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August 6th, 2015
Presentation of 2Q15 Results
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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
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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
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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
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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
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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
Presentation of 2Q15 Results – 8/06/2015
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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%
Presentation of 2Q15 Results – 8/06/2015
-0.8%
Ex clients under investigation
6.8%
3.2%
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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
Presentation of 2Q15 Results – 8/06/2015
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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.
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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
Presentation of 2Q15 Results – 8/06/2015
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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.
Presentation of 2Q15 Results – 8/06/2015
1 1
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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: faleabertamente@mills.com.br Phone: 0800 285 3900
Presentation of 2Q15 Results – 8/06/201512
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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%
Presentation of 2Q15 Results – 8/06/2015
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
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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%
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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
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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
Presentation of 2Q15 Results – 8/06/2015
18%
52%
26%
4%
0%0%
10%
20%
30%
40%
50%
60%
< 24 24-48 48-72 72-96 >96
16
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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
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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
Presentation of 2Q15 Results – 8/06/2015
Source: IPAF Powered Access Rental Market report, produced by Ducker
18
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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%
Presentation of 2Q15 Results – 8/06/2015
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
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20
Rental revenue breakdown in 2Q15
Public43%Private
50%
PPP7%
Source of funds
Industry29%
Infrastructure
61%
Others10%
Per sector
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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
LTM 2Q15 average = 62%
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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
Presentation of 2Q15 Results – 8/06/2015
Source: Valor Econômico newspaper, June 10, 2015
22
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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
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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%
Presentation of 2Q15 Results – 8/06/2015
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
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Residencial50%
Comercial36%
Outros15%
Rental revenue per segmentIn 2Q15
Rental revenues breakdown in 2Q15
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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
LTM 2Q15 average = 50%
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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
Presentation of 2Q15 Results – 8/06/2015
Built up area in square meters in the structure phase may
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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
28 Presentation of 2Q15 Results – 8/06/2015
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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 %
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Mills - Investor Relations
Tel.: +55 21 2123-3700
E-mail: ri@mills.com.br
www.mills.com.br/ri
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