Mills Locacao Servicos e Logistica S.A. · BMFBOVESPA:MILS3
Mills Locacao Servicos e Logistica — Q1 2017 Earnings Presentation
24 slides from Mills Locacao Servicos e Logistica's earnings presentation, May 25, 2017
Slide 1: Corporate Presentation and 1Q17 Results
Corporate Presentation and 1Q17 Results
Slide 2: Corporate Presentation and 1Q17 Results
Corporate Presentation and 1Q17 Results 1. Company Overview 2. Revenue Drivers 3. Financial Profile 2 Corporate Presentation and 1Q17 Results
Slide 3: Our Company
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 invest in the expertise of our team of professionals, which, allied to our diversified experience, allows u
Slide 4: Company History
Company History First Brazilian manufacture of formwork by license Sells Events Unit agreement with NOE- Acquired Jahu Ltda Schaltechnik from Initiates its Rental Unit Founded on 1952. Germany 50`s 90`s Catedral da Sé Ferrovia do Aço hydroelectric power plant Lajeado Paiva construction work Maracanã
Slide 5: Business Units
Business Units Construction Rental Focus on Infrastructure, Industrial, Residential and Focus Civil Construction, Industry, Retail and Others. Commercial projects. Sales and rental of concreting and shoring, providing Rental and sale of motorized access equipment, such engineering solutions, service
Slide 6: Business Units
Business Units Mills is the national market leader in equipment rental for both business Units. Construction equipment¹²: 2015 Net Revenues (R$ million) Arial work platforms³: 2015 Net Revenues (R$ million) Mills 283 Mills 293 SH 110 Solaris 140-160 144 216 Ulma 94 Locar 120 141 304 Not listed Not
Slide 7: What We Do?
What We Do? Access Formwork and Shoring Special systems We are present on all construction phases. Our work starts on the preliminary economic and technical viability studies and goes until the end of the projects. Thus, we ensure the use of the best engeneering solutions. Implementation Viability
Slide 8: Strengths and Competitive Advantages
Strengths and Competitive Advantages Know-how to work in complex projects, such as bridges, subways and hydroelectric “Best-in-class” power plants; engineering and technical Recognition of its differentiated services and reliability; capabilities and SLA Market leader in its core business unit
Slide 9: Main iniciatives and events held by the Company
Main iniciatives and events held by the Company 2015 2016 2017 Sergio Kariya took the position as Capital increase, in April, of R$125 Optimization of the number of CEO. million. branches and equipment, specially for the light real Revisited its organizational Hiring of Gustavo Zeno as CFO
Slide 10: Organizational Structure
Organizational Structure Sergio Kariya Chief Executive Officer Ricardo Gusmão Daniel Brugioni Sergio Kariya Avelino Garzoni Gustavo Zeno Fernanda Strategic Clients Commercial and Operations Engineering and Administrative Copeman Marketing (Interim) New Financial and IR People and Technologies Manage
Slide 11: Corporate Presentation and 4Q16 Results
Corporate Presentation and 4Q16 Results 1. Company Overview 2. Revenue Drivers 3. Financial Profile 11 Corporate Presentation and 1Q17 Results
Slide 12: Heavy Construction: Market Perspective
Heavy Construction: Market Perspective It is known that investment in infrastructure is historically low in Brazil and still far from the levels seen in developing countries. Investment in Infrastructure Investment in Infrastructure in Brazil (% GDP) (% GDP) China (2010) 5.4 0.5 Index 1.0 (best) Í
Slide 13: Rental: Market Perspective
Rental: Market Perspective The market of aerial platform gained traction in 2007 with the revision of the Regulatory Safety Labor Norm 18 (NR18), which establishes that workers must be lifted with the use of motorized access equipment and economic growth. The current volume in Brazil is around 34,00
Slide 14: Revenue Drivers for Construction Jobs and its Relevance
Revenue Drivers for Construction Jobs and its Relevance 2017-18 2019-20 2021 onwards Backlog Continuity of works in progress - Resumption of suspended - works Delays on works - Pipeline New construction works Renewal of existing concessions Crescer Program Less relevant Relevant Very relevant The
Slide 15: Corporate Presentation and 4Q16 Results
Corporate Presentation and 4Q16 Results 1. Company Overview 2. Revenue Drivers 3. Financial Profile 15 Corporate Presentation and 1Q17 Results
Slide 16: Utilization Rate and Main works
Utilization Rate and Main works Construction – Utilization Rate Main works in the 1Q17 100% 90% 80% 70% North and Northeast 60% Sambodrome Tucurui – PA 50% Ministério Público Federal – PA 40% ETE Una – PA 30% Salvador ‘s Subway – BA 20% Average LTM 1Q17 = 39.8% BA-093 Duplication – BA 10%
Slide 17: Summary Financials
Summary Financials In R$ million Net Revenue Costs and Expenses 900.0 396.6 402 424 346 354.5 462.8 832.3 794.2 332.7 900 516 515 800.0 665.5 56.8 560 585 50.4 576.1 800 622 700.0 101.3 80.5 700 39.9 600.0 64.1 600 42 37.8 16 38 500.0 53.9 500 11 21 27.6 209 232 203 400.0 36.8 400 2 164 14 180 34.5
Slide 18: ADD Percentage Equal to 4.1% of Net Revenue in 4Q16
ADD Percentage Equal to 4.1% of Net Revenue in 4Q16 Allowance for Doubtful Debts (ADD) Evolution Delinquency Evolution In % of net revenue 75.2% 76.4% 74.1% 72.9% 72.0% 6.6% 73.1% 70.0% 69.1% 5.3% 5.3% 63.2% 60.1% 1.7% 2.1% 2.0% 2010-2014 Average: 2.3% 0.3% 2010 2011 2012 2013 2014 2015 2016 1Q17 1Q
Slide 19: Free Cash Flow
Free Cash Flow¹ In R$ million Even on na adverse macroeconomic scenario, the Company remains generating free cash flow. EBITDA Reconciliation with Operational Cash Flow 6.5 6.0 10.6 16.3 13.9 6.0 10.2 22.2 2.9 2.8 1.8 (16.2) O p e ra tin g C a s h F lo w a s a c c ou ... In te r e s t a n d m o n
Slide 20: Indebtedness on 03/31/2017
Indebtedness on 03/31/2017¹ In R$ million The weighted average maturity of our debt is 2.3 years at a cost of CDI+0.85%. Gross Debt Profile Principal Amortization Schedule 338.9 338.9 36.3% 149.5 106.2 106.2 38.9 63.7% Cash 2017 2018 2019 2020+ 2nd issue of Debentures- CDI +1.20% 2nd issue of Debe
Slide 21: Summary Financials
Summary Financials In R$ million 2010¹ 2011¹ 2012¹ 2013¹ 2014² 2015³ 2016 LTM1Q17 % Part Net Revenue Consolidated 354.5 462.8 665.5 832.3 794.2 576.1 396.6 332.7 100.0% Construction 259.4 287.4 412.0 474.9 423.4 283.0 182.3 153.9 46.3% Rental 95.1 175.4 253.5 357.3 370.8 293.2 214.3 178.7 53.7% Ebit
Slide 22: Key Takeaways
Key Takeaways 2017 : Actions • Planning and structural actions for EBITDA recovery and cash preservation • Company’s sizing • Adequacy of equipment mix in Rental • Commercial strategy • Construction: medium size constructors and entrants • Rental: focus on continuation of non-construction sector • C
Slide 23: Notes
Notes Aerial Work Plataform - Spazio Residence Formwork and Shoring – Salvador`s Subway 23 Corporate Presentation and 1Q17 Results
Slide 24: Disclaimer
Disclaimer This presentation may contain statements that present expectations of the Management of Mills Estruturas e Serviços 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 informat
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