Mills Locacao Servicos E Logistica S.a. · BMFBOVESPA:MILS3
Mills Locacao Servicos E Logistica — Investor Presentation (2018)
28 slides from Mills Locacao Servicos E Logistica's investor presentation, 2018
Slide 1: Corporate Presentation and LTM2Q18 Results
Corporate Presentation and LTM2Q18 Results
Slide 2: Corporate Presentation and LTM2Q18 Results
Corporate Presentation and LTM2Q18 Results Company Overview Market Outlook Financial Profile
Slide 3: Mills at a Glance
Mills at a Glance Largest aerial platform rental Company in Latin America and the largest provider of infrastructure engineering solutions in Brazil Strong brand name and reputation Undisputable track record, with more than 65 years of history Largest footprint and fleet in Brazil in all business un
Slide 4: Company History
Company History Resizing of PP&E and branches First Brazilian manufacture Sale of the Events business in the Construction Business unit of formwork by license unit and acquired Jahu to focus on complex projects. agreement with NOE- Ltda, initiating its Rental Sale of the Industrial Focus on the
Slide 5: Overview of Mills
Overview of Mills Complete in rental of aerial platforms, engineering products and services, in Brazil for more than 65 years. Company Overview Geographic Footprint • We are currently the largest aerial platform rental Company in Latin America and the largest provider of infrastructure engineering s
Slide 6: Business Units
Business Units Rental Construction Focus on Industry, Retail and Others. Focus on Infrastructure, Industrial and Commercial projects. Rental and sale of motorized access equipment, mainly Sale and rental of concreting and shoring, providing aerial work platforms. engineering solutions, services of t
Slide 7: What we do?
What we do? Our work begins in preliminary studies of economic and technical feasibility and goes to the end of the projects. Thus, we can guarantee the use of the best engineering and access solutions. Feasibility Executive Implementatio Foundation Structure Finishing Studies Projects n (Jobsite)
Slide 8: What we do? – Rental Business Unit
What we do? – Rental Business Unit Mills provides a diversity of aerial platforms’ fleet for working at height for the construction, commerce and industry segments. Aerial Platforms Mast Lifts PLATAFORMAS AÉREAS Productivity, profitability and safety, the Rental business unit disposes the most advan
Slide 9: What we do? – Rental Business Unit
What we do? – Rental Business Unit All people and companies that needs to execute works at height are potential clients, therefore we rent equipment for the most diverse segments. Shipyards Warehouses Pre-casts Filming/Show Maintenance Works Hydroelectrics Works of Art Restoration Industrial Assembl
Slide 10: Mills' Strategies
Mills’ Strategies SHORT / MEDIUM TERM MEDIUM / LONG TERM Cash flow discipline Price increase in the Rental business unit Focus on delinquency reduction Seek opportunities in new regions in Brazil Capex optimization Gradual recovery of prices in the Rental business unit Capex with attra
Slide 11: Corporate Presentation and LTM2Q18 Results
Corporate Presentation and LTM2Q18 Results Company Overview Market Outlook Financial Profile
Slide 12: Support of the price increase strategy in Rental and slow recovery in Construction
Support of the price increase strategy in Rental and slow recovery in Construction Rental Drivers Construction Drivers Industrial GDP Growth Investments in Heavy Construction on GDP 10.2 Better 7.5 2.27 4.0 3.0 1.9 2.03 4.1 1.0 1.4 0.5 2.2 1.4 1.85 1.83 0.0 1.91 2010 2011 2012 2013 2014 2015 2016 20
Slide 13: R$130 billion in identified investment opportunities
R$130 billion in identified investment opportunities According to a research conducted by Credit Suisse, there are several private-sector investment opportunities in the coming years for infrastructure companies, especially in toll roads. PPI has also already announced nine new toll-road projects (o
Slide 14: Corporate Presentation and LTM2Q18 Results
Corporate Presentation and LTM2Q18 Results Company Overview Market Outlook Financial Profile
Slide 15: Summary Financials
Summary Financials In R$ million Net Revenue per Type Net Revenue per Segment 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 305.1 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 305.1 56.8 50.4 101.3 80.5 39.9 64.1 37.8 53.9 474.9 423.4 27.6 36.8 34.5 412.0 30.1 283.0 674.2 663.3 49.8 18.1 18.0 36
Slide 16: Utilization Rate and Main Works
Utilization Rate and Main Works Rental – Utilization Rate Main Works in the 2Q18 100% 90% 80% North and Northeast 70% Transposition of the São 60% Francisco river – PE Segipe’s Port Thermoelectric 50% plant – SE 40% Subway Line 2 Salvador – BA 30% Average LTM 2Q18 = 55.1% 20% 10% 0% Constructi
Slide 17: Summary Financials
Summary Financials In R$ million EBITDA¹ - Mills 480 ,0 60,0% 51.4% 48.5% 430 ,0 47.5% 47.0% 50,0% 380 ,0 45.3% 384.7 40,0% 330 ,0 343.8 31.8% 280 ,0 327.5 30,0% 230 ,0 20,0% 180 ,0 217.4 12.9% 130 ,0 168.4 174.1 10,0% 3.4% 80,0 -4.5% 0,0% 30,0 45.7 8.9 -10,0% (11.4) (2 0,0) EBITDA¹ - Rental Busines
Slide 18: Non-recurring items
Non-recurring items Non-recurring items¹ = Number of branches evolution²: Restructuring Expenses related to Mills Industrial Expenses Services¹ business unit Expenses with closing and demobilization of branches. Resizing of equipment focused on the light real estate market (scrap result). Orga
Slide 19: Summary Financials
Summary Financials In R$ million Costs and Expenses Net Profit (Loss) 403 516 424 560 622 585 515 480 455 166.8 151.5 42 16 38 103.3 11 21 92.2 11 64.3 14 232 11 2 164 209 203 180 180 160 125 172 2010 2011 2012 2013 2014 2015 2016 2017 LTM2Q18 340 335 348 344 314 276 290 284 238 -97.8 -99.4 2010¹ 20
Slide 20: Indebtedness
Indebtedness In R$ million Gross Debt Profile Principal Amortization Schedule Finame 3rd issuance of Debentures - 116.0% CDI 2nd issuance of Debentures - IPCA + 7.0% 37.9 106.2 38.9 45.1% 54.9% 3.2 66.7 1.6 2.5 36.4 36.4 36.4 2018 2019 2020+ Short Term Long Term We do not have foreign currency exp
Slide 21: Debt Indicators
Debt Indicators In R$ million Adjusted Operating Cash Flow* / Financial Result Net Debt / Adjusted Operating Cash Flow* 3.0 4.8 4.5 4.0 3.7 3.6 1.8 1.8 1.6 2.0 1.5 1.1 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 Debentures Covenants: (1) LTM Adjusted Operating Cash Flow*/Financial result >=
Slide 22: Financial Summary
Financial Summary In R$ million 2010¹ 2011¹ 2012¹ 2013¹ 2014² 2015³ 2016 20174 LTM2Q18 % Part Net Revenue Consolidated 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 305.1 100.0% Construction 259.4 287.4 412.0 474.9 423.4 283.0 182.3 110.0 105.3 34.5% Rental 95.1 175.4 253.5 357.3 370.8 293.2 214.3
Slide 23: Mills and Solaris Potential Business Combination
Mills and Solaris Potential Business Combination Transaction Highlights Execution of a preliminary and non-binding term sheet by and among the Company and Mills’ and Solaris’ controlling shareholders to set forth the preliminary terms and conditions of a potential business combination between Mill
Slide 24: Overview of Solaris
Overview of Solaris Business Description Pioneer in the segment of aerial platforms and telescopic handlers; 2nd largest AWP’s rental company; 20 years of performance in the market; Diversified portfolio with 4 product lines; Controlled since 2013 by the private Net Revenue Around 4,000 Ar
Slide 25: NewCo – Sinergies and Scale Benefits
NewCo – Sinergies and Scale Benefits Due to the similarity between the companies, the expectation is to extract great synergies with the transaction. Improvement of business profitability and value to its Business shareholders 2017 Figures - in R$ million Solaris Mills NewCo Unit Rental Corporate Co
Slide 26: AWP Market: Uncontested Leadership
AWP Market: Uncontested Leadership Rental Market Evolution in Brazil Capacity share before the Deal In thousand of equipment with rental companies 29.7 29.0 28.6 28.6 Mills; 19% 25.9 • 30 branches Others; 42% Solaris; 10% • 5,665 equipment 19.1 14.3 Trimak; 4% A Geradora; 1% Degraus; 3% 9.2 Giga; 1%
Slide 27: Notes
Notes Aerial Work Plataform - Spazio Residence Formwork and Shoring – Salvador’s Subway
Slide 28: 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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