1q15 presentation of results
DESCRIPTION
1Q15 Presentation of ResultsTRANSCRIPT
May 7th. 2015
Presentation of 1Q15 Results
2
Financial Performance1
¹ Reclassified excluding the Industrial Services business unit. for comparison
² ROIC: Return on Invested Capital.
³ Excluding non-recurring items of R$ 21.7 million of net earnings and R$ 14.5 million of EBITDA in 2014. of which R$ 12.3 million in 3Q14
Presentation of 1Q15 Results – 05/07/2015
In R$ million
1Q15/1Q14 1Q15/4Q14 LTM1Q15/2014³ CAGR 11-14³
Net revenue -21% -10% -6% 20%
EBITDA -56% -15% -21% 17%
Net earnings -143% 133% -72% -4%
207.8213.0
191.5 191.5181.9
163.9
107.5 105.9
66.779.0
55.647.4
33.9 33.4
3.211.3
-6.2-14.5
48.7% 49.7%
34.8%
41.3%
30.6%28.9%
12.3%9.4% 9.9%
6.6%4.0%
1Q14 2Q14 3Q14 3Q14³ 4Q14 1Q15
Net revenue EBITDA Net earnings EBITDA margin (%) ROIC²
665.5
832.3794.2 794.2
750.2
339.0
403.1
335.7 350.2
275.6
151.5172.6
64.3 81.7
23.0
50.9%48.4%
42.3%44.1%
36.7%
14.7% 14.1%
6.6% 6.6%4.0%
2012 2013 2014 2014³ LTM1Q15
Rental81%
Technical assistance
1%
Sales11% Others
7%
Per service type
Heavy Construction
31%
Real Estate20%
Rental49%
Per business unit
Net revenue totaled R$ 163.9 million in 1Q15
3 Presentation of 1Q15 Results – 05/07/2015
4
EBITDA reduction of R$ 8 million qoq
55.6 8.2
8.7
1.1 2.1 0.9 6.0
4.7 2.1
47.4
0
10
20
30
40
50
60In R$ million
Change in EBITDA
Presentation of 1Q15 Results – 05/07/2015
5
G&A¹ dropped 8.9% qoq, corresponding to an annualized
change of R$ 14 million
52 2 1.61.0 1.1 48.5
0
10
20
30
40
50
60
G&A¹ 4Q14 Third parties Personnel Travel Others G&A¹ 1Q15
In R$ million
Change in G&A1
Presentation of 1Q15 Results – 05/07/2015
1Excluding depreciation and allowance for doubtful debt
ADD reached 12.8% of net revenue in 1Q15
0.3%
1.7% 2.1%2.0%
5.3%
12.8%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
2010 2011 2012 2013 2014 1Q15
2010-2014 average = 2.3%
As % of Revenues
Changes in allowance for doubtful debts (ADD)
6.8%
Ex-clients under
investigation
6 Presentation of 1Q15 Results – 05/07/2015
4.2%
Positive cash flow of R$ 70 million in 1Q15, reaching R$ 200
million in the last twelve months
7
(340)
(219)
(31)
(154)
116
(13)
11
74 45
70
(400)
(300)
(200)
(100)
-
100
200
2010 2011 2012 2013 2014 1Q14 2Q14 3Q14 4Q14 1Q15
Free cash flow1
1 Net cash generated by the operating activities minus net cash applied in investment activities
Presentation of 1Q15 Results – 05/07/2015
Free cash flow enabled reduction of 10% of net debt qoq
8
745.4 41.27.8 712.0 193.7
41.28.8
49.3 21.1 498.0
0
100
200
300
400
500
600
700
800
Presentation of 1Q15 Results – 05/07/2015
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
9 Presentation of 1Q15 Results – 05/07/2015
1.5x 1.5x 1.5x
1.6x
1.8x
1.6x
1Q14 2Q14 3Q14 4Q14 1Q15 1Q15
8.0x
7.1x
6.1x
5.2x
4.0x
4.5x
1Q14 2Q14 3Q14 4Q14 1Q15 1Q151 1
1Excluding R$ 40.1 million of non-recurring items from LTM EBITDA.
Rental – Financial Performance
10
1 ROIC: Return on Invested Capital.
In R$ million
Presentation of 1Q15 Results – 05/07/2015
1Q15/1Q14 1Q15/4Q14 LTM1Q15/2014 CAGR 11-14
Net revenue -18% -5% -5% 28%
EBITDA -41% 4% -12% 28%
97.3 98.6
91.0
83.979.6
58.455.1
50.0
33.2 34.4
60.1%
55.8% 54.9%
39.6%43.3%
17.8% 16.2%14.5% 11.5%
8.8%
1Q14 2Q14 3Q14 4Q14 1Q15
Net revenue EBITDA EBITDA margin (%) ROIC¹
253.5
357.3370.8
353.1
141.2
201.2 196.7
172.7
55.7% 56.3%53.0%
48.9%
18.2%18.2%
11.5%8.8%
2012 2013 2014 LTM1Q15
Utilization rate dropped in 1Q15 with the slowdown in the Oil
and Gas sector
11
Changes in revenue
in R$ million
Source: Mills
83.9
3.1 0.7 1.9
79.6
0
10
20
30
40
50
60
70
80
90
4Q14Revenues
Rentedvolume
Price andmix
Otherrevenues
1Q15Revenues
Utilization Rate
In %
0%
20%
40%
60%
80%
100%
LTM 1Q15 average = 61%
Presentation of 1Q15 Results – 05/07/2015
Rental87%
Sales of new equipment
5%
Sales of semi-new equipment
5%
Others3%
Net revenues per type of serviceIn 1Q15
Construction sector remains the main user of Mills’
motorized access equipment
12 Presentation of 1Q15 Results – 05/07/2015
Construction66%
Industry15%
Spot19%
Rental revenue by useIn 1Q15
In R$ million
Heavy Construction – Financial Performance
13
1 ROIC: Return on Invested Capital.
Presentation of 1Q15 Results – 05/07/2015
1Q15/1Q14 1Q15/4Q14 LTM1Q15/2014 CAGR 11-14
Net revenue 0% -3% 0% 17%
EBITDA -50% -21% -14% 15%
51.0
55.5
51.9 52.551.1
25.6 25.6
21.4
16.3
12.9
50.2%
46.2%
41.2%
31.0%
25.3%
17.9% 16.3%
13.3%
7.0%
1Q14 2Q14 3Q14 4Q14 1Q15
Net revenue EBITDA EBITDA margin (%) ROIC¹
174.1
217.0211.0 211.1
84.3
108.1
88.9
76.2
48.5% 49.8%
42.1%
36.1%
17.2%
19.2%
9.9%7.0%
2012 2013 2014 LTM1Q15
Reduction of rental revenues was partially offset by larger sales
revenues. technical assistance and indemnities
14
Change in revenue
in R$ million
Source: Mills
52.5
3.8
3.25.6
51.1
0
10
20
30
40
50
60
4Q14Revenues
Rentedvolume
Price andmix
Otherrevenues
1Q15Revenues
Utilization Rate
In %
0%
20%
40%
60%
80%
100%
LTM 1Q15 average = 65%
Presentation of 1Q15 Results – 05/07/2015
15
Breakdown of 1Q15 rental revenue
Public40%
Private52%
PPP9%
Source of funds
Industry40%
Heavy Construction51%
Others10%
Per sector
Presentation of 1Q15 Results – 05/07/2015
Real Estate – Financial Performance
16
¹ Excluding non-recurring effects of R$ 14.5 million in 2014. of which R$ 12.3 million was in 3Q14.
² ROIC: Return on Invested Capital
In R$ million
Presentation of 1Q15 Results – 05/07/2015
1Q15/1Q14 1Q15/4Q14 LTM1Q15/2014 CAGR 11-14
Net revenue -44% -27% -12% 11%
EBITDA -100% -99% -18% -9%
59.5 58.8
48.6 48.645.4
33.2
23.525.2
-4.7
7.76.1
0.1
39.4%42.8%
-9.6%
15.7%13.5%
0.2%6.7% 6.5%
2.1%3.8% 0.4%
-3.3%
1Q14 2Q14 3Q14 3Q14¹ 4Q14 1Q15
Net revenue EBITDA EBITDA margin (%) ROIC²
238.0
258.0
212.4 212.4
186.1
113.4
93.8
50.164.6
41.2
47.7%
36.4%
23.6%
30.4%
22.1%
15.7%
8.1%
0.4% 2.5%
-3.3%
2012 2013 2014 2014¹ LTM1Q15
Utilization rate in 1Q15 continued the downward trend, which
began in 4Q13
17
Change in revenue
in R$ million
Source: Mills
45.4
4.2
3.4
4.6
33.2
0
5
10
15
20
25
30
35
40
45
50
4Q14revenues
Rentedvolume
Price andmix
Otherrevenues
1Q15Revenues
Utilization rate
In %
0%
20%
40%
60%
80%
100%
LTM 1Q15 average = 55%
Presentation of 1Q15 Results – 05/07/2015
18 Presentation of 1Q15 Results – 05/07/2015
Residential52.7%
Commercial34.7%
Others12.6%
Rental revenue per segmentIn 1Q15
Breakdown Real Estate rental revenues
26% of rental revenues in 1Q15 came from listed companies
19
2.9
3.7
2.7
3.2
4.4
1.7
26.2%
-26.4%
18.4%
35.3%
-61.1%-65%
-45%
-25%
-5%
15%
35%
55%
75%
95%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
1Q10 1Q11 1Q12 1Q13 1Q14 1Q15
Var.
(%
)
La
un
ch
es (
in R
$ m
illio
n)
1 Cyrela. Even. Eztech Gafisa. Helbor. MRV. Rodobens and Tecnisa.
Source: Operational reports from companies and Mills
Total launches1
in R$ billion
Launches and sales declined in 1Q15, with possible negative
impact on construction activities throughout the year
3.8
4.1
3.6
3.9
4.2
3.3
9.9%
-13.0%
9.9%
6.9%
-21.4%
-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
1Q10 1Q11 1Q12 1Q13 1Q14 1Q15
Var.
(%
)
Sale
s (
in R
$ m
illio
n)
Total sales1
in R$ billion
Presentation of 1Q15 Results – 05/07/2015
