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Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
Emb day long term strategy
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Emb day long term strategy

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  • 1. EMBRAER LONG TERM STRATEGY Job Position October 31, 2013
  • 2. Forward-Looking Statements This presentation may contain forward-looking statements, projections and estimates regarding circumstances or events yet to take place, including, but not limited to, those statements relating to guidance. These forward-looking statements are based largely on current expectations, forecasts of future events and industry and financial trends that affect Embraer’s businesses. These statements are subject to risks, uncertainties and assumptions that include, among others: general economic, political and trade conditions, both in Brazil and in those markets where Embraer does business; management’s expectations and estimates concerning the company’s future financial performance; plans and objectives of our management; financing plans and programs, and the effects of competition; industry trends and growth opportunities; inflation and fluctuations in exchange rates; the company’s investment plans; Embraer’s operating efficiencies and synergies and its capacity to develop and deliver products on the dates previously agreed upon; results of operation; business strategies; benefits of new technologies and existing and future governmental regulations. To obtain further information on factors that may lead to results different from those forecast by Embraer, please consult the reports Embraer files with the U.S. Securities and Exchange Commission (SEC) and the Brazilian Comissão de Valores Mobiliários (CVM) and in particular the factors discussed under “Forward-Looking Statements” and “Risk Factors” in Embraer’s annual report on Form 20−F. The words “believe”, “may”, “will”, “estimate”, “intend”, “continue”, “anticipate”, “expect” and other similar terms are intended to identify forward-looking statements. Embraer does not undertake any obligation to publish updates or to revise any forwardlooking statements due to new information, future events or any other factors. In view of the inherent risks and uncertainties, such estimates, events and circumstances may not occur. The actual results and performance of Embraer could therefore differ substantially from those anticipated in Embraer's forward-looking statements. 2
  • 3. Reflections on Embraer’s Trajectory Pre-financial crisis • Concentration in the commercial airline business / single business, single product • EMB-120 and ERJ-145 highly concentrated in regional airline customers in the USA and Europe • Cyclical lay-offs and hiring following airline industry cycles • Low cost of labor in Brazil • Operational inefficiencies 3
  • 4. Reflections on Embraer’s Trajectory Post-financial crisis - Long term strategy for value creation • Aggressive business diversification • Expansion to mainline carriers and leasing companies • Strong investments in the executive jets business • Acquisitions in Defense & Security business • High cost of labor in Brazil • Decentralization / globalization of operations • Investments in automation and productivity • Strong focus on operational excellence, people and customer support/services • Organizational stability / higher complexity • Balanced use of capital 4
  • 5. Balanced Use of Capital • Sound balance sheet / cash position – investment grade • Strong investment plan on new products and productivity • Regular payment of dividends + SOLID EXECUTION / GROWTH OPPORTUNITIES • Enhancement of Competitive Position • Long Term Creation of Shareholder Value 5
  • 6. Embraer’s Dividend History – 2009-2013 116% 28% 2.88% 53% 36% 3.23% 26% 3.09% 1.44% 2009 2010 Dividend Yield 6 2011 1.34% 2012 YTD2013 Pay Out
  • 7. Long Term Outlook Consolidation of three business areas • E-Jets E1 – short to mid term high capture of market share with regional airlines and expansion of mainline customer base and leasing companies • E-Jets E2 – long term consolidation of leadership with regionals plus expansion at mainline level and lessors, leveraging the customer base and a/c commonality 7
  • 8. Long Term Outlook Consolidation of three business areas • Continuous market share increase with introduction of new products (Legacy 500 / 450) and product enhancements • Mid to long term expected recovery in the executive jet market • Focus on execution and operational excellence driving better margins and return on capital 8
  • 9. Long Term Outlook Consolidation of three business areas • Multiple important developments (KC-390, Sisfron, Satellite, modernization programs, UAV’s) • Continuous analysis of (surgical) acquisitions • Mid to long term increase of product portfolio, with serialization of KC-390 – step function in revenues 9
  • 10. Long Term Outlook Development of a fourth business area • Start-up aiming at opportunities of high level systems integration for non-A&D value chains • Initial focus on leveraging opportunities in Brazil for oil & gas and mining • Benefitting from and reinforcing Embraer’s core competencies 10
  • 11. Long Term Outlook Organizational development P3E – Embraer’s Excellence Program • Operational efficiency • People • Leadership • Corporate Culture INNOVA – Embraer’s Innovation Program • Development of a culture of innovation • Processes to capture knowledge and stimulate innovation • Dedication of resources for innovative projects 11
  • 12. Long Term Outlook Organizational development Leading Edge Corporate Governance • Seasoned executive team • Senior Board of Directors (primarily independent) • Solid compliance structure and processes • Focus on Sustainability: DJSI, Best Company to work for in Brazil and Florida • High standard listings: BM&FBovespa Novo Mercado and NYSE ADR Level III 12
  • 13. Long Term Outlook Organizational development Global Enterprise • Multiple Stakeholders • Broad access to talent and skilled labor • Increasing decentralization of industrial footprint – high levels of automation and productivity • Melbourne – pivotal role in executive jets • Portugal – center for large metallic and composite structures • Engineering and research operations abroad 13
  • 14. Investor Relations Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com

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