Corporate Presentation

February 2014

Executive Summary

Mills - Business Units

Heavy Construction

Real Estate

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

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

Rental

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

Clients: real estate companies, such as:

Elected "Best Company for Access of the Year" by the International Awards for Powered Access (IAPA Awards) for the year of 2011

Mills - 3Q13LTM Financial highlights per business unit

Margem EBITDA 810 206 26%

ROIC

Heavy Construction

48.2%

18.1%

270

33% 384 99 103 26% 27% Rental 182 47% 54.5% 18.1% Real Estate 38.1% 10.6%

334

41%

Revenue

EBITDA 47.4% 14.3%

3Q13LTM Last twelve months ended September 30, 2013. Excluding the Industrial Services business unit.

Mills - Financial Performance

55.3% 52.1% 187.5 173.4 173.4 44.4% 50.8% 188.4 222.0 211.8 46.7% 47.8% 47.5% 47.0% 665.5 50.9% 47.4% 809.7

462.8 95.9 15.8% 38.0 95.7 83.3 14.5% 41.6 32.3 14.9% 39.3 98.9 106.1 354.5 21.0% 384.0 339.0

90.3 14.5%

14.2%
48.1

13.9% 39.6 168.4 103.3

217.4
13.2% 92.2

15.9% 151.5

14.4% 168.6

3Q12

3Q12*

4Q12

1Q13
EBITDA

2Q13

3Q13
Net Earnings

2010

2011 EBITDA Margin

2012

3Q13LTM ROIC

Net Revenue

3Q13/3Q12

3Q13/2Q13

CAGR 10-12

Net Revenue
EBITDA Net Earnings
Reclassified excluding the Industrial Services business unit, for comparison.

28%
11% 4%

5%
7% -18%

37%
42% 21%

ROIC: Return on Invested Capital. Until 4Q10, ROIC was calculated considering the effective income tax rate for the period, while in 1Q11 onwards ROIC was calculated considering a theoretical 30% income tax rate. 3Q13LTM Last twelve months ended September 30, 2013. * Excluding the positive impact of the provisions reversal in the amount of R$ 6.8 million in 3Q12.

Mills Geographic Presence

We are present in 17 states of Brazil with 51 branches

Estamos presentes em 16 estados no Brasil com location 56 unidades Branches

As of December 31, 2013

Roraima

Amap

Amazonas Par Maranho Cear Rio Grande do Norte Paraiba Piaui Acre Rondnia Mato Grosso Distrito Federal Tocantins Bahia Pernambuco Alagoas Sergipe

Heavy Construction Real Estate Rental

Mato Grosso do Sul Goias Minas Gerais

So Paulo

Espirito Santo Rio de Janeiro (sede)

States with Mills Presence

Parana

Santa Catarina Rio Grande do Sul

Cinta costeira - Panam

Heavy Construction

Brazil is behind other BRIC countries quality of infrastructure

Infrastructure quality ranking for BRIC countries (2011-12)
Index EUA = 1.0

Highways

Railways

Ports

Infrastructure

China

0.62

China

0.99

China

0.73

China

0.62

India

0.48

India

0.97

India

0.51

India

0.48

Russia

0.36

Russia

0.93

Russia

0.38

Russia

0.36

Brazil

0.33

Brazil

0.42

Brazil

0.11

Brazil

0.33

USA

1.00

USA

1.00

USA

1.00 USA

1.00

0.50

1.00

0.50

1.00

0.50

1.00

0.50

1.00

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

Investments in infrastructure and industry in Brazil should amount R$ 1.6 trillion in the 2014-2017 period

Investments in infrastructure and industry in Brazil should amount R$ 1.6 trillion in the 20142017 period

Industry investments 2014-2017

R$ 1,100 billion

Infrastructure investments 2014-2017

R$ 510 billion

Ports 34 Others 540 Oil and Gas 458 Roads 62 Railways 59 Mining 48 Pulp and Paper Chemical Steel 19 25 10 Sanitation 45

Airports 8

Energy 176

Telecom 125

Growth compared to the 2009-2012 period (%) 24% 25%

Source: BNDES October 2013

Higher participation of the private sector in infrastructure investments in recent years

Investments in Infrastructure
6.0
% of GDP

Investments in Infrastructure
Per source of funds

5,4
5.0 0.46 Sewage and Sanitation Energy Telecommunication Transport
Private PPP Public

4.0

2.13

3,6
0.24

39%

47%

52%

3.0 1.47 0.80 2.0 0.43 1.0 2.03 1.48 0.63 0.0 1971-80 1981-89 1990-2000 2001-10 2010 2011 2012
2010 2011 2012

2,3
0.15 0.76

2.4

2,2
0.19 0.67 0.4 0.64 0.62 1.0 1.0

2.1
0.8 0.5

2.2
42%

0.8 0.6

36% 36%

0.73

0.8

0.7

19%

17%

12%

Source: Credit Suisse report The Brazilian Infrastructure: Its now or never , from July, 2013

New logistic investment program

Highways
In R$ billion

Railways
In R$ billion

Ports
In R$ billion

Total
In R$ billion

In the first 5 years

23.5

Colunas2

Colunas3 56.0

In the first 5 54.2 years

133.7

Up to 20 years

18.5

Colunas3

35.0 Colunas2

Up to 20 years

53.5

20

40

60

20

40

60

20

40

60

30

60

90

120 150

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

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

Total: R$ 54 billion

Total: R$ 187 billion

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

10

Of the R$ 106 billion planned, approximately R$ 62 billion have been successfully auctioned, surpassing the projects awarded to the private sector in the past ten years
Investments
In R$ billion
Salvador subway line 2 BR 050 (MG/GO) BR 262 (MG/ES) So Paulo subway line 6 Galeo airport Confins airport VLT Goinia BR 163 (MT) BR 060/153/262 (DF/GO/MG) BR 163/267/262 (MS) BR 040 (DF-MG)

2013

BR 101 (BA)
BR 153 (GO/TO) BR 116 (MG) BR 262 (MG/ES)
2014

Ports - 1st stage - 31 contracts Ports - 2nd stage - 18 contracts Tamoios So Paulo subway line 18 Curitiba subway Campinorte - Lucas do Rio Verde railway

Source: Mills, Goldman Sachs, and Credit Suisse

11

Important contracts per stage1 in the evolution of monthly revenue from the heavy construction projects
Five hydroelectric power plants, two refineries, eight airports, and urban mobility projects in major cities
Evolution of revenue generation (Basis 100= Maximum monthly revenue in the life of construction)
New contracts*
Vales S11D project So Lus airport Transposition of the So Francisco river* Subway lines 4 and 5 SP* Viracopos and Guarulhos Airports* Companhia Siderrgica do Pecm steel mill*

Contracts with growing volume of equipment

Belo Monte hydroelectric power plant Norte-Sul railroad Oeste-Leste railroad Subway line 4 SP Companhia Siderrgica do Pecm steel mill Braslia airport Fortaleza airport Natal airport

Contracts with high volume of equipment

Contracts in the demobilization process

Jirau hydroelectric power plant Abreu e Lima refinery CSN steel plant Paranaenses Arena Manaus airport Pantanal arena Natal arena BR-448 Cuiab lightrail Subway line 2 SP BRT Belo Horizonte

North beltway*
Belo Monte hydroelectric power plant* Norte-Sul railroad* Duplication of BR-163 e MT-364 highways

BRT Sul DF
Cais das Artes Paraguau shipyard Manaus thermal power plant Libras terminal

Colder, Teles Pires and Ferreira Gomes hydroelectric power plants Comperj refinery Vale and Gerdau projects East beltway- SP Gold and Silver monorail lines- SP Metropolitan Arch - RJ Subway line 4 RJ BRT Transcarioca Viracopos airport Guarulhos airport Beira-Rio stadium Surroundings of Maracan Porto Maravilha

Thermal power plant MA

Pulp mill expansionRS Salvador subway

Time of Mills participation in the construction work average cycle duration is 24 months
* New streches
1

In 3Q13

12

Heavy Construction characteristics of the major projects in progress

Source of Funds

Per sector

Others 10% Public-Private Partnership 25.2% Private 53.3% Public 21.5% Industry 22% Airports 16.7%

Infrastructure 29%

World Cup and Olympics 38%

Urban mobility 10.4% Stadiums 11.2%

In 3Q13

13

Heavy Construction Financial Performance

In R$ million 52.9% 50.2% 55.1 51.3% 47.3 42.7% 47.5 45.5% 154.3 131.6 55.7 52.8% 55.7 50.6% 47.7% 43.9% 174.1 48.5% 205.6 48.2%

45.5

45.5

29.4
24.1 19.7% 22.8 18.3% 24.3 20.2 14.8% 18.6% 25.1 20.9% 17.8%

28.2 19.7%

24.1% 73.6 84.3 17.2%

99.0 18.1%

57.8
12.1%

3Q12

3Q12*

4Q12 Net Revenue

1Q13

2Q13

3Q13 EBITDA

3Q13**

2010 EBITDA Margin

2011

2012 ROIC

3Q13LTM

3Q13/3Q12 Net Revenue 22%

3Q13/2Q13 1%

CAGR 10-12 6%

EBITDA

22%

17%

7%

* Excluding the positive impact of the provisions reversal in the amount of R$ 1.5 million in 3Q12.
* * Excluding the positive effect of tax reversal in the amount of R$ 1.5 million in 3Q13.
1

ROIC: Return on Invested Capital. Until 4Q10, ROIC was calculated considering the effective income tax rate for the period, while in 1Q11 onwards ROIC was calculated considering a theoretical 30% income tax rate. 3Q13LTM Last twelve months ended September 30, 2013.

14

Mast climbing platform

Real Estate

Growth drivers of the residential market: housing financing

Housing financing relative to GDP (%)

UK 83.7% USA 76.1% Germany 45.3% South Africa 24.0%

Housing financing relative to GDP (%) in Brazil

7.4%
6.8%

5.4%

4.1%
China 14.4% 3.1% Chile 11.5% Brazil 7.4%

India
3.5% Russia 2.6% 2009 2010 2011 2012 2013

In 2011; In 2010; In 2013. Source: Valor Econmico Newspaper, with data from Abecip and Secovi

16

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 8.1

5.7 9.8

6.2 11.7

Class A

60.4
+33.2 million

Class B 37.0 49.7 58.4 Class C

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

Growth rate (%, p.a.)

< R$ 1,000 31.7 29.1

-0.4%

27.2

38.2 28.0 20.1 10.7 2002

Class D

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

5.9
Class E

> R$ 8,000

+7.1%

1.4 2007 2030E

6.8 2009

3.6 2014E

Source: IBGE and FGV

17

Growth drivers of the residential market: industrialization of the construction process

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 Construo Civil, April 2011, CBIC , CNI, and Mills

18

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

Approximately 800 m2 Source: Tchne Magazine, June 2012 and Mills

19

Growth drivers in the residential market: geographic expansion

Revenue Breakdown

15% 39% 51% 55%

New branches

85%

61%
49% 45% Established branches

2009

2010

2011

2012

2013

Branches opened since November 2009

20

Launches in 2013 represent construction opportunities in 2014

Total launches1
in R$ billion
100%

Constructed area
in million m2
35.0

35%

50.0

30.6
80% 67.4%

43.1
30.0

45.0 40.0 35.0 Constructed area (in million m2)

30%

38.9
60%

25.5%
Launches (in R$ billion)

23.4
40%

23.3
19.8

25.0

25%

28.2
YoY (%) 20%

31.0
30.0

YoY (%)

18.3
20%

20.0

24.6
15% 14.6%

25.0 20.0 10.2% 10.7% 15.0 10.0

17.6%

15.0

0%

10.0
-20% -23.5% -40% -15.4%

10%

5.0

5% 5.0

-60%

0%

2009

2010

2011

2012

2013

2009

2010

2011

2012

2013

1 PDG,

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

21

Real Estate Financial Performance

In R$ million 55.9% 48.6% 66.0 64.9 42.8% 39.6% 37.0% 33.7% 155.8 33.8 20.2% 29.4 16.9% 26.1 12.6% 27.7 12.8% 9.3% 8.2% 43.9 24.6 24.4 14.3% 66.0 23.5% 105.1 113.4 66.5 41.7% 42.4%

72.4

269.7 238.0 47.7% 38.1%

60.5

60.5

102.8

15.7%
10.6%

3Q12

3Q12*

4Q12 Net Revenue

1Q13

2Q13 EBITDA

3Q13

2010 EBITDA Margin

2011

2012 ROIC

3Q13LTM

3Q13/3Q12 Net Revenue EBITDA 20% -28%

3Q13/2Q13 9% -1%

CAGR 10-12 50% 61%

* Excluding the positive effect of R$ 5.3 million of tax contingency reversal in 3Q12
1

ROIC: Return on Invested Capital. Until 4Q10, ROIC was calculated considering the effective income tax rate for the period, while in 1Q11 onwards ROIC was calculated considering a theoretical 30% income tax rate.

3Q13LTM Last twelve months ended September 30, 2013.

22

Castelo 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

24

Growth drivers in the motorized access equipment market: low penetration

The Brazilian aerial platforms and telehandler fleet is very small compared to the US fleet; less than 5%.

Modest rental penetration of 15% in Brazil. Rental penetration is approximately 40% in the USA,
60% in Japan and 80% in England.

Fleet Profile
Brazil - 2013 Total: 29,500
Telescopic handlers 5%

USA - 2011 Total: 785,000

Telescopic handlers 22%

Aerial work platforms 95%

Aerial work platforms 78%

Source: Mills and Yengst Associates

25

Growth drivers in the motorized access equipment market: geographic expansion

Revenue Breakdown

31% New branches 58% 62% 69%

69% 42% Established branches 38% 31%

2009

2010

2011

2012

2013

Branches opened since January 2010

26

In 2013, the Brazilian fleet of motorized access equipment grew 40% compared to 2012
35

Motorized access equipment fleet In thousands of units

30

80%

30

70%

25 60% 21 20 16 15 11 10 8 35% 46% 33% 30% 40% 40% 50%

0 2009 2010 Fleet size 2011 2012 YOY (%) 2013

20%

Source: Mills and Yengst Associates

27

Rental Recognition of our differentiation

2013 Nominated for Best Company for Access of the Year Nominated for IPAF Training Center of the Year
Award will be granted in April 2014

2011 Elected Best Company for Access of the Year

28

Rental Financial Performance

In R$ million 93.9 53.6% 55.7% 53.4% 55.7%

90.1 56.5% 74.2 67.4 49.8% 49.3 43.6 38.0 19.8% 16.9% 36.9 19.1% 57.3% 76.1 54.7%

54.5%
334.4

253.5 52.3 175.4 19.2% 18.5% 18.1% 95.1 51.0 16.5% 93.6 141.2 18.2% 182.1 18.1%

3Q12

4Q12

1Q13 Net Revenue

2Q13

3Q13 EBITDA

2010 EBITDA Margin

2011

2012

3Q13LTM ROIC

3Q13/3Q12 Net Revenue EBITDA 39% 38%

3Q13/2Q13 4% 6%

CAGR 10-12 63% 66%

ROIC: Return on Invested Capital. Until 4Q10, ROIC was calculated considering the effective income tax rate for the period, while in 1Q11 onwards ROIC was calculated considering a theoretical 30% income tax rate.

3Q13LTM Last twelve months ended September 30, 2013.

29

Growth Plan

The potential penetration of our services for increasing productivity enables us to grow independently of the economic performance
Companys revenue versus GDP yoy growth (%)
60% 60%

70%

50% 44% 40% 35% 31% 30%

30%

20%

10%

0%

2009
-10% Mills

2010

2011

2012

9M13

GDP

Industrial GDP

Civil Construction GDP

Source: Mills and Bacen

31

Our 2014 capex budget for rental equipment is R$ 231 million

Capex
In R$ million
413 406

18

9M13 Realized / 2013 Budget (%)

26

324

Rental
163
292

79%

15.4

20 131

217
231

Real Estate

77%

161 169 86 60 74 47 2010 2011 77 51 2012 9M13 25 37 2014 Capex Budget

185 104

Heavy Construction

86%

Reclassified excluding the Industrial Services business unit, for comparison.

32

Capturing opportunities maintaining the commitment to low leverage

1.6x

1.6x 1.4x 1.3x

1.2x 1.2x 1.2x

1.4x 1.3x

1.0x

Target = 1.0x

0.7x

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

33

Evolution of the number of branches

+12
39

51

37 34 16

26 Rental 17 Real Estate

14

15 4 5 5 2007 5 6 2008

16 4 6 6 2009 6 2010 6 2011 6 2012 14 15 16

17

Heavy Construction

8 2013

Excluding the Industrial Services business unit branches, for comparison.

34

Mills Investor Relations Tel.: +55 21 2123-3700 E-mail: ri@mills.com.br www.mills.com.br/ri