Presentation of 1Q16 Results

May 6, 2016

Disclaimer

This presentation may contain statements that present expectations of the Management of Mills Estruturas e Servios 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 information to which Mills currently has access. All statements, when based on future expectations, and not on historical
facts, involve various risks and uncertainties, and are not performance guarantees. Mills and employees cannot guarantee that such
statements will prove to be correct. Such risks and uncertainties include factors relating to the Brazilian economy, the capital markets, the
infrastructure, real estate, and oil and gas sectors, competitive pressures, among others, and governmental rules that are subject to
change without notice. For additional information on the factors that may give rise to results different from those estimated by Mills, please
consult the reports filed with the Securities and Exchange Commission - SEC.

Presentation of results for 1Q16 - 06/06/2016

Our Company
Complete in engineering products and services, in Brazil for more than 60 years.
With ability to plan, integrate services and products for the construction and industry
sectors. We invested in the professional qualification, together with diversified expertise,
to deliver fast, smart and reliable responses that increase the productivity of the
works and the results of our client.

National Coverage19 States and Federal District in 33 locations

Construction:

Focus on infrastructure, Industrial, residential e Commercial

projects. Engineering solutions, sales and rental of concreting and shoring,
providing services of technical planning, project and supervision related to
equipment.

Rental:

Rental and sale of motorized access equipment, such as aerial

working platforms and telescopic handlers to lift workers and cargos,
respectively.

Presentation of results for 1Q16 - 06/06/2016

Subsequent Events
Registration and payment of the capital increase: Subscription in the maximum amount of BRL 125 million, in

order to:
(i) strengthen the Company's capital structure; and
(ii) strengthen its liquidity levels.
Payment of the last amortization of the 1st Issuance of Debentures in the amount of BRL90 million.
Hiring of Gustavo Zeno as Mills new Financial Administrative and Investor Relations Director. Zeno has
experience in the Investor Relations, Corporate Finance, Structured Operations and Development of New
Business, including professional experience in Europe.

Presentation of results for 1Q16 - 06/06/2016

Current Scenario
The Program of Investment in Logistics of the Federal Government PIL awaits for investments of BRL198.4 billion,
being BRL69.2 billion until 2018 and the remainder as of 2019, the estimate for 2016 is: auction of 6 highways; 26
public ports terminals; 4 airportos (Porto Alegre, Florianpolis, Salvador and Fortaleza); and railways (route FNS Sul,
route FNS Norte and Ferrogro)
BNDES Disbursements

Main Indicators of the Sector

Brl billion

190.4

11.0%

187.8

168.4
156

6.0%
138.9

136.4

135.9

1.0%
2010

2011

2012

2013

2014

2015

2016E

2017E

90.9

-4.0%
64.9
-9.0%
18.1
-14.0%
Brazil
GDP
PIB Brasil

ICC

Civil
Constructioncivil
GDP
PIB Construo

IACI

2007

2008

2009

2010

2011

2012

2013

2014

2015

1T16
1Q16

ICC civil construction index

IACI measures the area under construction (in foundation, structure and finishing phase) of residential, commercial, tourism real estate works, and others, with national coverage.

Source: Tendncias, abril/ 2016, BNDES e www.logisticabrasil.com.br

Presentation of results for 1Q16 - 06/06/2016

Main Initiatives
In BRL million

Initiatives

ROIC Decomposition

Efforts to increase presence in the

Net Income
542.3

international market

COGS
(199.2)

Sales of assets aiming at to real estate

market
NOPAT
(55.2)
(15.3)

SG&A
(257.4)
(200.3)

Strengthen relationships with mid-sized

construction companies

depreciation:
(166.8)

Focus on non-construction markets for the

ROIC LTM
-3.8%
Adjusted -1.0%

IT (rate of 30%) 24.3

7.2
Rohr Dividends 1.5

Net Rental PP&E

972.9
Invested Capital
1,439.5
Others
466.6

Rental unit
Continuous search for operational efficiency
and cost reduction
Closing of five branches of the Construction
unit in progress

ROIC = NOPLAT/Average Invested Capital

Excluding impairment (BRL57.1 million) from NOPAT including PDD in the amount of BRL 26.3 million

Presentation of results for 1Q16 - 06/06/2016

Consolidated - Financial Performance

In BRL million

Costs and Expenses

Net Income
180.0

157.9
163.9

160.0
140.0

116.5

130.1

127.9

100.8
7.4

101.1

7.4

48.5

46.4

46.4

37.7

47.1

47.1

47.1

54.4

21.0

120.0
100.0

-20.6%

80.0

57.1
9.1

60.0
1.7%

40.0
20.0

1T15
1Q15

0.0
-20.0

1Q15
1T15

4T15
4Q15

1T16
1Q16

47.3

21.1%

30.0

27.0

-10.0
-30.0
-50.0

1T15
1Q15

4Q15*
4T15*
adjusted

-30.1

1Q16
1T16

29.0

1T16
1Q16

20.0%

0.0

-10.0

10.0%

-20.0

0.0%

-30.0

1T15
1Q15

4T15
4Q15

4Q15*
4T15*
adjusted

-14.5
-20.2

1T16
1Q16

-17.8

-40.0

-10.0%

-50.0

-20.0%

-60.0

-57.9

-70.0

-23.5%
Ebitda
Ebitda

4Q15*
4T15* adjusted
PDD
Impairment
ADD

10.0

22.3%

10.0
4Q15
4T15

SG&A

Net profit

Ebitda and Ebitda Margin

50.0

4Q15
4T15
CPV
COGS

Margem
Ebitda
Ebitda Margin

-30.0%

* Desconsidering Impairment of BRL 57.1 million

Presentation of results for 1Q16 - 06/06/2016

Consolidated - EBITDA Amounted BRL 29.0 million

In BRL million

Ebitda Evolution

27.1

2.2

7.3

8.7

1.7

29.0

(30.1)

Ebitda 4Q15
4T15
Ebitda

Ebitdaex.
ex.Impairment
Impairment
Ebitda

Receita
Lquida
Net
Revenue

CPV
COGS

G&A
G&A
exex-PDD
Impairment

Costs and Expenses

Presentation of results for 1Q16 - 06/06/2016

PDD
ADD

Ebitda
Ebitda 1Q16
1T16

Consolidated - Free Cash Flow

In BRL million

Even on an adverse scenario, the Company remains generating free cash flow

Cash Flow

383.7

372.7

295.5

288.3

281.9

198.9
158.9
116.1

2010

2011

2012

-31.2

2013

80.8

2014

2015

79.5

2016

-154.3
-208.9

-356.5
Fluxo
de caixa
operacional
ajustado
Adjusted
Operating
Cash Flow

Fluxo
de caixa
livre ajustado
Adjusted
Free Cash
Flow2

Before interests paid referring to debentures and investment in rental.

Before interests paid referring to debentures

Presentation of results for 1Q16 - 06/06/2016

Consolidated - Financial Performance

In BRL million

Due to the reduction of the investments and assets sales, the average capital invested tends to fall, since it illustrates the
average in the period.
ROIC (LTM)

1,900.0
1,700.0

1,661.8
4.0%

6.0%
1,617.7
2.0%

1,500.0
517.8

1,300.0

507.9

1,562.5

4.0%
1,505.8

1,144.0

1,109.9

900.0

2.0%

485.1
0.8%

1,100.0

1,439.5

496.1

0.0%

466.6
-2.9%

1,066.5
1,020.7

700.0

-2.0%

-3.8%

-4.0%
972.9

-6.0%

500.0
300.0

-8.0%

100.0

-10.0%

-100.0

1Q15
1T15

2T15
2Q15

Capital
- imobilizado
de PP&E
locao lquido
Averageinvestido
investedmdio
Capital
Net Rental

3T15
3Q15

4T15
4Q15

Capital
- outros
Averageinvestido
Investedmdio
Capital
- others

-12.0%

1T16
1Q16

ROIC

Invested Capital: is defined as the sum of the equity plus third parties capital (including all onerous, bank and nonbank debts) being both the average amounts in the last thirteen months.

10

Presentation of results for 1Q16 - 06/06/2016

Consolidated Net Income Breakdown

In BRL million

Per type

Per Business Unit

163.9

163.9
13.6

33.2

11.3
6.7

130.1

127.9

21.9

25.9

127.9
4.4
4.9
8.6

130.1
9.0
2.1

51.1

29.2
31.8

31.6

132.4
110.0
79.6

1Q15
1T15
Rental

Rental

11

70.3

76.4

4Q15
4T15

1Q16
1T16

Infraestrutura
Heavy
Construction

Edificaes
Real Estate

1T15
1Q15
Locao
Rental

1Q16/1Q15

1Q16/4Q15

-4.0%

8.6%

Infrastructure

-37.8%

0.6%

Buildings

-34.0%

-15.5%

Total

-20.6%

1.7%

Presentation of results for 1Q16 - 06/06/2016

89.6

Vendas
deequipment
Seminovos
Semi
new
sales

4T15
4Q15

1T16
1Q16

Vendas
de Novos
New equipment
Sales

Assistncia
Tcnica
e Outras
Technical support
and
others

1Q16/1Q15

1Q16/4Q15

Rental

-32.3%

-18.5%

Sales

75.2%

132.1%

Technical support and others

-33.3%

106.5%

Total

-20.6%

1.7%

Consolidated Utilization Rate and Net Revenue

In BRL million

Physical Utilization Rate

100%

Net Revenue
Construction

90%
80%
50.3

70%

4.2
6.3

60%

39.7

50%
Average LTM 1Q16 = 47.9%
40%
30%
20%
10%
0%
1T10 3T10
1T13
3T13
1T14
3T14
1T151Q15
3T153Q15
1T16
1Q10
3Q10 1T11
1Q11 3T11
3Q111T12
1Q123T12
3Q12
1Q13
3Q13
1Q14
3Q14
1Q16
100%

4T15
4Q15

Volume
Volume

Preoand
e Mix
Price
Mix

1T16
1Q16

Rental

90%
59.7
80%

5.8

4.0
49.9

70%
60%
Average LTM 1Q16 = 6.,6%
50%
40%
30%
20%

10%
0%

12

1T10 3T10
3T13
1T14
3T14
1T151Q15
3T153Q15
1T16
1Q16
Price
Mix
1Q10
3Q10 1T11
1Q11 3T11
3Q111T12
1Q123T12
3Q121T13
1Q13
3Q13
1Q14
3Q14
Volume
4T15
Preoand
e Mix
1T16
4Q15
1Q16
(*) Non segmentation of the utilization fee in the business unit Construction because the inventory of the equipment used in Buildings and Infrastructure are shared
Volume: variation of the income due to the volume leased in tons (Construction) and quantity of machines(Rental)
Price and Mix: variation of the income revenue due to the variation of rental prices and products mix.
Presentation of results for 1Q16 - 06/06/2016

Consolidated - CPV
In BRL million

CPV is composed by the new and semi-new equipment sales cost, assets write-off and performance of works and

deposit
Execution cost and deposit

Sales cost and assets write off

66.6%

30.0

61.8%

52.4%

25.0

24.1
3.1
1.5

20.0
15.6

15.0
4.7

10.0

10.7
1.9

7.9

19.5

3.1

5.0
3.0

0.0

1T15
1Q15

5.6

50.0
70.0%
45.0
60.0%
40.0
50.0%
35.0
40.0%
30.0
25.0
30.0%
20.0
20.0%
15.0
10.0%
10.0
0.0%
5.0

40.0%
28.5%
23.3%

19.2%

36.4
4.6
2.4

31.5
2.7
2.3

9.7
9.3

1T16
1Q16

Baixa de Ativos
Semi-new
equipment sales cost
Custos
de vendas
de novos
New
equipment
sales
cost
Custos Write-off
de vendas de seminovos
Assets
Custo cost
de vendas
+ Baixa
/ Receita
Liquida
de vendas + indenizaes
Sales
+ assets
write de
off Ativos
/ Net sales
evenue
+ indemnities

30.3

10.0%

3.2
2.3

0.0%

9.2

19.7

17.1

-30.0%
15.6

-40.0%
-50.0%

1T15
1Q15

4T15
4Q15

1T16
1Q16

Others
Outros

Frete
Freight
Material
construo/manuteno
e reparo
Costs
of job
execution/Equipment storage

% Net
Receita
Lquida Total
%
Revenue

The new equipment sales cost is tied to the income with new equipment sales.

The new equipment sales cost is tied to the income with semi-new equipment sales, and it is equivalent to the write off of these PP&E (residual cost).

Assets write off cost is tied to the income with Indemnities, this value is the cost to write off the indemnified asses in our PP&E.

Presentation of results for 1Q16 - 06/06/2016

-10.0%
-20.0%

Personnel
Pessoal

13

20.0%

-10.0%
0.0
4T15
4Q15

30.0%

Consolidated - SG&A
In BRL million

SG&A ex. impairment , presented reduction of 18.7% comparing to the previous quarter
103.5

110.0
90.0

57.1

70.0
50.0

48.5
4.0
10.0

7.3
10.7

37.7

34.4

28.4

22.0

1T15
1Q15

4T15
4Q15

1T16
1Q16

30.0

10.0
-10.0

Comercial, Operacional
Administrativo
Commercial,
Operationaleand
Administrative

7.0
8.7

Servios
Gerais
General Services

Outras
Despesas
Other Expenses

1Q16/1Q15

1Q16/4Q15

Commercial, Operational and Administrative

-36.1%

-22.5%

General Services

-13.6%

-18.9%

Other Expenses

76.8%

-3.4%

SG&A total, ex-depreciation and PDD

-22.2%

-63.6%

14

Impairment

Presentation of results for 1Q16 - 06/06/2016

Including the expenses with the Industrial Services business unit sold in 2013

Construction
Heavy
Construction

Real Estate

Business Unit - Construction

Construction - Financial Performance

In BRL million

Net Income
84.3
-36,6%
33.2

57.5

53.7

-6,7%
25.9

21.9

51.1
31.8

31.6

1Q15
1T15

4Q15
4T15

Costs and Expenses

100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0.0

90.6

71.3

6.1

32.0

27.8

26.5
1T15
1Q15

Edificaes
Real
Estate

CPV
COGS

12.0

15.4%

15.0%

10.0
8.0
7.7%
4.1

6.0
4.0

10.0%
5.0%

2.0
0.0
-2.0

1Q16
1T16

4Q15
4T15

1Q15
1T15

0.0%

-3.7%
-2.1

-4.0
Ebitda

-5.0%
Margem
Ebitda
Ebitda Margin

1,000.0
900.0
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0.0

Presentation of results for 1Q16 - 06/06/2016

1T16
1Q16
Impairment

10.0%

1.2%

0.0%

-8.6%

-9.8%

214.2

200.4

245.7

-10.0%
-20.0%

555.8

-30.0%
502.4

481.3

-40.0%
-50.0%
1T15
1Q15

4T15
4Q15

1T16
1Q16

Capital investido
- outros
Average
investedmdio
Capital
Net Rental PP&E
Capital
- imobilizado
de locao lquido
Averageinvestido
Investedmdio
Capital
- others
ROIC

16

4Q15
4T15
SG&A
PDD
ADD

21.9

ROIC (LTM)
20.0%

13.0

21.6

25.3

Ebitda and Ebitda Margin

14.0

49.6

6.6

1Q16
1T16

Infraestrutura
Heavy
Construction

30.9

12.8

Business Unit - Construction

Construction - main Works with Mills Participation

In BRL million

North and Northeast

Corredor expresso Aguanambi [express
roadway]
Usina hidreltrica So Manoel
[hydroelectric plant]
Ponte Tauape [bridge]
Vales S11D Project
Transposition of So Francisco River
CSN Plant
Salvador BA093 and Metropolitan
Central-west and South
Papuda Penitenciary
Guaba Bridge - RS

Southeast
Nova Tamoios Highway
Transbrasil
Sorocaba and So Jos
dos Campos Hospital
Galvani Mining Company
Cofins Airport Duplication

Sanitation project
Metropolitan Line 5 and
Line 6
Monorail Linha Ouro
Imigrantes Viaduct
Beltway

States with Mills presence

17

Presentation of results for 1Q16 - 06/06/2016

Business Unit - Construction

Heavy Construction - Rental Revenue Breakdown

In BRL million

Per sector
BRL 23.9 million

Per Source of Resources

BRL 23.9 million

Power
4.6%

Railways
12.7%
Others
7.0%

PPP
13.0%

Airports and ports

4.6%

Public
39.7%
Industrial
16.2%

Private
47.3%

Highways
21,%

Sanitation
5.1%

Urban Mobility
28.8%

Public: resources from the government

Private: resources from the private sector.
PPP (publicprivate partnership) : resources from the government and the private sector

18

Presentation of results for 1Q16 - 06/06/2016

Business Unit - Construction

Real Estate - Rental Revenue Breakdown

In BRL million

Rental Revenue Breakdown

BRL 15.8 million

Others
17%

Commercial
25%

Residential
57%

Public: resources from the government

Private: resources from the private sector.
PPP (publicprivate partnership) : resources from the government and the private sector

19

Presentation of results for 1Q16 - 06/06/2016

Rental

Rental - Financial Performance

In BRL million

Costs and Expenses

Net Income
90.0

79.6

76.4

40.0%

70.3

70.0
20.0%

50.0

0.0%
-4.0%

10.0
1T15
1Q15

16.2

38.0
0.8
15.4

20.6

21.8

1T15
1Q15

4T15
4Q15

8.3

8.6%

30.0

-10.0

4T15
4Q15

1T16
1Q16

-40.0%

45.9%

40.0

COGS
CPV

32.3

30.0

35.0%
26.8

25.0
20.0

40.0%
30.0%
20.0%

15.0

10.0%

10.0
0.0%

5.0
0.0

-10.0%
4Q15
4T15

1Q15
1T15
Ebitda

8.8%

1,000.0
900.0
800.0
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0.0

ADD
PDD

5.5%

5.1%

-10.0%

124.2
136.4

588.2

140.8

Presentation of results for 1Q16 - 06/06/2016

-20.0%
-30.0%

518.3

491.6

-40.0%
-50.0%
1Q15
1T15

4Q15
4T15

1Q16
1T16

Capital
- outros
Averageinvestido
investedmdio
Capital
Net Rental PP&E

1Q16
1T16

Margem
Ebitda
Ebitda Margin

10.0%
0.0%

Capital
- imobilizado
Averageinvestido
Investedmdio
Capital
- others de locao lquido
ROIC
ROIC

21

SG&A

1Q16
1T16

ROIC (LTM)
50.0%

43.3%
34.4

32.5

-20.0%

Ebitda and Ebitda Margin

35.0

49.6
3.0
14.1

45.1

Rental - Net Revenu Breakdown

In BRL million

Net Revenue per Type of Service

BRL 76.4 million

Others
2%
Sales
2%

Net Rental Revenue per Use

BRL 49.9 million

Technical
Supoprt
1%

Spot
15%
NonConstruction
37%

used equip.
sales
30%
Locao
65%

22

Presentation of results for 1Q16 - 06/06/2016

Construction
48%

Consolidated - Indebtedness

Consolidated - Indebtedness
In BRL million

Gross Debt Profile

Principal Amortization Schedule

31.2%

17.1%

31.0%

21.9%

21.9%

106

106

8.0%

BRL 90 million already

paid in April/16

424
68.8%

173
Curto Prazo

150

39

Longo Prazo
Cash position

We do not have foreign currency exposure.

2016

2017

2018

2019

2020+

Participation of the balance due (principal) excluding payment made in April/16

2.3%

Indebtedness on 03/31/2016
23.4%
56.8

631.1

423.5

574.3

74.3%
207.5
IPCA

CDI

TJLP
Principal

24

Presentation of results for 1Q16 - 06/06/2016

Interests

Gross Debt

Cash

Net Debt

Consolidated - Debt Indicators

In BRL million

Ebitda* / Financial income

Net Debt / Ebitda*

4.5
Covenants 3,0

3.9
3.5
3.0

2.1
2.8

1.8

1.9

1.6
1.3
Covenants 2,0

1Q15
1T15

2Q15
2T15

3T15
3Q15

4Q15
4T15

1Q16
1T16

1Q15
1T15

2T15
2Q15

3T15
3Q15

4T15
4Q15

1T16
1Q16

Debentures Covenants:
(1)

EBITDA*/financial income >= 2.0; and

(2)

Net Debt/EBITDA* <= 3.0.

*Excluding

25

Presentation of results for 1Q16 - 06/06/2016

extraordinary items from LTM EBITDA

Mills - Relation with Investors

Phone: +55 (21) 3924-8768
E-mail: ri@mills.com.br
www.mills.com.br/ri