Agenda. Who we are. Mills Divisions. Growth Plan

Transcription

1 Mills Presentation

2 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 Comissão de Valores Mobiliários (CVM). 2

3 Agenda Who we are Mills Divisions Growth Plan 3

4 Mills at a Glance Uncontested market leader in providing temporary concrete formwork and tubular structures in the Brazilian market One of the major players in the industrial services and motorized access equipment Long-term relationship with the major companies in the sector Superior capacity and scale, scope of services and market coverage 4 divisions: Heavy Construction Jahu Industrial Services Rental 4

5 Mills Important Projects Excellent track-record of performance, having participated in the Brazilian largest projects over the last 59 years Rio Niterói bridge Itaipu Octávio Frias de Oliveira bridge Brasília City of Arts 5

6 Mills Financial performance Mills has excellent financial track record with average revenue growth of 37% per year and average EBITDA growth of 68% per year in the last four years. Net Revenues (R$ million) EBITDA (R$ million) and EBITDA Margin (%) CAGR 07-11: 68% CAGR 07-11: 37% % 30% 39% 35% 35% Acquisition of Jahu Start-up Equipment Rental Division 195 Sales of Events Division Entrance of PE Funds

7 Mills Financial performance Net earnings had an average annual growth of 72% p.a. in the last five years. Net earnings (R$ millions) Net debt (R$ millions) and Net debt/ebitda CAGR 07-11: 72% Net debt/ebitda 1.0x 2.1x 1.2x -0.1x 1.6x

8 Mills Financial performance per division R$ million 2011 Financial highlights per division % Total EBITDA Margin (%) ROIC (%) % Rental 53.4% 16.5% 500 Industrial Services 9.7% 5.9% % % Total Jahu - Residential and Commercial 42.4% 14.3% Net Revenue 23% 19% EBITDA 39% 9% 28% 24% Heavy Construction 43.9% Total 35.1% 12.1% 12.3% 8

9 Mills Desempenho da ação Ticker: MILS3 On March 30, 2012, Market Cap = R$ 2.9 billions Nov30, Apr15, Var. since Apr15,10 (IPO)* Mills % IBOVESPA % Small Cap % IMOB % *Updated until March 30,

10 Mills Shareholder Structure Position: 28/02/

11 Mills Main produtos Project 11

12 Mills Main produtos Concrete Forms 12

13 Mills Main produtos Shoring 13

14 14 Mills Main produtos Access

15 15 Mills Main produtos Motorized Access Equipment

16 Mills Competitive Advantage Widely recognized technical expertise, agility, innovative solutions and reliability granted Mills longstanding relationships with many of Brazil s major companies in the sector Reliability Agility and Machless Execution Creative Solutions National Coverage Tailor Made Projects Complete Product Portfolio 16

17 Mills Growth Drivers Exposure to the following drivers: Brazilian infrastructure investments, including PAC Brazilian real estate investments Brazilian industry investments, including oil & gas Investments to enable world events 2014 World Cup and 2016 Olympic Games 17

18 Agenda Who we are Mills Divisions Growth Plan 18

19 Heavy Construction Division Mané Garrincha Stadium Brasília, DF

20 Heavy Construction division 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 59 years of experience Critical success factor is reliability Main clients are the Brazilian largest contractors, such as São Paulo s Subway Yellow Line Santo Antonio Hydroelectric Power Plant Dutra Highway Overpass (São Paulo) 20

21 Heavy Construction market outlook Unparalleled infrastructure investments are expected for the next few years reinforced by major world events. Investments in Brazil should amount R$ 3.3 trillion in the period Industry: R$ 1.0 trillion, growth of 170% compared to the period Infrastructure: R$ 401 billion, growth of 62% compared to the period Other sectors: R$ 1.9 trillion Industry investments R$ 1,047 billion Others 493 Oil & Gas 378 Infrastructure investments R$ 401 billion Roads 51 Ports 18 Others 20 Energy 139 Mining 72 Railroads 60 Pulp & Paper 28 Chemical 40 Steel 36 Sanitation 41 Telecom 72 Source: BNDES - Visão do Desenvolvimento Report N o 95, June 20,

22 12 cities will host the 2014 World Cup in Brazil, demanding investments in urban mobility, airports and stadiums Planned investment for World cup In R$ billion Source: Mills, Ministry of Sports and Veja 22

23 Large project pipeline remains robust Curitiba Stadium Porto Alegre Stadium Natal Stadium Fortaleza Stadium Cuiabá Stadium Recife Stadium Amazônia Stadium Salvador Stadium Brasília Stadium Transoeste Belo Horizonte Stadium São Paulo Stadium Rio de Janeiro Stadium Highway Arch - RJ Transcarioca Highway Transolímpica Highway Monorail Line 17 Gold - SP Açu Superport Beltway - Eastern Section Subway Line 4 - RJ Carajás Railroad West-East Railroad Transordestina Railroad Beltway - Northern Section North - South Railroad Subway Line 5 - SP Hydroelectric Powerplant Jirau Hydroelectric Powerplant Santo Antônio Premium 2 Ceará Refinery Abreu e Lima Refinery - PE Hydroelectric Powerplant Belo Monte COMPERJ Refinery - RJ Premium 1 Maranhão Refinery 0,2 0,3 0,5 0,5 0,5 0,6 0,5 0,7 0,7 0,7 3,4 5,4 6,9 4,0 6,1 6,7 25,7 4,0 4,5 5,3 16,0 Scheduled dates for start and end of construction jobs 13,1 In R$ Billion Mills presence ,4 0,9 0,9 1,2 1,3 2,2 2,9 22,0 29,2 26,2 40,2 Source: Anuário Exame Infraestrutura 23

24 Jahu - Residential and Commercial Division Via construction project Brasília, DF 24

25 Jahu Residential and Commercial division Focus on residential and commercial construction Products: Engineering solutions and equipment sales and rental: formwork, scaffolding and shoring Market leader with strong brand name: Jahu Business acquired in 2008 Innovative product - Easy-Set aluminum formwork - to serve low income housing construction Main clients are the Brazilian largest real estate companies, such as 25

26 Residential and Commercial market outlook Governmental programs and the increasing penetration of real estate financing indicate solid growth potential for the residential and commercial real estate segment Brazilian housing deficit is of at least 7.2 million houses New 700,000 units per year are required to couple with the demographic growth of the Brazilian families Housing financing has increased 5x in the last five years, driven by credit availability, lower inflation and lower interest rate Housing financing is very small compared to other countries. In 2009, the Brazilian total housing financing/gdp was 3%, compared to 77% in England, 68% in USA, 28% in France and 20% in Chile. In 2010, the Brazilian total housing financing/gdp was 4% and it is expected to reach 11% by Government program for low income housing, Minha Casa Minha Vida, targets investments of R$ 278 billion in the period. Lack of labor, higher labor costs and need to shorten construction cycle will demand more industrialized processes in the Brazilian residential and commercial construction market. Source: Brazilian Central Bank, ABECIP Associação Brasileira das Entidades de Crédito Imobiliário e Poupança and PAC2 Report 26

27 The use of industrialized building processes in construction projects is still limited 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 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 Company facing lack of skilled labor? no 11 yes 89 Source: Sondagem Especial Construção Civil, April 2011, CBIC and CNI 1 The percentages do not sum 100% because each entrepreneur could choose up to three options 27

28 Real estate launches showed growth of 10% in relation to 2010, indicating continuous strong demand in the residential and commercial construction market in % 6% Source: reports from 13 public real estate companies and Mills analysis 28

29 Industrial Services Division Paul Wolff Plataform, Estaleiro Mauá (shipyard) Niterói, RJ 29

30 Industrial Services division 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 division Recurring and less volatile revenue base Labor intensive, instead of capital intensive, as the other divisions Industries served: oil & gas, petrochemicals, pulp & paper, steel, among others Unique exposure to Brazilian industrial capacity growth and oil & gas industry 30

31 Industrial Services market outlook Recent oil field discoveries have taken Brazil into a new level within the Oil & Gas scenario, while other basic industries are also due to receive significant new investments Driven by the recent pre-salt discoveries, Brazil oil & gas reserves have the potential to increase by more than 3x, from 15 to 51 billion boe, transforming Brazil into the world s 9 th hydrocarbons reserves holder Total investment in Oil & Gas in Brazil is expected to be R$ 378 billion in the period , of which R$ 303 billion, or 80%, from Petrobras Total investment in the Brazilian industry should amount R$ 1.0 trillion in the period Fixed investments in Brazil is expect to range from 19% to 22% of GDP in the next 3 years Source: Department of Energy of the US, Petrobras, ANP and BNDES 31

32 Petrobras has announced its business plan with investments totaling US$ billion in this period Petrobras total investment plan for period: US$ billion Petrobras pre-salt investment plan for period: US$ 53.4 billion US$ billion will be invested in E&P in Brazil, with the aim of increasing domestic oil production from 2.1 million bpd in 2010 to 3.1 million bpd in 2015, with 0.5 million bpd related to pre-salt Critical resources needed up till 2013: 26 drilling rigs 53 production platforms 465 special support vessels US$ 70.6 billion will be invested in refining, of which 50% to expand the refining facilities, the major refinery projects being Abreu e Lima (PE), Comperj (RJ) and Premium I (MA) Source: Petrobras Business Plan and Business Plan 32

33 Rental Division Motorized Access Equipment Energia Eólica de Praia Formosa Camocim, CE

34 Rental division - Motorized Access Equipment Rental Serves all Mills divisions 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 Business started in 2008 Cross-selling with all other Mills divisions 34

35 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 2% 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 17% in the next few years and reach 25,000 units by 2014 Source: Terex and Mills 35

36 In 2011, the Brazilian fleet of motorized access equipment grew 46.2% compared to Motorized access equipment fleet in thousand of units Fleet profile Brazil Total: 15, % p.a. 25 Telescopic handlers 12% % % 16 USA Total: 789,000 Aerial work platforms 88% 5 8 Telescopic handlers 22% Colunas1 2014E Aerial work platforms 78% Source: Mills and Terex 36

37 Agenda Who we are Mills Divisions Growth Plan 37

38 We invested R$ million in organic growth in 2011 Capex in R$ million Capex (%) % 6% % 17% 38

39 We are present in 13 states of Brazil with 43 branches Branch locations As of December 31, 2011 Roraima Amapá Amazonas Acre Rondônia Heavy Construction Mato Grosso Pará Tocantins Distrito Federal Maranhão Piaui Bahia Ceará Rio Grande do Norte Paraiba Sergipe Pernambuco Alagoas Jahu Industrial Services Rental Mato Grosso do Sul Goias São Paulo Minas Gerais Espirito Santo States with Mills Presence Parana Rio de Janeiro (sede) Santa Catarina Rio Grande do Sul 39

40 40 Mills: The Best Way to Invest in Brazilian Infrastructure Sector Forte e Sólido Strong Desempenho and Solid Financial Financeiro Performance Fortes Barreiras Strong De Entrada Barriers to Entry Experienced Equipe de Gestão Management Experiente Team Unprecedented Condições Macro Macroeconômicas Economic Incomparáveis Conditions Dinâmica Attractive Setorial Unique Modelo Business de Negócio Único com fortes Atraente Industry em todos Model with Solid Vantagens Dynamics os Segmentos in Competitive competitivas Each Business Advantages

41 Mills Investor Relations Tel.: ri@mills.com.br