Mills Presentation

Disclaimer

This presentation may include declarations about Mills expectations regarding future events or results. All declarations based upon future expectations, rather than

historical facts, are subject to various risks and uncertainties. Mills cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: the Brazilian economy, capital markets, infrastructure,

real estate and oil & gas sectors, among others, and governmental rules, that are
subject to change without previous notice. To obtain further information on factors that may give rise to results different from those forecast by Mills, please consult the reports filed with the Brazilian Comisso de Valores Mobilirios (CVM).

Agenda

Who we are Mills Business segments

Growth Plan

Mills at a Glance
One of the largest specialty engineering services company in Brazil 60 years of market leadership 4 business segments: Heavy Construction Rental

Jahu Residential and Commercial

Industrial Services

Mills Important Projects

Excellent track-record of performance, having participated in the Brazilian largest projects over the last 59 years Rio Niteri bridge Itaipu

Octvio Frias de Oliveira bridge

Braslia

City of Arts

Mills Financial performance per business segment

1Q13LTM Financial highlights per business segment
R$ million
1000
920.0

% Total

900 800 700

EBITDA Margin (%)

Rental

ROIC (%) 18.0%

273

30%

54.9%

Industrial Service
600 214 500 400 300 200 100
0 374.1

9.1%

4.8%

23%

% Total 40% 5%
31%

Jahu - Residential and Commercial

45.9%

14.9%

250

27%

150 20 115

Heavy Construction

49.3%

17.7%

182

20%
90

Total
24%

40.7%

14.7%

Net Revenue
1 1Q13

EBITDA

LTM Last twelve months ended March 31, 2013.

Mills Financial performance

Mills has excellent financial track record with average revenue growth of 36% per year and average EBITDA growth of 64% per year in the period 2007-2012.
Net Revenues (R$ million) EBITDA (R$ million) and EBITDA Margin (%)
CAGR 07-12: 64% CAGR 07-12: 36%

920 879

16%

30%

39%

35%

35%

41%

41%

Acquisition of Jahu Start-up Equipment Rental Division Sales of Events Division

358
678

374

550

238
Entrance of PE Funds

404
299

195

158 90 30

192

2007
1 1Q13

2008

2009

2010

2011

2012

1Q13LTM

2007

2008

2009

2010

2011

2012

1Q13LTM

LTM Last twelve months ended March 31, 2013.

Mills Financial performance

Net earnings had an average annual growth of 70% p.a. in the period 2007-2012

Net earnings (R$ millions)

Net debt (R$ millions) and Net debt/EBITDA

Net debt/EBITDA

CAGR 07-12: 70%

1,0x

2,1x

1,2x

-0,1x

1,6x

1,2x

1,2x

151,5

158,1
461,9 418,6 375,8

103,3

92,2
68,4
187,7 182,4

30,6

10,5
2007
1 1Q13

31,3 2007 2008 2009

-9,7 2010 2011 2012 1Q13

2008

2009

2010

2011

2012

1Q13LTM

LTM Last twelve months ended March 31, 2013.

Mills Shares performance Ticker: MILS3

4,5

Market Cap
R$ billion

4,0
May 3, 2013, Market Cap = R$ 4.2 billion

3,5

3,0

2,5
Mills IBOVESPA Small Cap IMOB IPOTD* + 192.0 % - 21.9 % + 27.3 % - 3.1 %

2,0
15 de abril de 2010 1,4

1,5

1,0

*Up to May 3rd , 2013

Mills Shareholder Structure

Position: April 10, 2013 1 includes Snow Petrel

10

Mills Main products Project

11

Mills Main products Concrete Forms

12

Mills Main products Shoring

13

Mills Main products Access

14

Mills Main products Motorized Access Equipment

15

Mills Competitive Advantage

Widely recognized technical expertise, agility, innovative solutions and reliability granted Mills longstanding relationships with many of Brazils major companies in the sector

Reliability Agility and Machless Execution

Creative Solutions

National Coverage Complete Product Portfolio

Tailor Made Projects

16

Agenda

Who we are Mills Business segments

Growth Plan

17

Heavy Construction

BRT Transcarioca - RJ

Heavy Construction
Focus on large and complex infrastructure projects Products: Engineering solutions and equipment rental: formwork and shoring

Planning, design, technical supervision, equipment and related services

Market leader Extensive track record with 60 years of experience Critical success factor is reliability

Main clients are the Brazilian largest contractors, such as

Number of contracts: 290 at the end of 1Q13
So Paulos Subway Yellow Line Santo Antonio Hydroelectric Power Plant Dutra Highway Overpass (So Paulo)

19

Heavy Construction market outlook

Investments in infrastructure and industry in Brazil should amount R$ 1.5 trillion in the 2013-2016 period

Growth compared to the 2008-2011 period (%) 22% 36%

20
Source: BNDES February 2013

New logistic investment program

Total: R$ 42 billion (7,500 km)

Total: R$ 91 billion (10,000 km)

Total: R$ 54 billion

Total: R$ 187 billion

Source: Programa de investimento em Logstica, August 2012 and O Globo newspaper

21

The construction work related to World Cup and Olympic events represented 25% of the Heavy Construction business segments 1Q13 revenue

Investments in Infrastructure for the 2014 World Cup

Total: R$ 23.6 billion

1Q13 Revenue
R$ 47.5 million Others 9%

World Cup and Olympics 25%

In progess

2.9

Concluded 9.0
Infrastructure 34%

6.8

4.2

Industry 31%

0.7 Stadiums Urban mobility Airports Ports

Source: 4th 2014 World Cup Report and Mills 7 of the 30 airport projects were concluded, however there is no information about their investments
1

22

Sport events: the cherry of the cake

12 stadiums (R$ 6.7 billion)

5 highways1

1 railroad2

0.4 hydroelectric powerplant3

1 Considering 2 Investiment

the average investment of the Bus Rapid Transit (BRT): Transcarioca (R$ 1.3 billion), Transolmpica (R$ 2.2 billion) and Transoeste (R$ 0.7 billion) in the Norte-Sul railway (R$ 6.7 billon) 3 Investment in the Santo Antnio hydroelectric powerplant (R$ 16.0 billion)

23

Use of new technologies focused on productivity gains

Fonte Nova Arena Salvador, BA

58% lighter 50-65% less labor

24

Heavy Construction Financial performance

The Heavy Construction business segment presented an average revenue growth of 22% per year and average EBITDA growth of 30% per year in the period 2007-2012.
Net Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin (%)
CAGR 07-12: 30% CAGR 07-12: 22% 35% 45% 50% 48% 44% 48% 49%

90

84
182 174 154 146 132 110

74

74

58 50

64

23

2007
1 1Q13

2008

2009

2010

2011

2012

1Q13LTM

2007

2008

2009

2010

2011

2012

1Q13LTM

LTM Last twelve months ended March 31, 2013.

25

Jahu - Residential and Commercial

Reserva do Paiva Pernambuco

26

Jahu Residential and Commercial

Focus on residential and commercial construction Products: Engineering solutions and equipment sales and rental: formwork, scaffolding and shoring Market leader Innovative product - Easy-Set aluminum formwork - to serve low income housing construction Clients are the Brazilian real estate companies, such as Number of contracts 4,065 at the end of 1Q13

27

Growth drivers of the residential market

Higher purchasing power of the Brazilian population and of housing financing
Housing Financing
In R$ million

Source: BACEN, IBGE and FGV

28

Growth drivers of the commercial market: shopping centers and hotels

Hotel Sector

Current deficit: 62,400 units Investments of R$ 40 billion expected in the next 10 years Number of new rooms should increase to 36,600 in 2020, almost 5x higher than the 7,700 in 2010 Projects of new hotels:

2011: 39
2013: ~78 2020: 180

Source: Abrasce (May 2012), Ernst & Young, HotelInvest consulting

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Growth drivers of the residential market: industrialization of the construction process

The major challenge for the sector: labor

89% of companies from the construction industry stated that

lack of qualified labor is a problem for the company 94% of companies from the construction industry facing shortages of skilled manpower have difficulty finding workers

for basic construction activities, such as bricklayers and

laborers Solution: Industrialization of the construction process
System Cycle between concreting activities Traditional with wood 15 days Deck Type 6-8 days Flying Table 4-7 days

Only 7% of companies from the construction industry plan to deal with the shortage of skilled labor by changing the building process to an industrial assembly model 30
Source: Sondagem Especial Construo Civil, April 2011, CBIC , CNI, Tchne Magazine, June 2012 and Mills

Great penetration of concrete wall for the Minha Casa, Minha Vida program
Use of concrete wall should reach 40% of the properties of the Minha Casa, Minha Vida program in 2014/15; escalating the sales potential of our product Easy Set formwork

2010/11
3%

2012/13
15%

2014/15

40%

60% 85%

97%

30,000 HU
Concrete wall construction

150,000 HU

400,000 HU
Construction using other systems

Source: Criative

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Jahu Financial performance

The Jahu business segment presented an average revenue growth of 76% per year and average EBITDA growth of 79% per year in the period 2008-2012.
Net Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin (%)
CAGR 08-12: 79% CAGR 08-12: 76% 45% 51% 42% 42% 48% 46%

113
250 238

115

66
156

44
105

32
62 25

11

2008
1 1Q13

2009

2010

2011

2012

1Q13LTM

2008

2009

2010

2011

2012

1Q13LTM

LTM Last twelve months ended March 31, 2013.

32

Rental Motorized Access Equipment

Castelo Stadium Fortaleza, CE

Rental - Motorized Access Equipment Rental

Serves all Mills business segments as well as the automotive, retail and logistics sectors, among others Products: Rental and sale of motorized access equipment, such as aerial work platforms and telescopic handlers, to lift people or cargo, respectively Market leader Cross-selling with all other Mills business segments Elected "Best Company for Access of the Year" by the International Awards for Powered Access (IAPA Awards) for the year of 2011 Number of contracts: 1,610 at the end of 1Q13

34

Motorized Access Equipment Rental market outlook

Current underutilization of motorized access equipment in Brazil and favorable regulation indicate significant growth potential in this market.

The Brazilian aerial platforms and telehandler fleet is very small compared to the US fleet; less than
3% Modest rental penetration of 15% in Brazil. Rental penetration is approximately 40% in the USA, 60% in Japan and 80% in England Recent regulation obliges the use of aerial platforms to lift people, increasing safety and productivity in the work site Brazilian fleet should increase at average annual rate of 14% in the next few years and reach

40,000 units by 2017

Source: Mills

35

In 2012, the Brazilian fleet of motorized access equipment grew 32.1% compared to 2011

+13.9% p.a.

+32.1%

+46.2% +34.9%

Source: Mills and Yengst Associates

36

Rental Financial performance

The Rental business segment presented an average revenue growth of 78% per year and average EBITDA growth of 88% per year in the period 2008-2012.
Net Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin (%)
CAGR 08-12: 88% CAGR 08-12: 78% 45%
273 253

58%

54%

53%

56%

56%

150
141

175

94

95

51
54 25

31 11

2008

2009

2010

2011

2012

1Q13LTM

2008

2009

2010

2011

2012

1Q13LTM

1 1Q13

LTM Last twelve months ended March 31, 2013.

37

Industrial Services
Rental Financial performance
In R$ millions

4Q12/4Q11 4Q12/3Q12

+35.3%

+21.6%

- 566 bps - 610 bps

- 148 bps +83 bps

+ 10.2%

+1.8%

Ocean Star Platform Angra dos Reis, RJ

* Excluding the negative effect of R$ 3.3 million of Allowance for Doubtful Debt (ADD) in 3Q11 1 ROIC: Return on Invested Capital. Until 4Q10, ROIC was calculated considering the effective income tax rate for the period, while in 1Q11 onwards ROIC was calculated considering a theoretical 30% income tax rate.

38

Industrial Services
Focus on large industrial plants, both on construction and maintenance phases Products offered during construction and maintenance: access structures rental and erection/dismantling services industrial painting and surface treatments thermal insulation Cross-selling with Heavy Construction business segment Recurring and less volatile revenue base Labor intensive, instead of capital intensive, as the other business segments Industries served: oil & gas, petrochemicals, pulp & paper, steel, among others Number of contracts: 108 at the end of 1Q13

39

Petrobras has announced its 2013 - 2017 Business Plan with investments totaling US$ 236.7 billion in this period
Petrobras total investment plan for 2013-2017 period: US$ 236.7 billion Petrobras pre-salt investment plan for 2013-2017 period: US$ 52.2 billion US$ 147.5 billion will be invested in E&P in Brazil, with the aim of increasing domestic oil production from

2.0 million bpd (Mbpd) in 2011 to 2.75 Mbpd in 2017, with 1.0 Mbpd related to pre-salt
Critical resources needed up till 2020:
CAGR10-20: +7.9%

65 drilling rigs 68 platform-vessels 361 special support vessels

US$ 43.2 billion will be invested in refining, of which 45% to expand the refining facilities, the major
refinery projects being Abreu e Lima (PE) and Comperj (RJ).
Source: Petrobras 2013-2017 Business Plan and Revista Exame (6/27/2012).

40

Servios Industriais Financial performance

The Industrial Services business segment presented an average revenue growth of 14% per year and average EBITDA growth of 18% per year in the period 2007-2012.
Net Revenue (R$ million) EBITDA (R$ million) and EBITDA Margin (%)
CAGR 07-12: 18% CAGR 07-12: 14% 8% 14% 15% 13% 10% 9% 9%

215 195

214

214

26
141

135 109

21 19

21

19

20

2007
1 1Q13

2008

2009

2010

2011

2012

1Q13LTM

2007

2008

2009

2010

2011

2012

1Q13LTM

LTM Last twelve months ended March 31, 2013.

41

Agenda

Who we are Mills Business segments

Growth Plan

42

We invested R$ 120 million in rental equipment in 1Q13, equivalent to 41% of our 2013 budget
Capex
in R$ million

450
400
379 15

430 18

350
163

Realized / 2013 Budget (%)

297 21 296

300
161

Rental
17

59%

250
200

124
161 6

Industrial Services

3%

25

150
104

185 5 60

128 8 73
0 25

100 50 0
2010 2011

112

Jahu - Residential and Commercial Heavy Construction

22%

40%

74

47

51 2012

54 2013 Budget

22 1Q13

43

We are present in 15 states of Brazil with 49 branches

Branch locations
As of March 31, 2013

Roraima

Amap

Amazonas Par Maranho Cear Rio Grande do Norte Paraiba Piaui Acre Tocantins Rondnia Mato Grosso Distrito Federal Bahia Sergipe Pernambuco Alagoas

Heavy Construction Jahu Industrial Services Rental

Mato Grosso do Sul So Paulo Espirito Santo Goias Minas Gerais

States with Mills Presence

Parana

Rio de Janeiro

(sede)

Santa Catarina

Rio Grande do Sul

44

Mills Investor Relations Tel.: + 55 21 2123-3700 E-mail: ri@mills.com.br www.mills.com.br/ri