Mills Locacao Servicos E Logistica S.a. · BMFBOVESPA:MILS3
Mills Locacao Servicos E Logistica — Mills Estruturas e Serviços de Engenharia — Q2 2017 Earnings Presentation
24 slides from Mills Locacao Servicos E Logistica's earnings presentation, Aug 9, 2017
Slide 1: Corporate Presentation and 2Q17 Results
Corporate Presentation and 2Q17 Results
Slide 2: Corporate Presentation and 2Q17 Results
Corporate Presentation and 2Q17 Results 1. Company Overview 2. Revenue Drivers 3. Financial Profile 2 Corporate Presentation and 2Q17 Results
Slide 3: Our Company
Our Company Complete in engineering products and services, in Brazil for more than 65 years. With ability to plan, integrate services and products for the construction and industry sectors. We invest in the expertise of our team of professionals, which, allied to our diversified experience, allows u
Slide 4: Company History
Company History First Brazilian manufacture of formwork by license Sells Events Unit agreement with NOE- Acquired Jahu Ltda Schaltechnik from Initiates its Rental Unit Founded on 1952. Germany 50`s 90`s Catedral da Sé Ferrovia do Aço hydroelectric power plant Lajeado Paiva construction work Maracanã
Slide 5: Business Units
Business Units Construction Rental Focus on Infrastructure, Industrial, Residential and Focus Civil Construction, Industry, Retail and Others. Commercial projects. Sales and rental of concreting and shoring, providing Rental and sale of motorized access equipment, such as engineering solutions, serv
Slide 6: Business Units
Business Units Mills is the national market leader in equipment rental for both business Units. Construction equipment¹²: 2015 Net Revenues (R$ million) Arial work platforms³: 2015 Net Revenues (R$ million) Mills 283 Mills 293 SH 110 144 Solaris 140-160 216 Ulma 94 141 Locar 120 304 Not listed Not
Slide 7: What We Do?
What We Do? Access Formwork and Shoring Special systems We are present on all construction phases. Our work starts on the preliminary economic and technical viability studies and goes until the end of the projects. Thus, we ensure the use of the best engeneering solutions. Implementation Viability
Slide 8: Strengths and Competitive Advantages
Strengths and Competitive Advantages Know-how to work in complex projects, such as bridges, subways and hydroelectric “Best-in-class” power plants; engineering and technical Recognition of its differentiated services and reliability; capabilities and SLA Market leader in its core business unit
Slide 9: Main iniciatives and events held by the Company
Main iniciatives and events held by the Company 2015 2016 2017 Sergio Kariya took the position as Capital increase, in April, of R$125 Optimization of the number of CEO. million. branches and equipment, specially for the light real Revisited its organizational Hiring of Gustavo Zeno as CFO
Slide 10: Organizational Structure
Organizational Structure Sergio Kariya Chief Executive Officer Ricardo Gusmão Daniel Brugioni Sergio Kariya Avelino Garzoni Gustavo Zeno Fernanda Strategic Clients Commercial and Operations Engineering and Administrative Copeman Marketing (Interim) New Financial and IR People and Technologies Manage
Slide 11: Corporate Presentation and 2Q17 Results
Corporate Presentation and 2Q17 Results 1. Company Overview 2. Revenue Drivers 3. Financial Profile 11 Corporate Presentation and 2Q17 Results
Slide 12: Heavy Construction: Market Perspective
Heavy Construction: Market Perspective It is known that investment in infrastructure is historically low in Brazil and still far from the levels seen in developing countries. Investment in Infrastructure Investment in Infrastructure in Brazil (% GDP) (% GDP) China (2010) 5.4 0.5 Index 1.0 (best) Í
Slide 13: Rental: Market Perspective
Rental: Market Perspective The market of aerial platform gained traction in 2007 with the revision of the Regulatory Safety Labor Norm 18 (NR18), which establishes that workers must be lifted with the use of motorized access equipment and economic growth. The current volume in Brazil is around 34,00
Slide 14: Revenue Drivers for Construction Jobs and its Relevance
Revenue Drivers for Construction Jobs and its Relevance 2017-18 2019-20 2021 onwards Backlog Continuity of works in progress - Resumption of suspended - works Delays on works - Pipeline New construction works Renewal of existing concessions Crescer Program Less relevant Relevant Very relevant The
Slide 15: Corporate Presentation and 2Q17 Results
Corporate Presentation and 2Q17 Results 1. Company Overview 2. Revenue Drivers 3. Financial Profile 15 Corporate Presentation and 2Q17 Results
Slide 16: Utilization Rate and Main works
Utilization Rate and Main works Construction – Utilization Rate Main works in the 2Q17 100% 90% 80% North and Northeast 70% Salvador’s Subway – BA 60% March 29th Avenue - BA 50% ETE Una – PA 40% Average LTM 2Q17 = 38.0% UHE São Manoel - PA 30% 20% 10% 0% Central-West and South 1Q10 3Q10 1Q11
Slide 17: Summary Financials
Summary Financials In R$ million Net Revenue Costs and Expenses 900 665 832 794 576 298 354 463 397 800 57 402 516 424 560 622 585 515 481 50 900 700 101 80 800 40 600 64 700 38 500 54 600 42 38 28 16 21 400 37 500 11 8 35 209 232 203 30 674 663 50 23 400 2 164 14 180 300 36 191 561 23 300 125 172 4
Slide 18: We remain vulnerable to the macroeconomic scenario and to the financial situation of our clients
We remain vulnerable to the macroeconomic scenario and to the financial situation of our clients Allowance for Doubtful Debts (ADD) Evolution Delinquency Evolution In % of total net revenue Affected by signed and not honored 75,2% 76,4% 74,1% confession of 72,0% 73,9% indebtedness. 6,6% 73,1% 73,6%
Slide 19: Free Cash Flow
Free Cash Flow¹ In R$ million EBITDA Reconciliation with Operational Cash Flow 7,8 (4.8) (13.5) 5,2 0,2 13.5 3,3 12.3 (4,9) (11,8) 1.0 0.5 (1,8) (12.3) 7.1 Ebitda CVM Other non cash items Allowance for doubtful Other cash items Interest and monetary Operating Cash Flow equipment inventory Adjusted O
Slide 20: Consolidated - Indebtedness
Consolidated - Indebtedness In R$ million The weighted average maturity of our debt is 2.1 years at a cost of CDI+1.28% on June 30, 2017. Gross Debt Profile Principal Amortization Schedule 263,8 42,0% 82,0 106,1 106,2 58,0% 38,8 Cash/Restricted 2017 2018 2019 2020+ bank deposits Finame 3rd issue of
Slide 21: Consolidated – Debt Indicators
Consolidated – Debt Indicators In R$ million Adjusted Operating Cash Flow* / Financial Result Net Debt / Adjusted Operating Cash Flow* 3,0 5,0 4,9 4,2 3,8 3,6 2,0 2,3 1,4 1,0 0,9 0,8 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 Debentures Covenants: (1) LTM Adjusted Operating Cash Flow*/Finan
Slide 22: Financial Summary
Financial Summary In R$ million 2010¹ 2011¹ 2012¹ 2013¹ 2014² 2015³ 2016 LTM2Q17 % Part Net Revenue Consolidated 354.5 462.8 665.5 832.3 794.2 576.1 396.6 297.9 100.0% Construction 259.4 287.4 412.0 474.9 423.4 283.0 182.3 131.3 44.1% Rental 95.1 175.4 253.5 357.3 370.8 293.2 214.3 166.7 55.9% Adjus
Slide 23: Key Takeaways
Key Takeaways 2017 : Actions • Planning and structural actions for EBITDA recovery and cash preservation • Company’s sizing • Adequacy of equipment mix in Rental • Commercial strategy • Construction: medium size constructors and entrants • Rental: focus on continuation of non-construction sector • C
Slide 24: Disclaimer
Disclaimer This presentation may contain statements that present expectations of the Management of Mills Estruturas e Serviços 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 informat
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