% 8,2% 3,2% 6,6% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Net Revenue EBITDA EBITDA Margin ROIC 105,1 155,8 238,0 258,0 252,6 43,9 66,0 113,4 93,8 89,5 41,7% 42,4% 47,7% 36,4% 35,4% 23,5% 14,3% 15,7% 8,1% 6,7% 2010 2011 2012 2013 LTM1Q14 9 3,5 2,9 3,0 4,6 -18,6% 3,8% 55,3% -60% -40% -20% 0% 20% 40% 60% 80% 100% - 0,5 1,0 1,5 2,0 2,5 3,0 3,5 4,0 4,5 5,0 1Q11 1Q12 1Q13 1Q14 Y o Y
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1 Cyrela, Direcional, Even, Eztec, Gafisa, Helbor, MRV and Rodobens Source: Operational reports from companies and Mills Total launches 1 in R$ billion Launches were up 55.3% in the 1Q14, while sales expanded 25.7% 3,8 3,5 3,8 4,8 -7,6% 10,6% 25,7% -60% -40% -20% 0% 20% 40% 60% 80% 100% - 1,0 2,0 3,0 4,0 5,0 6,0 1Q11 1Q12 1Q13 1Q14 Y o Y
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Total sales 1 in R$ billion Presentation of 1Q14 Results 05/07/2014 1Q13/1Q14 1Q14/4Q13 LTM1Q14/2013 CAGR 10-13 Net Revenue +28% +0.1% +6% +55% EBITDA +34% +4% +7% +58% Rental Financial Performance 10 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 theoretical 30% income tax rate. Presentation of 1Q14 Results 05/07/2014 In R$ million 74,2 76,1 90,1 93,9 97,2 97,3 36,9 43,6 49,3 52,3 56,0 58,4 49,8% 57,3% 54,7% 55,7% 57,7% 60,1% 16,9% 19,1% 18,5% 18,1% 17,5% 17,1% 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Net Revenue EBITDA EBITDA Margin ROIC 95,1 175,4 253,5 357,3 378,5 51,0 93,6 141,2 201,2 216,1 53,6% 53,4% 55,7% 56,3% 57,1% 19,2% 16,5% 18,2% 18,1% 17,8% 2010 2011 2012 2013 LTM1Q14 Award - IPAF training center of the year 11 Source: Mills Presentation of 1Q14 Results 05/07/2014
IAPA Award ceremony
England April 2014 In the first quarter of this year 1,500 motorized access equipment units came onto the Brazilian market 12 Motorized access equipment fleet In thousands of units Source: Mills Presentation of 1Q14 Results 05/07/2014 +5% 8 11 16 21 30 31 0 5 10 15 20 25 30 35 2009 2010 2011 2012 2013 1Q14 Growth Plan 74 47 51 106 15 104 185 60 90 4 131 163 161 267 73 15 18 20 36 10 324 413 292 499 102 2010 2011 2012 2013 1Q14 Rental Real Estate Heavy Construction In R$ million Capex Realized 1Q14 / 2014 Capex Budget (%) 41% 18% 43%
Mills invested R$ 93 million in rental equipment in 1Q14 14 Reclassified excluding the Industrial Services business unit, for comparison. Presentation of 1Q14 Results 05/07/2014 Total 40% Rental equipment Mills - Investor Relations Tel.: +55 21 2123-3700
List of Key Financial Ratios: Formulas and Calculation Examples Defined for Different Types of Profitability Ratios and the Other Most Important Financial Ratios