Mills Results

Index
Main Indicators
Revenue
COGS G&A
EBITDA
Capex per Business Unit
Financial Indicators per Business Unit
Income Statement
Balance Sheet
Cash flow

Mills - Key financial indicators

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Net revenue

163.9

127.9

130.1

-20.6%

1.7%

EBITDA

47.3

-30.1

29.0

-38.8%

-196.4%

28.9%

-23.5%

22.3%

58.2

33.1

32.4

-44.4%

-2.2%

EBITDA margin ex-non recurring items (%)

35.5%

25.9%

24.9%

Net earnings (Loss) - ajusted

-14.5

-20.2

-17.8

22.9%

-11.9%

ROIC LTM (%) - ajusted

In R$ Million

EBITDA margin (%)

EBITDA ex-non recurring items

4.0%

-0.3%

-1.1%

Capex (accurl basis)

6.4

2.6

1.3

-79.7%

-50.6%

Free cash flow before interest

70.3

61.5

79.5

13.0%

29.1%

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Mills - Net revenue per type

In R$ Million
Rental

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

132.4

110.0

89.6

-32.3%

-18.5%

Technical support services

1.7

1.8

1.4

-15.3%

-22.4%

Sales of new equipment

11.3

4.9

2.1

-81.0%

-56.3%

Sales of semi-new equipment

6.7

8.6

29.2

339.7%

239.6%

Others

11.9

2.5

7.6

-35.8%

199.9%

163.9

127.9

130.1

-20.6%

1.7%

1T15

4T15

1T16

Heavy construction

51.1

31.2%

31.6

24.7%

31.8

Real estate

33.2

20.3%

25.9

20.3%

21.9

Total net revenue

Mills- Net revenue per business unit

In R$ million

Rental
Total net revenue

79.6

48.6%

70.3

55.0%

76.4

163.9

100.0%

127.9

100.0%

130.1

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%
24.4%
16.8%
58.7%
100.0%

Mills - Cost of goods and services sold (COGS) and general, administrative and operating expenses (G&A), ex-depreciatio
In R$ Million

1Q15

4Q15

1Q16

31.5

27.0%

36.4

23.0%

30.3

29.9%

Costs of sale of new equipment

7.9

6.7%

3.1

2.0%

1.5

1.5%

Costs of sale of semi-new equipment

3.0

2.6%

5.6

3.6%

19.5

19.3%

Costs of job execution/Equipment storage (g), (h)

Costs of asset write-offs

4.7

4.1%

1.9

1.2%

3.1

3.1%

COGS total, ex-depreciation

47.1

40.4%

47.1

29.8%

54.4

53.8%

Commercial, Operational and Administrative

34.4

29.6%

28.4

18.0%

22.0

21.8%

General services

10.0

8.6%

10.7

6.8%

8.7

8.6%

4.0

3.4%

64.4

40.8%

7.0

6.9%

G&A, ex-depreciation and ADD

Others expenses

48.5

41.6%

103.5

65.5%

37.7

37.3%

ADD

21.0

18.0%

7.4

4.7%

9.1

9.0%

Total COGS + G&A

116.5

100.0%

157.9

100.0%

101.1

100.0%

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

-45.6%

-5.3%

-68.8%

-16.9%

-63.7%

264.7%

-57.1%

22.6%

ADD
In R$ Million
Heavy Construction
% Net Revenue
Real Estate
% Net Revenue
Rental
% Net Revenue
Total ADD
% Net Revenue

8.8

5.1

4.8

17.3%

16.1%

15.1%

4.0

1.5

1.2

12.01%

5.78%

5.68%

8.3

0.8

3.0

10.5%

1.2%

4.0%

21.2

7.4

9.1

12.9%

5.8%

7.0%

G&A), ex-depreciation

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Mills - EBITDA per business unit and EBITDA margin

In R$ million

1Q15

4Q15

1Q16

Construction

13.0

27.4%

-33.0

109.9%

4.1

Rental

34.4

72.8%

32.3

-107.5%

26.8

47.3

100.0%

-30.1

100.0%

29.0

EBITDA Total
EBITDA margin (%)

28.9%

-23.5%

22.3%

Mills - Reconciliation of EBITDA

In R$ Million

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Results of continuing operations

-14.5

-57.9

-17.8

22.9%

-69.3%

Financial result

-18.4

-13.5

-12.6

-31.3%

-6.4%

Income tax and social contribution expenses

-0.1

26.6

6.3

-6808.1%

-76.2%

Operational Results before Financial Result

4.0

-71.1

-11.5

-388.3%

-83.8%

Depreciation

43.4

41.0

40.5

-6.6%

-1.3%

EBITDA

47.3

-30.1

29.0

-38.8%

-196.4%

Expenses (revenues) related to the Industrial services former business unit

0.1

3.1

1.9

1900.9%

-38.6%

Impairment

57.1

Non recurring items*

10.8

2.9

1.5

-86.1%

-48.5%

EBITDA ex- non recurring items

58.2

33.1

32.4

-44.4%

-2.1%

In R$ Million

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Financial Income

7.6

13.5

12.6

64.2%

-6.7%

Financial Expense

-26.0

-26.9

-25.2

-3.3%

-6.6%

Financial Result

-18.4

-13.5

-12.6

-31.3%

-6.4%

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%
14.2%
92.3%
100.0%

Mills - Investment per business unit

In R$ million

4Q14

3Q15

4Q15

2014

2015

(A)

(B)

Rental equipment
Contruction

15.8

4.2

1.1

62.4

11.6

Rental

0.0

0.0

0.0

104.2

0.0

15.9

4.2

1.1

166.5

11.7

Corporate and use goods

6.7

5.3

1.5

32.6

16.4

Capex Total

22.6

9.5

2.6

199.1

28.2

Rental equipment

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(B)/(A)
%

-81.5%
-100.0%
-92.9%
-49.5%
-85.8%

Construction
1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

63.1

50.3

39.7

-37.0%

-20.9%

Heavy Construction

36.5

29.1

23.9

-34.3%

-17.8%

Real Estate

26.7

21.1

15.8

-40.8%

-25.2%

21.2

7.3

14.0

-34.0%

92.0%

Heavy Construction

14.6

2.5

7.9

-46.3%

217.2%

Real Estate

6.6

4.8

6.1

-6.8%

27.5%
-6.7%

In R$ Million
Net revenue
Rental

Technical support services, sales and others

Total net revenue

84.3

57.5

53.7

-36.3%

COGS, ex-depreciation

26.5

25.3

21.9

-17.4%

-13.3%

G&A, ex-depreciation and ADD

32.0

58.7

21.6

-32.3%

-63.2%

ADD

12.8

6.6

6.1

-52.8%

-7.9%

Heavy Construction

8.8

5.1

4.8

-45.6%

-5.3%

Real Estate

4.0

1.5

1.2

-68.8%

-16.9%

13.0

-33.0

4.1

-68.3%

-112.5%

EBITDA margin (%)

15.4%

-57.4%

7.7%

ROIC (%)

1.2%

-8.6%

-9.8%

1.1

1.8

0.4

-63.5%

-77.1%

EBITDA

Capex
Invested Capital

801.5

716.6

681.7

-14.9%

-4.9%

Rental net PP&E

555.8

502.4

481.3

-13.4%

-4.2%

Others

245.7

214.2

200.4

-18.4%

-6.4%

Depreciation

22.5

22.0

21.8

-3.3%

-1.3%

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Rental

36.5

29.1

23.9

-34.3%

-17.8%

Technical support services, sales and others

14.6

2.5

7.9

-46.3%

217.2%

51.1

31.6

31.8

-37.8%

0.6%

1Q15

4Q15

1Q16

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Rental

26.7

21.1

15.8

-40.8%

-25.2%

Technical support services, sales and others

6.6

4.8

6.1

-6.8%

27.5%

33.2

25.9

21.9

-34.0%

-15.5%

Heavy Construction financial indicators

In R$ Million
Net revenue

Total net revenue

Real Estate financial indicators

In R$ Million
Net revenue

Total net revenue

Rental financial indicators

4Q14

3Q15

4Q15

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Rental

71.8

59.8

59.7

-16.8%

-0.1%

Technical support services, sales and others

12.2

9.0

10.6

-12.8%

18.6%

Total net revenue

83.9

68.7

70.3

-16.2%

2.3%

COGS, ex-depreciation

25.5

22.1

21.8

-14.5%

-1.3%

G&A, ex-depreciation and ADD

17.5

14.9

15.4

-12.3%

3.6%

ADD

7.6

5.4

0.8

-89.1%

-84.7%

EBITDA

33.2

26.4

32.3

-2.7%

22.5%

EBITDA margin (%)

39.6%

38.4%

45.9%

ROIC (%)

11.5%

-3.1%

5.5%

In R$ million
Net revenue

Capex

0.0

0.0

0.0

-100.0%

-100.0%

704.6

679.1

654.7

-7.1%

-3.6%

Rental net PP&E

590.8

545.2

518.3

-12.3%

-4.9%

Others

113.9

134.0

136.4

19.8%

1.8%

Depreciation

21.0

20.8

19.0

-9.5%

-8.7%

Invested Capital

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2014

2015

(E)/(D)

(D)

(E)

324.0

254.1

-21.6%

46.8

39.1

-16.6%

370.8

293.2

-20.9%

91.7

85.0

-7.2%

64.4

62.8

-2.6%

18.0

12.8

-29.2%

196.7

132.6

-32.6%

53.0%

45.2%

11.5%

5.5%

104.2

0.0

-100.0%

704.6

654.7

-7.1%

590.8

518.3

-12.3%

113.9

136.4

19.8%

80.9

80.7

-0.2%

Mills - Income statement

In R$ million

1Q15

4Q15

1Q16

Net revenue from sales and services

163.9

127.9

130.1

Cost of products sold and services rendered

(86.1)

(83.6)

(90.5)

77.8

44.3

39.6

Gross profit
Other operational revenues
General and administrative expenses

(73.8)

(115.3)

(51.1)

4.0

(71.1)

(11.5)

(26.0)

(26.9)

(25.2)

Financial income

7.6

13.5

12.6

Financial result

(18.4)

(13.5)

(12.6)

Profit before taxation

(14.4)

(84.6)

(24.1)

(0.1)

26.6

6.3

(14.5)

(57.9)

(17.8)

Operating profit
Financial expense

Income tax and social contribution expenses

Results of continuing operations
Resultado de operaes descontinuadas
Net income (Loss)
Number of shares at the end of the period (in thousands)
Net income (R$ per shares)

(14.5)

(57.9)

(17.8)

128,058

128,058

128,058

(0.11)

(0.45)

(0.14)

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Mills - Balance sheet
In R$ Million
Assets

1Q15

Current Assets
Cash and cash equivalents

4Q15

1Q16

214.0
126.4
19.9
28.6
0.1
18.0
6.6
413.7

232.0
99.7
18.4
39.4
0.2
19.8
5.3
20.7
435.5

423.5
###
91.6
18.2
33.5
0.1
20.4
6.9
11.9
606.2

1.2
35.9
26.8
27.1
10.9
101.9

12.3
47.2
11.0
19.8
90.4

###
8.3
53.6
10.6
20.4
###
92.9

87.4
1,154.4
76.5
1,318.4

61.2
1,004.1
46.8
1,112.0

###
949.2
46.2
1,056.6

Total Non-Current Assets

1,420.3

1,202.4

1,149.4

Total Assets

1,833.9

1,638.0

1,755.7

Trade receivables
Inventories
Recoverable taxes
Advances to suppliers
Other receivables- Sale of investee
Other current assets
Current Assets held for sale
Total Current Assets
Non-Current Assets
Realizvel a longo prazo
Trade receivables
Recoverable taxes
Deferred taxes
Deposits in court
Other trade receivables
Other assets

Investment
Property, plant and equipment
Intangible assets

In R$ Million
Liabilities
Current Liabilities
Suppliers
Borrowings and financings
Debentures
Salaries and payroll charges
Income tax and social contribution
Tax refinancing program (REFIS)
Taxes payable
Profit sharing payable
Dividends and interest on equity payable
Derivative financial instruments
Advances on assets held for sale
Liabilities associated with assets available for sale
Other current liabilities
Total Current Liabilities
Non-Current Liabilities

1Q15

4Q15

14.9
3.2
114.3
20.0
1.0
2.9
21.8
1.2

179.4

1Q16

6.8
3.2
186.6
18.2
1.2
2.7
0.2
218.9

6.8
3.2
193.5
16.7
###
1.2
1.3
###
0.0
###
###
###
0.6
223.3

Borrowings and financings

Derivative financial instruments
Debentures
Provision for tax, civil and labor risks
Taxes payable
Deferred taxes
Tax refinancing program (REFIS)
Trades payable - stock plan
Other Liabilities
Total Non-Current Liabilities

14.3
580.3
9.0
12.4
14.3
14.3
616.0

11.9
419.1
16.61

11.1
###
423.2
18.45

9.2
9.3
456.8

###
9.2
###
###
462.0

Total Liabilities

795.3

675.7

685.3

Stockholders' Equity
Capital
Earnings reserves
Capital reserves
Valuation adjustments to equity

563.3
2.5
487.0
0.2

563.3
389.2
9.7
-

###
389.2
135.6
###

Retained earnings
Total Stockholders' Equity

(14.5)
1,038.6

962.2

(17.8)
1,070.4

Total Liabilities and Stockholders' Equity

1,833.9

1,638.0

1,755.7

Mills - Cashflow
in R$ million

1Q15

4Q15

Cash from operations activities

(14.4)

(84.6)

Depreciation and amortization

43.4

41.0

Provision for tax, civil and labor risks

(0.5)

3.7

Accrued expenses on stock options

2.5

3.7

(14.4)

(0.8)

22.9

24.9

21.0

7.4

Net income before taxition

Adjustments

Participao de lucros a pagar

Gain on sale of property, plant and equipment and intangible assets
Interest, monetary and exchange rate variation on loans, contingencies and deposits in court
Allowance for doubtful debts

57.1

Slow turnover inventory provisions

Others

1.9

(7.0)

76.8

129.8

4.3

15.2

Changes in assets and liabilities

Trade receivables
Gain on sale of equipment

27.5

Purchases of rental equipment

(1.1)

(1.1)

0.0

7.1

Inventories

7.2

3.6

Deposits in court

(0.4)

1.8

Other assets

(1.0)

2.4

Suppliers

(1.7)

(5.8)

Recoverable taxes

Salaries and payroll charges

Income tax and social contribution
Other liabilities

0.6

(5.0)

(1.1)

0.6

0.2

(0.5)

34.6

18.2

(0.0)

(0.4)

(15.0)

(21.3)

(6.3)

0.0

75.6

41.8

Cash from operations

Lawsuits settled
Interest paid
Profit sharing paid
Participao nos lucros paga
Net cash generated by operating activities

Cash flow from investment activities

Ttulos e valores mobilirios

Adiantamento sobre ativos mantidos para venda

Purchases of property, plant and intangible assets

(2.5)

Proceeds from sale of SI business unit

(1.6)

Proceeds from sale of property, plant and equipment and intangible assets

Net cash applied in investment activities

(2.5)

(1.6)

Cash flow from financing activities

Shares in treasury
Dividends and interest on capital invested paid

(8.8)

Repayment of borrowings
(41.2)

(0.8)

(50.0)

(0.8)

20.4

39.5

Cash and cash equivalents at the beginning of the period

193.7

192.5

Cash and cash equivalents at the end of the period

214.0

232.0

Borrowings/Debentures raised
Ingressos de emprstimos

Net cash generated by (used in) financing activities

Increase (decrease) in cash and cash equivalents

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1Q16

(24.1)

40.5
1.3
1.4

(10.3)
12.6
9.1

0.0
54.5

3.8
29.9
(0.1)
8.8
10.1
0.6
(0.4)
(0.1)
(1.5)
(1.4)
0.4
50.2

(11.7)

68.9

(1.2)

(1.2)

124.6

(0.8)

123.8

191.5

232.0
423.5