2006 - 3 t06 us gaap
TRANSCRIPT
November 14, 2006
Third Quarter 2006 Financial Results
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
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 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.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Highlights 3Q06
• The Commercial Aviation Segment totaled 137 new firm orders, including 50 ERJ145 and 50 EMBRAER 190 jets to HNA Group from China, 30 EMBRAER 175 jets to Republic Airways, six EMBRAER 170 to Egypt Air and one EMBRAER 170 to an undisclosed costumer.
• The Executive Aviation segment reported more than 300 firm orders for the Phenom 100 and the Phenom 300 jets.
• Embraer’s Board of Directors appointed Frederico Fleury Curado to succeed Maurício Botelho as President and CEO of the Company, to be elected in April 2007.
• The European Aviation Safety Agency (EASA) issued the type certificate for the EMBRAER 190 and the EMBRAER 195 jets during this quarter.
• Mandarin Airlines chose the EMBRAER 190 and the EMBRAER 195 jets as the core aircraft for their future fleet. These orders will come from the existing GECAS backlog.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Highlights 3Q06
• Embraer and BNP Paribas concluded in August a US$500 million syndicated standby facility, comprised of a US$250 million Trade Finance Credit Facility, and a US$250 million Revolving Credit Facility available for multiple draw-downs.
• The U.S. Federal Aviation Administration (FAA) issued type certificate for the EMBRAER 175, paving the way for deliveries to begin in the United States.
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Results & Performance
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Jet Deliveries
41 40
2736
30
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
US$ Million
Net Revenues and Gross Margin
8941,021
808
1,1901,064
28.1% 28.3%28.2%28.7%28.2%
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Net Revenue by Segment
9M06
Revenues: US$ 2,723 million
9M05
Revenues:US$ 2,640 million
Defense and Government
6%
Executive Aviation 13%
Customer Services and Others 15%
Commercial Aviation 67% Defense and
Government 12%
Executive Aviation 6%
Commercial Aviation 72%
Customer Services and Others 10%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
US$ Million
Income from Operations
167114
37
135
46
15.7%
9.6%
4.5%
13.2%
5.2%
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Net Income
US$ Million
110
156
65
139
61
6.9%
13.6%
8.1%
10.4%
13.1%
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Accounts Receivable Breakdown
US$ Million Aircraft Sales Financing Support
32
164
Accounts Receivables Costumer Commercial Finance
US$MM
US$MM
302 351 346 332 366
488
100 136 140 32
3Q05 4Q05 1Q06 2Q06 3Q06
Others Commercial Aviation
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
US$ Million
Inventories
1,601 1,4781,648 1,639
1,882
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
US$ Million
Net Cash (Debt) Position
97
360302
527 507
3Q05 4Q05 1Q06 2Q06 3Q06
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Total Debt of US$ 1,599.8 Million
• Average cost in R$ =9.2 % p/a
• Average cost in US$ =7.4 % p/a
Loans
Loans Average Maturity: 1 year and 11 months
Brazilian Currency
25%
Foreign Currency
75%
Short Term 48%Long Term
52%
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Loans Maturity
US$ million
76 0
13 1
18 8
2 0 14 4
1,6 0 0
2 76
Total Short-term
2007 2008 2009 2010 2011
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Backlog and Delivery Forecast
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
ERJ 145 Family Order Book
(3rd Quarter 2006)
55
55
-
-
FirmBacklog
8591,047133914Total
677864132732ERJ 145
7474-74ERJ 140
1081091108ERJ 135
DeliveriesTotalOptionsFirm Orders
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
EMBRAER 170/190 Family Order Book
401814041EMBRAER 195
359
257
30
32
FirmBacklog
184964421543Total
41546248298EMBRAER 190
2252-52EMBRAER 175
120285133152EMBRAER 170
DeliveriesTotalOptionsFirm Orders
(3rd Quarter 2006)
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Backlog
US$ Billion
10.4 10.4 10.4 10.213.3
13.6 15.3 15.914.9
15.0
3Q05 4Q05 1Q06 2Q06 3Q06
Firm Options
THE INFORMATION CONTAINED HEREIN IS PROPERTY OF EMBRAER AND SHALL NOT BE COPIED OR DISSEMINATED WITHOUT EMBRAER’S WRITTEN CONSENT
Jet Deliveries Forecast
59
96
160 161
131
101
148 141 135160
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