Professional Documents
Culture Documents
UBS Global Emerging Markets One-on-One Conference: November 2011
UBS Global Emerging Markets One-on-One Conference: November 2011
UBS Global Emerging Markets One-on-One Conference: November 2011
November 2011
Disclaimer
This presentation 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 governmental rules, that are
subject to change without previous notice. To obtain further information on factors that may give rise to results different from those forecast by Mills, please consult the reports filed with the Brazilian Comisso de Valores Mobilirios (CVM).
Agenda
Financial performance
Growth plan
Mills at a Glance
Uncontested market leader in providing temporary concrete formwork and tubular structures in the Brazilian market One of the major players in the industrial services and motorized access equipment Long-term relationship with the major companies in the sector
Jahu
Rental
638
ROIC (%)
24%
51.2%
18.1%
10.9%
35%
9.8%
% Total
39.5%
17.0%
207
21% 37% 12% 26%
39.7%
11.0% 13.7%
Total
32.4%
20%
25%
1 3Q11
Agenda
Financial performance
Growth plan
Others 20
Energy 139
Mining 72
Steel 36
Investments in infrastructure
To ensure its competitiveness in the global scenario and sustainable growth rates, Brazil will have to invest strongly in infrastructure in the coming years
Infrastructure deficit
USA Index = 1.0, Index 2011-2012
10
0.2 0.3 0.4 0.4 0.5 0.5 0.5 0.6 0.6 0.7 0.7 0.9 0.9 1.2 1.3 2.2 2.9 3.4 4.0 4.0 4.5 5.3
In R$ Billion
Mills presence
5.4
6.1 6.7
6.9
13.1 16.0
22.0
25.7 26.2 29.2 40.2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Scheduled dates for start and end of construction jobs
2005
11
The evolution of the work from the contracts signed in 1H11 and the new contracts will contribute to the growth of the utilization rate in the coming months
Important contracts per stage in the evolution of the monthly revenue from the Heavy Construction works
(Basis 100= Maximum monthly revenue in the life of construction)
Newly hired
Source: Mills
Alcantara Launch Center Jac Pessego Expansion EMBRAPORT So Paulo Beltway - Eastern Section
Revenue Index
Hydroelectric Powerplant Jirau Comperj Refinery Man Garrincha Stadium Maracan Stadium Fonte Nova Stadium Recife Stadium
Time
12
* ex ADD: Excluding the Allowance for Doubtful Debts effect of R$ 5.8 million.
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.
13
Diviso Construo
14
15
Housing financing has increased 5x in the last five years, driven by credit availability, lower inflation and
lower interest rate Housing financing is very small compared to other countries. In 2009, the Brazilian total housing financing/GDP was 3%, compared to 77% in England, 68% in USA, 28% in France and 20% in Chile. In 2010, the Brazilian total housing financing/GDP was 4% and it is expected to reach 11% by 2014. Government program for low income housing, Minha Casa Minha Vida, targets investments of R$ 278 billion in the 2011-2014 period. Lack of labor, higher labor costs and need to shorten construction cycle will demand more industrialized processes in the Brazilian residential and commercial construction market.
Source: Brazilian Central Bank , ABECIP Associao Brasileira das Entidades de Crdito Imobilirio e Poupana and PAC2 Report
16
no 11
yes 89
Source: Sondagem Especial Construo Civil, April 2011, CBIC and CNI
The percentages do not sum 100% because each entrepreneur could choose up to three options
17
Real estate launches showed growth of 16% in relation to 9M11, indicating continuous strong demand in the residential and commercial construction market in 2011
16%
10%
Source: reports from 14 public real estate companies and Mills analysis
18
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.
19
20
21
22
Petrobras has announced its 2011-2015 business plan with investments totaling US$ 224.7 billion in this period
Petrobras total investment plan for 2011-2015 period: US$ 224.7 billion
Petrobras pre-salt investment plan for 2011-2015 period: US$ 53.4 billion
US$ 117.7 billion will be invested in E&P in Brazil, with the aim of increasing domestic oil production from 2.1 million bpd in 2010 to 3.1 million bpd in 2015, with 0.5 million bpd related to pre-salt Critical resources needed up till 2013: 26 drilling rigs
53 production platforms
465 special support vessels US$ 70.6 billion will be invested in refining, of which 50% to expand the refining facilities, the major refinery projects being Abreu e Lima (PE), Comperj (RJ) and Premium I (MA)
Source: Petrobras 2010-2014 Business Plan and 2011-2015 Business Plan
23
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.
24
26
The Brazilian aerial platforms and telehandler fleet is very small compared to the US fleet; less than
2% Modest rental penetration of 15% in Brazil. Rental penetration is approximately 40% in the USA, 60% in Japan and 80% in England Recent regulation obliges the use of aerial platforms to lift people, increasing safety and productivity in the work site Brazilian fleet should increase at average annual rate of 22% in the next few years and reach
27
In 2010, the Brazilian fleet of motorized access equipment grew 40.6% compared to 2009
Fleet profile Brazil - 2010 Total: 11,250
+22.1% p.a.
9%
+40.6%
28
* ex ADD: Excluding the Allowance for Doubtful Debts effect of R$ 3.3 million.
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.
29
Agenda
Financial performance
Growth plan
30
16%
30%
39%
35%
32%
550
207
195
404
158
299
Entrance of PE Funds
192
90
30
2007
2008
2009
2010
3Q11 LTM
2007
2008
2009
2010
3Q11 LTM
31
1.0x
2.1x
1.2x
-0.1x
1.6x
32
* ex ADD: Excluding the Allowance for Doubtful Debts effect of R$ 9.1 million.
33
34
Agenda
Financial performance
Growth plan
35
We invested R$ 316.0 million in organic growth in 9M11, 73% of our 2011 revised budget
Capex
in R$ million 433
349 316
53%
64%
36
40%
60%
Branches opened prior to November 2009 Branches opened after November 2009
37
Roraima
Amap
Amazonas Par Maranho Cear Rio Grande do Norte Paraiba Piaui Acre Tocantins Rondnia Mato Grosso Distrito Federal Bahia Sergipe Pernambuco Alagoas
Parana
Rio de Janeiro
(sede)
Santa Catarina
38
Modelo de Negcio Attractive Dinmica SetorialUnique Business nico com fortes Industry Atraente em todosModel with Solid Vantagens Competitive Dynamics in os Segmentos competitivas Advantages Each Business
39