2 nd QUARTER 2014 EARNINGS RESULTS JULY 31, 2014
FORWARD 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 forwardlooking 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 forwardlooking 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 forwardlooking events and circumstances discussed in this presentation might not occur. Our actual results could differ substantially from those anticipated in our forward-looking statements
BUSINESS HIGHLIGHTS AURIGNY AIR SERVICES ICBC LEASING TIANJIN AIRLINES DELIVERY OF 29 E-JETS IN 2Q14. EMBRAER E-JETS TO BEGIN FLYING WITH TURKISH OPERATOR BORAJET. ROYAL AIR MAROC ADDED FOUR E190 AS PART OF ITS FLEET UPGRADE. AURIGNY AIR SERVICES FROM GUERNSEY, CHANNEL ISLANDS, STARTED OPERATION WITH THE E195. CHINA S ICBC LEASING SIGNED PURCHASE AGREEMENT FOR UP TO 20 E190-E2. CHINA'S HNA GROUP TIANJIN AIRLINES PURCHASED 20 E-JETS AND 20 E-JETS E2. 3
BUSINESS HIGHLIGHTS AZUL LINHAS AÉREAS BRASILEIRAS FUJI DREAM AIRLINES AZERBAIJAN AIRLINES - AZAL EMBRAER AND TRANS STATES SIGNED A DEAL FOR UP TO 100 E175-E2. BRAZIL'S AZUL SIGNED LOI FOR 30 E195-E2 JETS PLUS 20 OPTIONS. FUJI DREAM AIRLINES PLACED AN ORDER FOR THREE E-JETS E175 PLUS THREE OPTIONS, ADDING TO ITS ALL-EMBRAER FLEET. AZAL PLACED AN ORDER FOR TWO ADDITIONAL E190. E-JETS E2 PROGRAM - 590 ORDERS ANNOUNCED TO DATE, INCLUDING 210 FIRM. 4
BUSINESS HIGHLIGHTS STEEP-APPROACH IN LONDON CITY DELIVERY OF 29 EXECUTIVE JETS IN 2Q14 (22 LIGHT JETS AND 7 LARGE JETS). EMBRAER EXECUTIVE JETS DELIVERED THE 500 TH PHENOM FAMILY JET. PHENOM 100E AND PHENOM 300 JETS WERE AGAIN ELECTED BY ROBB REPORT AS BEST OF THE BEST IN THEIR CATEGORIES. PHENOM 300 RECEIVED CERTIFICATION FROM EASA FOR STEEP-APPROACH OPERATION. 5
BUSINESS HIGHLIGHTS KC-390 FINAL ASSEMBLY HANGAR GRIPEN NG FX-2 EMB-121 XINGU EMBRAER OPENED THE FINAL ASSEMBLY HANGAR FOR THE KC-390 AND SIGNED A CONTRACT FOR 28 AIRCRAFT WITH THE BRAZILIAN AIR FORCE. EMBRAER SIGNED A MOU WITH SAAB FOR BRAZIL S F-X2 PROJECT. EMB-121 XINGU REACHED 30 YEARS OF OPERATIONS WITH THE FRENCH AIR FORCE AND FRENCH NAVY. ATECH WON TWO COMPETITIONS: SUPPLY OF C4I SYSTEMS TO THE FEDERAL POLICE AND ALSO FOR THE AIR-TRAFFIC MANAGEMENT SYSTEM IN INDIA. VISIONA CONCLUDED PRELIMINARY DESIGN REVIEW IN THE SGDC PROJECT AND NEXT PHASE WAS APPROVED BY TELEBRAS AND THE MINISTRY OF DEFENSE. 6
BUSINESS HIGHLIGHTS EMBRAER AND PETROBRAS SIGNED A MOU TO ASSESS THE RELIABILITY OF CRITICAL SYSTEMS OF THE OIL AND GAS INDUSTRY. EMBRAER AND BOEING SIGNED A MOU FOR IMPLEMENTING A SUSTAINABLE BIOFUELS R&D CENTER IN BRAZIL. 7
FINANCIAL RESULTS
FIRM ORDER BACKLOG US$ BILLION 17.1 17.8 18.2 19.2 18.1 9
AIRCRAFT DELIVERIES 32 29 22 19 14 38 23 22 21 17 15 6 4 3 7 2014 DELIVERIES ESTIMATES 92-97 E-JETS 25-30 EXECUTIVE LARGE JETS 80-90 EXECUTIVE LIGHT JETS LIGHT JETS - PHENOM LARGE JETS - LEGACY & LINEAGE 10
NET REVENUES BY SEGMENT 2014 OUTLOOK US$ 6.0 6.5 BILLION US$ 3.2 3.4 BILLION 1,557 1,288 2,304 1,242 1,761 860 687 1,120 555 972 US$ 1.5 1.7 BILLION US$ 1.2 1.3 BILLION 785 370 315 267 421 309 267 369 394 357 11
NET REVENUES US$ MILLION YTD: 3,004 R$ MILLION YTD: 6,857 2,304 5,296 1,557 1,288 1,242 1,761 3,240 2,944 2,929 3,929 2014 OUTLOOK: US$ 6.0 6.5 BILLION 12
SG&A EXPENSES US$ MILLION YTD: 308 R$ MILLION YTD: 707 175 54 163 165 51 52 140 48 168 53 361 373 378 111 117 120 332 113 375 118 121 112 113 92 115 250 256 258 219 257 G&A EXPENSES SELLING EXPENSES 13
INCOME FROM OPERATIONS (EBIT) US$ MILLION YTD: 279 9.3% R$ MILLION YTD: 632 9.2% 20.1% 20.2% 8.7% 5.9% 7.4% 10.6% 8.8% 5.9% 7.4% 10.6% 463 1,068 135 76 92 187 285 173 215 417 EBIT EBIT MARGIN 2014 OUTLOOK: EBIT: US$ 540 620 MILLION EBIT MARGIN: 9.0% 9.5% 14
EBITDA US$ MILLION YTD: 412 13.7% R$ MILLION YTD: 938 13.7% 23.6% 23.7% 13.1% 12.1% 12.2% 14.8% 13.2% 12.2% 12.1% 14.8% 544 1,253 204 156 151 261 427 359 355 583 EBITDA EBITDA MARGIN 2014 OUTLOOK: EBITDA: US$ 780 910 MILLION EBITDA MARGIN: 13.0% 14.0% 15
NET INCOME US$ MILLION YTD: 254 8.5% R$ MILLION YTD: 579 8.4% 11.5% 11.5% 8.9% 8.1% 8.8% 8.1% 4.1% 4.0% -0.3% -0.3% 265 111 143 (5) 53 607 320 259 119 (10) NET INCOME NET MARGIN 16
INVENTORIES US$ MILLION 2,523 2,780 2,287 2,542 2,439 17
FREE CASH FLOW US$ MILLION YTD: (554) 496 761 186 2 102 13 (125) (106) (60) (84) (156) (273) (103) (60) (80) (109) (48) (83) (404) (150) 2014 YTD NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 186 102 761 (273) 13 (260) ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (125) (106) (156) (48) (60) (108) ADDITIONS TO INTANGIBLE ASSETS (60) (80) (109) (83) (103) (186) FREE CASH FLOW 2 (84) 496 (404) (150) (554) * Net of Financial assets adjustment 18
INVESTMENTS US$ MILLION YTD: 128 320 250 80 59 48 21 RESEARCH DEVELOPMENT CAPEX 2014 YTD 2014 OUTLOOK 2014 OUTLOOK: US$ 650 MILLION 19
INDEBTEDNESS PROFILE NET CASH INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION 6% 4% 4% 4% 4% 6.3 6.2 5.9 5.4 5.7 94% 96% 96% 96% 96% 429 58 (20) 53 (114) LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS) TOTAL DEBT 2Q14: US$ 2.41 BILLION TOTAL CASH 2Q14: US$ 2.30 BILLION 20
INVESTOR RELATIONS PHONE: +55 12 3927 4404 INVESTOR.RELATIONS@EMBRAER.COM.BR WWW.EMBRAER.COM