22 slides from Mills Locacao Servicos E Logistica's earnings presentation, March 2018
Slide 1: Corporate Presentation and 4Q17 Results
Corporate Presentation and 4Q17 Results
Slide 2: Corporate Presentation and 4Q17 Results
Corporate Presentation and 4Q17 Results 1 Company Overview 2 Market Outlook 3 Financial Profile 2 Corporate Presentation and 4Q17 Results
Slide 3: Overview of Mills
Overview of Mills Complete in engineering products and services, in Brazil for more than 65 years. Company Overview Geographic Footprint • Mills is one of Brazil's largest specialty engineering services company and the largest provider of concrete formwork and tubular structures and motorized access
Slide 4: Business Units
Business Units Construction Rental Focus on Infrastructure, Industrial and Commercial Focus Civil Construction, Industry, Retail and Others. projects. Sales and rental of concreting and shoring, providing Rental and sale of motorized access equipment, such as engineering solutions, services of techn
Slide 5: Mills at a Glance
Mills at a Glance “Best-in-class” engineering, technical capabilities and SLA Largest footprint and fleet in Brazil in all business units - High capillarity: present in 19 States and Federal District in 30 locations Diversified revenue streams - serves several segments through its business units Str
Slide 6: 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 7: Market Outlook
Corporate Presentation and 4Q17 Results 1 Company Overview 2 Market Outlook 3 Financial Profile 7 Corporate Presentation and 4Q17 Results
Slide 8: Slow recovery in Construction and support of the price increase strategy in Rental
Slow recovery in Construction and support of the price increase strategy in Rental Construction Drivers Rental Drivers Investments in Heavy Construction on GDP Industrial GDP Growth 10.2 Melhor 2.27 2.03 4.1 1.85 1.83 2.2 1.91 -0.7 0.0 1.79 2010 2011 2012 2013 2014 2015 2016 2017 -1.5 1.69 1.65 -4.0
Slide 9: Market of Aerial Platforms and Handlers in Brazil
From the beginning of the crisis in 2014, the Rental capacity market size hasn’t changed much what can signaled opportunities for the recovery of utilization rates and price Market of Aerial Platforms and Handlers in Brazil 31 31 30 31 27 20 15 9 5 6 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 10: Financial Profile
Corporate Presentation and 4Q17 Results 1 Company Overview 2 Market Outlook 3 Financial Profile 10 Corporate Presentation and 4Q17 Results
Slide 11: Retrospective and Actions to Recovery
• 2010: IPO • 2013: Peak Retrospective and Actions to Recovery • 2017: Present Recovery driven by Rental Impact of the economic crisis Actions to Recovery business unit Net Revenue Cost Efficiency Gains(1) Adj. EBITDA (1) – Construction Decrease of 37% 188.0 60.0% 1100.0 Decrease of 65% 450.0 1000.0
Slide 12: Summary Financials
Summary Financials In R$ million Net Revenue per Type Net Revenue per Segment 900.0 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 800.0 56.8 50.4 700.0 101.3 80.5 39.9 600.0 37.8 258.0 212.4 500.0 64.1 27.6 53.9 238.0 400.0 34.5 117.2 30.1 36.8 217.0
Slide 13: Utilization Rate and Main works
Utilization Rate and Main works Construction – Utilization Rate Main works in the 4Q17 100% 90% North and Northeast 80% UTE Porto de Sergipe I – SE 70% Salvador’s Subway (Line 2) – BA 60% Water’s Belt – CE 50% ETE Cabanga – PE 40% 30% Average LTM 4Q17 = 37.5% 20% 10% 0% Rental – Utilization
Slide 14: Summary Financials
Summary Financials In R$ million EBITDA¹ - Mills 60.0% 430.0 51.4% 384.7 48.5% 50.0% 380.0 47.5% 47.0% 343.8 327.5 40.0% 330.0 45.3% 31.8% 30.0% 280.0 230.0 217.4 20.0% 168.4 174.1 12.9% 10.0% 180.0 130.0 0.0% -4.5% -10.0% 45.7 80.0 30.0 -20.0% -30.0% 2010 2011 2012 2013 2014 2015 2016 2017 (11.4) (
Slide 15: Non-recurring items
Non-recurring items Number of branches evolution: Non-recurring items¹ = Rental Construction 2014 2015 2016 2017 2014 2015 2016 2017 Restructuring Expenses related to Mills Branches 32 34 31 30 17 17 14 7 Expenses Industrial Services¹ business unit South Region Curitiba 51 51 51 51 51 51 51 2 Porto
Slide 16: Summary Financials
Summary Financials In R$ million Costs and Expenses Net Profit (Loss) 900 167 800 622 152 560 585 700 516 515 42 481 103 600 402 424 38 92 11 16 21 11 500 64 2 14 209 232 203 400 164 180 180 300 125 172 200 276 340 335 348 344 314 290 100 238 2010 2011 2012 2013 2014 2015 2016 2017 0 2010¹ 2011¹ 201
Slide 17: We remain vulnerable to the macroeconomic scenario and client finances
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 10.9% confession of indebtedness. 78.2% 75.2% 76.4% 74.1% 73.9% 70.5% 72.0%
Slide 18: Consolidated – PP&E of the Rental business unit
Consolidated – PP&E of the Rental business unit Divestment of Scheduled until Total Realized 2017 2Q2018 telescopic handlers Quantity 170 102 68 Sale of some aerial Scheduled until platforms with more Total Realized 2017 1Q2018 than 7 years of use Quantity 60 57 3 and high rate of idleness Cash Impa
Slide 19: Indebtedness
Indebtedness In R$ million The weighted average maturity of our debt is 2.1 years at a cost of CDI+2.1% on December 30, 2017. Gross Debt Profile Principal Amortization Schedule 218.3 41.8% 106.2 106.2 58.2% 38.9 Cash/Related bank 2018 2019 2020+ deposits Short Term Long Term Related bank deposits
Slide 20: Debt Indicators
Debt Indicators In R$ million Adjusted Operating Cash Flow* / Financial Result Net Debt / Adjusted Operating Cash Flow* 5.0 3.0 4.9 3.8 3.5 2.7 2.0 2.3 2.3 2.2 1.4 0.9 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Debentures Covenants: (1) LTM Adjusted Operating Cash Flow*/Financial result >=
Slide 21: Financial Summary
Financial Summary In R$ million 2010¹ 2011¹ 2012¹ 2013¹ 2014² 2015³ 2016 20174 % Part Net Revenue Consolidated 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 100.0% Construction 259.4 287.4 412.0 474.9 423.4 283.0 182.3 110.0 37.8% Rental 95.1 175.4 253.5 357.3 370.8 293.2 214.3 181.3 62.2% Adjuste
Slide 22: 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