This document contains forward-looking statements about Embraer's future financial performance that are subject to risks and uncertainties. The statements are based on Embraer's current expectations, projections, and financial trends. However, Embraer cannot guarantee that the forward-looking events will occur as expected given risks and uncertainties. Embraer's actual results could differ from what is anticipated. The document also provides Embraer's recent highlights, 3Q10 results, delivery numbers, order backlog, financial metrics, 2010 guidance, and outlook.
3. 3
This presentation includes forward-looking statements or statements about events or
circumstances which have not occurred. We have based these forward-looking statements
largely on our current expectations and projections about future events and financial trends
affecting our business and our future financial performance. These forward-looking statements
are subject to risks, uncertainties and assumptions, including, among other things: general
economic, political and business conditions, both in Brazil and in our market. The words
“believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,” “expects” and similar
words are intended to identify forward-looking statements. We undertake no obligations to
update publicly or revise any forward-looking statements because of new information, future
events or other factors. In light of these risks and uncertainties, the forward-looking events
and circumstances discussed in this presentation might not occur. Our actual results could
differ substantially from those anticipated in our forward-looking statements.
Forward Looking StatementForward Looking Statement
4. 4
Legacy 650 certified by ANAC and EASA. Deliveries in 4Q10.Legacy 650 certified by ANAC and EASA. Deliveries in 4Q10.
Argentina’s Austral received its first EMBRAER 190.Argentina’s Austral received its first EMBRAER 190.
Sale of 37 E-Jets at Farnbourogh.Sale of 37 E-Jets at Farnbourogh.
Sale of 10 + 5 EMBRAER 190 jets to Air Lease Corp.Sale of 10 + 5 EMBRAER 190 jets to Air Lease Corp.
NetJets buys 50 Phenom 300, plus 75 options at NBAA.NetJets buys 50 Phenom 300, plus 75 options at NBAA.
Recent HighlightsRecent Highlights
Brazil, Chile, Colombia, Portugal and Czech Republic signed LOI for
up to 54 KC-390 aircraft.
Brazil, Chile, Colombia, Portugal and Czech Republic signed LOI for
up to 54 KC-390 aircraft.
Embraer expands its Customer Support in China.Embraer expands its Customer Support in China.
5. 5
Stable net cash position of US$ 623.8 million.Stable net cash position of US$ 623.8 million.
EBIT of US$ 63 million and EBIT margin of 6.0%. YTD EBIT margin of 7.3%.EBIT of US$ 63 million and EBIT margin of 6.0%. YTD EBIT margin of 7.3%.
Net income totaled US$ 98.5 million. Earnings per ADS of US$ 0.5443.Net income totaled US$ 98.5 million. Earnings per ADS of US$ 0.5443.
Net revenues of US$ 1.04 billion and gross margin of 22.1%.Net revenues of US$ 1.04 billion and gross margin of 22.1%.
Firm order backlog remained stable at US$ 15.3 billion.Firm order backlog remained stable at US$ 15.3 billion.
3Q10 Results3Q10 Results
18. 18
7.25%7.25%
Current Guidance - 2Q10Current Guidance - 2Q10 New GuidanceNew Guidance
US$ 380 millionUS$ 380 million
~12%~12%
2010 Guidance2010 Guidance
US$ 340 millionUS$ 340 million
Net RevenuesNet Revenues
EBITEBIT
EBIT marginEBIT margin
US$ 5.25 billionUS$ 5.25 billion
6.50%6.50%
19. 19
R&DR&D
PP&EPP&E
US$ 160 millionUS$ 160 million
US$ 140 millionUS$ 140 million
US$ 420 millionUS$ 420 millionEBITDAEBITDA
EBITDA marginEBITDA margin 8.0%8.0%
US$ 100 millionUS$ 100 million
2010 Outlook2010 Outlook
~30%~30%
8.75%8.75%
US$ 460 millionUS$ 460 million
~10%~10%
Current OutlookCurrent Outlook New OutlookNew Outlook
The remaining difference between FCF in IFRS and FCF in US GAAP can be mainly explained by a portion of the Temporary Cash Investments which are included in Unrealized/realized losses (gains) on trading securities, net, under US GAAP measures.