Download - Embraer 2Q11 Results Final
July 29th, 2011 July 29th, 2011
SECOND QUARTER 2011 RESULTS SECOND QUARTER 2011 RESULTS
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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.
• 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
• 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
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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
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
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Revenue by SegmentRevenue by Segment
Commercial aviation Executive aviation Aviation services and others
1.04Revenue US$ Billion1.361.36 1.051.97
29
20
30
20
1 213
2 3
39
22
48
6
2025
2Q10 3Q10 4Q10 1Q11 2Q11
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Executive Large Jets*
Aircraft DeliveriesAircraft Deliveries
Executive Light Jets**Commercial Jets
Legacy e LineagePhenom
***
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
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Firm Order BacklogFirm Order Backlog
Firm Order Backlog Backlog/Revenue (Years)
US$ Billion
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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
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
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SG&A ExpensesSG&A Expenses
Selling Expenses
247
282
142
167173
143
277256
IFRS - US$ Million
G&A Expenses
151
252
IFRS - R$ Million
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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
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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
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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
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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
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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
2011 OUTLOOK REVISION2011 OUTLOOK REVISION
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%
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
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