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Embraer Conference Call 3Q11 Results

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Embraer Conference Call 3Q11 Results

  1. 1. THIRD QUARTER 2011 RESULTS November 4th, 2011
  2. 2. Forward Looking StatementThis presentation includes forward-looking statements or statements about events orcircumstances which have not occurred. We have based these forward-looking statementslargely on our current expectations and projections about future events and financial trendsaffecting our business and our future financial performance. These forward-lookingstatements are subject to risks, uncertainties and assumptions, including, among other things:general economic, political and business conditions, both in Brazil and in our market. Thewords “believes,” “may,” “will,” “estimates,” “continues,” “anticipates,” “intends,” “expects” andsimilar words are intended to identify forward-looking statements. We undertake noobligations to update publicly or revise any forward-looking statements because of newinformation, future events or other factors. In light of these risks and uncertainties, theforward-looking events and circumstances discussed in this presentation might not occur. Ouractual results could differ substantially from those anticipated in our forward-lookingstatements. 2
  3. 3. Recent Highlights• 3Q11: delivery of 28 jets and sale of 17 E-Jets, reaching 1,018 firm orders.• Six more orders to GECAS in early October, to be included in the 4Q11 firm order backlog.• Delivery of the 800th aircraft (EMBRAER 190) to China Southern Airlines. 3
  4. 4. Recent Highlights• 3Q11: delivery of 18 jets (17 light jets and one large jet). • NBAA: firm order for 13 Legacy 650 jets from China’s Minsheng Financial Leasing Co. 4
  5. 5. Recent Highlights • Creation of Harpia Sistemas S.A., to develop national Unmanned Aerial Systems (UAS). 5
  6. 6. Recent Highlights• Embraer named leader of Dow Jones Sustainability Index (DJSI) in Aerospace and Defense sector. • EMBRAER and GE successfully conclude Bio-Jet fuel tests. 6
  7. 7. Revenue by Segment Revenue1.04 1.97 1.05 1.36 1.36 3.78 US$ Billion 8%14% 17% 14% 14% 15% 13% 12%7% 11% 10% 11% 12% 24% 50%19% 9% 10% 16% 12% 32% 13% Services Breakdown 61% 67% 62%60% 59% 48%3Q10 4Q10 1Q11 2Q11 3Q11 YTD Commercial aviation Executive aviation Defense and security Aviation services and others 7
  8. 8. Aircraft Deliveries 48 30 28 22 25 20 20 20 17 13 2 2 6 3 1 3Q10 4Q10 1Q11 2Q11 3Q11 Commercial Jets Executive Large Jets Executive Light Jets Legacy e Lineage Phenom 8
  9. 9. Firm Order BacklogUS$ Billion 20.9 18.8 16.6 15.6 16.0 14.8 2006 2007 2008 2009 2010 3Q2011 Firm Order Backlog 9
  10. 10. Revenues and Gross Margin IFRS - US$ Million IFRS - R$ Million 20.5% 24.3% 20.6% 24.3% 22.4% 16.8% 21.2% 16.8% 21.2% 22.4% 1,970 3,342 1,359 1,364 2,169 2,2661,044 1,056 1,820 1,7573Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 Revenues Gross Margin Revenues: US$ 3.78 Billion YTD Gross Margin: 22.5% 10
  11. 11. SG&A Expenses IFRS - US$ Million IFRS - R$ Million 282 277 280 173 172 167 247 252 151 103142 103 113 61 64 69 92 95 5753 179 174 167 106 109 103 155 15789 943Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 G&A Expenses Selling Expenses 11
  12. 12. Income from Operations IFRS - US$ Million IFRS - R$ Million 9.1% 9.4% 6.7% 8.9% 6.7% 8.9% 7.8% 7.8%6.4% 6.4% 132 124 225 212 106 94 157 16966 1163Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 EBIT EBIT Margin EBIT: US$ 324 MillionYTD EBIT Margin: 8.6% 12
  13. 13. EBITDA IFRS - US$ Million IFRS - R$ Million 14.8% 14.8% 13.7% 13.8%12.5% 10.0% 12.5% 10.0% 11.3% 11.5% 197 188 335 311 156 153 260 250 131 227 3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 EBITDA EBITDA Margin EBITDA: US$ 498 Million YTD EBITDA Margin: 13.2% 13
  14. 14. Net Income IFRS - US$ Million IFRS - R$ Million 12.1% 10.0% 9.9% 12.1% 7.1% 6.2% 6.2% 7.1% 0.1% 0.0% 220 208 126 123 174 105 96 154 2 0 3Q10 4Q10 1Q11 2Q11 3Q11* 3Q10 4Q10 1Q11 2Q11 3Q11* Net Income Net Margin* 3Q11 Adjusted net income excluding def erred income taxes was US$ 125.7 million and R$ 213.0 million. 14
  15. 15. Inventories / Free Cash Flow Inventories Free Cash Flow 193 2,8722,708 2,697 2,561 2,198 (38) (66) (112) (126)3Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 15
  16. 16. Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash6% 5% 10% 13% 26%6.1 6.3 5.7 5.0 4.5 95% 90% 87% 69294% 74% 618 505 406 1933Q10 4Q10 1Q11 2Q11 3Q11 3Q10 4Q10 1Q11 2Q11 3Q11 Long-term Short-term Loans Average Maturity (Years) Total Debt 3Q11: US$ 1.8 Billion Total Cash 3Q11: US$ 2.0 Billion 16
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