embraer 3 q10 results_final
TRANSCRIPT
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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
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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.
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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
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66%
44%53%
61% 58%
16%
26% 12%14% 19%
6%16%
19%13% 7%
12% 14% 16% 12% 16%
3Q09 4Q09 1Q10 2Q10 3Q10
RevenueRevenue
Commercial aviation Executive aviation Aviation services and othersDefense
1.04Net Revenue US$ Billion 1.25 1.61 1.00 1.35
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30 2821
2922
55
17
39
22
5 8 3 1 2
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3Q09 4Q09 1Q10 2Q10 3Q10
DeliveriesDeliveries
2010 projected deliveries • 90 commercial jets• 17 Legacy / Lineage• 120 Phenom
2010 projected deliveries • 90 commercial jets• 17 Legacy / Lineage• 120 Phenom
PhenomCommercial Jets Legacy and Lineage
97
70
43
78
13 6
9M09 9M10
97
70
43
78
13 6
9M09 9M10
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2010
4.16.4
11.4 10.79.0
10.6 10.1 10.4
14.8
18.816.6
15.3
20.9
15.2
2.2 2.3
3.94.2 4.2
3.1
2.6 2.8 2.8 3.0
3.8
3.33.0 3.0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2Q10 3Q10
Firm Order BacklogFirm Order Backlog
US$ Billion
Firm Order Backlog Backlog/Revenue (Years)
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Net Revenues and Gross MarginNet Revenues and Gross Margin
US Gaap - US$ Million
Net Revenues Gross Margin
IFRS - US$ Million
1,246
1,610
990
1,3541,043
18.8%
20.8% 21.7% 21.4% 22.1%
3Q09 4Q09 1Q10 2Q10 3Q10
1,358
9921,250
1,614
1,044
20.6%20.8% 20.2%
17.9%
19.7%
3Q09 4Q09 1Q10 2Q10 3Q10
10
7392 86 94
52
55
35
49 53
91
3Q09 4Q09 1Q10 2Q10 3Q10
SG&A ExpensesSG&A Expenses
Selling Expenses General and Adm. Expenses
US Gaap - US$ Million
121
143 142143 144
125
147
124
147
121
IFRS - US$ Million
7292 86 94
52
55
35
49 53
89
3Q09 4Q09 1Q10 2Q10 3Q10
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Income from OperationsIncome from Operations
US Gaap - US$ Million
Income from Operations Operating Margin
IFRS - US$ Million
39
71
122
9166
9.0% 6.4%7.2%
2.4%
7.3%
3Q09 4Q09 1Q10 2Q10 3Q10
68 66 57
126
63
6,0%9,3%
5,8%4,1%
5,5%
3Q09 4Q09 1Q10 2Q10 3Q10
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EBITDAEBITDA
US Gaap - US$ Million
EBITDA EBITDA Margin
IFRS - US$ Million
90 89 80
139
80
5.6%
8.1%
10.2%
7.7%
7.2%
3Q09 4Q09 1Q10 2Q10 3Q10
151
105 117
166
131
12.1%
11.8%
6.5%
12.2% 12.5%
3Q09 4Q09 1Q10 2Q10 3Q10
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Income Before TaxesIncome Before Taxes
Income Before Taxes Margin
US Gaap - US$ Million IFRS - US$ Million
48
73 66
131
73
3.8%
4.6%
6.7%
9.7%
7.0%
3Q09 4Q09 1Q10 2Q10 3Q10
76
41
77
128
76
7.8%7.3%
6.1%
9.4%
2.5%
3Q09 4Q09 1Q10 2Q10 3Q10
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Net IncomeNet Income
Net Income Net Margin
US Gaap - US$ Million IFRS - US$ Million
9970
35
146
58
9.4%
5.2%
3.6%
9.1%
4.6%
3Q09 4Q09 1Q10 2Q10 3Q10
12295
2457
126
2.4%
12.1%9.8%
4.2%5.9%
3Q09 4Q09 1Q10 2Q10 3Q10
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Free Cash FlowFree Cash Flow
US Gaap - US$ Million IFRS - US$ Million
6
383
(57)
220
(60)
3Q09 4Q09 1Q10 2Q10 3Q10
23
364
(44)
253
(42)
3Q09 4Q09 1Q10 2Q10 3Q10
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Indebtedness Profile Net CashIndebtedness Profile Net Cash
Total Debt 3Q10: US$ 1.43 Billion
Long-term Short-term
Loans Average Maturity (Years)
Indebtedness Maturity
Total Cash 3Q10: US$ 2.05 Billion
Net Cash
(USGAAP)(USGAAP)
78%
47%
29%
75%
94%
53%
71%
6%22%25%
6.15.8
5.0
2.6
4.9
3Q09 4Q09 1Q10 2Q10 3Q10
71
503 459
659 624
3Q09 4Q09 1Q10 2Q10 3Q10
17
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%
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R&DR&D
PP&EPP&E
US$ 160 million US$ 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
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