Mills 1Q14 Results

Investor Relations

BM&FBOVESPA: MILS3 and OTC-US: MILTY
Mills: EBITDA margin reaches 51.7% in 1Q14
Rio de Janeiro, May 6, 2014 - Mills Estruturas e Servios de Engenharia S.A. (Mills) presented in the first quarter of 2014
(1Q14) record net revenues, showing the highest gross and EBITDA margins in the last eighteen months. Main highlights of
Mills 1Q14 performance:
Net revenue of R$ 207.8 million, 10.3% higher than the first quarter of 2013 (1Q13)
1
.
Record rental revenue of R$ 176.7 million, a 10.4% increase over 1Q13.
EBITDA
(a)
of R$ 107.5 million, 12.4% above 1Q13.
EBITDA margin of 51.7%, versus 50.8% in 1Q13.
Net earnings of R$ 33.9 million, a decrease of 10.0% compared to earnings from continuing operations of 1Q13.
Return on invested capital (ROIC)
(b)
of 11.5%, against 14.9% in 1Q13.
Capex
(c)
of R$ 102.3 million, of which R$ 92.8 million in rental equipment.
Better performance of the Real Estate business unit, with EBITDA margin of 39.4%.
Conclusion of the successful implementation of SAP in February, 2014.
Winner of the IPAF Training Center of the Year award, in the IAPA awards.
Approval of shareholder remuneration, at the General Shareholders Meeting, totaling R$ 46.5 million (gross amount), in the
form of interest on equity and dividends.
in R$ million
1Q13 4Q13 1Q14 (C)/(A) (C)/(B)
(A) (B) (C) % %
Net revenue 188.4 210.1 207.8 10.3% -1.1%
EBITDA 95.7 102.4 107.5 12.4% 5.0%
EBITDA margin (%) 50.8% 48.7% 51.7%

Earnings from continuing operations 37.6 46.8 33.9 -10.0% -27.7%
Earnings from discontinued
operations
1.6 -1.2 - - -
Net earnings 39.3 45.6 33.9 -13.7% -25.7%
ROIC (%) 14.9% 13.4% 11.5%

Capex 127.5 93.9 102.3 -19.7% 9.0%
Invested Capital
(d)
1,330.9 1,592.3 1,627.8 22.3% 2.2%
Rental net PP&E 937.3 1,137.5 1,163.8 24.2% 2.3%
Others 393.6 454.8 464.0 17.9% 2.0%
Table 1 - Key financial indicators reclassified, for comparison.

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)


1
Reclassified, excluding the Industrial Services business unit, for comparison.

2 Mills 1Q14 results
Business perspective
The level of activity in the heavy construction sector remained lower than normal at the beginning of 2014, but the prospect is
for improvement, as indicated by the expected level of activity, according to research conducted by the National Confederation
of Industry (CNI - Confederao Nacional da Indstria), which reached 53.0 points
2
in April 2014. BNDES (Banco Nacional de
Desenvolvimento Econmico e Social) disbursements for infrastructure totaled R$ 1.1 billion in the first two months of 2014,
equal to 17% year-over-year (yoy) growth, while cement sales reached 17.1 million tons in 1Q14, according to the National
Union of Cement Industries (SNIC - Sindicato Nacional de Indstria do Cimento), with a yoy growth rate of 6.4%.
In 2012 the government launched a package of logistics concessions comprising investments of R$ 187 billion. Concessions
with successful auctions in late 2013 already account for investments of R$ 62 billion, surpassing the amount transferred to the
private sector over the past ten years. There are two toll roads auctions scheduled for May 2014, Tamoios and BR-153
(TO/GO), which account for R$ 8.2 billion.As for the market for residential construction, housing credit, which, according to data
from the Brazilian Central Bank (Bacen), increased by 29.4% yoy in February 2014, continues to boost demand. Real estate
companies continue optimistic, as indicated by the index for expected level of activity which reached 54.3 points in April 2014,
according to a CNI study. In addition, new building announced by the listed real estate3 companies presented yoy growth of
55.3% in 1Q14, but with sales growing at a lower rate, 25.7% in the same period.
Regarding the market for motorized access equipment, in 1Q14 1,500 new machines entered the Brazilian market, an increase
of 5% compared to the end of 2013, bringing the fleet to a total of 31,000 aerial work platforms and telescopic handlers in Brazil.
Revenue
Net revenues reached R$ 207.8 million in 1Q14, 10.3% higher yoy, and in line with the previous quarter, since the investment
this quarter was more concentrated in March, without enough time to generate rental revenue. The 10.4% yoy expansion of
equipment rental revenue was the main growth driver for total revenue. Sales revenues, which tend to be more volatile quarter
over quarter, reached R$ 17.1 million, a 24.1% quarter-over-quarter (qoq) reduction, due to the lower volume of sales in all
business units.
Costs and Expenses
The cost of goods and services sold (COGS), excluding depreciation, totaled R$ 42.8 million in 1Q14, with a 15.8% qoq
reduction, due to lower cost of sales, personnel costs, material and freight costs, enabling expansion of gross margin, excluding
depreciation, from 75.8% to 79.4%.
General, administrative and operating expenses (G&A), excluding depreciation, totaled R$ 58.5 million in 1Q14, 3.1% higher
than the fourth quarter of 2013 (4Q13).
It is worth mentioning that until 4Q13 there was one more business unit - Industrial Services to receive its share of the
allocation of the Companys G&A. The Industrial Services share of G&A was included only in the result of discontinued
operations and not considered in Mills consolidated EBITDA.
Earlier this year we launched a cost reduction program, especially in corporate expenses, to minimize the impact of higher G&A
post-allocation due to the lower division factor in the operating margins of the three remaining business units.
Considering the amount of R$ 66.4 million pre-allocation and excluding the capital gain from the sale of Industrial Services in
4Q13, there was an 11.9% qoq reduction in G&A.


2
Values above 50 indicate a prospect of growth of activity in the sector for the next six months.
3
Cyrela, Direcional, Even, Eztec, Gafisa, Helbor, MRV, and Rodobens.

3 Mills 1Q14 results
EBITDA
Cash generation, as measured by EBITDA, reached R$ 107.5 million in 1Q14, an 12.4% yoy expansion and a 5.0% qoq
increase. The accumulated EBITDA in the last twelve months ended March 31, 2014, LTM EBITDA, reached R$ 414.9 million.
The EBITDA margin was 51.7% in 1Q14, against 48.7% in 4Q13, positively affected by the enhanced performance of the Real
Estate business unit.
Net Earnings
Net earnings amounted to R$ 33.9 million in 1Q14, a 25.7% qoq reduction, since the previous quarter was positively influenced
by the net profit of R$ 8.3 million from the sales of the Industrial Services business unit, by the shareholder remuneration from
Rohr of R$ 1.6 million, and by the recognition of payment of interest on equity (JCP).
Excluding these effects, the EBITDA increase (R$ 5.1 million) was more than offset by the expansion of the amount of
depreciation (R$ 2.1 million) and negative net financial result (R$ 3.0 million). The net financial result was a negative R$ 16.5
million in 1Q14, versus a negative R$ 13.5 million in 4Q13, due to higher debt level and interest rates.
ROIC
ROIC reached 11.5% in 1Q14, against 13.4% in 4Q13, negatively impacted mainly by the lower utilization rates and lower sales
volume.
Debt indicators
Mills total debt was R$ 635.0 million as of March 31, 2014. At the end of 1Q14 our net debt
(e)
position was R$ 626.6 million,
versus R$ 606.5 million at the end of 2013.
Our debt is 27% short-term and 73% long-term, with an average maturity of 1.7 years, at an average cost of CDI+1.00%. In
terms of currency, 100% of Mills debt is in Brazilian reais.
Our leverage, as measured by the net debt/LTM EBITDA, was at 1.5x as of March 31, 2014. Total debt/enterprise value
(f)
was
15.5%, while interest coverage, as measured by the LTM EBITDA/LTM interest payments, was 8.2x.
We are structuring an issuance of up to R$ 200 million unsecured, non-convertible debentures with a five-year term and bear
interest at certain percentage range to be defined pursuant to the bookbuilding process, in any case, limited to 109.25% of t he
DI rate.
We issued, in April 2014, promissory notes, totaling R$ 200 million and bearing interest at 106% of the DI rate, that will be
settled with the debentures offering proceeds. The proceeds of these offerings will be used to (a) refinance indebtedness of the
Company; (b) purchase rental equipment and (c) general corporate purposes and expenses of the Company.
We believe that, as our investment matures, our operating cash flow will increase and, as a result, our leverage will return to a
level close to its target of 1.0x at the end of 2014.
Capex
Mills invested R$ 102.3 million in 1Q14, of which R$ 92.8 million in rental equipment. The Rental business unit was responsible
for 71.7% of the investments, Heavy Construction for 14.7% and Real Estate for 4.4%.
The remaining Rental budget for the year will be invested in accordance with the opening of new branches, scheduled for the
second half of 2014.


4 Mills 1Q14 results

Performance of the business units
Heavy construction
Net revenue of Heavy Construction totaled R$ 51.0 million in 1Q14, with a 7.5% yoy increase. Rental revenue expanded 10.9%,
offsetting the reduction of R$ 1.3 million in sales revenue. Revenue from sales, technical assistance and others decreased R$
4.8 million qoq, or 39.6%, while rental revenue reduced R$ 2.8 million, or 6.1%, due to a lower utilization rate, which returned to
normal level in 1Q14.
In 1H14 there are several constructions in the demobilization stage, such as the airports, Abreu and Lima refinery and Jirau
hydroelectric power plant, contributing to a reduction in the utilization rate. However, we already have major long term contracts
in the ramp up stage, such as the Vales project S11D, Belo Monte hydroelectric power plant, Guaba pulp mill expansion, north
beltway, and Salvador and So Paulo subway lines, which will contribute to an increased volume of equipment rented in the
next quarters.
In March we held the workshop "Art Works - New Technologies and Construction Methodologies", with participants from leading
construction companies in Brazil to sponsor our partnership with STRUKTURAS, a world class Norwegian company in bridge
construction technologies, and to discuss alternatives and trends in the construction of bridges and special art works in Brazil. In
May, we will present our findings in the Brazilian Congress of Bridges and Structures.
Moreover, we added two new types of equipments to our portfolio: Mills Light and lifting carts. Mills Light is a formwork system
that is a self-aligning, easy to assemble and with wide application in large construction works. Lifting carts are used for lifting
and assembling precast staves on bridges with overpasses and large gaps, providing greater productivity and safety.
In the last quarter we signed important new contracts, including new stretches in the transposition of the So Francisco river, in
the Norte-Sul railway and in the Belo Monte hydroelectric plant; the Jurong shipyard, in Esprito Santo; for new stretches in the
Comperj refinery and the Olympic park, in Rio de Janeiro; new stretches of subway line 5 and Gold and Silver monorail lines,
the Raposo Tavares highway and the Paralympic center, in So Paulo; Vale projects, in Minas Gerais; and the expansion of a
pulp plant, in Rio Grande do Sul.
The main projects of 1Q14, in terms of revenue were:
South and Southeastern regions: the Comperj refinery, the surroundings of the Maracan stadium, BRT Transcarioca,
Metropolitan Arch and subway line 4, in Rio de Janeiro; Guarulhos and Viracopos airports, Gold and Silver monorail lines
and Jacu-Pssego road complex, in So Paulo; Vale and Gerdau projects and Confins airport, in Minas Gerais; and the
expansion of a pulp plant, in Rio Grande do Sul.
Midwest, North and Northeastern regions: the Belo Monte, Colder, Jirau and Teles Pires hydroelectric plants; the Norte-Sul
railway; Braslia airport, in the Federal District; the Abreu e Lima refinery, in Pernambuco; transposition of the So Francisco
river; Natal airport, in Rio Grande do Norte; the Paraguau shipyard and an acrylic industrial pole, in Bahia; the Companhia
Siderrgica do Pecm steel mill, in Cear; Vale projects, in Par and in Maranho; and the Cuiab light rail, in Mato Grosso.
The lower volume of sales enabled the expansion of gross margin, which was offset by the yoy increase in G&A, due to the
opening of two branches in 1Q13 and also due to moving some branches to bigger warehouses of some branches during the
year 2013. There was a qoq reduction in COGS and G&A, even considering the expansion in the share of G&A allocated to
each business unit, such as administrative expenses, after the conclusion of the sale of Industrial Services.
EBITDA amounted to R$ 25.6 million in 1Q14, with a 5.2% yoy growth. The EBITDA margin was 50.2%, versus 51.3% in 1Q13,
while ROIC was 14.0%, against 18.6% in 1Q13, mainly impacted by lower operational income, as a result of increased
depreciation and G&A, as previously explained.

5 Mills 1Q14 results

Real Estate
Net revenue for Real Estate totaled R$ 59.5 million in 1Q14, 9.7% higher than 4Q13 but 8.2% lower than the same period of the
previous year. Rental revenue increased 2.0% qoq and decreased 15.9% yoy, due to a lower utilization rate, which has
remained below the normal level in 1Q14, compared to the normal level registered in 1Q13.
The volume of proposals have already returned to historical levels in the first quarter, indicating that the utilization rate should
return to a normal level in the next months, since usually there is a two to three month period from the approval of the proposal
and the beginning of shipping equipment for the construction work.
There was a qoq reduction in all COGS items, enabling expansion of gross margin to the same level as of 1Q13. But there was
an increase of G&A post-allocation after the conclusion of the sale of Industrial Services, as previously discussed.
EBITDA reached R$ 23.5 million in 1Q14, a 37.4% qoq growth, with an EBTIDA margin of 39.4% and ROIC of 6.6%, both with
improvement qoq, but still below historical levels, which we aim to return to in the coming quarters, when the utilization rate
return to normal levels.
Rental
The net revenue of Rental amounted to R$ 97.3 million in 1Q14, a new quarterly record, with 27.8% yoy growth and stable qoq.
Rental revenue reached R$ 88.1 million, with an increase of R$ 2.0 million, or 2.4%, qoq offsetting the lower revenue from
sales, technical assistance and others. The utilization rate was below normal level, negatively impacted by the arrival of new
equipment at the end of the quarter, without enough time to rent them.
The lower volume of sales enabled the expansion of gross margin, which was offset by the increase in G&A yoy, due to the
opening of nine branches in 2013. There was a qoq reduction in COGS, while G&A remained stable, even considering the
expansion in the share of G&A allocated to each business unit, such as administrative expenses, after the conclusion of the sale
of Industrial Services. EBITDA reached R$ 58.4 million in 1Q14, a new quarterly record, with 34.1% yoy growth. EBITDA margin
was 60.1%, versus 57.3% in 1Q13, while ROIC was 17.1%, versus 19.1% in 1Q13,negatively impacted by increased working
capital, as we offered, as an exception, longer terms of payment to our clients for better appreciation of the first invoices issued
after SAP implementation.
We received the IPAF Training Center of the Year international award, in the IAPA awards. IPAF is the international
association which promotes the safe and effective use of powered access equipment. We have the largest number of certified
IPAF instructors and training centers to conduct these courses in Latin America, and in 2013 we accounted for 73.5% of all
IPAF certificates for aerial work platform operation in Brazil.

Teleconference and Webcast
Date: Wednesday, May 7, 2014
Time: 11:00 (Braslia time)
Teleconference: +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, Code: 5035660# or www.mills.com.br/ri
Webcast: www.mills.com.br/ri

6 Mills 1Q14 results
Tables
Table 2 Net revenue per type
in R$ million
1Q13 4Q13 1Q14 (C)/(A) (C)/(B)
(A) (B) (C) % %
Rental 160.1 176.6 176.7 10.4% 0.1%
Technical support services 4.3 4.8 2.5 -41.8% -47.9%
Sales 17.2 22.5 17.1 -0.6% -24.1%
Others 6.8 6.1 11.5 68.3% 88.9%
Total net revenue 188.4 210.1 207.8 10.3% -1.1%
Table 3 Net revenue per business unit
in R$ million 1Q13 % 4Q13 % 1Q14 %
Heavy construction 47.5 25.2% 58.6 27.9% 51.0 24.6%
Real estate 64.9 34.4% 54.2 25.8% 59.5 28.6%
Rental 76.1 40.4% 97.2 46.3% 97.3 46.8%
Total net revenue 188.4 100.0% 210.1 100.0% 207.8 100.0%
Table 4 Cost of goods and services sold (COGS) and general, administrative and operating expenses (G&A), ex-depreciation
in R$ million 1Q13 % 4Q13 % 1Q14 %
Costs of job execution
(g)
19.5 21.0% 23.7 22.0% 22.2 21.9%
Costs of sale of equipment 12.1 13.0% 13.0 12.1% 8.9 8.7%
Costs of asset write-offs 0.9 0.9% 2.3 2.1% 1.7 1.6%
Equipment storage 9.1 9.8% 11.9 11.0% 10.1 10.0%
COGS 41.5 44.7% 50.9 47.2% 42.8 42.3%
G&A 51.3 55.3% 56.8 52.8% 58.5 57.7%
Total COGS + G&A 92.8 100.0% 107.7 100.0% 101.4 100.0%
Table 5 EBITDA per business unit and EBITDA margin
in R$ million 1Q13 % 4Q13 % 1Q14 %
Heavy Construction 24.3 25.5% 29.3 28.6% 25.6 23.8%
Real Estate 27.7 29.0% 17.1 16.7% 23.5 21.8%
Rental 43.6 45.5% 56.0 54.7% 58.4 54.3%
Total EBITDA 95.7 100.0% 102.4 100.0% 107.5 100.0%
EBITDA margin (%) 50.8% 48.7% 51.7%
Table 6 Reconciliation of EBITDA
in R$ million
1Q13 4Q13 1Q14 (C)/(A) (C)/(B)
(A) (B) (C) % %
Results of continuing operations 37.6 46.8 33.9 -10.0% -27.7%
Financial result -9.2 -13.5 -16.5 79.8% 22.5%
Income tax and social contribution expenses -20.2 -12.7 -16.5 -18.7% 29.5%
Operational Results before Financial Result 67.1 73.0 66.9 -0.3% -8.4%
Depreciation 28.6 37.5 39.6 38.4% 5.5%
Expenses (revenues) related to the Industrial services
former business unit
0.0 -8.2 1.1

EBITDA 95.7 102.4 107.5 12.4% 5.0%




7 Mills 1Q14 results

Table 7 Investment per business unit
in R$ million
Realized Budget

1Q13 4Q13 1Q14 2014 (A)/(B)

(A) (B) %
Rental equipment

Heavy Construction 21.7 29.4 15.0 37.0 40.5%
Real Estate 24.9 4.2 4.5 25.0 17.9%
Rental 73.3 50.4 73.3 169.0 43.4%
Total Rental equipment 119.9 84.0 92.8 231.0 40.2%
Corporate and consumer goods 7.6 9.9 9.5 42.1 22.6%
Capex Total 127.5 93.9 102.3 273.1 37.5%
Table 8 Heavy Construction financial indicators
in R$ million
1Q13 4Q13 1Q14 (C)/(A) (C)/(B)
(A) (B) (C) % %
Net revenue
Rental 39.4 46.6 43.8 10.9% -6.1%
Technical support services, sales and others 8.0 12.1 7.3 -9.2% -39.6%
Total net revenue 47.5 58.6 51.0 7.5% -13.0%
EBITDA 24.3 29.3 25.6 5.2% -12.5%
EBITDA margin (%) 51.3% 49.9% 50.2%
ROIC (%) 18.6% 19.1% 14.0%
Capex 22.2 29.5 15.0 -32.5% -49.1%
Invested Capital 259.6 304.6 324.3 24.9% 6.5%
Rental net PP&E 207.6 239.9 254.7 22.7% 6.2%
Others 52.0 64.7 69.6 33.8% 7.5%
Depreciation 7.1 8.5 9.4 31.7% 10.0%
Table 9 Real Estate financial indicators
in R$ million
1Q13 4Q13 1Q14 (C)/(A) (C)/(B)
(A) (B) (C) % %
Net revenue
Rental 53.3 44.0 44.8 -15.9% 2.0%
Technical support services, sales and others 11.5 10.3 14.7 27.2% 43.0%
Total net revenue 64.9 54.2 59.5 -8.2% 9.7%
EBITDA 27.7 17.1 23.5 -15.4% 37.4%
EBITDA margin (%) 42.8% 31.5% 39.4%
ROIC (%) 12.8% 3.2% 6.6%
Capex 25.3 4.5 5.0 -80.5% 11.2%
Invested Capital 413.2 510.3 509.3 23.3% -0.2%
Rental net PP&E 307.3 344.9 332.0 8.0% -3.7%
Others 105.9 165.4 177.2 67.4% 7.2%
Depreciation 8.9 11.3 11.5 29.0% 1.4%







8 Mills 1Q14 results
Table 10 Rental financial indicators
in R$ million
1Q13 4Q13 1Q14 (C)/(A) (C)/(B)
(A) (B) (C) % %
Net revenue
Rental 67.3 86.1 88.1 30.9% 2.4%
Technical support services, sales and others 8.8 11.1 9.1 4.2% -17.6%
Total net revenue 76.1 97.2 97.3 27.8% 0.1%
EBITDA 43.6 56.0 58.4 34.1% 4.3%
EBITDA margin (%) 57.3% 57.7% 60.1%
ROIC (%) 19.1% 17.5% 17.1%
Capex 73.6 51.9 73.7 0.1% 42.1%
Invested Capital 455,0 612,3 648,7 42,6% 6,0%
Rental net PP&E 422.4 552,6 577,1 36,6% 4,4%
Others 32,6 59,6 71,7 120,0% 20,2%
Depreciation 12.6 17.7 18.7 48.8% 6.0%
Table 11ROIC Analysis
ROIC variation (qoq) Heavy Construction Real Estate Rental Mills
Operational income after taxes -414 bps 342 bps 61 bps -168 bps
Rental net PP&E -88 bps 8 bps -67 bps -22 bps
Others -30 bps -7 bps -34 bps -8 bps
Total -505 bps 343 bps -41 bps -194 bps
ROIC variation (yoy)


Operational income after taxes -107 bps -465 bps 536 bps -79 bps
Rental net PP&E -286 bps -72 bps -484 bps -216 bps
Others -118 bps -188 bps -151 bps -75 bps
Total -456 bps -618 bps -194 bps -336 bps

9 Mills 1Q14 results
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.
Quarterly ROIC: ((Quarterly Operational Income (30% Income Tax Rate) + remuneration from affiliates) / Average
Invested Capital of the last four months) * 4
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) 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.
(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 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; (c) cost of materials used in the execution of our services, such as individual safety equipment (EPIs), paint,
insulation material, wood, among others; (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.


10 Mills 1Q14 results
INCOME STATEMENT
in R$ million 1Q13 4Q13 1Q14
Net revenue from sales and services 188.4 210.1 207.8

Cost of products sold and services rendered (68.4) (85.7) (79.0)

Gross profit 120.0 124.4 128.8

Other operational revenues - 8.3 -
General and administrative expenses (52.9) (59.6) (61.9)

Operating profit 67.1 73.0 66.9

Financial expense (11.3) (17.0) (20.6)
Financial income 2.1 3.5 4.0
Financial result (9.2) (13.5) (16.5)

Profit before taxation 57.9 59.5 50.3

Income tax and social contribution expenses (20.2) (12.7) (16.5)

Results of continuing operations 37.6 46.8 33.9

Results of discontinued operations 1.6 (1.2) -

Net income 39.3 45.6 33.9

Number of shares at the end of the period (in thousands) 126,492 127,386 127,491

Net income (R$ per shares) 0.31 0.36 0.27


11 Mills 1Q14 results
BALANCE SHEET
in R$ million 1Q13 4Q13 1Q14
Assets


Current Assets

Cash and cash equivalents 24.5 25.8 8.5
Marketable securities 138.0 - -
Trade receivables 199.4 177.4 192.2
Inventories 29.9 36.3 36.6
Recoverable taxes 26.5 38.7 33.6
Advances to suppliers 5.5 0.5 0.2
Derivative financial instruments - 7.5 -
Assets available for sale - 26.8 27.4
Other current assets 7.2 6.5 9.8
Total Current Assets 431.1 319.5 308.2

Non-Current Assets

Trade receivables 2.1 1.4 1.4
Recoverable taxes 31.2 42.8 44.2
Deferred taxes - - 5.0
Deposits in court 11.8 10.1 10.4
Other trade receivables - 47.3 48.4

45.1 101.5 109.5

Investment 87.4 87.4 87.4
Property, plant and equipment 1,084.3 1,224.5 1,264.8
Intangible assets 57.5 68.4 73.8

1,229.2 1,380.3 1,426.1

Total Non-Current Assets 1,274.3 1,481.8 1,535.6

Total Assets 1,705.4 1,801.2 1,843.8



12 Mills 1Q14 results

in R$ million 1Q13 4Q13 1Q14
Liabilities


Current Liabilities

Suppliers 58.5 37.9 55.4
Borrowings and financings 38.5 12.8 49.1
Debentures 17.8 112.5 120.2
Salaries and payroll charges 33.3 19.2 23.6
Income tax and social contribution 5.8 - 6.2
Tax refinancing program (REFIS) 0.9 1.0 1.0
Taxes payable 7.7 7.1 4.6
Profit sharing payable 4.1 18.7 0.6
Dividends and interest on equity payable 36.2 41.0 41.0
Derivative financial instruments 1.6 - 3.3
Other current liabilities 8.8 4.9 3.5
Total Current Liabilities 213.1 255.0 308.5

Non-Current Liabilities

Borrowings and financings 30.5 58.7 17.2
Derivative financial instruments - 0.3 -
Debentures 537.7 448.2 448.4
Provision for tax, civil and labor risks 10.3 10.6 11.4
Deferred taxes 1.8 2.5 -
Tax refinancing program (REFIS) 9.7 9.4 9.4
Other Liabilities 0.3 - 0.1
Total Non-Current Liabilities 590.4 529.7 486.5

Total Liabilities 803.5 784.7 795.0

Stockholders' Equity

Capital 539.5 553.2 554.9
Earnings reserves 321.4 447.9 447.9
Capital reserves 2.2 10.2 12.4
Valuation adjustments to equity (0.8) 5.2 (0.2)
Retained earnings 39.6 - 33.9
Total Stockholders' Equity 901.9 1,016.5 1,048.8

Total Liabilities and Stockholders' Equity 1,705.4 1,801.2 1,843.8


13 Mills 1Q14 results
CASH FLOW
in R$ million 1Q13 4Q13 1Q14
Cash flow from operating activities


Net income before taxation 60,4 57,9 50,3

Adjustments

Depreciation and amortization 31,3 37,7 39,6
Provision for tax, civil and labor risks 0,5 0,1 0,8
Accrued expenses on stock options 2,0 3,1 2,2
Profit sharing payable 4,0 3,7 0,5
Gain on sale of property, plant and equipment and intangible assets (10,2) (8,5) (10,1)
Interest, monetary and exchange rate variation on loans, contingencies and deposits in court 12,6 15,9 17,2
Allowance for doubtful debts 5,0 4,3 6,5
Others - 1,3 -
Capital gain on disposal of investment - (8,3) -
Imposto de renda e contribuio social diferidos 0,0 0,0 0,0

45,3 49,2 56,7

Changes in assets and liabilities

Trade receivables (9,1) (13,3) (21,4)
Inventories (3,0) (5,3) (0,3)
Recoverable taxes 14,9 (0,0) 5,9
Deposits in court 0,0 (0,4) 0,1
Other assets 0,4 2,8 (2,9)
Suppliers 2,4 (1,1) (1,8)
Salaries and payroll charges 5,7 (6,6) 4,4
Taxes payable (10,9) 0,1 (0,0)
Other liabilities 1,6 2,5 (1,3)

2,1 (21,4) (17,3)

Cash from operations 107,7 85,7 89,7
Lawsuits settled (0,1) - -
Interest paid (7,9) (13,7) (9,7)
Income tax and social contribution paid (8,9) (29,3) (7,1)
Profit sharing paid (20,0) (0,0) (18,6)

Net cash generated by operating activities 70,8 42,7 54,2

Cash flow from investment activities

Marketable securities 21,6 - -
Purchases of property, plant and equipment and intangible assets (119,5) (118,7) (82,9)
Proceeds from sale of property, plant and equipment and intangible assets 8,3 20,4 15,3
Net cash generated by (used in) investing activities (89,7) (98,3) (67,7)

Cash flow from financing activities

Capital contributions 1,9 1,3 1,6
Dividends and interest on capital invested paid - (2,6) (2,5)
Repayment of borrowings (3,7) (3,1) (3,0)
Borrowings raised 1,0 40,0 -

Net cash generated by (used in) financing activities (0,9) 35,6 (3,9)

Increase (decrease) in cash and cash equivalents (19,7) (19,9) (17,3)

Cash and cash equivalents at the beginning of the period 44,2 45,7 25,8

Cash and cash equivalents at the end of the period 24,5 25,8 8,5


14 Mills 1Q14 results

















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).