BM&FBOVESPA: MILS3

Mills 2Q12 Results

Mills: Net earnings grew 73.5%, a new quarterly record

Rio de Janeiro, August 8, 2012 - Mills Estruturas e Servios de Engenharia S.A. (Mills) presented in the second quarter of 2012 (2Q12) record quarterly revenue and net earnings, 28.7% and 73.5% higher than the second quarter of 2011 (2Q11), respectively, as a result of its efforts to grow its businesses with profitability. Main highlights of Mills 2Q12 performance: Record net revenue of R$ 211.1 million, 28.7% higher than 2Q11. EBITDA of R$ 84.4 million, 45.5% above 2Q11. EBITDA margin of 40.0%, versus 35.4% in 2Q11. Record operational earnings of R$ 138.3 million, 39.3% greater than 2Q11. Record net earnings of R$ 39.2 million, 73.5% higher than 2Q11. Capex reached R$ 83.5 million, totaling investments of R$ 141.9 million in the first half of 2012 (1H12). Mills organic growth investment budget for 2012 was revised upward to R$ 256 million from R$ 127 million, in order to continue capturing the attractive opportunities in its target markets. Annualized return on invested capital (ROIC) of 13.6%, against 12.7% in 2Q11. Proposal for shareholder remuneration totaling a gross amount of R$ 21.8 million, equivalent to R$ 0.17 per share, to be paid as interest on equity, subject to approval at Mills Shareholders Meeting.
(d) (c) (b) (a)

Table 1 Main financial indicators

in R$ millions

2Q11 (A) 164.0 58.0 35.4% 22.6 12.7% 105.2

1Q12 (B) 199.1 86.2 43.3% 32.7 15.1% 58.4

2Q12 (C) 211.1 84.4 40.0% 39.2 13.6% 83.5

(C)/(B) % 6.0% -2.1% 20.1% 43.0%

(C)/(A) % 28.7% 45.5% 73.5% -20.7%

1H11 (D) 309.0 110.9 35.9% 44.8 13.2% 289.9

1H12 (E) 410.2 170.7 41.6% 71.9 14.3% 141.9

(E)/(D) % 32.8% 53.9% 60.5% -51.1%

Net revenue EBITDA EBITDA margin (%) Net earnings ROIC (%) Capex

The financial and operational information presented in this release, except when otherwise indicated, is in accordance with accounting policies adopted in Brazil, which are in accordance with international accounting standards (International Financial Reporting Standards)

Investor com investidores RelaesRelations Alessandra Gadelha Diretora de RI IR Officer Camila Conrado Especialista de RI IR Specialist Carolina Gonalves Analista de RI IR Analyst

Contact: + 55 21 212355 21 2123 3700 Contato: + 3700 ri@mills.com.br ri@mills.com.br

ri@mills.com.br

2Q12 Results Business Perspective

The demand for the heavy construction market continues quite promising, as shown by the indicator of expected level of activity for the infrastructure industry for the next six months, according to research conducted by the National Confederation of Industries (CNI Confederao Nacional da Indstria), which reached a value of 56.5 in July 2012, in which values above 50 indicate a prospect of growth of activity in the sector. Cement sales reached 33 million tons in 1H12, according to the National Union of Cement Industries (SNIC - Sindicato Nacional de Indstria do Cimento), with a year-over-year (yoy) growth rate of 9.3%. Realized capex for the PAC- Growth Acceleration Program reached a new record, R$ 119.9 billion in 1H12, 38.8% higher than the th first half of 2011 (1H11), with the largest portion 37.3% - for the Minha Casa, Minha Vida (MCMV) program, according to the 4 PAC 2 Report. According to the government evaluation, the goal of economic growth of around 4% in 2013 will depend on the expansion of investments in infrastructure, including the participation of the private sector through new concessions. Therefore, new concessions for airports, railways and highways are expected in the second half of 2012 (2H12), including stretches of the BR-116 (R$ 3.4 billion) and BR-040 (R$ 2.5 billion) highways, expansion of airports Galeo-RJ (R$ 0.1 billion) and Confins-MG (R$ 0.3 billion), So Paulo ring-rail (R$ 2 billion) and Integration of the Midwest Railway (R$ 6 billion). In addition, the winners of the concession contracts for the airports of Braslia and Viracopos announced in June investments of R$ 0.6 billion and R$ 1.4 billion, respectively, until the 2014 World Cup. According to the 3 Report of 2014 World Cup, 62% of the R$ 27.1 billion planned investments for the World Cup in Brazil are under construction, while only 1% has been completed. The construction work for the sports events represented around 20% of the revenue of the Heavy Construction division in 2Q12. As for the market for residential and commercial construction, demand continues to be driven by the expansion of housing credit availability, which reached 13.8% between January and May 2012, according to the Brazilian Central Bank (Bacen). Moreover, the growth rate of savings, which is the private banks main source for home financing, began to grow again, reaching 8.1% between January and July 2012, reducing the risk of shortage of funding. On the other hand, there was a yoy reduction of 37% in new building 1 announced for real estate companies in 1H12. The market for residential and commercial construction is very fragmented, with publicly held companies representing 25% of the total. For revenues of the Jahu Residential and Commercial Construction division, the participation of publicly held companies reduced from 19% in the first quarter of 2012 (1Q12) to 12% in 2Q12. Hence, we believe that the reduction in new building for listed companies will not affect the growth perspectives of the Jahu division, since private companies will continue their launches in order to meet the demand, besides the perspective of increasing industrialization in the sector and the restart of the geographic expansion of the Jahu division. Given our goal of expanding our share in the oil and gas sector, especially in the off-shore market, the investments in the oil and gas sector in Brasil are the main growth driver for the Industrial Services division. The new business plan for Petrobras encompasses investments of US$ 236.5 billion in the 2012-2016 period, of which 56% in Exploration and Production (E&P) in Brazil, aiming to more than double production by 2020. The oil and gas sector currently represents about 12% of Brazilian GDP and is expected to reach 20% in 2020, according to Exame magazine. The oil and gas and petrochemical industries together accounted for 68% of the revenue for the Industrial Services division in 2Q12.
rd

Revenue
Net revenues reached a new quarterly record in 2Q12, R$ 211.1 million, 6.0% higher quarter-over-quarter (qoq). 70.1% of Mills revenues was from equipment rental, while 21.1% was from technical support services, 6.4% from sales and 2.5% from other activities. Equipment rental revenue showed 7.3% qoq growth.

PDG, Cyrela, MRV, Rossi, Brookfield, Even, Helbor, Eztec, Tecnisa, Direcional, Trisul, Rodobens and Gafisa

2Q12 Results Costs and Expenses

The cost of goods and services sold (COGS), excluding depreciation, totaled R$ 72.8 million in 2Q12, with a qoq rise of 14.4%, mainly impacted by higher operational personnel costs in the Industrial Services division, due to the collective union agreement of approximately 5.7% in some locations, and material costs, mostly influenced by the higher level of maintenance activity in the Rental division. General, administrative and operating expenses (G&A) totaled R$ 53.9 million in 2Q12, 9.3% superior qoq, largely reflecting higher (e) expenses with contract coordination .

EBITDA
Cash generation, as measured by EBITDA, reached R$ 84.4 million in 2Q12, 2.1% lower qoq. The accumulated EBITDA in the last twelve months ended June 30, 2012, LTM EBITDA, totaled R$ 297.9 million. The EBITDA margin was 40.0% in 2Q12. The qoq reduction of R$ 1.8 million in EBITDA is explained by the increase of R$ 9.2 million in COGS and R$ 4.6 million in G&A, all excluding depreciation, partially offset by the increment of R$ 12.0 million in net revenues.

Net Earnings
Net earnings amounted to R$ 39.2 million in 2Q12, a new quarterly record, with a qoq expansion of 20.1%, influenced by the recognition of payment of interest on equity in this quarter.

ROIC
ROIC reached 13.6% in 2Q12, against 15.1% in 1Q12. In this quarter, there was an increase of invested capital concentrated at the end of the period, without sufficient time for rental, negatively impacting the ROIC. It is worth mentioning that the recognition of the interest on equity did not affect ROIC, since it is calculated using a theorical tax rate of 30%, rather than the effective tax rate.

Debt Indicators
Mills total debt was R$ 430.1 million as of June 30, 2012. At the end of 2Q12 our net debt position was R$ 400.8 million, versus R$ 384.4 million at the end of 1Q12. Our debt is 28% short-term and 72% long-term, with an average maturity of 2.5 years, at an average cost of CDI+1.1%. In terms of currency, 100% of Mills debt is in Brazilian reais. Our leverage, as measured by the net debt/LTM EBITDA, was at 1.3x as of June 30, 2012. The total debt/enterprise value 11.1%, while interest coverage, as measured by the LTM EBITDA/LTM interest payments, was 6.4x.
(g) (f)

was

Capex
Mills invested R$ 83.5 million in organic growth in 2Q12, of which the Rental division was responsible for 49.0%, Heavy Construction for 28.7%, Jahu for 15.0%, and Industrial Services for 1.3%. In order to continue capturing the attractive opportunities in our markets, maintaining our leverage target of 1.0x, the 2012 capex budget was revised upward to R$ 256 million from R$ 127 million. For further information, refer to press release Mills expands 2012 capex budget to R$ 256 million of July 16, 2012.

2Q12 Results Performance of the business segments Heavy Construction

The net revenue of the Heavy Construction division totaled R$ 41.9 million in 2Q12, with a 6.7% qoq expansion, due to the continuing recovery in demand in the heavy construction market. Rental revenue increased by R$ 3.8 million, or 11.6%, influenced by better prices and mix of equipment. The utilization rate is at normal levels, given our strategy to prioritize profitability. In this quarter we signed important new contracts, such as the Belo Monte and Teles Pires hydroelectric power plants, and Manaus airport, as well as new phases of the Comperj refinery, of subway line 4 and the Transcarioca expressway, in Rio de Janeiro, and new stretches of subway line 5, Monorail Line Gold and the beltway eastern section, in So Paulo. We also started participating in the Paranaenses stadium in Curitiba, and are now present in 11 of the 12 stadiums which will host the 2014 World Cup. The main projects in 2Q12, in terms of revenues, were: South and Southeastern regions: the Comperj refinery, Maracan stadium, car dumper at the Sudeste Port and CSN steel plant in Rio de Janeiro; subway lines 2 and 5, Embraport and the Barueri Cable-Stayed Bridge in So Paulo; Vale, Samarco and Gerdau mines in Minas Gerais; the Grmio stadium and BR-448 in Rio Grande do Sul; Midwest, North and Northeast regions: the Jirau and Colider hydroelectric power plants; Norte-Sul railway; Abreu e Lima refinery, Suape Petrochemical complex and the Recife stadium, in Pernambuco; Vale projects and the Suzano pulp and paper plant, in Par and Maranho; Itafoz mining, in Tocantins; and the Fonte Nova and Verdo stadiums in Bahia and Mato Grosso. COGS and G&A, excluding depreciation, remained stable between quarters, enabling an increase in the EBITDA margin from 48.0% in 1Q12 to 50.6% in 2Q12. EBITDA reached R$ 21.2 million in 2Q12, a 12.3% qoq increase. ROIC was 17.8% in 2Q12, versus 16.6% in 1Q12.

Jahu
The net revenue of the Jahu division totaled R$ 58.9 million in 2Q12, a new quarterly record, 12.3% higher qoq, with larger equipment rental and sales revenues contributing 50% and 27% of the increase, respectively. Rental revenue expanded by R$ 3.3 million, or 7.2%, of which higher rented volume represented R$ 1.9 million. The utilization rate remained at normal levels. There was an increase in COGS and G&A, excluding depreciation, mainly as a result of the strong growth in the sales revenues. EBITDA reached R$ 27.2 million in 2Q12, a new quarterly record. The EBITDA margin was 46.1%, as against 50.1% in 1Q12. ROIC was 14.8% in 2Q12, versus 15.6% in 1Q12.

Industrial Services
The net revenues of the Industrial Services division amounted to R$ 54.8 million in 2Q12, 7.7% qoq higher. This quarter we were affected by strikes and by the unusual rainy season in Camaari, Bahia, and by the increase in provision for labor claims, amounting to a negative impact of R$ 1.4 million in the operational result of the division. EBITDA amounted to R$ 4.7 million and the EBITDA margin was 8.5% in 2Q12. Excluding the events previously listed, the EBITDA of the division would total R$ 6.1 million, in line with the previous quarter, and the EBITDA margin would be 11.0% (versus 12.1% in 1Q12). ROIC reached 3.9% in 2Q12, versus 7.5% in 1Q12.

2Q12 Results Rental

The net revenue of the Rental division totaled R$ 55.4 million in 2Q12, in line with the previous quarter, as the arrival of new machines was concentrated in June, without sufficient time to rent them out in the quarter. The utilization rate remained at normal levels. There was an increase in COGS and G&A, excluding depreciation, mainly due to maintenance of telescopic handlers, given the expectation of the recovery of demand for them in 2H12, influenced by the work in the MCMV program. EBITDA reached R$ 31.4 million in 2Q12. The EBITDA margin was 56.6% in 2Q12, against 61.8% in 1Q12. ROIC was 16.3% in 2Q12, versus 20.3% in 1Q12, impacted by the equipment received at the end of the quarter, which was recorded in our asset base, without, as yet, generating results. With the increase of the 2012 capex budget of the Rental division from R$ 53 million to R$ 136 million, we will continue the process of geographic expansion.

Teleconference and Webcast

Date: August 9 , 2012, Thursday Time: 10:00 (New York time), 11:00 (Rio de Janeiro time) and 15:00 (London time) Teleconference: +1 786 924 6977 or +1 855 281 6021 (toll free), code: Mills Replay: +55 11 4688 6312 / code: 5650113# or www.mills.com.br/ri Webcast: www.mills.com.br/ri
th

2Q12 Results Tables

Table 2 Net revenue per type

in R$ millions

2Q11 (A) 105.4 43.3 7.3 8.0 164.0

1Q12 (B) 137.9 42.3 13.0 6.0 199.1

2Q12 (C) 147.9 44.5 13.5 5.2 211.1

(C)/(B) % 7.3% 5.2% 4.2% -14.1% 6.0%

(C)/(A) % 40.4% 2.8% 84.4% -35.5% 28.7%

1H11 (D) 202.1 80.9 12.9 13.0 309.0

1H12 (E) 285.8 86.8 26.5 11.2 410.2

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

Rental Technical support services Sales Others Total net revenue

Table 3 Net revenue per division in R$ millions

2Q11 30.6 34.7 57.5 41.2

% 18.6% 21.2% 35.1% 25.1%

1Q12 39.3 52.5 50.9 56.5

% 19.7% 26.4% 25.5% 28.4%

2Q12 41.9 58.9 54.8 55.4

% 19.9% 27.9% 26.0% 26.3%

1H11 62.4 63.9 107.7 74.9

% 20.2% 20.7% 34.9% 24.2%

1H12 81.3 111.4 105.7 111.9

% 19.8% 27.2% 25.8% 27.3%

Heavy Construction Jahu - Residential and Commercial Construction Industrial Services Rental Total net revenue

164.0 100.0% 199.1 100.0% 211.1 100.0% 309.0 100.0% 410.2 100.0%

Table 4 Cost of goods and services sold (COGS) and general, administrative and operating expenses (G&A) in R$ millions

2Q11
(h)

% 49.3% 4.3% 1.2% 6.3% 61.1% 38.9% 100.0%

1Q12 48.6 6.2 1.2 7.6 63.6 49.3 112.9

% 43.0% 5.5% 1.1% 6.7% 56.4% 43.6% 100.0%

2Q12 56.0 7.2 1.6 8.1 72.8 53.9 126.7

% 44.2% 5.7% 1.2% 6.4% 57.5% 42.5% 100.0%

1H11 98.1 8.0 2.5 12.0 120.7 77.4 198.1

% 49.5% 4.1% 1.3% 6.1% 60.9% 39.1% 100.0%

1H12 104.5 13.5 2.8 15.6 136.4 103.1 239.6

% 43.6% 5.6% 1.2% 6.5% 56.9% 43.1% 100.0%

Costs of job execution

52.2 4.5 1.3 6.7 64.7 41.2 106.0

Costs of sale of equipment Costs of asset write-offs Equipment storage COGS, ex-depreciation G&A Total COGS, ex-depreciation + G&A

Table 5 EBITDA per division and EBITDA margin in R$ millions

2Q11 14.1 13.5 8.1 22.3 58.0 35.4%

% 24.3% 23.2% 14.0% 38.4% 100.0%

1Q12 18.9 26.3 6.2 34.9 86.2 43.3%

% 21.9% 30.5% 7.2% 40.4% 100.0%

2Q12 21.2 27.2 4.7 31.4 84.4 40.0%

% 25.1% 32.2% 5.5% 37.2%

1H11 29.7 25.7 14.3 41.2

% 26.8% 23.2% 12.9% 37.1%

1H12 40.1 53.5 10.9 66.3

% 23.5% 31.3% 6.4% 38.8%

Heavy Construction Jahu - Residential and Commercial Construction Industrial Services Rental Total EBITDA EBITDA margin (%)

100.0% 110.9 100.0% 170.7 100.0% 35.9% 41.6%

2Q12 Results
Table 6 Investment per division

Realized 2Q11
in R$ millions

Budget 1H12 (A) 33.0 27.8 4.3 66.9 9.9 141.9 141.9 2012 (B) 52 44 7 136 17 256 256 55.4% (A)/(B) % 63.5% 63.3% 60.9% 49.2% 58.0% 55.4%

1Q12 9.0 15.4 3.2 26.0 4.8 58.4 58.4

2Q12 24.0 12.5 1.1 40.9 5.1 83.5 83.5

Heavy Construction Jahu - Residential and Commercial Construction Industrial Services Rental Corporate Organic growth Acquisition Total Capex

8.2 40.8 4.1 43.1 3.5 99.7 5.5 105.2

Table 7 Heavy Construction division financial indicators

2Q11
in R$ millions

1Q12 (B) 33.1 6.3 39.3 18.9 48.0% 16.6% 9.0 226.1 5.5

2Q12 (C) 36.9 5.0 41.9 21.2 50.6% 17.8% 24.0 239.4 6.0

(C)/(B) % 11.6% -19.6% 6.7% 12.3%

(C)/(A) % 51.7% -19.1% 37.3% 50.1%

1H11 (D) 49.3 13.1 62.4 29.7 47.6% 13.2%

1H12 (E) 70.0 11.3 81.3 40.1 49.3% 17.2% 33.0 232.8 11.5

(E)/(D) % 41.8% -13.5% 30.2% 35.0%

(A) 24.3 6.2 30.6 14.1 46.2% 12.1% 8.2

(i)

Net revenue Rental Technical support services, sales and others Total net revenue EBITDA EBITDA margin (%) ROIC (%) Capex Invested capital Depreciation

165.2% 5.9% 8.8%

192.8% 14.1% 17.8%

16.6 206.8 10.2

99.4% 12.6% 12.7%

209.7 5.1

Table 8 Jahu Residential and Commercial Construction division financial indicators

2Q11
in R$ millions

1Q12 (B) 45.3 7.2 52.5 26.3 50.1% 15.6% 15.4 345.4 7.1

2Q12 (C) 48.5 10.4 58.9 27.2 46.1% 14.8% 12.5 365.9 7.8

(C)/(B) % 7.2% 43.9% 12.3% 3.3%

(C)/(A) % 57.1% 171.0% 69.7% 101.8%

1H11 (D) 56.9 7.0 63.9 25.7 40.2% 14.0%

1H12 (E) 93.8 17.6 111.4 53.5 48.0% 15.2% 27.8 356.3 14.9

(E)/(D) % 64.8% 150.1% 74.2% 107.8%

(A) 30.9 3.8 34.7 13.5 38.8% 13.0% 40.8 216.9 3.2

Net revenue Rental Technical support services, sales and others Total net revenue EBITDA EBITDA margin (%) ROIC (%) Capex Invested capital Depreciation

-19.0% 5.9% 10.0%

-69.5% 68.7% 144.7%

77.8 196.2 5.9

-64.2% 81.6% 151.5%

2Q12 Results
Table 9 Industrial Services division financial indicators

2Q11
in R$ millions

1Q12 (B) 35.0 15.9 50.9 6.2 12.1% 7.5% 3.2 127.4 2.8

2Q12 (C) 37.6 17.2 54.8 4.7 8.5% 3.9% 1.1 127.3 2.9

(C)/(B) % 7.4% 8.5% 7.7% -24.2%

(C)/(A) % -5.7% -2.4% -4.7% -42.5%

1H11 (D) 77.8 30.0 107.7 14.3 13.2% 11.8%

1H12 (E) 72.6 33.1 105.7 10.9 10.3% 5.7% 4.3 127.4 5.7

(E)/(D) % -6.6% 10.4% -1.9% -23.9%

(A) 39.9 17.6 57.5 8.1 14.2% 14.2% 4.1 111.3 2.5

Net revenue Maintenance New plants Total net revenue EBITDA EBITDA margin (%) ROIC (%) Capex Invested capital Depreciation

-66.8% -0.1% 6.2%

-74.2% 14.4% 16.0%

6.3 109.9 4.9

-32.8% 16.0% 15.7%

Table 10 Rental division financial indicators

2Q11
in R$ millions

1Q12 (B) 50.5 6.0 56.5 34.9 61.8% 20.3% 26.0 353.2 9.3

2Q12 (C) 50.6 4.8 55.4 31.4 56.6% 16.3% 40.9 371.2 9.7

(C)/(B) % 0.3% -19.6% -1.8% -10.1%

(C)/(A) % 37.9% 6.9% 34.6% 40.7%

1H11 (D) 67.5 7.4 74.9 41.2 55.0% 17.2%

1H12 (E) 101.1 10.7 111.9 66.3 59.2% 18.3% 66.9 362.0 19.0

(E)/(D) % 49.8% 44.9% 49.3% 60.9%

(A) 36.7 4.5 41.2 22.3 54.1% 17.1% 43.1 260.3 6.4

Net revenue Rental Technical support services, sales and others Total net revenue EBITDA EBITDA margin (%) ROIC (%) Capex Invested capital Depreciation

57.3% 5.1% 4.1%

-5.2% 42.6% 51.1%

85.5 236.3 12.2

-21.8% 53.2% 55.7%

2Q12 Results Glossary

(a) EBITDA - EBITDA is a non-accounting measurement which we prepare and which is reconciled with our financial statement in accordance with CVM Instruction 01/2007, when applicable. We have calculated our EBITDA (usually defined as earnings before interest, tax, depreciation and amortization) as net earnings before financial results, the effect of depreciation of assets and equipment used for rental, and the amortization of intangible assets. EBITDA is not a measure recognized under BR GAAP, IFRS or US GAAP. It is not significantly standardized and cannot be compared to measurements with similar names provided by other companies. We have reported EBITDA because we use it to measure our performance. EBITDA should not be considered in isolation or as a substitute for "net income" or "operating income" as indicators of operational performance or cash flow, or for the measurement of liquidity or debt repayment capacity. (b) Operational earnings Net revenue from sales and services less the cost of products sold and services rendered, excluding depreciation. (c) Capex (Capital Expenditure) Acquisition of goods and intangibles for permanent assets. (d) ROIC (Return on Invested Capital) - Calculated as Operating Income before financial results and after the payment of income tax and social contribution (theoretical 30% income tax rate) on this income, divided by average Invested Capital, as defined below. ROIC is not a measure recognized under BR GAAP, and it is not significantly standardized and cannot be compared to measurements with similar names provided by other companies. Quarterly ROIC: ((Quarterly Operational Income (30% Income Tax Rate) + remuneration from affiliates) / Average Invested Capital of the last four months) * 4 Annual ROIC: (Annual Operational Income (30% Income Tax Rate) + remuneration from affiliates) / Average Invested Capital of the last thirteen months (e) Expenses with contract coordination - Expenses with contract coordination include personnel expenses with our project teams and commercial engineers, who are responsible for the management and supervision of each of our contracts. It is the most relevant item in G&A, representing from 50% to 60% of the total G&A. (f) Net debt - Gross debt less cash holdings. (g) Enterprise Value (EV) Company value at the end of the period. It is calculated by multiplying the number of outstanding shares by the closing price per share, and adding the net debt. (h) Job execution costs - Job execution costs include: (a) labor costs for erection and dismantling of the equipment rented to our clients, when such tasks are carried out by the Mills workforce; (b) equipment freight costs, when under Mills responsibility; (c) cost of materials used in the execution of our services, such as individual safety equipment (EPIs), paint, insulation material, wood, among others; and (d) cost of materials used in the maintenance of the equipment, when it is returned to our warehouse; and (e) cost of equipment rented from third-parties. (i) Invested Capital For the Company, invested capital is defined as the sum of its own capital (net equity or shareholders equity) and capital from third parties (total loans and other liabilities that carry interest, from banks or not), both being average capital from the beginning to the end of the period considered. By division, it is the average of the capital invested by the company weighted by the average assets of each division (net liquid assets plus PPE Property, Plant and Equipment).

2Q12 Results INCOME STATEMENT

in R$ millions

2Q11 164.0 (81.2) 82.8 (42.0) 40.7 (12.3) 5.4 (7.0) 33.8 (11.2) 22.6 125,495 0.18

1Q12 199.1 (87.4) 111.8 (50.2) 61.6 (12.6) 1.4 (11.3) 50.3 (17.6) 32.7 125,690 0.26

2Q12 211.1 (98.2) 112.9 (54.9) 58.0 (11.3) 1.0 (10.2) 47.8 (8.5) 39.2 126,149 0.31

Net revenue from sales and services Cost of products sold and services rendered Gross profit General and administrative expenses Operating profit Financial expense Financial income Financial result Profit before taxation 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$)

10

2Q12 Results BALANCE SHEET

in R$ millions

2Q11

1Q12

2Q12

Assets Current Assets Cash and cash equivalents Trade receivables Inventories Recoverable taxes Advances to suppliers Derivative financial instruments Other current assets Total Current Assets Non-Current Assets Trade receivables Recoverable taxes Deferred taxes Deposits in court 3.1 3.0 8.5 7.5 22.1 Investment Property, plant and equipment Intangible assets 88.0 698.4 42.0 828.4 Total Non-Current Assets Total Assets 850.4 1,203.3 2.4 30.9 6.8 11.0 51.2 87.4 897.2 47.2 1,031.7 1,082.9 1,299.2 2.5 30.4 7.0 11.4 51.4 87.4 943.0 49.1 1,079.5 1,130.9 1,372.1

179.0 127.5 10.1 22.2 9.0 5.2 352.9

30.3 140.1 15.1 22.8 3.8 4.2 216.3

29.3 156.5 15.0 27.5 7.0 1.3 4.7 241.2

11

2Q12 Results

in R$ millions

2Q11

1Q12

2Q12

Liabilities Current Liabilities Suppliers Borrowings and financings Debentures Salaries and payroll charges Income tax and social contribution Tax refinancing program (REFIS) Taxes payable Profit sharing payable Dividends payable Derivative financial instruments Other current liabilities Total Current Liabilities Non-Current Liabilities Borrowings and financings Debentures Provision for tax, civil and labor risks Tax refinancing program (REFIS) Other non-current liabilities Total Non-Current Liabilities Total Liabilities Stockholders' Equity Capital Earnings reserves Capital reserves Valuation adjustments to equity Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 525.1 144.4 (6.9) (10.7) 45.5 697.5 1,203.3 528.0 211.7 (4.7) 0.2 33.0 768.2 1,299.2 533.6 211.3 (3.8) 1.1 50.9 793.1 1,372.1 81.6 268.2 11.7 10.7 0.7 372.9 505.9 68.2 268.5 14.7 10.7 0.5 362.7 531.0 42.0 268.6 16.0 10.0 0.7 337.3 579.0 32.3 40.6 6.4 28.7 2.9 0.9 3.8 3.5 0.4 11.3 2.2 133.0 19.8 64.1 13.8 26.3 5.3 0.1 8.1 3.6 21.9 0.1 5.2 168.2 47.3 114.9 4.6 32.1 0.9 10.5 7.9 18.8 4.7 241.7

12

2Q12 Results CASH FLOW

in R$ millions Cash flow from operating activities Net income before taxation Adjustments Depreciation and amortization Provision for tax, civil and labor risks Expense on stock options Profit sharing payable 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 17.2 0.4 0.8 2.1 (6.3) 1.6 11.3 0.9 1.9 (0.1) 29.8 Changes in assets and liabilities Trade receivables Inventories Recoverable taxes Deposits in court Other assets Suppliers Salaries and payroll charges Taxes payable Other liabilities (6.1) (3.3) 7.2 (0.2) (1.7) 4.2 1.8 0.3 (5.1) (2.9) Cash from operations Interest paid Income tax and social contribution paid Profit sharing paid Lawsuits settled Net cash provided by operating activities 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 Cash flow from financing activities Capital subscription Shares in treasury Dividends and interest on capital invested paid Amortization of borrowings New borrowings / debentures Net cash provided by (used in) financing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period (24.1) (63.8) 295.1 207.3 174.7 4.3 179.0 0.4 (8.7) 3.4 (4.9) (4.9) 35.2 30.3 5.6 (0.0) (21.9) (7.1) 32.7 9.3 (1.0) 30.3 29.3 9.4 (3.4) (96.0) 8.1 (81.9) (73.0) 9.7 (63.3) (53.9) 9.5 (44.5) 60.8 (2.8) (8.5) 49.4 (7.2) (3.9) 3.4 (0.1) 9.3 (1.5) 1.3 (0.0) (1.0) 0.3 91.4 (2.5) (15.1) (7.9) (2.6) 63.3 (20.2) 0.1 3.9 (0.5) (4.9) (2.0) 5.8 (0.6) 1.0 (17.4) 69.4 (19.0) (16.2) 34.2 24.7 1.0 0.9 3.6 (7.4) 11.5 0.0 6.4 40.8 26.4 1.0 0.9 4.3 (6.1) 8.9 (0.0) 3.8 (0.1) 39.0 33.8 50.3 47.8

2Q11

1Q12

2Q12

13

2Q12 Results

This press release 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 government rules that are subject to change without previous notice. To obtain further information on factors that may give rise to results different from those forecasted by Mills, please consult the reports filed with the Brazilian Comisso de Valores Mobilirios (CVM, equivalent to U.S. SEC).

14