embraer 2 q11_results_final

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July 29th, 2011 July 29th, 2011 SECOND QUARTER 2011 RESULTS SECOND QUARTER 2011 RESULTS

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Page 1: Embraer 2 q11_results_final

July 29th, 2011 July 29th, 2011

SECOND QUARTER 2011 RESULTS SECOND QUARTER 2011 RESULTS

Page 2: Embraer 2 q11_results_final

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Forward Looking StatementForward Looking Statement

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.

Page 3: Embraer 2 q11_results_final

• 1H11: delivery of 45 jets and sale of 62 E-Jets, reaching 1,003 firm orders

and 742 deliveries.

• 42 additional aircraft pending final documentation, totaling 104 in 1H11.

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• Market demand – at Paris Air Show four new deals annouced:

Sriwijaya (Indonesia), Kenya Airways, GECAS (U.S.) and Air Lease (U.S.).

• Continuous customer base expansion – three new

airlines added: People’s Viennaline (Austria),

Air Astana (Kazakhstan) and Bulgaria Air.

Recent HighlightsRecent Highlights

Page 4: Embraer 2 q11_results_final

• Delivery of the 200th Phenom to Swift Aviation Group.

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• Strategic cooperation agreement with China’s Minsheng Financial Leasing

for up to 20 executive jets.

• EBACE – first signs of recovery with a couple of orders:

Comlux The Aviation Group – three Legacy 650;

Portugal’s Ricon Group (Everjets) – one Phenom 300.

Recent HighlightsRecent Highlights

Page 5: Embraer 2 q11_results_final

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• Sale of eight Super Tucano to Indonesian Air Force.

• KC-390 – most of the strategic partnership suppliers selected, including

engine.

• Program entering joint definition phase.

Recent HighlightsRecent Highlights

Page 6: Embraer 2 q11_results_final

48%

14%

24%

14%

62% 60%48%

61% 59%

14% 19%32% 10% 16%

13% 7%12%

12%11%

11% 14%8%

17% 14%

2Q10 3Q10 4Q10 1Q11 2Q11

Defense and security

6

Revenue by SegmentRevenue by Segment

Commercial aviation Executive aviation Aviation services and others

1.04Revenue US$ Billion1.361.36 1.051.97

Page 7: Embraer 2 q11_results_final

29

20

30

20

1 213

2 3

39

22

48

6

2025

2Q10 3Q10 4Q10 1Q11 2Q11

7

Executive Large Jets*

Aircraft DeliveriesAircraft Deliveries

Executive Light Jets**Commercial Jets

Legacy e LineagePhenom

***

Page 8: Embraer 2 q11_results_final

14.818.8 20.9

16.6 15.815.6 16.0

2.8 3.0

3.83.2 3.0 2.9 2.8

2006 2007 2008 2009 2010 1Q2011 2Q2011

8

Firm Order BacklogFirm Order Backlog

Firm Order Backlog Backlog/Revenue (Years)

US$ Billion

Page 9: Embraer 2 q11_results_final

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Revenues and Gross MarginRevenues and Gross Margin

IFRS - US$ Million IFRS - R$ Million

Revenues Gross Margin

1,3581,044

1,970

1,0561,359

22.4%24.3%

16.8%

20.5%20.2%

2Q10 3Q10 4Q10 1Q11 2Q11

2,1691,757

3,342

1,8202,435

22.4%24.3%16.8%

20.6%20.2%

2Q10 3Q10 4Q10 1Q11 2Q11

Page 10: Embraer 2 q11_results_final

168 155179

157

8892

103

95103

174

2Q10 3Q10 4Q10 1Q11 2Q11

94 89106

94

49 53

6157

64

109

2Q10 3Q10 4Q10 1Q11 2Q11

10

SG&A ExpensesSG&A Expenses

Selling Expenses

247

282

142

167173

143

277256

IFRS - US$ Million

G&A Expenses

151

252

IFRS - R$ Million

Page 11: Embraer 2 q11_results_final

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Income from OperationsIncome from Operations

EBIT

IFRS - US$ Million

EBIT Margin

IFRS - R$ Million

66

132

94

122106

9.0%

6.4%

6.7% 8.9% 7.8%

2Q10 3Q10 4Q10 1Q11 2Q11

116

225

157 169

219

7.8%8.9%6.7%

6.4%

9.0%

2Q10 3Q10 4Q10 1Q11 2Q11

Page 12: Embraer 2 q11_results_final

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EBITDAEBITDA

EBITDA

IFRS - US$ Million

EBITDA Margin

IFRS - R$ Million

166131

197

156 153

12.2% 12.5%

10.0%

14.8% 11.3%

2Q10 3Q10 4Q10 1Q11 2Q11

250260

335

227

298

11.5%14.8%

10.0%

12.5%12.2%

2Q10 3Q10 4Q10 1Q11 2Q11

Page 13: Embraer 2 q11_results_final

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Net IncomeNet Income

Net Income

IFRS - US$ Million

Net Margin

IFRS - R$ Million

154174

208220

102

7.1%

9.9%

6.2%

12.1%

4.2%

2Q10 3Q10 4Q10 1Q11 2Q11

96105123126

57

7,1%

10,0%

6,2%

12,1%

4,2%

2Q10 3Q10 4Q10 1Q11 2Q11

Page 14: Embraer 2 q11_results_final

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Inventories / Free Cash FlowInventories / Free Cash Flow

Free Cash FlowInventories

2,371

2,708

2,198

2,5612,697

2Q10 3Q10 4Q10 1Q11 2Q11

(38)

(126)

193

(66)

220

2Q10 3Q10 4Q10 1Q11 2Q11

Page 15: Embraer 2 q11_results_final

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Indebtedness Profile / Net CashIndebtedness Profile / Net Cash

Long-term Short-term

Loans Average Maturity (Years)

Indebtedness Maturity Net Cash

Total Debt 2Q11: US$ 1.72 Billion Total Cash 2Q11: US$ 2.13 Billion

95% 90%

22%

6%

87%94%

78%

13%10%5%

5.0

5.7

6.36.1

5.8

2Q10 3Q10 4Q10 1Q11 2Q11

652 618692

505406

2Q10 3Q10 4Q10 1Q11 2Q11

Page 16: Embraer 2 q11_results_final

2011 OUTLOOK REVISION2011 OUTLOOK REVISION

Page 17: Embraer 2 q11_results_final

8.0%

Current OutlookCurrent Outlook New OutlookNew Outlook

US$ 465 million~11%

2011 Outlook Revision2011 Outlook Revision

US$ 420 million

Net Revenues

EBIT

EBIT margin

US$ 5.6 billion

7.5%

US$ 5.8 billion~4%

US$ 610 millionEBITDA

EBITDA margin 11.0% 12.0%

US$ 700 million~15%

Page 18: Embraer 2 q11_results_final

Research

Development

US$ 90 million

US$ 210 million

CAPEX US$ 200 million

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2011 Outlook Revision2011 Outlook Revision

Current OutlookCurrent Outlook

US$ Million

YTD Outlook

38

83 7190

160

200

Research Development CAPEX

US$ 160 million

New OutlookNew Outlook

US$ 90 million

US$ 200 million

Page 19: Embraer 2 q11_results_final

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