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3rd QUARTER 2014 EARNINGS RESULTS
NOVEMBER 6th, 2014
This information is property of Embraer and can not be used or reproduced without written permission.
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 STATEMENT
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BUSINESS HIGHLIGHTS
3
EMBRAER CELEBRATED ITS 45th ANNIVERSARY ON AUGUST 19th.
This information is property of Embraer and can not be used or reproduced without written permission.
BUSINESS HIGHLIGHTS
4
EMBRAER ENGINEERING & TECHNOLOGY CENTER ETHANOL POWERED IPANEMA
EMBRAER WAS LISTED FOR THE 5th CONSECUTIVE YEAR ON THE DOW JONES SUSTAINABILITY INDEX.
EMBRAER WAS AWARDED AND RECOGNIZED BY MANY RENOWNED PUBLICATIONS AND INSTITUTIONS AS ONE
OF THE BEST COMPANIES IN BRAZIL IN SEVERAL CATEGORIES.
EMBRAER ENGINEERING & TECHNOLOGY CENTER OPENED ITS DOORS IN MELBOURNE, FLORIDA.
THE ETHANOL POWERED IPANEMA AGRICULTURAL AIRPLANE REACHED THE MILESTONE OF 10 YEARS SINCE
CERTIFICATION.
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REPUBLIC AIRWAYS JAPAN AIRLINES
BUSINESS HIGHLIGHTS
JAPAN AIRLINES SIGNED A FIRM ORDER FOR 15 E-JETS (E170 AND E190) AND AN ADDITIONAL 12 E-JETS FAMILY
OPTIONS.
DELIVERY OF 19 E-JETS IN 3Q14.
5
REPUBLIC AIRWAYS HOLDINGS SIGNED A CONTRACT FOR 50 FIRM E175 JETS, WHICH WILL BE OPERATED FOR
UNITED AIRLINES UNDER THE UNITED EXPRESS BRAND.
EMBRAER PERFORMED THE FIRST METAL CUT OF THE E-JETS E2 AT ITS ÉVORA PLANT IN PORTUGAL.
E-JETS E2 FIRST METAL CUT
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BUSINESS HIGHLIGHTS
LEGACY 500 RECEIVED ANAC CERTIFICATION (BRAZIL) AND FAA CERTIFICATION (US).
6
DELIVERY OF 15 EXECUTIVE LIGHT JETS IN 3Q14.
DELIVERY OF THE FIRST LEGACY 500.
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BUSINESS HIGHLIGHTS
EMBRAER EXECUTIVE JETS DELIVERED THE 25th PHENOM 300 TO NETJETS CELEBRATING THE 200th PHENOM 300
DELIVERED BY THE COMPANY.
7
EMBRAER BROKE GROUND ON ITS LEGACY 500 AND LEGACY 450 ASSEMBLY COMPLEX IN MELBOURNE, FLORIDA.
EMBRAER EXECUTIVE JETS OPENED NEW FACILITIES AT ITS CONTACT CENTER IN SAO JOSE DOS CAMPOS AND
EXPANDED THE CUSTOMER SUPPORT AND SERVICE NETWORK INTO THE BRAZILIAN NORTHEAST REGION.
EMBRAER WAS ELECTED THE NUMBER ONE PROVIDER OF CUSTOMER SUPPORT AND SERVICES SATISFACTION IN
THE EXECUTIVE JETS INDUSTRY RANKING, ACCORDING TO THE ANNUAL SURVEY PUBLISHED BY AIN MAGAZINE.
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EMBRAER ROLLED OUT THE FIRST PROTOTYPE OF THE KC-390 MILITARY TRANSPORT AIRCRAFT.
BUSINESS HIGHLIGHTS
SIERRA NEVADA CORPORATION & EMBRAER ROLLED OUT THE FIRST U.S. BUILT A-29 SUPER TUCANO FOR THE
U.S. AIR FORCE’S LIGHT AIR SUPPORT PROGRAM.
BRADAR WAS CONTRACTED TO SUPPLY THREE SABER M-60 RADARS FOR THE BRAZILIAN NAVY AND SIGNED
CONTRACTS WITH THE BRAZILIAN ARMY TO MAP THE AMAPA STATE AND FOR THE THIRD PHASE OF RADAR M200.
8
BRAZILIAN AIR FORCE CONTRACTED EMBRAER DEFENSE & SECURITY TO SUPPLY SIX LEGACY 500 AIRCRAFT TO
PERFORM FLIGHT INSPECTION MISSIONS.
SAVIS PARTICIPATED IN A SUCESSFULL EXERCISE TO VERIFY THE SISFRON IMPLEMENTED OPERATIONAL
CAPABILITIES. THE PROJECT IS ON TRACK AS CONTRACTED BY THE BRAZILIAN ARMY.
KC-390 ROLL OUT SUPER TUCANO ROLL OUT
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FINANCIAL RESULTS
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FIRM ORDER BACKLOG
US$ BILLION
17.8 18.2 19.2 18.1
22.1
3Q13 4Q13 1Q14 2Q14 3Q14
10
This information is property of Embraer and can not be used or reproduced without written permission.
415
3 7
21
38
17
22
15
3Q13 4Q13 1Q14 2Q14 3Q14
19
32
14
29
19
3Q13 4Q13 1Q14 2Q14 3Q14
AIRCRAFT DELIVERIES
LARGE JETS - LEGACY & LINEAGE
LIGHT JETS - PHENOM 2014 DELIVERIES ESTIMATES • 92 - 97 E-JETS • 25 - 30 EXECUTIVE LARGE JETS • 80 - 90 EXECUTIVE LIGHT JETS
11
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267369 394 357 346
3Q13 4Q13 1Q14 2Q14 3Q14
315
785
267421
213
3Q13 4Q13 1Q14 2Q14 3Q14
687
1,120
555
972
661
3Q13 4Q13 1Q14 2Q14 3Q14
1,288
2,304
1,242
1,761
1,240
3Q13 4Q13 1Q14 2Q14 3Q14
NET REVENUES BY SEGMENT – 2014 OUTLOOK
US$ 1.5 – 1.7 BILLION US$ 1.2 – 1.3 BILLION
US$ 3.2 – 3.4 BILLION US$ 6.0 – 6.5 BILLION
12
YTD: 4.2 BILLION YTD: 2.2 BILLION
YTD: 0.9 BILLION YTD: 1.1 BILLION
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US$ MILLION R$ MILLION
13
NET REVENUES
2014 OUTLOOK: US$ 6.0 – 6.5 BILLION
2,944
5,296
2,929
3,929
2,827
3Q13 4Q13 1Q14 2Q14 3Q14
1,288
2,304
1,242
1,761
1,240
3Q13 4Q13 1Q14 2Q14 3Q14
YTD: 9,685 YTD: 4,243
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256 258219
257226
117 120
113
118118
3Q13 4Q13 1Q14 2Q14 3Q14
332
375 344
378 373
SELLING EXPENSES G&A EXPENSES
14
SG&A EXPENSES
US$ MILLION R$ MILLION
112 11392
11599
51 52
48
5352
3Q13 4Q13 1Q14 2Q14 3Q14
165
140
163 151
168
YTD: 1,051 YTD: 459
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173
1,068
215417
157
5.9%
20.2%
7.4%10.6%
5.6%
3Q13 4Q13 1Q14 2Q14 3Q14
76
463
92 187
68
5.9%
20.1%
7.4%10.6%
5.5%
3Q13 4Q13 1Q14 2Q14 3Q14
15
INCOME FROM OPERATIONS (EBIT)
2014 OUTLOOK: EBIT: US$ 540 – 620 MILLION EBIT MARGIN: 9.0% – 9.5%
US$ MILLION R$ MILLION
EBIT EBIT MARGIN
YTD: 789 | 8.1% YTD: 347 | 8.2%
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156
544
151261
136
12.1%
23.6%
12.2%14.8%
11.0%
3Q13 4Q13 1Q14 2Q14 3Q14
16
EBITDA
2014 OUTLOOK: EBITDA: US$ 780 – 910 MILLION EBITDA MARGIN: 13.0% – 14.0%
US$ MILLION R$ MILLION
EBITDA EBITDA MARGIN
YTD: 1,249 | 12.9% YTD: 548 | 12.9%
359
1,253
355583
311
12.2%
23.7%
12.1%
14.8%
11.0%
3Q13 4Q13 1Q14 2Q14 3Q14
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NET INCOME
US$ MILLION R$ MILLION
NET MARGIN NET INCOME
YTD: 554 | 5.7% YTD: 243 | 5.7%
119
607
259 320
(24)
4.0%
11.5%8.8%
8.1%
-0.9%
3Q13 4Q13 1Q14 2Q14 3Q14
53
265
111 143
(11)
4.1%
11.5%8.9%
8.1%
-0.9%
3Q13 4Q13 1Q14 2Q14 3Q14
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2,780
2,2872,542 2,439
2,767
3Q13 4Q13 1Q14 2Q14 3Q14
18
INVENTORIES
US$ MILLION
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3Q13 4Q13 1Q14 2Q14 3Q14 2014 YTD
NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 102 761 (273) 13 49 (211)
ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (106) (156) (48) (60) (89) (197)
ADDITIONS TO INTANGIBLE ASSETS (80) (109) (83) (103) (97) (283)
FREE CASH FLOW (84) 496 (404) (150) (138) (691)
102
761
(273)
13 49
(106) (156)
(48)
(60) (89)
(80)(109)
(83)
(103) (97)(84)
496
(404)
(150) (138)
3Q13 4Q13 1Q14 2Q14 3Q14
19
FREE CASH FLOW
* Net of Financial assets adjustment
US$ MILLION YTD: (691)
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30
112 10180
320
250
RESEARCH DEVELOPMENT CAPEX
2014 OUTLOOK: US$ 650 MILLION
2014 OUTLOOK 2014 YTD
20
INVESTMENTS
YTD: 243 US$ MILLION
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96% 96% 96% 96% 96%
4% 4% 4% 4% 4%
6.3 6.25.9 5.7 5.6
3Q13 4Q13 1Q14 2Q14 3Q14
INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION
LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)
21
INDEBTEDNESS PROFILE | NET CASH
TOTAL DEBT 3Q14: US$ 2.37 BILLION TOTAL CASH 3Q14: US$ 2.05 BILLION
(20)
429
53
(114)
(327)
3Q13 4Q13 1Q14 2Q14 3Q14
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