Apresentação do PowerPoint - Valor Econômico · corrupt practices act (fcpa) regularly updated since 2011. negotiations have significantly progressed:

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

2nd QUARTER 2016 EARNINGS RESULTS

JULY 29, 2016


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


HIGHLIGHTS

3

PARTICIPATION IN THE 2016 FARNBOROUGH AIRSHOW

• INTERNATIONAL DEBUT OF E190-E2 E-JET AND KC-390 MILITARY AIRLIFTER.

• FIRST-TIME DISPLAY OF LEGACY 500, A-29 SUPER TUCANO AND DEFENSE SYSTEMS IN FARNBOROUGH

• TOTAL COMMITMENTS FOR 25 E-JETS AND E2.

E190-E2 LEGACY 500 KC-390

SUPER TUCANO & DEFENSE SYSTEMS EMBRAER’S NEW AIRCRAFT PORTFOLIO


HIGHLIGHTS

4

DELIVERY OF 26 E-JETS IN 2Q16.

TAP (PORTUGAL) BECAME NEW E-JETS OPERATOR.

JAPAN AIRLINES ORDER FOR AN ADDITIONAL E190.

NORDIC AVIATION CAPITAL (NAC) ORDER FOR 4 E190.

KALSTAR AVIATION (INDONESIA) ORDER FOR UP TO 10 E190-E2.

ARKIA (ISRAEL) LETTER OF INTENT FOR UP TO 10 E195-E2.

E190-E2 SECOND PROTOTYPE JOINED THE FLIGHT TEST CAMPAIGN (50+ HOURS).

This information is property of Embraer and can not be used or reproduced without written permission. 5

HIGHLIGHTS

DELIVERY OF 26 JETS (23 LIGHT AND 3 LARGE) IN 2Q16.

DELIVERY OF THE FIRST PHENOM 100E TO ETIHAD FLIGHT COLLEGE.

MEXICAN ACROSS ORDER FOR 23 JETS (8 L500, 8 P300 AND 7 P100E).

AIRSPRINT ORDER FOR UP TO 12 LEGACY 450.

AIR HAMBURG PURCHASE AGREEMENT FOR AN ADDITIONAL LEGACY 650.

LEGACY 450/500 NEW ASSEMBLY LINE STARTED OPERATION IN MELBOURNE, FLORIDA.


HIGHLIGHTS

6

KC-390 FLIGHT TEST CAMPAIGN REACHED 400+ FLIGHT HOURS (TWO PROTOTYPES).

KC-390 DEMO TOUR IN EUROPE AND MIDDLE EAST AFTER FARNBOROUGH DEBUT.

EMBRAER AND BOEING AGREEMENT ON GLOBAL MARKETING AND SUPPORT OF KC-390.

LIGHT AIR SUPPORT (LAS) PROGRAM DELIVERED THE 19TH AIRCRAFT TO THE USAF.

VISIONA ADVANCED WITH SATELLITE TESTS (THERMO-VACCUM AND VIBRATION).


SEC/DOJ UPDATE


SEC/DOJ INVESTIGATIONS UPDATE

8

INVESTIGATION REGARDING ALLEGATIONS OF NON-COMPLIANCE WITH U.S. FOREIGN CORRUPT PRACTICES ACT (FCPA) REGULARLY UPDATED SINCE 2011.

NEGOTIATIONS HAVE SIGNIFICANTLY PROGRESSED:

• RECOGNITION OF US$ 200 MILLION LOSS CONTINGENCY;

• FINAL SETTLEMENT LIKELY TO INCLUDE A DEFERRED PROSECUTION AGREEMENT (DPA) AND IMPOSITION OF INDEPENDENT MONITOR.

NEGOTIATIONS WITH U.S. AUTHORITIES ARE ONGOING AND SUBJECT TO CHANGE.


2016 OUTLOOK REVISION


NET REVENUES US$ 6.0 – 6.4 BILLION


OTHER REVENUES US$ 100 MILLION


75 – 85 LIGHT JETS 40 – 50 LARGE JETS

10

DELIVERIES

EBITDA MARGIN 13.3% – 13.7%

EBITDA US$ 800 – 870 MILLION

EBIT MARGIN 8.0% – 8.5%

EBIT US$ 480 – 545 MILLION

FCF > (US$ 100) MILLION

US$ 5.8 – 6.2 BILLION

12.7% – 13.5%

US$ 735 – 840 MILLION

7.0% – 8.0%

US$ 405 – 500 MILLION

> (US$ 400) MILLION


US$ 1.6 – 1.75 BILLION

US$ 50 MILLION

CURRENT NEW



12% OF NET REVENUES US$ 0.70 – 0.75 BILLION

1% OF NET REVENUES US$ 50 MILLION



DELIVERIES 105 – 110 E-JETS

OTHER REVENUES


11

DELIVERIES



EBITDA MARGIN 12.7% – 13.5%

EBITDA US$ 735 – 840 MILLION

EBIT MARGIN 7.0% – 8.0%

EBIT US$ 405 – 500 MILLION

FCF > (US$ 400) MILLION

RESEARCH US$ 50 MILLION

DEVELOPMENT US$ 325 MILLION

CAPEX US$ 275 MILLION

INVESTMENTS US$ 650 MILLION

12

FCF USE OF LESS THAN US$ 400 MILLION



FINANCIAL RESULTS


22.9 22.8 22.5 21.9 21.9

2Q15 3Q15 4Q15 1Q16 2Q16

FIRM ORDER BACKLOG

14

US$ BILLION


7 9

20

113

26 21

25

12 23

2Q15 3Q15 4Q15 1Q16 2Q16

LARGE JETS - LEGACY & LINEAGE LIGHT JETS - PHENOM

AIRCRAFT DELIVERIES

105 - 110 E-JETS 35 - 45 EXECUTIVE LARGE JETS 70 - 80 EXECUTIVE LIGHT JETS

15

23 26

45

30 33

2016 OUTLOOK:

2721

33

2126

2Q15 3Q15 4Q15 1Q16 2Q16

35 YTD: 14 YTD: 47


NET REVENUES

2016 OUTLOOK: US$ 5.8 – 6.2 BILLION

16

US$ MILLION YTD: 2,675

1,5131,285

2,074

1,309 1,366

2Q15 3Q15 4Q15 1Q16 2Q16


883688

1,115

711857

2Q15 3Q15 4Q15 1Q16 2Q16

404 402

746

402293

2Q15 3Q15 4Q15 1Q16 2Q16

216182 200 189 210

2Q15 3Q15 4Q15 1Q16 2Q16

1,5131,285

2,074

1,309 1,366

2Q15 3Q15 4Q15 1Q16 2Q16

NET REVENUES BY SEGMENT

OUTLOOK: US$ 1.60 – 1.75 BILLION OUTLOOK: US$ 0.70 – 0.75 BILLION

OUTLOOK: US$ 3.45 – 3.65 BILLION OUTLOOK: US$ 5.80 – 6.20 BILLION

YTD: 2.67 BILLION YTD: 1.57 BILLION

YTD: 0.69 BILLION YTD: 0.40 BILLION

17


10078

97 101 99

47

43

50 39 48

2Q15 3Q15 4Q15 1Q16 2Q16

SELLING EXPENSES G&A EXPENSES

147

121

147 140 147

18

SG&A EXPENSES US$ MILLION YTD: 287


YTD: (42) | -1.6%

2016 OUTLOOK: US$ 405 – 500 MILLION | 7.0% – 8.0%

19

INCOME FROM OPERATIONS (EBIT) 8.0% US$ MILLION

YTD: 158 | 5.9%

5.3%

73

(127)

EBIT EBIT MARGIN EX. REPUBLIC ADJ. EBIT

2Q16

ADJ. MARGIN


EBITDA EBITDA MARGIN

20

EBITDA

2016 OUTLOOK: US$ 735 – 840 MILLION | 12.7% – 13.5%

12.8%

US$ MILLION YTD: 120 | 4.5%

YTD: 320 | 12.0%

11.1%

152

(48)

EX. REPUBLIC ADJ. MARGIN ADJ. EBITDA

2Q16


NET MARGIN NET INCOME BRL VERSUS USD ADJ. MARGIN ADJ. NET INCOME

21

NET INCOME

-28% +3% +10% +2% +9%

US$ MILLION YTD: 5 | 0.2%

YTD: 205 | 7.6%

7.4%

101

(99)

2Q16


INVESTMENTS

22

2016 OUTLOOK: US$ 650 MILLION

US$ MILLION

YTD 2016 OUTLOOK

17

13989

50

325275

RESEARCH DEVELOPMENT CAPEX

YTD: 245


YTD: (655)

23

FREE CASH FLOW US$ MILLION

2016 OUTLOOK: FCF > (US$ 400) MILLION

FREE CASH FLOW YTD ACCUMULATED

73 (115)

660

(216)(439)

(216)

(655)2Q15 3Q15 4Q15 1Q16 2Q16

* Net of Financial assets adjustment

2Q15 3Q15 4Q15 1Q16 2Q16 2016

NET CASH GENERATED (USED) BY OPERATING ACTIVITIES* 245 70 872 (29) (200) (229)

NET ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT (74) (76) (83) (76) (112) (188)

ADDITIONS TO INTANGIBLE ASSETS (98) (110) (129) (111) (127) (238)

FREE CASH FLOW 73 (115) 660 (216) (439) (655)


INDEBTEDNESS PROFILE | NET CASH

INDEBTEDNESS MATURITY NET CASH (DEBT) - US$ MILLION

LONG-TERM SHORT-TERM LOANS AVERAGE MATURITY (YEARS)

TOTAL DEBT 2Q16: US$ 3.67 BILLION TOTAL CASH 2Q16: US$ 3.06 BILLION

24

90% 91% 94%86% 87%

10% 9% 6% 14% 13%

6.5 6.56.2

5.9 5.7

2Q15 3Q15 4Q15 1Q16 2Q16

(465)

(644)

7

(220)

(613)

2Q15 3Q15 4Q15 1Q16 2Q16


+55 12 3927 4404 | [email protected] | www.embraer.com

Documents

Apresentação do PowerPoint - Valor Econômico · corrupt practices act (fcpa) regularly updated since 2011. negotiations have significantly progressed: