Documente Academic
Documente Profesional
Documente Cultură
May 6, 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 Securities and Exchange Commission - SEC.
Our Company
Complete in engineering products and services, in Brazil 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 deliver fast, smart and reliable responses that increase the productivity of the
works and the results of our client.
Construction:
Rental:
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.
Current Scenario
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, Florianpolis, Salvador and Fortaleza); and railways (route FNS Sul,
route FNS Norte and Ferrogro)
BNDES Disbursements
Brl billion
190.4
11.0%
187.8
168.4
156
6.0%
138.9
136.4
135.9
1.0%
2010
2011
2012
2013
2014
2015
2016E
2017E
90.9
-4.0%
64.9
-9.0%
18.1
-14.0%
Brazil
GDP
PIB Brasil
ICC
Civil
Constructioncivil
GDP
PIB Construo
IACI
2007
2008
2009
2010
2011
2012
2013
2014
2015
1T16
1Q16
Main Initiatives
In BRL million
Initiatives
ROIC Decomposition
international market
COGS
(199.2)
market
NOPAT
(55.2)
(15.3)
SG&A
(257.4)
(200.3)
depreciation:
(166.8)
ROIC LTM
-3.8%
Adjusted -1.0%
Rental unit
Continuous search for operational efficiency
and cost reduction
Closing of five branches of the Construction
unit in progress
Net Income
180.0
157.9
163.9
160.0
140.0
116.5
130.1
127.9
100.8
7.4
101.1
7.4
48.5
46.4
46.4
37.7
47.1
47.1
47.1
54.4
21.0
120.0
100.0
-20.6%
80.0
57.1
9.1
60.0
1.7%
40.0
20.0
1T15
1Q15
0.0
-20.0
1Q15
1T15
4T15
4Q15
1T16
1Q16
47.3
21.1%
30.0
27.0
-10.0
-30.0
-50.0
1T15
1Q15
4Q15*
4T15*
adjusted
-30.1
1Q16
1T16
29.0
1T16
1Q16
20.0%
0.0
-10.0
10.0%
-20.0
0.0%
-30.0
1T15
1Q15
4T15
4Q15
4Q15*
4T15*
adjusted
-14.5
-20.2
1T16
1Q16
-17.8
-40.0
-10.0%
-50.0
-20.0%
-60.0
-57.9
-70.0
-23.5%
Ebitda
Ebitda
4Q15*
4T15* adjusted
PDD
Impairment
ADD
10.0
22.3%
10.0
4Q15
4T15
SG&A
Net profit
50.0
4Q15
4T15
CPV
COGS
Margem
Ebitda
Ebitda Margin
-30.0%
Ebitda Evolution
27.1
2.2
7.3
8.7
1.7
29.0
(30.1)
Ebitda 4Q15
4T15
Ebitda
Ebitdaex.
ex.Impairment
Impairment
Ebitda
Receita
Lquida
Net
Revenue
CPV
COGS
G&A
G&A
exex-PDD
Impairment
PDD
ADD
Ebitda
Ebitda 1Q16
1T16
Even on an adverse 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
2010
2011
2012
-31.2
2013
80.8
2014
2015
79.5
2016
-154.3
-208.9
-356.5
Fluxo
de caixa
operacional
ajustado
Adjusted
Operating
Cash Flow
Fluxo
de caixa
livre ajustado
Adjusted
Free Cash
Flow2
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)
1,900.0
1,700.0
1,661.8
4.0%
6.0%
1,617.7
2.0%
1,500.0
517.8
1,300.0
507.9
1,562.5
4.0%
1,505.8
1,144.0
1,109.9
900.0
2.0%
485.1
0.8%
1,100.0
1,439.5
496.1
0.0%
466.6
-2.9%
1,066.5
1,020.7
700.0
-2.0%
-3.8%
-4.0%
972.9
-6.0%
500.0
300.0
-8.0%
100.0
-10.0%
-100.0
1Q15
1T15
2T15
2Q15
Capital
- imobilizado
de PP&E
locao lquido
Averageinvestido
investedmdio
Capital
Net Rental
3T15
3Q15
4T15
4Q15
Capital
- outros
Averageinvestido
Investedmdio
Capital
- others
-12.0%
1T16
1Q16
ROIC
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.
10
Per type
163.9
13.6
33.2
11.3
6.7
130.1
127.9
21.9
25.9
127.9
4.4
4.9
8.6
130.1
9.0
2.1
51.1
29.2
31.8
31.6
132.4
110.0
79.6
1Q15
1T15
Rental
Rental
11
70.3
76.4
4Q15
4T15
1Q16
1T16
Infraestrutura
Heavy
Construction
Edificaes
Real Estate
1T15
1Q15
Locao
Rental
1Q16/1Q15
1Q16/4Q15
-4.0%
8.6%
Infrastructure
-37.8%
0.6%
Buildings
-34.0%
-15.5%
Total
-20.6%
1.7%
89.6
Vendas
deequipment
Seminovos
Semi
new
sales
4T15
4Q15
1T16
1Q16
Vendas
de Novos
New equipment
Sales
Assistncia
Tcnica
e Outras
Technical support
and
others
1Q16/1Q15
1Q16/4Q15
Rental
-32.3%
-18.5%
Sales
75.2%
132.1%
-33.3%
106.5%
Total
-20.6%
1.7%
Net Revenue
Construction
90%
80%
50.3
70%
4.2
6.3
60%
39.7
50%
Average LTM 1Q16 = 47.9%
40%
30%
20%
10%
0%
1T10 3T10
1T13
3T13
1T14
3T14
1T151Q15
3T153Q15
1T16
1Q10
3Q10 1T11
1Q11 3T11
3Q111T12
1Q123T12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q16
100%
4T15
4Q15
Volume
Volume
Preoand
e Mix
Price
Mix
1T16
1Q16
Rental
90%
59.7
80%
5.8
4.0
49.9
70%
60%
Average LTM 1Q16 = 6.,6%
50%
40%
30%
20%
10%
0%
12
1T10 3T10
3T13
1T14
3T14
1T151Q15
3T153Q15
1T16
1Q16
Price
Mix
1Q10
3Q10 1T11
1Q11 3T11
3Q111T12
1Q123T12
3Q121T13
1Q13
3Q13
1Q14
3Q14
Volume
4T15
Preoand
e Mix
1T16
4Q15
1Q16
(*) Non segmentation of the utilization fee in the business unit Construction because the inventory of the equipment used in Buildings and Infrastructure are shared
Volume: 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.
Presentation of results for 1Q16 - 06/06/2016
Consolidated - CPV
In BRL million
CPV is composed by the new and semi-new equipment sales cost, assets write-off and performance of works and
deposit
Execution cost and deposit
30.0
61.8%
52.4%
25.0
24.1
3.1
1.5
20.0
15.6
15.0
4.7
10.0
10.7
1.9
7.9
19.5
3.1
5.0
3.0
0.0
1T15
1Q15
5.6
50.0
70.0%
45.0
60.0%
40.0
50.0%
35.0
40.0%
30.0
25.0
30.0%
20.0
20.0%
15.0
10.0%
10.0
0.0%
5.0
40.0%
28.5%
23.3%
19.2%
36.4
4.6
2.4
31.5
2.7
2.3
9.7
9.3
1T16
1Q16
Baixa de Ativos
Semi-new
equipment sales cost
Custos
de vendas
de novos
New
equipment
sales
cost
Custos Write-off
de vendas de seminovos
Assets
Custo cost
de vendas
+ Baixa
/ Receita
Liquida
de vendas + indenizaes
Sales
+ assets
write de
off Ativos
/ Net sales
evenue
+ indemnities
30.3
10.0%
3.2
2.3
0.0%
9.2
19.7
17.1
-30.0%
15.6
-40.0%
-50.0%
1T15
1Q15
4T15
4Q15
1T16
1Q16
Others
Outros
Frete
Freight
Material
construo/manuteno
e reparo
Costs
of job
execution/Equipment storage
% Net
Receita
Lquida Total
%
Revenue
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.
-10.0%
-20.0%
Personnel
Pessoal
13
20.0%
-10.0%
0.0
4T15
4Q15
30.0%
Consolidated - SG&A
In BRL million
SG&A ex. impairment , presented reduction of 18.7% comparing to the previous quarter
103.5
110.0
90.0
57.1
70.0
50.0
48.5
4.0
10.0
7.3
10.7
37.7
34.4
28.4
22.0
1T15
1Q15
4T15
4Q15
1T16
1Q16
30.0
10.0
-10.0
Comercial, Operacional
Administrativo
Commercial,
Operationaleand
Administrative
7.0
8.7
Servios
Gerais
General Services
Outras
Despesas
Other Expenses
1Q16/1Q15
1Q16/4Q15
-36.1%
-22.5%
General Services
-13.6%
-18.9%
Other Expenses
76.8%
-3.4%
-22.2%
-63.6%
14
Impairment
Including the expenses with the Industrial Services business unit sold in 2013
Construction
Heavy
Construction
Real Estate
Net Income
84.3
-36,6%
33.2
57.5
53.7
-6,7%
25.9
21.9
51.1
31.8
31.6
1Q15
1T15
4Q15
4T15
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0
90.6
71.3
6.1
32.0
27.8
26.5
1T15
1Q15
Edificaes
Real
Estate
CPV
COGS
12.0
15.4%
15.0%
10.0
8.0
7.7%
4.1
6.0
4.0
10.0%
5.0%
2.0
0.0
-2.0
1Q16
1T16
4Q15
4T15
1Q15
1T15
0.0%
-3.7%
-2.1
-4.0
Ebitda
-5.0%
Margem
Ebitda
Ebitda Margin
1,000.0
900.0
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0.0
1T16
1Q16
Impairment
10.0%
1.2%
0.0%
-8.6%
-9.8%
214.2
200.4
245.7
-10.0%
-20.0%
555.8
-30.0%
502.4
481.3
-40.0%
-50.0%
1T15
1Q15
4T15
4Q15
1T16
1Q16
Capital investido
- outros
Average
investedmdio
Capital
Net Rental PP&E
Capital
- imobilizado
de locao lquido
Averageinvestido
Investedmdio
Capital
- others
ROIC
16
4Q15
4T15
SG&A
PDD
ADD
21.9
ROIC (LTM)
20.0%
13.0
21.6
25.3
49.6
6.6
1Q16
1T16
Infraestrutura
Heavy
Construction
30.9
12.8
Southeast
Nova Tamoios Highway
Transbrasil
Sorocaba and So Jos
dos Campos Hospital
Galvani Mining Company
Cofins Airport Duplication
Sanitation project
Metropolitan Line 5 and
Line 6
Monorail Linha Ouro
Imigrantes Viaduct
Beltway
17
Per sector
BRL 23.9 million
Power
4.6%
Railways
12.7%
Others
7.0%
PPP
13.0%
Public
39.7%
Industrial
16.2%
Private
47.3%
Highways
21,%
Sanitation
5.1%
Urban Mobility
28.8%
18
Others
17%
Commercial
25%
Residential
57%
19
Rental
Net Income
90.0
79.6
76.4
40.0%
70.3
70.0
20.0%
50.0
0.0%
-4.0%
10.0
1T15
1Q15
16.2
38.0
0.8
15.4
20.6
21.8
1T15
1Q15
4T15
4Q15
8.3
8.6%
30.0
-10.0
4T15
4Q15
1T16
1Q16
-40.0%
45.9%
40.0
COGS
CPV
32.3
30.0
35.0%
26.8
25.0
20.0
40.0%
30.0%
20.0%
15.0
10.0%
10.0
0.0%
5.0
0.0
-10.0%
4Q15
4T15
1Q15
1T15
Ebitda
8.8%
1,000.0
900.0
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0.0
ADD
PDD
5.5%
5.1%
-10.0%
124.2
136.4
588.2
140.8
-20.0%
-30.0%
518.3
491.6
-40.0%
-50.0%
1Q15
1T15
4Q15
4T15
1Q16
1T16
Capital
- outros
Averageinvestido
investedmdio
Capital
Net Rental PP&E
1Q16
1T16
Margem
Ebitda
Ebitda Margin
10.0%
0.0%
Capital
- imobilizado
Averageinvestido
Investedmdio
Capital
- others de locao lquido
ROIC
ROIC
21
SG&A
1Q16
1T16
ROIC (LTM)
50.0%
43.3%
34.4
32.5
-20.0%
35.0
49.6
3.0
14.1
45.1
Others
2%
Sales
2%
Technical
Supoprt
1%
Spot
15%
NonConstruction
37%
used equip.
sales
30%
Locao
65%
22
Construction
48%
Consolidated - Indebtedness
Consolidated - Indebtedness
In BRL million
31.2%
17.1%
31.0%
21.9%
21.9%
106
106
8.0%
424
68.8%
173
Curto Prazo
150
39
Longo Prazo
Cash position
2016
2017
2018
2019
2020+
2.3%
Indebtedness on 03/31/2016
23.4%
56.8
631.1
423.5
574.3
74.3%
207.5
IPCA
CDI
TJLP
Principal
24
Interests
Gross Debt
Cash
Net Debt
4.5
Covenants 3,0
3.9
3.5
3.0
2.1
2.8
1.8
1.9
1.6
1.3
Covenants 2,0
1Q15
1T15
2Q15
2T15
3T15
3Q15
4Q15
4T15
1Q16
1T16
1Q15
1T15
2T15
2Q15
3T15
3Q15
4T15
4Q15
1T16
1Q16
Debentures Covenants:
(1)
(2)
*Excluding
25