Presentation of 2Q13 Results

Transcription

1 Presentation of 2Q13 Results

2 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 include factors 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 Comissão de Valores Mobiliários (CVM). 2

3 Agenda Sale of the Industrial Services business unit 2Q13 Results Growth plan 3

4 We entered into an agreement in July to sell our Industrial Services business unit Objective: To focus on businesses in which Mills competencies are able to add higher value to its shareholders and clients. Price: R$ 102 million; implicit EV/EBITDA ratio¹= 5.2x Form of payment: R$ 25 million - advance payment on the date of the sale agreement R$ 17 million on the closing of the sale R$ 60 million in four equal annual installments, adjusted by the CDI rate Financial results of Industrail Services 1 : Net revenue: R$ 214 million EBITDA: R$ 19.5 million, which represents 5.3% of Mills EBITDA 1 Last twelve months ended March 31,

5 Agenda Sale of the Industrial Services business unit 2Q13 Results Growth plan 5

6 2Q13¹ Highlights In R$ million % % 34.2% 39.5% % % % % % 42.5% % 50% 45% 40% 35% 30% 25% New Records % % 11.1% % 14.9% 14.2% 15.1% 13.6% 14.5% 14.5% 14.2% % 15% 10% 5% 0.0 2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13 Net Revenues EBITDA Net Income EBITDA Margin ROIC² 0% 2Q13/2Q % % % - 40 bps + 60 bps 2Q13/1Q % + 5.4% % bps - 70 bps * 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 of R$ 6.8 million in 3Q12 1 Pro forma result, including figures for the Industrial Services business unit 2 ROIC: Return on Invested Capital 6

7 Net revenues reached R$ million in 2Q13¹ Per business segment Per type of service Heavy Construction 20% Sales 10% Others 4% Rental 33% Industrial Services 22% Jahu - Residential and Commercial 25% Technical Support Services 20% Rental 66% 1 Pro forma result, including figures for the Industrial Services business unit 7

8 Heavy Construction Financial performance In R$ million % 43.5% 54.0% 48.0% % % 50.2% % % % 60% 50% 40% New Records % % % % % 16.6% 17.8% % % % % 17.8% 30% 20% 10% - 2Q13/2Q12 2Q13/1Q13 2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13 Net Revenues EBITDA EBITDA Margin ROIC¹ % % bps 0 bps % + 2.9% bps - 80 bps 0% * 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 1 ROIC: Return on Invested Capital 8

9 Revenue Index (Basis 100= Maximum monthly revenue in the life of construction) Important contracts per stage in the evolution of monthly revenue from the heavy construction projects New contracts* Source: Mills New contracts* Contracts with growing volume of equipment Belo Monte hydroelectric powerplant Oeste Leste railway Monorail line Gold SP Brasília airport Fortaleza airport Natal airport BRT Belo Horizonte BRT Sul DF East beltway - SP Companhia Siderúrgica do Pecém steel mill Paraguaçu shipyard Contracts with high volume of equipment Contracts in the demobilization process 1 New 3 phases 5 of Belo 7 Monte hydroeletric 9 11 powerplant Cuiabá 19 airport New stretches of the Guarulhos airport New stretches of Subway lines 4 and 5 SP SP-055 highway New phase of the transposition of the São Francisco river Duplication of Tamoios and Bandeirantes highways Libras terminal Colíder, Jirau and Teles Pires hydroelectric powerplants Comperj refinery Abreu e Lima refinery Norte-Sul railway Monorail line Silver - SP BRT Transcarioca Metropolitan arch RJ Vale s mine and railway Viracopos airport Guarulhos airport Porto Maravilha Pantanal arena Beira-Rio stadium Natal stadium Cuiabá light rail Subway line 2 - SP CSN steel plant Paranaenses arena BR-448 Manaus airport Cais das Artes Companhia Siderúrgica do Pecém steel mill Minas-Rio ore pipeline North beltway SP Cable-stayed bridge in Laguna Manaus thermoelectric unit Time 9

10 The construction work related to World Cup and Olympic events represented 31% of the Heavy Construction business segment s 2Q13 revenue Investments in infrastructure for the 2014 World Cup Total: R$ 23.6 billion 2Q13 Revenue R$ 55.1 million In Progress Executed¹ Infrastructure 33% Others 11% World Cup and Olympics 31% Airports 10.3% Urban mobility 10.2% 4.2 Stadiums 10.2% Stadiums Urban mobility Airports Ports Industry 26% 1 In July 2013 Source: 4th 2014 World Cup Report, Portal da Transparência and Mills 10

11 Jahu Residential and Commercial Financial performance In R$ million % % New Record % % % % 45.5% % % 50.1% % 14.8% % 42.8% 39.6% % % 12.6% 12.8% 37.0% % 50% 40% 30% 20% 10% - 2Q13/2Q12 2Q13/1Q13 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 3Q12* 4Q12 1Q13 2Q13 Net Revenues EBITDA EBITDA Margin ROIC¹ % - 9.5% bps bps + 2.5% % bps bps 0% * Excluding the positive effect of R$ 5.3 million of tax contingency reversal in 3Q12 1 ROIC: Return on Invested Capital 11

12 Commercial projects contributed 36% of 2Q13 equipment rental revenues In R$ million % 3% 11% 13% 12% 12% 2% 1% 1% 2% Others Industrial 34% 34% 36% 37% 36% Commercial Residential - others Residential - listed companies Residential 57 % 45% 36% Residential 53 % Residential 50% 43% Residential 50% 32% 31% Residential 50% 12% 17% 7% 18% 19% 2Q12 3Q12 4Q12 1Q13 2Q13 12

13 Real estate market continues with a good outlook Number of shopping centers Total launches¹ in R$ billion % E 2014E 1Q12 2Q12 2Q13 1 Cyrela, Direcional,Even, Eztec, Gafisa, Helbor, MRV, Rodobens, Tecnisa and Trisul Source: Abrasce, operational reports from companies and Mills 13

14 Rental Financial Performance In R$ million % 54.8% 47.6% % % 12.9% 61.8% 56.0% 56.6% 56.5% % % % 16.3% 16.3% 16.9% % % % 18.5% 70% 60% 50% 40% 30% 20% 10% New Records - 2Q13/2Q12 2Q13/1Q13 2Q11 3Q11 3Q11* 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Net Revenues EBITDA EBITDA Margin ROIC¹ +62.6% % bps bps % % bps - 60 bps 0% * Excluding the negative effect of R$ 3.3 million of Allowance for Doubtful Debt (ADD) in 3Q11 1 ROIC: Return on Invested Capital 14

15 Mills is one of the top 5 access rental companies with largest fleet growth in 2012 Largest fleet growth ranking, in th Fleet size ranking, at the end of th Source: Access International 15

16 The Brazilian fleet of motorized access equipment grew 19% up to May 45 Motorized access equipment fleet In thousands of units % p.a % % % % 11 Source: Mills and Yengst Associates E 16

17 Industrial Services Financial performance In R$ million % % 14.2% % % % 12.2% % 14.3% 15% 10% % 7.5% 8.5% 8.9% 5% % 4.7% -1.2% 3.9% 0.2% 0% % 0.1 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Net Revenues EBITDA EBITDA Margin ROIC¹ -5% -10% 2Q13/2Q % % bps bps 2Q13/1Q % % bps bps 1 ROIC: Return On Invested Capital 17

18 Agenda Sale of the Industrial Services business unit 2Q13 Results Growth plan 18

19 Evolution of the number of branches Rental Industrial Services Jahu - Residential and Commercial Heavy Construction Q13 Colunas1 2Q13 19

20 We invested R$ 143 million in rental equipment in 1Q13 and 55% of our 2013 revised budget in the year to date Capex In R$ million 481 1H13 Capex 2013 (%) 274 Rental 52% 263 Industrial Services 8% Jahu - Residential and Commercial 62% Heavy Construction 57% Q13 1H Budget 20

21 Presentation of 2Q13 Results Mills Investor Relations Tel.: +55 (21)