Professional Documents
Culture Documents
November 8, 2016
Disclaimer
This presentation may contain statements that present expectations of the Management of Mills Estruturas e Servios 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 historical
facts, 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 to
change 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 Comisso de Valores Mobilirios CVM.
-36.9%
136.5
-26.3%
105.4
101.7
86.1
68.7
54.4
26.5
43.4
17.9
8.0
6.3
44.5
43.2
15.7
27.0
49.2
42.2
36.0
3Q15
2Q16
3Q16
3Q15
2Q16
3Q16
Real Estate
Rental
COGS
34.8
3Q15
13.7
2Q16
3Q16
-20.9
-22.2
11.2
80.0%
-17.2
25.5%
50.0
27.0%
60.0%
13.0%
40.0%
13.0%
10.8%
40.0
18.6%
30.0
20.0%
0.0%
-20.0%
35.0
18.5
10.0
-0.2
3Q15
-4.8
2Q16
-40.0%
8.8
2.5
-60.0%
3Q16
-10.0
-80.0%
-29.0%
Excluding result/provision of sales of semi
new equipment and non-recurring items.
Ebitda Margin
ADD
100.0%
70.0
0.0
SG&A
-18.0%
-67.8%
20.0
2.8
36.1
33.1
60.0
74.9
91.7
41.2
Heavy Construction
80.0
-18.3%
-6.0%
Consolidated Highlights
In R$ million
-18,2%
105.4
Rental
Construction
86.1
10.3
3.2
47.2
7.0
11.8
1.4
116.0
Rental
85.0
73.9
2Q16
3Q16
2.6
2Q16
Rented
Volume
0.9
34.3
Price and
Mix
3Q16
4.7
39.6
4.8
2Q16
Rented
Volume
Price and
Mix
3Q16
Others
ROIC (LTM)
25
21.0%
1,600.0
60.7%
63.3%
58.1%
20
1,400.0
13.2%
15.6%
57.0%
52.7%
50.1%
43.7%
42.7%
40.7%
516.6
242.5
1,000.0
466.5
15
449.6
229.0
800.0
46.1%
14.8%
485.1
1,200.0
52.5%
2.9
6.1
5.7
2.8
3Q15
37.8
600.0
400.0
200.0
394.5
10
6.6%
200.9
116.1
423.9
896.6
1045.1
1160.5
5.0
-0.3%
1020.7
671.8
-1.0%
924.3 -2.9%
972.9
878.8
-4.2%-5.
3Q15
Construction
2Q16
LTM Construction
Rental
-10
2010
3Q16
2011
2012
2013
2014
2015
1Q16
2Q16
3Q16
LTM Rental
ROIC
Excluding impairment of R$57,1 million in 4Q15 of NOPAT. If impairment was considered ROIC LTM in 3Q16 would be 7.2%.
Industrial Services business unit is not considered from 2013 onwards
0.0
Ebitda Evolution
20. 0
4.8
18.5
16.9
18. 0
16. 0
13.7
14. 0
2.5
12. 0
3.5
10. 0
11.2
8.8
8.0
6.0
3.6
0.4
4.0
0.4
2.0
Ebitda 2Q16
Result/provision of
Ebitda 2Q16 ex. Rental Net Revenue Result of sales of
sales of semi new result/provision of
and Others
new eqipment
equipment and non- sales of semi new
recurring items
equipment and nonrecurring items
COGS excluding
costs of sales
SG&A ex-ADD,
provision of sales
and non-recurring
items
ADD
Ebitda 3Q16
7.0%
5.9%
5.30%
6.0%
5.8%
3.2%
1.70%
2.10%
2.0%
2010-2014 Average:
2.3%
1.2%
0.30%
2010
2011
2012
2013
2014
1Q15
2Q15
3Q15
4Q15
1Q16
2Q16
3Q16
Delinquency Evolution
65.0%
68.2%
72.9%
72.0%
60.1%
62.3%
1Q16
2Q16
75.2%
60.7%
70.0%
56.9%
48.6%
2Q15
51.8%
3Q15
4Q15
3Q16
7
1.7
0.9
0.7
Non-Cash
Cash
11.3
46.2
Interest paid
1.2
2.6
Other liabilities
0.8
4.9
Trade payables
0.2
Other assets
11.2
Trade receivables
2.8
5.7
11.2
Ebitda CVM
26.1
Even on an adverse macroeconomic scenario, the Company remains generating free cash flow.
Cash Flow
383.7
372.7
295.5
288.3 281.9
198.9
158.9
116.1
80.8
2010
2011
2012
2013
2014
2015
79.5
1Q16
50.1 48.6
2Q16
46.4
67.1
3Q16
-31.2
-154.3
-208.9
Adjusted Operating Cash Flow
-356.5
Before interests paid referring to debentures, finame and investment in equipment rental.
Before interests paid referring to debentures and finame.
Includes R$6.2 million of revenue from sales of new and semi new equipment in 3Q16, R$ 8.5 million in 2Q16 and R$ 31.4 million in 1Q16. In 2015 the revenue of sales was R$ 53.9 million.
Construction
Heavy
Construction
Real Estate
-16.2%
-16.1%
67.7
51.0
59.0
42.8
51.0
42.6
2.5
26.5
3.6
17.9
41.2
33.1
15.7
29.4
27.0
27.1
25.3
23.1
22.1
-1.5
3Q15
2Q16
3Q15
3Q16
Heavy Construction
COGS
Real Estate
8.7
10.0
8.0
6.0
4.0
57.5%
900.0
800.0
700.0
600.0
0.6
500.0
400.0
0.1
300.0
200.0
100.0
-0.4
-
0.1
0.0
1.0
7.6
11.5%
0.0%
12.8%
-2.4%
0.3%
-3.9%
2.0
1.6
1.1
0.0
3Q15
2Q16
-1.1
3Q16
-1.5
23.9%
88.9
197.0
2010
-0.9
-2.0
SG&A
3Q16
ADD
ROIC (LTM)
2Q16
21.0
30.0%
25.0%
20.0%
247.9
13.3%
191.8
16.3%
214.2
15.0%
200.3
191.1
126.3
180.4
10.0%
97.3
5.0%
4.4%
0.4%
0.0%
569.7
555.5
502.4
483.9
481.3
459.7
437.2
-5.0%
358.4
-6.7%
-5.5%
-8.2%
-9.5%
-10.0%
-15.0%
2011
2012
2013
2014
2015
1Q16
2Q16
3Q16
ROIC
10
Excluding impairment of R$ 30.9 million in 4Q15 of NOPAT. If impairment was considered ROIC LTM in 3Q16 would be 13.0%.
PPP
15.6%
Private
38.2%
Subway/Train/BRT
27.4%
Industrial
10.6%
Others
15.4%
Public
46.3%
Highways
18.3%
Railways
5.9%
Airports
11.1%
Others
17.4%
Residential
48.5%
Commercial
34.2%
11
VLT Fortaleza - CE
Canal Alagoano - AL
Rail Extension PA
Shopping Olinda - PE
Southeast
Confins Airport Expansion
MG
Consortium So Loureno
SP
Duplication BR-381 MG
Subway Line 5 SP
Duplication BR-101 RJ
Contagem Viaduct - MG
12
Rental
-20.2%
68.7
Nonconstruction
34.3%
43.4
54.4
2.1
5.4
-22.4%
Construction
51.6%
-16.4%
42.4
39.3
5.4
2.7
14.9
16.5
32.9
1.9
1.4
2.7
2.5
1.7
0.8
1.2
59.8
47.2
4.3
39.6
13.6
3Q15
Rental
2Q16
22.1
20.1
15.0
3Q15
2Q16
3Q16
3Q16
Others
COGS
ADD
ROIC (LTM)
SG&A
-121.5%
800.0
700.0
26.4
15.1
10.5
25.0%
19.2%
18.2%
16.5%
18.3%
113.9
50.0
40.0
1.0
33.1%
38.2%
25.8%
20.0%
136.4
600.0
50.7
500.0
140.8
142.3
11.5%
0.5
138.7
15.0%
400.0
30.0
38.4%
27.7%
24.2%
40.6
0.0
300.0
29.4
20.0
10.0
24.2
-0.5
17.1
0.0
-10.0
14
11.0
489.6
590.8
200.0
100.0
-1.0
13.9
120.2
248.5
2010
2011
345.6
10.0%
518.3
491.6
464.6
441.6
5.5%
5.1%
2.8%
1.2%
5.0%
3Q15
2Q16
Result of sales of semi new equipment
Ebitda ex. sales of semi new equipment
Ebitda margin ex. sales of semi new equipment
Ebitda Margin
3Q16
-1.5
0.0%
2012
2013
2014
2015
1Q16
2Q16
3Q16
Consolidated - Indebtedness
Consolidated - Indebtedness
In R$ million
The weighted average maturity of our debt is 2.8 years at a cost of CDI+0.17%.
Gross Debt Profile
35.9%
150.3
106.2
106.2
64.1%
38.9
0.8
Caixa
Short Term
Long Term
2019
2020+
Indebtedness on 9/30/2016
402.2
-2.8%
2016
2017
2018
Finame
3rd Emission of Debentures - 108,8% CDI
2nd Emission of Debentures - IPCA +5,5%
2nd Emission of Debentures - CDI + 0,88%
50.6
452.8
322.6
-32.8%
-64.4%
130.3
TJLP
16
CDI
IPCA
Principal
Interests
Gross Debt
Cash
Net Debt
3.0
3.5
3.0
2.8
2.5
2.5
2.0
2.1
1.9
1.3
3Q15
4Q15
1Q16
2Q16
3Q16
3Q15
4Q15
1Q16
1.5
1.4
2Q16
3Q16
Debentures Covenants:
(1)
(2)
17
Excluding extraordinary items from LTM EBITDA. Are considered extraordinary items:
R$10.4 million related to restructuring costs.
R$5.6 million related to Industrial Services business unit sold in 2013.
R$57.1 million from Impairment.
Final Considerations
Financial Summary
In R$ million
2010
2011
Consolidated
Construction
Rental
354.5
259.4
95.1
462.8
287.4
175.4
Consolidated
Construction
Rental
Others
168.4
117.4
51.0
217.4
123.8
93.6
Consolidated
Construction
Rental
47.5%
45.3%
53.6%
47.0%
43.1%
53.4%
Consolidated
Construction
Rental
308.9
178.3
130.6
395.1
232.3
162.8
Construction
Rental
76.5%
77.9%
73.6%
77.8%
7.5
1.6
2012
2013
2014
2015 LTM 3Q16
Net Revenues
665.5
832.3
794.2
576.1
449.5
412.0
474.9
423.4
283.0
205.0
253.5
357.3
370.8
293.2
244.5
Ebitda
339.0
419.3
340.7
161.2
80.9
197.8
212.3
153.5
32.2
2.1
141.2
207.0
196.7
132.6
84.6
-9.5
-3.7
-5.9
Ebitda Margin
50.9% 50.4% 42.9% 28.0%
18.0%
48.0% 44.7% 36.3% 11.4%
1.0%
55.7% 57.9% 53.0% 45.2%
34.6%
Rental Equipment CAPEX
271.2
463.6
166.5
11.6
2.4
110.3
196.4
62.4
11.6
2.3
160.9
267.2
104.2
0.0
0.1
Utilization rate (volume)
75.4% 72.3% 63.0% 49.9%
43.7%
72.5% 73.0% 63.2% 61.9%
60.7%
Covenants
9.1
9.0
5.4
3.0
2.5
1.2
1.4
1.5
2.1
1.4
% Part
100.0%
45.6%
54.4%
100.0%
2.6%
104.6%
-7.2%
100.0%
97.0%
3.0%
-
19