embraer 3 q14_results_final

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This information is property of Embraer and can not be used or reproduced without written permission. 3 rd QUARTER 2014 EARNINGS RESULTS NOVEMBER 6 th , 2014

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Page 1: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

3rd QUARTER 2014 EARNINGS RESULTS

NOVEMBER 6th, 2014

Page 2: Embraer 3 q14_results_final

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

Page 3: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

BUSINESS HIGHLIGHTS

3

EMBRAER CELEBRATED ITS 45th ANNIVERSARY ON AUGUST 19th.

Page 4: Embraer 3 q14_results_final

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.

Page 5: Embraer 3 q14_results_final

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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

Page 6: Embraer 3 q14_results_final

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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.

Page 7: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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.

Page 8: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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

Page 9: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

FINANCIAL RESULTS

Page 10: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

FIRM ORDER BACKLOG

US$ BILLION

17.8 18.2 19.2 18.1

22.1

3Q13 4Q13 1Q14 2Q14 3Q14

10

Page 11: Embraer 3 q14_results_final

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

Page 12: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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

Page 13: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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

Page 14: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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

Page 15: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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%

Page 16: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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

Page 17: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission. 17

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

Page 18: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

2,780

2,2872,542 2,439

2,767

3Q13 4Q13 1Q14 2Q14 3Q14

18

INVENTORIES

US$ MILLION

Page 19: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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)

Page 20: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

30

112 10180

320

250

RESEARCH DEVELOPMENT CAPEX

2014 OUTLOOK: US$ 650 MILLION

2014 OUTLOOK 2014 YTD

20

INVESTMENTS

YTD: 243 US$ MILLION

Page 21: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

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

Page 22: Embraer 3 q14_results_final

This information is property of Embraer and can not be used or reproduced without written permission.

INVESTOR RELATIONS

PHONE: +55 12 3927 4404 [email protected]

WWW.EMBRAER.COM