International Conference Call MILLS SERVIOS ESPECIALIZADOS DE ENGENHARIA NO BRASIL 2nd Quarter 2012 Earnings Results August 9, 2012

2 11h (Braslia) / 10h (New York) Operator: Good morning. Welcome to MILLS 2Q12 Earnings Conference Call. At this moment all participants will be in listen-only mode during the Companys presentation and later on we will have a Q&A session when further instructions will be given for you to participate. Should you need assistance during the call please press star zero to reach the operator. This call has simultaneous interpretation into English and questions may be asked normally by participants collected from abroad. You may also ask questions over the Internet on the webcast platform. I would like to remind you that this conference is being recorded. The audio will be available on the Companys website in up to 24 hours. In case you do not have a copy of MILLS release which was published on Wednesday, August 8, you may obtain it at the Companys website: [Link]/ir. This conference together with the slide presentation is being simultaneously transmitted on the Internet also through [Link]/ir or still at [Link]/mills/[Link] for Portuguese and [Link]/mills/[Link] for English. Before proceeding I would like to mention that forward-looking statements that might be made during this call related to the Companys business outlook as well as projections and operating and financial targets relating to its growth potential are mere assumptions that are based on the Companys management expectations regarding MILLS future. These expectations depend on the performance of the sector, the general performance of the country and the conditions of both the domestic and the international market and therefore they are subject to changes. Today with us we have Mr. Ramon Vazquez, CEO; Mr. Frederico Neves, CFO and Mrs. Alessandra Gadelha, IRO. Now I would like to give the floor over to Mr. Vazquez. Mr. Vazquez you may proceed. Mr. Ramon Vazquez: Good morning ladies and gentlemen and thank you very much for participating in this call about MILLS 2Q12 earnings. On slide number 4 we have the highlights for the quarter: we posted record net revenues amounting to R$ 211.1 million, a 28.7% growth year-on-year; Ebitda amounted to R$ 84.4 million and we reached an Ebitda margin of 40%; we also had a record net income of R$ 39.2 million going up by 73.5% year-on-year, positively impacted by the payment of interest on equity in this quarter. ROIC was 13.6%, also growing vis--vis the same period of last year, but dropping on a quarterly basis. We received new equipment at the end of the quarter but not in time to rent them out, which had the negative impact on the ROIC.

On slide number 5 we have the revenue breakdown for the quarter. The Jahu Division posted the highest net revenue representing 28% of total revenues, and the Rental and Industrial Services Divisions accounted for 26% and Construction 20%. Regarding the type of service 70% of MILLS revenues in the quarter came from equipment rental; 21% technical services and 6% sales. Slide 6. Here you have the results of the construction division. Revenue reached R$ 41.9 million being the highest value in the last seven quarters. We are working with normal level utilization rates due to our strategy to prioritize profitability. Better prices and the better equipment mix allowed us to grow 11.6% in the rental revenue on a quarterly basis. Quarter-on-quarter Ebitda was R$ 21.2 million; Ebitda margin 50.6% and ROIC 17.8%, all growing quarter-on-quarter. On slide 7 we show you the revenue breakdown for the Construction Division per quarter and per sector. Infrastructure works represented 32% of revenues; industry 24% and works related to the World Cup and the Olympics 20%. We would like to remind you that sports events include not only the stadia but also the urban mobility and airport projects. In 2Q we started to participate in the Paranaenses Arena Project in Curitiba and now we are present in 11 of the 12 projects of stadia that will be hosting the 2014 World Cup. On slide 8 we rank some important contracts per phase in the evolution of the monthly revenues in construction, in heavy construction. This quarter we signed new, important contracts for the Belo Monte and Teles Pires hydropower plant and the Manaus airport besides new stages of the Comperj refinery, the Subway line 4 and the Transcarioca Expressway in Rio and the Subway line 5, Monorail line Gold and the beltway eastern section in So Paulo. Slide 9 we show productivity gains in the Fonte Nova Arena in Salvador with the use of aluminum shoring. The photos show you two stretches that are similar: in one stretch there was shoring in steel with MILLSTOUR and the other one aluminum shoring with ALUMILLS. The ALUMILLS solution is 58% lighter than steel making it possible to increase productivity and construction. We are investing in new aluminum systems such as ALUMILLS because we have verified that for our clients there is productivity gain in many works with a reduction from 50% to 65% in the labor costs for the erection of the shoring. For MILLS aluminum equipment brings about a higher financial return due to the rental price, the longer useful life and a higher residual value because it is recyclable. Slide 10, Jahu Division totaled record revenue of R$ 58.9 million with a 69.7% growth year-on-year; Ebitda was R$ 27.2 million, a new quarterly record and Ebitda, Ebitda margin of 46.1%. Slide 11 we show you the revenue breakdown for the Jahu Division. Residential projects represented 57% of the rental revenues in this quarter, being 12% from listed

real estate companies, and 45% from other companies; commercial projects represented 34% and industrial 3%. The participation of listed companies in the Divisions revenue dropped by 7 p.p. quarter-on-quarter, and as we said in the last quarterly call the residential construction market is very fragmented and the demand is still very strong. We understand that the non-listed companies will continue to make new launches in order to cater to them whereas the listed companies are making adjustments in order to improve the execution of their projects already under way. Slides 12 and 13 we show some contracts that we signed for the commercial construction market, which is very active. Besides commercial buildings that can be seen on slide number 12 we recently signed 9 new shopping malls contracts and some are being shown here on slide 13 such as the BarraShoppingSul in Porto Alegre, Metropolitano mall in the Rio de Janeiro and Rio Poty in Teresina. Slide 14, Industrial Services Divisions results R$ 54.8 million revenues, a 7.7% growth quarter-on-quarter; Ebitda reached R$ 4.7 million; Ebitda margin of 8.5%; ROIC 3.9%, all negatively impacted by strikes and by the abnormal rainy season in Bahia and by the increase in labor claims provision, totaling a negative impact on the operating result for the quarter of R$ 1.4 million. Net of these events Ebitda would have been R$ 6.1 million, in line with the previous quarter and Ebitda margin would have been 11%. This quarters maintenance services contributed 69% of total revenues and new plants with 31% as you can see on slide number 15. The oil and gas industry accounted for 35% of revenues in the quarter; petrochemical 33%; pulp and paper 7%; steel and mining 2%. Slide 16 shows the results of the Rental Division, which were R$ 55.4 million revenues growing by 34.6% vis--vis the same period in the previous year; Ebitda R$ 31.4 million and Ebitda margin 56.6%. The drop of the Ebitda quarter-on-quarter was driven mainly because of the higher maintenance costs for the telehandlers with the expectation of a demand pickup for 2H influenced by the Minha Casa Minha Vida Program. ROIC was 16.3% impacted by equipment received at the end of the quarter that were included in the asset base, however they have not started to generate results as yet. This quarter the new branches contributed 63% of revenues according to the chart that you can see on slide 17. The increase in our investment budget in 2012 for the rental division from R$ 53 million to R$ 136 million will allow us to continue our geographic expansion as of 2H this year. And lastly we show you the progress of our growth plan. As you can see on slide 19 investments in organic growth amounted to R$ 83.5 million in the quarter. In order for us to continue to tap into the attractive opportunities of our market keeping our leverage target at 1x, we boosted our investment budget for 2012 from R$ 127 million to R$ 256 million. In 1H the investments amounted to R$ 141.9 million, equivalent to 55% of the revised Capex budget.

Thank you very much and we are available now to answer any questions that you might have. Q&A Session Operator: Ladies and gentlemen now we would like to start our question-and-answer session and in order to ask a question please press star one. In order to remove your question from the queue please press star two. Our first question comes from Mr. Eduardo Couto from Goldman Sachs. Mr. Eduardo Couto: Good morning Ramon, good morning Alessandra, Frederico. I have a few questions, the first one has to do with heavy construction and residential and commercial construction. They are still very strong and you said that you have just signed a reasonable number of new contracts in 2Q and I would like to know your expectation regarding the next few quarters. Can you give us a visibility for 2013 about the growth in heavy construction and in the residential and commercial construction as well? Do you expect to continue to grow your Ebitda and revenues in the next few quarters? Because mainly in heavy construction I believe you are still behind what could be imagined in the project pipeline that you have, so maybe you could add something to that. And also regarding heavy construction slide number 7 has the revenue breakdown by infrastructure and the World Cup and the Olympics, etc. Do you believe that the participation of the World Cup and the Olympics, which is 20% today, will be going up? How do you see this in 12-month time? Mr. Vazquez: First regarding our expectation about the growth of the heavy construction market, 60 days ago we made the decision to increase our investments, our Capex for this year in all our divisions, and if you pay attention you will see that there is an increase in heavy construction of 136% vis--vis the original budget by the end of last year for our Capex in this area. I believe this is one of the most important signs that show that we are rather comfortable regarding the growth outlook for this Division. And we believe that not only in 2H we will continue to achieve a good result in this Division, but also for 2013 we forecast an outstanding year for heavy construction stemming from the projects that are already under way, the ones we have just signed for and so this means that overall our expectations for 2013 are excellent. Regarding the Jahu Division, which is our real estate division, also for the real estate division we increased our Capex by 57%, in line with our expectations that this Division will continue to grow over the next few quarters and we are also making a very interesting move, which is increase our exposure to the commercial construction segment.

Currently we have about 35% of our revenues from the Jahu Division coming from the commercial construction segment and we believe that this percentage will be increasing by 2013, which means that both in commercial as well as in residential our expectations are very bullish for 2H and for next year too. Regarding the breakdown of revenues for construction we have 20% coming from the World Cup and the Olympics as you said yourself, and we believe that this percentage will remain for the next few quarters. Mr. Couto: Very clear Ramon, thank you very much. Just another point, another question having to do with Industrial Services which was, I would say, the negative highlight for the quarter. You talked about the strike and some non recurrent impacts and that net of this impacts the margin would have been slightly higher than 10% or 11%; but it is still lower than what I believe the Company considers. And mainly when you restructured the company when you started to focus more on oil and gas. So I would like to know what is going on and if you see something different from what was expected, if oil and gas are lagging behind may be vis--vis your expectations, what you had estimated. I understand that the factors that you mentioned are nonrecurrent and even net of these events the margin would have been lower, that is to say 11%. Mr. Vazquez: The Industrial Services Division has been going through a restructuring process and a change of focus. We started this move in the last quarter of 2011 practically and what we see is that this is not something that can be achieved overnight and we will not see the results in the short run. We do believe that we are focusing on two lines: the first line is to increase the services that we offer to our clients and for our offshore market. The company works in the offshore market with access, the erection and the removal of large scaffolding. This is a segment in which we are growing our presence and we have been doing some projects especially regarding maintenance services and offshore rigs, platforms, and our expectation for 2H is to increase this kind of participation. And the other aspect is that we try to increase our presence by offering other services that we did not offer before for the offshore segment and this is a much slower process. First of all because we are trying to introduce new services to this market. Last year we signed a partnership with a Scottish company for a certain type of service and we also signed at the beginning of this year a partnership with a Norwegian company also to offer another kind of service that has to do with anti-fire protection. However, this takes some time and until the moment you can really bring to the clients the services that you are ready to offer and until the moment that we win the contracts this is a longer process. What I can tell you is that during this year - and this is not something new because we have been repeating this consistently - we do not expect substantially better results than the ones we have been achieving in this division in the short run. We believe that as of

2013, being successful in the introduction of these new services, this Division should be delivering much better margins than the ones that it is delivering today. However, during this year, 2012, we do not believe that you could expect some major surprises regarding this Division and you know that our exposure to the offshore market takes some time, that is to say until we get the clients to sign for these services. We are implementing the services; however this takes some time until we can, this is basically the point. Mr. Couto: But what about the non-recurrent expenses that you had in 2Q? Do you expect anything like that for 3Q and 4Q or do you believe that the margin could go back to 11%, as you mentioned that would be net of the strikes and other problems? Mr. Vazquez: Well, there are two issues involved: the first one is isolated, that is to say there was an extremely strong strike in Bahia, over 15 days stopped, and there was a totally unseasonable rain and in this region when it rains a lot there are many kinds of jobs that cannot be carried out, such as industrial paiting. And another negative impact was the provision for labor claims. At every three months we review this with our lawyers and we check the evolution of the claims, the labor claims, and so we saw this impact in this quarter and I cannot tell you whether this will be repeated in the next quarter; normally when you look at our results you do not really see a big impact of this kind of expense, of this kind of provision. But this can happen in one quarter or another, but this is not a trend. On a quarterly basis we reevaluate and we revisit this with our lawyers, and when it goes from possible to probable this is when you have this kind of impact on our results. Mr. Couto: Thank you very much, very clear explanation. Operator: I would like to remind you that in order to ask the question you should press star one. Our next question comes from Mr. Walter Mendes from Cult Invest. Mr. Walter Mendes: Good morning. I was willing to ask a question but it has already been answered and so I apologize, thank you very much. Interpreter: The interpreter is waiting for the sound to come back. Mrs. XXX: We have a question from the webcast platform from Lus from EMIT: will MILLS be focusing more on aerial platforms or on telehandlers in the new Capex and what are the reasons? Mr. Vazquez: We should be focusing more on aerial platforms. We understand that the demand is growing quite a lot for the aerial platform market and due to the major investments that we have already made in telehandlers, telescopic handlers.

And in the last quarter we saw a slowdown in the Minha Casa Minha Vida launches. We saw that telehandlers were becoming more idle because of the slowdown in the Minha Casa Minha Vida and for this reason our investments will be more focused on aerial platforms than on telehandlers. This is the reason why. Operator: Once again in order to ask a question please press star one. As there are no more questions I would like to give the floor back to Mr. Vazquez for his closing remarks. Mr. Vazquez you may proceed. Mr. Vazquez: Once again I would like to thank you very much for participating in this call about MILLS 2Q12 results and our IR team will remain available to you at all times. Thank you very much. Operator: MILLS conference call is closed. We thank you very much for your participation and wish you all a very good day. Thank you very much.