Mills 1Q15 results

Investor Relations

BM&FBOVESPA: MILS3 and OTC-US: MILTY

Mills: Operational cash flow increases 4.0% quarter-over-quarter

Rio de Janeiro, May 6th, 2015 - Mills Estruturas e Servios de Engenharia S.A. (Mills) presented net revenues of R$ 163.9 million
in the first quarter of 2015 (1Q15), a reduction of 9.9% in relation to the fourth quarter of 2014 (4Q14), although with higher
operational cash generation and net cash flow.
2015 has been marked by uncertainties in the economy as well as in the infrastructure and oil and gas sectors. Our results reflect
the commonly-felt effects of weak economic cycles lower demand, price pressure, higher level of doubtful debt, and,
consequently, lower margins. In this scenario, we will seek improvements in our results through internal efforts into: (i) operational
improvement, (ii) synergies among the business units, (iii) sales of assets and (iv) reduction of expenses.
The highlights of Mills performance in 1Q15 were:

Net revenues of R$ 163.9 million, 21.1% below the amount registered in the first quarter of 2014 (1Q14).

Maintenance costs reduced 15.1% in relation to 4Q14, similar to an annualized amount of R$ 22.3 million.

General, administrative and operating expenses (G&A)1 8.9% lower than 4Q14, similar to an annualized amount of R$ 14.2
million.

EBITDA(a) of R$ 47.4 million, with a drop of 55.9% yoy, impacted by lower revenues and higher allowance for doubtful debt
(ADD).

Net loss of R$ 14.5 million and Return on invested capital (ROIC)(b) of 4.0%.

Operational cash flow of R$ 49.3 million, with a 4.0% growth quarter-over-quarter (qoq).

Capex(c) of R$ 6.4 million, of which R$ 1.2 million for replacement of rental equipment.

Positive net cash flow(d) of R$ 70.3 million, versus negative amount of R$ 13.4 million in 1Q14.

Approval in General Shareholder meeting of a gross shareholder remuneration value of R$ 25.1 million, as interest on capital,
referring to 2014, paid on May 6, 2015.

Completion of principal payments expected for 2015, of R$ 131.2 million, in April.

1Q14
in R$ million

4Q14

1Q15

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Net revenue

207.8

181.9

163.9

-21.1%

-9.9%

EBITDA

107.5

55.6

47.4

-55.9%

-14.7%

EBITDA margin (%)

51.7%

30.6%

28.9%

Net earnings (Loss)

33.9

-6.2

-14.5

n.a.

n.a.

ROIC (%)

13.8%

6.6%

4.0%

Capex

102.3

22.6

6.4

-93.7%

-71.7%

Table 1 Key financial indicators

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 - IFRS).

Excluding depreciation and allowance for doubtful debt (ADD)

Business Perspective
According to research conducted by the National Confederation of Industry (CNI Confederao Nacional da Indstria),
expectations for the infrastructure sector deteriorated in the last months, as indicated by the expected level of activity, which
reached 43.52 points in April 2015, below the value recorded in April 2014, of 53.0 points.
Investment-wise, according to the BNDES (Banco Nacional de Desenvolvimento Econmico e Social), its disbursements for
infrastructure in Brazil should reach R$ 60 billion in 2015, similar to the amount in 2014, with a focus on the Energy and Logistics
areas.
In the medium term, there are great uncertainties, besides the ones caused by the ongoing investigations, which can harm the
continuity of investments in infrastructure. The Brazilian Government intends to stimulate private sector participation in
concessions, aiming at economic growth, without damaging its fiscal adjustment. However, the success of the concession program
will depend on the adjustment of the concession model and its financing options. In the first half of the year, studies are expected
to evaluate the willingness of the private sector to participate in the concessions for airports, waterways and dredging of ports,
whilst auctions of highways with studies already concluded should take place in the second half of the year.
Real estate market indexes continue to worsen. According to CNI research, the activity level at the end of March 2015 was at 412
points, lower than the same month of the previous year, when it was at 48 points. New launches announced by the listed real
estate companies3 presented a yoy reduction of 61.1% in the first quarter of 2015, in relation to the previous year, while sales fell
by 21.4% in the same period. According to Criactive, a real estate market research company, because of the low number of
launches in 2013 and 2014 and delays, construction activity in the first half of 2015 is more concentrated on the finishing stages,
with a significant reduction in constructed area measured in square meters at the structure phase, when Mills equipment is more
demanded.
The market for motorized access equipment is highly exposed to the infrastructure construction segment as well as the oil and
gas industry, which may be affected by the uncertainties caused by the ongoing investigations.

Revenue
Net revenue reached R$ 163.9 million in 1Q15, with a 9.9% drop qoq, due to a R$ 17.0 million, or 11.4%, reduction in rental
revenues. Lower rental volumes were responsible for R$ 8.2 million of this contraction, with price and mix responsible for R$ 8.7
million.
Sales, technical assistance and other revenues were in line yoy, since the increase of revenues in Heavy Construction was offset
by the reduction in the Real Estate business unit.

Costs and Expenses

The cost of goods and services sold (COGS), excluding depreciation, totaled R$ 47.1 million in 1Q15, 9.9% higher yoy, although
with an 8.6% qoq drop. Cost of sales rose qoq, reflecting an increase in sales volumes, although there was a 15.1% drop in
maintenance costs - inventory and execution costs, due to a reduction of 39.4% in freight costs and of 12.8% in material
consumption costs.
Maintenance unit cost has already reduced by around 20% since the beginning of the changes in the operations of the Heavy
Construction and Real Estate business units initiated in the third quarter of 2014 (3Q14). Due to deferred maintenance of our
equipment, these savings are not completely visible in the short term, but should be from the second half of the year when
maintenance will be normalized.
There was no significant reduction in personnel costs because of the insourcing of labor for truck-loading, a cost which is the
clients responsibility, therefore generating a corresponding revenue, and avoiding labor liabilities.

2
3

Values above 50 indicate a prospect of growth of activity in the sector for the next six months.
Cyrela, Even, Eztech Gafisa, Helbor, MRV, Rodobens and Tecnisa.

1Q15 Mills Results

G&A, excluding depreciation and ADD, amounted to R$ 48.44 million in 1Q15, being 6.8% lower yoy, showing the first results of
our cost reduction initiatives. Compared to the previous year, we reduced the cost of contract coordination by 13.6%, the
administrative costs by 5.9%, the travel expenses by 36% and the third parties expenses by 27%. General services expenses
increased 2.8%, below inflation growth, despite the opening of four Rental branches.
Additionally, we incurred in restructuring costs of R$ 1.0 million in 1Q15, totaling R$ 6.9 million since 3Q14.
We will maintain our focus on reducing those expenses which clearly do not affect the capacity for business generation and our
service quality, and we hope to continue to see improvements coming from these actions, such as, for instance: (i) a leaner
corporate structure and, thus, the disposal of some administrative and management positions; (ii) procurement centralization; and
(iii) insourcing of some third-party services, such as IT; among others.
ADD amounted to R$ 21.0 million, representing 12.8% of net revenues in 1Q15, versus 3.1% in 1Q14. At the end of 2014, we
adopted a more conservative approach related to possible impacts of current investigations and not because of real payment
issues. As a result, we downgraded the credit rating of those clients and consortiums, regardless of whether they are majority or
minority participants, who are somehow related to current investigations. Furthermore, some companies entered into judicial
recovery and, consequently, we provisioned 100% of their net receivables. This credit downgrade alone generated a provision of
R$ 9.8 million, equivalent to 6.0% of net revenues, in 1Q15.
On a consolidated basis, the revenues generated from these clients were similar to the amount paid by them, and represented
around 24% of 1Q15 net revenues. Our net receivables exposure to these companies totaled R$ 27 million at the end of March
2015, versus R$ 37 million at the end of 2014.

EBITDA
Cash generation, as measured by EBITDA, reached R$ 47.4 million in 1Q15 with a 14.7% drop qoq. The qoq EBITDA contraction
was mainly due to rental revenue reduction, partially offset by lower COGS and G&A. The EBITDA margin was 28.9% in 1Q15,
versus 30.6% in 4Q14. Excluding ADD related to the ongoing investigations, EBITDA would total R$ 57.2 million, with EBITDA
margin of 34.9%, in 1Q15.
Accumulated EBITDA for the twelve months ended March 31, 2015, LTM EBITDA, totaled R$ 275.6 million. Excluding nonrecurring items, such as Easy Set and inventory provisions (R$ 14.5 million), restructuring indemnities (R$ 6.9 million) and ADD
related to the effects of ongoing investigations (R$ 18.7 million), LTM EBITDA would be R$ 315.7 million.

Net Earnings
Mills presented a net loss of 14.5 million in 1Q15, versus a R$ 6.2 million loss in 4Q14. The decrease of R$ 8.4 million qoq in
results is related, mainly, to EBITDA contraction (R$ 8.2 million) and to an increase in negative financial results (R$ 3.5 million),
partially offset by tax reductions (R$ 2.9 million).
The financial result was a negative R$ 18.4 million in 1Q15, against a negative R$ 14.8 million in 4Q14, since higher interest rates
more than offset gross debt reduction in the period.

ROIC
ROIC reached 4.0% in 1Q15, against 13.8% in 1Q14. This drop yoy is mainly related to a contraction in operational profit, due to
higher idle capacity, lower prices and the increase in ADD in the three business units.

Debt indicators
Mills total debt was R$ 712.0 million as of March 31st, 2015. At the end of the quarter our net debt(e) position was R$ 498.0 million,
versus R$ 551.7 million at the end of 2014.
Our debt is 17% short-term and 83% long-term, with an average maturity of 2.3 years, at an average cost of CDI+0.95%. In terms
of currency, 100% of Mills debt is in Brazilian Reais.
4 G&A which is the sum of the Rental, Heavy Construction and Real Estate business units.

1Q15 Mills Results

The debt amortization schedule includes payment of R$ 206 million as principal and interest in 2015, of which payments of R$
41.2 million and R$ 90.0 million of principal were already paid in 1Q15 and in April respectively, without rolling over, therefore
reducing our gross debt.
Our leverage, as measured by net debt/LTM EBITDA, was at 1.8x as of March 31, 2015. The total debt/enterprise value(f) was
41.4%, while interest coverage, as measured by LTM EBITDA/LTM interest payments, was 3.7x.
Due to the great uncertainty related to the magnitude and duration of the weak construction cycle in Brazil, we remain cautious;
reducing expenses and preserving cash. Even in a negative scenario, the Company does not see any liquidity risk, being capable
of honoring its financial obligations.

Free Cash Flow

Mills presented a free cash flow, measured by operational cash flow less investments, of R$ 70.3 million, against R$ 45 million in
previous quarter.
Cash flow was positively affected by non-cash items (R$ 68.9 million), and because of a positive variation in receivables (R$ 4.3
million), and recoverable taxes (R$ 7.2 million).
Mills invested R$ 6.4 million in 1Q15, of which R$ 1.2 million in rental equipment, mainly for the replacement of Real Estate and
Heavy Construction equipment, which suffered losses or damages during the rental period and which are reimbursed by clients.
We invested R$ 2.6 million in our branch facilities, related to changes of address and to the Rental geographic expansion plan.
Furthermore, R$ 1.7 million was invested in software licenses and improvements in our SAP system.
Because of the nature of our business, in times of lower investments such as foreseen for 2015, in which we have budgeted for
a Capex of R$ 33.6 million, the Company tends to be a cash generator.
Because of the characteristics of Heavy Construction and Real Estate equipment, and the need for larger investments in rebuilding
Rental equipment only from the 7th year of usage on, the Company is able to maintain low investment levels for a couple of years,
if necessary, without reducing its operational capacity.
Additionally, we continue with our efforts to sell semi-new equipment, especially in the Rental and Real Estate business units.
Payments related to the sale of semi-new equipment and indemnities related to loss of our equipment during the rental period
positively impacted 1Q15 cash generation by R$ 27.5 million.

Share buyback program

On November 10th, 2014, Mills Board of Directors approved a program to repurchase common shares of Mills issuance, with
the objective of acquiring up to 4,000,000 shares, with a deadline of 365 days as of the date of approval, to be held in treasury
and subsequent cancellation or disposal, including in the context of any exercise of options under its stock option program, in the
case of exercise of options. Up to March 31st, 2014, the Company acquired and kept in treasury 2,285,300 shares, with a total
value of R$ 19.8 million of which 1,102,400 shares with a total value of R$ 8.8 million were bought in 1Q15.
While uncertainties continue, we will not buy common shares, regardless of the stock price, aiming at preserving cash generation
for the Company.

Performance of the business units

Rental
Net revenue from the Rental business unit amounted to R$ 79.6 million in 1Q15, with a reduction of 5.2% qoq and of 18.2% yoy.
Rental revenue reached R$ 69.3 million, with a reduction of R$ 2.5 million, or 3.4%, qoq, with lower rental volume responsible for
R$ 3.1 million of the reduction, partially offset by the positive effect of R$ 0.7 million of price and mix.
The slowdown in investments in the Oil and Gas sector contributed to a reduction in utilization rate qoq. Since December, we are
facing increasing returns of equipment from Petrobras refineries and shipyards at the construction phase, or from existing ones
which depend on Petrobras investment plan, all contributing to an increase in our idle capacity. The utilization rate average for
the twelve months ending March 31, 2015 was 61.3%.

1Q15 Mills Results

Sales of semi-new equipment totaled R$ 3.9 million in 1Q15. We will focus on exporting semi-new equipment, taking advantage
of the depreciation of the Brazilian Real, which makes our equipment more competitive in the international market. However, the
equipment has to be delivered ready for rental and, therefore, needs heavy maintenance, which requires technician time and
involves materials costs and spare parts. Hence, the sales of semi-new equipment will occur as we carry out the maintenance
needed prior to delivery.
EBITDA totaled R$ 34.4 million in 1Q15, with an EBITDA margin of 43.3%, negatively impacted by the reduction in the utilization
rate and the increase in ADD, which reached 10.5% of net revenues. Excluding the credit downgrade of clients involved in ongoing
investigations, the EBITDA would reach R$ 38.7 million, with an EBITDA margin of 48.6%.
There was a COGS reduction of 19.5% qoq, due to lower sales volumes, lower freight costs, less consumption of material and
fewer staff, and a qoq reduction of 7.5% of G&A, excluding ADD. ADD totaled R$ 8.3 million in 1Q15, against R$ 7.6 million in
4Q14 and R$ 2.5 million in 1Q14.
ROIC LTM totaled 8.8% in 1Q15, against 11.5% in 4Q14, mainly due to a yoy reduction of 65.8% in operating profit in 1Q15.

Heavy Construction
Rental revenues for Heavy Construction totaled R$ 51.1 million in 1Q15, at a similar level to the same period of last year, since
sales, technical assistance and others doubled, offsetting the reduction of 16.7% in rental revenues yoy. There was a reduction
in the utilization rate, with average utilization of 64.8% in the twelve months ended March 31, 2015. Lower rental volumes caused
a R$ 3.8 million reduction in rental revenue qoq, while price and mix caused a negative impact of R$ 3.2 million.
As of today, Lava-Jato (Car Wash) investigations have not caused relevant changes in the development of construction projects
for which our services have been hired. However, many construction projects continue to evolve at a slow pace, for different
reasons, without a clear connection to the ongoing investigations. We continue to work on the management of the risks involved,
by being conservative in credit analysis, rigorous in the collection process and seeking to diversify our client base.
The main projects of 1Q15, in terms of revenue were:

South and Southeastern regions: Olympic Park, and subway line 4, in Rio de Janeiro; Viracopos airport, subway line 5, sewage
treatment station in Barueri and the north beltway, in So Paulo; CSN and Gerdau projects, and the BR-381 and BR-040
highways in Minas Gerais; and the Klabin cellulose plant in Paran.

Midwest, North and Northeastern region: Jirau and Colder hydroelectric power plants; Oeste-Leste and Transnordestina
railroads; Transposition of the So Francisco river; Salvador subway, in Bahia; the Companhia Siderrgica do Pecm steel
mill, in Cear; Vales S11D project, in Par and Maranho; and Cuiabs VLT, in Mato Grosso.

EBITDA was R$ 12.9 million in 1Q15, with a 49.5% reduction yoy, reflecting, above all, a significant increase in ADD, from 1.6%
of net revenues in 1Q14 up to 17.3% in 1Q15. The EBITDA margin was 25.3%, versus 31.0% in 4Q14 and 50.2% in 1Q14.
Excluding the credit downgrade of the clients involved in the ongoing investigations, EBITDA would reach R$ 17.9 million in 1Q15,
with an EBITDA margin of 35.0%.
There was a COGS increase qoq due to larger sales volumes and asset write-offs, related to larger sales and indemnities,
respectively. Excluding these items, COGS presented a reduction of 23.1% qoq, against a 16.0% decrease in rental revenue in
the same period. Excluding ADD, G&A remained stable qoq.
ROIC LTM totaled 7.0%, against 9.9% in 4Q14, mainly due to a reduction of 85.4% in operating profit in 1Q15 yoy.

Real Estate
Net revenue from Real Estate amounted to R$ 33.2 million in 1Q15, 44.2% lower than 1Q14 and a reduction of 26.9% qoq. The
Brazilian Real Estate market has been deteriorating, with the number of new constructions significantly lower than the
constructions in the demobilization stage, continuously reducing the utilization rate since November 2013, reaching an average
of 54.9% in the twelve months ended March 31, 2015. Rental revenues decreased R$ 7.6 million qoq, with the lower rented
volume responsible for R$ 4.2 million and price and mix for a negative effect of R$ 3.4 million.

1Q15 Mills Results

Net revenue totaled R$ 4.2 million in 1Q15, of which R$ 1.9 million of semi-new equipment. We will continue with our efforts to
sell semi-new equipment to minimize the negative effects of the weaker economic cycles in our results.
Lower freight and material costs were offset by the increase in personnel costs qoq, due to insourcing of labor for truck-loading,
a cost which is the clients responsibility. Furthermore, we should have our deferred equipment maintenance equalized by the
second half of 2015. G&A, excluding ADD, decreased 14.9% qoq, mainly due to a change made in the corporate structure at the
end of 2014, creating a leaner hierarchical structure aiming at creating synergy between the Heavy Construction and Real Estate
business units.
EBITDA reached R$ 0.1 million in 1Q15, with an EBITDA margin of 0.2%, negatively affected by lower rental volumes and prices
and an increase in ADD, which reached 12.0% of net revenues, against 5.5% in 1Q14.
ROIC LTM totaled -3.3%, against 0.4% in 4Q14, mainly due to the yoy reduction of R$ 23.9 million in the operating profit.

Teleconference and Webcast

Date: Wednesday, May 7, 2015
Time: 10 am (NY time) / 11:00 pm Rio de Janeiro time / 2:00 pm London time
Teleconferncia: +1 786 924-6977 (Dial-in) or +1 888 700-0802 (Toll-free); Code: Mills
Replay: +55 11 3193-1012 or +55 11 2820-4012, cdigo: 1709927# or www.mills.com.br/ri
Webcast: www.mills.com.br/ri

1Q15 Mills Results

Tables
Table 2 Net revenue per type
in R$ million

1Q14

4Q14

1Q15

(C)/(A)

(C)/(B)

(A)

(B)

(C)

176.7

149.4

132.4

-25.1%

-11.4%

Technical support services

2.5

1.3

1.7

-32.7%

34.8%

Sales

17.1

18.6

17.9

4.8%

-3.5%

Others

11.5

12.7

11.9

3.3%

-6.5%

207.8

181.9

163.9

-21.1%

-9.9%

1Q14

4Q14

1Q15

Heavy construction

51.0

24.6%

52.5

28.9%

51.1

31.2%

Real estate

59.5

28.6%

45.4

25.0%

33.2

20.3%

Rental

97.3

46.8%

83.9

46.1%

79.6

48.6%

207.8

100%

181.9

100%

163.9

100.0%

Rental

Total net revenue

Table 3 Net revenue per business unit
in R$ million

Total net revenue

Table 4 Cost of goods and services sold (COGS) and general, administrative and operating expenses (G&A), ex-depreciation
em R$ milhes

1Q14

4Q14

1Q15

Costs of job execution

22.2

21.9%

22.4

17.6%

18.1

15.6%

Costs of sale of equipment

8.9

8.7%

10.5

8.2%

10.9

9.3%

Costs of asset write-offs

1.7

1.6%

3.9

3.1%

4.7

4.1%

Equipment storage

10.1

10.0%

14.7

11.5%

13.3

11.4%

COGS

42.8

42.3%

51.5

40.4%

47.1

40.4%

G&A ex-ADD

52.0

51.3%

53.9

42.2%

48.5

41.6%

ADD

6.5

6.4%

22.2

17.4%

21.0

18.0%

101.4

100%

127.7

100%

116.5

100%

Total COGS + G&A

Table 5 EBITDA per business unit and EBITDA margin

in R$ million

1Q14

4Q14

1Q15

Heavy Construction

25.6

23.8%

16.3

29.3%

12.9

27.2%

Real Estate

23.5

21.8%

6.1

11.0%

0.1

0.1%

Rental

58.4

54.3%

33.2

59.7%

34.4

72.6%

Total EBITDA

107.5

100%

55.6

100%

47.4

100%

EBITDA margin (%)

51.7%

30.6%

28.9%

Table 6 Reconciliation of EBITDA

in R$ million

1Q14

4Q14

1Q15

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Results of continuing operations

33.9

-6.2

-14.5

n.a.

n.a.

Financial result

-16.5

-14.8

-18.4

11.1%

23.8%

Income tax and social contribution expenses

-16.5

-3.0

-0.1

-99.4%

-96.8%

Operational Results before Financial Result

66.9

11.6

4.0

-94.0%

-65.6%

Depreciation

39.6

43.4

43.4

9.6%

0.0%

Expenses (revenues) related to the Industrial services former

business unit

1.1

0.7

0.1

-86.8%

-85.8%

107.5

55.6

47.4

-55.7%

-14.8%

EBITDA

1Q15 Mills Results

Table 7 Investment per business unit

Actual
in R$ million

1Q14

4Q14

Budget
1Q15

2015

(A)/(B)

(A)

(B)

Rental equipment
Heavy Construction

15.0

12.1

0.5

7.0

7.1%

Real Estate

4.5

4.2

0.6

3.0

21.4%

Rental

73.3

0.5

0.4

n.a.

Rental equipment

92.8

16.8

1.2

10.0

15.7%

Corporate and use goods

9.5

5.8

5.2

24.0

20.1%

102.3

22.6

6.4

34.0

18.8%

Capex Total
Table 8 Rental financial indicators
in R$ million

1Q14

4Q14

1Q15

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Rental

88.1

71.8

69.3

-21.4%

-3.4%

Technical support services, sales and others

9.1

12.2

10.3

12.6%

-15.6%

Total net revenue

97.3

83.9

79.6

-18.2%

-5.2%

COGS, ex-depreciation

19.3

25.5

20.6

6.7%

-19.5%

G&A, ex-depreciation and ADD

17.1

17.5

16.2

-5.1%

-7.5%

ADD

2.5

7.6

8.3

237.0%

9.2%

EBITDA

58.4

33.2

34.4

-41.0%

3.7%

EBITDA margin (%)

60.1%

39.6%

43.3%

ROIC (%)

17.8%

11.5%

8.8%

Capex

73.7

1.9

0.7

-99.0%

-61.1%

Invested Capital

588.6

704.6

712.9

21.1%

1.2%

Rental net PP&E

528.5

590.8

588.2

11.3%

-0.4%

Others

60.1

113.9

124.7

107.5%

9.5%

18.7

21.0

20.9

11.4%

-0.5%

1Q14

4Q14

1Q15

(C)/(A)

(C)/(B)

(A)

(B)

(C)

Rental

43.8

43.4

36.5

-16.7%

-16.0%

Technical support services, sales and others

7.3

9.1

14.6

100.7%

60.2%

51.0

52.5

51.1

0.1%

-2.7%

COGS, ex-depreciation

9.5

12.1

15.0

57.7%

23.7%

G&A, ex-depreciation and ADD

15.1

14.5

14.3

-5.0%

-1.5%

ADD

0.8

9.6

8.8

958.6%

-7.7%

EBITDA

25.6

16.3

12.9

-49.5%

-20.6%

EBITDA margin (%)

50.2%

31.0%

25.3%

ROIC (%)

17.9%

9.9%

7.0%

Capex

15.0

12.1

0.5

-96.6%

-95.8%

Invested Capital

Net revenue

Depreciation
Table 9 Heavy Construction financial indicators
in R$ million

Net revenue

Total net revenue

299.6

348.1

352.4

17.6%

1.3%

Rental net PP&E

236.4

252.6

248.8

5.3%

-1.5%

Others

63.2

95.5

103.6

63.8%

8.5%

9.4

10.2

10.6

12.7%

3.5%

Depreciation

1Q15 Mills Results

Table 10 Real Estate financial indicators

in R$ million

1Q14

4Q14

4Q14*

1Q15

(D)/(A)

(D)/(B)

(D)/(C)

(A)

(B)

(C)

(D)

Rental

44.8

34.2

34.2

26.7

-40.6%

-22.1%

-22.1%

Technical support services, sales and others

14.7

11.2

11.2

6.6

-55.2%

-41.3%

-41.3%

Total net revenue

59.5

45.4

45.4

33.2

-44.2%

-26.9%

-26.9%

COGS, ex-depreciation

14.1

13.9

11.8

11.5

-18.1%

-16.9%

-2.1%

G&A, ex-depreciation and ADD

18.7

20.5

20.5

17.6

-5.7%

-13.9%

-13.9%

ADD

3.3

4.9

4.9

4.0

22.1%

-19.3%

-19.3%

EBITDA

23.5

6.1

8.2

0.1

-99.7%

-98.9%

-99.2%

EBITDA margin (%)

39.4%

13.5%

18.1%

0.2%

ROIC (%)

6.7%

0.4%

2.5%

-3.3%

5.0

4.2

4.2

0.7

-85.2%

-82.7%

-82.7%

486.3

469.5

469.5

448.6

-7.7%

-4.5%

-4.5%

Rental net PP&E

336.6

317.1

317.1

307.0

-8.8%

-3.2%

-3.2%

Others

149.7

152.4

152.4

141.6

-5.4%

-7.1%

-7.1%

11.5

12.2

12.2

11.9

4.0%

-2.0%

-2.0%

Net revenue

Capex
Invested Capital

Depreciation

* Excluding non-recurring items of R$ 2.1 million related to inventory adjustment.

Table 11 ROIC Analysis
Heavy
Construction

Real Estate

Rental

Mills

-279 bps

-356 bps

-259 bps

-263 bps

Rental net PP&E

11 bps

1 bps

4 bps

7 bps

Others

-23 bps

1 bps

-17 bps

0 bps

Total

-288 bps

-370 bps

-270 bps

-259 bps

Operational income after taxes

-968 bps

-981 bps

-711 bps

-931 bps

Rental net PP&E

-71 bps

44 bps

-164 bps

-38 bps

Others

-213 bps

11 bps

-176 bps

-117 bps

Total

-1091 bps

-1006 bps

-897 bps

-980 bps

ROIC variation (qoq)

Operational income after taxes

ROIC variation (yoy)

1Q15 Mills Results

INCOME STATEMENT
in R$ million

1Q14

4Q14

1Q15

Net revenue from sales and services

207.8

181.9

163.9

Cost of products sold and services rendered

(79.0)

(90.7)

(86.1)

Gross profit

128.8

91.2

77.8

General and administrative expenses

(61.9)

(79.6)

(73.8)

Operating profit

66.9

11.6

4.0

Financial expense

(20.6)

(18.1)

(26.1)

Financial income

4.0

3.3

7.7

Financial result

(16.5)

(14.8)

(18.4)

50.3

(3.2)

(14.4)

(16.5)

(3.0)

(0.1)

33.9

(6.2)

(14.5)

127.491

128.058

128.058

0.27

(0.05)

(0.11)

Profit before taxation

Income tax and social contribution expenses
Net income (Loss)
Number of shares at the end of the period (in thousands)
Net income (R$ per shares)

1Q15 Mills Results

10

Balance Sheet
in R$ million

1Q14

4Q14

1Q15

Current Assets
Cash and cash equivalents
Trade receivables
Inventories
Recoverable taxes
Advances to suppliers
Derivative financial instruments
Assets available for sale
Other current assets

8.5
192.2
36.6
33.6
0.2
27.4
9.8

193.7
156.8
21.8
28.7
0.2
1.2
17.5
5.6

214.0
126.4
19.9
28.6
0.1
18.0
6.6

Total Current Assets

308.2

425.3

413.7

Non-Current Assets
Trade receivables
Recoverable taxes
Deferred taxes
Deposits in court
Other trade receivables

1.4
44.2
5.0
10.4
48.4

1.4
32.0
24.9
10.4
34.9

1.2
26.8
27.1
10.9
35.9

109.5

103.7

101.9

87.4
1,264.8
73.8

87.4
1,200.1
76.1

87.4
1,154.4
76.5

1,426.1

1,363.7

1,318.4

Total Non-Current Assets

1,535.6

1,467.4

1,420.3

Total Assets

1,843.8

1,892.7

1,833.9

Assets

Investment
Property, plant and equipment
Intangible assets

1Q15 Mills Results

11

in R$ million

1Q14

4Q14

1Q15

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 and interest on equity payable
Derivative financial instruments
Other current liabilities

55.4
49.1
120.2
23.6
6.2
1.0
4.6
0.6
41.0
3.3
3.5

16.5
49.6
105.3
19.4
2.5
1.0
4.0
21.8
1.0

14.9
3.2
114.3
20.0
1.0
2.9
21.8
1.2

Total Current Liabilities

308.5

221.2

179.4

Non-Current Liabilities
Borrowings and financings
Derivative financial instruments
Debentures
Provision for tax, civil and labor risks
Deferred taxes
Tax refinancing program (REFIS)

17.2
448.4
11.4
9.4

14.9
575.5
12.6
9.1

14.3
580.3
12.4
9.0

Total Non-Current Liabilities

486.5

612.1

616.0

Total Liabilities

795.0

833.3

795.3

554.9
447.9
12.4
(0.2)
33.9

563.3
487.0
8.8
0.2
-

563.3
487.0
2.5
0.2
(14.5)

Total Stockholders' Equity

1,048.8

1,059.4

1,038.6

Total Liabilities and Stockholders' Equity

1,843.8

1,892.7

1,833.9

Liabilities

Stockholders' Equity
Capital
Earnings reserves
Capital reserves
Valuation adjustments to equity
Retained earnings

1Q15 Mills Results

12

Cashflow
in R$ million

1T14

4T14

1T15

50,3

(3,2)

(14,4)

39,6
0,8
2,2
0,5
(10,1)

43,4
(1,9)
2,5
(10,4)

43,4
(0,5)
2,5
(14,4)

17,2

25,6

22,9

6,5
-

22,2
3,4

21,0
1,9

56,7

84,9

76,8

(21,4)
(0,3)
5,9
0,1
(2,9)
(1,8)
4,4
(0,0)
(1,3)

(2,2)
0,2
6,6
0,2
(0,4)
(0,3)
(5,8)
(0,7)
(1,2)

4,3
0,0
7,2
(0,4)
(1,0)
(1,7)
0,6
(1,1)
0,2

(17,3)

(3,7)

8,2

89,7
(9,7)
(7,1)
(18,6)

78,0
(23,0)
(7,6)
-

70,6
(0,0)
(15,0)
(6,3)
-

54,2

47,4

49,3

Cash flow from investment activities

Purchases of property, plant and equipment and intangible assets
Proceeds from sale of property, plant and equipment and intangible assets
Net cash proceeded from (applied on) investment activities

(82,9)
15,3
(67,7)

(18,3)
15,7
(2,6)

(6,4)
27,5
21,1

Cash flow from financing activities

Capital contributions
Shares in treasury
Dividends and interest on capital invested paid
Repayment of borrowings
Borrowings raised

1,6
(2,5)
(3,0)
-

(11,0)
(1,2)
-

(8,8)
(41,2)
-

Net cash generated by (used in) financing activities

(3,9)

(12,2)

(50,0)

Increase (decrease) in cash and cash equivalents

(17,3)

32,6

20,4

Cash and cash equivalents at the beginning of the period

25,8

161,1

193,7

Cash and cash equivalents at the end of the period

8,5

193,7

214,0

Cash flow from operating activities

Net income before taxation
Adjustments
Depreciation and amortization
Provision for tax, civil and labor risks
Accrued expenses on stock options
Profit sharing payable
Gain on sale of property, plant and equipment and intangible assets
Interest, monetary and exchange rate variation on loans, contingencies and
deposits in court
Allowance for doubtful debts
Others

Changes in assets and liabilities

Trade receivables
Inventories
Recoverable taxes
Deposits in court
Other assets
Suppliers
Salaries and payroll charges
Taxes payable
Other liabilities

Cash from operations

Lawsuits settled
Interest paid
Income tax and social contribution paid
Profit sharing paid
Net cash generated by operating activities

1Q15 Mills Results

13

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).

1Q15 Mills Results

14