Inst Presentation IR - February 2013

1,187 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,187
On SlideShare
0
From Embeds
0
Number of Embeds
488
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Inst Presentation IR - February 2013

  1. 1. EMBRAER INVESTOR RELATIONS Phone: +55 12 3927 4404 investor.relations@embraer.com.br www.embraer.com Job PositionFeb/13
  2. 2. Corporate and Business Strategy • Organic growth. • Margins enhancement through the P3E. • Business and revenues diversification. • Product strategy. • Diversification and expansion of customer base. • Excellence in Customer Experience (ECE). • Market share growth. • Margins improvement. • Product strategy and customer support focus. • Establish Embraer as the defense house of Brazil. • Organic growth and acquisitions.
  3. 3. Aircraft Deliveries Commercial Jets Executive Jets 98 126 165133 77 125 83 101 105 106 2 36 37 21 19 16 222007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 Light Jets - Phenom Large Jets - Legacy & Lineage
  4. 4. Net Revenues US$ Million 6,335 5,498 5,364 5,803 5,245 4,278 2007 2008 2009 2010 2011 9M2012 2012 Outlook: US$ 5.8 – 6.2 billion2007-2008: USGAAP2009-2012: IFRS
  5. 5. Revenues by Segment – 2012 Outlook Embraer: US$ 5.8 – 6.2 Billion Commercial Aviation: US$ 3.70 – 3.85 Billion 2,025 1,176 1,078 996 956 1,717 1,405 760 1,364 1,156 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Executive Aviation: US$ 1.10 – 1.30 Billion Defense and Security: US$ 900 – 950 Million 603 293 266 259 232 189 261 149 152 167 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12
  6. 6. Revenues Breakdown Revenues by Segment Revenues by RegionRevenues RevenuesUS$ Billion 5.49 5.36 5.80 US$ Billion 5.49 5.36 5.80 2% 1% 2% 4% 12% 6% 4% 15% 15% 21% 22% 23% 17% 23% 19% 11% 13% 17% 7% 15% 11% 69% 33% 61% 64% 25% 33% 22% 20% 13% 2009 2010 2011 2009 2010 2011 Commercial aviation Defense and security North America Europe Latin America Executive aviation Others Brazil Asia Pacific Others
  7. 7. Firm Order Backlog US$ Billion 15.4 14.7 12.9 12.4 12.5 4Q11 1Q12 2Q12 3Q12 4Q12
  8. 8. Embraer Commercial Aviation OVER 80 AIRLINES IN MORE THAN 50 COUNTRIES
  9. 9. Product Portfolio capacity: 37 seats capacity: 70 to 80 seats range: 1,750 nm (3,250 Km) range: 2,100 nm (3,900 Km) capacity: 44 seats capacity: 78 to 88 seats range: 1,650 nm (3,050 Km) range: 2,000 nm (3,700 Km) capacity: 98 to 114 seats capacity: 50 seats range: 2,400 nm (4,500 Km) range: 1,550 nm (2,900 Km) capacity: 50 seats capacity: 108 to 122 seats range: 2,000 nm (3,700 Km) range: 2,200 nm (4,100 Km)
  10. 10. E-Jets Customer Base Evolution
  11. 11. E-Jets Family Order Book – 4Q12 E-JETS Firm orders Deliveries Firm Backlog EMBRAER 170 193 183 10 EMBRAER 175 198 163 35 EMBRAER 190 560 451 109 EMBRAER 195 142 111 31 Total 1,093 908 185
  12. 12. Worldwide Distribution Commercial Jets – Net Orders Market Share E-Jets Customer Base by Business Model 70-120 Seats Jets (% of E-Jets Fleet+Backlog)50% 19% 48% Low Cost Carriers 43%40% 33% Regional Airlines Network Airlines30% 26%20% Firm Orders Backlog 13%10% 9% 12% 16% 4% 35% 9% 33% 8%0% 1% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 27% 13% 30% 17% Considering Accumulated Net Orders Europe & CIS North America Middle East & Africa Asia Pacific & China Latin America
  13. 13. E-Jets Deployment helping airlines to be more efficient
  14. 14. Embraer Market Forecast (2012-2031) • Scope Clauses relaxation allowing 80-seater aircraft as a natural growth of RJ50s in the US • Right-sizing of narrow-body operations • Regional aviation development in Emerging Markets • Acceleration of replacement of old & inefficient jets Russia / CIS Europe North North 445 155 America America 1,460 580 7% 6% 22% Projected Deliveries- Jets 2,195 840 China China 32%MarketSegment 20102019 Market – Segment 2012–2031 (Seats) Middle 1,005 340 (Seats) Deliveries Deliveries Africa East 15% 13% 30-60 405 60 210 80 305 105 61-90 2,625 1,015 Asia Latin Latin 3% 4% 91-120 3,765 1,550 Pacific America America 30 - 120 6,795 210 505 30 - 120 2,625 315 670 7% 8% 10% 12% Around 6,795 jet deliveries (30-120 seats) in the next 20 years (US$ 315 bi)
  15. 15. Competition 61-120 seats – New Scenario
  16. 16. Embraer Executive Jets Embraer Executive Jet Delivered in Brazil MORE THAN 600 AIRCRAFT DELIVERED IN OVER 40 COUNTRIES
  17. 17. Product Portfolio Aircraft Model Seats / Range Competitors Entry up to 8 occupants/ • Cessna - Mustang CJ1+/M2 Phenom 100 1,178 nm Certified: 2008 • HondaJet • Cessna - CJ2+/CJ3/CJ4 Phenom 300 up to 11 occupants/ • Hawker - PremierIA/400XP Light 1,971 nm • Bombardier - Learjet 40XR Certified: 2009 • SyberJet - SJ30 Under development • Bombardier - Learjet 45XR Mid-light Legacy 450 7 to 9 passengers/ • Cessna - XLS+/Latitude 2,300 nm • Hawker 750 • Bombardier - Learjet 60XR/85 • Cessna - Sovereign Mid-size 8 to 12 passengers/ • Hawker - H900XP Legacy 500 3,000 nm • Gulfstream – G150 • Bombardier - CL300/CL850 • Cessna - X/Ten Super Mid-Size Legacy 600 13 to 14 passengers/ • Dassault - Falcon 2000S 3,400 nm Certified: 2001 • Gulfstream - G200/G280 • Hawker - H4000 Large • Bombardier - CL605/GL5000 Legacy 650 13 to 14 passengers/ • Dassault - Falcon 2000/900LX 3,900 nm Certified: 2010 • Gulfstream - G350/G450 • Bombardier - GL XRSUltra-Long Range • Gulfstream – G500/G550/G650 • Dassault – Falcon 7X • Airbus - ACJ 318/319/320 Ultra-large Lineage 1000 13 to 19 passengers/ • Boeing – BBJ/BBJ2/BBJ3 4,500 nm Certified: 2008 • SSJ VIP/ ARJ21B / An-148VIP
  18. 18. Market ShareRevenues share (US$ - based on B&CA list prices) Deliveries share (units) $16.6Bi $19.3Bi $22.2Bi $17.2Bi $18.2Bi $18.1Bi 885 1,040 1,154 870 763 703 8% 6% 5% 6% 10% 7% 3% 2% 1% 2% 3% 2%% OEM Share – Total Revenues US$ 8% 8% 8% 4% 10% 7% 9% 6% 6% 16% 16% 14% 11% 4% 5% 4% 6% 7% 3% 14% % OEM Share – Total units 3% 3% 14% 19% 23% 24% 27% 13% 13% 14% 23% 21% 21% 15% 6% 11% 13% 7% 7% 9% 9% 11% 12% 12% 18% 12% 15% 22% 16% 18% 35% 37% 40% 17% 12% 9% 33% 26% 7% 23% 29% 28% 29% 28% 27% 33% 26% 24% 22% 21% 20% 20% 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Market Revenues 2011: US$18.1 billion Market Deliveries 2011: 703 units Embraer Revenues: US$1.0 billion Embraer Deliveries: 99 units Bombardier Dassault Hawker-Beech Embraer Gulfstream Cessna Others
  19. 19. Economic Indicators New record levels
  20. 20. 2013-22 Market Forecast - World Deliveries Previous forecast
  21. 21. 2013-22 Market Forecast
  22. 22. Business Jets Used Market Inventory 2008: Net increase of 1100 a/c 2009: Net increase of 33 a/c 3500 Fleet older than 10 yrs Fleet from 6 to 10 yrs 2010: Net decrease of 155 a/c 28% 2011: Net decrease of 140 a/c Fleet up to 5 yrs Positions 2012: Net decrease of 43 a/c 3000 2013: Net decrease of 41 a/c 24% Fleet up to 5 yrs and positions Total fleet % for sale Up to 10 yrs % for sale 2500 20% 12.8% 8.5% % of active fleet 2425 jets 660 jets 2000 16%Units 1500 12% 1000 8% 500 4% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
  23. 23. Service Center Network  Over 60 service centers worldwide  12 new centers worldwide since August, 2011  4 more under authorization  On site stocks worldwide in 43 different locations
  24. 24. Embraer Defense and Security OVER 50 ARMED FORCES IN 48 COUNTRIES
  25. 25. Embraer Defense and Security Embraer Defense and Security, partners and affiliated companies
  26. 26. Embraer Defense and Security Results Revenues Evolution (US$ Million) Revenue Participation (%) GAGR 33% 15% 13% 8% 9% 6% 7% 852 670 505 499 346 227 2006 2007 2008 2009 2010 2011 EBIT Evolution (%) Backlog Evolution (US$ Billion) 13.4% 3.2 3.3 3.3 12.4% 12.2% 12.0% 9.6% 6.3% 1.5 1.1 1.0 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Não contabiliza as receitas provenientes da OGMA nos anos de 2006 a 2010.
  27. 27. Super TucanoFirm orders: 190 aircraft Addressable Market Forecast 2020 (US$ million) Brazil: 99 Colombia: 25 Long-term 700 Dominican Republic: 8 Medium-term 2,000 Short-term Chile: 12 800 Ecuador: 18 Indonesia: 16 Greystone (TACAir): 1 Total Market Forecast: Undisclosed: 11 300 aircraft / US$ 3.5 billionDeliveries: 172 aircraft Partnership with Boeing to provide weapons integration, increasing capabilities of the aircraft.
  28. 28. EMBRAER KC-390Brazil Colombia Argentina Chile Portugal Czech Rep. Total Market Forecast 2025: (28) (12) (6) (6) (6) (2) 700 aircraft / US$ 50+ bi• A new tactical military transport and tanker aircraft• First flight in 2014• Six countries• Letters of intent totalizing 60 aircraft• Agreement with Boeing to share technical knowledge and evaluate markets for joint sales efforts.• The Brazilian Air Force (FAB) and Embraer concluded the Preliminary Design Review.
  29. 29. Modernization Programs F-5M A1-M A-4 Addressable Market Forecast 2025 (US$ million) Brazilian Navy A-4 12 aircraft Long-term 2 prototypes at GPX-CS 567 Medium-term Brazilian Air Force A-1M 505 43 aircraft Short-term 527 14 received by Embraer for the modernization Brazilian Air Force F-5M 46 a/c + 11 a/c (2nd batch) 45 already delivered Total Market Forecast*: Brazilian Air Force E-99 234 aircraft / US$ 1.6 billion 5 a/c aircraft EMB 145 AEW&C * Considering the market for F-5 and Tucano modernization
  30. 30. New Portfolio Command and Control Systems Onboard Systems Simulation Systems Electronic Warfare Systems Intelligence Systems Air Traffic Management and Control Systems JV with Elbit/AEL Sistemas where Embraer Defense and Security of CriticalHARPIA Security has a major participation Infrastructure UAS, simulators and modernization of avionics systems Public Security (sporting events, cities, states) Airport Management Air, ground and sea surveillance radars Systems Remote sensing SISFRON SisGAAZ Engine and Component Maintenance Overhaul and Modernization Aerostructure Manufacturing and AssemblingVISIONA Satellite
  31. 31. Brazilian Army Priorities SISFRONIntegrated Borders Monitoring System First phase: US$ 400 Million Total estimate: US$ 4 BillionComprising radars, communication networks, C4I,unmanned air vehicles (UAV) and armored vehicles Comm 9% UAV 12% Sensors 59% Satellite Estimate: US$ 400 Million SW 20% Participation in the first Brazilian Geostationary Satellite
  32. 32. Revenues Breakdown Evolution 2020 Services 11% Transport 4% Sisfron, Satellite 10% KC-390 34% 2011 KC-390 New Business Services 19% 14% 10% Light Attack and ISR Radar, C4I, UAV, Combat 10% MRO 9%Modernization 18% 25% Light Attack 9% New Business • Airport Management Systems • SisGAAz (“Blue Amazon” Integrated Management System) Radar, C4I, UAV, • Security of Critical Infrastructure MRO 27% • Public Security (sporting events, cities, states)
  33. 33. Future Projects – Brazilian Government
  34. 34. Future Projects – Brazilian Government 2013 Federal Initial Budget (*) 2013 budget 2013 budget (R$ million) (R$ million) Army 2.100Air Force 4.600 SISFRON 200 KC-390 1.200 Combat Readiness 365 Air Traffic Control 1.300 Logistic 353 5 midsize helicopters Aqcuisition & modernization of equip. 212 443 (out of 50) Guarani Vehicles 90 Aqcuisition & modernization of aircraft 596 (48 out of 2.044) Aircraft Maintenance & Supplies 500 ASTROS 2020 90 Fuel & oil 307 Proteger 44 Combat Readiness 74 Stra tegi c Infra s tructure Protection 2013 budget (R$ million) Navy 3.700 PROSUB (submarine) 2.300 Combat Readiness 708 Aqcuisition & modernization of vessels 506 Patrol ship building 73(*) Investment Budget – Budget sent to congress for discussion(available at Ministry of Planning website)
  35. 35. 2013 Outlook
  36. 36. 2013 Consolidated Outlook Net Revenues US$ 5.9 – 6.4 Billion EBIT US$ 530 – 610 Million EBITDA US$ 770 – 900 MillionEBIT margin 9.0% – 9.5% EBITDA margin 13.0% – 14.0%
  37. 37. 2013 Business Units Outlook Deliveries: 90 to 95 E-jets Net Revenues US$ 3.20 – 3.35 Billion Deliveries: 80 to 90 light jets 25 to 30 large jets Net Revenues US$ 1.40 – 1.60 Billion Net Revenues US$ 1.25 – 1.35 Billion Other Revenues US$ 50 – 100 Million
  38. 38. 2013 Investment Outlook Research US$ 100 Million Development US$ 300 Million CAPEX US$ 180 Million TOTAL INVESTMENTS: US$ 580 Million
  39. 39. Net Revenues / SG&A Expenses Net Revenues - US$ Million SG&A Expenses - US$ Million 194 186 180 172 170 72 75 69 71 59 2,025 1,717 1,364 1,405 1,156 114 109 119 111 103 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12US$ Net Revenues Gross Margin US$ G&A Expenses Selling Expenses2010 5,364 19.1% 2010 198 3742011 5,803 22.5% 2011 262 420
  40. 40. Income from Operations / EBITDAIncome from Operations - US$ Million EBITDA - US$ Million 13.8% 14.9% 10.2% 15.4% 11.5% 12.8%9.1% 11.8% 7.4% 7.2% 42 42 265 -0.3% 197 2.9% 188 124 148 166 86 101 59 (6) 3Q11 4Q11 1Q12 2Q12 3Q123Q11 4Q11 1Q12 2Q12 3Q12 US$ EBIT EBIT Margin US$ EBITDA EBITDA Margin 2010 392 7.3% 2010 611 11.4% 2011 318 5.5% 2011 557 9.6% Without Chautauqua non-recurring event
  41. 41. Net Income / Free Cash Flow Net Income - US$ Million Free Cash Flow - US$ Million 9.1% 4.6% 277 3.2% 105 414 0.1% 55 65 155 2 20 25 (73) (30) -4.5% (77) (70) (76) (50) (60) (60) (40) (55) (58) (65) -92 (112) (138) (174) 3Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 * 2Q12 * 3Q12 Free cash flow Net cash generated (used) by operating activities* Additions to PP&E Additions to Intangible US$ Net Income Net Margin US$ 2010 330 6.2% 2010 287 2011 112 1.9% 2011 1* Reflects re-calculation of Company’s income tax base * Net of Financial assets adjustment
  42. 42. Indebtedness Profile / Net Cash Indebtedness Maturity Net Cash - US$ Million 15% 17%26% 26% 22% 6.1 6.0 4.8 4.5 4.2 446 85% 83%74% 74% 78% 302 290 193 1233Q11 4Q11 1Q12 2Q12 3Q12 3Q11 4Q11 1Q12 2Q12 3Q12 Long-term Short-term Loans Average Maturity (Years) Total Debt 3Q12 US$ 2.08 Billion Total Cash 3Q12 US$ 2.21 Billion
  43. 43. Investments US$ Million 350 200 176 132 100 52 RESEARCH DEVELOPMENT CAPEX 9M2012 2012 Outlook
  44. 44. Investors’ Return EPADS and Pay Out Dividend Yield (%) 115% 68% 53% 52% 34% 35% 26% 4.34 2.64 2.57 3.28 2.11 2.14 1.68 2.91 1.83 2.23 2.13 2.01 0.62 2006 2007 2008 2009* 2010* 2011* 2006 2007 2008 2009 2010 2011 EPADS Pay Out 2006-2008: US GAAP* 2009-2011: IFRS
  45. 45. Ownership Structure 724,040,044 Voting Shares
  46. 46. Sustainability Initiatives ISO 14001 and OHSAS 18001 Certifications Brazilian Alliance for Bio-fuel 1st ethanol powered aircraft in the World Social Activities Reforestation Projects Ipanema RecyclingCorporate Values Greener Technology
  47. 47. Lean ResultsE-Jets Final Assembly Line Transformation“Dock” layout - 2008 Assembly Line – 2009 Assembly Line – 2011 Performance indicators May/2008 July/2009 Sep/2009 June/2010 Mar/11 Out/11 (15ac/month) (10ac/month) (10ac/month) (8ac/month) (10ac/month) (12ac/month) Number of positions 12 6 5 4 4 4 Cycle time (days) 18 12 10 8 8 7 Work in process (US$mi) 212 106 95 89 68 68Number of non-conformityper a/c 32 7 1,7 0 0 0 Over time (% of work hours) 10 1,5 1,5 0,2 0 0
  48. 48. P3E Results Kaizen - E-Jets Cycle Reduction Cost of Non Quality Reduction Lead Time (E-Jets) Cost of Non Quality 40% 44% 2005 2006 2007 2008 2009 2010 2011 2008 2009 201040% reduction on the production cycle 44% reduction on CNQ
  49. 49. “Boa Idéia” Program Evolution 28,3 Cost: US$ 18.9 mi 22,7 24,0 22,7 Benefit: US$ 175.5 mi 14,5 12,7 10,7 10,6 9,1 8,4 7,2 3,5 3,1 1,6 2,5 2,2 2,5 0,9 1,2 1,6 1,30,4 0,5 0,8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
  50. 50. Investor RelationsPhone: +55 12 3927 4404investor.relations@embraer.com.brwww.embraer.com
  51. 51. 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.

×