Conference Call 2Q13

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Conference Call 2Q13

  1. 1. Job Position EARNINGS RESULTS 2nd QUARTER 2013 July 26, 2013
  2. 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 forward- looking 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. 3. • Embraer launches the E-Jets E2 Program during the Paris Air Show in June. Embraer awards and recognitions: • “Company of the Year” by the Brazilian magazine Exame; • “One of the best companies to work for in Latin America” by Great Place to Work; • “National Innovation Award” by the Brazilian National Industry Conference. 3 Corporate Highlights • Standard & Poor’s upgraded Embraer’s credit rating to “BBB” from “BBB-”.
  4. 4. • Delivery of 22 E-Jets in 2Q13 reaching 947 total deliveries since EIS. 4 Highlights • Air Costa (India) and JAL (Japan) disclosed their firm orders for five E-Jets . • Embraer signed a firm order for seven E190s with Venezuela’s Conviasa. • SkyWest signed a firm order for 40 E175 jets plus 60 reconfirmable and another 100 options. • E-Jets E2 Program reached 100 firm orders plus 100 options from SkyWest, 50 firm orders plus 50 options from ILFC and LOIs for another 65 aircraft. • United Airlines ordered 30 E175 jets with options for an additional 40.
  5. 5. • Delivery of the 400th Phenom jet and first Phenom 300 sold to China. • Embraer’s Melbourne, FL facility received FAA certification to assemble the Phenom 300. • Delivery of 29 executive jets in 2Q13 (23 light jets and 6 large jets). • NetJets received its first Phenom 300, entitled “Signature SeriesTM”, of a contract that may reach up to 125 aircraft. 5 Highlights • Lineage 1000 reached 10,000 flown hours. • Legacy 500 completed 45% of its test campaign with more than 450 flight hours with 3 prototypes. • Phenom 100 & 300 awarded as the “Best of the Best” by Robb Report magazine for the third consecutive year.
  6. 6. • Embraer and Boeing signed a partnership to market and sell the KC-390 in certain markets. 6 Highlights • Brazilian Air Force signed a contract for logistical support and services for 92 A-29 Super Tucano aircraft. • Visiona advanced in the Geostationary Defense and Strategic Communication Satellite program with the short list of the satellite supplier. • Savis completed the selection of the main suppliers for Sisfron (Brazilian Integrated Border Monitoring System).
  7. 7. 3 1611 8 23 2 4 6 17 37 2Q12 3Q12 4Q12 1Q13 2Q13 35 27 23 17 22 2Q12 3Q12 4Q12 1Q13 2Q13 Aircraft Deliveries Large Jets - Legacy & Lineage Light Jets - Phenom Commercial Jets Executive Jets 7 2013 deliveries estimates • 90 - 95 commercial jets • 25 - 30 executive large jets • 80 - 90 executive light jets
  8. 8. 12.9 12.4 12.5 13.3 17.1 2Q12 3Q12 4Q12 1Q13 2Q13 US$ Billion 8 Firm Order Backlog
  9. 9. 309264 257 297 252 2Q12 3Q12 4Q12 1Q13 2Q13 860 1,176 956 864 640 2Q12 3Q12 4Q12 1Q13 2Q13 370 261 167 712 175 2Q12 3Q12 4Q12 1Q13 2Q13 1,5571,715 1,402 1,898 1,086 2Q12 3Q12 4Q12 1Q13 2Q13 Net Revenues by Segment – 2013 Outlook 9 Commercial Aviation: US$ 3.20 – 3.35 Billion Executive Aviation: US$ 1.40 – 1.60 Billion Defense & Security: US$ 1.25 – 1.35 Billion EMBRAER: US$ 5.90 – 6.40 Billion 2013 YTD: 2,643 2013 YTD: 1,500 2013 YTD: 545 2013 YTD: 561
  10. 10. Net Revenues 10 2013 YTD: 2,643 2013 YTD: 5,397 US$ Million R$ Million 3,380 2,845 3,913 2,157 3,240 2Q12 3Q12 4Q12 1Q13 2Q13 1,715 1,402 1,898 1,086 1,557 2Q12 3Q12 4Q12 1Q13 2Q13 2013 Outlook: US$ 5.9 – 6.4 Billion
  11. 11. 118 111 143 108 75 59 75 53 121 54 2Q12 3Q12 4Q12 1Q13 2Q13 233 224 295 215 147 120 154 106 250 111 2Q12 3Q12 4Q12 1Q13 2Q13 11 SG&A Expenses 344 449 170 218 161 193 321 380 Selling ExpensesG&A Expenses 175 361 US$ Million R$ Million 2013 YTD: 336 2013 YTD: 682
  12. 12. Income from Operations EBIT EBIT Margin 12 2013 YTD: 175 / 6.6% 2013 YTD: 365 / 6.8% US$ Million R$ Million EBIT: US$ 530 – 610 Million EBIT Margin: 9.0% – 9.5% 2013 Outlook: 205 469 79 390 285 11.5% 7.2% 12.0% 3.7% 8.8% 2Q12 3Q12 4Q12 1Q13 2Q13 101 228 40 197 135 11.5% 7.2% 12.0% 3.6% 8.7% 2Q12 3Q12 4Q12 1Q13 2Q13
  13. 13. EBITDA EBITDA EBITDA Margin 13 US$ Million R$ Million 2013 YTD: 304 / 11.5% 2013 YTD: 628 / 11.6% EBITDA: US$ 770 – 900 Million EBITDA Margin: 13.0% – 14.0% 2013 Outlook: 265 168 310 100 204 15.5% 12.0% 16.3% 9.2% 13.1% 2Q12 3Q12 4Q12 1Q13 2Q13 524 340 638 201 427 15.5% 12.0% 16.3% 9.3% 13.2% 2Q12 3Q12 4Q12 1Q13 2Q13
  14. 14. 5.9% 92 5.9% 192 Adjusted Net Income, excluding Deferred Income Taxes Net Margin Net Income Net Income 14 2013 YTD: 25 / 0.9% 2013 YTD: 52 / 1.0% US$ Million 124 133 254 62 (10) 3.7% 4.6% 6.5% 2.9% -0.3% 2Q12 3Q12 4Q12 1Q13 2Q13 55 65 123 30 (5) 3.2% 4.7% 6.5% 2.8% -0.3% 2Q12 3Q12 4Q12 1Q13 2Q13
  15. 15. 2,530 2,585 2,157 2,510 2,523 2Q12 3Q12 4Q12 1Q13 2Q13 Inventories 15 US$ Million
  16. 16. (50) (163) (50) 157 (30) 439 (83) 186 (75) (125)(55) (58) (75) (68) (60) 27 (138) 202 (201) 2 2Q12 3Q12 4Q12 1Q13 2Q13 Free Cash Flow 16 2013 YTD: (199)US$ Million * Net of Financial assets adjustment Net cash generated (used) by operating activities* 157 (30) 439 (83) 186 103 Additions to property, plant and equipment (75) (50) (163) (50) (125) (175) Additions to intangible assets (55) (58) (75) (68) (60) (127) Free Cash Flow 27 (138) 202 (201) 2 (199) 2Q13 YTD132Q12 3Q12 4Q12 1Q13
  17. 17. 127 118 100 300 180 52 RESEARCH DEVELOPMENT CAPEX 2013 Outlook: US$ 580 Million Investments 2013 Outlook2013 YTD US$ Million 17 2013 YTD: 297
  18. 18. Indebtedness Profile / Net Cash Long-term Short-term Loans Average Maturity (Years) Indebtedness Maturity Net Cash – US$ Million 18 US$ 2.22 BillionTotal Debt 2Q13 Total Cash 2Q13 US$ 2.28 Billion 84% 85% 22% 17% 78% 83% 94% 16% 15% 6% 6.1 6.0 5.8 5.1 5.4 2Q12 3Q12 4Q12 1Q13 2Q13 290 123 309 98 58 2Q12 3Q12 4Q12 1Q13 2Q13
  19. 19. Investor Relations Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com

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