Upload
millsri
View
216
Download
0
Embed Size (px)
Citation preview
8/20/2019 BTG Pactual VI Latam CEO Conference*
1/36
October 2015
Corporate Presentation
8/20/2019 BTG Pactual VI Latam CEO Conference*
2/36
H e a v y C o n s t r u c t i o n
•
• Market leader, extensive trackrecord, with more than 60 yearsof experience
• Focus on: large and complexinfrastructure projects
• Products: engineeringsolutions and rental offormwork and shoring
• Services: planning, design,technical supervision,equipment and related services
• Main clients:
R e a
l E s t a t e
•
• Market leader; acquired in 2008
• Focus on: residential andcommercial constructions
• Products: engineering solutionsand rental of formwork, shoringand suspended access
• Services: planning. design.technical supervision. equipmentand related services
• Clients: real estate companies.such as:
R e n t a l
• Market leader; started in2008
•Focus on: civil construction.Industry, retail e others
• Products: rental and sale ofmotorized accessequipment, such as aerialwork platforms andtelescopic handlers
• Cross-selling with all other
Mills’ business units
• Elected "Best Company for Access of the Year" by theInternational Awards forPowered Access (IAPA
Awards) for the year of 2011
Mills - Business Units
1
http://www.pdgrealty.com.br/pdg/Capa.aspxhttp://www.pdgrealty.com.br/pdg/Capa.aspx
8/20/2019 BTG Pactual VI Latam CEO Conference*
3/36
2
Mills – 2Q15LTM Financial highlights per business unit
In R$ million
EBITDA margin ROIC
32.0% 4.3%
1.1% -7.6%
47.7% 7.4%
32.4% 2.0%329.0
157.1
158.8
1.8
197.3
63.1
685.1
221.9
Net Revenue EBITDA
Heavy Construction
Real Estate
Rental
8/20/2019 BTG Pactual VI Latam CEO Conference*
4/36
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 (Easy Set adjustments + Industrial Services
indemnities).
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
3
Financial Performance1
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
8/20/2019 BTG Pactual VI Latam CEO Conference*
5/36
Positive cash flow of R$ 37 million in 2Q15, reaching R$ 226million in the last twelve months
4
(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
8/20/2019 BTG Pactual VI Latam CEO Conference*
6/36
72 57 34 38 31 27
134 174
150106 106
38
194206
231
184
144 137
65
Cashposition
2015 2016 2017 2018 2019 2020
Interest Principal
Debt profile
Debt amortization schedule1
in R$ million
5
Credit lines available¹,2
Used R$ 16.7 million
Not used R$ 547.3 million
¹As of June 30, 20152 Unsecured overdraft account+ Secured bank credit lines
618
138 480
Gross debt Cash position Net debt
Debt, as of June 30, 2015in R$ million
A l r e a
d y p
a i d
8/20/2019 BTG Pactual VI Latam CEO Conference*
7/36
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
6
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 LTM1Q15 and R$ 44.9 million from LTM2Q15.
1 1
8/20/2019 BTG Pactual VI Latam CEO Conference*
8/36
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%
8/20/2019 BTG Pactual VI Latam CEO Conference*
9/36
Semi-new equipment sales effort
Rental
• Sales of semi-new equipment totaled R$ 8.4 million in 1H15
• Rental equipment planned sales amount to € 8.0 million for 2H15 and 1Q16;2015 shipments scheduled for October and November; remaining equipment to
be shipped by February 2016
Real Estate:
• Sales of semi-new equipment totaled R$ 3.6 million in 1H15
• International Market: searching for distribution channels
• Brazilian market: plans to develop local sales partners
8
8/20/2019 BTG Pactual VI Latam CEO Conference*
10/369
• Since 3Q14, organizational structure was resized, with annualized personnel
savings estimated at R$ 24 million*
• New structure aims at capturing synergies between Heavy Construction andReal Estate markets and operations
Ricardo GusmãoCommercial Officer
for Construction
Avelino GarzoniEngineering and
Operations Officer
Marcelo YamaneRental Officer
Frederico NevesCFO and IRO
Deise VieiraHuman Resources
Officer
Sérgio KariyaCEO
Changes in the organization structure
*Excluding costs with layoffs
Organization structure as of September 2015:
Construction
8/20/2019 BTG Pactual VI Latam CEO Conference*
11/36
Business Units
8/20/2019 BTG Pactual VI Latam CEO Conference*
12/36
Rental
Aerial work platforms
8/20/2019 BTG Pactual VI Latam CEO Conference*
13/3612
Growth drivers in the motorized access equipment market:safety and productivity
Source: Mills
Market penetrationthroughsubstitution of lesssecure andefficient access
methods
Recent safety standards (NR-18 and NR-35) recommend the use of aerial platforms to lift
people, increasing safety and productivity in the work site
8/20/2019 BTG Pactual VI Latam CEO Conference*
14/36
1,889
403
277233
72
Mobile ladders Vehicles with lifttables, dock
levellers, ramps andflying tables
Fixed scaffolding Mobile scaffolding Aerial platform
13
Number of accidents by type of access equipment
EUA –
2010-2011
Source: HSE HandS-On Statistics Data Tool
Safety - Growth driver in the motorized access equipmentmarket
8/20/2019 BTG Pactual VI Latam CEO Conference*
15/36
Productivity - Growth driver in the motorized accessequipment market
Preparation: scaffolding assembly last 2 dayswith 8 peopleOperation: fixed structure makes it difficult toaccess certain points
Preparation: it reaches working heights inone and half minutesOperation: flexible, easy to operate andmaneuver
14
8/20/2019 BTG Pactual VI Latam CEO Conference*
16/36
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
USA + Canada Latin America Europe Asia Middle East and Africa
Booms Scissor Lift Others
World fleet of motorized access equipment estimated at 1.1million units, being half of it in North America
Estimated 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
15
8/20/2019 BTG Pactual VI Latam CEO Conference*
17/36
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
16
8/20/2019 BTG Pactual VI Latam CEO Conference*
18/36
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
17
Construction66%
Industry16%
Spot18%
Rental revenue by useIn 2Q15
8/20/2019 BTG Pactual VI Latam CEO Conference*
19/36
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%
10%
20%
30%
40%
50%
60%
< 24 24-48 48-72 72-96
18
8/20/2019 BTG Pactual VI Latam CEO Conference*
20/36
98.691.0
83.979.6
74.5
55.150.0
33.234.4
39.4
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
19
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
8/20/2019 BTG Pactual VI Latam CEO Conference*
21/36
Heavy Construction
Laguna bridge – Santa Catarina
Infrastructure investments are priority in Brazil However
8/20/2019 BTG Pactual VI Latam CEO Conference*
22/36
1,509
1,772
1,013
598
830
643
BNDES - 2015-2018
Sobratema - 2014 - 2019
Exame - Balance 2014/2015Infrastructure
Total
Infrastructure investments are priority in Brazil. However,there are major uncertainties regarding its execution.
Expected investments in Brazil
in R$ billion
Source: BNDES – December 2014, Sobratema – 5ª Edição – 2014, Anuário Exame 2014-2015, datafrom 1,565 construction works.
21
8/20/2019 BTG Pactual VI Latam CEO Conference*
23/36
Logistics investment program (PIL)
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
Estimated investments
in R$ billion
Foreseen expansionin Km
Source: Valor Econômico newspaper, June 10, 2015
22
until 201835%
After201865%
8/20/2019 BTG Pactual VI Latam CEO Conference*
24/36
Of the R$ 66 billion investments planned for highwayconcessions, approximately 75% should be auctioned in2015/16
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
8/20/2019 BTG Pactual VI Latam CEO Conference*
25/36
2015 2016
aug sep oct nov dec jan feb mar apr may jun jul aug sep
Signaturesof
contracts
Auction
AuctionPublicNotice
Public
Hearing
Studies Construction
Estimated Schedule of Logistics investment program
Construction jobs should start at the end of 2016, presentingrevenues opportunity for Mills in 2017 onwards
24
8/20/2019 BTG Pactual VI Latam CEO Conference*
26/36
25
Rental revenue breakdown in 2Q15
Public43%Private
50%
PPP7%
Source of funds
Industry29%
Infrastructure
61%
Others10%
Per sector
8/20/2019 BTG Pactual VI Latam CEO Conference*
27/36
In R$ million
Heavy Construction – Financial Performance
26
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%
55.551.9 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%
2Q14 3Q14 4Q14 1Q15 2Q15
Net revenue EBITDA EBITDA margin (%) ROIC¹
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
8/20/2019 BTG Pactual VI Latam CEO Conference*
28/36
Real Estate
Flying table
8/20/2019 BTG Pactual VI Latam CEO Conference*
29/36
In 2015, civil construction GDP should present largerreduction than the previous year
-10%
-5%
0%
5%
10%
15%
2009 2010 2011 2012 2013 2014 1H15 2015E
Total GDP Civil construction GDP
Source: Bacen (2009-2013), IBGE (2014 e 1H15) and estimatives from Bloomberg and Sinduscon
GDPYoy variation (%)
28
8/20/2019 BTG Pactual VI Latam CEO Conference*
30/36
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 %
29
8/20/2019 BTG Pactual VI Latam CEO Conference*
31/36
Stages of industrialization of the construction process
30
1 Approximately 800 m2
Source: Téchne Magazine, June 2012 and Mills
System Traditional with wood Traditional with steel Deck type Flying table
Cycle betweenconcreting activities
15 days 7-10 days 6-8 days 4-7 days
Labor required1 30 people 20 people 12 people 10 people
L h d l d li d i 2Q15 ith ibl ti
8/20/2019 BTG Pactual VI Latam CEO Conference*
32/36
31
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
8/20/2019 BTG Pactual VI Latam CEO Conference*
33/36
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
32
8/20/2019 BTG Pactual VI Latam CEO Conference*
34/36
Residential50%
Commercial36%
Others15%
Rental revenue per segmentIn 2Q15
Rental revenues breakdown in 2Q15
33
8/20/2019 BTG Pactual VI Latam CEO Conference*
35/36
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
34
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
8/20/2019 BTG Pactual VI Latam CEO Conference*
36/36
Mills – Investor Relations
Tel.: +55 21 2123-3700
E-mail: [email protected]
www.mills.com.br/ri