Corporate Presentation

March 2015

Executive Summary

Mills - Business Units

• Focus on: large and complex infrastructure projects • Products: engineering solutions and rental of formwork and shoring • Services: planning, design, technical supervision, equipment and related services

• Main clients:

2

• Market leader; acquired in 2008 • Focus on: residential and commercial constructions • Products: engineering solutions and rental of formwork, shoring and suspended access • Services: planning. design. technical supervision. equipment and related services

• Clients: real estate companies. such as:

Rental

• Market leader, extensive track record, with more than 60 years of experience

•

Real Estate

Heavy Construction

•

• Market leader; started in 2008 • Focus on: civil construction. Industry, retail e others • Products: rental and sale of motorized access equipment, such as aerial work platforms and telescopic handlers • Cross-selling with all other Mills’ business units • Elected "Best Company for Access of the Year" by the International Awards for Powered Access (IAPA Awards) for the year of 2011

Mills – 3Q14LTM¹ Financial highlights per business unit In R$ million

EBITDA margin

ROIC

46.9%

13.3%

Real Estate

27.6%

2.1%

Rental

57.2%

14.5%

46.5%

9.4%

822.3

217.1

221.2

26%

Heavy Construction

27% 382.4

47%

101.9

27%

61.1

16%

219.5

57%

384.0

Receita Líquida

EBITDA

¹ Excluding the Industrial Services business unit.

3

Geographic Presence Branches location

Estamos presentes em 16 estados no

As of September 30.unidades 2014 Brasil com 56

Amapá

Roraima

Amazonas Pará

Ceará

Maranhão

Rio Grande do Norte Paraiba

Piaui Pernambuco

Acre

Alagoas

Tocantins Rondônia

Bahia Sergipe Mato Grosso

Distrito Federal Goias

Heavy Construction Real Estate Rental

States with Mills' presence

Mato Grosso do Sul

Espirito Santo

São Paulo

Parana

Santa Catarina Rio Grande do Sul

4

Minas Gerais

Rio de Janeiro (headquarters)

Brazil presents a low level of productivity compared to other developing countries Productivity growth is essential for higher sustainable GDP growth

GDP per person employed. % of U.S. 2013

34.5%

34.0%

31.4% 28.2%

17.2%

17.1%

8.1%

Brazil

Russia

India

China

South Africa

Chile

Mexico

Source: The Conference Board Total Economy Database, January 2014

5

The potential penetration of our services for increasing productivity enables us to grow more than the overall economy

Mills revenue1 versus GDP yoy variation (%)

70%

60% 60%

50% 44% 40% 35% 31% 30% 25% 20%

10%

0% 2009

2010

2011

2012

2013

-10% Mills

GDP

Industrial GDP

Civil Construction GDP Source: Mills and Bacen ¹ Excluding the Industrial Services business.

6

Financial Performance3 In R$ million 832.3

822.3

822.3

50.9% 50.8%

47.5%

222.0

211.8

210.1

207.8

188.4 46.7%

47.8%

51.7%

48.7%

213.0 49.7%

47.0% 665.5

191.5

48.4%

48.0%

191.5

46.5%

41.3% 462.8 403.1

34.8% 95.7

98.9

106.1

107.5

102.4

354.5 21.0%

105.9 79.0

14.7% 39.3

14.8% 48.1

14.4% 39.6

14.1% 45.6

13.8% 33.9

66.7 12.3% 33.4

9.4%

168.4 9.9%

2Q13

3Q13

Net revenue

4Q13

1Q14

2Q14

EBITDA

3Q14

394.8

217.4 12.3%

14.7% 151.5

14.1% 172.6

9.4% 116.1

9.9% 124.1

92.2

11.3

3.2 1Q13

103.3

382.4

339.0

3Q14¹

Net earnings

2010

2011

2012

EBITDA margin (%)

2013

LTM3Q14 LTM3Q14¹

ROIC²

3Q14¹/3Q13

3Q14¹/2Q14

LTM3Q14¹/LTM3Q13

CAGR 10-13

Net revenue

-14%

-10%

2%

33%

EBITDA

-26%

-25%

3%

34%

Net earnings

-72%

-66%

-26%

19%

¹ Excluding Easy-set effect. ² ROIC: Return on Invested Capital. Until 2010, ROIC was calculated considering the effective income tax rate for the period, while from 2011 onwards ROIC was calculated considering a theoretical 30% income tax rate. ³ Reclassified excluding the Industrial Services business unit, for comparison

7

Mills invested R$ 155.3 million in rental equipment in 9M14, of which R$ 13.8 million in 3Q14 Capex ¹ In R$ million

499 36

Rental equipment

413

Realized 9M14 / 2014 Capex budget (%)

18

324 15

Rental

62%

Real Estate

60%

21

Heavy Construction

96%

105

Total

76%

267 163

292 20

131 177 161

104

90

185

60 106 74 2010

47

51

2011

2012

15 35

2013

9M14

¹ Reclassified excluding Industrial Services business unit, for comparison.

8

Positive cash flow of R$ 74 million in 3Q14

Free cash flow1 100

74

50

11

2010

2011

(50)

2012

2013

1Q14

2Q14

3Q14

(13)

(31)

(100) (150) (154) (200) (219)

(250) (300) (350)

(340)

(400)

1 Net

9

cash generated by the operating activities minus net cash applied in investment activities

Debt Profile Mills’ total debt was R$ 746.2 million and net debt was R$ 585.1 million in September 30, 2014. Leverage, as measured by net debt/ LTM EBITDA, was 1.5x. Debt amortization schedule, as of Sep 30, 2014 in R$ million

Debt profile (%)

By index

230 205

184

161

17% 144

134

174

TJLP

137

CDI

150

Cash position

3%

106

72

57

34

38

2015

2016

2017

2018

106

65

31

31 34

2019

2020

IPCA 83%

By type

Interest

Principal

8% Debentures

Credit lines available¹ Used Not used

As of Sep 30, 2014

Borrowings and financing

R$ 62.1 million R$ 486.9 million

92%

¹ Unsecured overdraft account + Secured bank credit lines

10

Debt indicators EBITDA-to-net financial result

Net debt-to-EBITDA

23,0x

1,6x 1,6x

1,6x 1,5x 1,5x 1,4x

1,5x

1,4x 1,3x

1,3x 1,2x 1,2x 1,2x

1,0x

10,4x

9,6x 7,5x

8,3x 6,8x 6,9x

9,8x 10,2x 9,6x 8,5x 7,6x

5,1x

5,9x

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14

Debentures Covenants: (1) EBITDA-to-net financial result equal to or more than two; and (2) Net debt-to-EBITDA ratio equal to or less than three.

11

Business Units

Castelão stadium – Fortaleza. CE

Rental

Growth drivers in the motorized access equipment market: safety and productivity Recent safety standards (NR-18 and NR-35) oblige the use of aerial platforms to lift people, increasing safety and productivity in the work site

Market penetration through substitution of less secure and efficient access methods

Source: Mills

14

Growth drivers in the motorized access equipment market: low penetration Modest rental penetration of 15% in Brazil. Rental penetration is approximately 50% in the USA, 60% in Japan and 80% in England. Rental penetration in the USA increased to approximately 50% in 2014 from 5% in 1993: 20 years of continuous penetration growth. Rental penetration in the USA

60%

50% 40%

40%

43%

35%

20%

20%

0% 1993

1998

2004

2009

2011

2014E

-20% Source: Goldman Sachs and United Rentals

15

Growth drivers in the motorized access equipment market: low penetration Penetration of use has enabled the branches opened prior to the IPO to have an average annual growth of 22% in the last four years¹. 30%

28% 24%

25% 21% 20%

15%

13%

10%

5%

0% 2010

2011

2012

2013

¹ Growth rates considering only branches which were opened until 2010

16

Growth drivers in the motorized access equipment market: geographic expansion Revenue Breakdown

31% New branches¹ 58%

62%

69%

69% 42%

2009

2010

2011

Established branches 38%

2012

31%

2013

1

17

Branches opened since January 2010

Construction sector is the major user of motorized access in Brazil Revenues per type of use

17%

8%

11%

23%

16%

5%

18% 35%

25%

19%

Others Spot

69%

58%

Industry

73% 60%

63% Construction

Brazilian Market

Mills

United Rentals United Rentals (pre-merger RSC) (post-merger RSC)

Ramirent

Source: Mills – 2013. United Rental – 2011 and Ramirent – 1Q14

18

Rental – Financial Performance In R$ million

60.1% 57.3%

54.7% 90.1

55.7% 93.9

57.7%

55.8%

97.2

98.6

97.3

53.6%

53.4%

55.7%

384.0 57.2%

357.3 56.3%

54.9% 91.0 253.5

76.1

219.5 201.2

43.6 18.0%

49.3 18.5%

52.3 18.1%

56.0 18.2%

58.4 17.8%

55.1

16.2%

175.4 50.0 14.5%

19.2% 95.1

16.5% 93.6

141.2 18.2%

18.2% 14.5%

51.0

1Q13

2Q13

3Q13

4Q13

1Q14

Net revenue

2Q14

3Q14

EBITDA

2010

2011

2012

EBITDA margin (%)

2013

LMT3Q14 ROIC¹

3Q14/3Q13

3Q14/2Q14

LTM3Q14/LMT3Q13

CAGR 10-13

Net revenue

-3%

-8%

15%

55%

EBITDA

-4%

-9%

21%

58%

1

ROIC: Return on Invested Capital. Until 2010. ROIC was calculated considering the effective income tax rate for the period. while from 2011 onwards ROIC was calculated considering a theoretical 30% income tax rate.

19

Cinta costeira - Panamá

Heavy Construction

Brazil is behind other BRIC countries quality of infrastructure Infrastructure quality ranking for BRIC countries (2011-12) Index EUA = 1.0

Highways

China

Railways

0.62

India

0.48

China

0.99

China

India

0.97

India

0.93

Russia

Russia

0.36

Russia

Brazil

0.33

Brazil

USA

1.00

-

0,50 0.50

1,00 1.00

Ports

USA

1.00

-

0,50 0.50

1,00 1.00

China

0.73

0.62

India

0.51

0.48

Russia

0.38

Brazil

0.42

Infrastructure

0.36

Brazil

0.11

USA

0.33

1.00 USA

-

0,50 0.50

1,00 1.00

1.00

-

0,50 0.50

1,00 1.00

Source: World Economic Forum. The Global Competitiveness Report 2012-2013

21

Investments in infrastructure and industry in Brazil should amount R$ 1.5 trillion in the 2015-2018 period, with 24% growth compared to the 2010-2013 period Investment per sector R$ billion

911 2010-2013

2015-2018

767

598 509 457 358 303 307

18,8%

38,2%

177 111 15 36

95,7% 140%

1116

45,5% 59,5%

Total Infrastructure

29%

45

Total Logistics1

64%

23

Airports

80

Ports

Telecom

Eletricity 0,5%

62

Roads

1,3%

Total Industry

5%

Others

0,0%

87

Sanitation

-9,1% -40%

53

2021

Pulp and Paper

Steel

20 12

22 22

Chemical

42,2%

Mining

Oil and Gas

44 40

141 102

Railways

191 192

30,8%

2015-2018 / 2010-2013 Growth rate(%)

1

22

Source: BNDES – December 2014 Logistics is the sum of roads, railways, ports and airports

New logistic investment program

Highways

Railways

Ports

Total

In R$ billion

In R$ billion

In R$ billion

In R$ billion

In the first 5 years

23.5

Up to 20 years

18.5

-

20

40

Total: R$ 42 billion (7,500 km)

Colunas2

Colunas3 56.0

In the first 5 54.2 years

Colunas3

35.0 Colunas2

Up to 20 years

60

-

20

40

Total: R$ 91 billion (10,000 km)

60

-

20

40

Total: R$ 54 billion

60

133.7

53.5

-

30

60

90

120 150

Total: R$ 187 billion

Source: Programa de investimento em Logística, August 2012 and O Globo newspaper

23

Of the R$ 104 billion investments planned, approximately R$ 74 billion have been successfully auctioned Investiments In R$ billlion Salvador subway line 2 BR 050 (MG/GO) BR 262 (MG/ES)

×

 

São Paulo subway line 6 Confins airport



Goiânia VLT BR 163 (MT)

  

BR 060/153/262 (DF/GO/MG) BR 163/267/262 (MS) BR 040 (DF-MG) BR 153 (GO/TO) São Paulo subway line 18

Tamoios highway

  



2013

Galeão airport







BR 101 (BA) BR 262 (MG/ES)

2014

BR 116 (MG) Ports - 1th stage - 31 contracts Ports - 2th stage - 18 contracts Curitiba subway Lucas do Rio Verde railroad

Source: Mills, Goldman Sachs and Credit Suisse

24

Evolution of revenue generation (Basis 100= Maximum monthly revenue in the life of construction)

Important contracts per stage1 in the evolution of monthly revenue from projects New contracts*

Contracts with growing volume of equipment

• Cafezal mountain

• Belo Monte hydroelectric power plant

• Tamoios highway outline • Fortaleza subway • Joá Elevated road duplication - RJ • Comperj refinery* •Transoceânica highway - BA • Sanitation projects– CE

Contracts with high volume of equipment

• Jirau hydroelectric power plant • Viracopos airport.

•Jirau hydroelectric power plant*

• Goiânia airport.

• Vale’s S11D project

• Metropolitan Arch – RJ

•Transnordestina railroad

• BRT Transcarioca

•Oeste-Leste railroad

• Colíder and Teles Pires hydroelectric power plants

• North beltway

• Comperj refinery

• Vale projects • Pulp mill expansion- RS

• Companhia Siderúrgica do Pecém steel mill

•BR-040 highway – MG/MT/GO

• Norte-Sul railroad

•BR- 163 highway – MT

• Transposition of the São Francisco river

•Gerdau expansion – MG

• Vale projects

• BR-381 highway duplication – MG

Contracts in the process of demobilization

• Subway line 5 – SP • Salvador subway • Olympic Park • Reduc-Comperj Pipeline • Silver monorail line SP

• Gold monorail line- SP • Subway line 4 – RJ • Olympic Park • Subway line 4 – SP • Cuiabá light rail

• Paraguaçu shipyard

Length of time of Mills participation in the construction work – average cycle is 24 months 1 In 3Q14 * New stretches

25

Characteristics of the major projects in progress

Source of funds¹

Per sector¹ Others 8%

Public 31%

Industry 36% Private 54% Infrastructure

56% PPP 15%

1

26

in 3Q14

Heavy Construction – Financial Performance In R$ million

48.5%

47.7% 52.8%

51.3%

55.7 55.1 45.5%

50.6% 55.7

58.6 49.9%

50.2% 51.0

47.5

217.0 49.8%

217.1 46.9%

43.9% 55.5 46.2% 51.9 41.2%

174.1 154.3

131.6 108.1

29.4 24.3 17.8%

25.1 17.7%

18.1%

28.2 18.1%

29.3 19.2%

25.6 17.9%

84.3

25.6 16.3%

101.9

19.2%

73.6 21.4

13.3%

57.8

13.3%

1Q13

2Q13

3Q13

3Q13* Net Revenue

4Q13

1Q14

2010

2Q14 3Q14 EBITDA

2011

2012

EBITDA Margin (%)

2013

LTM3Q14 ROIC¹

3Q14/3Q13

3Q14/2Q14

LTM3Q14/LTM3Q13

CAGR 10-13

Net Revenues

-7%

-7%

0%

+12%

EBITDA

-27%

-17%

-6%

+14%

* Excluding the positive effect of tax reversal in the amount of R$ 1.5 million in 3Q13. 1

ROIC: Return on Invested Capital. Until 2010.,ROIC was calculated considering the effective income tax rate for the period,while from 2011 onwards ROIC was calculated considering a theoretical 30% income tax rate.

27

Mast climbing platform

Real Estate

Growth drivers of the residential market: housing financing

Housing financing relative to GDP (%) in Brazil

Housing financing relative to GDP (%) UK¹ 83.7%

7.4% 6.8%

USA¹ 76.1% Germany¹ 45.3%

5.4%

South Africa¹ 24.0% 4.1% China¹ 14.4% 3.1% Chile² 11.5% Brazil³ 7.4% India¹ 3.5% Russia¹ 2.6%

2009

2010

2011

2012

2013

¹ In 2011; ² In 2010; ³ In 2013. Source: Valor Econômico Newspaper, with data from Abecip and Secovi

29

Growth drivers of the residential market: higher purchasing power

% of families per social class

Number of families per income range In million families

6.0

5.7

6.2

8.1

9.8

11.7

60.4

Class A

+33.2 million Class B 37.0

Growth rate (%. p.a.)

families with income between R$ 1,000 to 8,000

< R$ 1,000

49.7 58.4

Class C

31.7

29.1

27.2

38.2

-0.4%

>= R$ 1,000 and +3.9% R$ 8,000

+7.1%

1.4 2007

2030E

Source: IBGE and FGV

30

The major challenge for the sector: labor

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 Solution: Industrialization of the construction process 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

Source: Sondagem Especial Construção Civil. April 2011. CBIC. CNI. and Mills

31

Stages of industrialization of the construction process

System

Traditional with wood

Traditional with steel

Deck type

Flying table

Cycle between concreting activities

15 days

7-10 days

6-8 days

4-7 days

Labor required1

30 people

20 people

12 people

10 people

1

Approximately 800 m2 Source: Téchne Magazine. June 2012 and Mills

32

Launches and sales declined 5.4% and 13.9% respectively in 9M14

Total launches1

Total sales1

in R$ billion

in R$ billion 25

100%

25

21.6

80%

80%

19.9 20

20

17.9

13.8 20%

13.8

15

13.1

20.2%

10

0% 0.2% -5.4%

-20%

16.7

16.8

40%

Var. (%)

Var. (%)

40%

Lauunches (In R$ million

60%

18.2

60%

14.5

15

20% 9.3%

0%

10 0.7%

-20%

-13.9%

-15.8%

5

Sales (In R$ million)

100%

5

-40%

-40%

-36.0%

0

-60%

9M10

9M11

9M12

9M13

9M14

0

-60%

9M10

1 PDG,

9M11

9M12

9M13

9M14

Cyrela, MRV, EVEN, Helbor, Eztec, Direcional, Rodobens, Gafisa and Tecnisa Source: Operational reports from companies and Mills

33

Real Estate – Financial Performance In R$ million

258.0 72.4 64.9

238.0 47.7%

66.5 59.5

41.7%

221.2

42.4%

58.8 36.4%

54.2 48.6

33,2%

48.6

155.8

42.8%

42.8%

27.6%

39.4% 37.0% 33.7% 27.7 15.0%

24.6 13.4%

23.5% 105.1

31.5%

24.4

23.5

25.2

17.1 10.6%

2Q13

3Q13

14.3% 66.0

15.8% 6.7%

6.5% 2.1%

1Q13

113.4 93.8 15.7%

4Q13

1Q14

2Q14

Net revenue

3Q14 -4.7 -9.6%

73.4 61.1

43.9 8.1%

221.2

8.1%

7.7 3.8%

3Q14¹

EBITDA

2.1%

2.1% 2010

2011

2012

EBITDA margin (%)

2013

LTM3Q14

LTM3Q14¹

ROIC²

3Q14¹/3Q13

3Q14¹/2Q14

LTM3T14¹/LMT3T13

CAGR 10-13

Receita Líquida

-33%

-17%

-18%

35%

EBITDA

-69%

-70%

-29%

29%

¹ Excluding Easy Set effect. ² ROIC: Return on Invested Capital, Until 2010. ROIC was calculated considering the effective income tax rate for the period. while from 2011 onwards ROIC was calculated considering a theoretical 30% income tax rate.

34

Mills – Investor Relations Tel.: +55 21 2123-3700 E-mail: [email protected] www.mills.com.br/ri