Mills' 2Q12 Result

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Main Indicators
Revenue
COGS G&A

EBITDA
Financial Indicators per Division
Income Statement
Balance Sheet
Cash flow
Capex per division

Menu
Mills - Main financial figures

in R$ millions

Net revenue
EBITDA
EBITDA margin (%)
Net earnings

2T11
(A)
164.0

1T12
(B)
199.1

2T12
(C)

(C)/(B)
%

(C)/(A)
%

1S11
(D)

1S12
(E)

(E)/(D)
%

211.1

6.0%

28.7%

309.0

410.2

32.8%

-2.1%

45.5%

110.9

170.7

53.9%

35.9%

41.6%

58.0

86.2

84.4

35.4%

43.3%

40.0%

22.6

32.7

39.2

ROIC (%)

12.7%

15.1%

13.6%

Capex

105.2

58.4

83.5

20.1%
43.0%

73.5%
-20.7%

44.8

71.9

13.2%

14.3%

289.9

141.9

60.5%
-51.1%

Mills - Net revenue per type

in R$ millions

Rental

2T11
(A)

1T12
(B)

2T12
(C)

(C)/(B)
%

(C)/(A)
%

1S11
(D)

1S12
(E)

105.4

137.9

147.9

7.3%

40.4%

202.1

285.8

43.3

42.3

44.5

5.2%

2.8%

80.9

86.8

Sales

7.3

13.0

13.5

4.2%

84.4%

12.9

26.5

Others

8.0

6.0

5.2

-14.1%

-35.5%

13.0

11.2

164.0

199.1

211.1

6.0%

28.7%

309.0

410.2

Technical support services

Total net revenue

Mills - Net revenue per division

in R$ millions

Heavy Construction

2T11

1T12

2T12

1S11

18.6%

39.3

19.7%

41.9

19.9%

62.4

Jahu - Residential and Commercial Construction

34.7

21.2%

52.5

26.4%

58.9

27.9%

63.9

Industrial Services

35.1%

50.9

25.5%

54.8

26.0%

107.7

Rental
Total net revenue

30.6

57.5
41.2
164.0

25.1%
100.0%

56.5
199.1

28.4%
100.0%

55.4
211.1

26.3%
100.0%

74.9
309.0

Menu

(E)/(D)
%
41.4%
7.2%
104.8%
-13.9%
32.8%

1S12

20.2%

81.3

19.8%

20.7%

111.4

27.2%

34.9%

105.7

25.8%

24.2%

111.9

27.3%

100.0%

410.2

100.0%

Mills - Cost of goods and services sold (COGS) and the general, administrative and operating expenses (G&A)
in R$ millions

Costs of job execution

2T11

1T12

2T12

1S11

52.2

49.3%

48.6

43.0%

56.0

44.2%

98.1

Costs of sale of equipment

4.5

4.3%

6.2

5.5%

7.2

5.7%

8.0

Costs of asset write-offs

1.3

1.2%

1.2

1.1%

1.6

1.2%

2.5

Equipment storage

6.7

6.3%

7.6

6.7%

8.1

6.4%

12.0

COGS, ex-depreciation

64.7

61.1%

63.6

56.4%

72.8

57.5%

120.7

G&A
Total COGS, ex-depreciation + G&A

41.2
106.0

38.9%
100.0%

49.3
112.9

43.6%
100.0%

53.9
126.7

42.5%
100.0%

77.4
198.1

Menu

1S12

49.5%

104.5

43.6%

4.1%

13.5

5.6%

1.3%

2.8

1.2%

6.1%

15.6

6.5%

60.9%

136.4

56.9%

39.1%

103.1

100.0%

239.6

43.1%
100.0%

Mills - EBITDA per division

in R$ millions

Heavy Construction

2T11
14.1

Rental
Total EBITDA
EBITDA margin (%)

1T12

2T12

1S11

24.3%

18.9

21.9%

21.2

25.1%

29.7

23.2%

26.3

30.5%

27.2

32.2%

25.7

8.1

14.0%

6.2

7.2%

4.7

5.5%

14.3

22.3

38.4%

34.9

40.4%

31.4

37.2%

41.2

58.0

100.0%

86.2

100.0%

84.4

100.0%

13.5
Jahu - Residential and Commercial Construction
Industrial Services

35.4%

43.3%

40.0%

110.9
35.9%

Menu

1S12

26.8%

40.1

23.5%

23.2%

53.5

31.3%

12.9%

10.9

6.4%

37.1%

66.3

38.8%

170.7

100.0%

100.0%

41.6%

Menu
Mills - Capex per division
Realized
2T11

1T12

Budget

2T12

in R$ millions

Heavy Construction

1S12

2012

(A)

(B)

(A)/(B)
%

8.2

9.0

24.0

33.0

52

63%

Jahu - Residential and Commercial Construction

40.8

15.4

12.5

27.8

44

63%

Industrial Services
Rental
Corporate
Organic growth
Acquisition
Total Capex

4.1

3.2

1.1

4.3

61%

43.1

26.0

40.9

66.9

136

49%

3.5

4.8

5.1

9.9

17

58%

99.7

58.4

83.5

141.9

256

55%

5.5
105.2

58.4

83.5

141.9

256

55%

Menu
Heavy Construction Division - financial indicators

in R$ millions

2T11

1T12

2T12

(C)/(B)

(C)/(A)

1S11

1S12

(E)/(D)

(A)

(B)

(C)

(D)

(E)

Net revenue
Rental

24.3

33.1

36.9

11.6%

51.7%

49.3

70.0

41.8%

6.2

6.3

5.0

-19.6%

-19.1%

13.1

11.3

-13.5%

Total net revenue

30.6

39.3

41.9

6.7%

37.3%

62.4

81.3

30.2%

EBITDA

14.1

18.9

21.2

12.3%

50.1%

29.7

40.1

35.0%

EBITDA margin (%)

46.2%

48.0%

50.6%

47.6%

49.3%

ROIC (%)

12.1%

16.6%

17.8%

13.2%

17.2%

Technical support services, sales and others

Capex
Invested capital
Depreciation

8.2

9.0

24.0

165.2%

192.8%

16.6

33.0

99.4%

209.7

226.1

239.4

5.9%

14.1%

206.8

232.8

12.6%

5.1

5.5

6.0

8.8%

17.8%

10.2

11.5

12.7%

Jahu - Residential and Commercial Construction Division - financial indicators

in R$ millions

2T11

1T12

2T12

(C)/(B)

(C)/(A)

1S11

1S12

(E)/(D)

(A)

(B)

(C)

(D)

(E)

Net revenue
Rental

30.9

45.3

48.5

7.2%

57.1%

56.9

93.8

64.8%

3.8

7.2

10.4

43.9%

171.0%

7.0

17.6

150.1%

Total net revenue

34.7

52.5

58.9

12.3%

69.7%

63.9

111.4

74.2%

EBITDA

13.5

26.3

27.2

3.3%

101.8%

25.7

53.5

107.8%

EBITDA margin (%)

38.8%

50.1%

46.1%

40.2%

48.0%

ROIC (%)

13.0%

15.6%

14.8%

40.8

15.4

12.5

216.9

345.4

365.9

3.2

7.1

7.8

Technical support services, sales and others

Capex
Invested capital
Depreciation

14.0%

15.2%

-69.5%

77.8

27.8

5.9%

68.7%

196.2

356.3

81.6%

10.0%

144.7%

5.9

14.9

151.5%

-19.0%

-64.2%

Industrial Services Division - financial indicators

in R$ millions

2T11

1T12

2T12

(C)/(B)

(C)/(A)

1S11

1S12

(E)/(D)

(A)

(B)

(C)

(D)

(E)

Net revenue
Maintenance

39.9

35.0

37.6

7.4%

-5.7%

New plants

17.6

15.9

17.2

8.5%

-2.4%

57.5

50.9

54.8

7.7%

-4.7%

8.1

6.2

4.7

-24.2%

-42.5%

Total net revenue

EBITDA

77.8

72.6

-6.6%

30.0

33.1

10.4%

107.7

105.7

-1.9%

14.3

10.9

-23.9%

EBITDA margin (%)

14.2%

12.1%

8.5%

13.2%

10.3%

ROIC (%)

14.2%

7.5%

3.9%

11.8%

5.7%

3.2

1.1

Capex

4.1

-66.8%

-74.2%

6.3

4.3

-32.8%

Invested capital
Depreciation

111.3

127.4

127.3

-0.1%

14.4%

109.9

127.4

16.0%

2.5

2.8

2.9

6.2%

16.0%

4.9

5.7

15.7%

Rental Division - financial indicators

in R$ millions

2T11

1T12

2T12

(C)/(B)

(C)/(A)

1S11

1S12

(E)/(D)

(A)

(B)

(C)

(D)

(E)

Net revenue
Rental
Technical support services, sales and others
Total net revenue
EBITDA

36.7

50.5

50.6

0.3%

37.9%

67.5

101.1

49.8%

4.5

6.0

4.8

-19.6%

6.9%

7.4

10.7

44.9%

41.2

56.5

55.4

-1.8%

34.6%

74.9

111.9

49.3%

-10.1%

40.7%

60.9%

22.3

34.9

31.4

41.2

66.3

EBITDA margin (%)

54.1%

61.8%

56.6%

55.0%

59.2%

ROIC (%)

17.1%

20.3%

16.3%

17.2%

18.3%

Capex
Invested capital
Depreciation

43.1

26.0

40.9

57.3%

-5.2%

85.5

66.9

-21.8%

260.3

353.2

371.2

5.1%

42.6%

236.3

362.0

53.2%

6.4

9.3

9.7

4.1%

51.1%

12.2

19.0

55.7%

Menu
Mills - Income Statement
in R$ millions

2T11

1T12

2T12

Net revenue from sales and services

164.0

199.1

211.1

Cost of products sold and services rendered

(81.2)

(87.4)

(98.2)

82.8

111.8

112.9

(42.0)

(50.2)

(54.9)

Operating profit

40.7

61.6

58.0

Financial expense

(12.3)

(12.6)

(11.3)

Financial income

5.4

1.4

1.0

Financial result

(7.0)

(11.3)

(10.2)

Profit before taxation

33.8

50.3

47.8

(11.2)

(17.6)

(8.5)

22.6

32.7

39.2

125,495

125,690

126,149

0.18

0.26

0.31

Gross profit
General and administrative expenses

Income tax and social contribution expenses

Net income
Number of shares at the end of the period (in thousands)
Net income per shares at the end of the period (R$)

Menu
Mills - Balance Sheet
in R$ millions

2T11

1T12

2T12

Assets
Current Assets
Cash and cash equivalents

179.0

Marketable securities
Trade receivables

30.3

29.3

127.5

140.1

156.5

Inventories

10.1

15.1

15.0

Recoverable taxes

22.2

22.8

27.5

9.0

3.8

7.0

Advances to suppliers
Derivative financial instruments
Other current assets
Total Current Assets

1.3

5.2

4.2

4.7

352.9

216.3

241.2

Non-Current Assets
Trade receivables

3.1

2.4

2.5

Recoverable taxes

3.0

30.9

30.4

Deferred taxes*

8.5

6.8

7.0

Deposits in court

Investment
Property, plant and equipment
Intangible assets

7.5

11.0

11.4

22.1

51.2

51.4

88.0

87.4

87.4

698.4

897.2

943.0

42.0

47.2

49.1

828.4

1,031.7

1,079.5

850.4

1,082.9

1,130.9

Total Assets

1,203.3

1,299.2

1,372.1

in R$ millions

2T11

1T12

2T12

Total Non-Current Assets

Liabilities
Current Liabilities
Suppliers

32.3

19.8

47.3

Borrowings and financings

40.6

64.1

114.9

6.4

13.8

4.6

28.7

26.3

32.1

Income tax and social contribution

2.9

5.3

Tax refinancing program (REFIS)

0.9

0.1

0.9

Taxes payable

3.8

8.1

10.5

Profit sharing payable

3.5

3.6

7.9

Dividends payable

0.4

21.9

18.8

11.3

0.1

2.2

5.2

4.9

133.0

168.2

241.7

Debentures
Salaries and payroll charges

Derivative financial instruments

Other current liabilities
Total Current Liabilities

Non-Current Liabilities
Borrowings and financings
Debentures
Provision for tax, civil and labor risks
Deferred taxes

81.6

68.2

42.0

268.2

268.5

268.6

11.7

14.7

16.0

Tax refinancing program (REFIS)

10.7

10.7

10.0

0.6

0.5

0.7

Total Non-Current Liabilities

372.9

362.7

337.3

Total Liabilities

505.9

531.0

579.0

Capital

525.1

528.0

533.6

Earnings reserves

144.4

211.7

211.3

Other non-current liabilities

Stockholders' Equity

Capital reserves

(6.9)

(4.7)

(3.8)

(10.7)

0.2

1.1

45.5

33.0

50.9

697.5

768.2

793.1

1,203.3

1,299.2

1,372.1

Valuation adjustments to equity

Retained earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

(*) On 2Q12 there was a change in accounting practice in classification of the deferred taxes.
The outstanding amount is now presented on a net basis in the asset.
This reclassification is already reflected in the balance sheet for comparability purposes.

Menu
Mills - Cash flow
in R$ millions

2T11

1T12

2T12

Cash flow from operating activities

Net income before taxation

33.8

50.3

47.8

Adjustments
Depreciation and amortization

17.2

24.7

26.4

Provision for tax, civil and labor risks

0.4

1.0

1.0

Expense on stock options

0.8

0.9

0.9

Profit sharing payable

2.1

3.6

4.3

(6.3)

(7.4)

(6.1)

Gain on sale of fixed and intangible assets

Marketable securities income
Interest, monetary and exchange rate variation on loans, contingencies and deposits in court
Tax refinancing program (REFIS)
Allowance for doubtful debts
Present value adjustment

1.6
11.3

11.5

8.9

0.9

0.0

(0.0)

1.9
(0.1)

6.4
-

3.8
(0.1)

29.8

40.8

39.0

Trade receivables

(6.1)

(7.2)

(20.2)

Inventories

(3.3)

(3.9)

0.1

7.2

3.4

3.9

Deposits in court

(0.2)

(0.1)

(0.5)

Other assets

Changes in assets and liabilities

Recoverable taxes

(1.7)

9.3

(4.9)

Suppliers

4.2

(1.5)

(2.0)

Salaries and payroll charges

1.8

1.3

5.8

Taxes payable

0.3

(0.0)

(0.6)

Other liabilities

(5.1)

(1.0)

1.0

(2.9)

0.3

(17.4)

Cash from operations

60.8

91.4

69.4

Interest paid

(2.8)

(2.5)

(19.0)

Income tax and social contribution paid

(8.5)

(15.1)

(16.2)

Profit sharing paid

(7.9)

Lawsuits settled

(2.6)

Net cash provided by operating activities

49.4

63.3

34.2

Cash flow from investment activities

Marketable securities
Acquisitions of investments
Acquisitions of fixed and intangible assets
Revenue from sale of non current and intangible assets
Cash used in investing activities

9.4

(3.4)

(96.0)

(73.0)

(53.9)

8.1

9.7

9.5

(81.9)

(63.3)

(44.5)

Cash flow from financing activities

Capital subscription

0.4

Shares in treasury

Costs of issues of shares

Dividends and interest on capital invested paid

5.6
(0.0)
-

(24.1)

(21.9)

Amortization of borrowings

(63.8)

(8.7)

(7.1)

New borrowings / debentures

295.1

3.4

32.7

Net cash provided by (used in) financing activities

207.3

(4.9)

9.3

Increase in cash and cash equivalents

174.7

(4.9)

(1.0)

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

4.3

35.2

30.3

179.0

30.3

29.3