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November 5th, 2015
Presentation of 3Q15 Results
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2
• Since 3Q14, organizational structure was resized, with annualized personnel
savings estimated at R$ 24 million per year¹
• Non-recurring layoff costs of R$ 3.1 million in 3Q15
Ricardo GusmãoCommercial Officer
for Construction
Avelino GarzoniEngineering and
OperationsOfficer
Marcelo YamaneRental Officer
Frederico NevesCFO and IRO
Deise VieiraHuman Resources
Officer
Sérgio KariyaCEO
Changes in the organization structure
¹Excluding costs with layoffs
Organization structure as of September 2015:
Construction
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3 Presentation of 3Q15 Results – 11/05/2015
• Market leader with more than 60 years ofexperience
• Focus on: infrastructure projects, industrial,residential and commercial construction works.
• Products: engineering solutions and rental offormworks and shoring
• Services: planning, designing, technicalsupervision, equipment and related services
• Clients:
Construction
• Market leader; started in 2008
• Focus on: civil construction. Industry, retail eothers
• Products: rental and sale of motorized accessequipment, such as aerial work platforms andtelescopic handlers
• Elected "Best Company for Access of the Year"by the International Awards for Powered
Access (IAPA Awards) for the year of 2011
Rental
Adjustments aiming to increase synergies between HeavyConstruction and Real Estate operations and markets
The consolidation of the two business units have generated the “Construction” business unit
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¹ Reclassified excluding the Industrial Services business unit for comparison. It does not exclude non recurring items.
4
Financial Performance1
Presentation of 3Q15 Results – 11/05/2015
In R$ million
3Q15/3Q14 3Q15/2Q15 LTM3Q15/2014 CAGR 12-14
Net revenue -29% -8% -21% 9%
EBITDA -47% -33% -41% 0%
Net earnings n.a. 110% n.a. -35%
191.5181.9
163.9
147.9136.5
66.7
55.6 47.4 52.1
35.1
3.2
-6.2-14.5
-8.2-17.2
34.8%
30.6%28.9%
35.3%
25.7%
9.4%
6.6%
4.0%2.0%
0.8%
3Q14 4Q14 1Q15 2Q15 3Q15
Net revenue EBITDA Net earnings EBITDA margin (%) ROIC
665.5
832.3794.2
630.1
339.0
403.1
335.7
190.3151.5
172.6
64.3
-46.1
50.9%
48.4%
42.3%
30.2%
14.7%
14.1%6.6%
0.8%
2012 2013 2014 LTM3Q15
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91.074.5 68.7
51.9
41.8 41.2
48.6
31.626.5
191.5
147.9136.5
3Q14 2Q15 3Q15
Per business unit
R$ Million
Rental Heavy Construction Real Estate
Net Revenue Breakdown
5 Presentation of 3Q15 Results – 11/05/2015
161.4125.9 116.0
19.1
12.310.2
11.0
9.610.3
191.5
147.9136.5
3Q14 2Q15 3Q15
Per service type
R$ Million
Rental Sales Technical assistance and Others
3Q15/3Q14 3Q15/2Q15
Rental -28.1% -7.9%
Sales -46.7% -17.5%
Technical assistance and others -6.8% 6.6%
Total -28.7% -7.7%
3Q15/3Q14 3Q15/2Q15
Rental -24.5% -7.7%
Heavy Construction -20.6% -1.5%
Real Estate -45.4% -16.0%
Total -28.7% -7.7%
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6
Sales of semi-new equipment totaled R$ 20.5 million in 9M15
0
5
10
15
20
25
30
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15
Sales of semi-new equipment Sales of new equipment
In R$ million
Equipment sales
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35.6
0.4 1.8
33.425.0
0.7 1.4
22.9
65.3
2.6 8.1
59.8
2Q15 Volume Priceand Mix
3Q15 2Q15 Volume Priceand Mix
3Q15 2Q15 Volume Priceand Mix
3Q15
Evolution in Net Revenue per business unit
7 Presentation of 3Q15 Results – 11/05/2015
Net Revenue Evolution
In R$ million
HeavyConstruction
Real Estate Rental
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Rental
0%
20%
40%
60%
80%
100%
0%
20%
40%
60%
80%
100% Construction
LTM 3Q15 average = 61.6%LTM 3Q15 average = 52.3%
Presentation of 3Q15 Results – 11/05/2015
Utilization rate dropped in Construction and increased inRental
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Heavy Construction - Rental revenue breakdown in 3Q15
Industry12%
Infrastructure75%
Others13%
Per sector
R$ 33.4 million
Presentation of 3Q15 Results – 11/05/2015
Public47.8%
Private36,8%
PPP15.4%
Source of funds
R$ 33.4 million
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Central West and South
BR 163 highway -MT
São Manoel Hydroelectric powerplant
Colíder Hydroelectric powerplant
10
Important construction Works with Mills participation
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States wtih Mills’ presence
North e Northeast
Vale’s S11D project
Votorantim’s cement factory
Transposition of São Francisco river
Companhia Siderúrgica do Pecém
steel mill
Transnordestina Railroad
Beira-Mar set Salvador subway
Southeast
Jirau Hydroelectric
power plant Gold Monorail Line
North Beltway
Subway line 5 – SP
Olympic Park
Subway line 4 - RJ
Galeão Airport
Joá Elevated road
duplication - RJ CSN project
Gerdau project
Duplication of BR 381
Rio Manso watertreatment center
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Residential49%
Commercial39%
Others12%
Rental revenue per segment
R$ 22.9 million
Real Estate - Rental revenue breakdown in 3Q15
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4.6
5.2
4.03.7
2.9
2.611.9%
-22.6%
-7.6%
-21.1%
-12.7%
-65%
-45%
-25%
-5%
15%
35%
55%
75%
95%
-
1.0
2.0
3.0
4.0
5.0
6.0
3Q10 3Q11 3Q12 3Q13 3Q14 3Q15
V a r . ( % )
L a u n c h e s ( i n R $ b i l l i o n )
1 Cyrela, Direcional, Even, Gafisa, Helbor, MRV and Rodobens.
Source: Operational reports from companies and Mills
Total launches1
in R$ billion
Launches and sales continued to decline in 3Q15
4.1
4.54.4
4.2
3.4 3.3
9.2%
-2.0% -4.0%
-19.9%
-2.2%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
3Q10 3Q11 3Q12 3Q13 3Q14 3Q15
V a r . ( % )
L a u n c h e s ( i n R $ b i l l i o n )
Total sales1
in R$ billion
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Construction sector remains the main user of Mills’
motorized access equipment
13
Construction72%
Industry19%
Spot9%
Rental revenue by useIn 3Q15
Rental85%
Technical Assitance
2%
Sales7%
Others6%
Net revenues per type of serviceIn 3Q15
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14 Presentation of 3Q15 Results – 11/05/2015
25.513.2 14.5 15.6 11.4 9.8
38.2
38.2 37.1 31.5 37.1 39.4
63.6
51.4 51.547.1 48.5 49.2
3Q14 3Q14¹ 4Q14 1Q15 2Q15 3Q15
Execution of works and warehouseSales and write-off of assets
3Q15/3Q14 3Q15/3Q14* 3Q15/2Q15
Sales and write-off of assets -61,4% -25,4% -13,8%
Execution of works and warehouse 3,2% 3,2% 6,1%
COGS total, ex-depreciation -22,7% -4,3% 1,4%
1 Excluding non-recurring effects of R$ 12.3 million
Personnel41%
Material25%
Sales14%
Write-offof Assets
6%
Freights8%
Others6%
3Q15
Evolution of COGS, ex-depreciation
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20.5
0.4 1.2 0.7
22.1
COGS, exdepreciation
2Q15
Sales and Assetwrite-offs
Maintenance Freight COGS, exdepreciation
3Q15
28.0
1.2 0.3 1.0 1.2 0.2
27.1
CPV, exdepreciação
2T15
Vendas ebaixas de
ativos
Pessoal Manutenção Fretes Outros CPV, exdepreciação
3T15
COGS, ex-depreciationR$ million
15 Presentation of 3Q15 Results – 11/05/2015
Evolution of COGS, ex-depreciation, per business unit
Construction
Rental
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16 Presentation of 3Q15 Results – 11/05/2015
41.3 37.7 34.4 31.5 31.2
9.89.9
10.010.9 11.3
1.4 5.03.7 2.9 1.7
52.5 52.648.2
45.3 44.3
3Q14 4Q14 1Q15 2Q15 3Q15
Changes in G&A , ex-depreciation and ADD
Commercial, Operating and Administrative General Services Other Expenses
Commercial, Operating and Administrative G&A were 25%lower yoy.
3Q15/3Q14 3Q15/2Q15
Commercial, Operating e Administrative -24.3% -0.7%
General Services 15.6% 3.5%
Other Expenses 20.1% -41.4%
SG&A total, ex-depreciation and ADD -15.6% -2.3%
1 G&A corresponds to the sum of Rental and Construction business units
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ADD reached 5.9% of net revenue in 3Q15
17
0.3%
1.7% 2.1%2.0%
5.3%
12.8%
1.2%
5.9%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
2010 2011 2012 2013 2014 1Q15 2Q15 3Q15
2010-2014 average = 2.3%
As % of net revenues
Changes in allowance for doubtful debts
(ADD)
6,8%
Ex clients under investigation
4,2%5,9%
-0,8%
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EBITDA impacted by non-recurring effects of R$ 3.4 million
52.1
1.5 11.3
1.5 0.2 1.8 6.0
1.6
35.1
0
10
20
30
40
50
60In R$ million
Changes in EBITDA
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Construction – Financial Performance¹
19
3Q15/3Q14 3Q15/2Q15 LTM3Q15/2014 CAGR 12-14
Net revenue -33% -8% -24% 1%
EBITDA -48% -32% -59% -18%
Presentation of 3Q15 Results – 11/05/2015
¹ It does not exclude non recurring items.
100.598.0
84.3
73.467.7
16.7 22.413.0 12.7
8.716.6%
22.9% 15.4%17.3%
12.8%
4.4%1.2%
-2.2% -3.1%
3Q14 4Q14 1Q15 2Q15 3Q15
Net revenue EBITDA EBITDA margin (%) ROIC
412.0
474.9
423.4
323.4
197.7 201.9
139.0
56.8
48.0%
42.5%
32.8%
17.6%
4.4%
-3.1%
2012 2013 2014 LTM3Q15
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Rental – Financial Performance¹
20
In R$ million
3Q15/3Q14 3Q15/2Q15 LTM3Q15/2014 CAGR 12-14
Net revenue -24% -8% -17% 21%
EBITDA -47% -33% -32% 18%
Presentation of 3Q15 Results – 11/05/2015
¹ It does not exclude non recurring items.
91.0
83.979.6
74.5
68.7
50.0
33.2 34.439.4
26.4
54.9%
39.6%
43.3%
53.0%
38.4%
14.5%
11.5% 8.8%7.4%
5.2%
3Q14 4Q14 1Q15 2Q15 3Q15
Net revenue EBITDA EBITDA margin (%) ROIC¹
253.5
357.3370.8
306.7
140.8
207.0196.7
133.5
55.6%57.9%
53.0%
43.5%
18.2% 18.2%
11.5%
5.2%
2012 2013 2014 LTM3Q15
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159
199
296
384 373
310
79102 105
86 9268 65
-209
-357
-31
-154
116
207
-13
11
7445
7037 55
Adjusted¹ operational cash flow and free² cash flow
R$ million
Adjusted¹ operational cash flow Free² cash flow
Cash generation
21
¹ Before the interest paid and increased by the receipts from asset and intangible sales.
² Net cash generated by the operating activities minus net cash applied in investment activities
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193
174 150
106 106
38
Cashposition
2016 2017 2018 2019 2020
Principal amortization scheduleIn R$ million
57447 193
428
Principal Interests CashPosition
Net Debt
Debt, as of September 30, 2015In R$ million
Debt profile
22
Credit lines avaiable¹,2
Used R$ 15.9 million
Unused R$ 328.8 million
¹As of September 30, 20152 Unsecured overdraft account+ Secured bank credit lines
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Debt indicators
Net Debt/EBITDA
Debentures Covenants :
(1) EBITDA/net financial results higher than or equal to two; and
(2) Net Debt/EBITDA less than or equal to three.
EBITDA/Net financial results
23
1Excluding R$ 40.1 million of non-recurring effects from 1Q15 , R$ 44.9 million from 2Q15 and R$ 34.6 million from 3Q15
Presentation of 3Q15 Results – 11/05/2015
1.51.7
1.8
1.6
2.2
1.8
2.3
1.9
3Q14 4Q14 1Q15 1Q15¹ 2Q15 2Q15¹ 3Q15 3Q15¹
5.9
4.9
3.9
4.5
3.3
4.0
2.9
3.5
3Q14 4Q14 1Q15 1Q15¹ 2Q15 2Q15¹ 3Q15 3Q15¹
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Mills - Investor Relations
Tel.: +55 21 2123-3700
E-mail: [email protected]
www.mills.com.br/ri
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