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Rio de Janeiro, November 4, 2015 - Mills Estruturas e Servios de Engenharia S.A. (Mills) announces its results for 3Q15.
Highlights
Teleconference
and Webcast
Date: November 5, 2015,
Thursday
Time:
Webcast: www.mills.com.br/ri
Sales of semi new equipment of R$ 7.0 million in the third quarter of 2015
Positive free cash flow of R$ 55.3 million in 3Q15, reaching R$ 162.2 million
Total revenue of R$ 136.5 million in 3Q15, 28.7% lower yoy and 7.7% lower
by lower revenues (-R$ 11.4 million), increased allowance for doubtful debts (+ R$ 6.0
million) and increase in costs of lay-off (+ R$ 1.3 million).
3Q14
2Q15
3Q15
(C)/(A)
(A)
(B)
(C)
Net revenue
191.5
147.9
136.5
-28.7%
-7.7%
EBITDA
66.7
52.1
35.1
-47.4%
-32.8%
34.8%
35.3%
25.7%
80.5
56.9
38.5
-52.2%
-32.5%
n.a.
n.a.
-51.3%
-1.6%
in R$ million
3.2
-8.2
-17.2
9.4%
2.0%
0.8%
Gross Capex
19.5
9.7
9.5
(C)/(B)
The financial and operating information contained in this press release, unless otherwise indicated, is in accordance with the accounting policies
adopted in Brazil, which are in conformity with the International Financial Reporting Standards (IFRS).
Business perspective
A survey conducted by the National Confederation of Industry (CNI Confederao Nacional da Indstria) continues to show
the slowdown in the construction industry activity. The indicator of activity level for the infrastructure industry was 36.0 points in
October, below the 40.91 points in July. The Federal Government estimates new auctions for highway, electric power and ports
still in 2015, which can influence the activity in 2016, but there are still uncertainties regarding the private sectors interest and
the difficulties to finance the projects.
In the real estate market, the launches of the listed companies 2 recorded a fall of 12.7% in 3Q15 as compared to the same
period of the previous year. According to ABECIP (Brazilian Association of Real Estate Loans and Savings Companies), the
volume of loans granted for purchase and construction of real estate totaled R$ 5.87 billion in August, a fall of 35.9% against the
same period of 2014.
In the motorized access equipment market, prices are pressured since the beginning of the year due to the high idleness in the
market.
Ricardo Gusmo
Commercial Officer
for Construction
Avelino Garzoni
Engineering and
OperationsOfficer
Marcelo Yamane
Rental Officer
Frederico Neves
CFO and IRO
Deise Vieira
Human Resources
Officer
Construction
In October we concluded the move of Mills headquarters from Barra da Tijuca to Jacarepagu, at the same address of the
warehouse and operations in Rio de Janeiro. The move, approved by the shareholders at the Extraordinary General Meeting
(EGM) held on October 13, aims at a closer proximity among the board of officers, administrative and operating departments,
improving the information flow and streamlining the decision-making process, as well as reducing expenses.
Mills continues its efforts to reduce costs and expenses, seeking to adapt to the uncertainties in the market in which it operates.
1
Values below 50 indicate perspective of slowdown in the industrys activity in the next six months, while values above 50 indicate perspective of expansion of the
industrys activity in the next six months.
2
Cyrela, Direcional, Even, Gafisa, Helbor, MRV and Rodobens.
Revenue
Net revenue reached R$ 136.5 million in 3Q15, a drop of 7.7% qoq and of 28.7% year-over-year (yoy).
Rental revenues dropped 7.9% in 3Q15 over the previous quarter, or R$ 9.9 million. Losses in price and mix of the three
business units were responsible for a contraction of R$ 11.3 million in revenues, of which R$ 3.2 million was in the Construc tion
business unit and R$ 8.1 million in the Rental business unit. The drop in prices is the result of a market shrinkage, resulting in
lower demand and increased idleness. Rental revenues in Construction business unit were also affected by a R$ 1.1 million
decrease in rented volumes, whereas in the Rental business unit, there was a positive effect in volume of R$ 2.6 million.
Net Revenue Evolution
In R$ million
0.4
2.6
8.1
1.8
65.3
0.7
35.6
33.4
Heavy
Construction
2Q15
Volume
25.0
Price
and Mix
3Q15
2Q15
Real Estate
Volume
59.8
1.4
Rental
22.9
Price 3Q15
and Mix
2Q15
Volume
Price 3Q15
and Mix
The utilization rate in the last twelve months was 52.3% in Construction, worse than the previous quarter mainly due to the
deterioration of the real estate market since volumes in Heavy Construction remained stable in the quarter. In Rental the
utilization rate in the last twelve months was 61.6%, reflecting an improvement in rental volume as compared to the previous
quarter.
100%
Construction
Rental
100%
80%
80%
60%
60%
40%
20%
0%
40%
20%
0%
Sales in the quarter totaled R$ 10.2 million, of which R$ 7.0 million related to semi new equipment. Sales of semi new
equipment totaled R$ 1.6 million in Construction and R$ 5.4 million in Rental, part of it coming from equipment exports. In
August, Rental closed an equipment sale agreement estimated at EUR 8 million, a revenue that will be recognized as the
equipment are delivered, which are estimated to occur during 4Q15 and 1Q16.
Costs
COGS (Cost of Goods Sold), excluding depreciation, totaled R$ 49.2 million in 3Q15, 1.4% up from the previous quarter and
22.7% down from 3Q14. In 3Q15, COGS was impacted by the change of address from Simes Filho branch to Camaari, which
generated non-recurring expenses of R$ 0.3 million. The move was necessary since Simes Filho branch had not enough
space to store equipment that were previously located in the Bahias warehouse sold in 2013 together with the sale of
Industrials Services business unit.
Mills COGS are indicated in the table bellow. Costs of job execution and equipment storage include expenses on personnel,
maintenance, bulk material, transfers between branches, among other items.
COGS, ex-depreciation in 3Q15
R$ 49.2 million
3Q14
in R$ million
2Q15
(A)
(B)
3Q15
(C)
(C)/(A)
(C)/(B)
25.5
11.4
9.8
-61.4%
-13.8%
13.2
11.4
9.8
-25.4%
-13.8%
38.2
37.1
39.4
3.2%
6.1%
63.6
48.5
49.2
-22.7%
1.4%
Freight
8%
Assets
write-off
6%
Others
6%
Workforce
41%
Sales
14%
Bulk
Material
25%
In 3Q14, costs of sales and asset write-offs were impacted by R$ 12.3 million in Easy Set adjustments that, if not considered,
would amount to R$ 13.2 million in the quarter. Thus, costs of sales and asset writes-offs, excluding the Easy Set adjustments,
decreased by 25.4% in 3Q15 against 3Q14, as a result of the drop in sales revenues and indemnities in the period (-38.0%).
Quarter-over-quarter, the decrease in COGS in Construction is due to lower sales and asset write-offs costs (-R$ 1.2 million), a
greater rationalization of freight costs (-R$ 1.2 million), partially offset by the increase in maintenance costs (+R$ 1.0 million),
such as utilization of wooden sheets in formworks. In Rental, the growth as compared to the previous quarter is due a greater
consumption of spare parts for machinery maintenance, which lead to an increase of R$ 1.2 million in maintenance costs, and a
larger volume of contracted freight between units (+R$ 0.7 million). COGS in 3Q15 was impacted by R$ 0.6 million in layoff
costs.
1,2
COGS, ex-depreciation
R$ million
1,2
1,0
0,3
COGS, ex-depreciation
R$ million
0,2
0,4
28,0
1,2
0,7
27,1
22,1
20,5
Construction
COGS, ex Sales and Workforce Maintenance
depreciation Asset write2Q15
offs
Rental
Freight
Others
COGS, ex
COGS, ex
depreciation depreciation
2Q15
3Q15
Sales and
Asset writeoffs
Maintenance
Freight
COGS, ex
depreciation
3Q15
The proportion of COGS over net revenue has grown since last year. Further to the decrease in sales margins, which impacted
this ratio, this result is impacted by personnel costs that are not reduced in the same proportion as the increase in equipment
idleness. The costs of operational staff and materials used in the maintenance activity also did not decrease because more
equipment have entered the warehouses as a result of higher idleness.
33%
50.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
46%
46%
52%
1.8
3.9
4.7
11.4
10.5
10.9
4Q14
1Q15
57%
55%
3.2
3Q14*
3.0
8.2
6.8
2Q15
3Q15
40.060%
50%
30.040%
20.030%
20%
10.0
10%
0.00%
29%
23%
25%
14.9
14.7
23%
14.2
14.9
23.0
24.5
2Q15
3Q15
13.3
23.3
3Q14*
22.4
18.1
4Q14
1Q15
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Equipment Storage
Assets write-offs
Job Execution
Cost of Sales
Expenses
SG&A (Selling, General and Administrative Expenses)3, excluding depreciation and allowance for doubtful debts (ADD), totaled
R$ 44.3 million in 3Q15, 2.3% down from 2Q15 and 15.6% down from 3Q14. The table bellow presents SG&A breakdown and
shows the effects of cost reduction initiatives performed until now. The major impact was the contribution to a reduction of
commercial, operational and administrative SG&A of 24.3% yoy.
This reduction is higher in real terms, considering the average raises of 8% from labor disputes. The restructuring effect
performed this quarter provides estimated annual savings of R$ 10 million.
3Q14
2Q15
3Q15
(C)/(A)
(A)
(B)
(C)
41.3
31.5
31.2
-24.3%
-0.7%
General Services
9.8
10.9
11.3
15.6%
3.5%
Other expenses
1.4
2.9
1.7
20,1%
-41.4%
52.5
45.3
44.3
-15.6%
-2.3%
in R$ million
(C)/(B)
The SG&A relating to Selling, Operating and Administrative functions include current expenses of various departments,
including sales, marketing, engineering, projects and the administrative back office, such as HR and Financial
departments.
General Services comprise the expenses incurred by the head office and the various branches (rents, fees, security
and cleaning, mainly).
Other expenses are items in great part without cash effect, such as provisions for stock option programs, provisions for
contingencies, provisions for slow-moving inventories and some occasional disbursements.
General Services expenses increased due to contractual adjustments of property rental and security and cleaning services.
Besides, there were changes of address of some branches, which also impacted this account.
Other expenses presented a reduction due to lower stock options expenses.
G&A corresponds to the sum of the Rental and Construction business units.
15,0%
As % of net revenues
13,0%
11,0%
12,8%
Ex clients under investigation
9,0%
7,0%
6,8%
5,9%
5,9%
5,3%
4,2%
5,0%
3,0%
1,7%
2,1%
2,0%
0,3%
1,2%
1,0%
2010
-1,0%
2011
2012
2013
2014
1Q15
2Q15
3Q15
-0,8%
49.9%
3Q14
70.7%
70.4%
1Q15
2Q15
76.9%
57.9%
4Q14
3Q15
The graph above shows the effect of allowance for doubtful debts on the coverage of Mills past due receivables, including the
trade notes with maturities extended.
By business unit, ADD posted growth in Rental, stability in Heavy Construction, and decrease in Real Estate in 3Q15 as
compared to the previous quarter. The allowance for doubtful debts for each business segment is as follows:
3Q14
2Q15
3Q15
(C)/(A)
(C)/(B)
(A)
(B)
(C)
27.4%
-2.7%
n.a.
n.a.
n.a.
n.a.
-8.1%
n.a.
in R$ million
Heavy Construction
% of net revenue
Real Estate
% of net revenue
Rental
% of net revenue
Total allowance for doubtful debts
% of net revenue
3Q15 Earnings Release
2.3
2.9
2.9
4.3%
7.0%
7.0%
2.2
0.8
-0.3
4.5%
2.4%
-1.3%
4.3
-1.8
5.4
4.7%
-2.4%
7.9%
8.7
1.9
7.9
4.5%
1.2%
5.9%
6
EBITDA
Cash generation, as measured by EBITDA, reached R$ 35.1 million in 3Q15, 47.4% down from 3Q14 and 32.8% down from
2Q15, mainly due to the price and mix effect (- R$ 11.3 million) and increased allowance for doubtful debts in Rental business
unit (+ R$ 7.2 million). The result was also affected by the move of the Bahia branch to Camaari (+R$ 0.3 million) and
increased layoff costs, of R$ 3.1 million in 3Q15 versus R$ 1.8 million in 2Q15.
Change in EBITDA
In R$ million
60
1.5
11.3
50
1.5
0.2
1.8
6.0
40
1.6
30
52.1
35.1
20
10
0
The EBITDA margin was 25.7% in 3Q15, against 34.8% in 3Q14 and 35.3% in 2Q15. Excluding the layoffs in the period, the
move to Camaari and the allowance for doubtful debts relating to customers involved in ongoing investigations, EBITDA would
total R$ 38.5 million, with EBITDA margin of 28.3% in 3Q15.
Accumulated EBITDA for the twelve-month period ended September 30, 2015, LTM EBITDA, totaled R$ 190.3 million.
Excluding extraordinary items, such as inventory adjustments (R$ 2.3 million), restructuring indemnities (R$ 10.3 million), ADD
related to the effects of ongoing investigations (R$ 21.8 million) and expenses incurred on the move to Camaari (R$ 0.3
million), LTM EBITDA would be R$ 224.9 million.
Financial result
3Q14
2Q15
3Q15
(C)/(A)
(C)/(B)
(A)
(B)
(C)
10.4
6.9
8.9
-14.6%
28.2%
in R$ million
Financial income
Financial expense
28.2
23.0
24.1
-14.5%
4.9%
Financial result
-17.8
-16.1
-15.2
-14.5%
-5.2%
The finance result was negative by R$ 15.2 million in 3Q15, against a negative R$ 16.1 million in 2Q15, due to the decrease in
net indebtedness quarter-over-quarter, in spite of the increase in the average cost of debt for the period.
Net earnings
In 3Q15 Mills reported a loss of R$ 17.2 million, against a loss of R$ 8.2 million in 2Q15 and profit of R$ 3.2 million in 3Q14.
Quarter-over-quarter, the variation is explained mainly by the R$ 17 million decrease in EBITDA, impacted by the decrease in
revenue (-R$ 11.4 million), increase in ADD (+R$ 6.0 million) and layoff costs (+R$ 1.3 million).
ROIC
ROIC was 0.8% in 3Q15, against 2.0% in 2Q15, impacted mainly by lower average prices of rental volume and increased
allowance for doubtful debts in the period.
3Q15 Earnings Release
47
193
428
193
174
150
106
106
38
Principal Interests
Cash
position
2016
2017
2018
2019
2020
Cash flow
Cash flow from operating activities, before interest paid plus proceeds from sale of property, plant and equipment and intangible
assets, amounted to R$ 65 million in 3Q15, against R$ 68 million in 2Q15, impacted by restructuring expenses. In the last
twelve months, cash flow from operating activities totaled R$ 310 million.
The free cash flow, measured by cash flow from operating activities minus investments, was positive by R$ 55.2 million in 3Q15,
totaling R$ 206.9 million in the last twelve months.
Adjusted operational cash flow and free cash flow
R$ million
384
373
310
296
207
199
159
116
79
102
105
74
92
86
45
11
70
68
65
37
55
-13
-31
-154
-209
-357
Before interest paid plus proceeds from sale of property, plant and equipment and intangible assets
Net cash generated by operational activities, excluding net cash used in investment activities
The cash flow generated by investing activities was positively impacted by the R$ 18.6 million received in July from the sale of
the Industrial Services business unit occurred in 2013.
Mills invested R$ 9.5 million in 3Q15, of which R$ 4.2 million in rental equipment and R$ 1.6 million in equipment licenses,
which are disbursed every five years.
Tables
Table 2 Net revenue per type
in R$ million
Rental
3Q14
2Q15
3Q15
(C)/(A)
(C)/(B)
(A)
(B)
(C)
161.4
125.9
116.0
-28.1%
-7.9%
1.3
1.8
2.6
104.6%
43.2%
Sales
19.1
12.3
10.2
-46.7%
-17.5%
Others
9.8
7.8
7.7
-21.1%
-1.8%
191.5
147.9
136.5
-28.7%
-7.7%
3Q14
2Q15
3Q15
Heavy construction
51.9
27.1%
41.8
28.3%
41.2
30.2%
Real estate
48.6
25.4%
31.6
21.3%
26.5
19.4%
Rental
91.0
47.5%
74.5
50.4%
68.7
50.4%
191.5
100.0%
147.9
100.0%
136.5
100.0%
Table 4 Cost of goods and services sold (COGS) and general, administrative and operating expenses (G&A), ex-depreciation
in R$ million
3Q14
2Q15
3Q15
23.3
18.6%
23.0
23.9%
24.5
24.1%
19.1
15.2%
8.2
8.6%
6.8
6.7%
6.4
5.1%
3.2
3.3%
3.0
3.0%
(g)
(h)
14.9
11.8%
14.2
14.8%
14.9
14.7%
COGS
Equipment storage
63.6
50.7%
48.5
50.6%
49.2
48.4%
SG&A
52.5
41.8%
45.3
47.2%
44.3
43.6%
ADD
8.7
6.9%
1.9
1.9%
7.9
7.8%
0.7
0.6%
0.1
0.1%
0.3
0.3%
125.5
100.0%
95.9
100.0%
101.7
100.0%
3Q14
2Q15
3Q15
Construction
16.7
25.1%
12.7
24.4%
8.7
24.8%
Rental
50.0
74.9%
39.4
75.6%
26.4
75.2%
66.7
100.0%
52.1
100.0%
35.1
100.0%
Total EBITDA
EBITDA margin (%)
34.8%
35.3%
25.7%
3Q14
2Q15
3Q15
(C)/(A)
(C)/(B)
(A)
(B)
(C)
3.2
-8.2
-17.2
-634.2%
110.2%
Financial result
-17.8
-16.1
-15.2
-14.5%
-5.2%
-1.7
-1.1
5.5
-433.7%
-588.7%
22.7
9.0
-7.5
-133.1%
-183.4%
Depreciation
43.3
43.0
42.3
-2.3%
-1.7%
0.7
0.1
0.3
-59.8%
123.4%
EBITDA
66.7
52.1
35.1
-47.4%
-32.8%
Actual
Budget
3Q14
2Q15
3Q15
9M15
2015
(A)/(B)
(A)
(B)
Rental equipment
Construction
10.8
5.1
4.2
10.5
10.0
4.7%
Rental
3.0
0.0
0.0
0.0
0.0
n.d.
Rental equipment
13.8
5.1
4.2
10.5
10.0
104.8%
5.7
4.5
5.3
15.1
24.0
62.7%
Capex Total
19.5
9.7
9.5
25.5
34.0
75.1%
3Q14
2Q15
3Q15
(C)/(A)
(C)/(B)
(A)
(B)
(C)
Rental
79.7
65.3
59.8
-25.0%
-8.4%
11.3
9.2
9.0
-20.8%
-2.6%
91.0
74.5
68.7
-24.5%
-7.7%
COGS, ex-depreciation
23.5
20.5
22.1
-5.9%
7.6%
13.3
16.3
14.9
12.1%
-8.9%
ADD
4.3
-1.8
5.4
n.a
n.a
EBITDA
50.0
39.4
26.4
-47.2%
-33.1%
14.5%
7.4%
5.2%
ROIC (%)
10.4%
1.2%
-2.2%
3.6
0.4
0.2
-94.8%
-48.1%
Invested Capital
683.8
698.7
679.1
-0.7%
-2.8%
584.3
570.2
545.2
-6.7%
-4.4%
Others
99.6
128.5
134.0
34.5%
4.3%
Depreciation
20.9
20.8
20.1
-3.6%
-3.2%
Net revenue
Capex
10
3Q14
2Q15
3Q15
(C)/(A)
(C)/(B)
(A)
(B)
(C)
Net revenue
Rental
81.7
60.6
56.2
-31.2%
-7.2%
Heavy Construction
44.4
35.6
33.4
-24.8%
-6.3%
Real Estate
37.3
25.0
22.9
-38.7%
-8.5%
-10.1%
18.8
12.7
11.5
-38.9%
Heavy Construction
7.5
6.2
7.8
4.3%
26.5%
Real Estate
11.3
6.6
3.7
-67.6%
-44.4%
100.5
73.4
67.7
-32.6%
-7.5%
COGS, ex-depreciation
40.1
28.0
27.1
-32.5%
-3.1%
39.2
29.0
29.4
-25.0%
1.3%
ADD
4.4
3.7
2.5
-43.0%
-31.5%
EBITDA
16.7
12.7
8.7
-48.1%
-31.7%
16.6%
17.3%
12.8%
ROIC (%)
6.7%
-2.2%
-3.1%
Capex
11.7
5.1
5.8
-50.3%
13.2%
Invested Capital
820.3
774.6
743.9
-9.3%
-4.0%
577.9
539.7
521.3
-9.8%
-3.4%
Others
242.4
234.9
222.5
-8.2%
-5.3%
Depreciation
22.4
22.2
22.2
-1.2%
-0.4%
Rental
Mills
-70 pbs
-229 pbs
-131 pbs
-5 pbs
27 pbs
6 pbs
Others
-4 pbs
-6 pbs
2 pbs
Total
-82 pbs
-214 pbs
-128 pbs
-944 pbs
-933 pbs
-866 pbs
49 pbs
88 pbs
57 pbs
Others
17 pbs
-70 pbs
2 pbs
-973 pbs
-929 pbs
-861 pbs
Total
11
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) 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.
ROIC LTM: ((Net earnings in the last twelve months (30% IR) + (firms remuneration in which possess minority
shareholding)/ (Average Invested Capital in the last thirteen months))
Annual ROIC: (Annual Operational Income (30% Income Tax Rate) + remuneration from affiliates) / Average Invested
Capital of the last thirteen months
(c) Capex (Capital Expenditure) Acquisition of goods and intangibles for permanent assets.
(d) Net cash flow - Net cash generated by operating activities minus net cash used in investing activities.
(e) Net Debt Gross debt less cash holdings.
(f) 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.
(g) Job execution costs Job execution costs include: (a) labor costs from construction jobs supervision and technical
assistance; (b) 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; (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.
(h) Warehouse costs Warehouse costs includes expenses directly related to the warehouse management, storage, repair
and maintenance of equipment to be rented and to be sold, including labor costs, PPEs used in the warehouse activities
(handling, storage and maintenance), materials needed (forklift fuel, gases for welding, plywood, paints, timber battens,
among others) and machines and equipment maintenance (forklifts, welding machines, water-blasting hoists and tools in
general).
(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 business segment, it is the average of the capital
invested by the company weighted by the average assets of each business segment (net liquid assets plus PPE Property,
Plant and Equipment). The quarter asset base is calculated as the average of the asset base of the last four months and the
annual asset base is calculated as the average of the last thirteen months.
12
INCOME STATEMENT
in R$ million
3Q14
2Q15
3Q15
191.5
147.9
136.5
(102.7)
(87.1)
(87.0)
88.7
60.8
49.5
(66.1)
(51.8)
(57.0)
Operating profit
22.7
9.0
(7.5)
Financial expense
(28.2)
(23.0)
(24.1)
Financial income
10.4
6.9
8.9
Financial result
(17.8)
(16.1)
(15.2)
4.9
(7.1)
(22.7)
(1.7)
(1.1)
5.5
3.2
(8.2)
(17.2)
128,058
128,058
128,058
0.03
(0.06)
(0.14)
13
Balance Sheet
in R$ million
Assets
Current Assets
Cash and cash equivalents
Trade receivables
Inventories
Recoverable taxes
Advances to suppliers
Derivative financial instruments
Other receivables- Sale of investee
Other current assets
Current Assets held for sale
Total Current Assets
3Q14
2Q15
3Q15
161.1
177.9
32.0
29.8
0.2
0.1
17.0
4.7
422.7
138.0
121.1
21.4
29.8
0.2
18.5
7.5
336.6
192.5
114.8
20.5
28.8
0.2
19.1
7.6
22.0
405.5
0.9
36.4
20.0
10.5
34.0
101.7
22.1
23.7
11.4
37.0
1.1
95.2
17.6
29.2
11.7
19.1
77.7
Investment
Property, plant and equipment
Intangible assets
87.4
1,230.9
76.0
1,394.3
87.4
1,113.3
76.3
1,277.0
87.4
1,049.2
78.2
1,214.7
1,496.0
1,372.3
1,292.4
Total Assets
1,918.7
1,708.9
1,697.9
Non-Current Assets
Trade receivables
Recoverable taxes
Deferred taxes
Deposits in court
Other trade receivables
Other assets
14
in R$ million
Liabilities
3Q14
2Q15
3Q15
Current Liabilities
Suppliers
Borrowings and financings
Debentures
Salaries and payroll charges
Income tax and social contribution
Tax refinancing program (REFIS)
Taxes payable
Dividends and interest on equity payable
Derivative financial instruments
Other current liabilities
18.6
46.4
109.6
25.3
2.9
1.0
4.7
21.8
1.2
2.1
11.1
3.2
107.8
21.7
1.1
2.9
0.0
0.0
0.2
11.4
3.2
189.2
23.2
1.2
2.1
0.0
0.6
233.6
148.1
230.9
Non-Current Liabilities
Borrowings and financings
Debentures
Provision for tax, civil and labor risks
Tax refinancing program (REFIS)
15.7
573.3
12.8
9.2
13.5
493.7
12.0
8.9
12.7
415.4
12.8
9.3
611.0
528.1
450.3
Total Liabilities
844.6
676.2
681.2
Stockholders' Equity
Capital
Earnings reserves
Capital reserves
Valuation adjustments to equity
Retained earnings
563.3
447.9
17.3
0.3
45.4
563.3
487.0
4.8
0.2
(22.7)
563.3
487.0
6.0
0.2
(39.9)
1,074.1
1,032.7
1,016.7
1,918.7
1,708.9
1,697.9
15
Cash Flow
in R$ million
3Q14
2Q15
3Q15
4.9
(7.1)
(22.7)
Adjustments
Depreciation and amortization
43.3
43.0
42.3
1.5
(0.0)
0.4
2.4
2.2
1.2
(1.7)
(12.0)
(0.2)
(7.1)
Interest, monetary and exchange rate variation on loans, contingencies and deposits in court
18.9
19.7
20.5
8.7
1.8
8.0
2.7
12.3
0.8
(3.3)
73.3
67.3
64.7
12.9
2.1
(5.2)
Inventories
(2.0)
(2.3)
0.9
8.6
6.2
5.9
(0.1)
(0.6)
(0.5)
Other assets
3.4
(0.0)
0.5
Suppliers
1.0
(3.7)
1.6
1.0
1.7
1.5
Taxes payable
(0.6)
0.0
(0.9)
Other liabilities
(3.2)
(1.1)
0.8
21.1
2.2
4.6
46.5
Recoverable taxes
Deposits in court
99.3
62.4
Lawsuits settled
(0.2)
(0.8)
Interest paid
(16.8)
(24.5)
(18.6)
(10.7)
71.6
37.2
28.0
(31.0)
(6.4)
(9.5)
Proceeds from sale of property, plant and equipment and intangible assets
16.8
5.8
18.2
16.6
18.6
2.4
(0.6)
27.3
0.3
0.0
(3.3)
(21.8)
(0.0)
Repayment of borrowings
(3.6)
(90.8)
(0.8)
(6.6)
(112.5)
(0.8)
67.3
(76.0)
54.5
93.7
214.0
138.0
161.1
138.0
192.5
16
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).
17