23 slides from Mills Locacao Servicos E Logistica's earnings presentation, May 2018
Slide 1: Corporate Presentation and 1Q18 Results
Corporate Presentation and 1Q18 Results
Slide 2: Corporate Presentation and 1Q18 Results
Corporate Presentation and 1Q18 Results 1 Company Overview 2 Market Outlook 3 Financial Profile 2 Corporate Presentation and 1Q18 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 • We are currently the largest provider of infrastructure engineering solutions in Brazil and the largest aerial platform rental Company in Latin America. In 2017,
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 and Commercial Focus on Civil Construction, Industry, Retail and Others. projects. Sale and rental of concreting and shoring, providing Rental and sale of motorized access equipment, such as engineering solutions, services of tec
Slide 6: 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 7: 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 8: Market Outlook
Corporate Presentation and 1Q18 Results 1 Company Overview 2 Market Outlook 3 Financial Profile 8 Corporate Presentation and 1Q18 Results
Slide 9: 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 Better 2.27 7.5 4.0 1.9 3.2 2.03 3.0 2.5 4.1 1.0 2.2 0.5 0.0 1.85 1.83 1.91 1.79 2010 2011 2012-0.7 2013 2014 201
Slide 10: 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 indicate 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 11: Financial Profile
Corporate Presentation and 1Q18 Results 1 Company Overview 2 Market Outlook 3 Financial Profile 11 Corporate Presentation and 1Q18 Results
Slide 12: Retrospective and Actions to Recovery
• 2010: IPO • 2013: Peak Retrospective and Actions to Recovery • LTM1Q18: Present Recovery driven by Rental Impact of the economic crisis Actions to Recovery business unit Net Revenue Cost Efficiency Gains(1) 244,0 Adj. EBITDA (3) - Rental 70,0% Decrease of 63% Decrease of 42% 60,0% COGS SG&A 194,0
Slide 13: Summary Financials
Summary Financials In R$ million Net Revenue per Type Net Revenue per Segment 900,0 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 304.1 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 304.1 800,0 56.8 50.4 700,0 101.3 80.5 39.9 600,0 64.1 37.8 500,0 27.6 53.9 474.9 423.4 400,0 36.8 34.5 30.1 412.0
Slide 14: Utilization Rate and Main works
Utilization Rate and Main works Rental – Utilization Rate Main works in the 1Q18 100% North and Northeast 90% 80% Transposition of the Rio São Francisco river – PE 70% 60% Acauã Canal – PE 50% UTE Porto de Sergipe – SE 40% Subway Line 2 Salvador – BA Average LTM1Q18 = 55.8% 30% Shopping Pa
Slide 15: Summary Financials
Summary Financials In R$ million EBITDA¹ - Mills 480,0 60,0% 51.4% 430,0 47.5% 47.0% 48.5% 45.3% 50,0% 380,0 384.7 40,0% 31.8% 330,0 343.8 280,0 327.5 30,0% 230,0 180,0 217.4 12.9% 20,0% 130,0 168.4 174.1 10,0% -2.5% 80,0 -4.5% 0,0% 30,0 45.7 -10,0% (20,0) (11.4) (6.5) EBITDA¹ - Rental Business Unit
Slide 16: Non-recurring items
Non-recurring items Number of branches evolution²: Non-recurring items¹ = Restructuring Expenses related to Mills Expenses Industrial Services¹ business unit Expenses with closing and demobilization of branches. Resizing of equipment focused on the light real estate market (scrap result). Orga
Slide 17: Summary Financials
Summary Financials In R$ million Costs and Expenses Net Profit (Loss) 900 402.4 515.6 423.7 560.0 622.0 585.0 514.8 481.0 464.5 166.8 800 151.5 700 42.0 103.3 92.2 600 16.0 38.0 11.3 21.2 11.0 64.3 500 13.9 1.5 13.9 209.0 232.0 203.0 400 163.9 180.0 180.0 158.7 300 125.4 171.6 200 276.0 340.0 335.0
Slide 18: Historical ADD
Historical ADD Allowance for Doubtful Debts (ADD) Evolution Delinquency Evolution In % of total net revenue Affected by signed and not honored 10.9% confession of indebtedness. 2010-2014 Average: 75.2% 76.4% 74.1% 73.9% 78.2% 77.5% 72.0% 2.3% 70.5% 7.3% 6.6% 73.1% 73.6% 67.3% 70.0% 69.1% 67.3% 67.9%
Slide 19: Indebtedness
Indebtedness In R$ million The weighted average maturity of our debt on March 31, 2018 was 1.9 years at a cost of CDI+2.6% per year. Gross Debt Profile Principal Amortization Schedule 233.4 42.9% 105.4 106.2 38.9 57.1% Cash/Related bank 2018 2019 2020+ deposits Finame 3rd emission of Debentures -
Slide 20: Debt Indicators
Debt Indicators In R$ million Adjusted Operating Cash Flow* / Financial Result Net Debt / Adjusted Operating Cash Flow* 3.0 4.9 3.8 3.5 2.3 2.3 2.2 2.0 2.7 2.6 2.0 1.4 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 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 LTM1Q184 % Part Net Revenue Consolidated 354.5 462.8 665.5 832.3 794.2 576.1 396.6 291.3 304.1 100.0% Construction 259.4 287.4 412.0 474.9 423.4 283.0 182.3 110.0 112.2 36.9% Rental 95.1 175.4 253.5 357.3 370.8 293.2 214.
Slide 22: Notes
Notes Aerial Work Plataform - Spazio Residence Formwork and Shoring – Salvador`s Subway 22 Corporate Presentation and 1Q17 Results
Slide 23: 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