2Q15 Presentation of Results

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August 6th, 2015

Presentation of 2Q15 Results



¹ Reclassifiedexcluding 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

213.0

191.5 191.5

181.9163.9

147.9

105.9

66.779.0

55.647.4 52.1

33.4

3.211.3

-6.2-14.5

-8.2

49.7%

34.8%

41.3%

30.6%

28.9%

35.3%

12.3%9.4% 9.9%

6.6% 4.0%2.0%

2Q14 3Q14 3Q14³ 4Q14 1Q15 2Q15

Net revenue EBITDA Net earnings EBITDA margin (%) ROIC²

2

Financial Performance1

Presentation of 2Q15 Results – 8/06/2015

In R$ million

2Q15/2Q14 2Q15/1Q15 LTM2Q15/2014³ CAGR 12-14³

Net revenue -31% -10% -14% 9%

EBITDA -51% 10% -37% 2%

Net earnings n.a. n.a. n.a. n.a.

665.5

832.3794.2 794.2

685.1

339.0

403.1

335.7 350.2

221.9

151.5172.6

64.381.7

-25.7

50.9%48.4%

42.3%44.1%

32.4%

14.7%14.1%

6.6% 6.6%2.0%

2012 2013 2014 2014³ LTM2Q15



Rental85%

Technicalassistance

1%

Sales9%

Others5%

Per service type

HeavyConstruction

28%

Real Estate21%

Rental51%

Per business unit

Net revenue totaled R$ 147.9 million in 2Q15

3 Presentation of 2Q15 Results – 8/06/2015



4

Sales of semi-new equipment totaled R$ 13.5 million in 1H15

0

5

10

15

20

25

30

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Sales of semi-new equipment Sales of new equipment

In R$ million

Equipment sales




Planned sales for semi-new equipment have already amountedR$ 40 million

Target:

• Sales above R$ 30 million in 2015

• To reduce 10% of Rental assets in the next three years

• To reduce 20% of Real Estate assets in the next three years

Ongoing actions:

• International Market: establishment of new distribution channels and hiring ofcommercial representatives

• Brazilian market: development of sales partners in the Real Estate market

Planned sales for semi-new equipment of approximately R$ 40 million in theRental business unit




6

10% qoq EBITDA increase

47.4 33.5

2.92.6

5.6

19.32.9 52.1

0

10

20

30

40

50

60In R$ million

Change in EBITDA




ADD reached 1.2% of net revenue in 2Q15, positivelyimpacted by reversals of R$ 6.8 million

0.3%

1.7% 2.1%2.0%

5.3%

12.8%

1.2%

7.3%

-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 1S15

2010-2014 average = 2.3%

As % of net revenuesChanges in allowance for doubtful debts (ADD)

7

4.2%


-0.8%

Ex clients under investigation

6.8%

3.2%



142.9 7.6 6.34.9

3.4 137.3

0

20

40

60

80

100

120

140

160

July/14 2014Restructuring

2015Restructuring

Insourcing Admissions andSubstitutions

May/15

Reduction of 10% in costs with personnel

8

Organizational Structure resized, with annual savings of R$14 million

In R$ million -annualised

Evolution in workforce




New variable compensation program, aiming at engaging andaligning our employees

• Exceptionally, the 2015 variable remuneration program will be measured byEBITDA, instead of EVA.

• Distribution from 1 to 5% of EBITDA, if it exceeds the budget for the year.

• Remuneration through Company’s consolidated results – one sole Mills

• Bonus for maintenance team tied to productivity and quality of maintenanceactivity.




Positive cash flow of R$ 37 million in 2Q15, reaching R$ 226million in the last twelve months

10

(340)

(219)

(31)

(154)

116

(13)

11

7445

7037

(400)

(300)

(200)

(100)

-

100

200

2010 2011 2012 2013 2014 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15

Free cash flow1

In R$ million

1 Net cash generated by the operating activities minus net cash applied in investment activities




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

11

1.5x 1.5x 1.5x1.6x

1.8x

1.6x

2.2x

1.8x

1Q14 2Q14 3Q14 4Q14 1Q15 1Q15 2Q15 2Q15

8.0x

7.1x

6.1x

5.2x

4.0x

4.5x

3.3x

3.9x

1Q14 2Q14 3Q14 4Q14 1Q15 1Q15 2Q15 2Q151 1

1Excluding R$ 40.1 million of non-recurring items from 1Q15 and R$ 44.9 million from 2Q15.


1 1



Improvement in Corporate Governance and Compliance

• New Code of Conduct

• Creation of Internal Audit area

• Confidential and anonymous channel of communication for questions,comments, suggestions and complaints

• Risk management and compliance committee

• Commitment of top management

Ombudsman Mills – Speak openly

Email: [email protected] Phone: 0800 285 3900




98.691.0

83.979.6

74.5

55.150.0

33.2 34.439.4

55.8% 54.9%

39.6%

43.3%

53.0%

16.2%14.5%

11.5%8.8%

7.4%

2Q14 3Q14 4Q14 1Q15 2Q15

Net revenue EBITDA EBITDA margin (%) ROIC¹

Rental – Financial Performance

13

1 ROIC: Return on Invested Capital.

In R$ million

2Q15/2Q14 2Q15/1Q15 LTM2Q15/2014 CAGR 12-14

Net revenue -24% -6% -11% 21%

EBITDA -28% 15% -20% 18%


253.5

357.3370.8

329.0

140.8

207.0196.7

157.1

55.6%57.9%

53.0%

47.7%

18.2% 18.2%

11.5%

7.4%

2012 2013 2014 LTM2Q15



Utilization rate dropped in 2Q15 with the slowdown in the Oiland Gas sector

14

Changes in revenue

in R$ million

Source: Mills

79.6

0.53.5

1.1

74.5

0

10

20

30

40

50

60

70

80

90

1Q15Revenues

Rentedvolume

Price andmix

Other revenues

2Q15Revenues

Utilization Rate

In %

0%

20%

40%

60%

80%

100%

1 Q 1 0

2 Q 1 0

3 Q 1 0

4 Q 1 0

1 Q 1 1

2 Q 1 1

3 Q 1 1

4 Q 1 1

1 Q 1 2

2 Q 1 2

3 Q 1 2

4 Q 1 2

1 Q 1 3

2 Q 1 3

3 Q 1 3

4 Q 1 3

1 Q 1 4

2 Q 1 4

3 Q 1 4

4 Q 1 4

1 Q 1 5

2 Q 1 5

LTM 2Q15 average = 61%




Rental

88%

Sales of newequipment

3%

Sales ofsemi-newequipment

6%

Others3%

Net revenues per type of serviceIn 2Q15

Construction sector remains the main user of Mills’

motorized access equipment

15

Construction66%

Industry16%

Spot18%

Rental revenue by useIn 2Q15




Source: Mills

Distribution of Mills fleet by age% Fleet in number of pieces of equipment

70% of Mills fleet is less than 48 months old, and do notrequire rebuilding in next three years

months


18%

52%

26%

4%

0%0%

10%

20%

30%

40%

50%

60%

< 24 24-48 48-72 72-96 >96

16



Brazil presents low penetration in motorized access Market,since it is still an incipient market

0

50

100

150

200

250

Source: IPAF Powered Access Rental Market report, produced by Ducker

Penetration stage in motorized access market# motorized access machines per 100 thousand habitants




0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

USA + Canadá Latin America Europe Asia Middle East and Africa

Booms Scissor Lift Outros

World fleet of motorized access equipment estimated at 1.1million units, being half of it in North America

We estimate that the annual market for semi-new equipment accounts for 5% of world fleet

Size of motorized access fleet# of machines


Source: IPAF Powered Access Rental Market report, produced by Ducker

18



55.5

51.9 52.5 51.1

41.8

25.6

21.4

16.3

12.9 12.5

46.2%

41.2%

31.0%

25.3%29.8%

16.3%13.3%

9.9%

7.0% 4.3%

2T14 3T14 4T14 1T15 2T15

Receita Líquida EBITDA Margem EBITDA (%) ROIC¹

In R$ million

Heavy Construction – Financial Performance

19

1 ROIC: Return on Invested Capital.

2Q15/2Q14 2Q15/1Q15 LTM2Q15/2014 CAGR 12-14

Net revenue -25% -18% -6% 10%

EBITDA -51% -4% -29% 2%


174.1

217.0211.0

197.3

85.5

111.4

88.9

63.1

49.1% 51.3%

42.1%

32.0%

17.2%

19.2%

9.9%

4.3%

2012 2013 2014 LTM2Q15



20

Rental revenue breakdown in 2Q15

Public43%Private

50%

PPP7%

Source of funds

Industry29%

Infrastructure

61%

Others10%

Per sector




Reduction of rental revenues was mainly due to lower revenuesfrom sales, technical assistance and indemnities

21

Change in revenue

in R$ million

Source: Mills

51.1

0.9 0.1 8.4

41.8

0

10

20

30

40

50

60

1Q15Revenues

Rentedvolume

Price andmix

Other revenues

2Q15Revenues

Utilization Rate

In %

0%

20%

40%

60%

80%

100%

1 Q 1 0

2 Q 1 0

3 Q 1 0

4 Q 1 0

1 Q 1 1

2 Q 1 1

3 Q 1 1

4 Q 1 1

1 Q 1 2

2 Q 1 2

3 Q 1 2

4 Q 1 2

1 Q 1 3

2 Q 1 3

3 Q 1 3

4 Q 1 3

1 Q 1 4

2 Q 1 4

3 Q 1 4

4 Q 1 4

1 Q 1 5

2 Q 1 5





Logistics investment program

66

86

9

37

198

42

91

0

54

187

0 50 100 150 200 250

Highways

Railroads

Airports

Ports

Total

PIL - 2012 PIL - 2015

7,500

10,000

6,974

7,537

0 5000 10000 15000

Highways

Railroads

Forecast investments

in R$ million

Foreseen expansionin Km


Source: Valor Econômico newspaper, June 10, 2015

22



Of the R$ 66 billion investments planned for highwayconcessions, approximately 75% should be auctioned in 2015/16

23

6.3

2.5

2

3.2

1.1

2.1

3.2

3.1

1.9

1.6

4.2

4.5

3.1

4.1

6.6

BR-364 (RO/MT)

BR-262 (MS)

BR-267 (MS)

BR-101/116/290/386 (RS)

BR-101 (SC)

BR-280 (SC)

BR-470/282 (SC)

BR-101/493/465 (RJ/SP)

BR-262/381 (MG)

BR-101 (BA)

BR-101/232 (PE)

BR-476 /153/282/480 (PR/SC)

BR-364 (GO/MG)

BR-364/060 (MT/GO)

BR-163 (MT/PA)

InvestmentsIn R$ billion

2 0 1 5

2 0 1 6

Source: Mills, Valor Setorial –

Infraestrutura , June 2015




58.8

48.6 48.645.4

33.231.6

25.2

-4.7

7.6 6.1

0.1 0.2

42.8%

-9.6%

15.7% 13.5%

0.2% 0.7%

6.5%2.1% 3.8% 0.4%

-3.3%

-7.6%

2Q14 3Q14 3Q14¹ 4Q14 1Q15 2Q15

Net revenue EBITDA EBITDA margin (%) ROIC²

Real Estate – Financial Performance

24

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

2Q15/2Q14 2Q15/1Q15 LTM2Q15/2014 CAGR 12-14

Net revenue -46% -5% -25% -6%

EBITDA -99% 244% -68% -35%


238.0

258.0

212.4 212.4

158.8

119.3

100.9

50.164.6

16.2

50.1%

39.1%

23.6%

30.4%

10.2%

15.7%

8.1%

0.4%2.5%

-7.6%

2012 2013 2014 2014¹ LTM2T15¹



Residencial50%

Comercial36%

Outros15%

Rental revenue per segmentIn 2Q15

Rental revenues breakdown in 2Q15




Utilization rate in 2Q15 continued the downward trend, whichbegan in 4Q13

26

Change in revenue

in R$ million

Source: Mills

33.2

1.60.1

31.6

0

5

10

15

20

25

30

35

1Q15revenues

Rentedvolume

Price and mix 2Q15Revenues

Utilization rate

In %

0%

20%

40%

60%

80%

100%

1 Q 1 0

2 Q 1 0

3 Q 1 0

4 Q 1 0

1 Q 1 1

2 Q 1 1

3 Q 1 1

4 Q 1 1

1 Q 1 2

2 Q 1 2

3 Q 1 2

4 Q 1 2

1 Q 1 3

2 Q 1 3

3 Q 1 3

4 Q 1 3

1 Q 1 4

2 Q 1 4

3 Q 1 4

4 Q 1 4

1 Q 1 5

2 Q 1 5





27

6.5

7.6

4.4

5.2

4.5

3.217.6%

-42.0%

18.2%

-13.7%

-29.1%

-65%

-45%

-25%

-5%

15%

35%

55%

75%

95%

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2Q10 2Q11 2Q12 2Q13 2Q14 2Q15

V a r . ( % )

L a u n c h e s ( i n R $ m i l l i o n )

1 Cyrela, Direcional, Even, Eztech Gafisa, Helbor, MRV, Rodobens, PDG e Tecnisa.

Source: Operational reports from companies and Mills

Total launches1

in R$ billion

Launches and sales declined in 2Q15, with possible negativeimpact on construction activities throughout the year

6.5

7.0

5.5

6.5

4.6

3.3

8.2%

-21.7%

18.6%

-29.1%-29.0%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2Q10 2Q11 2Q12 2Q13 2Q14 2Q15

V a r . ( % )

S a l e s ( i n R $ m i l l i o n )

Total sales1

in R$ billion


Built up area in square meters in the structure phase may



0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2H09 2H10 2H11 2H12 2H13 2H14 2H15E

Finishing

Structure

Foundation

Source: Criactive

Built-up area in square meters in the structure phase maysuffer contraction in 2H15, recovering in the beginning of2016

Evolution in built-up area by phasein m2




Demand for metallic formworks is more sensitive to cycles,while metallic shoring is more resilient

Source: Criactive

6.2%8.7%

11.4%8.2%

5.4% 4.7% 5.1%

70.2%67.8%

71.2%

76.4%

80.1%83.3% 84.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2009 2010 2011 2012 2013 2014 2015

Metallic formwork Metallic shoring

Evolution of use in built-up areasin %




Mills - Investor Relations

Tel.: +55 21 2123-3700

E-mail: [email protected]

www.mills.com.br/ri

Documents

2Q15 Presentation of Results